Initiating Planning for a Project

When do we start planning for a project?

Is it possible to prepare a feasibility report, without an idea on the project timelines?

How can one estimate project’s viability in terms of IRR, NPV, ROCE etc. without duration estimate?

An approximate idea on the timeline of schedule at-least in terms of major milestones or a ballpark figure is essential while conceiving a project. It means that the Planning starts as soon as any project is being conceived. The plans prepared during this stage may not be very detailed, however the level of detailing depends on the size or the project and the risk associated with it. Bigger and riskier the project, more and more the detailing in plan.

Planning during the feasibility stage would be focused on some elements as these are the most important ones for main stakeholders of the project. These are:

a)   The project must deliver the output matching to Business need and in line with the trend of market demand for the same. This is must from business point of view that the output suffices the qualitative, quantitative and timeliness requirements.

b)  Necessary cash outflow & milestones which will generate cash inflow. The business looks for the feasibility of the project from cash flow point of view. Although the planning in this stage is not very detailed but must be accurate enough else the business would collapse. This definitely would be the focal point for the Owner/Sponsor of the project.

c)     Requirement and availability of the resources in terms of major plant & equipment, workers of different trades, material and its sources and last but not the least the project team leads. This is going to be the focal point for Human Resources, Support Services & Procurement departments.

      It thus can be seen that these requirements automatically becomes the project requirements once the stage of feasibility check is over and the project is initiated. These stakeholders and their requirements thus automatically must be registered in the stakeholder register.

     To summarize, you have documented the requirements of Customers/Clients (Product Requirements); Project Owners/Sponsors (Financial Requirements); and Support Services Team (HR / Procurement / P&M).

Abhay Gharpure

ADGP                          www.decodingcm.com/pm-blogs/                https://decodingcm.blogspot.com


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