---
title: "Plan, importance, systematic planning process"
subject: "Project Engineering"
chapter: 3
key: "semester_7/project_engineering:plan-importance-planning-process"
source: https://www.bctengineer.com/q/semester_7/project_engineering/plan-importance-planning-process
site: BCT Engineering
---

# Plan, importance, systematic planning process

Project Engineering · Chapter 3: Project Planning and Scheduling

- Asked in: 2070 Chaitra (old course), 2+3+3 marks
- Video: [How to Write a Project Plan [PROJECT PLANNING STEPS THAT WORK]](https://www.youtube.com/watch?v=Lt9_4vzPdlo) — Adriana Girdler
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/project_engineering/plan-importance-planning-process
- Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-3

## Question

What is a plan? Why is planning important in a project? Write the systematic process of project planning.

## Short answer

A plan is a predetermined course of action specifying what, how, who, and resources to meet objectives. Planning provides direction, reduces risk, optimizes resources, and serves as control baseline. The systematic process: define objectives, create WBS, sequence activities, estimate durations, schedule, assign responsibilities, and budget.

## Answer

#### What is a plan?

A **plan** is a pre-decided course of action that states what is to be done, how, by whom, when and with which resources, so that the project objectives are achieved within time, cost and quality limits. For a building project, the plan contains the scope, WBS, schedule, resource and cost estimates, and responsibilities.

#### Importance of project planning

- **Gives direction.** Everyone knows the objectives and the route to reach them.
- **Reduces uncertainty and risk.** Problems are foreseen and handled in advance.
- **Uses resources economically.** Manpower, machines and materials are arranged when needed, so idle time and waste fall.
- **Basis for control.** The plan is the baseline against which actual progress, cost and quality are compared.
- **Improves coordination.** Departments, contractors and suppliers work to one programme.
- **Helps decisions and finance.** Cash flow, loan drawdown and procurement are planned from it.
- **Saves time and cost.** Critical activities are identified and given attention.
- **Motivation and accountability.** Targets and responsibilities are clear.

#### Systematic process of project planning

1. **Define objectives and scope** - fix what the project must deliver, with its time, cost and quality targets.
2. **Collect data and study constraints** - site, market, law, funds, resources, weather.
3. **Prepare the Work Breakdown Structure (WBS)** - divide the project into manageable work packages.
4. **List activities and fix their logical sequence** - decide which activity precedes or follows which.
5. **Estimate duration, resources and cost** of each activity (quantity x productivity, rates).
6. **Prepare the schedule** - bar chart, milestone chart, CPM or PERT network; find the critical path.
7. **Assign responsibility** - responsibility matrix, organisation structure, contract packages.
8. **Prepare resource, material, cash-flow and budget plans** from the schedule.
9. **Plan quality, safety, risk and communication.**
10. **Review, approve and issue the plan** as the baseline; revise it when actual progress differs (feedback).

```text
Objectives -> WBS -> Activities & logic
     -> Estimates -> Schedule -> Resources
     -> Budget -> Baseline plan -> Control
            ^                        |
            +------ feedback --------+
```

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. A plan states:
   A. Only the budget
   B. What is to be done, how, by whom, when and with which resources
   C. Only the date
   D. Only the design
   Answer: B. A plan is a pre-decided course of action. (Key point: Plan definition)

2. The plan serves as:
   A. Baseline to compare actual progress, cost and quality
   B. A contract
   C. A drawing
   D. An audit
   Answer: A. It is the basis for control. (Key point: Baseline)

3. Which step comes immediately after preparing the WBS?
   A. Prepare schedule
   B. List activities and fix logical sequence
   C. Assign responsibility
   D. Approve baseline
   Answer: B. Order: objectives, data, WBS, activities and logic, estimates, schedule. (Key point: Process order)

4. When actual progress differs from plan:
   A. Ignore
   B. Revise the plan through feedback
   C. Stop the project
   D. Delete WBS
   Answer: B. Plan is revised using feedback. (Key point: Feedback)

## Related in Project Engineering

- [Why schedule is important in planning](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aschedule-importance-planning) — Project Engineering, chapter 3
- [Why risk analysis is important in planning](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-importance-analysis-planning) — Project Engineering, chapter 5
- [Project planning and its importance](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aplanning-concept-importance) — Project Engineering, chapter 3, asked 3×
- [Short note: Planning software, MS Project](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aplanning-software-ms-project-note) — Project Engineering, chapter 3, asked 2×
- [Importance of WBS for project planning](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Awbs-importance-in-planning) — Project Engineering, chapter 3
- [Step by step project appraisal process](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aappraisal-steps-process) — Project Engineering, chapter 2

## Related in other subjects

- [Process of developing IS security plan](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ais-security-plan) — Information System, chapter 2
- [Baseline management in project plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Abaseline-management) — ICT Project Management, chapter 7
- [300 MW reservoir project: planning to commissioning](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Areservoir-300mw-planning-to-commissioning) — Hydropower Engineering, chapter 2
- [Project planning matrix (PPM)](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-planning-matrix) — ICT Project Management, chapter 7
