Welcome

CVEN 9731 – Project Management Framework

Dr Ali Kashani
ali.kashani@unsw.edu.au

Lecture 3
 Lecture 3 – Project Planning 2

Learning Objectives
 Learn how to analyse and manage the risks
 Learn how to develop Work Breakdown Structure (WBS)
 Learn how to develop Resource Management Plan

© Dr Ali Kashani
 Identifying risks
Think about what can go possibly wrong! Meet with the team and ask experts before
diving into the project and ask how to deal with it.
 Known unknowns (the risks you can predict)
 Weather impact
 Unavailable resources or delayed recruitment
 A technology that may not work
 Decision making delays because of time zone differences
 Miscommunications and language barriers within the team
 Lack of effective teamwork or conflicts
 Lack of details of how the work needs to be done and inaccurate definition of
deliverables
 What else?
Identifying risks

 Unknown unknowns (risks you cannot predict –

unforeseeable events)
 COVID-19
 War
 Terrorist attacks
 Contingency budget and time can help to relieve the
pressure caused by these risks
 But how much?
 Normally a percentage based on the past experience
(between 5% to 20%)
Common Project Risks

 Cost: Escalation of project costs due to poor

cost estimating accuracy and scope creep.
 Schedule: stretching timeline for that will take
longer than expected which delay the receipt of
project benefits, increase costs and may cause
loss of competitive advantage.
 Performance: failing in delivering the
objectives due to poor performance or
management
Other Project Risks

 Governance risk relates to board and management performance with regard to

ethics, community stewardship, and company reputation.
 Strategic risks result from errors in strategy, such as choosing a technology that can’t
be made to work.
 Operational risk includes risks from poor implementation and process problems such
as procurement, production, and distribution.
 Market risks include competition, foreign exchange, commodity markets, and interest
rate risk, as well as liquidity and credit risks.
 Legal risks arise from legal and regulatory obligations, including contract risks and
litigation brought against the organization.
 Risks associated with external hazards, including storms, floods, and earthquakes;
vandalism, sabotage, and terrorism; labour strikes; and civil unrest

Reference: https://project-management.com/types-of-risk-in-project-management/
 Risk
Information
Risk Score:

Sheet

Ref: https://www.mindtools.com/pages/article/newPPM_78.htm
Risk Score
Quantitative Risk Analysis

Failure Mode and Effect Analysis (FMEA)

1. List ways a project can fail

2. Evaluate severity (10 point scale)
3. Estimate likelihood (10 point scale)
4. Estimate the inability to detect (10 point scale)
5. Find the risk priority number (RPN) (RPN =SxLxD)
6. Consider ways to reduce the S, L, and D for each cause of failure
Failure Mode and Effect Analysis (FMEA)

Inability
Identify the risks associated with completion of your degree at
UNSW (your project). Apply FMEA method and calculate RPN.
What was the risk with the highest RPN?

ⓘ Start presenting to display the poll results on this slide.

Risk Management

Ref: https://www.mitre.org/publications/systems-engineering-guide/acquisition-systems-engineering/risk-management/risk-impact-assessment-and-prioritization
Risk responses

 Accept the risk and the consequences (possible for low-score risks)
 Avoid the risk (e.g. change the scope)
 Mitigate the risk (i.e. taking steps to reduce the remaining risk score)
 Transfer risk (i.e. giving the risk responsibility to someone else e.g. insurance)
 Set-up contingency time and budget for unknown unknowns
Important notes:
 The response should be adequate to the risk score (no exaggeration – no carelessness).
 Review and keep the Risk Management Plan up to date as the project progresses.
 Risk Register

 All Project Risks must be identified and documented

 If the severity and impact of any risks are high then the project may not go ahead
unless mitigation action can substantially reduce the likelihood and impacts of the risk

