Category Management Toolkit


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Category Management Toolkit

  1. 1. Category Management Toolkit Project Planning
  2. 2. Project Planning Summary 2 What is Project Planning? A project is usually defined as a temporary, discrete piece of work that is undertaken to produce a defined product or service. It is not your usual “day job”. For example, building the London Underground Jubilee Line extension was a very large project; actually running the trains is the “day job”! Projects come in all shapes and sizes – but there are some key fundamental principles you can apply to all projects to ensure they are completed successfully. This guide covers the basic tools and techniques for planning a successful procurement project. The toolkit does not address all of the project tools that exist – users are referred to the Prince 2 area on the OGC website. Where does it fit in with Category Management? Establishing the Category Project Project Charter Source Planning Strategy Plan and Implementation What is included in this guide? What is a project? Some common tools and techniques in project planning Using brown paper for initial Project planning Use of ‘RACI’ for resource planning. Project risks assessment Checklist for project manager Which processes does the tool apply to? Demand Management, SRM and Strategic Sourcing Which other tools link to this guide? Project Charter Project Kick-off Communications Plan Team Working
  3. 3. Project Planning 3 What is a project? A project has a definitive end point which represents the attainment of the project objective. In order to reach the objectives in the shortest time and at the lowest cost, the interim tasks must be carefully planned and managed. Structure of programme/projects The Work Breakdown Structure (WBS) is representation of the project elements in a descending level of detail. The Scope Statement should be broken down until an “adequate” and “manageable” level of detail is reached for reasonable duration and cost estimates. Performance is typically measured and reported at the ‘Activity’ or ‘Workstream’ level. However, effective planning requires that the activities be further broken down to the ‘task’ level to permit accurate cost estimating and scheduling of resources. A Programme represents a group of PROGRAMME Projects which are collectively managed in order to obtain synergistic benefits. Project "A" Project "B" An Activity represents a group of Tasks which result in a deliverable. Activity 1 Activity 2 Activity 3 Activity 4 Task "a" Task "b" Task "c" Task "d" Task "e" Task "f" Project Plan The Project Plan contains the scope and work break down structure (activities with milestones, tasks with deliverables, timeline, resources and estimates developed during the work definition process) The plan develops the work estimates into a time phased project schedule/plan and a project budget Resource requirements and a formal risk assessment are also included in the plan The plan must be approved by the project board and becomes the document for management control and accountability.
  4. 4. 4 What should be included in the project plan / schedule? Key activities Key tasks Key deliverables Some tips on using brown Milestones paper for project planning Timeline – time started, time ends, duration • Key activities – keep it Dependencies high level at this stage, tasks can be agreed at Resources – when resources need to be involved, the next stage full-time or part-time? What is the percentage of • Brainstorm all time the resources devoted in each tasks? activities – then remove duplication Common tools used in creating project • Start by placing across plan / schedule the timeline Brown paper process mapping • Include a mobilisation Gantt Chart event Microsoft Project • Workstreams may be Excel spreadsheet. identified at this stage from the activities – similar to Process Map Use of “brown paper” for initial project swim lanes planning Process mapping using brown paper – (or brainstorming) - is a useful way for initial project planning and working out the work breakdown structure. (For details, please refer to Process Mapping module.) The detailed schedule may then be planned using a Gantt chart or MS Project. Why do we use brown paper? • May involve entire team/buy-in • Visual and visible • Flexible – plan and the team are mobile • Can be changed as the project develops • Team/right people are involved • Different views, keep process moving, resolve conflict • Stimulate creativity.
