PMI Course Lesson 3: Plan the Project Study Notes

The Project Management Plan and Collaborative Planning

• The Project Management Plan is the central document describing how a project will be executed, monitored and controlled, and closed.

• Key components of the plan include:

  • Subsidiary plans (e.g., Scope Management Plan, Schedule Management Plan).

  • Baselines (Scope, Schedule, and Cost baselines).

  • Additional components required for the specific project context.

• The plan establishes "guardrails" to maintain controls, enabling teams to tailor their way of working while remaining flexible and acting quickly.

• Project Documents are secondary artifacts used to manage the project; they are not considered part of the formal project management plan components. Examples include the risk register, stakeholder register, and activity list.

• Collaborative Planning in Adaptive and Hybrid Approaches:

  • Product Owner: Decides objectives based on customer needs and wants. Provides the vision for work execution.

  • Team Members: Serve as local domain experts in integration management. They determine how work will be planned and completed.

  • Project Manager/Team Lead/Scrum Master: Facilitates and helps focus the team to execute the planned work.

Comparative Planning Approaches Across Life Cycles

• Requirements Specification:

  • Predictive: Defined in specific terms before development begins.

  • Hybrid: Elaborated periodically during delivery.

  • Adaptive: Elaborated frequently during delivery.

• Outcomes:

  • Predictive: Delivered as a single result at the end of the project.

  • Hybrid: Can be divided into pieces (incremental delivery).

  • Adaptive: Delivered after each iteration according to stakeholder-desired value.

• Change Management:

  • Predictive: Constrained as much as possible to maintain the baseline.

  • Hybrid: Incorporated at periodic intervals.

  • Adaptive: Incorporated in real-time during delivery.

• Stakeholder Involvement:

  • Predictive: Occurs at specific, pre-defined milestones.

  • Hybrid: Occurs regularly throughout the lifecycle.

  • Adaptive: Occurs continuously through constant feedback loops.

• Risk and Cost Controls:

  • Predictive: Managed through detailed planning of mostly known considerations.

  • Hybrid: Managed through progressive elaboration of plans.

  • Adaptive: Managed as requirements and constraints emerge.

Scope Planning and Requirements Collection

• Scope Definitions:

  • Product Scope: The features and functions that characterize a product, service, or result.

  • Project Scope: The work performed to deliver a product, service, or result with the specified features and functions.

• Rolling Wave Planning: A form of progressive elaboration applied to work packages, planning packages, and release planning. It is used in both adaptive and predictive approaches.

• Incremental Work Planning:

  • MVP: Minimum Viable Product.

  • MBI: Minimum Business Increment.

• Product Roadmap: Envisions the "big picture," displays strategy and direction, and uses themes (goals) to provide structure. It provides both short-term and long-term visualization.

• Milestones: Zero-duration markers for major events, reviews, due dates, payments, or decision-making.

  • Mandatory Milestones: Required by contract.

  • Optional Milestones: Based on historical information.

• Detailed Requirements:

  • A requirement is a single measurable statement of a condition or capability desired to satisfy a business need.

  • Requirements must be unambiguous (measurable and testable), traceable, complete, consistent, and acceptable.

• Requirements Traceability Matrix (RTM): A grid that links product requirements from their origin to the deliverables that satisfy them.

Requirements Prioritization and Data Representation

• MoSCoW Analysis (developed by Dai Clegg):

  • M: Must have (essential requirements).

  • S: Should have (important but not vital).

  • C: Could have (desirable if time/budget permits).

  • W: Won't have (for now; deferred work).

• Kano Model (developed by Noriaki Kano):

  • Classifies features into Delighters/Exciters, Satisfiers, Dissatisfiers, and Indifferent.

• Paired Comparison Analysis (developed by LL Thurston): Rates and ranks alternatives by comparing each against every other alternative.

• 100 Points Method (developed by Dean Leffingwell and Don Widrig): Stakeholders distribute 100 points (like "Monopoly money") across a list of requirements to indicate priority.

• Data Representation Techniques:

  • Mind Mapping: Consolidates ideas from brainstorming into a single map to show commonality and generate new ideas.

  • Affinity Diagram: Classifies large numbers of ideas into groups for review and analysis.

  • Context Diagram (Business Context Diagram): A visual depiction of the product scope showing a business system and how people and other systems (actors) interact with it.

  • Prototyping: An experimentation tool for early feedback. Storyboarding is a visual type of prototyping.

Product Analysis and the Work Breakdown Structure (WBS)

• Product Analysis Methods:

  • Product Breakdown: Splits product requirements into components.

  • Systems Engineering: Multidisciplinary approach to complex system lifecycles.

  • Systems Analysis: Identifies product goals to create efficient procedures.

  • Requirements Analysis: Identifies and documents project specifications.

  • Value Engineering: Optimizes value in a structured way.

  • Value Analysis: Examines cost factors to achieve required quality at the lowest cost.

• The Work Breakdown Structure (WBS):

  • Follows the 100% Rule: The WBS includes 100% of the work defined by the project scope and captures all deliverables.

