MSIN0147

Lecture 7
Project and programme planning

Clive Vassell
Aims and Objectives
▪ We will cover:
— The nature and content of programme and project plans
— Planning tools & techniques
— Problems / difficulties that may arise when planning
programmes and projects
▪ You should then be able to :
— Differentiate between project and programme planning
— Understand key planning techniques
— Suggest content for programme and project plans

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Key Elements of Project Planning

▪ What is the product breakdown structure (PBS), what

does it convey?
▪ What is the work breakdown structure (WBS)?
▪ What is the project schedule?
▪ What is the cost breakdown structure?

▪ What is the relationship between the four of them?

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Benefits of Planning

▪ Plans provide a range of benefits:

— Management of resources and expectations
— Credibility
— Efficiency
— Monitoring and control – baseline

▪ Uncertainty: look at “what if” situations

▪ Risk: identify and manage

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The Right Amount of Planning

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How is the optimum determined?

▪ Relevant variables
• Size & cost of project
• Number of staff involved
• Number of organisations involved
• Structure of teams & partnerships
• Familiarity of staff with project-type work
• Domain knowledge & experience

▪ Customer / senior management requirements will also play a part in how a project is
planned – if you are a supplier, you may have to plan to the level of detail and using the
same methods as the client, for example.

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 Have you had any experience or too
much or too little planning?

How did you know it was too much or too

little?
(student ideas and discussion)

Page 7
When to plan?

▪ Throughout!
▪ Planning peaks at the start
▪ Later planning involves :
— More detailed plans for later stages nearer to the time they
are needed
— New plans to cope with changing circumstances
— Contingency planning

▪ Planning is also linked to the funding cycle

— Funding may depend on approval of the plan for the next stage

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Differences in project, programme and
portfolio planning
Portfolio plans focus on business strategy, prioritisation, governance and assurance
A programme plan aims to:
• Confirm strategic objectives and business benefits sought
• Set out component projects, other activities and their interdependencies
• Set out business change requirements and activities
• Establish “policy” for projects within the programme
A project plan aims to:
• Establish in detail what is to be produced, by whom, when and how:
• get people to think ahead
• reveal problems and help find solutions
• add structure and progressively remove uncertainty

All plans need to relate back to the business case

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Any Questions?

Page 10
Project planning

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Linear Project Life Cycle Phases

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Extended Life Cycle

Page
Product Life Cycle

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Project Plan – developed in the
“definition” phase

▪ The route map for delivering the project

▪ Takes the “What” and “Why” of the business case and
▪ Adds “Who” “When” “How” Where” “How much”
▪ The baseline for conducting the project

“To document the planning process and provide the reference

document for managing the project”

(Source: APM Body of Knowledge, 5th edition)

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Planning process
PLAN

Project Project
Resources
Organisation Objectives

Business
“Products”
Case Constraints
“what” Assumptions
“Work”
“why” (tasks,
activties)

“Schedule”
Risks (timescales, Stakeholders
dependencies)

Implement
“Objectives” should
also include benefits Monitor and
and benefits Control

realisation
Learn and
Page 19 Close
Products, work and scheduling

PLAN

Project
Objectives

“Products”

“Work”
(tasks,
activties)

“Schedule”
(timescales,
dependencies)

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Example Product Breakdown Structure
(PBS)

Aircraft
0

Fuselage Wings Engines Interior

1.0 2.0 3.0 4.0

Control
Fuel Tanks Structure Lights
Surfaces
2.1 2.3 2.4
2.2

Spars Ribs Skin

2.3.1 2.3.2 2.3.3

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Some "products" for a new health service implementation

New Service

Operating
Staff Premises IT Equipment Consumables Communications
procedures

Communications
Band 7 Band 3 Phone lines PCs Mobile phones GP letters Intranet page
plan

Lease Redecoration

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Activities to deliver the project: “Work
Breakdown Structure” (tip: use verbs!)

▪ Defines the work to be undertaken on the project

▪ Gives a structure for:
— Resource allocation
— Scheduling
— Monitoring and control
— Supplier management
▪ Activities grouped by:
— Product (e.g. to produce a deliverable)
— Cross project activities (“logistics” or “training”)
▪ It is the backbone of the project

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Example activities for new service
implementation
▪ Staff
— Write job descriptions
— Approve job descriptions
— Place advertisement
— Interview candidates
— Make offers
▪ Premises
— Research suitable sites
— Make recommendations Not exhaustive – for
— Agree premises illustrative purposes
— Negotiate lease only
— Sign lease
— Order signage
— Install signage
— Recruit decorators
— Paint in house colours
▪ IT
— Define IT and comms requirements
— Order phone lines
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— Order PCs
Work Breakdown Structure (WBS)
Service

