Project Management CHAPTER 06 - The Project Plan Project Coordination

PROJECT MANAGEMENT
Purindu Jayatilake
MSc Eng (Reading), MBA, BSc (Hons) Eng, ACMA (UK), CGMA
1
CHAPTER 06 – PROJECT ACTIVITY & RISK PLANNING
Initial Project Coordination and The Project Plan
Project’s objectives must be in-line with overall mission, goals and strategy of the firm. Senior
management should clearly describe why the project is undertaken, the outline of scope and how
it will help the firm. Also, senior management must be present at the initial coordinating meeting
(project launch meeting) since without a clear beginning, later progress can easily go wrong.
First the project scope should be defined by the lead of the launch meeting which is necessary for
effective planning. Extensive discussions are required for unique projects.
Major risks the project would face should also be discussed (Identified at project selection
process).
The risk management plan for the project must be started at the launch meeting so that further risk
identification can be extended to include the technology of the process/product, the project’s
schedule, resource base, and a myriad of other risks facing the project but not really identifiable
until the project plan has begun to take form. One of the outcomes of the project planning process
will be the formulation of the project’s risk management group and the initial risk management
plan that the group develops during the process of planning the project.
It is critical to the future success of the project to take the time required to do a technically and
politically careful job of planning. In summary, the outcomes must be,
1. Technical scope is established
2. Basic areas of performance responsibility are accepted by the participants
3. Any tentative delivery dates or budgets set by the parent organization are clearly noted
4. A risk management group is created
The risk management group develops a risk management plan that includes proposed
methodologies for managing risk, the group’s budget, schedule, criteria for dealing with risk, and
required reports.
The PM generally takes responsibility for gathering the necessary approvals and assuring that any
changes incorporated into the plan at higher levels are communicated to, and approved by, the
units that have already signed off on the plan.

PROJECT MANAGEMENT
Purindu Jayatilake
MSc Eng (Reading), MBA, BSc (Hons) Eng, ACMA (UK), CGMA
2
When the planning phase of the project is completed, it is valuable to hold one additional meeting,
a post-planning review.
Outside Clients
When end customer is an external party, no changes can be done to the scope without client’s
permission. The major planning problem would be engineering/manufacturing team not being able
to deliver or not be aware what marketing has promised to the customers.
Two objections to such early participation,
1. The sales arm of the organization is trained to sell and is expected to be fully conversant
with all technical aspects of the firm’s products/services.
2. It is expensive to involve so much technical talent so early in the sales process.
When the product/service is a complex system that must be installed in a larger, more complex
system, it is appropriate to treat the sale like a project, which deserves the same kind of planning.
A potential remedy for these problems is the use of multifunctional teams, also known as
concurrent engineering.
Project Plan Elements
The PM is authorized to direct activities, spend monies (usually within preset limits) request
resources and personnel, and start the project on its way upon a series of authorizations for the
project plan.
Elements that Must Be Included in Developing a Project Plan
1. Overview
2. Objectives or Scope
3. General Approach
4. Contractual Aspects
5. Schedules
6. Resources
7. Personnel
8. Risk Management Plans
9. Evaluation Methods
Once this basic plan is fully developed and approved, it is disseminated to all interested parties.