Planning Process in Project Management

CHAPTER FOUR 4-PLANNING PROCESS 4-1 Quality plan 4-2 Communication Plan 4-3 Implementation Plan 4-4 Change Plan 4-5 Risk Plan 4-6 Contracting

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Quality Meskimen’s Law When they want it bad, they get it bad.

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4-1 Quality  Quality means many things to many people  Quality ISO 8402: “the totality of features and characteristics of a product or service that bear on its ability to satisfy started or implied needs”.

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Definitions: Quality Fitness for use

+

Conformance to specifications.

Features they want

+

Problems they don’t want.

Customer value

+

Zero defects.

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Quality vs. Grade • Grade — a category or rank given to entities having the same functional use but different requirements for quality: – Ford Escort vs. BMW 635i

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Cost of Quality • Cost of conformance: – Prevention costs – Appraisal (inspection) costs

• Cost of non-conformance: – Internal failure costs — fixes prior to delivery – External failure costs — fixes after delivery

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4-1 Quality plan This plan details :

• Quality assurance – Establish organisational procedures and standards for quality.

• Quality planning – Select applicable procedures and standards for a particular project and modify these as required.

• Quality control – Ensure that procedures and standards are followed by the software development team.

• Quality management should be separate from project management to ensure independence.

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Process-based quality Define process

Develop product

Assess pr oduct quality

ďƒ˜ Improve process

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No

Quality OK

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Yes

Standar dis e process

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Quality assurance and standards  Standards are the key to effective quality management.  They may be international, national, organizational or project standards.  Product standards are specifications and criteria for the characteristics of products  Process standards are criteria for the way the products are made 12/24/2010

Author: Prof. Tomas Ganiron Jr

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Ďƒ

An Introduction to Six Sigma

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What Is Six Sigma?

• • • • • • • •

Degree of variation; Level of performance in terms of defects; Statistical measurement of process capability; Benchmark for comparison; Process improvement methodology; It is a Goal; Strategy for change; A commitment to customers to achieve an acceptable level of performance

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Sigma Defects Per Million Level Opportunities

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Rate of Improvement

1σ

690,000

2σ

308,000

2 times

3σ

66,800

5 times

4σ

6,210

11 times

5σ

230

27 times

6σ

3.4

68 times

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Six Sigma Project Phases Define

Measure

Analyze

 Collect data  Analyze  Identify, on size of data, evaluate the selected establish and select problem, and confirm projects for the “ vital improvemen  identify key customer few “ t requirement  Set goals determinant s,  Form teams. s of the  Determine performance key product . and process  Validate characteristi hypothesis c.

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Improve

Control

 Improvemen  Establish t strategy standards to  Develop maintain ideas to process; remove root  Design the causes controls,  Design and implement carry out and experiments monitor. ,  Evaluate  Optimize financial the process. impact of  Final the project solutions

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4-2 Communications plan The objectives of the Communication Plan are:  Help manage expectations regarding the project.  Ensure methods used for communication will be most effective.  Assure appropriate levels of communication with internal and external project stakeholders.  Provide relevant, accurate, consistent information at all times.  Generate and sustain enthusiasm and support for the project

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COMMUNICATIONS PLAN OUTLINE MODEL Name of Project: Date: ____________

1. Intended audience(s)?

2. What is the main message we wish to communicate?

What are secondary messages, and messages for different audiences?

3. Time frame?

4. What relevant research, data (surveys, focus group results, similar projects elsewhere, etc.) are or will soon become available?

5. Why communicate? What do we want people to do as a result?

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COMMUNICATIONS PLAN OUTLINE MODEL (cont)

6. Activities/publications/events associated with the plan 7. Resources required: funds; skills; equipment, supplies; staff time, temporaries, consultants 8. Who has primary responsibility? Who are the collaborators/helpers/supporters?

9. Who is responsible for internal communications around this plan, what needs to be done?

10. How will we evaluate/ /measure the success of the plan?

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4-3 Implementation plan ďƒ˜ This plan details who will be affected, how they will be affected and the plans for transitioning the change. ďƒ˜ It ensures you have considered training and after change support, What will happen when the project winds up?

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Implementation Project Plan Model Project plan: EHR Implementation Task Duration

Start

Finish

Assessment

5 days

1/8/06

1/13/06

Select product selection group

0.5 days

1/9/06

1/9/06

Select project 0.5 days development team

1/9/06

1/9/06

Complete needs assessments

1/9/06

1/10/06

1/9/06

1/13/06

1/9/06

1/11/06

1/9/06

1/13/06

2 days

Develop project 5 days charter Develop preliminary 3 days budget Document current 5 days workflows

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4-4 Change Plan Helpful tools for managing change are :  The Action and/or Issue register and  The Change Control form/register.

What these two documents do is :  Help you control the issues/risks/actions that people are raising  Help change will affect your project outcomes (time, cost or scope)

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Change Plan Change process make sure the change is :  identified  and approved.  Just because someone thinks a change would be a good idea doesn’t mean it should be added to your project.  Once you start to deliver something amazing, everyone will want to have a say. The challenge is to manage their expectations without compromising your original plan.