ID Date raised Risk description Likelihood of Impact if Severity Owner Mitigating action Contingent action Progress on actions
the risk the risk Rating based Person who Actions to mitigate the risk Action to be taken if the risk
occurring occurs on impact & will manage e.g. reduce the likelihood. happens.
likelihood. the risk.
1[enter date] Project purpose Medium High High Project Complete a business case if not Escalate to the Project Board Business case re-written
and need is not Sponsor already provided and ensure with an assessment of the risk with clear deliverables and
well-defined. purpose is well defined on of runaway costs/never- submitted to the project
Project Charter. ending project. board for approval.
2[enter date] Project design and Low High High Project Define the scope in detail via Document assumptions made Design workshops
deliverable Sponsor design workshops with input and associated risks. Request scheduled.
definition is from subject matter experts. high risk items that are ill-
incomplete. defined are removed from
scope.
Project Scope Statement

 Having a Project Scope Statement at the beginning helps avoiding Scope Creep
(additional unexpected deliverables during the project)
 It reminds stakeholders what was agreed upon

Project Scope Statement includes:

 Goals and Objectives  Success Criteria

 Within Scope  Assumptions
 Out of Scope  Risks
 Deliverables  Constraints
Project Charter

Project Charter authorises the project initiation and project manager and includes:
 Project Name
 Purpose (Goal and Objectives)
 High-level project description (or Executive Summary – no details)
 List of stakeholders
 Project Manager name, responsibilities and authorities
 Deliverables, milestones and timeline
 Rough overall budget
 Formal declaration of Sponsors' approval of the project
Project phases
Project Plan

A Project Plan consists of all the works needs to be done to achieve project deliverables
with a schedule, budget and resources in addition to risk and management plans
A Project Plan usually consists of:
 Work Breakdown Structure (WBS)
 Resource Management Plan
 Risk Management Plan
 Change Management Plan
 Procurement Plan
Work Breakdown Structure (WBS)

 A work breakdown structure

element may be a product, data,
a service, or any combination.
 A WBS also provides the
necessary framework for detailed
cost estimating, control and
guidance for scheduling.
 Each Deliverables (or Summary
Tasks) are broke down to Work
Packages (WP) and each WP
may consists of a few smaller
tasks
 Work Breakdown Structure (WBS)

 Facilitates evaluation of cost, time, and technical

performance of the organization on a project.
 Provides management with information
appropriate to each organizational level.
 Breakdown structure which assigns project
responsibilities to organizational units and
individuals.
 Helps PM plan, schedule, and budget.
 Defines communication channels and assists in
coordinating the various project elements.

Ref: https://www.engineeringmanagement.info/2018/08/an-introduction-to-work-breakdown_24.html
How to create WBS

1. Meet with your team and brainstorm WBS

2. Start from top to bottom (summary tasks/deliverables to individual work packages)
3. Identify task dependencies (one task depends on completion of one or a few other
tasks)
4. Review WBS to identify any missing tasks necessary to achieve project deliverables
5. Monitor and revise WBS as the project continues
How to determine breakdowns?

 Required resources (time and budget) can be estimated.

 Measurable status (Started, In-progress, or completed).
 Task duration is shorter than the reporting period.
 Manageable details.
Work Package document
This document is prepared by PM

WBS: Hierarchy No. of WP in WBS e.g. 1.1. or 1.2.4

Work Package: The name of the WP
Package Owner: The team member responsible for this WP
Owner Organization: The Package Owner works for this organisation or department
Participants: The team members involved in this WP
Description:
It depends on the experience of the team members and the complexity of the task. It can be some bullet points or detailed
description and instruction.

Completion State: How do you know it is completed? And when should be completed (timeline)

Reference Docs: Any extra useful information or description?

Examples of building-related work packages

 Mobilisation activities
 obtaining permits, liability, and builder risk insurance
 field office and utilities e.g. electricity, portable toilets and drinking water
 temporary roads, housing for employees and support personnel, or other
temporary facilities
 recruitment and training
 specialised equipment
 Engineering & procurement activities
 drawings: preparation and approval
 materials management: order and delivery
Examples of building-related work packages (cont’d)

 Owner activities
 release of work areas
 inspections
 relocation of existing facilities
 land acquisition
 government agency approvals
Examples of building-related work packages (cont’d)

 Construction activities
 foundation works
 superstructure works
 enclosure works
 rough-in works
 HVAC
 Completion/start-up activities
 final clean up
 start-up of HVAC or other equipment
 final adjusting and balancing of various systems
Resource Management plan

 Roles
 Responsibilities
 Reporting Structure
 Skills
 Staffing
Responsibilities matrix (RACI)

A matrix to assign responsibilities for each task, milestone, or decision on a project.

