UNIT- PROJECT EVALUATION AND PROJECT PLANNING

Importance Of Software Project Management – Activities - Methodologies – Categorization Of Software

Projects – Setting Objectives –Management Principles – Management Control – Project Portfolio
Management – Cost-Benefit Evaluation Technology – Risk Evaluation – Strategic Program Management –
Stepwise Project Planning.

Why is project management important?

Large amounts of money are spent on ICT (Information and communications technology ) e.g. UK
government in 2003-4 spent £2.3 billion on contracts for ICT and only £1.4 billion on road building . Project
often fail – Standish Group claim only a third of ICT projects are successful. 82% were late and 43%
exceeded their budget. Poor project management a major factor in these failures.

What is software project management?

Software project management is the art and science of planning and leading software projects. It is a sub-
discipline of project management in which software projects are planned, implemented, monitored and
controlled

What is a Project?

Project: The dictionary definitions put a clear emphasis on the project being a planned activity. A project is a
unique venture with a beginning and an end, conducted by people to meet established goals within parameters
of cost, schedule and quality.
 A Planned activity
 A Specific pan or design
 A planned undertaking
 A large undertaking
Non-Software Examples:
 A wedding
 An MBA degree
 A house construction project
 A political election campaign

What is a Task?

A small piece of work:

 Meant to accomplish a straightforward goal
 Effort of no longer than a few person-hours
 Involves only a few people
 May or may not be a part of some project
 Usually repetition of a previously accomplished task
 Process management may be relevant

Non-software Examples:
 Attend a lecture class
 Buy a chocolate from the market
 Book a railway ticket
Jobs versus Projects
 On the one hand there are repetitive jobs a similar task is carried out repeatedly, for example Kwikfit
replacing a tyre on a car or a lecturer giving an introductory talk on project management. The task is well-
defined and there is very little uncertainty. In some organizations, software development might tend to be
like this – in these environments software process management might be more important than software
project management.

 On the other hand some exploratory activities are very uncertain. Some research projects can be like this –
we may not be sure what the outcome will be, but we hope that we will learn some things of importance.
It may be very difficult to come up with precise plans, although we would probably have some idea of a
general approach.

 Projects seem to come somewhere between these two extremes. There are usually well-defined hoped-for
outcomes but there are risks and uncertainties about achieving those outcomes.

Distinguishable characteristics of a project

 Non-routine tasks are involved
 Planning is required
 Specific objectives are to be met
 The project has a predetermined time span
 Work is carried out for someone other than yourself
 Work involves several specialism
 People are formed into temporary work group
 Work is carried out in several phases
 Resources available are constrained
 The project is large and complex.

Software projects versus other types of project

 Invisibility
 Complexity
 Conformity
 Flexibility

Invisibility
 Software remains invisible, until its development is complete and it is operational. Anything that is
invisible is difficult to manage and control. Consider a house building project. The manager can
closely monitor the progress of the project, and take remedial actions if he finds that the progress is
not as per plan.
 In contrast, it becomes very difficult for the manager of a software project to assess the progress of the
project due to the invisibility of software. The best that he can do perhaps is to monitor the milestones
 that have been completed by the development team and the documents that have been produced ---
which at best are rough indicators of the progress achieved.
 Invisibility of software makes it difficult to assess the progress of a project and is a major cause for
the complexity of managing a software project.

Complexity

 Even moderate sized software has millions of parts (functions) that interact with each other in many
ways: data coupling, serial and concurrent runs, state transitions, control dependency, file sharing, etc.
 Due to the inherent complexity of the functioning of a software product in terms of the basic parts
making up the software, many types of risks are associated with its development. This makes
managing these projects much more difficult than that for many other kinds of projects.
 Per dollar, pound or euro spent, software products contain more complexity than other engineered
artifacts.

Conformity

 The ‘traditional’ engineer is usually working with physical systems and physical materials like cement
and steel. These physical systems can have some complexity, but are governed by physical laws that
are consistent. Software developers have to conform to the requirements of human clients. It is not
just that individual can be inconsistent.
 Organizations, because of lapses in collective memory, in internal communication or in effective
decision making can exhibit remarkable ‘organizational stupidity’ that developers have to cater for.

Flexibility
 The ease with which software can be changed is usually seen as one of its strengths. However, this
means that where the software system interfaces with a physical or organizational system, it is
expected that, where necessary, the software will change to accommodate the other components rather
than vice versa. This means the software systems are likely to be subject to a high degree of change.