  • Hierarchical Structure:

    1. Project Level (Top).

    2. Control Account: Management control point where scope, budget, and schedule are integrated.

    3. Planning Package: Components below the control account that have no detailed schedule activities but represent work needed for further planning.

    4. Work Package (Lowest): The level at which cost and duration can be reliably estimated and managed.

• WBS Dictionary: A document that provides detailed deliverable, activity, and scheduling information about each component in the WBS, including acceptance criteria and technical references.

• Scope Baseline: The approved version of the Scope Statement, WBS, and WBS Dictionary.

Scope Planning in Adaptive and Hybrid Environments

• In adaptive environments, scope is managed through Backlogs and User Stories.

• User Stories: A way of describing functionality from an end-user perspective. They follow the hierarchy:

  • Epic: A major deliverable or large body of work.

  • Feature: Groups related functionality together to deliver value.

  • User Story: Specific, manageable work items.

• Backlogs:

  • Product Backlog: An evolving, prioritized list of work items.

  • Iteration/Sprint Backlog: Selected items from the product backlog to be completed in a specific timebox.

• Story Map (developed by Jeff Patton): Organizes user stories into functional groups and a narrative flow to represent the "big picture" product roadmap.

Schedule Management Planning and Activity Definition

• Schedule Management Plan Components:

  • Schedule Model: Tools and methodologies used for development.

  • Accuracy: Acceptable ranges for estimates ($\pm$ percentages).

  • Units of Measure: Defined hours, days, or weeks.

  • Organizational Procedural Links: Linking the WBS to the schedule.

  • Control Thresholds: Thresholds for monitoring performance (e.g., $10\%$ variance before escalation).

  • Rules of Performance: Earned Value Management (EVM) rules.

• Benchmarking: Comparing current schedules with similar historical projects to assess feasibility.

• Activity Dependency Types:

  • Mandatory: Contractually required or inherent in the work; no way around the sequence.

  • Discretionary: Based on best practices; can be modified for schedule compression.

  • External: Dependencies between project activities and non-project activities (outside team control).

  • Internal: Dependencies within the team's control.

• Precedence Relationships (Precedence Diagramming Method - PDM):

  • Finish to Start (FS): Successor cannot start until predecessor finishes.

  • Finish to Finish (FF): Successor cannot finish until predecessor finishes.

  • Start to Start (SS): Successor cannot start until predecessor starts.

  • Start to Finish (SF): Successor cannot finish until predecessor starts.

• Leads and Lags:

  • Lead: Amount of time a successor activity can be advanced.

  • Lag: Amount of time a successor activity must be delayed.

  • Note: Leads and lags do not have intrinsic effort value and are not included in duration estimates.

Activity Duration Estimating Techniques

• Terminology:

  • Activity Duration Estimate: Quantitative assessment of time periods required.

  • Elapsed Time: Actual calendar time from start to finish.

  • Effort: Number of labor units required (e.g., staff hours).

• Estimating Methods:

  • Analogous Estimating: "Top-down" approach using historical data from similar projects. Fast but less accurate.

  • Parametric Estimating: Uses an algorithm or statistical relationship (e.g., labor hours per unit of work) to calculate duration.

  • Three-Point Estimating: Accounts for uncertainty using three values: Optimistic ($O$), Most Likely ($M$), and Pessimistic ($P$).

  • Triangular Distribution Formula: $E = \frac{O + M + P}{3}$

  • Beta (PERT) Distribution Formula: $E = \frac{O + 4M + P}{6}$

  • PERT Standard Deviation: $\sigma = \frac{P - O}{6}$

  • Bottom-Up Estimating: Aggregating estimates from lower-level WBS components for high accuracy.

The Critical Path Method and Schedule Optimization

• Critical Path Method (CPM): Determining the longest path through the project network to find the shortest possible project duration. Activities on the critical path have zero float.

• Resource Optimization:

  • Resource Leveling: Adjusting dates based on resource constraints; can change the critical path and delay completion.

  • Resource Smoothing: Adusting activities within free and total float; does not change the critical path.

• Schedule Compression:

  • Fast-tracking: Performing activities in parallel. Increases risk and rework.

  • Crashing: Adding resources for the least incremental cost. Only effective for critical path activities.

• Special Intervals:

  • Black-out Times: Periods where changes are suspended (often during "Go Live").

  • Hardening Sprint (Iteration H): A late-stage interval dedicated to final testing and fixes before release.

• Measure Effort in Adaptive Environments:

  • Relative Sizing: Using T-shirt sizes ($XS, S, M, L, XL$) to compare effort.

  • Story Points: Using Fibonacci sequence numbers to identify difficulty.

  • Planning Poker: Collaborative estimation using cards representing Fibonacci numbers.

Resource Management and Responsibility Assignment

• Resource Management Plan: Identifies how to acquire, manage, and release people and equipment. Defines roles, authority, responsibility, and competencies.

• Resource Calendars: Documents when specific resources (people/equipment) are available.

