Lecture Notes on Project Planning

1. Work Breakdown Structure (WBS)

Definition

A Work Breakdown Structure (WBS) is a hierarchical decomposition of the total scope of

work to accomplish the project objectives. It organizes and defines the project into manageable
sections.

Key Characteristics

 Hierarchical: Breaks down project deliverables into smaller, manageable tasks.

 Deliverable-oriented: Focuses on outputs rather than processes.
 Structured in levels:
o Level 1: The overall project.
o Level 2: Major deliverables or phases.
o Level 3: Sub-deliverables or components.
o Level 4+: Work packages (smallest units of work).

Benefits of WBS

 Improves project planning and control.

 Enhances communication among stakeholders.
 Helps in estimating costs and schedules.
 Clearly defines responsibilities.

Example of a WBS for a Software Development Project

1. Project Initiation
o Requirements gathering
o Feasibility study
o Project charter creation
2. System Design
o Architectural design
o UI/UX design
o Database schema design
3. Development
o Frontend development
o Backend development
o Integration
4. Testing
o Unit testing
o System testing
 User acceptance testing
o
5. Deployment & Maintenance
o Deployment
o Training
o Support & maintenance

2. Project Scheduling
Project scheduling involves planning tasks, assigning resources, and setting deadlines.

a. Gantt Charts

A Gantt chart is a bar chart that illustrates a project schedule, showing task durations,
dependencies, and deadlines.

Features

 Horizontal bars: Represent task durations.

 Milestones: Indicate key deadlines.
 Dependencies: Show relationships between tasks.

Advantages

 Simple visualization of project progress.

 Helps in tracking deadlines and task dependencies.
 Easy to communicate with stakeholders.

Example of a Gantt Chart

Task Start Date End Date Duration Dependencies

Task A Day 1 Day 5 5 days -
Task B Day 3 Day 8 6 days Task A
Task C Day 7 Day 10 4 days Task B

b. Critical Path Method (CPM)

The Critical Path Method (CPM) determines the longest sequence of dependent tasks that
defines the shortest project duration.

Steps in CPM

1. Identify all tasks and their durations.

 2. Determine task dependencies.
3. Calculate the earliest and latest start and finish times.
4. Identify the critical path (tasks with zero slack).

Importance of CPM

 Identifies key tasks that directly impact project duration.

 Helps in resource optimization and scheduling.
 Highlights flexibility in non-critical activities.

c. Program Evaluation and Review Technique (PERT)

PERT is a statistical tool used to analyze the time required to complete project tasks,
incorporating uncertainty.

PERT Formula for Expected Time (TE)

TE=(O+4M+P)6TE = \frac{(O + 4M + P)}{6}TE=6(O+4M+P)

Where:

 O = Optimistic time estimate

 M = Most likely time estimate
 P = Pessimistic time estimate

Advantages of PERT

 Helps in planning when task durations are uncertain.

 Identifies project risks related to time delays.
 Supports better decision-making in project scheduling.

3. Resource Allocation and Budgeting

Resource allocation ensures that available resources (people, time, money, equipment) are
optimally distributed.

a. Steps in Resource Allocation

1. Identify resource requirements (e.g., personnel, materials).

2. Estimate resource availability (check constraints).
3. Assign resources to tasks (optimize workload distribution).
4. Monitor and adjust allocation (reallocate as needed).
b. Budgeting in Projects

Project budgeting involves estimating costs and allocating funds effectively.

Types of Costs

 Direct Costs: Expenses directly related to the project (e.g., salaries, equipment).
 Indirect Costs: Overheads, administrative expenses.
 Fixed Costs: Costs that remain constant (e.g., rent).
 Variable Costs: Costs that change based on project scope.

Budgeting Techniques

 Bottom-up budgeting: Estimate individual task costs and sum them.

 Top-down budgeting: Allocate a fixed budget and divide it among tasks.
 Contingency reserves: Set aside funds for unexpected risks.

4. Risk Identification, Assessment, and Mitigation

Risk management ensures that potential project risks are identified, analyzed, and mitigated.

a. Risk Identification

Common risks in projects include:

 Technical risks: Unclear requirements, technology failures.

 Financial risks: Budget overruns, funding issues.
 Schedule risks: Delays in task completion.
 Resource risks: Lack of skilled personnel.
 External risks: Legal, environmental, market changes.

b. Risk Assessment

Use a Risk Matrix to assess probability and impact.

