Chapter 5: Project Decisions and

Project Planning
 Project Decisions

Project Identification

Idea Generation and Promoter Selection

Opportunity and Feasibility Studies

Project Selection
Project Charter (PMBOK Definition)

A document issued by the project initiator

or sponsor that formally authorizes the
existence of project and provides the
project manager with the authority to
apply organizational resources to project
activities.
 Concept of Project Planning

Elements of Project Planning

Scope Objective Team Schedule Resource

 Concept of Project Planning

Project Scope: It states the main purpose of selecting a specific project, its legality,
and significance.
Project Team: It represents a group of individuals to whom the tasks of completing a
project is delegated.
Project Objectives: They provide a detailed description of the desired results of a
project.
Project Schedule: It is a roster that states the allocation of tasks and resources to
team members so that a project can be completed within the stipulated time.
Project Resources: These are the means available to an organisation for the
completion of a project. These resources can be physical or financial.
 Concept of Project Planning

Steps in Project Planning

Recognising
Establishing goals Preparing a Preparing
project
and objectives project schedule supportive plans
deliverables

Arrange for electric Hydro Power Plant List of activities Risk Planning
supply for the village Electric lines to the village Connection of activities Communication Plan
Training to people Duration of activities Human Resource Planning
 A
Project Planning Tools

Tools of Project Planning

Force-Field
Analysis Cash Flow Plus-Minus- Cost/Benefit
Forecast Interesting Analysis
(PMI)
Work Breakdown Structure

Hydro Power Plant

Work Breakdown Structure

Hydro Power Plant

Work Breakdown Structure

Hydro Power Plant

Electrical Turbine Piping Dam

 Work Breakdown Structure

Hydro Power Plant

Electrical Turbine Piping Dam

Control Wiring Generator Turbine Ground Pipes Fittings Ground Wall

Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1

Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2

……. ……. ……. ……. ……. ……. ……. ……. …….
WBS Template
WBS Example
 B
WBS Example - Mangalayaan
RAZI
 RACI

Hydro Power Plant

Electrical Turbine Piping Dam

Who will Who is Who will Who need to
Execute? Accountable? Advise? be Informed?

Control Wiring Generator Turbine Ground Pipes Fittings Ground Wall

Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1 Task 1

Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2 Task 2

……. ……. ……. ……. ……. ……. ……. ……. …….
RACI

Who will Who is Who will Who need to

Execute? Accountable? Advise? be Informed?
 RACI

Who will Who is Who will Who need to

Execute? Accountable? Advise? be Informed?
RACI

Responsible
Accountable
Consulted
Informed
RACI

Responsible
Accountable
Consulted
Informed
 Project Planning Estimation

Time Cost Resource

 Project Planning Estimation

Methods of Estimation: Estimation Tools

Task breakdown • Nominal group technique (NGT)
Delphi method
• Expert advice
Task examination
• Expert opinion
Results documentation
• Estimating equations
Historical data examination
Parametric estimating • Decomposition

Structured planning • Three-point estimation

Dependencies identification • Base and contingency
estimation
Project Planning Estimation – Approaches – Bottom-up
 Project Planning Estimation - Approaches

Bottom-up Approach: Definite estimate or micro estimate.

Top-down Approach:
by correlating the same type of projects undertaken in the past
called budget estimate, or macro approach of estimation
estimation in this approach is done based on the judgement and experience of senior and junior
level managers
 D
Project Planning Estimation – Approaches - Topdown
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