1. Project
planning
and
scheduling:
tools
and
good
practices
„If you fail to plan, you plan to fail”
Benjamin Franklin
Planning, or as aptly capture the authors of the study “preparation of activities”,
is a vital aspect of project management. Most of the problems that occur during
the project implementation phase origin from improper or even in a lack of the
project planning process. It can be observed that organizations, especially in the
conditions of risk and uncertainty, do not take steps to prepare their activities or
take them in a very ineffective way.
Therefore, undertaking research on the topic of project planning should be con-
sidered both important for the development of the discipline of management
sciences as well as for providing practical guidance to companies that often un-
dertake complex projects in a turbulent, changing environment.
The reviewed research by prof. Michał Trocki, PhD. and prof. Paweł Wyrozębski,
PhD. significantly extends the current knowledge of project management and
can serve as a benchmark for very well-conducted research.
[excerpt from prof. Seweryn Spałek’s, PhD. review]
SGH PUBLISHING HOUSE
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ISBN 978-83-7378-997-5
Collective work edited by
MICHAŁ TROCKI PAWEŁ WYROZĘBSKI
Project planning
and scheduling:
tools and good practices
Source: M. Trocki, P. Wyrozebski (eds.), Project Planning and Scheduling:
Tools and Good Practices, SGH Publishing House, Warsaw 2017
ISBN: 978-83-8030-181-8
4. INTRODUCTION
Projects are future-making tools. It is the implementation of projects that
effectuates the civilization progress: both the material progress – comprising the
development of commercial structures, public goods, infrastructure, new products,
etc. – and the non-material one – comprising new approaches as well as social and
political solutions, new organisational solutions, new services, cultural heritage, etc.
For projects to be an effective future-making tool, they need to comply with
professional principles, proven in practice. One of such principles is the principle
of action preparation. ”An action preparation is a quality of good work, in so far
as each action needs to be prepared and an improper preparation has to diminish
its correctness”.1
The basic action preparation method is planning ”a creative thinking of the
future”,2
”designing the future we desire and effective methods to make it happen”.3
It
is broadly applied in project management. The subject matter of planning in project
management is diversified and comprises: functional matters, i.e. relating to the
course of a project, institutional matters, relating to project design, and personal
matters, relating to project participants.
This paper consists of three parts. The basic planning issues, planning in project
management, with a particular focus on project scheduling, are discussed in the
first part. The said part contains the characterisation of typical planning situations
– planning in certainty, planning under risk and planning in uncertainty – and
sets forth the planning concepts and models applicable in particular planning
situations. In part two the authors characterise the most important concepts and
models of project scheduling applicable in deterministic, stochastic and innovatory
planning situations:
1 J. Zieleniewski, Organizacja zespołów ludzkich. Wstęp do teorii organizacji i kierowania, Polish
Scientific Publishers PWN, Warszawa 1972, p. 279.
2 D. Adam, Kurzlehrbuch Planung, Wiesbaden 1983, p. 11.
3 R. L. Ackoff, Zasady planowania w korporacjach, PWE, Warszawa 1993, p. 35.
077_Project planning_Trocki_Wyrozebski.indb 7 04/10/2017 08:58
5. Introduction
8
•
• deterministic concepts and models (CPM, MPM and others),
•
• stochastic concepts and models (PERT, GERT and others),
•
• resource-constrained concepts and models (CCPM),
•
• matrix-based concepts and models (GOPP/ZOPP, PCM/LFA),
•
• agile concepts and models (Agile, SCRUM and others),
•
• heuristic concepts and models (PATTERN, CPE and others),
In the third part the authors review the results of external studies and the
results of own empirical studies within the scope of project scheduling in the
Polish organisations.
This monograph is the outcome of the research entitled Project scheduling under
risk and in uncertainty – a review of concepts and models, conducted in 2014, as
part of the research activities set forth in the Charter, by a team of researchers at
the Department of Project Management of Warsaw School of Economics under
the directorship of Prof. Michał Trocki, Ph.D.
Michał Trocki, Paweł Wyrozębski
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6. Michał Trocki
1.
THE BASICS OF PROJECT PLANNING
1.1. Projects and project management
1.1.1. Projects and the importance thereof
According to the generally adopted definition, projects are unique undertak-
ings characterised by a high level of complexity, with a determined implementa-
tion period – the beginning and end of which is explicitly specified – which require
an engagement of considerable, however limited, material, human and finan-
cial resources, are implemented by teams of high-skilled contractors specialised
in a variety of industries (on an interdisciplinary basis) in a way that is relatively
autonomous from repetitive activity, connected with high technical, organisational
and economic risk and thus requiring the application of special methods of prepa-
ration and implementation.4
The surveys conducted among the staff management on an international scale
indicate a high and constantly growing importance of projects in corporate man-
agement. For instance, in 2002 33% of the staff management stated that projects are
of great importance in the organisations managed by the same, 37% – big impor-
tance, 28% – moderate importance while barely 2% – little importance.5
Similar
surveys conducted six years later, in 2008, confirmed by the surveys conducted
in 2012, demonstrated an increase in the importance of projects in corporate man-
agement. Great importance of projects in organisations was indicated by 47% of
the staff management, big importance – by 36%, moderate importance – by 17%
and little importance – by 0%.6
The increased importance of projects for organisations is accompanied by
the demand for professional knowledge within the scope of project management.
4 Nowoczesne zarządzanie projektami, M. Trocki (Ed.), PWE, Warszawa 2012.
5 According to the Project Management Solutions research of 2002.
6 According to the Strascheg Institute research of 2008 and 2012.
077_Project planning_Trocki_Wyrozebski.indb 9 04/10/2017 08:58
7. Michał Trocki
10
This is proved by the labour market research. According to the research conducted
in 2009 by Manpower – an international HR consulting company, a profession of
project manager is one of the most wanted professions in Poland, ahead of com-
mercial, engineering, financial and banking professions.7
Such a high demand for specialists in project management results from several
circumstances. Firstly, from the dissemination and importance of projects. Pro-
jects appear in all fields of human activity: in economy, in public and local gov-
ernment administration, in defence, in education, in culture, in sport, etc. Projects
are implemented to benefit both the customers and other partners of an organisa-
tion (as the so-called external projects), and also in order to solve own problems
(as the so-called internal projects). Secondly, the above stems from the increas-
ing complexity and variability of problems and undertakings that are necessary
to solve them and from awaiting their creative solutions. This can be achieved by
applying professional knowledge in the field of project management. Thirdly, the
importance of projects stems from project management complexity and difficulty
of the knowledge that needs to be applied.
An efficient and effective project implementation, which consists in supplying
the desired project result on a specified quality level in due time and within the
accepted budget is an extremely difficult task. This stems from project characteristics.
Table 1.1 Impacts of Project Characteristics on the Success Thereof
Project characteristic
Consequences for project
management
Possible negative effects
exceptionality uncertainty deviations from desired quality,
cost overrun, time overrun
complexity difficulties in identification of
potential problems
difficulties in coordination at the
planning and implementation
stage
long duration unforeseeability deviations from plans
broad influence necessity to consider conflicting
interests
obstructing the project
implementation by negative
stakeholders
high and diversified competence
requirements
necessity to engage external
contractors
difficulties in effective control and
cooperation
high risk special control by the top
management, expecting
to succeed
avoiding bold decisions,
procrastination
Source: the author’s own elaboration.
7 Manpower report, June 2009.
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8. 1. The Basics of Project Planning 11
This results in a persistent high contribution of projects being partially suc-
cessful or just unsuccessful. According to the research concerning IT projects
conducted by the Standish Group in 2008, barely 32% of projects were totally
successful, 24% of them were partially successful, i.e. completed with deviations
in the assumed quality, deadlines or/and budget, while 44% were abandoned or
unsuccessful.8
his adverse tendency can be changed by applying professional pro-
ject management rules.
1.1.2. Problem areas and project management processes
Project management is a branch of management that deals in the application
of available knowledge, skills, methods and tools in order to achieve the assumed
project objectives, i.e. the quality of intended result, date and costs. Professional
knowledge in project management is made up of three problem areas: functional
project management, which comprises the problems related to the course of a pro-
ject [project life cycle] and the ways of solving them, institutional project manage-
ment, which comprises the problems related to the organisation of project activity
and the ways of solving them and personal project management, which comprises
the problems related to the selection and cooperation of project participants and
the ways of solving them.9
Project life cycle, which comprises a variety of processes, is of major impor-
tance for project management. A process approach, on which project management
is based, considers the whole project-related processes: the project life cycle pro-
cesses, also referred to as basic or operating processes, consisting in the transfor-
mation of input values of a project into its expected result, the project life cycle
supporting processes, also referred to as ancillary processes, which do not directly
contribute to the development of the project result, but create conditions that are
necessary to achieve it, and the project life cycle management processes, which
consist in the harmonisation of the project life cycle processes and the processes
supporting that cycle for the purpose of achieving the intended project result.10
Project life cycle processes are divided into two groups: processes of design-
ing the outcome of a project and processes of project implementation. Processes
8 CHAOS Report 2008, The Standish Group.
9 M. Trocki, B. Grucza, K. Ogonek, Zarządzanie projektami, PWE, Warszawa 2003, pp. 32–33.
10 M. Trocki, Podejście procesowe w zarządzaniu, [in:] Wyzwania zarządcze w zmieniającym się
otoczeniu, A. Skowronek-Mielczarek (Ed), SGH Publishing House, Warszawa 2010, pp. 129–144
077_Project planning_Trocki_Wyrozebski.indb 11 04/10/2017 08:58
9. Michał Trocki
12
of designing the outcome of a project (preparatory processes) are the processes
of working out and describing the intended results of a project in the form of doc-
umentation while implementation processes are the processes of materialising
the intended project results that were described in the documentation. The above
processes are the subject of interest of a realm referred to as project development.11
Project life cycle supporting processes comprise a variety of support processes:
legal support processes, personnel support processes, financial-accounting support
processes, IT support processes, administrative-office support processes, technical
support processes, etc. Project life cycle management processes refer, in accord-
ance with the classical division thereof, to: the establishment of goals, planning,
organising, motivating, control and coordination.
