Project Management 3 Project Management 3 Future Managers

Module 5: Develop a project plan for a simple project Project Management 3 Future Managers

Module 5: Develop a project plan for a simple project After completing this module, you will be able to: Develop a project plan for a simple project Demonstrate an understanding of the use of project management and tools Participate in the costing & budgeting of a small project Provide project templates to team members Use a paper based and/or electronic filing system for a project. Project Management 3 Future Managers

After completing this module, you will be able to:

Develop a project plan for a simple project

Demonstrate an understanding of the use of project management and tools

Participate in the costing & budgeting of a small project

Provide project templates to team members

Use a paper based and/or electronic filing system for a project.

1. Develop a project plan for a simple project After completing this outcome, you will be able to: Assess components of a given project plan Collect and organise information relating to the individual project/sub-project Develop a project plan for a simple project Project Management 3 Future Managers

After completing this outcome, you will be able to:

Assess components of a given project plan

Collect and organise information relating to the individual project/sub-project

Develop a project plan for a simple project

1. Develop a project plan for a simple project Why do we plan? A project plan is a roadmap for the project, it help to guide the work from start to finish It serves as a tool for communication with both stakeholders and the project team We need to plan in terms of resources required Planning, not only establishes what is to be done but also “smoothes the way to make it happen” Planning encourages participation, from all the role players involved in the project Planning leads to prompt action Planning solves problems before they can influence the project and its outcome Planning formulates decisions based on consensus Planning avoids costly changes Project Management 3 Future Managers

Why do we plan?

A project plan is a roadmap for the project, it help to guide the work from start to finish

It serves as a tool for communication with both stakeholders and the project team

We need to plan in terms of resources required

Planning, not only establishes what is to be done but also “smoothes the way to make it happen”

Planning encourages participation, from all the role players involved in the project

Planning leads to prompt action

Planning solves problems before they can influence the project and its outcome

Planning formulates decisions based on consensus

Planning avoids costly changes

1.1 Assessment of the components of a project plan Developing a solid project plan Record assumptions made during project planning Direct project execution and control Provide instructions for documenting what decisions were made and why they were made Specify dates for management reviews Define standards against which project and team members’ performance are measured Project Management 3 Future Managers

Developing a solid project plan

Record assumptions made during project planning

Direct project execution and control

Provide instructions for documenting what decisions were made and why they were made

Specify dates for management reviews

Define standards against which project and team members’ performance are measured

1.2 Information on the planning of a project Network planning Time analysis Resource analysis Cost analysis Multiple schedules Progress reports Key events Deadlines and activity logic Project Management 3 Future Managers

Network planning

Time analysis

Resource analysis

Cost analysis

Multiple schedules

Progress reports

Key events

Deadlines and activity logic

1.3 Development of a project plan What should be included in a project plan? Documents used during project planning, such as the scope statement, work breakdown structure, and cost estimates The project charter Scope, risk, communication, procurement, and schedule management plan Responsibility assignments Schedule dates and milestones Major risks, constraints, and assumptions and how each will be handled Pending issues and decisions Design and other specifications. Project Management 3 Future Managers

What should be included in a project plan?

Documents used during project planning, such as the scope statement, work breakdown structure, and cost estimates

The project charter

Scope, risk, communication, procurement, and schedule management plan

Responsibility assignments

Schedule dates and milestones

Major risks, constraints, and assumptions and how each will be handled

Pending issues and decisions

Design and other specifications.

1.3 Development of a project plan A good project plan: Directs how, when, and by whom all project activities should be completed Instructs ways to document what decisions are made and why they are made Specifies dates for management reviews Defines standards against which the project and team members’ performance is measured Project Management 3 Future Managers

A good project plan:

Directs how, when, and by whom all project activities should be completed

Instructs ways to document what decisions are made and why they are made

Specifies dates for management reviews

Defines standards against which the project and team members’ performance is measured

1.3 Development of a project plan Additional actions that must be performed Define the project’s quality standards and develop a quality management plan Assign roles and responsibilities, which include developing a staff management plan and acquiring staff for the project team Develop a communication system, which includes creating a communications management plan that will make sure information is distributed to the right people at the right times in an appropriate format Project Management 3 Future Managers

Additional actions that must be performed

Define the project’s quality standards and develop a quality management plan

Assign roles and responsibilities, which include developing a staff management plan and acquiring staff for the project team

Develop a communication system, which includes creating a communications management plan that will make sure information is distributed to the right people at the right times in an appropriate format

1.3 Development of a project plan Additional actions that must be performed Identify and evaluate the seriousness of potential project risks Develop responses to the potential risks, which include compiling a risk management plan Decide which resources must be produced from outside the project’s parent organisation and which includes developing a procurement management plan Determine and define resource requirements, such as what level of quality is expected from contracted work Project Management 3 Future Managers

Additional actions that must be performed

Identify and evaluate the seriousness of potential project risks

Develop responses to the potential risks, which include compiling a risk management plan

Decide which resources must be produced from outside the project’s parent organisation and which includes developing a procurement management plan