Risk Probability (Low/Med/High) Impact (Low/Med/High) Priority

Budget Overrun High High Critical
Resource Shortage Medium High High
Scope Creep High Medium High

c. Risk Mitigation Strategies

 1. Avoidance: Change plans to eliminate risks.
2. Mitigation: Reduce the likelihood or impact.
3. Transfer: Shift risk responsibility (e.g., insurance, outsourcing).
4. Acceptance: Plan for response if risk occurs.

Conclusion
Project planning is essential for successful execution. Using tools like WBS, Gantt Charts,
CPM, and PERT, along with effective resource allocation, budgeting, and risk management,
helps in delivering projects on time, within scope, and within budget.

Work Breakdown Structure (or WBS, as it’s sometimes known) is about

dividing a project into smaller, more digestible chunks, making it easier to
plan, execute, and monitor.
In this guide, we’ll cover everything you need to know about work breakdown
structures: what they are, how to create them, and how to use them effectively
in your project planning.
We’ll also provide some templates and examples to get you started. So let’s
dive in!
What is a work breakdown structure?
A work breakdown structure is a planning tool used by project managers to
break down the work of a project into smaller, more manageable ‘pieces’ in
order to make it easier to track progress – as well as identify potential issues.
As an organisational tool, WBS helps to assign roles for each task and
subtask and define who’s responsible for what.
Typically created from the project scope, a WBS lets teams map out all tasks
that need to be completed from beginning to end, starting with the larger
activities and breaking them down into more granular detail until every
element of the project has been accounted for.
With its flexibility and scalability, this popular planning tool can easily be
modified along the way to adjust for changes or environmental factors that
arise during the lifetime of a project.
Our Insight
By sharing responsibility and workload, you create a situation where – if
everyone looks after their own little part – the ‘big picture’ starts to come to
fruition.

The benefits of using a WBS

So, we’ve established that a work breakdown structure is an incredibly useful
tool for project managers. What are the actual benefits of working in this way?
1. Improved project planning
A WBS breaks down complex projects into smaller, more manageable tasks,
making it easier to plan and schedule the work that needs to be completed.
By identifying all the stuff that needs to be done, you can create a more
accurate project plan, including timelines, milestones, and deliverables –
keeping your entire project running smoothly and optimising chances of
success.
2. Better resource allocation
With a detailed WBS, you can identify the specific resources needed for each
task, including people, equipment, time and materials.
This lets you allocate resources more efficiently and effectively – ensuring that
everyone and everything is being used to their fullest potential.
3. Greater project control
A work breakdown structure provides a clear and comprehensive overview of
the project, allowing you to monitor progress, identify potential issues, and
make necessary adjustments as issues arise.
By breaking the project down into smaller pieces, you can track progress
more easily and keep everyone on the same page.
4. Enhanced communication
A WBS can serve as a valuable communication tool, since it lets you share
project information with team members, stakeholders, and other relevant
parties.
By presenting the project in a clear, structured format, you can facilitate
communication and ensure that everyone understands what needs to be done
and when.
People can grasp not only their own role in the bigger picture of your project,
but also understand what others are working on.
5. Improved risk management
With a work breakdown structure, you can identify potential risks and develop
strategies to mitigate them.
By breaking the project down into smaller pieces, you can identify areas
where risks are more likely to occur and take steps to address them before
they become major issues.
The different types of work breakdown
structure
Further underlining the flexibility of this way of working, there are a variety of
different types of WBS to be used and adapted depending on the needs of
your project.
1. Deliverable-oriented WBS
This type of WBS focuses on the end deliverables of the project and breaks
them down into smaller, more manageable tasks. Each task is assigned to a
specific team or individual responsible for completing it.
WORKS BEST FOR: Projects with clearly defined outcomes.
EXAMPLE: Building a website

If you were building a website, you could start by laying out your deliverables
– all the different components that are required to be completed. These might
include:

Project Plan
Wireframes and Mockups
Web Content (Text, Images, Videos)
User Interface Design
Front-end Development
Back-end Development
Testing
Launch

Within this, each deliverable could be assigned its own range of tasks,
allocated to teams or team members, and given deadlines.

2. Phase-oriented WBS
This type of WBS breaks down the project into phases, with each phase
representing a major milestone or objective. Each phase is further broken
down into smaller tasks, allowing for better project management and
monitoring.

WORKS BEST FOR: Projects with distinct stages.

Each phase would then be given its own set of tasks and assigned to specific
people.
EXAMPLE: New product development

In a phase-oriented WBS, you start by identifying the different project phases

it needs to pass through.
So, hypothetically, if you were developing a new product, these might be:

Concept Development
Design
Prototyping
Testing
Launch

Each phase would then be given its own set of tasks and assigned to specific
people.