Figure 1.1 Process Model of Project Management
– establishment of goals
– organising (motivating)
Supporting processes
– accounting-financial services
– administrative-office services
Project
Project
execution
– planning
– controlling (control, coordination)
– legal services
– personnel services
– IT services
– technical services
Management processes
Need
Expected
outcome
(object)
Designing
the outcome (object)
of a project
Source: the author’s own elaboration on the basis of Nowoczesne zarządzanie projektami, M. Trocki (Ed.), PWE,
Warszawa 2012, p. 67.
The above general division is otherwise concretised in different project mana
gement methodologies. For instance, the methodology in accordance with the
Project Management Body of Knowledge, by the Project Management Institute,12
defines 47 processes that make up five process groups and ten knowledge areas.
11 W. Nasierowski, Project Development: Why Does It Really Matter to Companies?, “Economics
and Organisation of Enterprise” 2008, No 8.
12 A Guide to the Project Management Body of Knowledge (PMBoK), 5th
edition, Project Mana-
gement Institute 2013.
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10. 1. The Basics of Project Planning 13
Initiating processes are used to define a project or its phase and to approve
a project by an organisation, and they comprise: creating a project charter and
identifying the stakeholders.
Planning processes aim to answer the questions how, in what way to pursue the
intended goals, which measures to take to achieve them, when, in what sequence,
etc., and they comprise: drawing up a project management plan, aggregating the
requirements, specifying the scope, creating the work breakdown structure, deter-
mining the actions, determining the order of actions, estimating the resources of
actions, estimating the duration of actions, preparing a schedule, estimating the costs,
determining the budget, quality planning, drawing up a plan of human resources,
communication planning, risk management planning, risk identification, carrying
out a qualitative risk analysis, risk responsiveness planning, procurement planning.
Executing processes group and coordinate the usage of resources and peo-
ple in a project in order to execute the assumed plan, and they comprise: leader-
ship and management of project implementation, carrying out quality assurance,
acquiring a project team, structuring a project team, project team management,
delivery of information, building the stakeholder expectations, carrying out the
procurement procedure.
Monitoring and controlling processes monitor the progress of tasks in a pro-
ject, examine any possible deviations, so as to be able to take any necessary preven-
tive and/or corrective measures, and they comprise: monitoring and supervising
the project work, carrying out an integrated control of changes, verification of the
scope, control of the scope, control of the schedule, cost control, quality control,
submitting reports on execution, monitoring and control of risks, procurement
administration.
Closing processes consist of actions taken to close and settle all activities
undertaken in the course of a project or a phase thereof, and they comprise: clos-
ing a project or a stage, closing procurements.
Knowledge areas are cross-cutting project management issues in various pro-
cess groups. They include: integration management, scope management, time
management, cost management, quality management, human resource man-
agement, communication management, risk management, procurement man-
agement and stakeholder management.13
The structure of project management
13 P. Wyrozębski, PMI; Project Management Body of Knowledge, [in:] Metodyki zarządzania pro-
jektami, Bizarre, Warszawa 2011, pp. 56–58.
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11. Michał Trocki
14
processes broken down into process groups and the knowledge areas are pre-
sented in Table 1.2.
Table 1.2 Structure of Project Management Processes According to PMBoK
Process groups Number of processes
initiating processes 2
planning processes 24
executing processes 8
monitoring processes 11
closing processes 2
Total 47
Knowledge areas Planning processes
(quality of planning processes14
)
Outcomes of planning Number of
processes
integration
management
developing the project charter
developing project
management plan
project charter
project management plan
6
scope management scope planning
scope defining
project result, project
hierarchical structure – work
breakdown structure (WBS)
6
time management activities defining
activities sequencing
estimating activity resources
project scheduling
project activities, a schedule
or a project network chart,
estimates of activity times
activity start and end data
7
cost management resource planning
cost estimating
cost budgeting
resources required for activities
cost of resources
project budget
4
quality management quality planning quality management plan 3
human resources
management
organizational planning
project team acquisition
determination of roles and
obligations
development of project team
4
communications
management
communications planning communications management
plan
3
risk management risk management planning risk management plan 6
procurement
management
procurement planning procurement plan 4
stakeholders’
management
stakeholder’ management
planning
stakeholder management plan 4
Total 47
Source: PMBOK 5 and the New Knowledge Area, The Project Box, A Human Performance Consulting Com-
pany 2012, page 1.
14 S. Globerson, O. Zwickael, The Impact of the Project Manager on Project Management Plan-
ning Process, “Project Management Journal” 2002, No 9; O. Zwickael, S. Globerson, Evaluating the
Quality of Project Planning – a Model and Field Results, “International Journal of Production Rese-
arch” 2014, No 4.
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12. 1. The Basics of Project Planning 15
Particular importance of planning issues in project management is presented
in the table below (24 out of 47 processes).
Table 1.3 PRINCE2 (Projects in Controlled Environments) Method Diagram
Principles Themes
continued business justification
learn from experience
defined roles and responsibilities
manage by stages
manage by exception
focus on products
tailor to the environment
business case
organization
quality
plans
risk
change
progress
Processes Techniques
starting up a project
initiating a project
directing a project
controlling a stage
managing product delivery
managing a stage boundary
closing a project
product-based planning
quality reviews
change control
Source: OGC PRINCE2 Skuteczne zarządzanie projektami, London TSO, pp. 11, 16.
Seven processes are distinguished in the PRINCE2 method: starting up a pro-
ject, initiating a project, directing a project, controlling a stage, managing product
delivery, managing a stage boundary and closing a project.
Starting up a project is a process the task of which is to work out a project ini-
tiative reported by the management of an organisation. This process consists of six
steps: appointing a board chairman and a project manager, designing and appoint-
ing a project management team, consulting the lessons logs of previous projects,
preparing an outline business case, defining the project approach and preparing
a project brief, planning the initiation stage.
Directing a project is done by the board and consists in managing and con-
trolling the project initiation on a strategic level. This process consists of five steps:
authorising initiation, authorising a project, authorising a stage or exception plan,
giving ad hoc direction and confirming project closure.
Initiating a project consists in concretising and specifying the information
concerning the project initiative. This process consists of eight steps: developing
a risk management strategy, developing a configuration management strategy,
developing a quality management strategy, developing a project communications
management strategy, implementing control elements, planning a project, refining
the business case and assembling a project initiation documentation.
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13. Michał Trocki
16
Controlling a stage defines the tasks to be faced by the project manager as
part of an on-going management of project control stage. This process consists
of eight steps: authorising work packages, assessing progress of work packages,
receiving completed work packages, reviewing stage status, identifying and ana-
lysing project issues, monitoring and controlling risks, reporting highlights, esca-
lating project issues and taking corrective actions.
Managing product delivery has the purpose of facilitating the cooperation
between the project manager and the team managers by placing formal require-
ments to accept, execute and deliver outcomes of completed project work. The fol-
lowing steps can be distinguished under this process: accepting a work package,
executing a work package and delivering a work package.
Managing stage boundaries has the purpose of controlling the start and end of
each of the control stages of a project. This process consists of five steps: planning
the next stage, updating a project plan, updating a project business case, reporting
stage end and producing an exception plan.
Closing a plan is to ensure that a project will be completed in a methodical and
organised way. This process comprises five steps: preparing a planned closure of
a project, preparing an unplanned closure of a project, handing over the outcomes,
carrying out a project evaluation, ordering a project closure.15
An interesting systematisation of problems and processes relating to project
management, which synthesises other concepts, is presented by the model of the
so-called project management bar.16
For the purposes of further analysis, we adopt a model process-based project
life cycle structure, which is a generalisation of the structures adopted in various
project management methodologies and standards. According to this model pro-
ject life cycle structure, a project management consists of four phases.
Definition phase comprises project initiation and definition processes, the
participants of which are project initiators, prospective sponsors, prospective users
and internal specialists. This phase duration is usually short – from several days
to a few weeks.
15 P. Wyrozębski, Metodyka PRINCE2, [in:] Metodyki zarządzania projektami, Bizarre, Warszawa
2011, pp. 111–118.
