Chapter 13:
Planning
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What is Involved in Project
Planning?
• Planning is often the most difficult and most
unappreciated process in project management
• Many people have a negative view of planning
because they do not use plans to facilitate
action
• The main purpose of project plans is to guide
execution
• Every knowledge area includes planning
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Table 13-1. Planning Processes and Outputs
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Table 13-1. Planning Processes and Outputs
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Table 13-1. Planning Processes and Outputs
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Developing the Project Plans
• The ResNet beta project plan was successful
due to planning at a fairly high level, getting
strong user involvement, and developing solid
measurement tools
• The ResNet 1995 and 1996 plans were more
detailed and focused on key milestones needed
to install the 3,000 PCs and develop new
software
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What Went Right?
The PR-2 for the ResNet 1996 project included
performance results from implementing ResNet in
Baltimore in 1995. Because the project team
developed measurement tools and used them on the
ResNet 1995 project, they had a strong business
case for justifying further investments in the ResNet
1996 project. The call handle time actual results in
Baltimore showed a 6.7 percent improvement after
implementing ResNet, and the percentage of direct
ticket sales increased from 3.2 percent to 7.5
percent. This increase in direct sales translated to
over $15 million in profits that ResNet generated in
1995 alone.
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Determining Project Scope and
Schedules
• Peeter and the ResNet team clearly defined the
scope of each project
• They focused on meeting key milestones, one at
a time
• NWA did use Microsoft Project to create Gantt
charts, but they did not link any tasks or enter
actuals
• The ResNet team did not miss any milestone
dates!
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Table 13-2. Planned Software Development
and Office Implementation Milestones
Software Development Milestone
International sales in production
Date
10/95
WorldPerks in production
3/96
Specialty and support desk
production rollout
Sales Action Center in production
8/96-12/96
12/96
Office Implementation Milestone
Minneapolis/St. Paul (MSP)
international desk complete
New York City (NYC) and Detroit
(DTT) facilities ready
WorldPerks office rollout
Date
10/95
National/International sales offices
complete
Specialty sales/support desks
complete
11/96
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12/95
3/96-12/96
12/96
9
Figure 13-1. ResNet 1996 Application Development
Gantt Chart
Project 98 file
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Figure 13-2. ResNet 1996 Level 2
WBS for Office Implementations
ResNet 1996
1.0 Office 1
New York City
(NYC)
2.0 Office 2
Iron Range Reservations Center (IRRC)
5.0 Office 5
Seattle
(SEA)
3.0 Office 3
Detroit (DTT)
6.0 Office 6
Honolulu
(HNL)
8.1 FAX Testing/
Certification
9.1 Finalize
Requirement
10.1 Beta Test MSP
4.0 Office 4
Minneapolis/St. Paul
(MSP)
7.0 Office 7
Los Angeles
(LAX)
8.2 Developer
Implementation
9.2 Functional
Analysis
10.2 Alpha Test
Hibbing (HIB)
1.3 Phase 3:
Change
Management
8.3 Pre-Installation
Task
9.3 Customer
Correspondence Replacement Design
10.3 Production
System in Hibbing
1.4 Phase 4:
Agent Conversion
8.4 Word Processing
Implementation
(Word/FAX)
9.4 ResNet
Application
Design
1.5 Phase 5:
Achieve
Office Goals
8.5 Specialty Desk
Implementation
9.5 User
Procedures
and Training
1.1 Phase 1:
Pre-Implementation
Preparation
1.2 Phase 2:
Infrastructure
Implementation
8.0 FAX
9.0 ResDoc
10.0 Computer
Telephony
Integration (CTI)
9.6 Programming
and
Unit Testing
9.7 System Test
9.8 Implementation
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9.9 Post
Implementation
Audit
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What Went Wrong?
There was a lot of political pressure related to the Iron
Range Reservations Center (IRRC) in Chisholm,
Minnesota. The state of Minnesota funded a large
portion of this office, which was the central point for
handling the WorldPerks system. The WorldPerks
implementation date of March 31, 1996 was firm. The
ResNet team was a little overconfident in their
planning, and several problems developed.
WorldPerks involved a new communications protocol,
and the ResNet team did not plan enough time upfront to analyze all of the system requirements. They
expedited testing, and there were several quality
problems that were difficult to resolve because of a
lack of precision in planning.
