Project Planning

Submitted By:
Adnan Qutubuddin

CMMI Report

Project Planning

Abstract
The water corporation required an ERP solution which could replace their existing system modules such as General Ledger (GL), Stores Management Information System (SMIS) and Corporate Costing System called WORKS. Project Planning is required to carry out project. Two modules are introduced, one is Finance Management System which consist both the functionality of GL and WORKS and the other is new Stores Management Information System. Project planning is done through the CMMI perspective considering all the specific practices.

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Table of Contents
Preface.....................................................................................................................................II Acknowledgement...................................................................................................................III Abstract...................................................................................................................................V I 1. Introduction..........................................................................................................................1 2. Research Methodology........................................................................................................2 3. Case Study...........................................................................................................................3 4. Proposed Solution................................................................................................................4 4.1 Establish Estimates.......................................................................................................4 4.1.1 Estimate Scope of the Project...............................................................................4 4.1.2 Establish Estimates of Work Product and Task Attributes....................................4 4.1.3 Define Project Life Cycle.......................................................................................5 4.1.4 Determine Estimates of Effort and Cost................................................................6 4.2 Develop a Project Plan..................................................................................................7 4.2.1 Establish the Budget and Schedule......................................................................7 4.2.2 Identify Project Risks.............................................................................................7 4.2.3 Plan for Data Management...................................................................................7 4.2.4 Plan for Project Resources...................................................................................8 4.2.5 Plan for Needed Knowledge and Skills.................................................................8 4.2.6 Plan Stakeholder Involvement..............................................................................8 4.2.7 Establish the Project Plan.....................................................................................8 4.3 Obtain Commitment to the Plan....................................................................................9 4.3.1 Review Plans that Affect the Project.....................................................................9 4.3.2 Reconcile Work and Resource Levels..................................................................9 4.3.3 Obtain Plan Commitment......................................................................................9 5. Conclusion...........................................................................................................................9 References.............................................................................................................................10 Appendix A.............................................................................................................................11

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List of Figures
Figure 1 Work Breakdown Structure......................................................................................2 Figure 2 Project Life Cycle Phases........................................................................................5 Figure 3 RAD Model...............................................................................................................6 Figure 4 Schedule (Gantt Chart)............................................................................................6 Figure 5 Stakeholder Involvement Plan.................................................................................8

List of Tables
Table 1 Practice-to-Goal Relationship...................................................................................1 Table 2 Task Attributes..........................................................................................................4

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Project Planning

1. Introduction
Project Planning is a project management process area at maturity level 2. The key to a successful project is in the planning. Creating a project plan is the first thing we should do when undertaking any kind of project. Often project planning is ignored in favor of getting on with the work. However, many people fail to realize the value of a project plan in saving time, money and many problems. Once established and agreed, the plan becomes what is known as the baseline. Progress will be measured against the baseline throughout the life of the project. The Project Planning process area involves the following: Developing the project plan Interacting with stakeholders appropriately Getting commitment to the plan Maintaining the plan
[1]

Table 1. Practice-to-Goal Relationship

[1]

Continuous Representation SG 1 Establish Estimates SP 1.1-1 Estimate the Scope of the Project SP 1.2-1 Establish Estimates of Work Product and Task Attributes SP 1.3-1 Define Project Life Cycle SP 1.4-1 Determine Estimates of Effort and Cost SG 2 Develop a Project Plan SP 2.1-1 Establish the Budget and Schedule SP 2.2-1 Identify Project Risks SP 2.3-1 Plan for Data Management SP 2.4-1 Plan for Project Resources SP 2.5-1 Plan for Needed Knowledge and Skills

Staged Representation SG 1 Establish Estimates SP 1.1-1 Estimate the Scope of the Project SP 1.2-1 Establish Estimates of Work Product and Task Attributes SP 1.3-1 Define Project Life Cycle SP 1.4-1 Determine Estimates of Effort and Cost SG 2 Develop a Project Plan SP 2.1-1Establish the Budget and Schedule SP 2.2-1 Identify Project Risks SP 2.3-1Plan for Data Management SP 2.4-1Plan for Project Resources SP 2.5-1 Plan for Needed Knowledge and Skills