16 The name comes from a graphical presentation of a model (German Projektmanagement-
Wuerfel). K. Spang, S. Oezcan, GPM-Studie 2008/2009 zum Stand Und Trend des Projekmanage-
ment, GPM/Universitaet Kassel Fachgebiet Projektmanagement, 2009, p. 2.
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14. 1. The Basics of Project Planning 17
Table 1.4
Systematisation of Project Management Issues: The Project Management
Bar Model
Problem areas Hard facts Soft skills
Basics 1. Project
2. Project management
3. Project managers
4. Project typology
5. Project success factors
6. Work study
Strategic level Strategic
problems
1. Strategic project management
2. Project budgeting
3. Programme management
4. Project portfolio management
5. Multi-project management
6. Change management
7. Acquisition/taking-over
8. Tenders/commissions
9. Contract management
1. Personnel management
2. Personnel development
Operative level Operative
problems
1. Project planning
2. Project controlling
3. Cost management
4. Resource management
5. Terms management
6. Stakeholder management
7. Interruption and crisis management
8. Project closing
1. Conflict management
2. Employee motivating
Integrative level Integrative
problems
1. Risk management
2. Project controlling
3. Information management
4. Communications management
5. Knowledge management
6. Project organisation
7. Quality management
1. Team development
2. Workplace development
Source: K. Spang, S. Oezcan, GPM-Studie 2008/2009 zum Stand Und Trend des Projekmanagement, GPM/Uni-
versitaet Kassel Fachgebiet Projektmanagement, 2009, p. 2.
Preparation phase comprises processes referred to organising the project team,
planning the project structure, scheduling the project dates, project resource
planning and organising the project execution, the main participant of which is
the project team that cooperates with the project sponsor, the future users of the
project, the prospective contractors and the suppliers as well as internal and exter-
nal specialists. This phase duration is counted in weeks, months and even in years.
Execution phase comprises project controlling processes (project control and
coordination processes), and its main participants are contractors, subcontrac-
tors and suppliers of the project, as well as the project team controlling the project
execution. It usually involves most time and project costs.
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16. 1. The Basics of Project Planning 19
Figure
1.2
Process-Based
Model
of
Project
Life
Cycle
Project
closure
Accounting-
financial
support
IT
support
Administrative-
office
support
Technical
support
Project
structure
planning
Project
resource
planning
Budgeting
Motivating
Control
Coordination
Project
life
cycle
processes
Project
life
cycle
supporting
processes
Project
management
processes
Initiating
a
project
Defining
a
project
Setting
the
objectives
Planning
Organising
Project
dates
scheduling
Organising
the
project
team
Organising
the
project
execution
Controlling
the
project
execution
Designing
the
project
result
Project
implementation
Legal
support
Personnel
support
Source:
the
author’s
own
elaboration
on
the
basis
of
M.
Trocki,
B.
Grucza,
K.
Ogonek,
Zarządzanie
projektami,
PWE,
Warszawa
2003,
p.
35.
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17. Michał Trocki
20
Closure phase comprises project closure processes and involves all the previ-
ous project participants. It usually lasts weeks or months.18
The subject of further analysis carried out in this publication shall be the prob-
lems related to project planning and the concepts, principles and methods of solving
them. Planning is a general management function, which is used for the manage-
ment of both the static organisations – institutions – and the dynamic organisa-
tions – processes, undertakings, and projects. Quality of project scheduling, which
translates into project implementation efficiency and effectiveness, requires the
application of a comprehensive valuable general knowledge on planning. Its most
important elements shall be presented hereunder.
1.2. General planning issues
1.2.1. Plans
The term ‘plan’ has many meanings. The dictionary of foreign words includes
six meanings of that term in Polish. Two meanings are important from the point
of view of project management: “a programme of tasks, work in certain disci-
pline, which should be accomplished within a specific timeframe; an order, a dis-
tribution of activities to be performed” and ”schematically reproduced picture
of an (…) object”.19
The term ‘plan’ refers to future states. Plans, both in the first
meaning – as sets of activities – and in the second meaning – as a reproduction of
objects – are developed by planners for the purposes of making decisions by the
holder. According to the management theory, a plan is an accepted “description
of a possible future selection and distribution of activities united under a com-
mon purpose or a possible future selection and distribution of component parts
making up a product of such united activities”,20
that is “an intellectual simula-
tion of future actions”.
Basing on the two afore-mentioned meanings of a plan, one can distinguish
after J. Regulski subjective and action plans. Subjective plans refer to basic pro-
ject processes (systems controlled according to the system terminology) and “they
18 M. Trocki, B. Grucza, K. Ogonek, Zarządzanie projektami, op.cit., pp. 32–33.
19 Słownik Wyrazów Obcych [Dictionary of Foreign Words], Polish Scientific Publishers PWN,
Warszawa 1980, p. 576.
20 T. Kotarbiński, Traktat o dobrej robocie, Ossolineum, Wrocław 1958, p. 74.
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18. 1. The Basics of Project Planning 21
aim at describing them, describing their component parts or the course of action.
Therefore, they answer the question how a controlled system should look like in the
future, how it should work, what features it should have or how it should devel-
op”.21
Further, J. Regulski breaks down the subjective plans into: structure plans,
operation plans and development plans. Astructure plan is a reproduction of the
whole relationships between the project elements and between the said elements
and the project considered as a whole; it shows how a project should look like in the
future, what elements it should consist of and how the said elements should corre-
late. An operation plan is an instruction for use of a specific object or a description
of how its component parts cooperate. Whereas a development plan describes the
system structure transformations: consecutive transformation phases, the means
and instructions for use, the cooperation of different people, institutions, etc22
.
A term that is connected with project management is an action plan, i.e.
a description of what should be done to achieve the intended project results
(in a cybernetic approach – the intended structural changes of a controlled sys-
tem). All afore-mentioned plan types have strong links to each other. “If we design
e.g. an office building, first it is necessary to determine the needs of the future user
and the way in which he/she shall use such a building. Therefore, it is necessary
to develop a plan for a given institution to function in the designed building, cer-
tainly to such an extent in which this shall affect the building design. A technical
design of a building is just a structure plan, as it specifies the location of particu-
lar parts of the building in relation to one another and their mutual correlations.
The next phase is a development plan – in this case a plan referring to organis-
ing the building construction or assembly. Finally, the last elaboration shall be an
action plan, namely a specification of tasks for particular institutions and people
connected with the construction and its preparation”.23
In the management practice, we deal with different plan types, the variants of
which are presented in the morphologic table below.
21 J. Regulski, Cybernetyka systemów planowania, Wiedza Powszechna, Warszawa 1974, p. 28.
22 Ibidem, pp. 28–31.
23 Ibidem, pp. 32–33.
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19. Michał Trocki
22
Table 1.6 Plan Types
Criteria Plan types
A.
Horizon,
meaning
A1:
short-term,
operative plan
A2:
medium-term,
tactical plan
A3:
long-term,
strategic plan
B.
Subject
B1:
structural plan
(structure)
B2:
time-based
plan (deadlines)
B3:
resource plan
(resources)
B4:
spatial plan
(sites)
B5:
organisational
plan
(contractors)
C.
Business
C1:
research and
development
plan
C2: investment
plan
C3:
production
plan/plan for
provision of
services
C4:
sales plan
C5:
financial plan,
etc.
D.
Repetitiveness
D1:
one-off plan
D2:
repetitive plan
E.
Detailedness
E1:
general rough
plan
E2:
detailed plan
Source: the author’s own elaboration.
From the point of view of the horizon and meaning, plans are divided into:
short-term, operative plans, concerning the accomplishment of short-term goals
(usually 1 year) and current activity continuity and effectiveness, medium-term,
tactical plans, aimed to achieve medium-term goals (usually 1–3 years) and positive
business results, and long-term, strategic plans, aimed to achieve long-term goals
(usually 3 years) and to maintain or expand business activity. From the point of
view of the subject of planning, plans are divided into: structural plans, showing the
structure of objectives, tasks, activities, objects, etc., time-based plans, showing the
implementation of objectives, tasks, activities and objects in time, resource plans,
showing the allocation of resources to particular objectives, tasks, activities and
objects and their distribution in time and space, spatial plans, showing the imple-
mentation of objectives, tasks, activities and objects in space, and organisational
plans, showing the breakdown of purposes, tasks, activities and objects, as well as
the allocation of resources among particular contractors and their relationships.
From the point of view of the type of business covered by the plan, plans can be
split into: investment plans, research and development plans, production plans,
sales plans, financial plans, etc. From the point of view of their repetitiveness,
one may distinguish one-off plans and repetitive plans. From the point of view of
detailedness, plans are divided into general plans, rough plans and detailed plans.
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20. 1. The Basics of Project Planning 23
1.2.2. Attributes of a good plan
Attributes of a good plan were formulated by T. Kotarbiński, a prominent Pol-
ish philosopher, the author of praxeology,24
a science of efficient action being the
basis for the theory of management. According to T. Kotarbiński, a plan is good
when it leads to an efficient action, in particular when it is: earmarked (special-pur-
pose), feasible, internally coherent, flexible, duly detailed, adequately long-term,
time-framed, complete, rational and operative.