Staff Premises IT

Write Approve Research Make Agree Define Order

Interview Code

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Ordering tasks, dependencies – project
network diagram*

*Also known as a project logic diagram

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Total project duration

Red = Critical Path

"the longest path through the network"

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Total float

Total float for the activity buy materials = 1 day

Total float = "time by which an activity may be delayed or extended

without affecting the overall duration/violating a target finish date"
(Source: APM Body of Knowledge, 5th edition)

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Importance of milestones

▪ Key "marker posts" on the route to completing

your project. “A key event selected for its importance in
the schedule.” (BoK 6th Edition, Glossary)
▪ Phase gates are always milestones
— Typically release future funds
▪ Others can include:
— Completion of project deliverables ("products")
— Quality audit
— Delivery of third party components
— External communication

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MSP Gantt chart with milestones

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Other key elements of the project plan

▪ Cost Breakdown Structure

— The budget
▪ Organisational Breakdown Structure
— Impact of the project on departments within the organisation
▪ Responsibility Assignment Matrix
— Clarifies roles and responsibilities for activities within the
project plan

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Cost Breakdown Structure (CBS)

▪ Sets out budget in categories such as:

— Labour, materials, plant and equipment, external
contracts, fees, management or other overheads
▪ Breakdown and presentation varies according to
organisation custom and practice
▪ Should include a contingency fund
— To allow for extra expenditure where costs are uncertain
(according to current understanding of risk)
▪ And a management reserve
— For unknown unknowns Page 41
Cost Breakdown Structure (CBS)
Workpackage 1.0
£16,000

1.1 1.2 1.3

£5,000 £3,000 £8,000

1.1.1 1.1.2 1.2.1 1.2.2 1.3.1 1.3.2

£2,000 £3,000 £1,000 £2,000 £4,000 £4,000

Materials Materials Materials Materials Materials Materials

0 0 650 900 800 1500

Equipment Equipment Equipment Equipment Equipment Equipment

1100 0 125 50 0 2250

Labour Labour Labour Labour Labour Labour

800 2500 225 1000 3000 250
Travel Travel Travel Travel Travel Travel
100 500 0 50 200 0

Workpackage
Workpackage Workpackage
1.0 Entire Project
2.0 ...
Materials
3850 Materials Materials Materials
Equipment

3525 Equipment Equipment Equipment

Labour
Labour Labour Labour The COST
7775 BREAKDOWN
Travel
Travel Travel Travel STRUCTURE
850

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Organisational breakdown structure
(OBS)

▪ Takes resources allocated to tasks in the WBS

▪ Summary by organisational structure
▪ Shows contributing stakeholders what resource
required, when:
— Helps their planning
— And increases commitment to the project

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OBS Project Work Breakdown
Structure - Task
Relationship

WP1 WP2 WP3

Task Task Task Task Task Task

Person

Dept 1
Person

Organisation
Team

Dept 2
Person
Team

Contra
ct’r
Team
Involvement of Person or Organisational
Team with Task Breakdown Structure -
Reporting Lines
Page 44
Responsibility Assignment Matrix (RAM)

▪ Clarifies roles and responsibilities

— Who does the work? Is responsible for it being done?
Approves it? Has to be consulted?
▪ Importance
— Clarity of roles and responsibilities
— Linked to schedule helps smooth running of project
▪ especially key resources needed to approve
deliverables
— Communication and stakeholder buy-in

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Responsibility Assignment Matrix (RAM)
RACI Convention
WBS/OBS Dept A Dept B
Person 1 Person 2 Person 1 Person 2 Person 3
WP 1.0
Activity 1.1 R I I A
Activity 1.2 R C A
Activity 1.3 R C C
WP 2.0
Activity 2.1 I I R C
Activity 2.2 I A I R I

R : Responsible; A : Approve; C : Consult; I : Inform

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Key contents of a typical project plan

▪ Re-statement or update of project objectives

— (updated project brief)
▪ List of key stages
▪ Project network (logic) diagram
▪ Optimised Gantt chart
— detailed for early stages
▪ Responsibility charts
▪ Risk register or log
— retailed risk management measures for “red” risks
▪ Project budget
▪ Record of estimates
Source: Adapted from Young

Page 48
What makes a good project plan?

▪ Clear mandate/brief from an agreed business case

— what and why
— scope is clear
▪ Clear objectives/success criteria
▪ Content relevant to the project
— Specific, not general
▪ Milestones
▪ Estimating methods clear

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Any Questions?