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Project Planning

Continuous Representation SP 2.6-1 Plan Stakeholder Involvement SP 2.7-1 Establish the Project Plan SG 3 Obtain Commitment to the Plan SP 3.1-1 Review Plans that Affect the Project SP 3.2-1 Reconcile Work and Resource Levels SP 3.3-1 Obtain Plan Commitment GG 1 Achieve Specific Goals GP 1.1Perform Base Practices GG 2 Institutionalize a Managed Process GP 2.1 Establish an Organizational Policy GP 2.2 Plan the Process GP 2.3 Provide Resources GP 2.4 Assign Responsibility GP 2.5 Train People GP 2.6 Manage Configurations GP 2. 7 Identify and Involve Relevant Stakeholders GP 2. 8 Monitor and Control the Process GP 2. 9 Objectively Evaluate Adherence GP 2. 10 Review Status with Higher Level Management

Staged Representation SP 2.6-1 Plan Stakeholder Involvement SP 2.7-1 Establish the Project Plan SG 3 Obtain Commitment to the Plan SP 3.1-1Review Plans that Affect the Project SP 3.2-1Reconcile Work and Resource Levels SP 3.3-1Obtain Plan Commitment

GG 2 Institutionalize a Managed Process GP 2.1 Establish an Organizational Policy GP 2.2 Plan the Process GP 2.3 Provide Resources GP 2.4 Assign Responsibility GP 2.5 Train People GP 2.6 Manage Configurations GP 2.7 Identify and Involve Relevant Stakeholders GP 2.8 Monitor and Control the Process GP 2.9 Objectively Evaluate Adherence GP 2.10 Review Status with Higher Level Management

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Project Planning

Continuous Representation GG 3 Institutionalize a Defined Process GP 3.1 Establish a Defined Process GP 3.2 Collect Improvement Information GG 4 Institutionalize a Quantitatively Managed Process GP 4 1 Establish Quantitative Objectives for the Process GP 4. 2 Stabilize Subprocess Performance GG 5 Institutionalize an Optimizing Process GP 5.1 Ensure Continuous Process Improvement GP 5.2 Correct Root Causes of Problems

Staged Representation GG 3 Institutionalize a Defined Process GP 3.1 Establish a Defined Process GP 3.2 Collect Improvement Information

2. Research Methodology
Books, Lectures and World Wide Web will be used to propose the solution.

3. Case Study

[3]

The Water Corporation is wholly owned government organization. Its function is to provide water, wastewater, drainage and irrigation services across an entire state in Australia. It has annual revenue

CMMI Report of over $900 million and capital expenditure over $465 million.

Project Planning

The Water Corporation has decided to introduce a new corporate information system. PMB's (Project Management Branch) role is to deliver engineering asset infrastructure to support the provision of water, wastewater and drainage services to the Water Corporations customers. In addition it is the Corporations Centre of Expertise for Project Management and the Administration of Works Contracts.

3.1 Legacy Management Systems

PMB carries out its operations via a number of information systems. The GCS (General Corporate Systems), though not specifically orientated to project management functions is being used by PMB in carrying out its operations. The GCS system consists of: General Ledger (GL) -the overall accounting database for the Corporation Corporate Costing System, called WORKS, and associated with it the IRS (Internal Recharge System) Stores Management Information System (SMIS) which was used for purchasing and supply Capital Works Planning System (CWP), which tracked costs against estimates and cash flows for specific projects Numerous minor systems, such as Electronic Asset Registers, Human Resource Systems (HURMIS) and various paper based systems such as the Water Corporation Policy Library and its Supply Manual.

PMB had also developed a number of internal branch systems for both its own operating efficiency and as part of its role as the centre of expertise for project management within the Water Corporation. It has a full quality system certified to ISO 9001 by Bureau Veritas with associated Quality Manual; Operating Procedures; Work Instructions and Standard Forms and Records. PMB also has its own small electronic Project Management system called IPACS (Interim Project and Contract System). It have its own database and reporting system, and is provided with downloaded data from the WORKS system and CWP. It is able to integrate information relating to project and contract schedules and payments, keep track of all PMB projects and generate branch KPI's (Key Performance Indicators).

3.2 Replacement Need

The Water Corporation relies for its operations upon a host of mainframe based systems, which is basic, inflexible, not user friendly, has very little integration, decreasing functionality and ever increasing maintenance requirements. The Corporate Information Management Strategy found that there are only two solutions i.e. repair or replace. The Corporation has also adopted Windows NT and MS Office, which allows for the introduction of a corporate Intranet and E-mail. This combination and the potential it unlocked put paid to any thought of repair. Replacement of all or most of the corporate mainframe systems is required. After considerable study and with wide internal consultations, it is determined that the vital requirement for this new system is the replacement of the General Ledger, WORKS and the Stores Management Information System. With the Water Corporation's capital budget amounting to almost a quarter of its operating expenses, any savings in this area, by improved project management, however slight, would have a considerable impact on the organization as a whole.

