Fundamentals of

Project Planning and

Management
Week 2: Project Planning

 
Yael Grushka-Cockayne
Fundamentals of
Project Planning and Management
Week 1
Week 2
Define and
Plan
Organize

Project Goal Project

The Three Scoping
Objectives Dependencies
and their
Priorities Schedule
Organization Trade-Offs
Drucker’s Effective Executive
An (action) Plan is:
• Statement of intentions ≠Commitment
• Not a straitjacket
• Should be revised often
• Should anticipate the need to be flexible
• Needs a system for checking the results against expectations
• Becomes the basis for executive time management

(Drucker 2006 )  
Project Life-Cycle
Initiate Plan Execute Close
•Establish •Identify Scope •Monitor •Sign off
organization •Identify tasks, •Communicate •Conduct a
•Project Charter dependencies and report formal post-
and Definition and schedule •Correct and mortem
•Plan resources control
•Clarify trade-
offs and
decision
making
principles
•Develop a risk
management
plan
Project Life-Cycle

Ini%a%on   Planning   Execu%on   Close-­‐out  

Execu%on  

Ini%a%on   Planning   Execu%on   Close-­‐out  

Work Breakdown Structure

• Visually breaks down project scope

o Project
o Subprojects
o Work packages
o Activities / Tasks

It might start messy….

Work Breakdown Structure: Example
Work Breakdown Structure: Example
Work Breakdown Structure: Example
Lumi Project

Start Packaging Liquid

Labeling
Facility HR

Bottles
Design Process Marketing & Sales

Closure
Finance Produce Sourcing

Secondary Packaging
IT Product Rolling off
HPP/Ready for wholesale

HACCP
 Lumi Project

Start
Packaging

Facility

Labeling Bottles Closure Secondary Packaging

Scout location Plant operational
Plant Equipment
Find labs for Order bottles Order closures Choose shipping
Decide location & analysis box supplier
sign lease
HPP delivery
Buy Prep tables and Lab Analysis Order shipping
Prep for build out Utilities HPP Installation, boxes
sinks
commissioning and File & pay for UPC
training Choose distributor
Compressed air Find label supplier (check with
Electrical Cold Storage Label redesign wholefoods)
purchase
Water Finalize design
Cold Storage install
Internet (for HPP) Order labels
Press Right Juicers
delivery and
installation
Liquid
Batch tank
Filler, capper, Define product line
labeler

Fork lift
HR
Drying racks
Soaking bins Hire work crew
Hire Ops Mgr.

Design Process
Marketing & Sales
Research designs
SOP Estimate demand
(juice sales at
Finalize process wholefoods,
wholefoods store
counts)
Finance
COGS analysis

Lease HPP machine Set price

Insurance on plant
prop and equip
Produce Sourcing

Get price schedule

IT
from produce
suppliers
Set up Quickbooks
online Order produce

Set up MS Project Product Rolling off

HPP/Ready for
wholesale

HACCP

Hire Consultant
File for approval
 Factory Online
Build Capabilities Build Infrastructure Systems Development Business Process Design Build In-Service Support
Team 7E7 First Flight
Locate Offices Design Datacentre Project Initiation 7E7 In Service
Project Initiation Recruit Team
Equip Offices Procure Facilities Requirements Inventory Management Logistics Management Integrated Demand Straight Through Integrated Product
Analysis Develop Process Process Process Planning Process Production Process Design Process Train Team
Recruit Business Procure Equipment Measurement
Management Team System Design Framework Deploy Team
Commission Data Design Process Design Process Design Process Design Process Design Process
Recruit Development Centre System Build
Team Simulate & Validate Simulate & Validate Simulate & Validate Simulate & Validate Simulate & Validate
Test Infrastructure System Test Process Process Process Process Process
Recruit Infrastructure
Team Deploy Deploy System Information System Information System Information System Information System Information System
Infrastructure Integration Integration Integration Integration Integration
System Stabilisation
Capabilities
Complete Infrastructure Pilot Process Pilot Process Pilot Process Pilot Process Pilot Process
Complete Systems
Development Adjust Process Adjust Process Adjust Process Adjust Process Adjust Process
Complete Design Design Design Design Design

Rollout Process Rollout Process Rollout Process Rollout Process Rollout Process
Process Complete Process Complete Process Complete Process Complete Process Complete
Work Breakdown Structure - Tips

• Use Sticky notes/blackboard/white board

• Team development
• Use automated e.g. MS Project, WBSPro
• Detail down to no less than 5%-10% of the total duration or
a single resource
 Work Breakdown Structure

Startup  Project  

Crea%ve   Strategy   IT   Fundraising   Marke%ng   Sales   Finance   HR  

Dependency (Design) Structure Matrix

1 2 3 4 5 6 7 8

1
2
3
4 X  

5 X   X  

6 X   X  

7 X   X  

8 X   X  
Project Planning: Dependencies
Activity # Description Predecessors

1 Creative -
2 Strategy -
3 IT -
4 Fundraising 1
5 Marketing 1,2
6 Sales 1,2
7 Finance 5,6
8 HR 4,6
Network Diagram
3. IT

