Project Planning Process

3.2. Project Planning Process

Project planning process in concerned with the development of a project for investment. It identifies and addresses the task required for accomplishment of objectives.

Steps in project planning are:

• Decide objectives.
• Decide life cycle phases of the project.
• Draw work breakdown structure (WBS).
• List out project activities based on WBS.
• Estimate time and resources requirements.
• Develop logical sequence between activities.
• Draw Bar chart/ prepare work schedule.
• Finalize budget, schedule and specification.
• Approve it.

Task involved in project planning are:

1. Feasibility study: It determines implement-ability of the project.
2. Appraisal: It is the evaluation of the projects ability to succeed and done after feasibility.
3. Design: It is concerned with the preparation of detailed engineering design, drawing and specifications as well as work schedules, cost estimate and resource allocation.

Functions of Project Planning

Determining the objectives of the project to be undertaken.

Definition of work requirement.

Estimating resource, funds, materials, machines and manpower requirements.

Scheduling various stages and determining the time frame of overall work.

Reducing risk and uncertainty.

It provides the basis for co-coordinating the work among concerned; provide a basis for predicting & controlling time and cost.

3.3. Work Breakdown Structure (WBS)

Systematic and logical breakdown the project into its components and sub-components in hierarchical order is called work breakdown structure. It is constructed by dividing a project into major components, each of which is further sub-divided into smaller components. The process is continued till a breakdown accomplishes the manageable unit of works for which responsibility can be defined. Work breakdown is the first and major step in planning and the execution of the project. The level of smaller component should be such that each of which should be:

• Manageable so that responsibility can be assigned.
• Independent so that there is minimum dependence on other ongoing activities.
• Integratable so that total package can be seen, and
• Measurable so progress can be measured.

3.3.1 Advantages/Uses of WBS

WBS has following uses and advantages in project management:

• Planning
• Cost estimate
• Schedules for different activities and the overall project can be established.
• Responsibility can be assigned to each activity.
• Can be used to analyze the risk of each activity and project.
• Can be used in network analysis.
• When summed up, the total program can be described.

3.3.2 Role of WBS

• Partition of the project into the smaller component to improve the accuracy of the cost estimate.
• Provide a mechanism for collecting and organizing actual cost.
• Provide a mechanism for performance measurement and control.
• Each activity in WBS is a self-contained unit for which responsibility can be assigned.

3.3.3 Levels of WBS

A most common six level structure of WBS is as shown below:

• Total program
• Project
• Task (activity)
• Sub-tasks
• Work package
• The level of effort.

3.3.4 Characteristics of WBS:

Top three levels of the WBS reflect integrated efforts and not department specific.

The summation of all elements in one level must be the sum of all work in the next lower level.

Each element of work should be assigned to one and only one level of effort.

The WBS must be accompanied by a description of the scope of effort required.

3.3.5 Criteria for developing WBS:

The WBS and work description should be easy to understand.

All schedules should follow the WBS.

No attempt should be made to subdivide work arbitrarily to the lower possible level.

The WBS can act as tangible milestones.

The level of WBS can be used to segregate recurring from nonrecurring costs.

Most WBS elements (at the lowest control level) range from 0.5 to 2.0 percent of the total project budget.

A typical WBS of a project,

Work breakdown structure of building constru

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.