4. Proposed Solution

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Project Planning

General Ledger and Works is replaced by Finance Management System and Stores Management Information System with a new Stores Management Information System. Specific practices will be followed in order to achieve a good project plan. Planning is done on the basis of assumptions.

4.1 Establish Estimates

4.1.1 Estimate the Scope of the Project
Integrating the Finance Management System and Stores Management Inforamtion System into GCS system.

General Corporate System

Finance Management System

Stores Management Information System

General Ledger

Balance Sheet

Cash/Bank Book

Tax Accounts

Purchase Orders

Inventory Control

Supplier Scheduling

Figure 1. Work Breakdown Structure

4.1.2 Establish Estimates of Work Product and Task Attributes

System would be distributed according to the departments and would use Oracle as database tool and .Net Framework for development. The system would be accessible on intranet as well as on Internet.
Table 2. Task Attributes

Task Cash/Bank Book General Ledger Balance Sheet Tax Accounts Purchase Orders Inventory Control Supplier Scheduling

Lines of code 1700 1350 1000 500 1400 800 650 1 0.6 0.4 0.3 0.5 0.3 0.2

Volume of Data (GB)

4.1.3 Define Project Life Cycle

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Project Planning

Sequential project phases or activities use from the beginning to end of the project for accomplishing its objective and fulfilling all the consideration according to the requirement is refers as a project life cycle. For the success of project it is essential to categorize the activities into phases so that each phase will work in efficient manner. General Ledger, Book Keeping, Balance Sheet And Tax Account which are the part of financial management system will be implemented according to the project life cycle phases so that the efficient result can be obtain in a committed deliverable date. Same strategy will be used for the store management module and its component.

Figure 2. Project Life Cycle Phases

[4]

RAD model would be used as a software development process because it caters dynamic requirements and gives room for prototyping which would be very useful for future perspectives. RAD uses the component based approach to progress and our General corporate system has two modules, financial management system and store management system and they both have different components to build up. So the component based approach of RAD suits our condition as compare to the other models like waterfall, Agile, spiral etc. From the RAD approach two teams, development team 1 and development team 2 are working independently on financial management and store management module respectively to get the job done under the estimated project schedule and budget. RAD model has following phases Business Modeling Data Modeling Process Modeling Application Generation Testing and Turn over

CMMI Report

Project Planning

Development Team 1 Working on Finance Management System

Development Team 2 Working on Store Management Information System Business Modeling

Business Modeling

Data Modeling

Data Modeling

Process Modeling

Process Modeling

Application Generation

Application Generation

Testing & Turnover Testing & Turnover

Figure 3. RAD Model

Business Modeling: Flow of useful data among sub module component like what data is required for financial and store management, who will going to receive it, who will going to approve it what data should contain derives in business modeling. Data Modeling: As shown in figure data collected from the business modeling filter out into set of data object that are required to support the business. Attributes of the data object is figure out and the relation between data object and attributes is defined. Process Modeling: The Data object and Attributes defined in data modeling will go under the process to execute a business function. Descriptions of every transaction are recorded. Application Generation: Tools can be used to build up the application once the process modeling executed business function. Testing and Turn over: Components of both modules have been tested and verified since rapid application development uses the reuse strategy. This will minimize the over all testing time of General corporate system.

4.1.4 Determine Estimates of Effort and Cost

Software cost and estimation has never been an exact science. [2] The complexity weighting factor is supposed to be average. Intermediate COCOMO model is used for estimation in semi detached mode. Coefficient

i = 3.0 and i = 1.12

E = i (KLOC) i x EAF .....................................[2] EAF = Software Reliability x Size of App. Database EAF = 1.15 x 1.16 EAF = 1.334 E = 3 (7.4) 1.12 x 1.334 E = 38 pm

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Project Planning

D = cb E b ........................................................[2] D = 2.5 (38) 0.35 D = 8.9 months N = E / D .............................................................[2] N = 38 / 8.9 N = 4 people Rate = Total of 4 people Salary x D Rate = 78,000 x 8.9 Rate = 69,4200 Approx. Cost = 38 x Rate Approx. Cost = 38 x 69,4200 Approx. Cost = 26,379,600

4.2 Develop a Project Plan

4.2.1 Establish the Budget and Schedule
From the above estimated Development Time we can schedule the tasks. Scheduling is done on the basis of time required on each component within a module.

