Concept of Project Planning and its Importance

3.1. Concept of Project Planning and its Importance

3.1.1 Definition of Planning

Project planning is defined as deciding the course of action to be taken in future to achieve desired end results. Project planning decides in advance about

• What to do
• When to do
• Where to do
• How to do
• Who is responsible

It provides the end to be achieved.

“Planning is the process by which managers define goals and take the necessary step to ensure that these goals are achieved. Planning is the mental exercise that requires imagination, foresight, and sound judgment. It is thinking before doing, looking ahead and anticipating future and deciding the course of action to be taken”. - Richard Steers

Planning is in fact prerequisite of effective management.

3.1.2 Features of planning

Planning is an integral part of management. A manager expects problems in future, analyzes them and expects their possible effects on the activities of the enterprises. This is why features of planning are important. Following are some features of planning:

a. Process: it is a systematic mental process of doing things and involves creative thinking and imagination.

Future/Goal oriented: Planning is essentially thinking ahead and preparing for future. Thus planning provides direction to project managers and organization to achieve the future goal.

b. Intellectual process: Planning is essentially an intellectual process, it involves mental exercise, creative thinking, and imagination.

c. Primary function: Planning provides the framework within which coordinating, monitoring and controlling can be undertaken. Thus planning serves as the basis for other functions of management.

d. Pervasiveness: Planning is required for all types of organizations and at all levels of management.

e. Continuous: Planning is the ongoing process from start to the end of a project. Plans are prepared for specific time period and at the end of each plan period, new plans are prepared.

f. Aims at efficiency: Sound planning and performing work according to plan leads to the achievement of the desired goal at minimum cost within the framework of time. Thus planning is directed towards efficiency at all levels of management.

3.1.3 Importance of planning

For effective management of the project, activities sound judgment and imagination are required. Following are importance of planning:

a. Making objectives clear: Planning specifies goals are to be achieved before deciding the course of action, thus planning makes goal clear and specific and leads the organization in the right path.

b. Helps in coordination: Sound planning avoids repetition of works and interdepartmental conflict.

c. Economy and efficiency in operation: It paves the way for doing things at minimum cost by proper utilization of resources. It also helps in achievement of quality specification within predetermined schedule.

d. Reduces risk and uncertainty: Planning is essentially thinking ahead of an operation. Planning helps to predict the future event and prepare to face the unexpected events. Thus planning is helpful in analyzing sources of risk and reducing the probability of risk occurrence in future.

e. Provides the basis of control: It provides the standards to monitor performance in terms of output, time and money and take corrective actions if necessary after evaluating performance.

f. Facilitates decision making: Planning lays down targets. With the help of these targets, managers can select the best course to ensure achievement of targets.

g. Helps the organization at right path: Planning provides systematic and orderly efforts toward the goals. Employees also understand how their action relates to the organizational goal. So, planning helps the organization to keep on the right path.

3.1.4 Principles of planning:

Following are principles of planning:

• The plan should be readily understandable.
• The plan should be realistic, not optimistic
• The plan should be flexible
• The plan should be comprehensive.
• The plan should incorporate the system of monitoring and controlling.

3.1.5 Objectives of planning:

• Analysis – how, in what order, with what resources
• Anticipation – foreseen potential difficulties, anticipate risk and plan to overcome them accordingly.
• Scheduling resources
• Coordination and control – provide the basis for co-coordinating the work among concerned; provide a basis for predicting & controlling time and cost.
• Production of data - to provide a framework for decision-making in the event of change.

Bibliography:

IshwarAdhikari and Santosh Kr. Shrestha, “A text book of Project Engineering” 2011, Chandeshwori Publication, First Edition.

K. Nagarajan, “Project Management”, ISBN: 81-224-1340-4, New Age International (P) Limited, New Delhi, India, 2001.

E.R. Yescombe, “Principles of Project Finance” 2002, Yescombe-Consulting Limited.