Explanation A project plan is a document used to coordinate all project planning documents and help guide a project’s execution and control. Project plans also document assumptions and decisions regarding choices, facilitate communication among stakeholders, define the content, extent, and schedules of key management reviews, and provide a baseline for progress measurement and project control. Plans should be dynamic, flexible, and subject to change when the environment or project changes. Plans should be used by project managers to lead project teams and assess project status.
To create a good project plan, the project manager must practice integration because he or she will require information from all knowledge areas. Working with the project team and other stakeholders to create a project plan can help the project manager gain overall understanding of the project and its execution.
Just as projects are unique, so are project plans. A small project involving a few team members working together over a couple of months might use a project plan consisting of a two-page description of the project along with a work breakdown structure and a Gantt chart. A large project involving 100 team members working on a project that will run over three years might use a detailed project plan. It is important to tailor project plans to fit the needs of specific projects. The plans should guide the work so that the detail of a project plan meets the needs of the project.
There are, however, elements common to most project plans. These elements include an introduction or overview of the project, a description of how the project is organized, the management and technical processes used on the project, and sections describing the work to be done, the schedule, and the budget.
Common project plan elements
The introduction or overview of the project should at least include the following information:
· The project name. Every project must be assigned a unique name to help identify it and avoid confusion with other related projects.
· A brief description of the project and the need it addresses. This description clearly outlines the rationale and goals of the project. It should be written in simple terms, avoiding technical jargon, and it must include a rough time and cost estimate.
· The sponsor’s name. Every project needs a sponsor. You must include the sponsor’s name, title, and contact information in the project introduction.
· The names of the project manager and key team members. The project manager is always the contact for providing all project-related information.
However, depending on the size and nature of the project, you can include the names of key team members.
· Project deliverables. This section briefly describes the products to be created as part of the project. Software packages, hardware components, technical reports, and training material are examples of deliverables.
· A list of important reference materials. Many projects have a history that is pertinent to the project. Listing important documents or results of
meetings held in the past help project stakeholders understand the project’s history. This section also refers to the plans for other knowledge areas. For example, the overall project plan refers to and summarizes important parts of scope, schedule, cost, quality, staffing, communications, risk, and
procurement management plans.
· A list of definitions and acronyms, if applicable. Many projects, especially information technology (IT) projects, involve terminology unique to a particular industry or technology.
Providing a list of definitions and acronyms helps ensure consistency in their use across the project.
Project organization
The description of how a project is organized includes the following information:
· Organizational charts. In addition to an organizational chart for the company sponsoring the project and for the company’s customer (if it is an external customer), you include a project organizational chart to show the lines of authority, responsibilities, and communication for the project.
· Project responsibilities. This section of the project plan describes the major project functions and activities and identifies the individuals responsible. A responsibility assignment chart often displays this information.
· Other organizational or process-related information. Depending on the nature of the project, you can document the major processes followed during the life cycle of that project.
For example, if a project involves launching a major software upgrade, you can create a diagram or timeline of the major steps involved in this process.
Management and technical processes
The section of the project plan describing management and technical processes includes the following information:
· Management objectives. It is important for team members to understand senior managers’
views, priorities, assumptions, or constraints regarding the project.
· Project controls. This section describes how to monitor the progress and changes in the project. This information answers the questions: Will monthly status reviews and quarterly progress reviews be held? Will specific forms or charts be used to monitor progress? Will the project use earned value analysis to assess and track performance? What is the process for change control? What level of management is required to approve different types of changes?
(Change control is discussed later in this unit.)
· Risk management. This section briefly addresses how to identify, manage, and control risks.
It refers to the risk management plan if the project requires one.
· Project staffing. This section describes the number and types of personnel required for the project. It also refers to the staffing management plan, if the project requires one.
· Technical processes. This section describes the specific methodologies a project might use and how information is to be documented. For example, many IT projects follow specific software development methodologies or use particular Computer Aided Software Engineering (CASE) tools. Many companies or customers also use specific formats for technical
documentation. It is important to describe these technical processes in the project plan.
Work to be done
The section of the overall project plan describing the work to be done refers to the scope management plan and summarizes the following:
· Major work packages. Project work is organized into several work packages by using a work breakdown structure (WBS). To describe the work in detail, you might need to create a statement of work (SOW). This section briefly summarizes the main work packages for the project and refers to the appropriate sections of the scope management plan.
· Key deliverables. This section lists and describes the key products developed as part of the project. It also describes the stakeholders’ expectations regarding the quality of the
deliverables.
· Other work-related information. This section highlights key information related to the work to be performed as part of the project. For example, it might list specific hardware or software to be used or define the specifications to which the team must conform. It documents major assumptions made in defining the project work.
Schedule
The project schedule information section includes the following:
· Summary schedule. It is a one-page summary of the overall project schedule. Depending on the project’s size and complexity, the summary schedule might list only key deliverables and their planned completion dates. For other projects, it might include a Gantt chart with details of all the work and associated dates for the entire project.
· Detailed schedule. This section provides detailed information about the project schedule. It refers to the schedule management plan and discusses dependencies among project activities that can affect the schedule. For example, a detailed schedule might explain that a major part of the work can start only after funding by an external agency. You can use a project network diagram or a PERT chart to show these dependencies.
· Other schedule-related information. Many assumptions are made while preparing project schedules. This section documents major assumptions and highlights other important information related to the project schedule.
Budget
The budget section of the overall project plan includes the following:
· Summary budget. The summary budget includes the total estimate of the overall project’s budget. It can also include the budget estimate for each month or year categorized into specific budget categories. It is important to provide an explanation of what this data means.
For example, is the total budget estimate a firm number that cannot change, or is it a rough estimate based on projected costs over the next three years?
· Detailed budget. This section summarizes the cost management plan and includes detailed budget information. For example, it defines the fixed and recurring cost estimates for the project each year. It also includes information about the projected financial benefits of the project, the skills and competencies of the human resources required for the project, and the basis for calculating the labor costs.
· Other budget related information. This section documents major assumptions and highlights other important information related to financial aspects of the project.
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