Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Question 1: Explain in detail the project delay analysis methodology? Answer: Delay Analysis: Delay analysis is a widely debated construction law subject due to the number of projects that are not completed on time, the financial implications of late completion and the often quite different conclusions that can result depending upon the method of analysis used. Delay analysis is the technique used to identify causes of delay and the impact they have on the progress and completion of a project. It is necessary in some form for claims for extensions of time and cost of prolongation. Without it a contractor will fail to demonstrate any entitlement. In practice, several iterations are required to ensure that the model represents what would have happened but for the delays. This involves adjusting the level of detail, logic and durations of activities. When undertaken properly, this method of analysis addresses the complex issues of concurrent delays, acceleration and re-sequencing of activities. It is often used by expert witnesses when giving opinions in arbitration or litigation Delay analysis is a forensic investigation into the events or issues that caused a project to run late resulting in Schedule Variances. Delay analysts refer to `critical' and `non-critical' delays; the first are events causing delay to the project's completion date and the second type affect progress on the project but do not directly impact the project completion date. During the past decade developments in computer technology and the availability of more advanced planning software packages changed the way in which delay claims and the results of a delay analysis are presented. Delay analysis methodology: There are two types. The first type of delay analysis methodology is prospective; which demonstrates the theoretical or likely impact of the consequences of delaying events rather than showing what in fact occurred. The basis of this methodology is to establish a programming model of the project, usually the contractor's as planned program, then impact the model by the application of delaying events. This type of methodology is commonly used to demonstrate what extension of time a contractor is due, as a result of the application of employer responsible delaying events. This is said to be the contractor's entitlement. Entitlement in this context is derived from the results of a delay analysis and is not to be confused with contractual entitlement. In summary the prospective type of methodology is a theoretical calculation of the likely delay a delaying event(s) would cause to project completion. In other words, it focuses firstly on the delaying event and then demonstrates the likely delay to progress and ultimately project completion that is likely to flow from the event. The second type of delay analysis methodology is retrospective. The retrospective analysis tries to show what actually occurred on a project; where the delays were; and what caused the delay to project completion. The analysis shows how actual progress differed from what was planned. By focusing on how the works actually progressed, the analysis will show when work activities were delayed, and from the results of the analysis, investigation of what caused the actual delays can be carried out. In summation, this type of methodology looks at what actually happened, what activities were actually delayed and only thereafter what caused the delay. Both types of delay analysis methodology are to some degree subjective. The prospective analysis relies heavily on a programming model of the project and the delay analyst's opinion on how the delay event was likely to influence the model. The retrospective analysis is less

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Sikkim Manipal University

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PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 subjective as it relies on actual progress. However, interpretation of the results as to what caused delay is subjective. This is because the delay analyst will usually have to consider a number of related issues as to what caused delay and apply his own experience and judgment. If there were a single method of analysis that yielded only one result from a given set of facts then there would be little doubt as to the party responsible for the delay. Until such a method is found, however, delay analysis will continue to be a subject of much debate.

Question 2: Describe all the project management knowledge areas. Answer: The basic function of project management is to use skills and knowledge to manage and fully utilize all the resources in a project. Peter Ducker has said “Plans are only good intentions unless they immediately degenerate into hard work.” And to accomplish this tough task is the biggest challenge faced in a project. To face the challenge well, it is necessary to make sure you spend maximum time in planning. To make planning easier, PMI has subdivided project management into 42 processes. And these 42 processes have been bundled into 5 process groups. They are simultaneously distributed among 9 knowledge areas. These process groups/processes may overlap/repeat based on the activities on the project. The 42 processes are also grouped into various knowledge areas. The nine knowledge areas are: Project Integration Management: A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated. It consists of:  Project plan development—integrating and coordinating all project plans to create a consistent, coherent document.  Project plan execution—carrying out the project plan by performing the activities included therein.  Integrated change control—coordinating changes across the entire project. Project Scope Management: A subset of project management that includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It consists of:  Initiation—authorizing the project or phase.  Scope planning—developing a written scope statement as the basis for future project decisions.  Scope definition—subdividing the major project deliverables into smaller, more manageable components.  Scope verification—formalizing acceptance of the project scope.  Scope change control—controlling changes to project scope.

