Project Initiation and Planning

Initiating and Planning Projects

Ron Meier, Professor

210L Turner Hall
Department of Technology
Illinois State University
Normal, IL 61790-5100
Phone (309) 438-2905
Email: rlmeier@ilstu.edu

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Project Initiation and Planning

Project Initiation and Planning

Description: Provide an overview of the activities needed to

successfully initiate, plan, schedule, and control the time and cost
factors of a project.

Objectives: The student will:

 Explain or define terminology associated with project planning

and scheduling including: Hoshin planning and analysis, project
life cycle, the phases of project planning and execution, work
breakdown structures, and scheduling terms.

 Develop appropriate plans and documentation needed to

initiate a project including project charter, scope, team
organization, work authorization system, and change control
system.

 Working from case studies, analyze project requirements and

develop a work breakdown structure for the project.

Benefits: Learn how to use project management tools to help

you create clear project missions and goals, accurately estimate
project time and costs, manage project scope, and establish
feedback systems for project control.

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Project Initiation and Planning

Start With the Project Charter

Project Title:

Project Description:
(What is the Project?)

Project Manager Assigned and Authority Level:

(Who is granted the authority to lead the project and determine resource requirements?)

Objectives:

(What quantitative criteria will be used to measure the project’s success? Focus on the
TRIPLE CONSTRAINTS)

Business Case:

(Why does your company need to do this project? How will your company benefit? This is
the business rationale!)

Product Description and Deliverables:

(What reports and documentation will be required? What is the end result of the project?)

Signed and Approved By:

XXXXXXX XXXXXX, Job Title XXXXXXX XXXXXX, Job Title

Insert Company Name Here Insert Company Name Here
Address of Company Address of Company
City, State Zip Code City, State Zip Code
Phone: (XXX) XXX-XXXX Phone: (XXX) XXX-XXXX
Fax: (XXX) XXX-XXXX Fax: (XXX) XXX-XXXX

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Project Initiation and Planning

What is Project Initiation?

The focus here is on Integration Management!

As the Project Manager – YOU are the integrator

The project manager integrates all the pieces of the

project

Senior management/project sponsor protects the

project from changes and loss of resources

The project team completes the tasks, activities, and

work packages

During project initiation it is vital to collect historical data and

information. Examples include:

 Tasks  Benchmarks
 WBS  Risks
 Reports  Resource Needs
 Estimates  Communications
 Project Plans  Best Practices
 Lessons Learned

 If no historical data or information has been kept in the past

– START a DATABASE of project related records, data, and
information

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Project Initiation and Planning

Developing a Project Planning Methodology

What is project plan development?

Project plan development is the process of generating

a project plan that is bought-into, approved, realistic
and formal.

Project plan development includes all of the following:

 A methodology for creating the plan

 Various iterations of the plan

 Meeting with functional managers to get needed resources

as needed

 Assess project risks and how they can impact your plan

 Meet with stakeholders to define their roles on the project

 Examine project interrelationships to assess potential

problems

 Have team members approve all activities and final schedule

 Hold kick-off meeting to review project objectives

 Present multiple solutions to management for problem

objectives

 Establish a control plan to evaluate project activities

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Project Initiation and Planning

Developing a Project Planning Methodology

Does your organization have standardized procedures, forms,

guidelines, and templates on how to plan projects?

Does your organization have scope statements, project charters,

work breakdown structures, statements of work, budget forms,
schedule forms, process analysis forms, change control plan,
performance measurement baselines, communications plans,
staffing plans, quality plans, risk management plans, etc.

If not – then use the templates from our courses

Think about developing a project management information

system!

 This information system can act as a repository for

automated tools, techniques and procedures, archiving
reports, meeting minutes, documentation of decisions, etc

 This information system can also include measurement

and evaluation techniques for assessing project success
and failures

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Project Initiation and Planning

What is planning?

Planning is the selecting of the organizational objectives and

establishing the policies, procedures, and programs necessary for
achieving them.