Figure 4. Schedule (Gantt-Chart)

4.2.2 Identify Project Risks

Risk management is completely another topic in project planning. It requires profound analysis considering all risks i.e. from the smallest to the biggest and must be properly documented. Here the high level details for the risks are as follows: Dependencies on other modules if any Integration may require a lot of time Wrong entries may produce huge loss in terms of accounts

4.2.3 Plan for Data Management

As the system exists data would already be there. We may need: Requirements that must be documented Configuration mangement Report formats (proposed by clients or by us) Agreements

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Project Planning

Any other official materials

4.2.4 Plan for Project Resources

Resources needed for this project: 4 persons At least 4 computers Oracle Database and Tools Microsoft .Net Tools Customer Coordiantion Testing Tools Data

4.2.5 Plan for Needed Knowledge and Skills

Skills and knowledge that are needed to develop the project: Understanding of GCS System Finance Expert may be hired Understanding of Oracle Database and Tools and Microsoft .Net Tools

4.2.6 Plan Stakeholder Involvement

8 7 6 5 4 3 2 1 0 Finance Manger Project Manager Purchase Manager Sales Manager Cash/Bank Book Balance Sheets General Ledger Tax Accounts Purchase Orders Inventory Control Supplier Scheduling

Figure 5. Stakeholder Involvement Plan

4.2.7 Establish the Project Plan

A documented plan that addresses all relevant planning items is necessary to achieve the mutual understanding, commitment, and performance of individuals, groups, and organizations that must execute or support the plans. The plan generated for the project defines all aspects of the effort, tying together in a logical manner: project life-cycle considerations; technical and management tasks; budgets and schedules; milestones; data management, risk identification, resource and skill requirements; and stakeholder identification and interaction. Infrastructure descriptions include responsibility and authority relationships for project staff, management, and support organizations. [1]

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Project Planning

4.3 Obtain Commitment to the Plan

4.3.1 Review Plans that Affect the Project
Plans developed within other process areas will typically contain information similar to that called for in the overall project plan. These plans may provide additional detailed guidance and should be compatible with and support the overall project plan to indicate who has the authority, responsibility, accountability, and control. All plans that affect the project should be reviewed to ensure a common understanding of the scope, objectives, roles, and relationships that are required for the project to be successful. Many of these plans are described by the Plan the Process generic practice in each of the process areas. [1]

4.3.2 Reconcile Work and Resource Levels

To obtain commitment from relevant stakeholders, it is important to reconcile any differences between the estimates and the available resources. Reconciliation is typically accomplished by lowering or deferring technical performance requirements, negotiating more resources, finding ways to increase productivity, outsourcing, adjusting the staff skill mix, or revising all plans that affect the project or schedules. [1]

4.3.3 Obtain Plan Commitment

Obtaining commitment involves interaction among all relevant stakeholders both internal and external to the project. The individual or group making a commitment should have confidence that the work can be performed within cost, schedule, and performance constraints. Often, a provisional commitment is adequate to allow the effort to begin and to permit research to be performed to increase confidence to the appropriate level needed to obtain a full commitment. [1]

5. Conclusion
Project Planning resolves many issues that cannot be thought of. It plays a vital role in satisfying the customers and completing tasks on time. It identifies any problems regarding the project which may cause failure. It requires good estimations which comes from experiences. If you Fail to Plan then you Plan to Fail

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References
[1] CMMI: Guidelines for Process Integration and Product Improvement By Mary Beth Chrissis, Mike Konrad, Sandy Shrum [2] Software Engineering By Roger S. Pressman [3] Enterprise Resource Planning: Experiences in Implementing SAP in Project Management Environment, Perry J Beor and Purnendu Manda [4] Project Life Cycle Phases

http://www.mpmm.com/project-management-methodology.php

Websites
http://en.wikipedia.org/wiki/Project_planning http://www.projectsmart.co.uk/project-planning-step-by-step.html http://www.imls.gov/project_planning/index1.asp http://www.wilsonmar.com/1projs.htm

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Appendix A
GCS (General Corporate System) PMB (Project Management Branch) GL (General Ledger) WORKS (Corporate Costing System) IRS (Internal Recharge System) SMIS (Stores Management Information System) CWP (Capital Works Planning System) HURMIS (Human Resource Management Information System) IPACS (Interim Project and Contract System) KPI (Key Performance Indicators) COCOMO (COst COnstructive MOdel)

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