Bhupinder Singh

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Project Time Management: A subset of project management that includes the processes required to ensure timely completion of the project. It consists of:  Activity definition—identifying the specific activities that must be performed to produce the various project deliverables.  Activity sequencing—identifying and documenting interactivity dependencies.  Activity duration estimating—estimating the number of work periods that will be needed to complete individual activities.  Schedule development—analyzing activity sequences, activity durations, and resource requirements to create the project schedule.  Schedule control—controlling changes to the project schedule. Project Cost Management: A subset of project management that includes the processes required to ensure that the project is completed within the approved budget. It consists of:  Resource planning—determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities.  Cost estimating—developing an approximation (estimate) of the costs of the resources needed to complete project activities.  Cost budgeting—allocating the overall cost estimate to individual work activities.  Cost control—controlling changes to the project budget. Project Quality Management: A subset of project management that includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of:  Quality planning—identifying which quality standards are relevant to the project and determining how to satisfy them.  Quality assurance—evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.  Quality control—monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Project Human Resource Management: A subset of project management that includes the processes required to make the most effective use of the people involved with the project. It consists of:  Organizational planning—identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.  Staff acquisition—getting the needed human resources assigned to and working on the project.  Team development—developing individual and group skills to enhance project performance. Project Communications Management:

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 A subset of project management that includes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. Communication takes at least 90% of a Project Manager’s time! It consists of:  Communications planning—determining the information and communications needs of the stakeholders: who needs what information, when they will need it, and how it will be given to them.  Information distribution—making needed information available to project stakeholders in a timely manner.  Performance reporting—collecting and disseminating performance information. This includes status reporting, progress measurement, and forecasting.  Administrative closure—generating, gathering, and disseminating information to formalize phase or project completion. Project Risk Management: Risk management is the systematic process of identifying, analyzing, and responding to project risks. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives. It includes:  Risk management planning—deciding how to approach and plan the risk management activities for a project.  Risk identification—determining which risks might affect the project and document their characteristics.  Qualitative risk analysis—performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.  Quantitative risk analysis—measuring the probability and consequences of risks and estimating their implications for project objectives.  Risk response planning—developing procedures and techniques to enhance opportunities and reduce threats from risks to the project’s objectives.  Risk monitoring and control—monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle. Project Procurement Management: A subset of project management that includes the processes required to acquire goods and services to attain project scope from outside the performing organization. It consists of:  Procurement planning—determining what to procure and when.  Solicitation planning—documenting product requirements and identifying potential sources.  Solicitation—obtaining quotations, bids, offers, or proposals, as appropriate.  Source selection—choosing from among potential sellers.  Contract administration—managing the relationship with the seller.  Contract closeout—completion and settlement of the contract, including resolution of any open items.

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Question 3: State and describe process of estimating resource & duration for the activity. List the basic elements of a project plan. Answer: Activity Resource Estimating Process: Activity resource estimating is a process in which the project team carefully compiles a thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six inputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the required activity resources. Those tools include expert judgment, a complete alternatives analysis, and the use of published estimating data, project management software, and the use of bottom-up estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakdown structure, and the development of a resource calendar. The successful utilization of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure. Activity Duration Estimating: Activity resource estimating is a process in which the project team carefully compiles thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six inputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the required activity resources. Those tools include expert judgment, a complete alternatives analysis, the use of published estimating data, project management software, and the use of bottom-up estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakdown structure, and the development of a resource calendar. The successful utilization of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure. Basic elements of a project plan: Many people (and a distressing number of project managers, too) think only of a Gantt chart when they think of a project plan. You may recognise it as what you get from Microsoft Project. This is better called a project schedule, in that it shows when we expect the various sections of the project to happen. Whenever any project is planned it is absolutely vital to have a project plan and although initially it will take a little time to create, a good project plan will ultimately save you a good deal of time and probably money as well. It is often tempting to just roll up your sleeves and start bringing the project into being. But time taken to plan and create a project plan will actually ensure that you don't rush into something and make foolish mistakes because you didn't plan for something. A good project plan has certain key elements that enable the manager and team to bring any project to conclusion on time and under budget. A Without these key elements, the plan is incomplete and will eventually fail after proving itself useless to completing the project.

