Overview

• Project Planning: The Project Infrastructure focuses on defining

the infrastructure required to support and plan the project. This
includes governance of the project, selection of the project team,
and acquisition of internal and external resources, and
procurement contracts that are summarized in the next project
deliverable called the project charter.
Objectives
• After completing this unit, you’ll be able to:
• Describe the planning phase of the project life cycle (PLC)
• Define the project’s infrastructure
• Describe project governance and its role
• Understand the roles of the project manager and how the project team is
selected
• Understand how a project acquires both internal and external resources
• Understand and describe the project environment
• Describe the three general categories for procurement-type contracts
• Develop a project charter and understand its relationship to the project
plan
Contents
• Introduction
• Project Governance
• The Project Team
• The Organization and Project Planning
• Procuring External Project Resources
• The Project Environment
• The Project Charter
Introduction
• The planning phase generally requires more time, effort, and
resources than was invested in developing business case. This
entails a subtle yet important transition from a strategic mindset
to a more tactical one that integrates a number of subplans to
identify, coordinate, authorize, manage, and control the project
work.
• At this stage of the project, an attempt is made to answer the
following questions:
• What work needs to be done?
• Who will do this work?
• What resources will be needed to do the work?
• When will they do the work?
• How long will it take?
• How much will it cost?
• Does the time, money, and resources invested support the project’s MOV?
Introduction
• MOV – not only set expectations –planning the project
• A good project plan – scope, schedule,budget objectives – support
the project’s MOV
• The Planning fase - time, effort, resources
Introduction

MOV
Objectives
Project

Governance Resouces

Figure 1. The Project Infrastructure

Project Governance
1. Set organizational strategy and objectives
2. Provide resources
3. Monitor and control activities

• Project also require a set of “checks and balances” that work along
with an organizational governance structure to ensure that right
decisions are made.
 Project Governance

Organizational Governance

Authorization
Strategic Project Governance oversight and
Alignment accountability
Business value decision making
resources

Project

Figure 2. Project Governance

Project Governance
• It also an important component of the project’s infrastructure that
defines accountability and responsibility.
• Project governance must define the following:
• Structure
• Authorization
• Oversight and Accountability
• Decision Making
• Resources
The Project Manager
The ability to communicate with the people
The ability to deal with people
The ability to create and sustain relationships
The ability to organize
The Project Team
Technology skills
Business/organization knowledge
Interpersonal
The Organization and Project
Planning

Figure 3. The Organization and Project Resources

The Functional Organization
• This particular structure based on organizing resources to
perform specialized tasks or activities in order to attain the goals
of the organization.
• Projects in a functional organization are typically coordinate
through customary channels and housed within a particular
function.
• There are a number of advantages for projects sponsored by
organizations with functional structures. These include:
• Increased flexibility
• Breadth and depth of knowledge and experience
• Less duplication
• Several disadvantage associated with projects sponsored by
organizations with functional structures.
• Determining the authority and responsibility
• Poor response time
• Poor integration
The Project Organization

Advantages Disadvantages

Clear authority and responsibility Project isolation

Improved communication Duplication of effort

High level integration Projectitis

The Matrix Organization
• The matrix organization- combination of the vertical functional
structure and the horizontal project structure.
• opportunities and challenges associated with the functional and project
organizations.
• ability to integrate areas and resources throughout an organization.
• Advantages for project supported by a matrix organization:
• High level of integration
• Improved communication
• Increased project focus
• Disadvantages for project supported by the matrix organization:
• Higher potential for conflict
• Poorer response time
Procuring External Project
Resources
• Today, outsourcing has expanded to include business process
outsourcing – accounting, information technology, research, and
development, HRM
• Outsourcing can be an organization level decision or a project
level decision – approaches to outsourcing
• Figure 4 which shows that a continuum of outsourcing
relationship can exist.
Procuring External Project
Resources

Figure 4. The Project Outsourcing Mode

Procurement Planning
• Projects generally require resources, products, or services that
must be purchased or acquired externally.
• How, when, how many, and where will be a acquired
• Request for proposal (RFP), - solicit bids, quotes, or proposals
from prospective sellers.
• Hold a conference with Bidders, contractors, vendors, and so on
Contracts Between Sellers and
Buyers
• A contract - a document signed by the buyer and seller that
defines the defines the terms and conditions of the buyer-seller
relationship.
• Defines the terms and conditions or such things as responsibilities
and authorities, technical and project management approaches,
proprietary rights, financing, schedule, payments, quality
requirements, and price, as well as remedies and process for
revisions to the contract.
Contracts Between Sellers and
Buyers
1. Fixed-price or lump-sum contracts
2. Cost-reimbursable contracts
• Cost-plus-fee (CPF) or cost-plus-percentage-of-cost (CPPC)
• Cost-plus-fixed-fee (CPFF)
• Cost-plus-incentive-fee (CPIF)
3. Time and materials (T&M) contracts
The Project Environment
• The project environment includes not only the physical space
where the team will work, but also the project culture.
• More specially, the project environment includes:
• A place to call home
• Technology
• Office supplies
• Culture
The Project Charter
• The project charter serves as an agreement and as a
communication tool for all of the project stakeholders.
• The purpose of the project charter is to:
• Document the project’s MOV
• Define the project infrastructure
• Summarize the details of the project plan
• Define the project’s governance structure
• Show explicit commitment to the project
What Should Be in a Project
Charter?
• Project Identification
• Project Stakeholders
• Project Description
• Measurable Organizational Value (MOV)
• Project Scope
• Project Schedule
• Project Budget
• Quality Standards
• Resources
• Assumptions and Risks
• Project Administration
What Should Be in a Project
Charter?
• Administrasi may include :
• A communication plan
• A Scope management plan
• A quality management plan
• A change management and implementation plan
• A human resources plan
 What Should Be in a Project
Charter?
• Acceptance and Approval
• References
• Terminology

Figure 5. A Project Charter Template

A Project Charter Template
Unit Summary
• You should now be able to:
• Describe the planning phase of the project life cycle (PLC)
• Define the project’s infrastructure
• Describe project governance and its role
• Understand the roles of the project manager and how the project team is
selected
• Understand how a project acquires both internal and external resources
• Understand and describe the project environment
• Describe the three general categories for procurement-type contracts
• Develop a project charter and understand its relationship to the project
plan