Project Development

& Implementation
For Strategic Managers

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LO2: Be Able To Plan A Project

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Objectives & Assessment Criteria
After studying this Section you should be able to:
1. Produce a plan for an agreed project.
2. Match appropriate resources to a project.
3. Cost all resources required.
4. Agree timescales for the management of a project.
5. Plan an appropriate strategy for the implementation
of a project.
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 Next Step In Process

Planning

• From the previous settled specifications, simply the

project’s manager and his team will have to create a list
of tasks, which are needed to be executed through him
and his team in the exact time frame using the available
resources.
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 How To Write Down Your Plan
While writing your plan as a Project Manager has to make
sure that the following features are available in your paper:
• Establishing strong open lines of communications
between all involved parties.
• To calculate your risk.
• To cost for all resources you will need.
• To schedule timescales.
• To unify operating method, strategies and policies.
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Project Team & Leadership

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 Who Is The Project’s Sponsor?
It is an executive role in the project’s management, usually
the top member of the project’s board or the chairman in
specific who is dedicated to do this role.
Some of his responsibilities is to control the project’s risk
as he owns the business case itself. As well as to provide
the project with leadership, culture and values.
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 What Is The Project’s Board?

It is the management’s structure within which project

decisions are made. Usually consist of an odd number
three, five or more. It’s main scope of responsibilities is to
ensure that the project is still running as its supposed to be
and as they (the board) have planned to.

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Project Manager

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 Project Manager
He is the person in overall charge of the planning and
execution of a project. However, he is not the project’s
sponsor, but he is in report to the sponsor. In some
countries both roles are done with the same person and
that is supposed to be not a good policy.

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 Project Team & Structure Of
Groups
• A collection of individuals accumulated to execute
actions that contribute toward achieving a mutual job
of an interconnected objective.
• This will be under one umbrella of unified operating
method.

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 Project Team

• It is pretty much depending on the way of thinking

and the source of the spiritual charge of a project’s
manager personality to know how his team will be
formed. Whether he is introvert or Extravert that will
form the majority of his team, nevertheless, other
type will also be needed to varies the style of thinking
and execution style as well.

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Project Team

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 CLASS ACTIVITY
Open Discussion individually or in group work:
From a famous project of your background information.
1. Please mention the following:
• Project’s Sponsor.
• Board responsibilities.
• The Project Manager and his style.

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Scope of Work

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 What To Do?
• However, in order to make things happen within our
pre - mentioned values and limits we will need to use a
major method to go with this phase down in to
specifications, in the form of tasks and subtasks
description (data transfer) with time and costs limits.
This method is the work breakdown structure “WBS”.

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WBS

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 WBS
• The Tasks level is named the basic level of work, which
is including all main jobs that have to be done.
Otherwise project is not completed. (1,2,…)
• Some of those jobs or all of them could require more
time and details to be achieved, that why they will be
done upon extended subtasks level of work named
precursor level 1 of work. (1.1,1.2,…)
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 WBS
• At the final stage of work, there is a level of work
named the packaging level. (1.1.1,1.1.2,….)
• In this level the finalization issues are all implemented
in accordance to the quality specifications in specific.
• As quality always takes lots of steps upon several work
levels to be probably achieved.

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 How Things Should Be Done?
• The agreed specifications, by which we had selected our
project.
• Scope
• Time
• Cost
• Quality
• These constraints again will form the main factor to be
noticed while implementing.
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 Example
• In the Jetta Component project in VW Mexico. Where
any production out of budget is a waste.
• Supply chain is involved as a very important element of
implementation to enable the project to get things done
within the pre mentioned specification.
• Accordingly, we will find supply chain is in the basic
level of work, precursor level1 and in final level of wok.
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 Example
Ta s k 1 Ta s k 2 Ta s k 3 Ta s k 4 Ta s k 5
Design the Produce All The mass Packing
production samples for requirements production and
line preliminary supplying work effor t deliver y
stages processing wok effor t
1-2 weeks 3-4 weeks 50-80 weeks

3.1 Human 3.2 Raw materials 3.3 To o l s s u p p l y i n g

resources supply supply for the and Equipment
initiation leasing contracts
production
12-16 months 6 – 10 weeks
50 – 80 weeks