Contract Management

It is the management of contracts made with customers, vendors, partners, or employees. Contract
management includes negotiating the terms and conditions in contracts and ensuring compliance with the
terms and conditions, as well as documenting and agreeing on any changes that may arise during its
implementation or execution. It can be summarized as the process of systematically and efficiently managing
contract creation, execution, and analysis for the purpose of maximizing financial and operational
performance and minimizing risk.

Activities covered by the software project management

The feasibility study this investigates whether a prospective project is worth starting that it has a valid
business case. Information is gathered about the requirements of the proposed application. Requirements
elicitation can, at least initially, be complex and difficult. The client and other stakeholders may be aware of
the problems they wish to overcome and the aims they wish to pursue, but not be sure about the means of
achievement. The probable developmental and operational costs, along with the value of the benefits of the
new system, will also have to be estimated. With a large system, the feasibility study could be treated as a
project in its own right – and have its own planning sub-phase. The study could be part of a strategic planning
exercise examining and prioritizing a range of potential software developments. Sometimes an organization
has a policy where a group of projects is planned as a program of development.

Planning If the feasibility study produces results which indicate that the prospective project appears viable
and then planning of the project can take place. However, for a large project, we would not do all our detailed
planning right at the beginning. We would formulate an outline plan for the whole project and a detailed one
for the first stage. More detailed planning of the later stages would be done as they approached. This is
because we would have more detailed and accurate information upon which to base our plans nearer to the
start of the later stages.

Project execution The project can now be executed. The execution of a project often contains design and
implementation sub-phases. Students new to project planning often find it difficult to separate planning and
design, and often the boundary between the two can be hazy. Essentially, design is thinking and making
decisions about the precise form of the products that the project is to create. In the case of software, this could
relate to the external appearance of the software, that is, the user interface, or the internal architecture. The
plan lays down the activities that have to be carried out in order to create these products. Planning and design
can be confused because at the most detailed level, planning decisions are influenced by design decisions.

Requirements analysis This starts with requirements elicitation which investigates what the potential users
and their managers and employers require as features and qualities of the new system. These will relate to the
system as a whole. A quality requirement might be, for instance, that the user should be able to complete a
transaction within a certain time. In this case transaction time would be affected by the speed of human
operation, as well as hardware and software performance.

Architecture design This maps the requirements to the components of the system that is to be built. At the
system level, decisions will need to be made about which processes in the new system will be carried out by
the user and which can be computerized. This design of the system architecture thus forms an input to the
development of the software requirements. A second architecture design process then takes place which maps
the software requirements to software components.

Code and test This could refer to writing code in a procedural language such as C# or Java, or could refer to
the use of an application-builder such as Microsoft Access. Initial testing to debug individual software
components would be carried out at this stage.

Integration The individual components are collected together and tested to see if they meet the overall
requirements. Integration could be at the level of software where different software components are combined,
or at the level of the system as a whole where the software and other components of the system such as the
hardware platforms and networks and the user procedures are brought together.

Qualification testing The system, including the software components, has to be tested carefully to ensure that
all the requirements have been fulfilled.

Installation This is the process of making the new system operational. It would include activities like setting
up standing data (such as payroll details for employees if this were a payroll system). It would also include
setting system parameters, installing the software onto the hardware platforms and user training.

Acceptance support This is the resolving of problems with the newly installed system, including the
correction of any errors that might have crept into the system, and any extensions and improvements that are
required. It is possible to see software maintenance as a series of minor software projects. In many
environments, most software development is in fact maintenance.

The software development life-cycle (ISO 12207)

 Requirements analysis: This starts with requirements elicitation which investigates what the
potential users and their managers and employers require as features and qualities of the new system.
These will relate to the system as a whole.

 Architecture design This maps the requirements to the components of the system that is to be built.
At the system level, decisions will need to be made about which processes in the new system will be
carried out by the user and which can be computerized.

 This design of the system architecture thus forms an input to the development of the software
requirements. A second architecture design process then takes place which maps the software
requirements to software components.

 Code and test This could refer to writing code in a procedural language such as C# or Java, or could
refer to the use of an application-builder such as Microsoft Access. Initial testing to debug individual
software components would be carried out at this stage.

 Integration The individual components are collected together and tested to see if they meet the
overall requirements. Integration could be at the level of software where different software
components are combined, or at the level of the system as a whole where the software and other
components of the system such as the hardware platforms and networks and the user procedures are
brought together.