Responsible: The team member(s) who are responsible for performing the task
Accountable: The team member(s) who makes/approves decision and delegate the
tasks. They review the task or deliverable before it is deemed complete.
Consulted: The team member(s) who are consulted for decision making but not
accountable
Informed: The team member(s) responsible to be informed about the project progress
RACI matrix example

Ref: https://www.teamgantt.com/blog/raci-chart-definition-tips-and-example
What are the benefits of identifying and monitoring Free Float
and Total Float for the PM?

ⓘ Start presenting to display the poll results on this slide.

Project organisation chart (hierarchy chart)

 It shows team member and their roles

and authority in the organisation.
 It will be used for reporting structure.
 It will be used for escalating a request,
decision or issue to higher levels in the
organisation.
 It can include the third parties and
contract relationships.
Skills (competency) matrix

A skills matrix visualizes the skills that are required, the skills that are available in the
team and the skills that the team is missing.
1. Define the relevant skills for the project
2. Assess team members on their current skill levels (e.g. limited, basics,
intermediate, advanced)
3. Determine a person’s interest in working on the tasks they’ve been proposed
Skills matrix example

Ref: https://www.analyticsinhr.com/blog/create-skills-matrix-competency-matrix/#:~:text=What%20is%20a%20skills%20matrix,and%20competencies%20in%20a%20team.
Skills matrix example

Ref: https://www.ag5.com/free-skills-matrix-templates/
Staffing plan

 Identify sources for resources (in-house, outsource

or contractor)
 When and where the resource are required
 Training and upskilling requirement
 Resource-related processes (e.g. HR process,
employment and contract processes)
 Reporting structure
For estimating time and costs for work packages, which will be
estimated first?

ⓘ Start presenting to display the poll results on this slide.

Estimating time and costs

 Time to finish each WP will affect both costs

(staff/labour hours) and project schedule.
 Some costs are not time-based such as materials,
equipment and infrastructure
 ± 10% estimates are accurate enough for planning.
 Estimation can be based on similar works done
before (parametric model).
 A new project can be estimated by consulting the
experts or vendors
Delphi Technique

Delphi Technique seeks a group of experts’ opinions about time, budget and risks in
doing a particular task.
The technique is an iterative process consisting of a few steps:
1. Finding an expert team: A group of people with knowledge and experience about the
work to be done (e.g. project team members, project customers, or other internal or
external experts)
2. First round of questions: asking about a completion time or budget estimate using
questionnaire, survey or interview.
3. Consecutive round of questions: share anonymous responses of the first round
with the panel members and ask to revisit their responses. You may repeat this step a
few times but don’t overdo it.
4. Final estimate: Find an average or median of the results as your final estimate.
How to choose best estimate?
Probability of commute time to work
Which estimate will you choose for the commute time?

ⓘ Start presenting to display the poll results on this slide.

How to choose best estimate?

 A higher estimate (pessimistic) increase

the chance of on-time project completion
but might be opposed by the project
owner due to higher project costs.
 A lower estimate (optimistic) causes extra
pressure on PM and the team and may
end up in project failure.
 Choose the estimate with acceptable
probability of success (realistic)!
Which date-time (Sydney time) you would prefer for Quiz 1 in
Week 4 (next week)?
quiz time:15 minutes
15 Multiple choices and True/False via Moodle
Week 1 to 3 contents (lectures and workshops)

ⓘ Start presenting to display the poll results on this slide.

References

1. Some contents of these slides were adapted from “Project Management Foundation”
course by Bonnie Biafore
End of Lecture 3