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Types of Changes • Scope changes (modify product documentation and often project plan): – Requirements changes – Clarifications – Site emergencies

• Work changes (modify project plan): – Resource changes – Modified approach – Corrective action

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Change Plan Model

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4-5 Risk Plan Project risk management does not deal with future decisions, but with the future of present decisions.

With apologies to Peter Drucker

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Definition: Risk • The possibility of suffering harm or loss. (American Heritage Dictionary) • The potential for realizing unwanted, negative consequences from an event. (Rowe) • More things can happen than will happen. (Dimson)

Risks are always in the future!

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Risks, Problems, and Responses Risk

Problem

Risk Response

Problem Response 12/24/2010

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Risk Management Processes: Identify

Identify

e iz

Monitor

r it io Pr nd o p s Re

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Two Main Parts to a Risk Statement • • • •

Cause Source Event Condition If this happens and we do nothing …

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• • • • … there is a very real chance …

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Effect Impact Outcome Consequence

… that this will happen 30

Review Project Success Criteria • Start risk identification by reviewing your project success criteria: – Product success – Project management success

• Document what could interfere: – Consider causes of problems from past projects – Use risk taxonomies (see next slide)

• Brainstorm what else could go wrong.

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Specific classification or Categorization of risks.

• Environment — war, famine, flood, and pestilence; terrorism, pollution • Economy — currency rate changes, market conditions, competition • Government — changes in laws and regulations • Company actions — change in strategic direction, internal politics 12/24/2010

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… continued • Stakeholder actions — changes in requirements, conflicts • Other projects — reliance on their staff or their deliverables • Planning errors — WBS omissions, estimating errors • Assumptions and constraints — things that can go wrong

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Summary of Key Points • Risks are always in the future.

• You can never eliminate all risk.

• Focus your attention on the most severe risks.

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4-7 Contracting for

Project Managers

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

Contracts

Definition of Contracts

An agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. 

Development of Contract Law ◦ Common law once required all contracts to be in writing, with a seal affixed. ◦ Later, some payment was required before a contract could be enforced. ◦ Mutual promises became enforceable in the 1600’s. ◦ By the 1900’s, courts began to consider the fairness of contracts before enforcing them.

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Contracts • Legally binding obligations may be called: – – – – –

Agreements Contracts Memoranda of understanding (MOU) Purchase orders Others?

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Projects, Procurement, and Contracts

Project Management Processes Scope definition, cost estimating, scheduling, Procurement Processes risk management, team building, procurement, Planning change Acquisition Contract Management

control, stakeholder management, etc.

Contract Procurement Processes Contract

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Buyer and Seller • Different names: – Buyer = customer, sponsor, owner – Seller = vendor, supplier, contractor, provider

• Different perspectives: – For the buyer, the seller’s work is usually a deliverable or subproject – For the seller, the contract is often a complete project 12/24/2010

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Underlying Philosophy • The buyer and the seller: – Both want to be successful – Both want the other to be successful – Both see value in the relationship

• The cost of prevention is always less than the cost of the cure: – Contracts do not solve problems – Contracts help prevent problems

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The Buyer/Seller Relationship +

+

–

–

Differing Interests

–

+

Contract

+ –

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Valid Contract: A contract is one which is in full force and enforceable by court of action VALID CONTRACT MUST: A. Be between competent parties.

B. Accomplish a lawful purpose.

C. Include an offer and acceptance of that offer.

D. Involve an exchange of value.

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A. Competent parties: – Legal age – With appropriate authority – Mentally competent

B. Lawful

purpose:

– Does not violate applicable laws – Compatible with public policy

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C. Offer and Acceptance • Anything said or done that shows a willingness to exchange value.

• Offers and acceptances may be: – Written – Spoken (with limitations) – Demonstrated through action

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Example of Offer and Acceptance • Offer — Projects wishes to engage PM Partners for project management consulting and training.

• Acceptance — PM Partners wishes to provide consulting and training to Projects and its clients.

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D. Exchange of Value • Both parties must receive something: – Financial or non-financial – Directly or indirectly

• Also called “consideration”

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Example of Exchange of Value • Buyer receives: – Financial value — product or service – Non-financial value — lower risk

• Seller receives: – Financial value — payment – Non-financial value — experience

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Is It a Contract?

Why or Why Not? 1.

2.

3.

4.

5.

6.

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Promise to assassinate a political leader?

Signed by chief engineer?

Verbal instructions in emergency?

Employment agreement for $1 per year.

Verbal promise to build a new plant?

Written note saying “I owe you $100.�

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Penalties and Liquidated Damages Contracts often provide that in case of a breach of the contract, the party aggrieved may collect from the other party a certain amount as liquidated damages, or simply damages. The courts will give effect to the intention of the parties provided the amount stated is, as a matter of fact, liquidated damages and not a penalty.

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