  5. 5. 5 Use of ‘RACI’ for planning resources R – Responsibility - the individual(s) who actually completes the task, the doer. This person is responsible for action or implementation. Responsibility can be shared. The degree of responsibility for each role in a shared activity is determined by the accountable individual A – Accountability - the individual who is ultimately responsible. Includes yes or no and veto power C – Consult - the individual(s) to be consulted prior to a final decision or action. This incorporates two-way communication I – Inform - the individual(s) who needs to be informed after a decision or action is taken. This incorporates one-way communication Tips o There can only be one accountability per activity o Authority must accompany accountability o Minimise the number of consults (C) and informs (I) on each activity o Try to minimise the amount of people who check or authorise an activity. Such actions do not add value to a process. Project risk assessment The management of the project through the project life cycle involves both an initial and an ongoing risk assessment by both the Project Manager and the Project Team: Project risks should be assessed by evaluating: • its impact on the project activities and deliverables and • the likelihood of which it will occur. Initial risk assessment is done during the planning phase. A risk log is to be kept to record the risks identified and mitigating actions Some of these risks can be mitigated through rigorous project management techniques and others must be dealt with through probabilistic assessments The following are typical sources of project risk: • Uncontrolled changes in requirements • Poor estimates • Poorly defined roles and responsibilities • Misunderstandings or omissions from the scope statement • Errors in design and execution • Unforeseen limitations and secondary effects • Insufficient skills among the project team • Turnover in the project team
  6. 6. 6 • Resource schedule conflicts, such as from other projects. The Project Team may make use of any or all of the following techniques for assessing and managing risk: • Estimating - Basing duration and cost estimates on the smallest reasonable increment of work as well as using weighted average estimating • Formal Change Control - Limiting changes in scope and requiring new estimates for remaining work when changes do occur • Contingency Planning - Preparing “work around” plans for risks which are reasonably foreseeable prior to starting a project • Subcontracting - Using outside experts to perform work when internal skills are insufficient or when fixed price subcontracts will limit cost exposure • Computer Simulation - Using simulation techniques, such as Monte Carlo Analysis, to determine probabilistic outcomes • Alternative Strategies - Considering alternate approaches, which may eliminate some exposure to risk, during the project planning phase • Insurance - Procuring insurance or performance bonding. Checklist for a project manager Develop a written Project Objective which is clear and concise Develop a Work Breakdown Structure (WBS) to a sufficient level of detail to facilitate accurate task estimates Involve the project sponsor intimately in the scope definition process Minimise “level of effort” tasks and focus on deliverables Limit task duration to 80 hours or else plan for an interim deliverable Clearly communicate project team roles and responsibilities Require the Project Team to provide the task estimates Use “weighted average” task duration estimates rather than most likely or optimistic estimates Sequence the tasks and assign start dates Identify dependencies between tasks Assign resources to the tasks Perform an initial risk assessment and develop contingency plans Include regularly scheduled review meetings in the project plan Set aside at least 10% of the project fees as the Management Reserve Aggressively defend against scope creep Require a formal approval process for changes to scope Adjust remaining duration and cost estimates when scope changes are approved
  7. 7. 7 Encourage detailed time reporting (at the activity level) by the project team Use “Earned Value” performance metrics rather than “percent of budget consumed” methods Use the “early warning” of Earned Value measures to take corrective action on cost and schedule problems Use the project performance data to improve future estimates Avoid prosecution of team members during the “learning curve” Use software tools to augment good PM techniques rather than relying on the tools to solve PM problems. For further information (Association of Project Management web-site) (International Project Management Association web-site) (Guide to project management research sites) (Project Management Institute web-site) (Prince)
  8. 8. About OGC OGC - the UK Office of Government Commerce - is an Office of HM Treasury. The OGC logo is a registered trademark of the Office of Government Commerce. OGC Service Desk OGC customers can contact the central OGC Service Desk about all aspects of OGC business. The Service Desk will also channel queries to the appropriate second-line support. We look forward to hearing from you. You can contact the Service Desk 8am - 6pm Monday to Friday T: 0845 000 4999 E: W: Press enquiries T: 020 7271 1318 F: 020 7271 1345 This document is printed on material comprising 80 Office of Government Commerce, 1 Horse Guards Road, London SW1A 2HQ per cent post consumer waste and 20 per cent ECF pulp. © Crown Copyright 2006 Service Desk: 0845 000 4999 E: W: