Planning is the process of setting objective, goals and future course of action. It is future-oriented. It helps in selecting and allocating resources for the future. It specifies ways and means of implementing actions. It determines the answer of questions like what, when, how will, where, why reasons.
Project planning is the roadmap for the only project because it prepares the guidelines for allocating resources and their proper utilization. Project planning includes/ involves in designing, budgeting, scheduling the resources. It is the weapon to accomplish the objectives of any project.
Project planning is part of total project planning. Planning is a systematic way of doing things.
Steps in the planning process:
1. Analyzing opportunities
2. Setting goals
3. Developing Premises
4. Determining and Evaluation of alternative
5. Selecting a course of action
6. Formulating action plans
7. Preparing budgets
1. Analyzing opportunities:
With the help of SWOT analysis, the organization identifies strength, weakness, opportunities, and threats. 5W are a result of internal environment whereas threats and opportunities of the external environment.
2. Setting goals/ Project Objectives:
Goals are the end result to be achieved. Goals provide direction to the organization. While planning goal setting is a very important part. Goals must be SMART.
3. Developing Premises:
Premises are assumptions or forecasting about the future environment within which the project should be conducted. It can be about sales, products, price, technology, tax rates, etc.
4. Determining and Evaluating Alternatives:
An alternative course of actions are determined and evaluated. Quantitative tools are used for this purpose. Nowadays computer programming is getting more popular for evaluation.
5. Selecting a Course of Action:
From the evaluation, the course of action are ranked/ placed. The best course of action (s) should be selected. Profit, cost and other constraints are taken into consideration.
6. Formulating action plans:
For each activity, an action plan is prepared. It should include the answer to what, when, how, who, etc.
7. Prepare the budget:
Budget is the financial limitation for any project which helps to identify how much will it cost. This is the final step in the planning process where action plans are converted into the financial plan.
Project planning process:
A project which leads the actions of a project in a managed way is called the project planning process. It includes the following steps:
1. To understand the project objectives
2. To identify key project stages
3. To prepare WBS
4. To determine sequential activities
5. To estimate the time & resources requirement
6. To allocate responsibilities for each activity
7. To finalize the project plan
1. To understand the project objectives:
Each project has its objectives and objectives are the end result to be achieved. On the basis of objectives action (work) is conducted. So objectives must be clearly understood. Without clear identifications of objectives, planning can not be perfect. It is the first step in project planning.
2. To identify key project stages:
In this stage, the project is subdivided into various stages like formulation, planning, implementation, and termination. The project life cycle is identified and activities are determined. This step helps for different types of analysis for reducing the risk and uncertainties.
3. To prepare the work breakdown structure (WBS):
This process helps to divide the complex work into smaller work (elements) is the work breakdown structure. It identifies different activities. The WBS is to turn the total action into pieces.
4. To determine sequential activities:
With the help of network analysis i.e. PERT and CPM, all the activities are connected. Such activities are connected in sequential order. The critical path for the project is determined. This helps to allocate responsibilities and resources at a different time period and stages.
5. To estimate time and resources requirement:
It is very important for planning to find out the real state of the estimate of cost, time and other resources with the help of historical data experience and experts, quantitative techniques and estimation of time resources. Specially, managerial requirement, technical requirement, financial requirement, etc. are estimated.
6. To allocate responsibilities for each activity:
Depending on the size of the project, different managers with different skills are required. Responsibility should be carefully allocated for the project activities. At this step, responsibility allocation is recorded.
7. Finalize the Project plan:
With successful and accurate analysis of above steps, now project planning is finalized. Finally planning should be stepped to the path of implementation.