Management Studies: Total Planning Process

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Project Planning Process

Understand the Project Objectives: The very first step in a project planning is understanding the project objectives. Objectives are results to be achieved. They are the end result of project planning. They should be clearly understood and defined.
Identify Key Project Stages: A stage is the major sub division of the project. Normally, the key stages in a project are formulation, planning, implementation and termination.
Prepare Work Breakdown Structure: It identifies various activities to be performed in each stage of project. The Work Breakdown Structure (WBS) is used for breaking down the work into smaller elements. Generally a hierarchical Work Breakdown Structure is prepared. It is a detailed listing of steps required to complete a project.
Determine Logical Sequence of Activities: The logical sequence of activities are determined by the use of Network Analysis and other tools. The critical path for the project is determined.
Estimate Time and Resource Requirements: Accuracy in estimates of time, cost and other resources is important for project planning. Historical data, experience and experts can be helpful. Quantitative techniques and computer simulations can also help. The size of the activity and the efforts needed to complete it determine time and resource requirement.
Allocate Responsibilities for each Activity: Each activity of the project needs to be owned by an individual or department in the project. Responsibilities are carefully allocated for project activities. A record of the responsibilities allocated is kept.
Finalize Project Plan: The project schedule is optimized for the sequenced activities of all the stages of the project. The resources are allocated to each activity. The project plan is finalized.

Reasons for Project Planning

Control risks and uncertainty in the project environment.
Allocate resources in a coordinated manner.
Establish standards of performance for project monitoring and control against which:

Project progress can be measured
Resource usage and expenditure can be monitored
Project viability can be assessed.

Provide a structured basis for executing the project work and to sequence and schedule the work based on Work Breakdown Structure (WBS).
Establish procedures to make corrections in project work.
Achieve project results on time, to the budgeted cost and to the desired level of quality performance.
Improve efficiency of project operations by minimising waste.
The need for project planning increases with the increase in size and complexity of the project.

Bases for Effective Project Planning

Statement of Work (SOW): It is narrative description of the work to be accomplished by the project. It describes project parameters and constraints.
Project Specifications: They are documents stating the procedures and processes for technical contents, quality standards and organizational policies.
Milestone Schedule: It identifies major events in the project for formal reporting of progress including project start and end dates. It identifies logical relationships among tasks.
Work Breakdown Structure: It is grouping of activities in hierarchical order for each stage of the project. It breaks down the work into smaller elements which are measurable and integrable. It provides a basis for developing time, costs and schedules. Schedule is project time table.

Project planning is concerned with development of project for investment. Planning is very important for effective implementation and controlling the project. It identifies and addresses the tasks required for accomplishment of project objectives. It acts as a road map for managing the project. It determines how the project objectives will be accomplished. It involves detailed design,k budgeting, scheduling and allocation of resources.

Project planning is the detail scheme for proper arrangement of necessary action, steps and means. So that the objective of the proposed project's objectives can easily be achieved within stipulated time, cost and quality. Project planning is the process of setting project's goal and defining action to achieve those goals. It is mainly concerned with development of project investment. It identifies all key project task to be accomplished and milestone should be achieved. It prepares detail schedules and then the schedules are used for procuring equipments, materials, organizing the required resources, sequencing and measuring task performance.

Need of project planning

To establish and obtain greater understanding of project objectives and constraints.
To arrange the available resources in a coordinated manner.
To determine standard of performance evaluation and control.
To avoid confusion and wastage.
To identify the require time and resources for each task and total project.
To determine the rules and responsibility of a project team members.
To ensure greater communication and co-ordination.
To reduce the risk and uncertainty.
To provide a basis for project implementation through work down structure, scheduling and sequencing.
To improve the efficiency of operation.

The tasks involved in project planning are:

Feasibility Study: It determines the implementability of the project.
Appraisal: It is evaluation of the project's ability to succeed. It is done after the feasibility study is done.
Design: It is concerned with the preparation of :

Detailed engineering design, including blueprints and specifications.
Detailed implementation plan including schedule, cost estimates and allocation of resources.

