Page 44 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 3: Project Planning

2.5. Work packages, schedule & budget (section 5) Notes

2.5.1 Work packages (section 5.1)
2.5.2 Dependencies (section 5.2)
2.5.3 Resource requirements (section 5.3)
2.5.4 Budget & resource allocation (section 5.4)
2.5.5 Schedule (section 5.5)
2.6 Project training plan (section 6)
2.7 Index [Optional] (section 7)

2.8 Additional components
3.3 Planning Process

The following are crucial considerations for project planning:
1. Demand: No businessman can expect demand forecasting for products unless he is having
strategic planning for the organizational development. Second world war created more
demand for some products. Hence, long-range planning is necessary to meet the demand.
2. Competition: Business entities should always fight for survival. When there are new
entrants in the market there will be more competition. Hence, project planning is necessary
to face competition and to become successful project manager.

3. Technology: Changes in technology also necessitates project planning. Technological
advancements are useful for the development of project manager. More opportunities
will be available to manager.
4. Scarcity: Scarcity of the resources always forms as the basis for project management.
When products are scarce and there will be increase in demand for the products.

Task Discuss about managing the planning process in Project Management.

Managing the Planning Process

First Stage: Definitions

1. Preparation of Mission: ‘Mission’ is the purpose for which organization is established.
Mission includes both a statement of organizational philosophy and purpose. An
organizational philosophy establishes the values, beliefs, and guidelines for the manner
in which the organization is going to conduct its business. The first step of strategy
formulation depends on well defined mission statement or purpose of the project. The
mission may be described as the scope of the operation in terms of nature of project.

2. Setting of Objectives: Objectives are defined as ends which the project seeks to achieve by
its existence and operation. Objectives may be internal or external objectives. Internal
objectives are those which define how much is expected to be achieved with the resources
that the organization commands.
3. Fixation of Goals: Goals are specific, and time-based points of measurement. Generally,
goals are determined by the owner or entrepreneur of the organization. In case of large

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