 Qualification testing The system, including the software components, has to be tested carefully to
ensure that all the requirements have been fulfilled.

 Installation This is the process of making the new system operational. It would include activities like
setting up standing data(suchaspayrolldetailsforemployeesifthiswereapayrollsystem).Itwouldalso
 include setting system parameters, installing the software onto the hardware platforms and user
training.

 Acceptance support This is the resolving of problems with the newly installed system, including the
correction of any errors that might have crept into the system and any extensions and improvements
that are required. It is possible to see software maintenance as a series of minor software projects. In
many environments, most software development is in fact maintenance.

Plans, methods and methodologies:

• A plan for an activity must be based on some idea of a method of work.
• Groups of methods or techniques are often referred to as methodologies(e.g. OOD)
• a method relates to a type of activity in general, a plan takes that method (and perhaps others) and
converts it to real activities, identifying for each activity:
– its start and end dates;
– who will carry it out;
– What tools and materials will be used?

Some ways of categorizing software projects:

Distinguishing different types of project is important as different types of task need different project
approaches.

1. Compulsory versus voluntary projects

Voluntary systems (such as computer games–what game will do?) Compulsory systems e.g. the order
processing system in an organization (recording a sale)

2. Information systems versus embedded systems

Information systems (Enable staff to carry out office processes) Embedded systems (process control-which
controls machine)

3. Object driven versus product driven development

Objective-driven projects: a general objective or problem is defined, and there are several different ways in
which that objective could be reached. The project teams have freedom to select what appears to be the most
appropriate approach.

In Product-based projects, the product is already very strictly.

Stakeholders:

These are people who have as take or interest in the project in general, they could be users / clients or
Developers / implementers. They could be:

• Internal to the project team

• External to the project team but within the same organization (e.g. users)
• External to both the project team and the organization.(e.g. customers)

Different stake holders may have different objectives. Project leader need to define common project
objectives using ‘Theory W’ (win-win).
Setting Objectives:

Informally, the objective of a project can be defined by completing the statement: The project will be
regarded as a success “if” Rather like post-conditions for the project, Focus on what will be put in
place, rather than how activities will be carried out.

e.g. ‘a new payroll application will be operational by 4th April’ not ‘design and code a new payroll application’

Overall authority over the project is often termed as project steering committee or project management
board. The project manager runs the project on a day-to-day basis, but regularly reports to the steering
committee. Roles: Setting, monitoring and modifying objectives.

The project manager runs the project on a day-to-day basis, but regularly reports to the steering committee.

Sub-objectives and goals: A goal can be allocated to an individual. Individual may have the capability of
achieving goal, but not the objective on their own. A more appropriate goal or sub objective for the software
developers would be to keep development costs within a certain budget.

For e.g.
 Objective – user satisfaction with software product,
 Analyst goal–accurate requirements and
 Developer goal – software that is reliable

Objectives should be SMART

An objective is a statement which describes what an individual, team or organization is hoping to achieve.
Objectives are 'SMART' if they are specific, measurable, achievable, realistic and, timely (or time-bound).

S–Specific, that is, concrete and well-defined

M–Measurable, that is, satisfaction of the objective can be objectively judged

A–Achievable, that is, it is within the power of the individual or group concerned to meet the target

R–Relevant, the objective must relevant to the true purpose of the project

T–Time constrained, there is defined point in time by which the objective should be achieved

1. Specific

There are a number of different ways in which SMART objectives can be set, one method is to start by
identifying what you want the individual to do or achieve that reflects both the departmental or team
objectives.

2. Measurable

Having identified what needs to be achieved and having written this as a statement (in the box above) you
then apply the SMART criteria to it.

3. Achievable

This is where you need to consider the context, abilities etc. of the individual that you are expecting to do this
work. Is it something that they would be able to do? It may be that the individual would need support in the
form of resources, training/development etc. in order to achieve the objective set.

4. Relevant

Double check that the statement you are now crafting reflects both what is needed by the department and fits
in with the expectations of the individual as described in their job summary/ job description.

5. Time Constrained

A deadline date or time when the objective will be accomplished or completed is necessary and must be
included so as to make the objective measurable. A deadline helps to create the necessary urgency, prompts
action and focuses the minds of those who are accountable for the commitments that they have made through
the objectives.

Measures of effectiveness

How do we know that the goal or objective has been achieved? By a practical test, that can be objectively
assessed. E.g. For user satisfaction with software product:
- Repeat business–they buy further products from us
- Number of complaints – if low etc.
- Performance Measurement: Measure reliability using MTBF (Mean Time between Failures).

