4.

1 PROJECT PLANNING PROCESS

Reinforcing your learning and understanding from Chapter 1, project planning is an iterative process that goes on
throughout the life of the project. The plan is dynamic that will have some changes along the way and planning
needs to be done continuously. Project planning process consists of:

i. Defining clearly the project objective. Both the customer and the individual carrying out, the project must
agree to the project objective.
ii. Dividing and breakdown of the project scope into major pieces or work packages through a work
breakdown structure (WBS). A Work Breakdown Structure is a hierarchical tree of work elements or
activities or items that need to be accomplished or produced by the project team during the project. It
also identifies the individual or department responsible for each work package.
iii. Defining the specific activities that need to be performed for each work package in order to accomplish
the project objective.
iv. Graphically representing the activities in the form of a network diagram which shows the sequences and
interdependence of activities to achieve the project objective.
v. Making a time estimate for how long it will take to complete each activity. Here, it determines which toes
of resources are needed for each activity to be completed within the specific time duration.
vi. Making a cost estimate for each activity. The cost is based on the types and quantities of resources
required for each activity.
vii. Calculating a project schedule and budget to determine whether the project can be completed within the
required time, with the allocated funds and with available resources. If not, adjustments must be made
to the project scope, activity, time estimates or resources allocation until a realistic baseline plan is
established.
viii. The baseline plan outlines the activities (what need to be done), who will do it (responsibility) , time
estimates (when and duration), and costs (how much). Baseline plan can be displayed in graphical or
tabular format for each week or month from the start of the project till completion.
ix. Once the baseline plan has been established, it must be implemented. This involves performing the work
according to the plan and controlling the works so that the project scope is achieved within the budget
and schedule, and customer satisfaction.
x. Next, is to monitor the project progress to ensure everything is going according to the plan. Monitoring
and control involves measuring actual progress and comparing it to the planned schedule. To measure
progress it is necessary to keep track which activities have started and / or completed, and how much
budget have been spend.
xi. If the outcome of the monitoring reveals that the project is behind schedule, overrunning the budget or
not meeting the customer’s specifications, immediate corrective actions must be taken to get project back
on track, or to take and evaluate alternative actions to restore back within the plans. Thus, effective
project controls must be done on a timely and regular basis and taking remedial measures before it is too
late or getting out of control. The project planning process flow char explains the process. Refer to Figure
4.1: Project Planning Process Flow.
 1. Define project objective

10. Monitor the project Review 2. Define project scope

progress, Performance, Revise plan,
contingency plan

9. Implement the project per baseline 3. List ALL activities, form

plan work packages Do WBS

8. Draft baseline plan for the project 4. Do time estimates of each

activity/ work package

7. Compute project network, schedule, 5. Do cost estimates for each

budget for whole project activity/work package

6. Determine sequence of
activities and relationships Draft
project network Assign
responsibilities for each work
package

Figure 4.1: Project Planning Process Flow

 4.2 PROJECT BASELINE PLAN

The success of a project depends on the effort, care, commitment and skills in doing its initial planning. The aim in
doing planning is to come up with the best possible project baseline plan. Project baseline plan is used to execute
the real project activities. Hence, the baseline plan must:

i. Define the specifications / Project Objective and Scope

ii. Define WBS
iii. Define Responsibilities Matrix
iv. Professional estimation of time and budget
v. Use of planning tools and techniques
vi. Project networks
vii. Gantt Charts