A special-purpose plan is a plan that defines proper measures to serve its pur-
pose and results in the achievement of the established goal. A good plan needs to be
feasible, namely practicable. Nevertheless, one should remember that feasibility
of a plan can be seen only ex post, that is only when a plan is no longer needed.
When evaluating whether a plan is feasible or not “we are compelled to settle for
feasibility suppositions which are only partially founded, by reasoning either on
the basis of inductive knowledge on dependency of events and on the basis of
familiarity with the actual ground, or by reasoning by analogy following the pro-
cedure of proven similar intentions implemented in similar conditions, or finally
by acquiring intentionally this kind of experience by trying out actions accord-
ing to a given plan, before commencing its realisation in the strict sense of that
term”.25
A plan should be internally coherent, because internal contradiction of
a plan prevents its feasibility. This means that a plan has to be theoretically con-
sistent, i.e. internally coherent, without any contradictions, and practically con-
sistent, i.e. containing only the elements which are not in conflict with each other
and the previous actions are an intentional preparation of the future actions. Since
a plan refers to future events which cannot be fully recognised while drawing it
up, its scope and content need to allow for modifications. In other words: a plan
should be flexible, elastic. A good plan should be duly detailed – not too detailed
and not too general, i.e. adapted to certainty of the information concerning the
future conditions of the plan realisation. Since certainty of planning information
decreases as the planning horizon extends, a good plan should be adequately long-
term, comprising as long time interval as possible, adequately to the recognition of
the future circumstances of action. Each plan, and so every good plan, too, needs
to be time-framed, it must have a preclusive time for completion. A good plan
24 T. Pszczołowski, Zasady sprawnego działania. Wstęp do prakseologii, Wiedza Powszechna, War-
szawa 1982; T. Kotarbiński, Dzieła wszystkie. Prakseologia. Część II, Ossolineum, Wrocław 2003.
25 T. Kotarbiński, Sprawność i błąd. Ogólne pojęcie planu, PZWS, Warszawa 1966, pp. 113–114.
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21. Michał Trocki
24
should be complete, comprising the whole planning issues, considering anything
that is necessary for a planned action to result in the achievement of the established
goal. A good plan is a rational plan, established in cognitive terms, i.e. based on
reliable knowledge. And finally, a good plan is an operative plan that can be effi-
ciently realised. In other words, “a good plan needs to be a plan of a good job”.26
A good plan requirements were determined in a synthetic way by Z. Rytel,
a Polish classic of management. “If we want to achieve a certain goal, we need
to walk the way intended for that purpose according to a specific plan, we cannot
walk several ways at the same time and work according to several plans; this is an
axiom imposed by experience. Such a plan should also be determined and exe-
cuted under the supervision of one centre. A plan should be executed consistently
and always an eye should be kept on the intended purpose, all the more that the
most economical way leading to the target is never the simplest one and there is
a threat of getting out of the way once chosen at bends and curves”.27
Plans make it possible for an organisation to acquire the resources that are
necessary to pursue its goals, get its members act in accordance with established
goals and procedures, monitor and measure the accomplishment of goals, which
facilitates the implementation of corrective actions, if progress is unsatisfactory.28
1.2.3. Planning
“If we don’t want to proceed through trial and error, hoping for a fluke, our
action should be directed accordingly. The phase of directing actions is usually
called planning. Planning is an intellectual endeavour preceding the intended
action, thus it is a future-oriented action. Since the direction of action is not set out
in order to worsen a situation, but to improve it or at least positively shape, plan-
ning is not only a future-oriented action but it is also an action referred to posi-
tively assessed, certain future situations. Due to the complexity and dynamics of
the world, planning cannot be determined in analytical terms. It is always selec-
tive, thus unspecified in its implications”.29
26 Ibidem, pp. 113–118.
27 Z. Rytel, Kierownictwo, syllabus of a lecture, an unpublished typescript, Warszawa 1947, p. 9.
28 J. A. F. Stoner, Ch. Wankel, Kierowanie, PWE, Warszawa 1992, p. 33.
29 H. Steinmann, G. Schreyoegg, Zarządzanie. Podstawy kierowania przedsiębiorstwem, Publish-
ing House of the Wrocław University of Technology, Wrocław 1995, p. 107.
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22. 1. The Basics of Project Planning 25
“Each action should be preceded by cogitation (…). When the intended pur-
pose requires a complex action, it appears necessary to prepare a plan. The more
complicated an individual or collective act is, the more necessary it becomes to plan.
Prior cogitation and planning allow a far-sighted action”.30
“Foreseeing should reveal
in advance, that is before making a decision, the consequences of future actions.
Foreseeing should concurrently serve the purpose of a kind of protection against
hasty decisions. Decisions and actions are subject to impacts of previous analy-
sis, but they are not replaced by it. Planning is conducive to success, as it creates
a chance to protect against undesired surprises in the future, not in general but
to a certain degree. On the other hand, one should remember that planning con-
sumes energy, time and money, which is why it is necessary to consider advantages
and disadvantages (of preparing it), which usually takes place when an action is
not subject to time pressure”.31
Planning – next to establishing goals and tasks, organising, motivating, con-
trolling and coordinating – is one of the main management functions. There are
many definitions of planning, reviewing them gives the picture of its complex
nature. Planning can be considered from various perspectives, a variety of aspects,
e.g. the purpose and subject of planning, timeframe, detailedness, etc.
Planning can be described as a set of organised information processes, referred
to the future, which lead to working out optional solutions for the achievement of
established goals.32
Planning is a creative thinking of the future.33
It is, in essence,
a perspective intellectual activity, in the course of which a thought is being pro-
cessed, things are being anticipated and future factual actions are being deter-
mined.34
Planning is a systematic and methodical process of recognising and
solving future problems.35
30 T. Pszczołowski, Zasady sprawnego działania. Wstęp do prakseologii, Wiedza Powszechna,
Warszawa 1982, pp. 26, 204, 218.
31 W. Mag, Planung und Kontrolle, [in:] M. Bitz, K. Dellman, M. Domsch, E. W. Wagner, Vahlens
Kompendium der Betriebswirtschaftslehre. Band 2, Verlag Franz Vahlen, Muenchen 1999, p. 3.
32 M. Schweitzer, Planung und Kontrolle, [in:] Allgemeine Betriebswirtschaftslehre. Band 2:
Fuerung, F. X. Bea, E. Dichtl, M. Schweitzer (Eds.), Gustaw Fischer Verlag, Stuttgart 1991, pp. 18–19.
33 D. Adam, Kurzlehrbuch Planung, Wiesbaden 1983, p. 11.
34 E. Kosiol, Zur Problematik der Planung in der Unternehmung, Zeitschrift fuer Betriebswirt-
schaft, 1967, p. 79.
35 J. Wildt, Grundlagen der Unternehmungsplanung, Opladen 1982, p. 13.
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23. Michał Trocki
26
Figure 1.3 Planning against the Background of Management Phases and Functions
Action implementation
– execution
Establishment of goals
and determination of
tasks
Action organising
Action planning
Action motivating
Supervision of action
implementation (control
and coordination)
Creation of will Preparing will
realisation
Realisation of will
Management phases
Source: the author’s own elaboration.
Basing on the analysis of significant definitions presented hereinabove and
other, the following definition of planning can be adopted for the purposes of the
deliberations contained herein.
Planning is drawing up plans as a preparatory stage of complex actions,36
it is
an intellectual anticipation of future actions which seems to be necessary in order
to effectively achieve the established goals, by considering a number of options
and deciding which of them is the most advantageous.37
The purpose of planning is to develop an effective instrument for the achieve-
ment of goals – in the form of a plan – meaning recognising in advance the condi-
tions (chances and risks), measures and alternatives for the achievement of goals,
and selecting proper undertakings to achieve them. This main purpose gives rise
to the following objectives of planning:
36 T. Pszczołowski, Mała encyklopedia prakseologii i teorii organizacji, Ossolineum, Wrocław
1978, p. 162.
37 G. Woehe, Einfuerung in die allgemeine Betriebswirtschaftslehre, Verlag Vahlen, Muenchen
1986, p. 125.