Business Case:

Feasibility study or a project justification is called business case.

Its objective is to provide a rationale for the project by showing that the benefits of the project outcomes will
exceed the costs of development, implementation and operation.

Business case may contain: Introduction and background to the proposal, the proposed project, the market,
organizational and operational infrastructure, the benefits, outline implementation plan, costs, the financial
case, risks and management plan.

Project Portfolio Management (PPM):

Strategic and operational assessment carried by an organization on behalf of customer is called portfolio
management. Project portfolio management provides an overview of all the projects that an organization is
undertaking or is considering. It prioritizes the allocation of resources to projects and decides which new
projects should be accepted and which existing ones should be dropped.

It also includes:
- Identifying which project proposals are worth implementation
- Assessing the amount of risk of failure that a potential project has
- Deciding how to share limited resources, including staff time and finance between projects
- Being aware of the dependencies between projects
- Ensuring that projects do not duplicate work
- Ensuring that necessary developments have not been in advertently been missed.

Key aspects of Project portfolio management

(1) Project portfolio definition

An organization should record in a single repository detail of all current projects. A decision will be needed
about whether projects of all types are to be included.

The projects can be divided into new product developments, renewable projects and information system
projects.

(2) Project portfolio management

Once the portfolio has been established, more detailed costing of projects can be recorded. The value that
managers hope will be generated by each project can also be recorded.

This information can be the basis for them or a rigorous screening of new projects.

(3) Project portfolio optimization

The performance of the portfolio can be tracked by high-level managers on a regular basis. Some projects
could potentially be profitable but could also be risky.

Other projects could have modest benefits, such as those cutting costs by automating processes, but have
fewer risks.

The portfolio ought to have a carefully thought – out balance between the two types of project.

Project Evaluation:

Project evaluation is a step by step process of collecting, recording and organizing information about project
results, short - term outputs (immediate results of activities or project deliverables) long term outputs
(changes in behavior , practice or policy resulting from the result.

(1) Technical assessment:

Technical assessment of a proposed system evaluates functionality against available Hardware and Software.
Limitations:
• Nature of solutions produced by strategic information systems plan
• Cost of solution. Hence undergoes cost -benefit analysis.

(2) Cost-Benefit analysis: (Economic assessment)

Comparing the expected costs of development and operation of the system with its benefits. Cost
benefit analysis comprises of two steps:

Step-1: identifying and estimating all of the costs and benefits of carrying out the project.
Step-2: expressing these costs and benefits in common units.

Step-1: It includes Development cost of system, operating cost of system and benefits obtained by system.
When new system is developed by the proposed system, then new system should reflect the above three as
same as proposed system.
Example: sales order processing system which gives benefit due to use of new system.

Step-2: Calculates net benefit.

Net benefit= total benefit=total cost. (Cost should be expressed in monetary terms).
Three types of direct cost
• Development costs: includes salary and other employment cost of staff involved.
• Setup costs: includes the cost of implementation of system such as hardware, and also file
conversion, recruitment and staff training.
• Operational cost: cost requires operating system, after it is installed.

(3) Cash Flow Forecasting

• It estimates overall cost and benefits of a product with respect to time. It includes negative cash flow
during development stage and positive cash flow during operating life.
• During development stage expenditure includes staff wages, borrowing money from bank, paying
interest to bank, payment of salaries, amount spent for installation, buying hardware and software.
• Income is expected by 2 ways
– Payment on completion
– Stage payment

Cost-Benefit Evaluation techniques

It considers the timing of the costs and benefits and the benefits relative to the size of the investment.
Common method for comparing projects on the basic of their cash flow forecasting.

1) Net profit
2) Payback Period
3) Return on investment
4) Net present Value
5) Internal rate of return

(1) Net profit:

• Calculated by subtracting a company's total expenses from total income.
Net profit = total costs – total incomes
• Showing what the company has earned (or lost)in a given period of time (usually one year). It’s also
called net income or net earnings.
Calculate net profit example:

Year Project1 Project2 Project3

0 -1,00,000 -10,00,000 -1,20,000
 1 10,000 2,00,000 30,000
2 10,000 2,00,000 30,000
3 10,000 2,00,000 30,000
4 20,000 2,00,000 30,000
5 1,00,000 3,00,000 75,000
Net profit 50,000 1,00,000 75,000