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Figure 13-3. ResNet 1996 Office Implementation Plan
Project 98 file
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ResNet Cost Estimates
• Peeter, Arvid, and other project members
developed cost estimates
• They used vendor quotes for estimating
hardware, software, and network equipment
• They estimated internal labor costs based on
the number of people needed from various
departments and the labor cost per hour for
those employees
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Table 13-3. Maximum Departmental
Headcounts by Year
Department
Information Systems
Marketing systems
Reservations
Contractors
Totals
1994 1995 1996 1997 1998 Totals
24
31
35
13
13
116
3
3
3
3
3
15
12
29
33
9
7
90
2
3
1
0
0
6
41
66
72
25
23
227
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Table 13-4. Summary of ResNet Total Life Cycle Costs
Computer equipment
Facilities/buildings
Software
Total one-time capital
expenditures
Capitalized labor one-time
costs
One-time labor costs
On-going operating labor
Total labor and
consultant costs
Recurring computer
equipment
Recurring
facilities/buildings
Recurring software
Total recurring expenses
TOTAL COSTS
1994 ($)
325,779
563,627
889,406
1995 ($)
1996 ($)
4,337,036 8,487,495
974,372 1,072,969
2,517,590 1,704,575
7,828,998 11,265,039
1997 ($)
-
1998 ($)
-
1999 ($)
-
Total ($)
13,150,310
2,047,341
4,785,792
19,983,443
88,627
1,589,191
1,704,575
3,382,393
38,040
108,675
235,342
748,267
1,101,809
3,439,267
1,265,323
3,150,414
6,120,312
60,000
2,787,984
2,847,984
2,710,982
2,710,982
-
601,249
559,794
805,549
829,715
854,607
3,650,914
-
6,100
41,610
42,858
44,144
45,468
180,180
162,050
607,349
763,454
1,124,748 11,875,614 18,148,805
206,912
1,055,319
3,903,303
213,119
1,086,978
3,797,960
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2,111,630
2,710,981 12,570,845
2,710,981 18,064,868
219,512
801,593
1,119,587 4,632,687
3,830,568 42,680,998
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Human Resources and
Communications Planning
• Peeter was good at motivating people and
providing strong communications with project
stakeholders
• The ResNet team used informal and formal
networking and plans
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Table 13-5. ResNet Staffing Plan (in person-months)
Department
Information Systems
Application Development (IE)
Application Development (IS)
WorldPerks Service Cener Application Development (IS)
Network Operations and Development
Network and Systems Support
Marketing Application Management
Application Support
Total Information Systems Department
Marketing Systems
Project Analyst
Application Developmnet (IE)
Administrative Assistant
Total Marketing Systems Department
Reservations Department
Application Development (Reservations Agents)
Alpha Testers (Reservations Agents)
WoldPerks Service Center Application Development
Sales Action Center Application Development
Change Management Analyst
Training and Awareness (Reservations Agents)
Support/Maintenance (Reservations Agents)
ResNet Hotline (Reservations Agents)
Total Reservations Department
Contractors
Application Design and Development (Sabre)
ResNet Distributed System Implementation Support
Total Contractors
Grand Total Person-Months (Including Contractors)
1994
1995
1996
1997
4
30
0
20
30
4
0
88
12
135
15
60
96
12
6
336
6
86
5
10
96
12
36
251
0
0
0
0
96
12
48
156
0
0
0
0
96
12
48
156
22
251
20
90
414
52
138
987
4
4
4
12
12
12
12
36
12
12
12
36
12
12
12
36
12
12
12
36
52
52
52
156
20
0
16
0
4
8
0
0
48
87
24
44
4
12
24
27
60
282
42
12
0
18
12
6
106
30
226
0
0
0
0
12
0
96
0
108
0
0
0
0
12
0
72
0
84
149
36
60
22
52
38
301
90
748
3
4
7
18
4
22
6
0
6
0
0
0
0
0
0
27
8
35
155
676
519
300
276
1926
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1998 Totals
18
Figure 13-4. ResNet Project
Organization Chart
Joan Charnas
Peeter Kivestu
Bob Dufek
Mktg & Cust Svc . . .
ResNet Proj
Plng & Support
.
Director
Director
Director
.
.
.
.
.
.
.
.
.
.
Amy Wages
Mike Cameron
Ron Vycital
Kathy Krammer .
Nancy Strobel
Lori Manecke
Tam Rath
Joe Santos
.
.
Help Desk
Distributed
Network Dev
ResNet Appl
ResNet Chg
Reservations
Prod
Sys
Sup
Info Center
.
.
Manager
Sys Manager
Manager
Development
Management
Appl Mgr
Manager
Manager
.
.
.
.....................................................
.
.
.
.
:
:
.
.
.
.....................
.
.
. Dan Newstrom
Merle Baldus
Randy Pool
Jim Campbell
Arvid Lee
.
.
.
.
.
.
.
.
.
.
..............................
...
Operations
Help Desk
Sys SW Splst
NR ResNet
IS ResNet
:......................................
. . . . . Research
Analyst
Project Mgr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project Mgr
.
Randy
Mike Anenson
Michael Besch
.
Pemberton
Cecily Johnson
.................
Project
Kim Kuppenbender
.
Specialist
Ruby Madison
.
.
.
Network
Network
Network
.
Mona Dass
Dave
Jim Foster
Development
Services
Operations
.
ResNet TL
Hopperstad
Proj Control
.
ResNet TL
Analyst
.
Mike Fulkerson
Paul Battaglia (NYC)
Rich Peterson
Tom Atz
Hugh Plappert
.
Liani Lee
Larry Buesgens
George Sandmeyer (MSP) .
Nancy Hansen
Dirk Visker
Steve Muench
Diane Cornwell
Dave Timp
Min Zhuang
.
Doug Smart
Todd Grimm (SEA)
.
Teresa Hendershott
.
Frank Kluge (HQA)
.
Roy Knapp (BWI)
..............................................................
Mark Kummer (DTT)
:
:
:
:
Keith Long (LAX)
Alan Millar (TPA)
Ken Bietz
Sandy Hart
Israel Hill
Mike Powers
Dean Oines (CHIS)
ESD
Change Mgmt
Level 4 Comp
MS Office
Mark Sparks (MSP)
Training
Keith Struck
Dave Vesper (TPA)
Sue Bromen
Jim Kath
Cyndi Gust
Kaye Hayes
Dennis Halloran
Systems Res.
Director
Norm Renner
System SW
Director
Tom Vande Hei
Ntwk Res
Director
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ResNet Communications
• Most of the people assigned to ResNet were
full-time, making communications easier
• The ResNet team created templates for
communicating project information like
weekly and monthly status reports
• They set up a shared network drive for all
project information
• They held regular meetings for various team
members and stakeholders
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Quality, Risk, and Procurement
Planning
• The PR2 included some information related to
quality, risk, and procurement planning
• The measurement techniques for tracking call
handling time and number of direct sales closes
were critical elements in assessing quality
• NWA used past experience in dealing with
vendors
• NWA managed risk by following expert advice
and having strong user involvement
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