3. Organisational-oriented WBS
This type of WBS is based on the organisational structure of the project team.
Tasks are grouped according to the team or department responsible for
completing them, making it easier to allocate resources and track progress.
WORKS BEST FOR: Projects with multiple departments or stakeholders
involved.
EXAMPLE: Construction project

You might use an organisational-oriented WBS for a construction project by

dividing the project up into the required ‘departments’ involved. These might
include:

Plumbers
Electricians
Suppliers
Bricklayers
Surveyors

The WBS would be organised around these vendors, with each one
responsible for completing their specific tasks related to the construction
project.

But – as the overall project manager – you’d have a clear overview of what
each team had to work on to get the job done.

4. Activity-oriented WBS
This type of WBS breaks down the project into specific activities or tasks that
need to be completed, regardless of the end deliverable. Each activity is
assigned to a specific team or individual responsible for completing it.
WORKS BEST FOR: Projects with many interdependent tasks.
EXAMPLE: Planning a conference
If you were setting up a conference, you might create an Activity-oriented
WBS that was based around the various interdependent tasks and activities
required to get this up and running. For example:

Conference Program
Venue and Logistics
Speakers and Presentations
Marketing and Communications
Attendee Experience
Budget and Financials
Sponsorship and Exhibitors
Evaluation and Feedback

Tasks for each deliverable could then be assigned to teams or individuals,

with specific deadlines for completion.

5. Hybrid WBS
This type of WBS combines two or more of the above types, depending on the
needs of the project. For example, a hybrid WBS may include a phase-
oriented WBS for overall project management, with an activity-oriented WBS
for specific tasks or deliverables.
WORKS BEST FOR: Projects where you have a ‘mix’ of any or all of the other
types of WBS and need to use a highly customised WBS to suit the needs of
the project team.
EXAMPLE: Software development project

In this example project, the WBS could be organised into both deliverables
and phases. For example, the project might be broken down into distinct
phases, such as:

Design
Development
Testing
Deployment

These would each have their own set of deliverables, such as wireframes,
prototypes, and code releases. But within each phase, the WBS could also be
organised according to the various departments involved in the project, such
as:

The development team

The design team
The quality assurance team
The project management team.

Each department would be responsible for completing their specific tasks

related to the project, with clear deadlines and dependencies.

A hybrid WBS would be necessary in this project because it would allow for
both deliverable-based and phase-based management, as well as
departmental management.
This would provide a more comprehensive and flexible structure for managing
the project, ensuring that all deliverables are completed on time and within
budget while also allowing for more efficient departmental coordination and
resource allocation.
In essence a hybrid WBS offers the best of both worlds – a high-level
overview of the project’s phases and deliverables, as well as a more detailed
breakdown of the tasks and responsibilities within each department.
How to Create a WBS
Developing a WBS isn’t difficult – all it takes is understanding the basics of
project management and following a few steps.
1. Identify the major deliverables
The first step is to identify the major deliverables or outcomes that the project
aims to achieve. These are usually the key objectives or milestones of the
project.
2. Break down deliverables into sub-
deliverables
Once the major deliverables have been identified, break them down into
smaller, more manageable sub-deliverables. This step involves breaking
down the major objectives into smaller, more specific tasks that need to be
completed to achieve them.
3. Continue breaking down until you reach
manageable tasks
Continue breaking down the sub-deliverables into smaller and more
manageable tasks until you have reached a level of detail that is sufficient for
project planning and management. This level of detail will depend on the
complexity and size of the project.
4. Organise the tasks
Organise the tasks into a hierarchical structure that shows the relationship
between the different tasks. This structure will help in project planning and
tracking progress.
5. Assign resources and estimate time
Assign resources and estimate the time required to complete each task. This
will help in determining the project schedule and budget.
6. Review and refine
Review and refine the WBS to ensure that it accurately reflects the scope of
the project and that all necessary tasks have been included.
7. Use the WBS as a reference
Once the WBS has been created, use it as a reference tool throughout the
project to ensure that all tasks are completed as planned and that the project
stays on track.
Work Breakdown Structure: A Summary
To recap, creating a work breakdown structure (WBS) is a critical step in
planning and managing a project.
By breaking down a project into smaller, manageable deliverables, the project
team can organise their work, allocate resources effectively, and track
progress more easily.
Expert Tip

Don’t forget – the type of WBS used depends on the nature of the project and
the needs of the project team. By selecting the appropriate type of WBS, the
project team can ensure that their project is well-organised, efficiently
managed, and successfully completed.