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Project planning is not an exact science, and project plans vary greatly depending upon what is being developed and the project scope. Furthermore, project plan terms like scope statement, project charter, and statement of work are not rigorously standardized and often have overlap or differing interpretations. One of the primary considerations should always be to have enough information, but no more. Demanding paperwork and reports for the simple sake of having things documented serves no useful purpose and can drive frustrated team members to view project management as nothing but busywork and bureaucracy.  What is to be done: What is desired of the project and what it must deliver to succeed? A high level scope document and requirements specs. at lower levels; When it needs to be done by: The deadlines by which the objectives must be met, usually in a schedule of some kind;  Who is to do it: The people, sometimes unkindly labelled “resources”, who are to deliver those objectives. This also usually implies costs since the application of costs implies the use of labour. Documented by a project budget;  How it is to be achieved: The method of delivery, covered by documents such as a technical specification, test plans and the like.

Question 4: Compare Critical Chain Project approach & critical chain approach. Answer: Project schedule plan is the main plan included in any Project Management Plan. Project schedule is responsible for bringing project time, cost and quality under control. Project schedule links resources, tasks and time line together. Once Project Manager has list of resources, work breakdown structure (WBS) and effort estimates, he is good to go for planning project schedule. Schedule network analysis helps Project Manager to prevent undesirable risks involved in the project. Critical Path Method (CPM) and Critical Chain Project Management (CCPM) are key elements of schedule network analysis. In the following sections we will explore these elements in details to understand their importance in keeping project on schedule to get increase in ROI. Critical Path Method (CPM) / Critical Chain Approach: The Critical Path Method (CPM) is a schedule network analysis technique. CPM was developed by the DuPont Corporation in 1957.Critical path determines the shortest time to complete the project and it is the longest duration path through a network of tasks. Critical tasks (activities) are tasks (activities) on the critical path. To understand CPM further let's first understand

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 nature of the task. According to PMBOK every scheduled task can be defined by the following four parameters:     Early Start (ES): Earliest possible point in time on which a task can start. Early Finish (EF): Earliest possible point in time on which a task can finish. Late Start (ES): Latest possible point in time on which a task can start. Late Finish (EF): Latest possible point in time on which a task can finish.

Early Start and finish dates are calculated by means of Forward Pass and Late Start and Late Finish dates are calculated by means of Backward Pass. Many Tasks have some amount of buffer added to them referred as Slack Time or Float. Float time is amount of time a task can slip before it delays project schedule. There are two common types of floats:   Free Float: Amount of time a single task can be delayed without delaying the early start of any successor task. Total Float: Amount of time a single task can be delayed without delaying project completion. Mathematically Float is defined as: Float = LS - ES or LF - EF. Critical path has zero or negative Total Float. A project can have several critical paths.

CPM is helpful in:      Project Planning and control. Time-cost trade-offs. Cost-benefit analysis. Contingency planning. Reducing risk

Limitations of CPM:       CPM assumes low uncertainty in schedule dates. Does not consider resource dependencies. Less efficient use of buffer time. Less focus on non-critical tasks that can cause risk. Based on only deterministic task duration. Critical Path can change during execution.

To overcome above limitations Critical Chain Project Management (CCPM) plays important role. Critical Chain Project Management (CCPM): According to PMBOK Critical chain method is a schedule network analysis technique that modifies the project schedule to account for limited resources. It mixes deterministic and probabilistic approaches to schedule network analysis. The critical chain concept was coined by Eliyahu Goldratt. Following few sections briefly describe the concepts Critical Chain depends on and are useful to understand the example that will follow shortly after that. CCPM takes advantage of the best practices of:  PMBOK: Planning and control processes.

Bhupinder Singh

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1    TOC (Theory of Constraints): Remove bottleneck to resolve constraints. Lean: Eliminate waste. Six-Sigma: Reduce Variations.

CCPM helps to overcome following phenomenon:     Parkinson’s Law: Work expands to fill the available time. Student Syndrome: People start to work in full fledge only when deadline is near. Murphy's Law: What can go wrong will go wrong. Bad Multi-Tasking: Bad multitasking can delay start of the successor tasks.

