To the issue of planning in project management

Planning plays an important role in project management, as it sets the model for the project implementation thus coordinating the steps of the participants and determining the sequence of activities that will be implemented. The scale, structure and effectiveness of its use are mainly relevant to the outcome of the project activities. Therefore, the research of planning is determined by the impact it has on the project as an organizing start of its implementation.

The main goal of the article is the clarification of the position and role, as well as revealing the nature of project planning. This objective includes the analysis of the most important issues concerning the status and development of the planning, as an organic component of project management.

The objective of the study is reflected in the basic tasks that are set, which are:

• 1.    To explore and define the essence of planning and to reveal its position in the stages of the project.

• 2.    To determine the range of plans having the project relations as an object, to analyze their content and to reveal their system.

• 3.    To set forward the specifics of the project planning and to outline its importance for the project and in this context to define the requirements for it.

The word „plan” is widely used. It has a number of meanings, and a different meaning is used depending on the context. Plan (from Latin „planus” meaning flat, even) originally meant plain, later began to be used in geometry as the designation of a plane, as well as the projection of an object on this plane. In this regard, the following meanings of the word are known:

• -    drawing of a horizontal orthogonal projection of a room or a building in architectural graphics;

• -    topographic map of the area;

• -    plain, projection, section (physical plan, spiritual plan, astral plan, material plan, etc.);

• -    draft of something;

• -    short form of text editing where separate semantic parts of the text are listed and entitled;

• -     level of cinematographic size, space or semantic sequence;

• -     series of preliminary considered actions, events, combined

sequentially to reach the targets with possible terms for realization. [5]

The plan for the project realization refers to the last of the above meanings of the word. It is characterized by a complex character and contains a set of goals and tasks and their corresponding detailed activities aimed at achieving project objectives. It is important to emphasize that the project plan cannot be over fulfilled – it is either implemented or not implemented. Resources planned for the project, but not used for it, could have been used for other purposes during that same time and thus benefits have been lost. The over fulfillment of the plan cannot be considered as something positive. [1, 86]

Plans are of little importance, but planning is essential.9 Generally two different approaches could be applied to project planning. The first method „top-to-bottom” could be applied to projects with clearly defined goals, time and budget. There the common tasks are defined and they become a basis for detailed activities. The second method „bottom-up” defines the necessary tasks and the resources needed for their implementation, and then summarizes them. Planning using the „principle of wave” is applied to high-risk projects. In this method, plans are made for the nearest forthcoming period. Planning for every future period is made at the approach of its beginning.

As typical mistakes for projects are considered planning:

• -     using incorrectly formulated objectives;

• -     based on incomplete data;

• -     made only by planners;

• -     without regard to previous experience;

• -    with no coordination between the different components of the project;

• -      with excessive details;

• -     without taking into account the motivation;

• -     without taking into account the availability of resources;

• -      for the sake of planning itself. [1, 86; 4, 227]

The literature states that the planning of the project covers the development of the project structure, the development of the schedule of activities and arranging them in a critical way, the definition of resources, the development of the project budget, the determination of the teams that will perform project tasks, determination of sources of information. [1, 86]

One of the common considerations, corresponding to the above, is that planning is the second phase of the project cycle. Detailed planning (structuring) of projects is done on the principle of short-term (operational) planning. Structuring of the project is the transition from planning of objectives to planning of activities. It is necessary to identify the list of activities scheduled in certain time as well as the resources required for their implementation, and the teams authorized to perform them. [2, 44]

Planning and project management is necessary to define and build its structure. The project structure represents the hierarchical decomposition of the project components necessary and sufficient for effective planning and control over the project. The essence of the structuring of the project (Work Breakdown Structure – WBS) is the following: the project is divided into manageable elements of work, for which it is easy to determine costs and a timetable for implementation is built. Structuring the project helps the allocation of responsibilities and allows the creation of simple system for tracking the progress of the project. It is recommended that the structure of projects includes separation of:

• 1.    Components of products;

• 2.    Project life-cycle stages;

• 3.    Elements of the organizational structure.

The main tasks of the structuring of the project are:

• -     determining complexes of work on the project;

• -    transition from general not always precise objectives to specific tasks;

• -     linking work on the project with the systems of accounting and

managerial accountability;

• -     creation of a single database for planning, budgeting, and cost

control;

• -    evaluation of the necessary time, financial resources and material resources;

• -    allocation of responsibilities of the various elements of the project and commitment to working with available resources and organizational structures;

• -    breaking the project into manageable blocks. [3, 34-36]

The above structures are interrelated and temporally conditioned thus so as to ensure completion of the project within the prescribed period at minimum costs within the defined resources and with the required quality.