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24. 1. The Basics of Project Planning 27
•
• orientation to objectives – planning facilitates agreeing upon the minor objec-
tives and how to link them with the major objectives;
•
• early warning – planning, owing to the projection of future problems, facili-
tates an early implementation of solutions and counteractions;
•
• coordination of partial plans – planning facilitates common arrangements
for solving of partial problems; this makes it possible to avoid unforeseeable
interruptions in the realisation thereof;
•
• preparation of a decision – a planning process comprises an analysis of prob-
lems and an examination of alternatives which may lead to solving the prob-
lems (achievement of goals); this way a selection of most beneficial alternative
of action is rationally founded;
•
• grounds for control – planning provides for the comparison of desired and
expected values with those actually received and concurrently for the control
of planning prerequisites; due to this fact, planning may constitute the basis
for a reliable control;
•
• informing co-workers – thanks to planning, co-workers can be effectively
informed about objectives, alternative actions, consumption of resources,
restrictions and terms;
•
• motivating co-workers – by participating in the process of drawing up a plan,
co-workers can be motivated to act in accordance with the plan, i.e. to achieve
the corporate goals established in the plan and individual goals.38
Planning should be of the following character:
•
• informative – since its content is the collection, processing and exchange of
information;
•
• future – since it refers to future circumstances;
•
• causative – since it is not limited to cognising of the future, but it implies its
changes, refers to an active creation of the future in a certain discipline;
•
• process-based – since it is processed by consecutive phases, stages and oper-
ations which are linked to each other;
•
• rational – since it is based on a special-purpose, methodical approach.39
Planning should perform the following functions:
•
• cautionary – through an early recognition of the future action risks, the related
problems and the potential consequences of the same;
38 J. Wildt, Grundlagen der…, op.cit., p. 19.
39 P. P. Le Breton, D. A. Henning, Planning Theory, Prentice Hall 1961, p. 7.
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25. Michał Trocki
28
•
• creative – through the preparation of creative proposals of the future actions;
•
• indicative – (optimisation), through the indication of possible (best) future
actions;
•
• coordinative – through the consideration of various dependencies on all activ-
ity levels;
•
• moderating – through the identification and solving of potential conflicts.40
It should be underlined that planning is one of the main coordination instru-
ments41
, next to personal recommendations, auto tuning, programmes,42
cross-organ-
isational markets, culture and roles. – Advantages and disadvantages of coordination
using plans are presented in Table 1.7.
Table 1.7 Coordination Using Plans: Advantages and Disadvantages
Advantages Disadvantages
• is more flexible than in case of programmes
• gives freedom to employees because it is often
based only on guidelines relating to goals
• facilitates self-control
• facilitates self-control based on the comparison of
the existing state with the desired one
• allows delegation of planning tasks to specialists
• increases stability and results in the resignation
from ad hoc coordination owing to analytic
recognition of planned issues
• reduces the demand for other coordination
instruments (e.g. personal recommendations)
owing to initial coordination
• is impersonal
• requires expenditure on the arrangements of
plans which are different in terms of time and
subject
• is complex
• is inflexible in case of extremely dynamic
environment
• requires frequent modifications in some cases
under the institutionalised planning process
(rolling wave planning)
• requires the coordination of various plans, if they
refer to the same resources or issues
Source: R. Bergmann, M. Garrecht, Organisation Und Projektmanagement, Physica-Verlag, Heidelberg 2008,
pp. 40–41.
There are different forms of coordination depending on the applied time of
selection and development of coordination mechanisms, as well as the applicable
coordination mechanism itself.
The most significant content of planning function – according to L. Krzyżanowski
– can be boiled down to:
•
• “formulating goals of an organisation, which should consider general prefer-
ences of the society (…) and its closer and further environment (…);
40 W. Mag, Planung und Kontrolle, op.cit., p. 6.
41 R. Bergmann, M. Garrecht, Organisation und Projektmanagement, Physica-Verlag, Heidelberg
2008, pp. 35–54.
42 Programmes are construed as rigid or conditional procedures for given decision-making situa
tions, which usually are in the form of handbooks, guidance, etc.
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26. 1. The Basics of Project Planning 29
•
• choosing ways to attain goals from among a set of possible implementation
methods, determined by actual and future external and internal conditions
for operation of an organisation, especially such as the existing level and esti-
mated development of the expertise (subjective knowledge) and methodology
of manufacturing specific goods, services or values, the mastery of the man-
ufacturing technology and the ecological- demographic, economic and other
conditions determining the availability of action carriers;
•
• specifying necessary resources of action carriers (production factors), as well
as the acquisition sources and methods.
Table 1.8 Forms of Coordination
Types of coordination mechanisms
Creation of cooperation
systems
Coordination on the cooperation
of elements
Time
of
selection
and
development
of
coordination
mechanisms
Situational (ad hoc)
– accompanying an
action
Coordination that consists
in a situational selection of
cooperation systems
Coordination that consists
in a situational arrangement of
cooperation systems
Pre-situational
– preceding the
actions
Coordination that consists
in designing cooperation systems
(e.g. organisation)
Coordination that consists
in planning the cooperation
Source: M. Trocki, B. Grucza, K. Ogonek, Zarządzanie projektami, PWE, Warszawa 2003, p. 68.
Therefore, »a product« of planning function is a pattern of action (operation)
of an organisation within a time interval, i.e. its plan for a given period of time”.43
The essence of planning processes is processing of input data into output data
in consecutive operations. As it stems from informative character of planning pro-
cesses, the most significant characteristic that defines planning situations is the
certainty of planning information concerning major planning issues: objectives,
problems, conditions, resources, time, deadlines, actions, instruments, etc. Look-
ing at planning situations from this point of view, three typical cases can be dis-
tinguished. The first case is planning with complete information (a deterministic
situation), when information regarding all major planning issues is complete and
certain. In this situation the future action can be unambiguously determined. Next
cases are planning with incomplete information. The second case, called planning
under risk, is when information regarding major planning issues, e.g. duration of
43 L. Krzyżanowski, Podstawy nauki zarządzania, Polish Scientific Publishers PWN, Warszawa
1985, p. 227.
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27. Michał Trocki
30
actions, is not complete and certain. In this situation one should take into account
a few variants of action with different effects, for which it is possible to determine
– objectively or subjectively – a probability of occurrence. The third case, called
planning in uncertainty, is when information regarding major planning issues,
like in the second case, is not complete and certain, different variants of action
are possible with different effects, but their probability of occurrence cannot be
determined – either objectively or subjectively. Different planning concepts and
methods are applied, depending on the level of certainty of planning information,
which shall be discussed hereunder.44
1.2.4. Planning vs. standardization of actions
In order to explain two fundamental approaches to pre-situational and situa-
tional planning, it is necessary to refer to the issue of standardisation.45
This is one
of the issues covered by the general management theory, which in a significant way
defines a number of problems and solutions in management.
For the purpose of implementing a complex action, one needs to know and
apply a proper way of execution, which comprises the information concerning:
•
• the desired result of an action;
•
• the principles of implementing an action;
•
• the composition of an action, i.e. its division into particular activities;
•
• the system of action, i.e. links between its particular activities: logical links, as
well as links in time and space;
•
• a set of means used to perform particular activities which the action consists
of (contractors, equipment, materials, financial resources, etc.).
The information necessary to perform a complex action can be acquired
in two ways. Firstly, it can be freely determined by a contractor on the basis of his/
her knowledge, experience and intuition. Secondly, it can be imposed on him/
her from the outside by the supervisor in the form of a pattern of action defined
by him/her or alternatively with the aid of specialists. A pattern of actions can be
seen in two forms: verbal or written commands, instructions, plans, procedures,
44 M. Schweitzer, Planung und Kontrolle, op.cit., pp. 27–28.
45 Description of general standardisation issues on the basis of: M. Trocki, Standaryzacja pro-
cesów a zarządzanie procesowe, [in:] Podejście procesowe w zarządzaniu. Tom I, M. Romanowska,
M. Trocki (Eds.), SGH Publishing House, Warszawa 2004, pp. 63–70.
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28. 1. The Basics of Project Planning 31
etc. of diversified content. The standardisation deals with the scope and content of
such patters of action and their impact on efficiency and effectiveness of actions.
The term “standardisation” in the management theory is construed as the man-
ner and scope of permanent, i.e. applicable for a long period of time, regulations of
actions performed within an organisation. In the management practice, the field
for standardisation of actions is vast and comprises a variety of combinations of
freely selected and imposed (regulated) elements of the way of acting. They deter-
mine the levels of standardisation. Their content is presented in Table 1.9.
Table 1.9 Standardisation Levels and the Content Thereof
Recommendation
content
Desired result
of action, no
recommendations
General
principles of
action
Phases and
stages of action
and the general
description of
their content,
without imposed
order
Stages and steps
of action and
the detailed
description of
their content and
alternative order
Stages and steps
of action and
the detailed
description of
their content and
unambiguous
order
Standardisation
levels
No regulations
Heuristic principles
Framework regulations
Detailed, alternative regulations
Detailed, unambiguous (“rigid”) regulations
Key:
A way of acting imposed externally by
a supervisor in the form of a pattern of action
A free selection of the way of acting by a contractor
Source: the author’s own elaboration.
Standardisation is one of the basic management instruments. The possibility
for a supervisor to determine the way of implementing the actions to be performed
by a subordinate (in other words – tasks) facilitates the realisation of the supervi-
sor’s will being the essence of management.
The advantages of the standardisation of action include:
•
• increased work efficiency resulting from discharging a contractor from delib-
erations on the way of performing an action and from faster appearance of the
effects of proficiency;
•
• higher quality of results occasioned by the application of thoughtful and proven
ways of acting, worked out by highly qualified specialists;
•
• better synchronisation of actions preventing organisational conflicts;
•
• faster decision-making process connected with the action performed;
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29. Michał Trocki
32
•
• easier control of the course of action and the control of its results;
•
• objective assessment of the action results;
•
• increased reliability of action;
•
• limited risk, etc.
