1 Technical paper Project execution planning for cost and schedule managers by Allen C. Hamilton* document used to guide both Project Strategic Project Planner by Richard execution and Project control. ( Project E. Westney, PE, as shown in Figures 1, Management Institute) 2 and 3 overleaf. The two most important The Project plan is a roadmap to how responsibilities of a Project the Project will progress through all PEP focus for cost and schedule manager are planning and the Project phases. According to the managers integration and execution of Project Management Institute the Many of the PEP areas shown above plans.' Project execution plan is used to: have limited impact on the activities of Harold Kerzner, 1989 the cost engineer and scheduler.
2 We G guide the execution of the Project will focus on six as the ones for G document the assumptions, emphasis in order to complete an P. roject success depends on constraints, and alternatives estimate, schedule and Project control. many factors both within and G provide a tool to communicate with The six are: outside the control of the stakeholders Project team. One of the G establish Project milestones and G scope of work aspects that is within the control of the deliverables G risk management plan Project team is the planning . Almost G set scope, cost and schedule G contract plan everything we do in life requires a baselines for progress measurement G time management plan plan. We take many of our daily and control. G cost management plan routines for granted but all require G change management plan.
3 planning for their completion. Projects What does this mean to a cost or are no different, just the scale and scheduler manager? In order for the The change management plan is complexity of the undertaking. person to assemble an estimate or a extracted from the other sections Projects may be millions/billions of schedule they need to know the because of its impact and importance dollars in cost , years in following. to many projects. In addition it is development/construction and need a important to note that the PEP is the plan of how they are to be executed. G What are the Project objectives? framework of the definition, strategy There are many reasons why G What is the scope of work, both and tools of the Project . It is not projects fail to meet their objectives.
4 Technical and functional? necessarily a how to' of Project Some external events may render a G How is the Project going to be management or Project control. How Project unneeded. Internal events may organized? to manage a planning area is generally cause a Project to be delayed or cost G Who will be charged with the addressed in Project procedures and more than expected. Almost all events management and execution of the guidelines. that bear on Project success can be Project ? anticipated and plans can be made G When does the Project need to be Scope of work accordingly. Projects do not succeed completed? The scope of work is the most only because of a Project execution G How much was the preliminary important element of the PEP for the plan but their potential success is cost ?
5 cost and schedule manager. The scope ensured if there is an appropriate plan, of work is the foundation upon which effectively utilized. It is best if the cost engineer/scheduler everything in the Project depends. It is manager has all this information but the central defining element of the cost Project execution planning (PEP) frequently the above items are not estimate and schedule . It is therefore defined available or fully disclosed. The scope important that the PEP is specific on Plan A predetermined course of of work is the single most important the definition of what and where the action over a specified period of time item for establishing an effective plan scope of work will be derived. The which represents a projected response and the cost and schedule baselines.
6 Selected topics to consider in scope of to an anticipated environment in order work for the cost and schedule to accomplish a specific set of adaptive Strategic Project planning manager are: objectives. (AACE International) There are 15 areas of Project execution Project plan A formal, approved planning that are defined in The Functional performance The PEP. Project CONTROL PROFESSIONAL May 2006 13. technical paper Figure 1: Define the business goals that will determine Project success should summarize what the facility of the functional scope? Does the PEP complete? What scope is excluded will DO. It should also reference reference the design standards to be from the Project ? Is there scope the where the functional performance is used on the Project ?
7 For software contractor excludes or the owner defined in detail. Understanding projects, what is the system design expects to be excluded from this customer requirements and user criterion and is there a Project ? The most common problems functionality will ensure the estimate communications technology that encountered with scope are the owner and schedule meet Project objectives. applies. For industrial projects, is the assuming an inclusion and the Examples of functional performance in location of the Project clear and is the contractor assuming exclusion. industry include production capacity layout of the facilities clearly and product specifications. In the referenced. Can the sparing philosophy Contractor's scope How will pharmaceutical industry this would be interpreted by the equipment contractor's scope be defined when include production capacity consistent vendors?
8 Contracts are let? What will be the type with Good Manufacturing Practice of contract: lump sum, unit price, or (GMP) compliance. Exclusions Is there scope to be reimbursable cost ? What will be the performed or provided by others? Does timing of contract award? Technical definition How is the the Project depend on the completion design to accomplish the requirements of that scope to start, continue or Work breakdown structure (WBS) . Figure 2: Define major phases, milestones, risks, organization, staffing and best practices to be used by the Project 14 Project CONTROL PROFESSIONAL May 2006. technical paper Figure 3: Define how time, cost , quality and resources will be managed What is the work breakdown structure quantification and potential mitigation performed to analyze items for for the Project ?
9 Is it a company by a single person or group is potential mitigation. Most organ- standard, customized for each Project , facilitated. See Table 1. izations will mitigate high- or a combination of both? Will the occurrence/high-impact risk items, WBS adequately address the functional Assessment Assess the probability and will not mitigate low- performance, technical definition, of occurrence of the risk and the occurrence/low-impact risk items. exclusions and contractor's scope? potential impact. The occurrence is Other risk items will be mitigated usually determined by deciding if the based on the criteria and analysis. Risk management plan probability is high, medium or low. The objective of the risk management The assessment can be made with Analysis After the risk items are plan is to identify the risks to Project greater attempted precision, ie, narrowed and selected for analysis, a success and develop plans to mitigate numerical probability, but most process is begun where the list will be them.
10 Risk management usually assessments are made by placing the further narrowed to items that will be follows the sequence below: item in a group. The potential impact is mitigated. Based on the risk Identification Assessment Analysis Mitigation assessed and this can be by assigning a identification, describe the mitigation In order for the cost and schedule group (high/medium/low) or the actual action. The cost in value or group manager to be aware of potential impact can be calculated in financial or (H/M/L) is calculated or decided. A. impacts to cost and schedule , it is other terms. Based on the previously judgment of the probability of success important to know what the Project established criteria, a selection is is then determined.