CCPM is based on:   Resource constrained situations. Optimum use of Buffer (amount of time added to any task to prevent slippage of schedule)• Project Buffers (PB): Amount of buffer time at the end of the project. • Feeding Buffers (FB): Amount of buffer time at the end of a sequence of tasks. • Resource Buffers (RB): It is an alert that is used to indicate that resource is needed to perform a task. This alert can be set few days before a resource is actually needed. Comparison of CPM and CCPM results: According to the results we found above, project duration by CPM traditional approach is 21 days and the project duration for the same amount of work by using CCPM is 16 Days. Using CCPM:    Project Duration can be reduced by 25-40%. Resources can be utilized effectively. Project is fully focused on both critical and non-critical tasks

Question 5: A new railway project is launched in India. Give an example of each project Influencing factors acronym in PESTLE. Answer: PESTLE Analysis in Business Environment: In business PESTLE analysis role is very important. Originally designed as a business environmental scan, the PESTLE analysis is an analysis of the external macro environment in which a business operates. These are factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. PESTLE meansP- Political, E- Economical, S- Social, T- Technological, L- Legal and E-Environmental The PESTLE subject should be a clear definition of the market being addressed that is as under:

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1         A company looking at its market. A product looking at its market. A brand in relation to its market. A local business unit or function in a business. A strategic option, such as entering a new market. A potential acquisition. A potential partnership. An investment opportunity

Now we see in detail of PESTLE factors/Impact of a new Railway project being launched in India, i.e. opportunities in Rail Logistics Parks in India. It is the study of the Indian context with a focus on Vapi, Gujarat (PESTLE Analysis of Vapi MMLP). Political Analysis: India has stepped up its plans in developing its infrastructure requirements and to promote its manufacturing and industrial sectors. The central government has launched ambitious plans to develop these requirements through public private partnerships. Considering the fact that the present government is the only other government to be re- elected after the government of Jawaharlal Nehru, we can assume that there will be stability in the policies brought forward by the present government. However, in a PPP, there is a level of control over the prices of services provided by the government. This might be problematic for a commercial developer in getting business to the park. For e.g. The Indian Railways which is under the administrative directive of the Ministry of Railways, heavily subsidise the passenger traffic on their services which they compensate by overpricing the freight traffic. The cost of transportation of steel (ton/km) is three times the one in China. As a result the movement of freight has increasingly shifted from rail to road. (Economic Intelligence Unit 2008). There is also the issue of high pricing of the toll on expressways and national highways for road freight traffic which has added to the costs and/or prevented many truck owners from using these roads for quicker deliveries. Moreover, changes in regulatory policies at JNPT can affect the margins of logistics operators. These policies and pricings can have significant impact on the development of the logistics park and affect growth in the long term. Socio - Economic Analysis: The road freight industry is growing at 6-8% every year and is currently worth about INR 1.42trillion. The country’s 4% of roadways carries 60% of the freight traffic. (Cushman & Wakefield 2008) This has not only increased the logistics costs, inefficiencies increase transport time, damage cargo and the increase the need to maintain large inventories. The impact to the Government is that there is an increase in the congestion on the roads which leads to more wear and tear and damaged roads resulting in high maintenance costs to the government. (Pankaj & Nimit n.d.) Manufacturers needing storage facilities and other services need to deal with separate agencies catering to these facilities. This has aided to the increase in the costs of logistics. Gujarat has an unemployment rate of 13% (Government of Gujarat 2008) and we know that the development of transport infrastructure is highly labour intensive and the project will help provide employment to people in and around Vapi. (CII, KPMG 2007) Manpower spends amount to 4% of sales against the industry average of 8 - 10%. India has a very large population of young workforce, but there is skills shortage especially in trucking and warehousing segment which can be addressed by involving multinational players in the market who will bring their skills and expertise into the Indian business. However, India’s labour regulations are complex and very restrictive which will hamper growth in the manufacturing