5.1 Signing freight 5.2 Packing

contract materials supply

5-6 weeks 15 – 18 weeks

3.1.1 Finalizing stock and closing

3 – 5 weeks 22
 CLASS ACTIVITY
Open Discussion individually or in group work:
If you are a project manager for a project of your
background information.
1. Please implement a project in accordance with an
agreed specifications list.
2. Clarify how work structure is in accordance with its
agreed specifications. 23
 Next let’s Generate Our Measures
• In order to monitor such a project, we have to generate
our own trials and measures that will calculate if we are
on the right course or not.
• The proper combination of planning, implementing,
monitoring and effective management is vital for
finishing a project on time, on budget and with high
quality.
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 Next let’s Generate Our Measures
• Joining work breakdown structures and project network
diagram into a project strategy is a good initial point as
this tool identify responsibilities and activities and label
the order in which they should materialize.
• On-time transfer is all about pre-emptive, not
responsive, project management process.

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 Gantt Chart
• Gantt chart is always a very useful method to measure
and initially evaluate the progress of any project.
• It is also named the progress chart; by which we use the
data we already have in our WBS to be illustrated on
bars to show all or most of data related to all projects’
activities. In order to always have a solid reference, by
which we can monitor the whole activities outcomes.
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 Gantt Chart
• That’s why we can use this tool to measure then to
monitor what we are doing in our project.
• Applying this tool on the Jetta Component production
line in Volks Wagen Mexico. We can that it is all clear
that the time schedule is forming the main axis of
monitoring this whole project using this tool.

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 Gantt Chart
Jetta's Parts Project
Gantt Chart, VW Mexico
84
Planned Project's Time Line

Packing and Delivering 65

6

Mass Pro. Effort 80

16

Supply of req. 10
80
5

Samples 4
2

Design 2
1

0 10 20 30 40 50 60 70 80 90 100 28
 Data Transfer Table of WBS
• We can also use the data transfer table of the WBS tool
we used previously to implement to see the measures
guidelines we can use them to know what exactly we
should monitor.
• This data is detailed and give us a quite accurate
overview upon main references (basically the time) of
the project.
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 Data Transfer Table of WBS
WBS
Activity Time Predecessor Involved Dept.
Code
Design the production
1 2 weeks N/A Designs dept.
line

Produce samples for

2 4 weeks WBS 1 Production dept.
preliminary stages

80 weeks according to
All requirements WBS 2 & Supply chain
3 the end of the project
supplying process 3.1, 3.2, 3.3 dept.
(highest margin 3.2)

WBS 1, 2, 3.1, 3.3 and

The mass production parallel to WBS 3.2 to keep
4 80 weeks Production dept.
work effort the inventory days as low
as possible

Packing and delivery WBS 1, 2, 3.1, 3.3 and by Supply chain

5 18 weeks
work effort the start of 3.2 dept.

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 Measures & Safety Margin
• As we can see, if you are the PM of the VW Jetta
component project, you will have to keep your eyes on
the productivity of your gangs as well as the supply
chain efficiency as those two activities are having the
lowest safe margin within the whole set of activities of
our project.
• as a matter of measure we will always seek to evaluate
the task outlines as well as its safety margin of time . 31
 Measures & Accuracy
• As per the pre set measures we had before that were
originally generated from the constraints and
specifications of the projects we had clarified into the
planning phase.
• Accordingly, the monitoring task should be more
reasonable and accurate regardless the used tool Gantt,
WBS or whatever.
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Time Plan

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 Intersection Of Project’s Phases
1. The Phases of any project are timely intersected, they
don’t start neither run nor end individually.