Project planning is concerned with looking ahead at the future work plan of a project. It is deciding in advance about:

What activities need to be done in the project?
How the activities will be done?
When the activities are to be done?
Who will do the activities?

Steps for Planning Process

Analyze Opportunities: This is the first step of planning process and based on SWOT (Strenths, Weaknesses, Opportunities and Threats). Environmental scanning is done to generate data.

Strengths and weaknesses are internal to organization. They come from technology, structure, people.
Opportunities and threats come from the external environment. They come from political, economic, technological, social, cultural forces.
Resources assessment is done to find out resource availability.
Issue Analysis: The main issues to be dealt with in the plan are pinpointed.

Set Goals: Goals are results to be achieved. They provide direction to the plan. They are set for entire organization and for divisions and units. Goals should be SMART (Specific, Measurable, Agreed upon, Realistic and Time bound).
Develop Premises: Premises are key assumptions about the future environment in which the plan is to be carried out. Forecasting is important for premises.

Premises can be about sales, products, price, costs, technology, tax rates, etc.
Premises are developed about all the critical aspects of plan.

Determine and Evaluate Alternatives

Alternative courses of action are determined for achieving objectives efficiently. Most attractive alternatives are identified for evaluation.
Alternatives are evaluated in terms of contribution to goals achievement. Quantitative tools are used for evaluation. Computer can be a great help.

Select a Course of Action: The best course of action is selected. Costs, profits and judgement are important selecting a course of action. Two or more alternatives can also be selected. The limiting factor determines selection. It can be time, cost, quality or resource availability.
Formulate Action Plans: Action plan for each activity is prepared. Such plan sets targets. The integrated action plans become programme. Action plans answers:

What will be done?
Who will do it?
When will it be done?
How will it be done?

Prepare Budget: Action plans are converted into financial plan. Budgets are prepared for each activity to find out how much will it cost. Budgets serve as standards for control.

Principles of The Process of Planning

The principles of the planning are:

Principle of the limiting factor: Accurate recognition of limiting factors to goal attainment leads to accurate selection of alternatives.
Principle of commitment: Planning time frame should be appropriate to fulfill the commitments through a series of actions.
Principle of flexibility: Flexibility in planning lessens the losses of unexpected events. Advantages of flexibility should justify costs.
Principle of navigational change: Planning events and expectations should be checked periodically. Plans should be re-drawn to maintain a course toward the desired goal. (Periodically reviewing and rewarding plans). The planner should be a navigator.

Planning principles of commitment, flexibility and navigational change provide contingency approach to planning.

Characteristics of Total Planning Process

Process: Planning is a process. Process is systematic way of doing things. It is a mental process. It involves creative thinking and imagination.
Future-oriented: Planning anticipates future opportunities and threats. It is based on forecasting and environment scanning. It decides in the present about what is to be done in future. It provides direction to the organization.
Pervasiveness: Planning concerns all levels of management. It is the function of every manager. Its nature and scope differ according to the level of managers. Top managers set mission and objectives. Lower managers execute the plans.
Goal-oriented: Planning is goal focused. It not only sets goals but also selects actions to achieve them. It entails commitment of resources to selected actions. It is not based on hunch or guesswork. Actions are selected from among alternatives.
Decision-oriented: Planning involves decisions at all levels of management. It involves interdependent set of decisions. It coordinates various activities through decisions.
Efficiency: Planning is directed towards efficiency at all levels of management. Efficiency means greater output at lower costs. Alternatives are evaluated on the basis of efficiency.

Total Planning Process

We know that planning is the process of determining future course of actions. It is the process of setting goals and choosing the actions to achieve those goals. It is looking ahead. It attempts to define the future path of organization.

Planning selects future courses of action from among the alternatives. It serves as a guide for allocating resources in a coordinated manner. It specifies ways and means of implementing actions. It is the prime instrument for directing efforts. It provides targets which serve as standards for controlling performance.

Planning is a way of organizational life. Managers must plan. All other management functions are based on planning. Planning has primacy in management functions. Project planning is a part of total planning process in organizations.

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