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Sikkim Manipal University

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PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 sector on which the logistics parks are dependent. (Arviset al. 2007) An MMLP can affect the livelihood of many depending on the trucking industry. However, this will take a long time as organised logistics is forecasted at just 12% in the next 10 years. Skills development and training has to be imparted to these sections to reemploy them in other industry. Technological Analysis: The Indian logistics sector lacks technological advancement that will hamper the provision of value added services to the customers. Integrated IT systems are necessary to link ports, the customs, and various parks to track shipments. Currently, only a few thousand vehicles out of a total of several millions have tracking system. Multinational logistics operators can bring their technological expertise into the market and will in turn benefit the local operators in optimising efficiency. In privatizing the operations of container traffic through rails, there might be problems faced by new entrants to secure the rolling stock and specialised storage containers e.g. reefer containers because of limited manufacturing capacity and technical know-how. This will result in firms to import wagons at high cost. All these factors will increase the entry barriers for the private operators. (Pankaj & Nimit n.d.) Technology is constantly evolving and the sustainability of the social, economic and environmental factors is proportional to the technological advancement. Rail infrastructure is a long term investment, planned for a life of 30-40 years; therefore any changes in technology will be implemented only at a later stage. This might reduce the competitive advantage of rail freight. In a survey conducted among different companies operating in India, It was found that 63.04% of the respondents felt the most important value added service is access to information about their consignment movement. Legal Analysis: All operators and commercial developers of a MMLP are bound by the Indian legal framework mainly by two laws. They are:1. Multimodal transportation of goods act: Multimodal transportation of goods in India is governed by an Act called the Multimodal Transportation of, Goods Act; 1993. The Act primarily deals with the multimodal transportation of goods, from any place in India to a place outside India, on the basis of a multimodal transport contract and formatters connected therewith or incidental thereto. All parties carrying out business in multimodal transportation has to be registered under this act. The act deals with regulations regarding the registration of the service, responsibilities if the consignor/ consignee and the liabilities involved in the service.2. Foreign Trade Act: Since multimodal logistic park operators have to handle goods exporting from and importing to India the operators are covered under Foreign Trade (Development and Regulation) Act, 1992. The act deals with, apart from other issues, the licensing requirements of the foreign trade, Power of Central Government to make Orders and Announce Export and Import Policy, Director General of foreign trade and his functions, issue of Importer-Exporter Code Number and Licence, power of the central government to Search, Seizure, Penalty and Confiscation of items traded/ premises of the trader etc. Though there is an exhaustive legal framework protecting the interests of the operators and the customers, the legal system is very slow and can be a barrier for an operator or developer in this field. In an interview, one of the trading directors of a large UK multinational revealed that the Indian judiciary, in his experience was a legal maze and it would be difficult to carry on with business as usual when the procedural framework makes it difficult for a project to kick start in the first instant. Environmental Analysis:

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Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 The Dedicated Freight corridor has an enhanced loading capacity in comparison to the existing facilities in the Indian railways. It has more width, height and an increased train length which will enable a load carrying capacity of 15,000 tons from the current capacity of 4000 tons. (Indian Railways 2007) In an interview, one of the senior executives of UK’s largest multimodal logistics companies said that the market for CO2 reduction transportation is limited, especially in the recession where everyone is trying to reduce costs and are not willing to pay a premium for the service. However, he said that there is a market of retail giants like ASDA and TESCO who are interested in rail based logistics transport as it is more carbon friendly. Conclusion: As the Indian markets are getting more competitive in the coming years, demand for multimodal logistics services including value added services is huge. Policy changes like the abolishment of the CST and opening of free trade and warehousing zones are deciding factors for more companies to outsource their logistics services to third party contractors. The traffic projection is for the Vapi project and does not reflect the overall demand of logistics parks in India. One the largest consumer for such service in the UK is the retail segment. Taking a cue from the UK market, we can assume that developing a logistics park in urban locations near to cities like Bangalore, Mumbai, and Chennai can capture greater traffic generated by both industrial as well as retail customers. To make this an even more attractive business proposition, value added services like ICT, software support, packaging, testing and quality control, postponement in manufacturing, etc. can be provided in the logistics parks. Limitations: Though the data for the traffic flows and demand have been taken in good faith, there are limitations to the figures and it is necessary to consider different factors influencing the data collection. The traffic forecast is calculated by taking into consideration the shift of traditional traffic flows (road transport) into rail. This can be achieved only when there is a cost advantage for the customer. The shift of traffic to the MMLP is dependent on the number of competitors in the area. The projections are forecast based on the assumption there will not be any other MMLP in this region. Though this might be a possibility in case of a rail based logistics park as the Indian Railways have a monopoly on the operation and development of this infrastructure, we have to take into consideration that other MMLP can be developed in the coming years depending on the demand. If a competitor can offer cost advantage with better service, this might directly affect the traffic flow to the Vapi MMLP.

