For the success and further development of organization project management plays an important role. Some large and small organization have project management department which plays a significant role for success of organization. The process of innovating new technology in organization; producing new product; organizing function, etc are done by project management department. Project management is application of knowledge, skills, tools and techniques for managing project activities to achieve its requirement. Project management is accomplished through the application and integration of the project management process of initiating, planning, executing, monitoring and controlling and closing (PM book, 2004, pg 8).

According to Marion E. Hynes, 2002 project management focus on a project. A project is a procedure that has a starting and finishing point, and run to meet target goal within estimated budget, schedule, and quality by managing risk. Project management gather and optimize the resources essentials for completing the project successfully. Skills, talents, cooperation of stakeholder, tools and equipment, etc are includes in resources.

Project life cycle

Project life cycle consist of four stages (i.e., definition, planning, execution and delivery stages). Project effort starts slowly, builds to a peak, and then declines to delivery of the project to the customers which can be shown in fig 1.

Fig 1Project Life Cycle

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The phases of project life cycle are:

· Defining Phase: Defining phase is the first phase of project. In this phase, the project is defined; its objectives and goals are set; project teams are formed and major responsibilities are assigned (PM Guide, 2004)

· Planning Phase: Planning phase is the second phase of the project. Planning is done to decide the steps of project, schedule, time, scope, budget, risk and communication of project (PM Guide, 2004).

· Execution Phase: Execution phase is the third phase of the project. In this phase the project managers have to make sure and check whether project is on correct schedule within the cost, budget and meeting qualifications. And also have to test if any transformations are required for project (PM Guide, 2004).

· Delivery Phase: Delivery phase is the last phase of the project life cycle. In this phase the project is handed or delivered to the customers (PM Guide, 2004).

Project defined

The United Nation Organization (UNO) has donated $7.5 million to provide houses to 50 families living in Kathmandu. On 5 March 2003, UNO signed a contract with the SAM construction to implement the project. The following terms were set in the contract:

1. The houses should meet conditions in line with government rule.

2. The head of each of the 50 families should be given skill improvement training in small business development; in order to certain sustainability and affordability for the 50 families. To make sure that the families will be able to pay for rent and maintain their expenses.

3. The project must be finished within three years of time.

What is Project planning?

Planning is the second phase of project management. Project planning is the process of determining in advance the work to be done on a project, and scheduling specific times or dates to work (Gergory T. Haugan, 2001).

Planning is all about “What to do," "When to do," and "How to do." It is a comprehensive method, which includes procedures such as defining, developing, organizing, forecasting, coordinating, and scheduling the activities. Planning is developing the standard for the project which shows the path for the future and detail of hoe to execute the project. Without proper planning a project cannot move ahead.

Project Scope

A project's Planning Process begins with the planning of its scope. According to (Kathy Schwalbe, 2009) scope refers to all the work involved in creating the products of the project and the process used to create them. Furthermore it refers to the limitations within which project has to confine and achieve its aims. The main aim of scope is to conclude the path as well as the goal of the project. It acts as a tool, which help to measure the output of the project (PM Guide, 2004). Many methods, tools and techniques are used to manage the scope. The project scope includes project objective, deliverables, milestones, technique requirement and limitation.

Project Objective

To build houses for 50 families in the Kathmandu of cost $7.5 within time period of 36 months.

Deliverables

Deliverables are the expected result over the lifetime of the project – what is going to be delivered from project. The deliverables of the above project are:

· Finished homes for 50 families lay down by the SAM construction.

· Provided skills development and training for the head member of each 50 families

Milestone

“Milestone is a strategic plan for a project, defined in terms of intermediate products or results to be achieved.” (Turner, 2009, pg 110) Milestone is used to represent a group of activities in a project. The milestone schedule shows key section of job, time, budget, schedules and resources for the project. Milestones are control points in the project. The milestone plans of above project are:

1. Organize authorization:06/02/2004

2. Foundations poured : 09/03/2004

3. Block laying: 08/11/2004

4. Plumbing, electrical :14/06/2005

5. Furniture fitting:11/11/2005

6. Final inspection of houses:30/12/2005

7. Tendering for training: 05/03/2006

8. Event management: 24/12/2006

9. Hand over house: 21/03/2007

Technical Requirements

The requirements that project have to meet to ensure the best performance. The technical requirement of given project are:

1. Build house should meet up government qualifications and local building policy.

2. 50 trainees (head of the families) should be given standard certificates after completing their training.