(2) Payback period:

The payback period is the time taken to recover the initial investment. Or It is the length of time required for
cumulative incoming returns to equal the cumulative costs of an investment
Advantages
• Simple and easy to calculate.
• It is also a seriously flawed method of evaluating investments
Disadvantages
• It attaches no value to cash flows after the end of the payback period.
• It makes no adjustments for risk.
• It is not directly related to wealth maximization as NPV is.
• It ignores the time value of money.
• The "cutoff" period is arbitrary.
- Project1=10,000+10,000+10,000+20,000+1,00,000=1,50,000
- Project2= 2,00,000+2,00,000+2,00,000+2,00,000+3,00,000=11,000,00
- Project3=30,000+30,000+30,000+30,000+75,000=1,95,000.

It ignores any benefit that occurs after payback period; therefore it does not measure profitability.

(3) Return on Investment (ROI) or accounting rate of return:

It provides a way of comparing the net profitability to the investment required.
Or
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a
number of different investments.
ROI = (Avg. annual Profit / Total investment) * 100
Average Annual Profit = Net Profit / Total number of years
Disadvantages
• It takes no account of the timing of the cash flows.
• Rate of returns bears no relationship to the interest rates offered or changed by bank.

Example:
Calculate ROI for project1.
Answer: Total investment=1,00,000
Net profit = 50,000
Total no. of years=5
Average annual profit =50,000/5=10,000
ROI=(10,000/1,00,000)*100=10%
 (4) Net present value (NPV):

• Discounted Cash Flow (DCF) is a cash flow summary adjusted to reflect the time value of money. DCF can
be an important factor when evaluating or comparing investments, proposed actions, or purchases. Other
things being equal, the action or investment with the larger DCF is the better decision. When discounted cash
flow events in a cash flow stream are added together, the result is called the Net Present Value (NPV).
• When the analysis concerns a series of cash inflows or outflows coming at different future times, the series is
called a cash flow stream. Each future cash flow has its own value today (its own present value). The sum of
these present values is the Net Present Value for the cash flow stream.
• The size of the discounting effect depends on two things: the amount of time between now and each future
payment (the number of discounting periods) and an interest rate called the Discount Rate.
• The example shows that:

• As the number of discounting periods between now and the cash arrival increases, the present value decreases.
• As the discount rate (interest rate) in the present value calculations increases, the present value decreases.

Year Cash-flow Discount factor (discount rate 10%) Discounted cash flow
0 -1,00,000 1.0000 -1,00,000
1 10,000 0.9091 9,901
2 10,000 0.8264 8,264
3 10,000 0.7513 7,513
4 20,000 0.6830 13,660
5 1,00,000 0.6209 62,090
NPV 618

*Note: Refer discount factor table given below IRR

(5) Internal Rate of Return (IRR):

The IRR compares returns to costs by asking: "What is the discount rate that would give the cash flow
stream a net present value of 0?"
IRR asks a different question of the same two cash flow streams. Instead of proposing a discount rate and
finding the NPV of each stream (as with NPV), IRR starts with the net cash flow streams and finds the
interest rate (discount rate) that produces an NPV of zero for each. The easiest way to see how this solution is
found is with a graphical summary:
• These curves are based on the Case A and Case B cash flow figures in the table above. Here,
however, we have used nine different interest rates, including 0.0 and 0.10, on up through 0.80.
• As you would expect, as the interest rate used for calculating NPV of the cash flow stream increases,
the resulting NPV decreases.
• For Case A, an interest rate of 0.38 produces NPV = 0, whereas Case B NPV arrives at 0 with an
interest rate of 0.22.
• Case A therefore has an IRR of 38%, Case B an IRR of 22%.
• IRR as the decision criterion, the one with the higher IRR is the better choice.
Management Control

Management, in general, involves setting objectives for a system and then monitoring the
performance of the system.
 This will involve the local managers in data collection.
 data processing will be needed to transform this raw data into useful information
Effective decision making
• Ability to negotiate and influence the organization and the project management team
• Guidelines:
- focus on goals to be served
- follow a decision making process
- study the environment factors
- develop personal qualities
- simulate team creativity
- manage opportunity

Decision making process

• Define Problem: The problem here is which TV to buy

• Fact Collection: Collect all data related to the different TVs from different showrooms
• Solution Finding: narrow down the TV options. Consider your budget and your needs
• Select Solution: narrow down your choice to select any one.
• Implement Solution: Once you have decided on the TV, go ahead and buy it
• Monitor Solution: See if the TV that you purchased is working for you. Check if all the
features that you selected work for you or no

Risk Evaluation
Risk identification and ranking
In any project evaluation we should identify the risk and quantify their effects.
 One approach is to construct a project risk matrix utilizing a checklist of possible risks and
classifying risks according to their relative importance and likelihood.
– Importance and likelihood need to be separately assessed
– We might be less concerned with something that, although serious, is very unlikely to
occur than with something less serious that is almost certain.
The project risk matrix may be used as a way of evaluating projects (those with high risks being less
favored) or as a means of identifying and ranking the risks for a specific project.