The disadvantages of high standardisation of action include:
•
• a threat of schematic approach to work represented by its contractors;
•
• incomplete use of creative capacities of contractors;
•
• skipping unregulated but significant aspects of action;
•
• focusing on typical actions, disregarding untypical actions;
•
• weaker self-control of contractors;
•
• weaker motivation of contractors resulting from the monotony, the lack of pos-
sibility to show their own initiative, etc.
The advantages and disadvantages of standardisation of action are revealed
in specific circumstances. This occasions the need to select the level of standard-
isation of action that is appropriate from the point of view of the specific circum-
stances of performing it, which maximally uses the advantages of standardisation
and minimises its disadvantages.46
Standardisation determines the scope and content of planning because plans are
the most common patterns of action. In accordance with the foregoing, planning
levels can be specified on the basis of the accepted level of standardisation of action.
The first level, corresponding to the standardisation level referred to as the lack
of regulation, means no planning at all. A supervisor only tells a contractor what
the desired action result is and does not regulate at all the way in which the pro-
cess should be performed. The selection and application of the method of imple-
menting the process or its part with reference to all component parts thereof are
at the contractor’s discretion. As a consequence, we might deal with theoretically
unlimited, and practically a wide diversity of process implementation methods.
The said diversity usually translates into diversified results, which means that some
results might not reach a satisfactory level.
The second level corresponds to the standardisation level referred to as regula-
tion based on the principles of action or in other words – on the heuristic principles.
In this case the scope of external regulation of action is little. It boils down to spec-
ifying the desired process result by a supervisor and providing a contractor with
the principles of action (the heuristic principles) to be followed while performing
46 M. Trocki, Metody organizatorskie a standaryzacja działań, “Przegląd Organizacji” 1985, No 8.
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30. 1. The Basics of Project Planning 33
an action. The principles of action do not determine a pattern of action but only its
general direction by indicating what to pursue, what should be done and what must
not be done, etc. The composition and order of activities that make up the process
and the selection of resources intended for the implementation of the same is at
the contractor’s discretion provided that he/she respects the specified principles of
action. Applicable process implementation methods are diversified despite the con-
straints introduced thereto. This is followed by great diversification of results of per-
formed actions. Actions at this level of standardisation are of innovatory character.
The third level, corresponding to the standardisation level referred to as frame-
work regulations, to a large degree narrows the scope of contractors’ freedom.
A supervisor tells them, like in the previous cases, what the desired result and gen-
eral process implementation principles are and additionally determines a general,
so-called framework pattern for the implementation of actions, namely the com-
position and system thereof. The term “framework” means that both the compo-
sition and the system of actions need to be considered by a contractor, but he/she
may change them depending on specific circumstances of implementing actions.
Although the contractor’s freedom in this case is limited, it is possible within the
established limits. In all, it is referred to as an average. The limits, mentioned above,
affect the limitation of diversity of process implementation methods and results. The
implementation of actions at this level of standardisation is of adaptive character.
The fourth and fifth level correspond to the standardisation levels referred to as
detailed regulations. This means that all component parts of an action are covered
by external regulations: the desired result, the implementation principles, the com-
position and system of activities, as well as the selection of the means of action.
The contractor’s influence on the method of implementing actions is to a large
degree limited or even entirely excluded, which happens in case of the so-called
rigid detailed regulations. In this case, we deal with the highest possible standard-
isation level, which assumes a complete separation of the determination of execu-
tion method from the execution itself. In case of the so-called alternative detailed
regulations, the contractor’s freedom of action is very little and is limited to the
selection of externally specified alternative ways to implement actions depending
on specific implementation circumstances. Such a solution considerably limits the
diversification of process implementation methods and the results thereof. Process
implementation at this standardisation level is of routine character.
Referring the above deliberations to planning, the following planning types can
be indicated from the point of view of the accepted action standardisation level:
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31. Michał Trocki
34
•
• heuristic planning;
•
• framework, rough planning;
•
• detailed, alternative planning;
•
• detailed, unambiguous (rigid) planning.
The terms “pre-situational (proactive) and situational (reactive) approach
to management can be explained against the background of the foregoing. We
deal with the pre-situational approach when management is mostly based on pre-
viously prepared, detailed patterns of action (e.g. plans), whereas with the situa-
tional approach – when patterns of action are rarely used and they are general.
Table 1.10 Planning Types from the Point of View of the Standardisation of Actions
Standardisa-
tion levels
No regulation
Heuristic
regulations
Framework
regulations
Detailed,
alternative
regulations
Detailed,
unambiguous
regulations
Content
of
method
recommendations
Desired result
of action, no
recommendations
General
principles of
action
Phases and
stages of action
and the general
description of
their content,
without
imposed order
Stages and
steps of action
and the detailed
description of
their content
and alternative
order
Stages and steps
of action and
the detailed
description of
their content and
unambiguous
order
Planning
types
No planning
Heuristic planning
Framework, rough planning
Detailed, alternative planning
Detailed, unambiguous (“rigid”) planning
Key:
Pre-situational determination of a pattern of
future actions – planning
Situational, free reacting to the existing circumstances
Source: the author’s own elaboration.
An important standardisation issue is choosing its proper level, as it defines
the planning type. A proper standardisation level is chosen on the basis of both
external objectives (flexibility – efficiency), and internal objectives (independence
– sense of security and safety). Additionally, task conditions (complexity, stability
and determinacy of tasks) and personal conditions (knowledge, experience and
creativity of contractors) should be taken into account.47
47 Interpretation of the process implementation purposes and conditions presented herein deri-
ves from the situational approach to organisational design described i.a. in: M. Trocki, Podejście
077_Project planning_Trocki_Wyrozebski.indb 34 04/10/2017 08:58
32. 1. The Basics of Project Planning 35
In a situation wherein pursuing high flexibility of action prevails among the
process purposes, lower standardisation levels should be preferred: framework
regulations, regulations based on the principles of action or even no regulation.
Whereas, in a situation wherein pursuing high efficiency of action prevails, higher
standardisation levels should be preferred: detailed alternative or rigid regulations.
The prevalence of process contractors’ need to act independently should incline
to choose lower process standardisation levels, whereas prevalence of safety needs
– to choose higher process standardisation levels. When processes are very complex,
variable with barely specified implementation methods, a process standardisation
level should be low, whereas when processes are simple, stable with well-speci-
fied implementation methods, a standardisation level for such processes should
be high. If contractors characterised by extensive knowledge, rich experience and
high creativity are engaged to implement processes, a low process standardisation
level can be acceptable, in other cases – when contractors characterised by low
qualifications, little experience and low creativity are engaged – a high process
standardisation level becomes necessary.
Improper process standardisation levels have many negative consequences for
management. Too low a process standardisation level, i.e. giving too much free-
dom of action to contractors, can occasion:
•
• the risk of failing to achieve the intended results;
•
• excessive diversification of results;
•
• the need to employ people having higher qualifications than it stems from the
character of the work entrusted to them, and thus an increase in labour costs;
•
• difficulties in controlling and coordinating the implementation of actions;
•
• overloading the management with control and coordination activities, etc.
In general, too low a standardisation level occasions the insufficient organi-
sation of processes.
Too high a standardisation level, i.e. excessive limitation of the freedom of action
of contractors by imposing on them finished patterns of action, may occasion:
•
• interrupting the implementation of actions in case of occurrence of nonstand-
ard situations;
•
• incurring expenses on preparation of regulations of actions being dispropor-
tionate to the effects achieved with the aid of such expenses;
sytuacyjne w projektowaniu systemów zarządzania, “Scientific Journals of the Poznań University of
Technology” 1988, No 14.
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33. Michał Trocki
36
•
• weakened motivation of employees to continuously improve their work;
•
• schematic approach to control and coordination of actions.
To summarize: too high a standardisation level occasions the excessive organ-
isation of processes.
Familiarity with the symptoms of improper process standardisation levels can
be helpful when choosing a proper standardisation level. The symptoms of too low
a standardisation level can be:
•
• overloading a supervisor with explanations regarding the method of imple-
menting actions being provided to his’her subordinates;
•
• the need to explain repeatedly the method of implementing actions for simi-
lar or identical situations;
•
• frequent cases of interference in the operation of an organisation caused by
choosing an improper method for the implementation of actions;
•
• frequent doubts of employees as to the method of implementing actions;
•
• difficulties of new employees to adapt.
The symptoms of too high a standardisation level can be:
•
• frequent complaints of employees about monotonous work;
•
• a high number of instructions, regulations, forms, etc. applicable for the imple-
mentation of actions, i.e. excessive formalization;
•
• frequent complaints about insufficient flexibility of applicable regulations
regarding the implementation of actions;
•
• a high number of special cases that require individual handling;
•
• frequent complaints about the limited independence of action.48
1.2.5. Planning mode
There are many diagrams describing a planning process. The general planning
mode diagram, as shown in Table 1.11, presents planning combined with a con-
trolling function (control and coordination). In the opinion of D. Hahn, in accord-
ance with the broader interpretation, planning comprises four phases: the problem
formulation phase, exploration phase, assessment phase and decision-making
phase. According to the narrower interpretation, planning comprises only the
phases related to plan preparation, i.e. the problem formulation phase, exploration
phase and assessment phase.
