Transcript Time Effect on Project Planning and Budgetting

Time Effect on
Project Planning
and Budgeting
‘Jide Onademuren
Project Planning and
Budgeting
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A project is identified, resources allocated
and work happens
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Project moves through a time process from
requirements, design, development, testing
to deployment
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What happens during this “time process”
makes a project looks like a success or failure
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Planning and Budgeting;
Effect of Time
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Uncertainty
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Planning Fallacy
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Expert Opinion
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Trust
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Information Flow
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 Uncertainty
Planning and budgeting outlines how much a
project will cost and how much effort will be
required for delivery
 Planning and budgeting are subject to predictable
amounts of uncertainty
 This occurs at various stages and time of project
lifecycle
 When the number of decisions about planning and
budgeting over time increases, uncertainty level is
reduced and accuracy increases
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The Cone of Uncertainty
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 Planning Fallacy
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It is the tendency to underestimate how long or
time required to complete a task even when there
is experience of similar tasks
Individuals or organizations can be affected
Most times planning fallacy is about personal
interests
The project manager/organization believes that
planning and budgeting should be set in a way too
hard to achieve
There is the belief that it will bring better
productivity or completion of project fast enough
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 Planning Fallacy (Cont’d)
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Team members can also be pessimist
Afraid to plan and budget
They also have the fear of failure or inefficiency
When new, neutral and additional resources who
have no personal interests are brought in, planning
fallacy is eliminated
This action also enforces independent and
consensus-oriented planning and budgeting
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 Expert Opinion
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The opinion of an expert can be required when it
comes to determining how long a project might
take
The expert relies on his intuition or gut feel and
provides an estimate
Typically, he reads project details, ask one or two
clarifying questions and then gives an estimate
However, from agile project planning and
budgeting deals with functionalities(user stories)
These user stories require a variety of skills
normally performed by more than one person
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 Expert Opinion (Cont’d)
This makes it difficult to find a suitable expert who
can assess these skills across all disciplines
 On the traditional approach, planning and
budgeting is associated with a task which is
performed by one person
 A nice benefit of planning and budgeting by expert
opinion is that it usually doesn’t take long
 Studies have shown that planning and budgeting is
more accurate by expert opinion than other
approaches
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 Trust
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The frequency of reliable delivery of promised
estimates builds trust between project owners and
managers in planning and budgeting
Project owners are reluctant to make important
decisions early in a project unless estimates in the
past have proved trustworthy
Trust helps to make important prioritization and
tradeoff decisions on time
Trust helps to decide how much of a feature to be
developed
Reliable planning and budgeting allows work at a
sustainable pace and less time is spent on highly
unpredictable tasks
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 Information Flow
Planning and budgeting conveys and describes one
possibility of what may come to pass in the life of a
project
 They communicate and establish a set of baseline
expectations
 Far too often, a project is reduced to a single date
and all assumptions and expectations that lead to
the date are forgotten
 Without additional information there is no way of
determining the sufficiency and realistic status of
planning and budgeting
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 Information Flow (Cont’d)
Time helps to describe what task will be
completed at what period
 Documents key assumptions
 Establishes an approach for how it will have
collaborative measurable progress
 When a continuous information flow is
established the confidence and conclusion
that can be drawn from planning and
budgeting is influenced
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Thank You
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