• RACI Chart: A type of Responsibility Assignment Matrix (RAM):

  • Responsible: The person performing the work. At least one per task.

  • Accountable: The person who delegates/reviews. Only one per task.

  • Consulted: Provides input/feedback. SMEs and stakeholders.

  • Informed: Kept up-to-date on progress.

• Adaptive Resource Planning:

  • Teams are self-organizing.

  • Mix of generalists and specialists (T-shaped professionals).

Procurement Strategy and Contract Types

• Procurement Documents:

  • SOW (Statement of Work): Details of required work.

  • RFQ (Request for Quotation): Focuses on cost only.

  • IFB (Invitation for Bid): Request for interest from sellers.

  • RFI (Request for Information): Seeking more info from sellers.

  • RFP (Request for Proposal): Complex request based on a SOW.

• Contract Types:

  • Cost-Reimbursable: Buyer pays actual costs plus a fee. Includes CPFF (Fixed Fee), CPIF (Incentive Fee), and CPAF (Award Fee).

  • Fixed-Price: Total price is set. Includes FFP (Firm Fixed Price), FPIF (Incentive Fee), and FPEPA (Economic Price Adjustment).

  • Time and Materials (T&M): Hybrid of cost-reimbursable and fixed-price; often used for staff augmentation.

• "Agile" Contract Variations:

  • Multi-tiered Structure: Master Service Agreement (fixed) + Schedule of Services (variable).

  • Fixed-Price Increments: Decomposes scope into smaller fixed-price micro-deliverables (user stories).

  • Dynamic Scope Option: Allows varying scope at specific points to fund innovation.

Project Budgeting and Cost Estimation

• Predictive Budgeting:

  • Cost baseline includes contingencies for identified risks.

  • BAC (Budget at Completion): The sum of all budgets in the baseline.

  • Funding Limit Reconciliation: Aligning project expenditures with organizational funding limits.

• Estimation Ranges:

  • Rough Order of Magnitude (ROM): $-25\%$ to $+75\%$.

  • Definitive Estimate: $-5\%$ to $+10\%$.

• Adaptive Budgeting:

  • Burn Rate: Calculation based on the number of team members and their rates over a period.

  • Cost per Point: $\frac{\sum(\text{Loaded team salaries for period } n)}{\text{Points completed in interval } n}$

  • Forecast Budget: $(\text{Cost per point} \times \text{Total point value}) + \text{Other expenses}$

Project Risk Management Strategy

• Risk vs. Issue: A risk is an uncertain event with a "trigger condition." If it occurs, it becomes an issue.

• Risk Appetite:

  • Risk-Seeking: Willing to take high risks for rewards.

  • Risk-Neutral: Balanced approach.

  • Risk-Averse: Avoiding risks whenever possible.

• Risk Identification Tools: RBS (Risk Breakdown Structure), SWOT Analysis, Delphi Technique, Monte Carlo Simulation (computerized modeling).

• Qualitative Assessment: Performing subjective ranking using a Probability and Impact Matrix to assign a Risk Score ($P \times I$).

• Quantitative Assessment:

  • Sensitivity Analysis: Determining which risks have the most potential impact (visualized with a Tornado Diagram).

  • Decision Tree Analysis: Visual tool to evaluate outcomes of different paths.

  • Expected Monetary Value (EMV): Calculated by multiplying the monetary value of an outcome by its probability.

• Risk Response Strategies:

  • For Threats: Escalate, Avoid, Mitigate, Transfer, Accept.

  • For Opportunities: Escalate, Exploit, Share, Enhance, Accept.

Quality Management and Compliance

• Quality: The degree to which inherent characteristics fulfill requirements.

• Cost of Quality (CoQ):

  • Prevention Costs: Money spent to avoid failure (training, documentation).

  • Appraisal Costs: Money spent assessing quality (testing, inspections).

  • Internal Failure Costs: Rework and scrap found before delivery.

  • External Failure Costs: Liabilities, warranty work, and lost business found after delivery.

• Quality Standards:

  • De Facto: Widely accepted through use (like slang).

  • De Jure: Mandated by law or recognized experts (like dictionary words).

• Continuous Improvement Frameworks:

  • Six Sigma (DMAIC): Define, Measure, Analyze, Improve, Control.

  • Kaizen (PDCA): Plan, Do, Check, Act (Shewhart/Deming cycle).

Integrating Plans and Managing Change

• Integrated Project Management Plan: The result of consolidating all planning knowledge areas. This task belongs specifically to the Project Manager and cannot be delegated.

• Change Management Plan: Defines the process for handling change, including the Change Control Board (CCB) authority and the use of a Change Log to track actions.

• Complexity Management Strategies:

  • Systems-Based: Decoupling (disconnecting parts) and Simulation.

  • Reframe the Problem: Diversity (different perspectives) and Balance.

  • Process-Based: Iterate, Engage stakeholders, and Fail Safe.

• Fail Fast: Adopt mindsets that prioritize collaboration and resilience over rigid control to manage complex projects.