48 W. Hill, R. Fehlbaum, P. Ulrich, Organisationslehre I, Verlag Paul Haupt, Bern-Stuttgart 1974.
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34. 1. The Basics of Project Planning 37
Table 1.11 Diagram of Planning Mode According to D. Hahn
Phases Decision-making process The concept of planning
Link with management
functions
1.
Problem formulation
phase
Preparing a decision Preparing a plan
Planning within the
narrower meaning
Planning within the
broader meaning
2. Exploration phase
3. Assessment phase
4.
Decision-making
phase
Making a decision Accepting/adopting
a plan
5.
Implementation
phase
Detailed specification
of the implementation
method
Decision and order
to implement a plan
Plan implementation
controlling
Plan implementation
6. Control phase Comparison of plan
implementation results
(are/should be)
Control of the plan
implementation
Source: D. Hahn, Planung und Kontrolle, [in:] Handwoerterbuch der Betriebswirtschaft. Band 1/2, Scaeffer-Poeschel
Verlag, Stuttgart 1993, pp. 3185–3186.
Problem formulation phase comprises the processes related to the formulation
of a planning problem and the related decision-making problems:
•
• problem formulating by comparing the desired and existing state;
•
• analysing the problem causes;
•
• formulating the objectives being significant for problem solving;
•
• determining decision-making problems linked with the established goals.
Exploration phase comprises the processes related to the determination of
variants of action:
•
• specifying possible variants of action;
•
• identifying future circumstances and their impact on particular variants of action;
•
• selecting the variants of action that were specified in detail.
An assessment phase comprises the processes related to the assessment of var-
iants of action from the point of view of achieving significant goals:
•
• assessment of estimated impact of action variants on the achievement of estab-
lished goals when the future condition of the environment is certain;
•
• assessment of estimated impact of action options on the achievement of estab-
lished goals when the future condition of the environment is uncertain;
•
• the simulation comprising goals, action variants and framework conditions.
A decision-making phase comprises the processes related to the selection of
the variant of action:
077_Project planning_Trocki_Wyrozebski.indb 37 04/10/2017 08:58
35. Michał Trocki
38
Figure 1.4 Integrated Diagram of Planning and Controlling
Establishment of goals
System of goals
Developing plan scenarios Forecasts
Assessment and selection
Plan implementation
Desired values Existing values
Comparing: should be - is
Deviations: should be - is
Examination report
Modifications
System of plans
Determination of problems
Scenario of plan 1
Controlling
Planning
Hierarchy of problems
Scenario of plan 2 Scenario of plan n
Plan execution
Analysis of deviations
Source: the author’s own elaboration on the basis of M. Schweitzer, Planung und Kontrolle, [in:] Allgemeine
Betriebswirtschaftslehre. Band 2: Fuerung, F.
X. Bea, E. Dichtl, M. Schweitzer (Eds.), Gustaw Fischer Verlag,
Stuttgart 1991, p. 24.
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36. 1. The Basics of Project Planning 39
•
• comparing and discussing the variants of action being assessed;
•
• analysing and discussing the simulation results;
•
• choosing the variant of action with the highest level of compliance with the
established goals and deciding on its implementation.49
Figure 1.4 presents an integrated diagram of planning and controlling.
1.2.6. Planning dilemmas
The above deliberations regarding the general planning principles assumed,
in accordance with a broadly-shared view, that planning is an activity conducive
to, and even required for efficient and effective management. Nevertheless, it is
not equivalent to the unawareness of planning disadvantages and its criticism. This
is confirmed by citations, thoughts and aphorisms of prominent philosophers, lit-
erary men and businessmen as regards planning.
Table 1.12 Citations, Thoughts and Aphorisms on Planning
“First lay a plan before you set off on a journey; before you set off, get to know the goal you are pursuing”.
H. Kaufmann
“Prior preparation of a precise plan or working system is one of the most important conditions of receiving
a good result”.
K. Adamiecki
“The wisdom of plans rests on anticipating difficulties related to their execution”.
L. de Claptier Vauvenargues
“The shorter will be the final action ended with the goal attained, the more time you spend on the totality of
preparations”.
T. Kotarbiński
“When no agreement could be reached as to fundamental issues, it is aimless to agree upon common
plans”.
Confucius
“Plans are nothing, planning is everything”.
Bell Atlantic
“Planning is the design of a desired future and of effective ways of bringing it about. It is an instrument
that is used by the wise, but not by the wise alone. When conducted by lesser men it often becomes an
irrelevant ritual that produces short-run peace of mind, but not the future that is longed for”.
R.L. Ackoff
“Plans look impressively on paper and they always work – but just on paper”.
L. Icocca
“You cannot expect that a fully-fledged undertaking will be in accordance with its original plan. May just as
well try to lull an adult in a baby cradle”.
E. Burke
49 D. Hahn, Planung und Kontrolle, [in:] Handwoerterbuch der Betriebswirtschaft. Band 1/2, Scaef-
fer-Poeschel Verlag, Stuttgart 1993, pp. 3186–3187.
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37. Michał Trocki
40
“Plans don’t change reality, they only change the awareness of planners”.
A. Kwiatkowski
“No battle plan ever survives contact with the enemy”.
H. von Moltke
“In preparing for battle I have always found that plans are useless, but planning is indispensable”.
D.D. Eisenhower
“The more human beings proceed by plan the more effectively they may be hit by accident”.
F. Duerrenmatt
“Planning is replacing an accident with a mistake”.
Unknown author
“The most senseless things in the history of the world were consistently implemented plans”.
K. Capek
“Plan being spontaneous”.
Steven Wright
Source: the author’s own elaboration.
Critical voices regarding planning follow from its substance. Planning is based
on the so-called pre-situational approach, which assumes the need of a profound
and detailed preparation of action prior to its commencement. This approach is
reflected in a thought quoted by the author of praxeology – T. Kotarbiński: “The
shorter the final action ended with the goal attained will be, the more time you
spend on the totality of preparations”, which in a long time has existed as a prov-
erb: “The more your sweat in training, the less you bleed in battle”. A pre-situa-
tional approach constitutes the basis for modern management, which its special
role stems from. There are many arguments speaking for planning, but on the other
hand there are many arguments which question its usefulness.
„Drawing up a plan is the more indispensable, the more distant a complex
action is. But too distant future does not make it possible to foresee the condi-
tions, which makes a plan incomplete or complicated by providing for alternative
solutions. A plan needs to anticipate the future and prevent undesired impacts of
unforeseen conditions. Plans »rigidify« the future by describing work as a specified
sequence of actions. Meanwhile, work is constantly improved in accordance with
a cycle of organised actions, which is reflected in plan accomplishment reports.
Therefore, plans to a certain degree always deviate from the future despite their
flexibility being considered a priori”.50
The main arguments for and against planning are presented in Table 1.13.
50 T. Pszczołowski, Mała encyklopedia prakseologii…, op.cit., p. 160.
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38. 1. The Basics of Project Planning 41
Table 1.13 Arguments for and against Planning
Arguments for planning Arguments against planning
As much planning as possible, because planning:
–
– increases effectiveness of action;
–
– allows determining in advance the risks and
chances;
–
– reduces the time pressure when making decisions;
–
– reduces complexity of a project;
–
– limits uncertainty and conflicts;
–
– gives a better review of a situation;
–
– enhances cooperation.
As little planning as possible, because planning:
–
– delays actions;
–
– is labour consuming;
–
– is costly;
–
– limits flexibility of action;
–
– is complicated in case of a large scope of
a project;
–
– produces artificial problems;
–
– limits creativity.
Source: M. Bundschuh, Projekterfolgs- und -misserfolgskriterien, [in:] Projektmanagement Fachmann. Band 1,
RKW-Verlag, Eschborn 2003, p. 203.
As it follows from the table above, the point is not to completely resign from
planning, but to tailor the content and form of plans to the specificity of planned
circumstances.51
This postulate is often ignored, because in practice we usually deal
with a planning situation with incomplete information, while the majority of plan-
ning concepts simplify this situation to the case of planning with complete infor-
mation. “The reasons for the above can be found in the planning practice, which:
•
• to a large degree is limited by simplified model thinking;
•
• already during the acquisition of information brings multi-valued (uncertain)
expectations to single-valued (certain) ones through the application of various
reserves in respect of risk;
•
• formulates plan scenarios for various expectations of the future;
•
• assumes that precise consideration of any incomplete information about the
future development only to an insignificant degree affects specified determin-
istic planning results”.52
The reasons underlying the grounds of planning criticism are explained by
J. Pasieczny. “Whereas the need to realise the main and partial objectives is totally
obvious, the postulate of developing a plan in an elaborate form in writing raises
lots of controversy (at least in practice). There are many factors which discourage
planning. They include the lack of time and patience, willingness of immediate
51 The point is to choose the right planning standardisation level. Still, the matter of standardi-
sation, being fundamental for management efficiency and effectiveness, is rarely taken into account
– both in theory and in practice – which is the source of many inefficiencies, also from the scope of
planning. Information concerning standardisation can be found in: M. Trocki, Standaryzacja pro-
cesów…, op.cit., pp. 63–70.