Determine and define resource requirements, such as what level of quality is expected from contracted work

Project Management 3 Future Managers

The project plan Project Management 3 Future Managers Skills by task Resources by task Time per task Task relationships costs & constraints statement of work (SOW) WBS network diagram schedule & timeline budget budget

The project plan (large project) Summary of the project (or project overview) Project objectives Project charter Project assumptions and risks Project milestones Work breakdown structure (WBS) Network diagram Resource details Human resources Equipment Materials and supplies Budget details Project organisation Operating procedures Assessment and review standards Contact points and information sources Project approval Project Management 3 Future Managers

Summary of the project (or project overview)

Project objectives

Project charter

Project assumptions and risks

Project milestones

Work breakdown structure (WBS)

Network diagram

Resource details

Human resources

Equipment

Materials and supplies

Budget details

Project organisation

Operating procedures

Assessment and review standards

Contact points and information sources

Project approval

The project plan (large project) Summary of the project (or project overview) Project objectives Project charter Project assumptions and risks Project milestones Work breakdown structure (WBS) Network diagram Project Management 3 Future Managers

Summary of the project (or project overview)

Project objectives

Project charter

Project assumptions and risks

Project milestones

Work breakdown structure (WBS)

Network diagram

The project plan (large project) Resource details Human resources Equipment Materials and supplies Budget details Project organisation Operating procedures Assessment and review standards Contact points and information sources Project approval Project Management 3 Future Managers

Resource details

Human resources

Equipment

Materials and supplies

Budget details

Project organisation

Operating procedures

Assessment and review standards

Contact points and information sources

Project approval

Project plan What is the right level of planning? What are the consequences of not having your project reviewed by qualified individuals? It is more difficult to identify errors in the logic of a network diagram or WBS You might identify missing activities or incomplete activities You might not have all the information you need to create an accurate schedule or budget It is often difficult to see your plan objectively when you do it yourself. When other people review it, they should be able to understand what you are doing, when you are doing it and what it will cost People might feel left out and you’ve missed a great opportunity to build support for the project with others Project Management 3 Future Managers

What is the right level of planning?

What are the consequences of not having your project reviewed by qualified individuals?

It is more difficult to identify errors in the logic of a network diagram or WBS

You might identify missing activities or incomplete activities

You might not have all the information you need to create an accurate schedule or budget

It is often difficult to see your plan objectively when you do it yourself. When other people review it, they should be able to understand what you are doing, when you are doing it and what it will cost

People might feel left out and you’ve missed a great opportunity to build support for the project with others

Practical 6 This sixth practical of our project will focus on the project plan. We will do the project plan in table form (page 120) – the elements of the plan will be typed in, and your task is to give a description next to the plan-element explaining what is to happen there. Project Management 3 Future Managers

This sixth practical of our project will focus on the project plan.

We will do the project plan in table form (page 120) – the elements of the plan will be typed in, and your task is to give a description next to the plan-element explaining what is to happen there.

Project plan: building of house Project Management 3 Future Managers Project plan element Description of what will happen 1. Summary of the project 2. Project objectives 3. Project charter 4. Project assumptions and risks 5. Project milestones 6. Work Breakdown Structure 7. Network diagram 8. Resource details 9. Budget details 10. Project organisation 11. Operating procedures 12. Assessment and review 13. Contact points and information sources 14. Project approval

Project plan: building of house Project Management 3 Future Managers Project plan element Description of what will happen 1. Summary of the project What the project is about and what it is what we want to achieve 2. Project objectives What is the goal/objective of the project 3. Project charter Authorize a project, formally recognize a project is in progress 4. Project assumptions and risks Assumptions is conditions that must fall in place as planned; it can influence cost, time – a degree of risk involved 5. Project milestones An achievement during the project, e.g. complete stage 1 on time and within the budget – serve as a motivator

Project plan: building of house Project Management 3 Future Managers 6. Work Breakdown Structure Break the project into pieces (deliverables); activities and sub-activities – cover every little part of the project 7. Network diagram Illustrate activity relationship; sequence of activities; interrelationship of activities and activities taken place simultaneously 8. Resource details Resources required to make a success of the project: labour; material; equipment 9. Budget details Budget available to project – had to complete project within the budget 10. Project organisation A purely project organization structure shows who report to whom and levels of authority

Project plan: building of house Project Management 3 Future Managers 11. Operating procedures Process to be followed; work according to network diagram and Gantt chart 12. Assessment and review Measure project progress and conduct regular assessments – after completion of a project stage 13. Contact points and information sources If information required – sources available, normally responsibility of project office – support role 14. Project approval Project complete; quality audit been done and project ready to hand-over to client or customer

2. Demonstrate an understanding of the use of project management tools and techniques After completing this outcome, you will be able to: Apply a range of tools and techniques of project management to support documentation of the project plan Identify corrective steps where tools and techniques usage may occur in the project Apply corrective measures to tools and techniques used for the project Project Management 3 Future Managers

After completing this outcome, you will be able to:

Apply a range of tools and techniques of project management to support documentation of the project plan