Strategic Program Management

Strategic Management is a comprehensive approach to planning,

executing, and controlling programs that align with an organization’s strategic
objectives. It provides a framework for managing multiple related projects in a
coordinated manner, ensuring that resources are effectively allocated, and
goals are achieved.

Key components of Strategic Program Management

Program initiation
• Program initiation is the first step in Strategic Program Management. It involves defining the
program objectives, identifying the strategic fit, and understanding the stakeholders. During
this phase, it is essential to assess the feasibility and alignment of the program with the
organization's strategic priorities.

Program planning
• Once the program is started, a comprehensive plan is developed to guide its execution. This
involves creating a program roadmap that outlines the program's major milestones,
 deliverables, and dependencies.

Program execution
• During the program execution phase, the focus shifts to managing program resources,
monitoring progress, and addressing risks and issues.
• Project Resource management involves allocating the necessary personnel, budget, and
equipment to individual projects within the program.

Program control and evaluation

• Program control and evaluation are ongoing processes that ensure the program remains on
track and delivers the intended results. Tracking program performance through key
performance indicators (KPIs) and metrics provides valuable insights into the program's
progress and allows for data-driven decision-making.

Benefits of Strategic Program Management

• Enhanced alignment with organizational strategy
• Improved resource utilization and efficiency
• Greater visibility and control over interrelated projects
• Increased ability to manage program risks and adopt to changes

Step-Wise Project Planning

What is Step-Wise Project Planning?

• Structured methodology for planning a project in phases
• Ensures thorough preparation before execution
• Reduces risks and improves predictability of outcomes

Step 0: Select Project

Step 1: Identify project scope and objectives
Step 1.1: Identify objectives and practical measures of the effectiveness in meeting those
objectives
Step 1.2: Establish a project authority
Step 1.3: Stakeholder analysis - identify all stakeholders in the project and their interests.
Step 1.4: Modify objectives in the light of stakeholder analysis.
Step 1.5: Establish methods of communication with all parties.
Step 2: Identify project infrastructure
Step 2.1: Identify installation standard and procedures
Step 2.2: Identify project team organization
Step 3: Analyze project characteristics
Step 3.1: Distinguish the project as either objectives- or product-driven.
Step 3.2: Analyze other project characteristics
Step 3.3: Identify high-level project risks
Step 3.4: Take into account use requirements concerning implementation
Step 3.5: Select development methodology and life-cycle approach
Step 3.6: Review overall resource estimates

Step 4: Identify project products and activities

Step 4.1: Identify and describe project products
Step 4.2: Document generic product flows
Step 4.3: Recognize product instances
Step 4.4: Produce ideal activity network
Step 4.5: Modify the ideal to take into account need for stages and checkpoints

Step 5: Estimate effort for each activity

Step 5.1: Carry out bottom-up estimates
- distinguish carefully between effort and elapsed time
Step 5.2: Revise plan to create controllable activities
- breakup long activities into a series of smaller ones
- bundle up very short activities
Step 6: Identify activity risks
Step 6.1: Identify and quantify activity based risks
- damage if risk occurs
- likelihood if risk occurring
Step 6.2: Plan risk reduction and contingency measures
- risk reduction: activity to stop risk occurring
- contingency: action if risk does occurs
Step 6.3: Adjust overall plans and estimates to take account of risks

Step 7: Allocate resources

Step 7.1: Identify and allocate resources
Step 7.2: Revise plans and estimates to take into account resource constraints

Step 8: Review/ Publicize plans

Step 8.1: Review quality aspects of the project plan

Step 8.2: Document plans and obtain agreement

Step 9 and 10: Execute plan. Lower levels of planning

Benefits of Step-wise planning

• Improves clarity and structure

• Minimizes surprises and risks
• Ensures better resource and time management
• Improves stakeholder satisfaction