52 M. Schweitzer, Planung und Kontrolle, op.cit., p. 28.
077_Project planning_Trocki_Wyrozebski.indb 41 04/10/2017 08:58
39. Michał Trocki
42
achievement of targets, reluctance to paperwork, the belief that it is going to be
OK. In case of small enterprises, such a factor is also the lack of relevant planning
knowledge and skills”.53
Any reservations as to planning – either objective or sub-
jective – should not be the reason for resigning from planning, because planning
a business has undeniable advantageous. “Planning is not the opposition of flexi-
bility – it is the enemy of costly chaos. It helps to assess the consequences of adopt-
ing various strategies, tactics and sequences of actions without costs incurred and
excessive risk. This allows us to work smarter – the specified effect is obtained
with lower costs. (…) Planning is conducive to focusing on the most important
objectives – this is connected with the hierarchisation of objectives in business
plans. Planning gives more certainty that none of the important actions will be
omitted, which results from proper analysis of an undertaking while drawing up
a plan. The impression that everything was taken care of and nothing will be for-
gotten when setting up a firm or developing a project is illusive. Planning prevents
wishful thinking. Entrepreneurs often intentionally avoid analysing unpleasant or
difficult aspects of the future business. They concentrate exclusively on the future
income and profits. However, while drawing up a plan they are forced to analyse
all the costs they will have to incur. Too optimistic assumptions adopted when
drawing up a plan can be verified by persons evaluating such a document. Plan-
ning enhances motivation to attain goals – a plan is not only a binding document,
but a kind of an obligation to take certain actions. Planning, by definition, forces
an orientation to the future – actions of any kind being considered in a plan serve
for the achievement of the future goals. This allows both the authors of a plan and
the contractors »to get used« to thinking in a longer time perspective. This is par-
ticularly important, since we are very often overwhelmed by day-to-day affairs
(or even outstanding ones) and we do not think of the future. It is connected with
the need to forecast – analyse the future for the purposes of business plans. Ana-
lysing the future and creating scenarios for the course of action change the optics
of many people – the future no longer is only a source of threats but also becomes
a source of chances”.54
Criticism of the pre-situation approach has resulted in the development of plan-
ning concepts in two directions: firstly, it led to the improvement of the traditional/
53 J. Pasieczny, Biznesplan, PWE, Warszawa 2007, p. 15.
54 Ibidem, pp. 15–16.
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40. 1. The Basics of Project Planning 43
classical pre-situational approach, and secondly, it resulted in the development of
the situational approach.
Table 1.14 Development of Pre-Situational Planning Approach
Traditional/classical approach Contemporary approach
A planner is one person
(entrepreneur).
Planners are team members acting in conditions of labour
distribution and hierarchical dependency.
Planning is endlessly extended in time,
continuous.
A planning process is a sequence of various structured partial
processes (planning phases) involving the time of diversified limit.
Planning serves for the achievement
of a single, clearly defined goal (usually
maximisation of profit).
Planning serves for achievement of the system of objectives
comprising an organised set of individual objectives diversified
with respect to time and content of conflicts and with diversified
priorities, detailedness acceptance, etc.
A planner is familiar with the whole set
of the variants of actions that can be
performed.
Each possible solution usually is a combination of decision-
making variables, the number and links of which are not always
known to a planner. For a set of possible alternatives this means
(admissible area) that it can be reduced or even open.
A forecast of parameters (data) which
are needed for planning can be single-
valued (certain).
A forecast of parameters (data) which are needed for planning
in many cases can be only multi-valued (uncertain).
A forecast of the effects of each
accomplished objective for each
variant of action can be single-valued
(certain).
A forecast of the effects of each accomplished objective for
each variant of action in many cases can be only multi-valued
(uncertain).
Variants of action are considered
optimal when they cause extreme
effects of the achieved objective.
Variants of action are considered optimal, when they are selected
according to acceptable decision-making principles (in certainty,
under risk, in uncertainty), however an extreme option is optimal
only in special cases.
There is an effective (computational)
method for the determination of
problem solving that leads to an
optimum.
There are effective (computational) methods for the
determination of problems that lead to an optimum, for others
there are no relevant algorithms or, if there are, they do not lead
to optimal solutions. Planning needs to use the existing heuristics
or those being developed anew and to solve complex planning
problems using simulations leading to approximate solutions.
Source: M. Schweitzer, Planung und Kontrolle, op.cit., pp. 28–30.
A situational approach assumes limiting the preparation of actions to setting
a goal and general direction of action, and to reacting accordingly to appearing
unforeseeable circumstances. Management based on this approach is referred to as
adaptive, agile management. The above deliberations should be referred to broader
issues of the management theory and of the coordination theory.
The arguments against planning challenge the sense of planning only with ref-
erence to a few specific situations. In a majority of cases the arguments for plan-
ning prevail, as a result of which planning is considered a basic management tool
in all its branches, also in project management.
077_Project planning_Trocki_Wyrozebski.indb 43 04/10/2017 08:58
41. Michał Trocki
44
1.3. Planning in project management
1.3.1. The Meaning of planning for project management
Most survey research results concerning project success and failure factors
indicate professional project planning as one of the key factors. For instance,
the research conducted in 2008 by the GPA Deutsche Gesellschaft fuer Projekt-
management determined planning as one of five key project success factors, next
to qualifications of project participants, good communication, clear objectives
and requirements as well as the involvement of the top management.55
In another
survey research carried out by the same organisation 55.6% of respondents indi-
cated planning processes and methods as a major gap of knowledge in the field of
project management.56
The positive impact of professional planning on project success is also con-
firmed by the survey research carried out by S. Spałek among the Polish enter-
prises. In successful projects an average duration of a planning phase was 7 months,
while an average duration of a project implementation – 13 months. Whereas in
failed projects (exceeded time, budget or incomplete scope) an average duration
of a planning phase was 5 months, while an average duration of a project imple-
mentation – 24 months.57
According to the surveys conducted among project man-
agers, the factor that has an impact on the success of a project is fixing a date of
project completion on the basis of very carefully planned labour- and time-con-
sumption of tasks.58
There is a common belief that “success of any project depends on how it was
planned and recognised from the very beginning, therefore, the first stages of each
project are the most important and much attention should be paid to them. (…)
55 C. Engel, A. Tamljidi, N. Quadejacob, Erfolge und Scheitern im Projektmanagement, GPA/PA
Consulting Group 2008, p. 8.
56 Potentiale und Bedeutung des Projektmanagements us der Perspektive des Topmnagements,
GPM/Straschag Institute, European Business School, 2008, p. 30.
57 S. Spałek, Zarządzanie projektami w wybranych przedsiębiorstwach – wyniki badań, “Scientific
Journals of the Silesian University of Technology”, Series: Organisation and Management, Vol. 23,
the Silesian University of Technology, Gliwice 2004, pp. 76–77.
58 S. Spałek, Rekomendacje dla skutecznego zarządzania projektami w przedsiębiorstwie, “Scienti-
fic Journals of the Silesian University of Technology”, Series: Organisation and Management, iss. 36,
the Silesian University of Technology, Gliwice 2006, p. 174.
077_Project planning_Trocki_Wyrozebski.indb 44 04/10/2017 08:58
![Project
planning
and
scheduling:
tools
and
good
practices
„If you fail to plan, you plan to fail”
Benjamin Franklin
Planning, or as aptly capture the authors of the study “preparation of activities”,
is a vital aspect of project management. Most of the problems that occur during
the project implementation phase origin from improper or even in a lack of the
project planning process. It can be observed that organizations, especially in the
conditions of risk and uncertainty, do not take steps to prepare their activities or
take them in a very ineffective way.
Therefore, undertaking research on the topic of project planning should be con-
sidered both important for the development of the discipline of management
sciences as well as for providing practical guidance to companies that often un-
dertake complex projects in a turbulent, changing environment.
The reviewed research by prof. Michał Trocki, PhD. and prof. Paweł Wyrozębski,
PhD. significantly extends the current knowledge of project management and
can serve as a benchmark for very well-conducted research.
[excerpt from prof. Seweryn Spałek’s, PhD. review]
SGH PUBLISHING HOUSE
SGH WARSAW SCHOOL OF ECONOMICS
02-554 Warsaw, al. Niepodległości 162
tel. 22 564 94 77, 22 564 95 46
www.wydawnictwo.sgh.waw.pl
e-mail: wydawnictwo@sgh.waw.pl
SGH PUBLISHING HOUSE
SGH WARSAW SCHOOL OF ECONOMICS
9 788373 789975
ISBN 978-83-7378-997-5
Collective work edited by
MICHAŁ TROCKI PAWEŁ WYROZĘBSKI
Project planning
and scheduling:
tools and good practices
Source: M. Trocki, P. Wyrozebski (eds.), Project Planning and Scheduling:
Tools and Good Practices, SGH Publishing House, Warsaw 2017
ISBN: 978-83-8030-181-8](https://image.slidesharecdn.com/projectplanningandscheduling-240127130143-528e3b88/85/ProjectPlanningandScheduling-control-pdf-1-320.jpg)
