Project planning
At the start of a project there is need proper planning since there are hundreds of tasks that need to be completed at just the right time and in just the right sequence. However, in Project management several phases are employed to simplify the work into a series of manageable and logical steps. Among the phases there is project initiation and project planning overview which are core in ensuring the project is well executed. Project initiation the first phase of project life cycle. At this stage business problem is identified, a solution is defined, a project is formed and a project team is appointed is formed to build and deliver the solution to the customer.
Project planning is the second phase which involves creating a set of plans to help guide a team through the implementation closure phases of the project. A well written project plan gives guidance for obtaining resources , acquiring financial and procuring required materials (Hensaker, 2008). It also gives the team direction for producing quality outputs , creating acceptance , handling risks, communicating benefits to stakeholders as well as preparing teams for the obstacles they might encounter over the course of the project . At this stage they are also able to understand the cost, scope and timeframe of the project.
For the project to be successful there is need of a project sponsor. At Project initiation phase there is need of business case document and feasibility study needs to be conducted. At this stage there is also need of clearly identifying project objectives and describe the need or opportunity for which the project will provide solution. In determining project requirements and deciding which project to work on, weighted decision matrix is used. Also, in order to find out whether the project is financially feasible Net Present Value ( NPV), Return on Investment ( ROI) and payback analysis are used. Project charter is also paramount in this phase of the project. Lastly on overview of project planning there is need of setting SMART objectives and elaborating on basic processes and purpose of project planning.
Project need funds for it to be executed. Therefore, project sponsor is needed to finance the project and approve the business case (Kauli, 2008). It is also the duty of the sponsor to determine if the project is worthy undertaking and whether the project will be profitable to the organization. A business case document is paramount since it defines the problem or opportunity in detail and identifies preferred solution for implementation. It is used to identify the list of the alternative solutions available, to know analysis of the business benefits, costs, risks and to identify the main project requirements. Business case justifies the need for the project and an estimate of potential benefits.
Feasibility study helps in an evaluation of the project goals, timelines and costs to determine if the project should be executed. It is essential to the study since it balances the requirements of the project with available resources see if pursuing the project its beneficial. The completion and approval of the feasibility study triggers the beginning of planning phase. Establishing clear project objectives is essential since misunderstanding may arise between client and project staff due to ambiguity of the objective (Chiocccio, 2007). Managers commitment and employee willingness to work is also an essential element in achieving the set objectives.
In order to determine key requirements and decide on which project to work on, weighted matrix is used. Basically a weighted decision matrix is a decision used by decision makers. It introduces the concept of weighing the criteria in order of importance. The more important a criterion is, the higher the weighting it should be given. It allows decision makers to structure and solve their problem by specifying and prioritizing their need with a list of criteria. It also evaluates, rates and compare different solutions and select the best matching solution.
On the aspect of financial considerations NPV, ROI and payback analysis are key in analyzing the financial status of the project. NPV is the sum of present values of the individual cash flow of the same entity. It is a standard method for using the time value of money to appraise the long term projects. Its essential since it compares the present value of money in the future, taking inflation and returns into account. Therefore, it is a good method of analyzing the financial projections of the project. Through this method the sponsor is able to know the viability of the project.
Return on Investment ( ROI) is another method of analyzing the financial status of the project. It is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. It is executed by subtracting the project’s costs from the benefits and then dividing by the costs. The results of the ROI shows whether is a nice investment or a bad one. On the other hand payback analysis is essential in determining the amount of time it will take for a project to recoup its investment. It occurs at a point where the benefits starts outweighing the costs. From this perspective the project is termed to be on the right direction.
Lastly, the project charter is essential on this phase since it gives the statement of the scope, objectives and participants in a project. It outlines the project objectives, identifies the main stakeholders and defines the authority of the project manager. Its main purpose it is to provide an understanding of the project, the reason it is being conducted and its justification, establish authority level.
On overview of project planning there are key main areas which are paramount in this area. It is at this phase where the project plans are documented, project deliverables and requirements are defined and the project schedule is created. The main purpose of project planning phase is to establish business requirements, establish cost, schedule, list of deliverables, establish resource plans and obtaining management approval before proceeding to the next phase. Project planning has a series of processes which include; scope planning, preparation of work breakdown structure, project schedule development, resource planning, budget planning, procurement planning, risk management, quality planning and lastly communication planning.
When articulating project goals SMART objectives should be set. They should be Specific, Measurable, Achievable, Realistic and time bound. This is to ensure that the objectives meet the quantifiable criteria needed to measure success of the project. The two phases are critical in ensuring the success of the project.
References
Chiocccio, F (2007) Project team performance; Project management journal (38) 1, 98-100
Hensaker J.S (2008), Project management (14), 86.
Kauli, M. A. (2008), project Leadership in Multi project; International journal of project management (26),330-340
Kaulio, M. A. (2008) Project leadership in multi-project
settings: Findings from a critical incident study,
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(26), 338-347