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Project Planning This article is an addendum to the current one listed on Wikipedia.

Table of Contents

1.	Planning an IT project 1.1	Developing the scope statement 1.2	Creating the work breakdown structure 1.3	Assigning resources to activities 1.4	Determining the task dependencies 1.5	Determining the critical path 1.6	Creating the project plan 2.	Project planning activities 2.1	Estimating resource requirements 2.2	Determining the cost estimates 2.3	Performing a risk assessment 2.4	Identifying critical success factors 2.5	Preparing the project charter 2.6	Gaining formal approval from stakeholders 2.7	Launching the project 3.	Roles involved with project planning 4.	Project planning tools 5.	See also 6.	References 13.1 Footnotes 13.2	General references

Planning an IT project

Developing the scope statement The scope statement defines what is to be accomplished in the project. It contains the project boundaries and scope control. The scope statement typically includes the following: objectives, acceptance requirements, project boundaries, requirements and deliverables, constraints, assumptions, project risks, assumptions, milestones, WBS, estimated budget, and approval requirements (1).

Creating the work breakdown structure To identify the work of the project a hierarchical decomposition or Work Breakdown Structure (WBS) is created. A WBS is the process of breaking a project down into a series of smaller tasks. The WBS defines the work down to a sufficient level of detail so that estimates of time, cost, and resource requirements can be made.

Assigning resources to activities Once resources have been defined for the project, the next step is to assign them to specific activities. Resource assignment involves the relationship that exists between specific tasks and the resources needed to complete them. More than one resource can be assigned to a task (2). Resources include both people and equipment.

Determining the task dependencies One of the most critical steps in project scheduling is to determine the task dependencies. This method involves setting the order in which tasks should be performed as well as identifying the relationships that exist between those tasks (3). By understanding task dependencies, the project manager is able to identify tasks that have the potential to affect the project schedule. There are four types of task dependencies: •	Finish-to-start – Predecessor must finish before Successor can start. •	Start-to-start – Predecessor must start before Successor can start. •	Finish-to-finish – Predecessor must finish before Successor can finish. •	Start-to-finish – Predecessor must start before Successor can finish. The most common dependency relationship is a finish-to-start relationship. The least common one is the start-to-finish relationship (4).

Determining the critical path Once the task dependencies have been identified and adjusted for the available resources, the critical path method (CPM) can be determined. This gives the project manager the ability to reassign resources or renegotiate project constraints (5). Below is a diagram created in Microsoft Project depicting the different paths, the number of days for each, and the critical path (in red): •	Path 1:		A-G-I		Length = 2+6+7 = 15 days •	Path 2:		A-D-F-H-I	Length = 2+4+1+4+7 = 18 days •	Path 3:		B-E-G-I		Length = 2+5+6+7 = 20 days •	Path 4:		C-F-H-I		Length = 1+1+4+7 = 13 days Since the critical path is the longest path through the diagram, Path 3, B-E-G-I, is the critical path for this project which is 20 days. The shortest possible time it will take to complete this project is 20 days which is the critical path. It is essential for project managers to understand critical path analysis as it identifies tasks which must be completed in order for the entire project to stay on schedule.

Creating the project plan Once all of the tasks, resources, and dependencies, have been determined, the project plan including a detailed project schedule is created. A Gantt chart is commonly used in representing a project schedule. The availability of project management tools make creating a project plan less challenging (5).

Project planning activities

Activity planning is an essential part of project management. Some of the steps involved in this process include: estimating resource requirements and cost estimates, performing a risk assessment, identifying critical success factors, preparing the project charter, gaining stakeholder approval, and launching the project.

Estimating resource requirements After defining project activities and preparing high-level requirements, resource requirements are estimated. Resources are the means used to achieve project objectives (6). Types of resources include the following: •	People – This includes all positions needed to staff the project. •	Facilities – Planning rooms, conference rooms, and presentation rooms are a few examples of facilities that projects require. •	Equipment – Equipment can include computer hardware, etc. •	Money – Project expenses typically include travel, rooms, meals, and supplies. •	Materials – Parts to be included in the manufacturing of products.