Similar views are shared by other authors who consider that the activity of development of plans covers all stages in the creation and implementation of the project. It starts with the manager's participation in the process of developing the project concept, continues with the strategic decisions and also in the details study, including the contract proposals, contracting, performance of the activities and ends with the completion of the project. The planning stage determines all the necessary parameters for the project:

• -    the length of each of the controlled stages;

• -    the need for labor material and financial resources;

• -    deadlines for delivery of materials and components, supplied to products and technological equipment;

• -    timing and volume to attract design, construction and other organizations. [4, 215]

The stages of the project summary can be represented as follows:

• -    First phase: Feasibility study and development of a common concept for the project (determining the necessity of the project, the baseline conditions, the feasibility of what and whether should be done).

• -    Second Phase: Definition of the project (defining objectives and scope, risk identification and feasibility, development of the preliminary report for the stage).

• -    Third phase: Planning of the project (development of the structure, procedures of project, scheduling, identification of resources, development of the budget, determining the teams and sources of information).

• -    Fourth phase: Implementation of the project (selection or development of methods for implementing the project, performance of each procedure, monitoring and control, review and adaptation of the project plan).

• -    Fifth phase: Completion of the project and review of the finished project (project completion, presenting the final evaluation report for the project, archiving information about the project, performing control and auditing). [1, 7576]

Considering the planning of project as a project management stage does not reject the need to return at this stage during the project realization to make appropriate adjustments. Moreover – each phase of the life cycle of the project requires a certain kind of planning with its inherent methods and tools.

After this overview of different statements on the content of the planning process in project management, a vision about the elements of the planning process in project management could be defined, as follows:

• -    analysis of the situation, identifying of set trends and development of the concept and objectives of the project;

• -    development of forecasts for project results in different variants of the activities;

• -    building an hierarchical structure of work;

• -    development of network model and timetable;

• -    determining the resources (human, material, financial and time) required to ensure the realization of the project;

• -    development of project implementation strategy;

• -    development of a project plan and budgeting the main directions of activities, taking into account the limitations and cost of resources.

It can be stated without belittling the importance of all elements of the planning process of the project that the key to the success of this activity is the quality of the analysis and development of forecasts, as they are its foundation.

The project planning is a set of interrelated procedures. The first stage of planning includes the development of initial plans, which are the basis for drawing up the budget, determining the need for resources, organizing their procurement, contracting and others. Plans as a result of the planning process should form a consolidated pyramidal structure having aggregated the information, differentiated by levels of government, layered in terms of development (short, medium, long). The level of planning and the system of plans should be made by using the principle of "feedback" providing, constantly comparing planned with actual data and having greater flexibility, timeliness and efficiency. [4, 216]

Aggregated calendar-network plans are a tool allowing managing of complex projects. They may help to build network plans with varying degrees of synthesis, volume and content. The overall network plan consists of numerous private ones. Each of them is assigned the longest time. These paths are then placed on the individual parts of the network. This gradual integration helps build network plans at different levels. Most often the following plans are distinguished:

conceptual, strategic and tactical. During the conceptual planning the basic project documentation, technical requirements, assessments, summarized calendar plans; procedures and management control are developed. Developing long-term plans is associated with strategic planning. Tactical planning refers to the preparation of detailed plans for the operational management at the level of responsible contractors. The levels of plan aggregation should correspond to the levels of management as the information gets more generalized when going to an upper level of management. [4, 217-218]

The formats used for the preparation of plans vary and can be classified as text, technical diagrams, organizational charts, diagrams, tables and more.

The planning requirements are determined by the specifics of the projects. Important factors for the project are the uncertainty and information provision. They raise the need for planning variations. On this basis, the requirements set by the management project to the content and organization of planning can be divided to requirements concerning the organization of such activities and such ensuring the implementation and effectiveness of project management. The first group refers to planning of the following requirements:

• -    be based on qualitative analyzes and forecasts, through the appropriate choice of methods for forecasting and gathering the necessary information;

• -    to follow the requirement for continuity.

The second group requires project planning to be:

• -    rational, indicating such set of activities that lead to implementation and effectiveness of the project at highest extend;

• -    invariant, allowing to apply different variants of investment and financing;

• -    in line with overall organizational goals;

• -    committed by quantifiable data, allowing a comparison between the achieved and planned results.

In conclusion it can be stated that planning is one of the most important processes in project realization because it helps to improve effectiveness. It includes the integration of many interdependent decisions requiring not only time but time used with high quality. Project planning process is multiple in terms of goals, plans, participants, consumers and others. Its content is determined by the project intentions. Good project management requires planning committed to the successful completion of the project.