Identify corrective steps where tools and techniques usage may occur in the project

Apply corrective measures to tools and techniques used for the project

2.1 Apply a range of tools and techniques of project management to support documentation of the project plan Project planning methodology S takeholder skills and knowledge On a construction project On a project where staffing is defined in advance Project management information systems (PM IS ) Earned value management (EVM) Project Management 3 Future Managers

Project planning methodology

S takeholder skills and knowledge

On a construction project

On a project where staffing is defined in advance

Project management information systems (PM IS )

Earned value management (EVM)

2.2 Tools and techniques as the foundation of project planning A written scope statement A work breakdown structure Clearly defined activities Activity duration estimates A developed schedule Activity assignments Determined resource needs An estimated project cost A developed budget Project Management 3 Future Managers

A written scope statement

A work breakdown structure

Clearly defined activities

Activity duration estimates

A developed schedule

Activity assignments

Determined resource needs

An estimated project cost

A developed budget

3. The costing and budgeting of a small project After completing this outcome, you will be able to: Prepare a work element and cost budget for the project Balance budget figures in accordance with standard accounting practices Project Management 3 Future Managers

After completing this outcome, you will be able to:

Prepare a work element and cost budget for the project

Balance budget figures in accordance with standard accounting practices

Activity 1 – Project plan tools Now that you have completed a project plan, make a list of project tools (Module 2 may help you) which you can use successfully when you start implementing the plan. Project Management 3 Future Managers

Now that you have completed a project plan, make a list of project tools (Module 2 may help you) which you can use successfully when you start implementing the plan.

3.1 Prepare work element and cost budget for the project Project Management 3 Future Managers Project: Electrical Re-wiring and Renovation of house Project Manager: Simon Shaw Items Quantity Price per unit Cost 1. Electrical wire 25m 5.00 p/m R125 00 2. Plugs 10 R120.00 1200 00 3. Symphony bath 1 R1 500.00 1500 00 4. Toilet set 1 R850.00 850 00 5. Shower mixer tab 1 R265.00 265 00 6. Bath and basin taps 3 R135.00 405 00 Total 17 4345 00

Project Management 3 Future Managers Project: Electrical re-wiring and renovation of house Project manager: Simon Shaw Items Costs Direct costs: Salaries for project manager; project planner; project engineers Expenses – Sub contractors fee 2. Indirect costs – marketing, training, insurance, depreciation 3. Time related costs Rent per day Running costs Overtime work Contract labour 4. Labour costs 5. Material & Equipment costs 6. Transport costs 7. Project team costs Total budget

Direct costs:

Salaries for project manager; project planner; project engineers

Expenses – Sub contractors fee

3. Time related costs

Rent per day

Running costs

Overtime work

Contract labour

Practical 7 The seventh practical on our project is to do: A budget for the entire project – it will be a combination of the information of practical 5 and activity 4.5 of module 4 In this practical, you and your facilitator can work as a team to do the budget Project Management 3 Future Managers

The seventh practical on our project is to do:

A budget for the entire project – it will be a combination of the information of practical 5 and activity 4.5 of module 4

In this practical, you and your facilitator can work as a team to do the budget

Project Management 3 Future Managers

4. Provide project templates to team members After completing this outcome, you will be able to: Contribute to the monitoring and controlling of cost budget performance of the project by maintaining records and communication Identify deviations from budget, record and communicate Identify and communicate corrective actions for deviations to budget Prepare templates to be used for administration work Project Management 3 Future Managers

After completing this outcome, you will be able to:

Contribute to the monitoring and controlling of cost budget performance of the project by maintaining records and communication

Identify deviations from budget, record and communicate

Identify and communicate corrective actions for deviations to budget

Prepare templates to be used for administration work

4.1 Template for administration work Project Management 3 Future Managers Project: Electrical re-wiring and renovation of house Project manager: Simon Shaw Attention: All the relevant stakeholders Report on budget changes The cost of labour (at a rate of R60.00 per day) has increased by 10%, because of a change in labour legislation made by Government. According to our original budget, we budgeted for labour costs to the amount of R5 000.00 and the change means that labour costs will escalate by R 500.00. The labour costs will now total the amount of R 5 500.00 and we request the parent organisation to add an additional R 500.00 to the budget to assure that the project team can complete the project. Signed: Project Manager Date:

5. Use a paper and / or electronic filing system for a project After completing this outcome, you will be able to: Use a paper based and / or electronic filing system for a project Project Management 3 Future Managers

After completing this outcome, you will be able to:

Use a paper based and / or electronic filing system for a project

5. Use a paper and/or electronic filing system for a project The filing of the project forms part of the close out phase of the project Close out occurs when we hand over the completed project and the customer accepts it After all payments are made, the project manager can write the final report and send it to all stakeholders Once the close-out report has been completed, the project can be filed Project Management 3 Future Managers

The filing of the project forms part of the close out phase of the project

Close out occurs when we hand over the completed project and the customer accepts it

After all payments are made, the project manager can write the final report and send it to all stakeholders

Once the close-out report has been completed, the project can be filed