Question 6: Describe the most important components of a project planning tool Answer: One of the critical factors for project success is having a well-developed project plan. Here is a 10-step approach to creating the project plan, not only showing how it provides a roadmap for project managers to follow, but also exploring why it is the project manager's premier communications and control tool throughout the project.

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PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Step 1: Explain the project plan to key stakeholders and discuss its key components. One of the most misunderstood terms in project management, the project plan is a set of living documents that can be expected to change over the life of the project. Like a roadmap, it provides the direction for the project. And like the traveller, the project manager needs to set the course for the project, which in project management terms means creating the project plan. Just as a driver may encounter road construction or new routes to the final destination, the project manager may need to correct the project course as well. A common misconception is that the plan equates to the project timeline, which is only one of the many components of the plan. The project plan is the major work product from the entire planning process, so it contains all the planning documents for the project. Typically many of the project's key stakeholders, that is those affected by both the project and the project's end result, do not fully understand the nature of the project plan. Since one of the most important and difficult aspects of project management is getting commitment and buying, the first step is to explain the planning process and the project plan to all key stakeholders. It is essential for them to understand the importance of this set of documents and to be familiar with its content, since they will be asked to review and approve the documents that pertain to them. Components of the Project Plan Include: Baselines: Baselines are sometimes called performance measures, because the performance of the entire project is measured against them. They are the project's three approved starting points and include the scope, schedule, and cost baselines. These provide the 'stakes in the ground.' That is, they are used to determine whether or not the project is on track, during the execution of the project. Baseline management plans: These plans include documentation on how variances to the baselines will be handled throughout the project. Each project baseline will need to be reviewed and managed. A result of this process may include the need to do additional planning, with the possibility that the baseline(s) will change. Project management plans document what the project team will do when variances to the baselines occur, including what process will be followed, who will be notified, how the changes will be funded, etc. Other work products from the planning process: These include a risk management plan, a quality plan, a procurement plan, a staffing plan, and a communications plan. Step 2: Roles and responsibilities: Not all key stakeholders will review all documents, so it is necessary to determine who on the project needs to approve which parts of the plan. Some of the key players are:

 Project sponsor, who owns and funds the entire project,. Sponsors need to review and
approve all aspects of the plan.

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PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1

 Designated business experts, who will define their requirements for the end product.
They need to help develop the scope baseline and approve the documents relating to scope. They will be quite interested in the timeline as well.

 Project manager, who creates, executes, and controls the project plan. Since project
managers build the plan, they do not need to approve it.  Project team, who build the end product. The team needs to participate in the development of many aspects of the plan, such as identifying risks, quality, and design issues, but the team does not usually approve it.

 End users, who use the end product. They too, need to participate in the development
of the plan, and review the plan, but rarely do they actually need to sign off.

 Others, such as auditors, quality and risk analysts, procurement specialists, and so on
may also participate on the project. They may need to approve the parts that pertain to them, such as the Quality or Procurement plan. Step 3: Hold a kick-off meeting. The kick-off meeting is an effective way to bring stakeholders together to discuss the project. It is an effective way to initiate the planning process. It can be used to start building trust among the team members and ensure that everyone's ideas are taken into account. Kick-off meetings also demonstrate commitment from the sponsor for the project. Here are some of the topics that might be included in a kick-off meeting:         Business vision and strategy (from sponsor) Project vision (from sponsor) Roles and responsibilities Team building Team commitments How team makes decisions Ground rules How large the group should be and whether sub-groups are necessary

Step 4: Develop a Scope Statement. The Scope Statement is arguably the most important document in the project plan. It’s the foundation for the rest of the project. It describes the project and is used to get common agreement among the stakeholders about the scope. The Scope Statement clearly describes what the outcome of the project will be. It is the basis for getting the buy-in and agreement from the sponsor and other stakeholders and decreases the chances of miscommunication. This document will most likely grow and change with the life of the project. The Scope Statement should include:    Business need and business problem Project objectives, stating what will occur within the project to solve the business problem Benefits of completing the project, as well as the project justification

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Page 13 of 16

Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1   Project scope, stated as which deliverables will be included and excluded from the project. Key milestones, the approach, and other components as dictated by the size and nature of the project.