3. The SAM construction should hired civil engineer to audit the project

Limits and exclusions

The limit and exclusion are factors which can be done and cannot be done during the project. Failure in limiting can lead to irrational outlook and the wastage of time, money and resources. The limits and exclusions of above project are:

1. The homes will be built to the specifications and design of the original blueprints provided by the UNO.

2. Contractor of SAM Construction are responsible for job done by subcontractors.

3. Field work restricted only on weekdays Monday to Friday, 8:00am to 6:00pm

Creating the work breakdown structure (WBS)

After identifying scope and deliverables, the work of the project can be subdivided into smaller work elements which are work break down structure. Work break down structure is the method of grouping activities by coding (Reiss, 2002). All steps that form WBS are called work packages. It is very functional because the formation clearly directs what has to be done and in what series. It separates the work and duty into individual work packages which help project manager to manage and supervise the performance for the project (PM Guide, 2004).

FIG 2: Work Breakdown Structure of project

Final project Deliverables

Product 1

Organize authorization

Set Foundations

Block lying

Plumbing

Fixing electricity

Sheathing (layer, covering)

Fittings (furniture)

Final Inspection

Product 2

Tendering for Training

Skills Training

Product 3

Tendering for events management

Event Management

Appoint training provider

Handover houses

FIG 1 is the work break down structure of the project. The total work of the project is total break into three parts which are product 1, product 2 and project 3. Each product is further break down in different structure.

Network Plan

In order to plan, schedule, monitored project improvement project network tools are used. Gathering the information from Work Breakdown structure (WBS) the network diagram is developed. The network illustrates the project performances which should be concluded with the series (steps), the mutual relation between each series and the critical path. Critical path is the activity to begin and end along the longest path throughout the network plan. (PM Guide, 2004)

The network specifies the outline which facilitate by project managers to create decision related to time, cost and performance of project. In summary, the network plan assists the following:

• Programmed labour and equipment.

• Provide effective communication which brings all teams and team leaders together in gathering the time, cost, and performance goals of the project.

FIG 3: Network plan

Task 4

Task 14

Task 13

Task 11

Task 10

Task 9

Task 6

Task 8

Task 7

Task 5

Task 3

Task 2

Task 1

Task 13

In fig 3 number of task represents the task of the project in series which are in project schedule.

Project Schedule

Project schedule is a planned and a significant means used by project manager's for directing a project productively to its objective and goals (Edwards, 2010). Project schedule allow project managers to assist and supervise resources more efficiently. Further it facilitates effective communication between stakeholders with regular feedback and so on (Edwards, 2010). Table 1 is the schedule of the project.

Table 1

Tasks	Start Date	Duration	End date
1. Begin	06/02/2004		21/03/2007
2. Organize authorization	06/02/2004	31	08/03/2004
3. Set Foundations	09/03/2004	243	07/11/2004
4. Block laying	08/11/2004	217	13/06/2005
5. Plumbing	14/06/2005	140	01/11/2005
6. Fixing electric	14/06/2005	140	01/11/2005
7. Sheathing (layer, covering)	14/06/2005	140	01/11/2005
8. Fittings (furniture)	01/11/2005	89	29/01/2006
9. Final Inspection	30/12/2005	64	04/03/2006
10. Tendering for Training	05/03/2006	51	25/04/2006
11. Skills Training	26/04/2006	165	08/10/2006
12. Tendering for events management	09/10/2006	75	23/12/2006
13. Event Management	24/12/2006	56	18/02/2007
14. Project hand over	19/02/2007	30	21/03/2007

Table1 Schedule of the project

Grant Chart

Fig. 4 Grant chart is the tool of project scheduling. In Fig .3 task number represents the task name which are in table 1.

Budget

Budgeting is the cost planning which involves predicting the way money will be spent on the project in order people can decide whether to proceed or not, and arrange to have the cash ready at right time (Reiss, 1999). According to (Thomsett, 2009) budget is finally stated goal which serves two purpose: measuring of expense throughout project and measure the performance of project manager. Correct work break down structure help in making accurate cost estimate. Project manager estimates the cost of project at work package level. The cost components of the project are:

· Direct cost: Direct costs are cost which are chargeable to each individual working. Direct cost include the cost of labour, materials, plant and equipment, etc

· Project overhead Cost: Project overhead cost are usually calculated as the proportion of total costs (Lock, 2007). Over head cost includes the cost of bonds, equipment cost, insurance, rents, taxes, etc. Overhead costs are fixed cost of the project (Spreiregen & Paz, 2005)

· Management and administrative overhead cost: This cost includes the cost of people and resources to direct the project. According to (Tuner, 2009, pg 162) these costs are attributable to the project, but not specific tasks and consist of the cost of the managers, team leaders, project support system, project management information system if necessary and temporary site service.