Determining the cost estimates After estimating task duration and resource requirements, the cost of the project can be established. Cost estimates for a project generally include the following: hardware (computers, servers) and software (licensed) costs, development (research) costs, vendor costs, consulting costs, and training costs. Indirect costs such as facility costs and maintenance costs are also taken into consideration.

Performing a risk assessment A risk assessment measures the likelihood and impact of a risk occurring. There are two major factors in assessing risk. The first one is the probability that the risk event will occur. The second part of risk assessment is the impact the risk will have on the project. In performing a risk assessment, project managers often rank each risk on a scale of 1 to 5 according to the severity of its impact on the project (7).

Identifying critical success factors Critical success factors are vital objectives that must be achieved for the project to have a high chance for success. These factors affect stakeholders and are essential for business success. More specifically, they provide a basis for senior management to authorize the resources to do detailed planning. Some common critical success factors are a proactive and very supportive project sponsor, full-time involvement of a business representative, realistic budgets and schedules, realistic expectations, and a core team with the right skill set (7).

Preparing the project charter The project charter is similar to a scope agreement, a document of understanding, or a statement of work. However, it is much more detailed. The project charter can be anywhere from 20 to 30 pages in length (7). The project charter formally authorizes the project and is presented to the project sponsor for approval.

Gaining formal approval from stakeholders Before a project can be implemented, the project manager must gain formal approval from all key stakeholders. Participants in the approval process may include all of the following: the project team, the project manager, resource managers, function managers, the customer, and senior management. Gaining formal approval can sometimes be an arduous task. Stakeholders want to be ensured that the project will deliver a high rate of return on their investment.

Launching the project Once the project has been planned, resources assigned, and training has been scheduled, the project is launched. This is usually accomplished with an orientation meeting for the entire team (the core team members as well as the extended team members). Project launching can also include newsletters, e-mails, or Web pages. These communication channels keep stakeholders and interested parties up-to-date on the project’s progress (8).

Roles involved with project planning

Many individuals are involved in planning a project. Each of them has a significant contribution to the success and realization of the project plan (9). Listed below are several roles involved with project planning:

•	Project manager The project manager is responsible for the overall management of the project from start to finish. He or she participates in drafting the scope statement, project charter, status reports, and other deliverables essential to the project. Project managers need to have good communications skills in addition to being knowledgeable about the different deliverables that go into making a project successful. •	Project team Project team members are responsible executing tasks and producing deliverables in the project plan as directed by the project manager (9). A project team may consist of several members such as managers, programmers, and designers. All of these participants usually remain on the project team from the beginning to the end of the project. •	Executive/Project sponsor The executive or project sponsor is the ultimate decision-maker for the project. He or she is responsible for securing funding, approving resources, resolving conflicts, and providing support for the project manager. The project sponsor holds the most important role in project planning and has the power to delegate responsibilities to other team members (9). •	Customers Customers play a critical role in planning the project. They can serve in any capacity of an organization. Customers define and validate project requirements and are usually involved in the testing process. Since meeting the needs of the customer is the main objective, the quality of all deliverables should be based on their necessities (9). •	Stakeholders Stakeholders are all those individuals or groups within or outside the organization who can impact the outcome of the project. Internal stakeholders might consist of customers, team members, sponsors, and administrators. External stakeholders would be comprised of vendors, investors, and other similarly affected groups (9).

Project planning tools

Project planning tools are often used to document requirements, develop budgets, and project scheduling (10). There are many software tools that a project manager can use when planning a project. Some of them include: •	Work Breakdown Structure (WBS) •	Gantt charts •	Calendars Project software like Microsoft Project and Microsoft Excel is also used for project planning. However, Microsoft Project is the preferred choice among project managers. According to a 2009 survey conducted by Cognitive Technologies on project management tools in use by IT companies, 98 percent of companies use Microsoft Project and 88 percent use Excel for project scheduling and budgeting.