Planning is establishing a predetermined course of action within

a forecasted environment.

Planning is decision-making based upon what is needed in the

future.

Planning should completely define all of the work that is

required.

A Project Planning should:

 Eliminate or reduce uncertainty

 Improve efficiency
 Provide a better understanding of the objectives
 Provide a basis for monitoring and controlling work

Poor planning creates the following problems:

 Incomplete project initiation documents and scope definition

 Disillusionment
 Chaos
 Search for the guilty – passing blame onto others
 Promotion of non-participants
 Non-definition/ description of the requirements

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Project Initiation and Planning

Nine Major Components of Planning

Objective: A goal, or target, or quota to be achieved by a

certain time

Program: the strategy to be followed and the major actions

to be taken in order to achieve or exceed objectives

Schedule: a plan showing when individual or group

activities will be started and completed

Budget: planned expenditures to achieve or exceed

objectives

Forecast: a projection of what will happen by a certain time

Organization: design of the number and kinds of positions,

along with roles, responsibilities, and accountability required
to achieve or exceed objectives

Policy: a general guide for decision making and individual

actions

Procedure: a detailed method for carrying out a policy

Standard: a level of individual or group performance

defined as adequate or acceptable

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Project Initiation and Planning

A Partial Outline For Planning Questions

Prepare environmental analysis

Where are we?
How and why did we get there?

Set Objectives
Is this where we want to be?
Where would we like to be? In a year Five years?

List alternative strategies

Where will we go if we continue as we are?
Is this where we want to be?
How can we get to where we want to be?

List threats and opportunities

What might prevent us from getting there?
What might help us get there?

Prepare forecasts
Where are we capable of going?
What do we need to get us there?

Select strategy portfolio

What is the best course for us to take?
What are the potential benefits?
What are the risks?

Prepare action programs (activities that support objectives)

What do we need to do?
When do we need to do it?
How will we do it?
Who will do it?

Monitor and control

Are we on course? If not, why?
What do we need to do to be on course?
Can we do it?

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Project Initiation and Planning

Types of Benchmarking Required for the Planning

Process

 INTERNAL ASSESSMENT
o Management Skills
o Resources
o Wage and salary levels
o Minority groups
o Layoffs
o Sales forecasts

 EXTERNAL ASSESSMENT
o Legal
o Political
o Social
o Economical
o Technological

 COMPETITIVE ASSESSMENT
o Industry characteristics
o Company requirements and goals
o Competitive history
o Present competitive activity
o Competitive planning
 Return on investment ROI
 Market share
 Size and variety of product/service offerings
o Competitive resources

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Project Initiation and Planning

Once All Three Types of Benchmarking Are

Completed The Planning Process Continues With
The Following:

 Identification of your corporate strengths and weaknesses

 Clarification of senior managements personal values

 Identification of opportunities

 Define your product market

 Identify competitive strategies and product/service

differentiation techniques

 Establish goals, objectives, and standards

 Identify resources needed (people and $$$$$)

 Develop schedule of when goals, objectives and standards

will be met

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Project Initiation and Planning

Roles and responsibilities for developing a plan

 Project Managers define:

Goals and Objectives

Major milestones
Requirements
Ground rules and assumptions
Time, cost, and performance constraints
Operating procedures
Administrative policy
Reporting requirements

 Line Managers define:

Task descriptions to implement objectives, requirements,

and milestones
Detailed schedules and human resource allocations to
support the budget and schedule
Identification of areas of risk, uncertainty, and conflict

 Senior Management defines:

Act as negotiator for disagreements

Provide clarification on critical issues
Provide a communications link with customer’s senior
management

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Project Initiation and Planning

Once All Objectives Have Been Identified Four

Questions Need To Be Addressed:

(1) What are the major elements of the work required to satisfy
the objectives, and how are these elements interrelated?

(2) Which functional business units or divisions will assume

responsibility for accomplishments of these objectives and the
major-element work requirements?

(3) Are the required corporate and organizational resources

available?

(4) What are the information flow requirements for the project?

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