Methods of estimating cost

Top Down estimate: Top down estimate come from the idea that the estimate is made at the top level of the project. In this estimation certain sum money are allocated to complete the project and money has to be divided among the sub projects. The allocation is based on senior management’s or the use of target costing. (Newell, 2002)

Bottom-up estimates: In this method each work items or activities are added to get a total of project. The estimates of individual work level of the work breakdown structure are complied and added together by each level of supervisor in project hierarchy. (PM Guide, 2004)

Analogous estimates: Analogous estimates also called top-down estimates; in this method actual cost of a pervious project are used as the basis for estimating the cost of the project. This method requires a good arrangement of expert judgment. (Schwalbe, 2009)

Parametric Estimates: The process of parametric estimating is accomplished by finding characteristics of the project being estimated that changes proportionately with project cost. Mathematically a model is built base parameters. When the values of parameters are enters into the model, the cost of the project result. (Newell, 2002)

SAM construction has used parametric estimates method of estimating.

The budgeting of SAM construction

Amount Amount

Labour Cost (24%) 1,725,000

Materials Cost (40%) 3,000,000

Machinery (13%) 975,000

Tax (17 %) 1,275,000

Profit (7%) 525,000

GRAND TOTAL 100% 7,500,000

Stakeholder

A stakeholder can be defined as parities who are directly and indirectly involved in the project. Project manager, customers, employees, share holders and other parties who are using project are the stakeholder of project. Table 2 shows the potential stakeholder of project.

Table 2: Potential Stakeholder of Project.

Potential Stakeholders

· Employees

· Project Managers

· Management Team

· (Owners) Share holders

· Resource providers (suppliers)

· Customers

· Governments

· Media, etc

Stakeholders of the project signed by SAM Construction are:

· Project Manager: Individual who is responsible for managing the project of SAM Construction

· Employees: Workers who are working for building house For example: floor worker, painter, plumbers and other several team workers.

· 50 families who are going to be given the houses.

· Sponsor/ Shareholder: United Nation Organization

· Suppliers and contractors: Construction companies who supply equipment, contractors equipment , small contractors , etc

· Media: are news reporters of project.

· Government agency

Communication

Communication is the course of establishing link between two points for information exchange. It is through communication that people add value in innovation, quality, and delivery and cost (Boddy, 2008). According to John E. Barbuto, 2000 understanding communication processes is a most important path for future leaders and managers to travel. In project management and planning communication play significant roles. Through communication, stakeholder can discuss about the project, communicate about the project plan. According to (Turner, 2009, pg 83) the role of communication in project management can be:

· To increase the awareness about the project and to gain responsibilities from key stakeholder.

· To report to other organization and promote key messages about the project and display the planned performance enhancement.

· To make two way communication (with regular feedback); to ensure a mutual understanding of the project plan and its objectives to discuss contract with the stakeholders.

· To maximize benefits from project by having each person functioning for its victory.

According to (PM Guide, 2004) Project communication management is made up of the following processes:

· Communications planning: For transforming the information and determining need communication to stakeholders.

· Information Channel: Providing the necessary information available to project stakeholders in an updated approach.

· Performance reporting: Assembling and broadcasting performance information of the stakeholder and project.

· Managing Stakeholder: For managing the communications to influence the requirement and solve issues and problem with stakeholder. For example: arranging meeting with stakeholder.

Communication planning is often tightly linked with project input, tools and techniques and outputs and stakeholder.

Risk management

Risk can be defined as an uncertain result or situation that, if it occurs, may has a positive or negative effect on at least one goal or objective of the project, such as Time, Cost, Scope, Quality, etc (Project Management Institute, PMI). Project risk management is concerned about risk management planning, identification, analysis and responses and monitoring. In project there are two types of risks internal risks and external risks. The risks which come from internal source and are in control of management such as performance of contractors, material wastage etc are internal risk. The risks which come from external source and are not in control of management such as political, new government legislation, new technology, etc are called external risk. The objectives of project risk management are to increase the probability and impact of positive event and to decrease the probability and impact of events adverse to project. Stakeholders of the project are the one who identify the risk of project. (PM Guide, 2004)

Risk identification consists of determining which risks are likely to affect the project and documenting the characteristics of each. For example, the project manager Of SAM construction has to come across each pack in the work breakdown structure and deal with things that will probably be wrong. After this the project manager should build up a plan of how each problem will be solved. (PM Guide, 2004)

Risk is not a one-time event and has to be identification on a habitual basis all the way through the project. Risk identification should address both internal and external risks. Internal risk for project can be safety issue (worker getting hurt), overuse of electricity, more wastage from construction area, etc. External risk can be changes in wages rate; increases in price of construction equipments, change in rules and unpredictable weather. Project manger should always have a contingency plan to avoid the possible risk of the project. (PM Guide, 2004).