See also

•	Project management •	Cost overrun •	Project stakeholders •	Project management software •	Dependency Structure Matrix •	Project Management Institute •	Kitchen sink syndrome •	Megaproject •	PRINCE2 •	Enterprise resource planning •	Project slippage •	Risk •	Risk management •	Risk assessment •	Risk aversion •	Risk aversion •	Risk management

References

Footnotes 1.	Ritter, D. (2008, December 23). Developing a Project Scope Document. Project Management. Retrieved May 27, 2012, from http://certifedpmp.wordpress.com/2008/12/23/developing-a-project-scope-document/ 2.	Goal: Assign resources to tasks. (2012). Microsoft Office. Retrieved May 27, 2012, from http://office.microsoft.com/en-us/project-help/goal-assign-resources-to-tasks-HA001097308.aspx 3.	6 factors that affect how Project calculates time. (2012). Microsoft Office. Retrieved May 27,2012, from http://office.microsoft.com/en-us/project-help/6-factors-that-affect-how-project-calculates-time-HA001207485.aspx 4.	Understanding Task Dependencies in Project Management. (2012). Project Insight. Retrieved May 27, 2012, from http://www.projectinsight.net/project-management-basics/task-dependencies.aspx 5.	Atre, S. & Moss, L.T. (2003). Step 3: Project Planning. In Business Intelligence Roadmap: The Complete Project Lifecycle for Decision-Support Applications (p. 96). Boston, MA: Pearson Education, Inc. 6.	Joubert, P. (2010, September 27). Resource Requirements for a Project. PeterJoubert.com. Retrieved May 31, 2012, from http://www.peterjoubert.com/resource-requirements/ 7.	Atre, S. & Moss, L.T. (2003). Step 3: Project Planning. In Business Intelligence Roadmap: The Complete Project Lifecycle for Decision-Support Applications (p. 99). Boston, MA: Pearson Education, Inc. 8.	Atre, S. & Moss, L.T. (2003). Step 3: Project Planning. In Business Intelligence Roadmap: The Complete Project Lifecycle for Decision-Support Applications (p. 100). Boston, MA: Pearson Education, Inc. 9.	5 important roles in project planning. (2010, May 22). ProjectPlan.com. Retrieved May 27, 2012, from http://blog.projectplan.com/5-important-roles-in-project-planning

General references •	Bentley, L.D. & Whitten, J.L. (2007). Project Management. In Systems Analysis & Design Methods (7th ed., pp.147-148). The McGraw-Hill Companies, Inc. •	Haughey, D. (2012). Project Planning a Step by Step Guide. Project Smart. Retrieved May 1, 2012, from http://www.projectsmart.co.uk/project-planning-step-by-step.html •	Laudon, J.P. & Laudon, K.C. (2012). Managing Projects. In Management Information Systems: Managing the Digital Firm (12th ed., pp. 529). Pearson Education, Inc. •	Project Management Infokit. (2012). JISC infoNet. Retrieved May 1, 2012, from http://www.jiscinfonet.ac.uk/infokits/project-management/managing-risks •	Richter, L. (2011, January 27). What is a Project Charter? Bright Hub. Retrieved May 1, 2012, from http://www.brighthub.com/office/project-management/articles/5161.aspx •	Schwalbe, K. (2010). Project Risk Management. In Information Technology Project Management, 6th ed., pp.436-437. Boston, Massachusetts: Course Technology Cengage Learning •	Stallsworth, E. (2011, January 30). Writing a Scope Statement. Bright Hub. Retrieved March 29, 2012, from http://www.brighthub.com/office/project-management/articles/2491.aspx •	Taylor Jr., J. (2010, April 29). Elements of a Stakeholder Communication Plan. Bright Hub. Retrieved May 29, 2012, from http://www.brighthub.com/office/project-management/articles/15148.aspx •	Vandermilt, C. (2011, January 25). Project Management and Its Impact on IT Project Success. Project Smart. Retrieved February 21, 2012, from http://www.projectsmart.co.uk/project-management-and-its-impact-on-it-project-success.html