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Project planning involves creating a resource plan, conducting a risk assessment, communicating the plan to departments, confirming suppliers, and procuring necessary items. Risk assessment helps determine potential rewards versus downsides, and companies communicate plans to departments to determine the best implementation method. Confirmation of suppliers and sourcing items needed for the project are the final stages.
Project planning provides the company with several steps to follow when starting a large-scale operation. While not all companies go through a project planning process, the steps are common for many project types. The first steps often include creating a resource plan and conducting a risk assessment, followed by communicating the plan to the necessary departments, confirming suppliers, and procuring the necessary items. Businesses can alternate each step to meet their needs. Once the planning phase of the project is completed, the company begins the implementation and management of the project.
A resource plan in project planning helps owners and managers discover what items are needed to complete projects. Common resources include direct materials, labor, and overheads. This step requires a company’s management team to evaluate what they have on hand and what they will need to initiate and complete the project. Cost analysis is also part of this plan. Identifying multiple sources for needed resources initiates the project process.
Risk assessment helps a business determine the potential reward versus possible downsides of a project. Risks can be financial, operational, environmental or otherwise. Companies look at each factor and determine the strength of each; they also decide the hierarchy of each risk factor. After reviewing all risks in the project planning stage, owners and managers decide whether the rewards – the financial returns – will exceed the costs of all risk factors combined. Not all risk factors affect every project in the same way or at all.
Once companies select a project and determine that it carries an acceptable risk, they communicate the plan to the necessary departments. This brings more people into the planning stage of the project. Companies use these additional workers and employees to determine the best implementation method. This step also initiates the process of contacting vendors and trying to obtain the resources needed to complete the project. Alterations or adjustments may be necessary to plans to accommodate current business operations.
Confirmation of suppliers is towards the end of the project planning phase. After a company has an idea of the quality and quantity of resources needed, they confirm which suppliers can meet the company’s needs. Large-scale projects may require the use of exclusive contracts to maintain constant resource levels. Here you can also negotiate price discounts based on volume or other factors.
The final stage of project planning is to source the items needed for the project. Placing orders, receiving goods and checking their quality are part of this process. Purchases often continue in perpetuity for the project. This requires a repeatable process for procurement. A company can use its current system or create a branch if necessary to order and receive goods.
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