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 Therefore
• Planning phase is continuously running until the start
of the closing phase is assigned.
• Controlling phase will start with the planning and
remains running till the end of the whole project.
• Executing phase is the highest level of activity of the
project’s lifecycle and it ends up with by the end of the
project.
• Closing phase is considered as a planning phase for the
ending.
• That’s why while planning all phases will be affected.
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Timescales & Milestone Example

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 Agree A Timescale
• To have a reasonable timescale for the agreed project
via a scientifically proved method, we shall do this
through two main steps.
• The first one is to develop all expected times in three
forms as follows:
• The Most probably time of completing the
project. (M)
• The most optimistic time of completion. (O)
• The most pessimistic time of completion. (P) 37
 Agree A Timescale
• The Most probably time of completing the project. (M)
• Could be assigned from similar past projects.
• The most optimistic time of completion. (O)
• In case in an easy clear idea project some
managers or team members could be optimistic.
• The most pessimistic time of completion. (P)
• In also some new invented agile approaches some
people or managers could be pessimistic, which
gives the time limits of such projects more time
space for maneuvering.
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What Is The Rule?

O+P+4M
E=
6

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 What Is The Conditions?
It is only likely to give an up-to-date presumption of the
timescale of a project according to each of the phases it
would take. Plenty will depend on the scope of the project,
the countries selected, where the project’s phases will be
take place and the level of project’s finance, supply chain
and substructures. The Formula mentioned previously is to
do a known method to measure the estimated timescale
that the project most likely will take for duration.

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 CLASS ACTIVITY
Open Discussion individually or in group work:
If you are a project manager for a project of your
background information.
1. Please try to estimate the timescale of the project.
2. What conditions you will rely on to agree this
timescale for the management and implementation of
a project? 41
Resources & Cost Plan

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 Resources
• What do I need to get things done?
• One of the very fundamental tasks of any project
management process is to prepare a list with the needed
resources to initiate the project itself. This list basically
includes the hiring needs person-days / months / years,
also equipment, funding as well as the materials needs.
• The 4 Ms. 43
 Workforce Planning
• As we have a long list of tasks, we can now know what
workforce will be needed focusing on this item as it is
considered the most important M. (man power).
• Main workforce presented in the followed list will be
easily calculated accordingly:
• Salaries and rates.
• Packages and compensation facilities.
• Preliminary total amount of funds for the
workforce. 44
 Contingency Factors
• While supplying the main item of our initial list of
resources, we must have a contingency tool.
• These tools are used to make sure that noting will bring
us down after our launch, such as:
• Various sources of selection.
• Forming more than one hiring scenario.
• On spot evaluation as well as quick training
and development programs.
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 Effectiveness and Efficiency
• We need not to do the right thing, that is considered as
by default; we need to do things right.
• That’s why our aim in this matter is to match our
resources in relevance to our tasks, by which we can
reach the efficiency not the effectiveness only.

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Efficiency & Effectiveness

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 CLASS ACTIVITY
Open Discussion individually or in group work:
If you are a project manager for a project of your
background information.
1. Please match your main resources to a project to
achieve an efficiently proved performance.

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 Cost
• How much money do I need?
• What costing approach should I use?
• How much work will I produce to reach my breakeven
through a well prepared cost benefits analysis?
• What succession factors do I need to check that
product is in the right course as a costing point of
view? 49
 All Involved Resources
• All involved resources should be checked for the
costing system.
• 4 Ms, Manpower, Machinery, Money, and Materials.
• Manpower as mentioned before is forming the cost of
salaries, wages manpower rates / days and the whole
package of compensations and training as well.
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 Machinery & Equipment
• According to the aims and targets limits and in
relevance to the equipment capacities and the technical
features available, needs of equipment will be
illustrated.
• Accordingly, costing its running using the traditional
way or the ABC (activity based costing) approach will
be applicable. 51
 Materials & Supplies
• The materials as well could be possibly calculated in
either ways traditional or ABC.
• Noting that we have to differentiate between the
materials used for the core job and the materials used
for the administration purposes.
• What about supplier integration contracts and how this
will affect my costing system? (services contracts and
special rates) 52
 Money & Funds
• Costing all related and involved resources will lead us to
know the CAPEX and the OPEX
• Accordingly, we will know how much money we must
receive to initiate our project successfully.