The possible internal and external risk of the project are illustrated in table 3

Table 3: Possible risk of the given project

Possible Risks

· Financial Risk: Increase in price of construction materials, labour rates, tax other technology and overhead charge.

· Safety Risk: Any worker may get injure while working in the field

· External Risk: PESTEL (political, economic, socio-cultural, environmental risk technological, Legal) Risk

· Internal Risk: Mismanagement of waste, wastage of finished goods and electric equipment

Decision making/ Cause and Effect

Decision-making is an essential element of project planning. The main idea of decision making is to choose the best idea or solution. Project manager needs to know how to make and implement decision within the context of project. Project manger many use many tool such as fish bone diagram, decision trees, PERT to make a decision making tools.

(Dr. Kaoru Ishikawa, no date)

Fig. 5 Fishbone diagram

After identifying problems it necessary to determines its causes. The cause and effect relationship is at time obscure. Cause and effect analysis uses diagramming techniques to identify the relationship between an effect and its causes. Six steps are which used to perform a causes and effect analysis which are: recognize the problem; select interdisciplinary brainstorming team; draw problem box and prime arrow; specify major categories; identify defect causes; Identify corrective action.

Table 4: example of cause and effect of given project.

Problem	Cause	Effect
Wastage of finished goods Pass of electric current	Mismanagement of materials Mismanagement of electric equipment and lack of training and development	May create financial problem, lack in materials. Worker may get injure and other serious problem may arise

Innovation and creativity: Innovation is inviting something new and creativity is something that is creative. Innovation and creativity in project planning is bringing some new idea for decision. According to Aucoin, 2007 innovation is the interaction of the stakeholder with creative ideas and adaptation or implementation of the ideas which are supposed to have qualities. Innovation produce something worthwhile, creatively and stakeholder have to work together to bring forth something of value.

Conclusion:

Project planning is the root of a project management, therefore it needs to be wisely planned to make certain that the project conclude in to success. Project planning shows the future path for the project. Project manager is the one who design the project and have more influence on the project planning. Therefore project manager should consider the tools of planning. Scope, schedule, stakeholder, communication, risk management and decision making are the tools of project planning. Effective used of these planning tools lead the project towards the success.

Bibliography:

1. B. Michael Aucoin (2007) Right-Brain Project Management: A Complementary Approach New York, Management concept

2. David I. Cleland Lewis R. Ireland (2006) Project management: strategic design and implementation, (pg 339) London, McGraw Hill

3. Dennis Lock (2007) Project management 9^th Edition (pg 50) London Gower

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5. Geoff Reiss, (1999), Project Management Demystified, second edition, London, Spon Press

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11. Michael C. Thomsett (2009) The Little Black Book of Project Management‎ (pg 77), New York, AMACOM

12. Michael W. Newell, Marina N. Grashina (2004) The project management question and answer book, ( pg 106) USA, AMACOM

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16. Turner (2009), The hand book of Project Based Management (3^rd edition), London, McGraw Hill

17. Turner (2009) The commercial Management of project, Aldershot, UK: Gower

Websites:

1. Image Japanese Fish bone Diagram (online available) (13 April, 10)

Author: Dr. Kaoru Ishikawa.

http://www.envisionsoftware.com/Management/Fishbone_Diagram.html

2. Scope Management (online available) (12 April 2009).

http://www.method123.com/time-management.php

3. Cost management. (online available) (12 April 2009).

http://articles.techrepublic.com.com/5100-10878_11-1061894.html

4. Communication management

(Online available) (12 April 2009).

http://articles.techrepublic.com.com/5100-10878_11-6181834.html

5. Risk management (online available) (12 April 2009).

http://www.mariosalexandrou.com/definition/risk.asp

6. Project management guide (online available) (12 April 2009).

http://www.etu.org.za/toolbox/docs/development/project.pdf

7. PMBOK page 15. Figure 2-1. (online available) (21 April 2009).