5. Marketing 7. Finance

2. Strategy

8. HR
6. Sales

1. Creative

4. Fundraising
Network Diagram
3. IT End

5. Marketing 7. Finance

Start 2. Strategy

8. HR
6. Sales

1. Creative

4. Fundraising
Types of Dependencies

Finish Start Finish Finish

Start Start
Start Finish
Project Planning: Durations

Duration
Activity # Description Predecessors
(Weeks)
1 Creative - 5
2 Strategy - 2
3 IT - 4
4 Fundraising 1 4
5 Marketing 1,2 2
6 Sales 1,2 5
7 Finance 5,6 2
8 HR 4,6 1
Gantt chart: Dependencies and Milestones
 Estimating Activity Durations can be Tricky!
• Parkinson’s Law
• Student’s Syndrome
• Overconfidence
• Biases
• Anchoring
• Confirmation
 How Long Will the Project Take?
IT
End
4 wks

Marketing Finance
2 wks 2 wks
Strategy
Start
2 wks

Sales HR
Early   Early   5 wks 1 wks
Start   Finish  
Creative
Task  Name  
(dura-on)   5 wks
Late   Late  
Fundraising
Start   Finish   4 wks
 Critical Path Analysis
0   4  
12   12  
IT
End
4 wks
    5   7   10   12   12   12  
8   12  
Marketing Finance
0   2  
0   0    2 wks     2 wks  
Strategy 8   10   10   12  
Start
0   0    2 wks  
5   10   10   11  
3   5  
Sales HR
Early   Early   5 wks   1 wks
0   5        
Start   Finish   5   10   11   12  
Creative
Task  Name  
(dura-on)   5   wks   5   9  

Late   Late   0   5   Fundraising

Start   Finish     4 wks  
7   11  
 Critical Path Analysis
0   4  
12   12  
IT
End
4 wks
    5   7   10   12   12   12  
8   12  
Marketing Finance
0   2  
0   0    2 wks     2 wks  
Strategy 8   10   10   12  
Start
0   0    2 wks  
5   10   10   11  
3   5  
Sales HR
Early   Early   5 wks   1 wks
0   5        
Start   Finish   5   10   11   12  
Creative
Task  Name  
(dura-on)   5   wks   5   9  

Late   Late   0   5   Fundraising

Start   Finish     4 wks  
7   11  
Critical Path

• The longest path in the project/network.

• The project duration, defined by the length of the critical
path, is also known as makespan.
• A delay in any activity along the critical path will cause a
delay in the project.
• The method was developed by Engineers at DuPont
Corporation in the 1950s.
ASAP or ALAP?
Cost   Time  
As  Soon  as  
Possible  

As  Late  as  
Possible  
ASAP or ALAP?
Cost   Time  
As  Soon  as  
Possible   û   ü  
As  Late  as  
Possible  
ASAP or ALAP?
Cost   Time  
As  Soon  as  
Possible   û   ü  
As  Late  as  
Possible   ü   û  
Project Schedule – too long!
Project Crashing
• Project duration can be reduced only by shortening
critical activities.
• It may be worth spending money to reduce the
length of a project.
Ø Select the least expensive to crash

• New critical paths may emerge.

Øreduce all critical paths!
As a Result of Project Crashing

• Critical path
• Shorter
• May change
• More activities may become critical
• Higher risk?
Reducing Scope

• Eliminate activities
• Unnecessary
• Reduce functionality
• Cut corners
• Outsource
Common Planning Mistakes
Issue Consequences Impact
No WBS Missing tasks Incorrect scope
No responsibility assigned
Incorrect project duration, critical path,
cost estimates, and resource loads

Task durations specified in Underestimate Underestimated project duration

terms of work task durations Incorrect critical path

Excessive task durations Dominate plan Incorrect project duration and critical
path
No Network diagram Missing Incorrect project duration and critical
dependencies path
De Reyck 2009
Common Planning Mistakes
Issue Consequences Impact
Tasks without predecessors or Missing No project critical path
successors dependencies

Fixed start dates to mimic Missing Plan prone to errors

dependencies dependencies No project critical path

No dependency defined between Plan update cumbersome

activities in the correct sequence and prone to errors

Dependencies between summary Unnecessary Time wasted, unclear

tasks dependencies network diagram

De Reyck 2009
Plan Checklist
• WBS • Gantt-chart
üAvailable? Complete? üNo missing dependencies
Communicated? Agreed-upon? between activities in correct
• Network Diagram sequence?
üOne start and one finish? üNo summary task links?
üAll activities with predecessors üTasks with excessive
or successors? durations?
üCheck generalized
• Milestones dependencies (overlaps,
üOne start milestone and one time lags)
project completion üCheck critical path: from
milestone? project start to finish?
üIntermediate milestones?
Each one has a critical path?
Planning Wrap Up

• Project planning is crucial for project success.

• A project plan is a guide, not a schedule of what will
exactly happen.
• Follow the project planning cycle.
• Make sure the goal of the project is clear to you.
• Ensure project scope is complete (most crucial part
of planning).
Planning Wrap Up – Cont.

• Estimate the activity durations

• Decide who owns each activity
• Know which are the critical activities (“critical” ≠
“important”)
• Prevent conflicts between activities
• Projects can be accelerated by crashing and/or fast-
tracking.