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Exercise

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PBS: Practice Task

▪ Imagine you are in a new product development team for a mobile phone
manufacturer.
▪ You are charged with developing, manufacturing and launching a new
mobile phone
▪ Develop a PBS for your new product
▪ Suggestion:
— Consider the component parts of the deliverables
— Organise into hierarchical list or chart
— Break down into Parent / Child deliverables

Page
In groups of 2/3 – produce a PBS for this
project (tip: use nouns not verbs!)

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Break

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Discuss the PBSs produced

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Individual coursework

Page 58
Page 59
Page 60
Programme planning

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Programme planning

▪ Developing the future "to be" state

— “Blueprint”
▪ Gap analysis
▪ Designing the projects dossier (the projects which will deliver the
programme)
— Major milestones, dependencies between projects
▪ Benefits mapping
▪ Developing the benefits management plan
— Timing/transition to business as usual
▪ Resource allocation
▪ Programme will also set out the governance for the programme
— E.g. risk, change, quality processes, authority levels

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Hybrid Programme Life Cycle

Agile
Project in
Definition
Phase

Page
Typical programme lifecycle

Programme Lifecycle

Extended Programme Lifecycle

Concept

Definition

Project delivery
Tranche 1

Tranche 2

Tranche 3

Gate Review Closure

Phase Review

Post Programme Benefits realisation

Review
Benefit Review

Source: APM BoK 6 Page 65

Relationship between blueprint,
outputs and outcomes

Source: Managing Successful Programmes 2011

Page 66
Some typical challenges

▪ Poor estimating
— people doing the work should be involved, should understand what
they are being asked to do and why
▪ Scope not clear
— project manager/sponsor communication
▪ Too much/too little planning
— relate to scope, size, complexity, risk, experience
▪ Unrealistic expectations
— Perhaps due to poor PM/Sponsor communication
▪ Reluctance to take responsibility
— realistic goals, stakeholder management and communication

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Have you been involved in programme
planning?

What part did you play in the process?

(student ideas and discussion)

Page 68
Estimating

▪ Quantified approximation of project costs, durations and

resources.
▪ Needed for the schedule, resource needs and budget
▪ Estimates should get more accurate as the project
progresses – the estimating funnel
▪ The estimates in the PMP are effectively authorised so care
needs to be taken (+/- 10% is usually allowable at this point)

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The Estimating Funnel

Maximum

Spread of
estimates

CLOSURE
DEVELOPMENT /
DELIVERY

Minimum DEFINITION

CONCEPT

Source: APM BoK6

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Different methods of estimating
T
COMPARATIVE
T
IS THIS LIKE

THIS ONE?
C Q C Q

BOTTOM-UP

PARAMETRIC
? ? ? ? ? ? ? ? ?

HOW MUCH TIME

WILL EACH TAKE? = 4X+2Y+3Z = £190K

= 2X+1Y+1Z = £90K

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Comparative

Project is compared to others like it:

Is it bigger or smaller?
Is it more or less complex?
Is it using same technology or design methods?

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Parametric

Using data from past similar projects using key

parameters or measures

Common in the IT industry and construction companies

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Bottom Up

Can be used if there is no experience on doing a similar

project
The owner of each work package in the WBS makes an
estimate
The estimates are summed up for the total budget.
Tends to be time-consuming

Page 74
Conclusion

▪ Programme Plan establishes the strategy

— How are we getting to the “future state” which enables the
organisation to achieve the benefits sought
— Top level view of projects/dependencies/priorities
— Written by the programme manager, inputs from key stakeholders
and potential project managers
— Approved by the sponsor/senior responsible owner (SRO)
▪ Project Plan sets out the “tactics”
— More detailed document
— Must reflect the programme vision or business case objectives
— Written by the project manager, inputs from the team
— Approved by the project sponsor

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Any Questions?

Page 76
Mobile Phone PBS Example
Phone
0

Hardware Software Accessories Packaging Web

1.0 2.0 3.0 4.0 5.0

Power Troubleshoot
Casing General Box
adapter ing guides
1.1 2.1 4.1
3.1 5.1

Circuit Board Wallpaper Case Bar code FAQs

1.2 2.2 3.2 4.2 5.2

Sockets Internet Overpacks Manuals

1.3 2.3 4.3 5.3

Welcome
Screen Bluetooth
leaflet
1.4 2.4
4.4

Internal
Battery Applications
wrapping
1.5 2.5
4.5

Switches
1.6

This is a simple example and not fully comprehensive.

SIM Card
1.7
Page
Main Reading
APM v7 Handbook:
Sections 1.1, 1.2, 4.1 and 4.2
Supplemental Reading
Agile Project Framework:
Chapter 16

Resources section on Moodle

Thank you