It can be treated like a contract between the project manager and sponsor, one that can only be changed with sponsor approval. Step 5: Develop scope baseline. Once the deliverables are confirmed in the Scope Statement, they need to be developed into a work breakdown structure (WBS), which is a decomposition of all the deliverables in the project. This deliverables forms the scope baseline and has these elements:  Identifies all the deliverables produced on the project, and therefore, identifies all the work to be done. Takes large deliverables and breaks them into a hierarchy of smaller deliverables. That is, each deliverable starts at a high level and is broken into subsequently lower and lower levels of detail. The lowest level is called a "work package" and can be numbered to correspond to activities and tasks.

The WBS is often thought of as a task breakdown, but activities and tasks are a separate breakdown, identified in the next step. Step 6: Develop the schedule and cost baselines. Here are the steps involved in developing the schedule and cost baselines.        Identify activities and tasks needed to produce each of the work packages, creating a WBS of tasks. Identify resources for each task, if known. Estimate how long it will take to complete each task. Estimate cost of each task, using an average hourly rate for each resource. Consider resource constraints, or how much time each resource can realistically devoted to this project. Determine which tasks are dependent on other tasks, and develop critical path. Develop schedule, which is a calendarization of all the tasks and estimates. It shows by chosen time period (week, month, quarter, or year) which resource is doing which tasks, how much time they are expected to spend on each task, and when each task is scheduled to begin and end. Develop the cost baseline, which is a time-phased budget, or cost by time period. This process is not a one-time effort. Throughout the project you will most likely be adding to repeating some or all of these steps.

Step 7:

Bhupinder Singh

Reg. No. 521063004

Page 14 of 16

Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Create baseline management plans. Once the scope, schedule, and cost baselines have been established, you can create the steps the team will take to manage variances to these plans. All these management plans usually include review and approval process for modifying the baselines. Different approval levels are usually needed for different types of changes. In addition, not all new requests will result in changes to the scope, schedule, or budget, but a process is needed to study all new requests to determine their impact to the project. Step 8: Develop the staffing plan. The staffing plan is a chart that shows the time periods, usually month, quarter, year, that each resource will come onto and leave the project. It is similar to other project management charts, like a Gantt chart, but does not show tasks, estimates, begin and end dates, or the critical path. It shows only the time period and resource and the length of time that resource is expected to remain on the project. Step 9: Analyse project quality and risks. Project Quality is consists of ensuring that the end product not only meets the customer specifications, but is one that the sponsor and key business experts actually want to use. The emphasis on project quality is on preventing errors, rather than inspecting the product at the end of the project and then eliminating errors. Project quality also recognizes that quality is a management responsibility and needs to be performed throughout the project. Creating the Quality Plan involves setting the standards, acceptance criteria, and metrics that will be used throughout the project. The plan, then, becomes the foundation for all the quality reviews and an inspection performed during the project, and is thus used throughout project execution. Project Risk is an event that may or may not happen, but could have a significant effect on the outcome of project, if it were to occur. For example, there may be a 50% chance of a significant change in sponsorship in the next few months. Analysing risks includes making a determination of both the probability that a specific event may occur and if it does, assessing its impact. The quantification of both the probability and impact will lead to determining which the highest risk that needs attention is. Risk management includes not just assessing the risk, but developing risk management plans to understand and communicate how the team will respond to the high-risk events. Step 10: Communicate! One important aspect of the project plan is the Communications Plan. This document states such things as:    Who on the project wants which reports, how often, in what format, and using what media? How issues will be escalated and when. Where project information will be stored and who can access it.

For complex projects, a formal communications matrix is a tool that can help determine some of the above criteria. It helps document the project team's agreed-on method for communicating various aspects of the project, such as routine status, problem resolution, decisions, etc.

Bhupinder Singh

Reg. No. 521063004

Page 15 of 16

Sikkim Manipal University

- MBA -

PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 Once the project plan is complete, it is important not just to communicate the importance of the project plan to the sponsor, but also to communicate its contents once it's created. This communication should include such things as:    Review and approval of the project plan. Process for changing the contents of the plan. Next steps-executing and controlling the roles/responsibilities in the upcoming phases.

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stakeholder

Bhupinder Singh

Reg. No. 521063004

Page 16 of 16

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