Planning establishes the baseline against which execution is measured. Without it, an actual figure cannot be judged high or low.
Three levels of cost planning
| Method | Granularity | Precision | When |
|---|---|---|---|
| Structure planning | Total per WBS element | Coarse | Concept stage, rough estimates |
| Detailed planning | WBS element by cost element by period | Medium | Execution planning |
| Network costing | Derived from activities | Fine | After detailed design |
Dates
| Kind | Meaning |
|---|---|
| Basic dates | The original plan; the baseline |
| Forecast dates | The current expectation, updated as work proceeds |
| Actual dates | When work actually started and finished |
Material planning
| Method | Content |
|---|---|
| From stock | Consume ordinary inventory |
| Project stock | Procured for the project and reserved to it |
| Direct procurement | Ordered straight to the project, bypassing stock |
| Third-party | Shipped from vendor to customer |