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 Cost Approach
• Traditional Cost approach is well know and easily used
through dividing the resources needed upon the final
product units or services outlines to have a platform
form where pricing policy could be generated.
• But more accurate costing approach is by using the
ABC (activity based costing) according specific working
hours limits that contributes directly or in an indirect
form in the final product or service. 54
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 Cost Benefit Analysis
• To have a costing limits we must know exactly, when
our cost will not be reasonable.
• This point is calculated through a cost benefit famous
analysis, by which we can know when exactly our
outflows for this project will be considered as a non
conformity to be returned as profit or benefits
eventually. 56
 Cost Benefit Analysis
• If the benefits of the project didn’t appear throughout
its life in a form that at least equals the estimated costs
and exceeds if possible (April in the following figure).
• Then the CBA is not worthy and we can’t go further in
such a project, noting that a cost margin should be
taken into consideration as well as the currency
exchange prices. 57
Cost Benefit Analysis

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 CLASS ACTIVITY
Open Discussion individually or in group work:
If you are a project manager for a project of your
background information.
1. Please cost all resources required for the implementation
of a project.
2. Please generate an initial opinion regarding the cost
worthy of this project. 59
Risk Plan

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 Risk Analysis
• It is a very important feature to be added to your paper
, which is to define all or at least most of the project’s
expected qualitative or quantitative risk sources and to
prepare a common (recognized from all team) action to
prevent it or a reaction to correct in worst case.

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 Monitoring Progress
• How things will run that will give us initiative figures
and performance indicators about how the set up
composition actions were effective or efficient.
• Also it will give us a very good feed back for the level
of accuracy of the risk assessment we did before. And
the flexibly features will be essential to amend on spot.
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 Targets & Aims
• Monitoring all actions is important but the most
important is to monitor the outcomes specially the
confirmation of achieving the aim and targets. To cut
things short is to be result oriented.
• Quality assurance has to be involved in this point to
make sure that products or services are being presented
properly and nothing is corrupted, faked or forged. 63
 CLASS ACTIVITY
Open Discussion individually or in group work:
From a famous project of your background information.
1. Please as a project manager produce a project plan for
an agreed project, mentioning all related features.

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 Appropriate Strategy
• In accordance and alignment with the corporate level
Vision and Mission. The functional level strategy of the
project management process should take place.
• Same time this strategy should be as mentioned before
in the same cost, time limitation that is available for this
stage for this project.
• Scope will be generated from the corporate Vision.
• Quality is the matter. As in some multinational
corporates quality is not considered as a constraint. It is
a lifestyle.
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 Appropriate Strategy
• Meantime, they use lots of vendors, suppliers as well as
they extend in several countries, where 4Ms are much
low-priced.
• In this case the strategy of the total effective quality
production limits will be suitable to be implemented to
ensure that the quality definitions in both main
headquarters as well as in divisions and branches are
pretty much the same. 66
 Famous Example
• The Volks Wagen in Mexico, Assembly production line.
• In alignment with the corporate main vision that says
“Mass production within budget and any work that
exceeded the budget would be incurred as a loss
(Volks Wagen)”
• They managed to success so far with high qualitative
products within the mentioned timescale and budget.
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 Succession Criteria
• They hit the market because they used proper methods
in estimating the needed resources and they matched
them well.
• For Cost they used the NPV (Net Present Value) in
clarifying and recognizing the cost of the project in its
present value using the below equation.

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 Succession Criteria
• They also were accurate in their planning regarding the
estimation of the timescale and they used the previous
mentioned rule. E = 4M+P+O / 6
• The quality issue was their critical point of planning, as
their vendors have to face several upgrades programs to
make them almost able to keep with the quality of the
European VW in a near level of qualities.
• That’s why they faced a catastrophic case in September,
2015 regarding some models assembly especially within
the diesel engine cars in the regards of the emissions .
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 Failure Do Happens!!!
• Volkswagen had by design programmed a (TDI)
Turbocharged Direct Injection in Diesel engines to
activate certain emissions controls only during
laboratory emissions Testing.
• The programming caused the vehicles' nitrogen oxide
(NOx) output to meet US criteria during regulatory
testing but emit up to 40 times more NOx in real-world
driving.
• Volkswagen placed this programming in about eleven
million cars worldwide, and in 500,000 in the United
States, during model years 2009 through 2015. What a
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mess!!!
 CLASS ACTIVITY
Open Discussion individually or in group work:
If you are a project manager for a project of your
background information.
1. Please plan an appropriate strategy for the
implementation of a project.
2. Please mention its succession and failure criteria?
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Thanks

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