A typical project planning sequence

Project Planning and Estimation. Success of a project is significantly impactedby effectiveness of project planning.

N°	Tool	Technique Comment
1.-	Statement	This is where the kernel of an idea or the basic concept visualized is translated into a clear statement of the problem, deficiency, or opportunity to be realized. Careful definition at this point helps later to clarify the scope of the project.
2.-	Project justification	Risk analyses and assessment (payback period, NPV, IRR, ROI, ROA, and benefits/cost). Go/no-go decision made.
3.-	Drafts of mission statement, project scope, and project objectives	These documents clarify the overall direction of the project, and what it is to accomplish, the breadth and depth of the project, and the measurable objectives by which progress and completion are to be measured.
4.-	Stakeholder requirements	Stakeholders would consist of two groups: (1) those with a direct commitment to the project team, for example, a process manager who provides a skilled person to serve on a process improvement team working to reduce machine downtime and (2) those without involvement but who can influence project results, for example, the purchasing department that selects the vendor for a new machine. A macro-level process map may be used to identify areas from which potential team members should be selected.
5.-	Project team formation	Team members should be selected based on the need to  represent a stakeholder group and/or specific skill sets required. Stakeholder groups not represented on the project team should have opportunities to provide input. Some members may be required on an as-needed basis only. Whenever possible, the interests, values, and personality profiles of individuals nominated should be considered.
6.-	Finalized mission statement, Project, scope, project objectives, and project charter	Team members refine the original drafts. A benchmarking study may be appropriate to better define target outcomes.
7.-	Contractual requirements and deliverables	All requirements and outputs of the project are identified, requirements and defined, and documented.
8.-	Work breakdown structure (WBS)	Project work is further defined by breaking the work down into a hierarchy of work categories (families of like work clusters) down to the task level. Boxes on a WBS may be annotated with “person/ work unit responsible,” “resources required,” “cost estimates,” various other cross-references, and so on.
9.-	Gantt chart	Major project steps or task clusters are listed vertically on a time line chart with each item’s estimated start-to-finish time depicted as a bar across the chosen time intervals (weeks, months, quarters). As the project progresses, the same chart may be used to plot the actual time expended next to the estimated time. Major milestones are shown as points along the time bar.
10.-	Time-dependent task diagram (AND, CPM,PERT charts)	Depending on the size, complexity, and duration of the project, it may be necessary to plot the time dependencies of each task to each other task. An activity network diagram (AND) depicts the interrelationships of each task, or task cluster, in the project. A critical path method (CPM) chart adds the dimension of normal (most likely) time to complete tasks and allows for computing the critical path (longest time line) through the project. A program evaluation and review technique (PERT) chart adds two additional time estimates for each task (optimistic, pessimistic), allowing further “what if” planning. Typically AND is used for shorter-term, simpler projects, CPM is used where there is data available for reasonably accurate time estimates, and PERT is most often used for projects for which there may be no prior precedent.
11.-	Resource requirements matrix (RRM)	An RRM delineates the various types of resources needed (for example, personnel, facilities, equipment, materials, consultants, and so on), quantity, when needed, and cost.
12.-	Linear responsibility matrix (LRM)	An LRM, for larger projects, defines the interfaces: who has what responsibility for what tasks, and to what degree (for example, primary, secondary, resource only, need to know).
13.-	Project budget	A detailed, itemized budget is prepared based on the time and cost estimate prepared by the team.
14.-	Measurements	The quantifiable measurements by which project progress and determination that project objectives have been achieved are defined. The progress monitoring process, methods for analyzing data gathered, reporting protocols, and checkpoints for initiating corrective action are determined and documented.
15.-	Approved project plan	Final approval of the project and authorization for implementation is given.