Value of Project Management
The primary reason why project management serves to be the one of the vital aspects of business operation would be the fact that it is the one responsible for efficient handling of resources needed in the production process like people in order to minimize costs, increase the product quality and be able to complete the production right in time. Project gives way for the company to beneficial changes and added value in such a way that company growth and development will be attained.
Managing a project is very much different to operations/process management for this requires a permanent or semi-permanent ongoing functional work in order to produce products or goods over and over again. Moreover, both of the said systems differs in technical skills requirements as well as philosophy therefore there is a need for the development of project management. Among the challenges that project managers will surely face would be that the project must be delivered in definite constraints.
Another would be the securing of optimal allocation as well as integration of resources or inputs needed in order to attain pre-defined objectives. Resources, as far as project management is concerned, pertains to the money, workers/employees, energy and other factors of production
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Listening to the suggestions and opinions of the members of the team is one of the important things project managers must develop in order to boosts the quality of their output since through this team members would feel that they are really part of the success and operation of the company (Chandler, 2007). On the other hand, if the project manager or the producer tries to implement dictatorship and impose policies and rules that are of against to what his/her subordinates likes, then, there is a great possibility that the team will resist the entire change, become frustrated causing their productivity level to decline.
Producers or project managers, through project management, will learn how to compromise and put value on the role of team to the success of the project or business. This could be done through opening a channel wherein workers/employees could explain why they like better to work the way they do as well as on how their work setting could be improve. With this, the producer will be able to understand such behavior and performance of his/her subordinates and formulates the necessary solution to the problem with the aid of the team members.
Moreover, with project management, producers could identify certain issues concerning the performance of the members of their team and discuss the said issue with the team in which there is a great possibility that the latter will come up with a new process that could improve the flow of work of every member of the team. At this point, team members have the chance of participating in solving organizational issue with the producer as their facilitator. “Time”
Aside from the attainment of harmonious working relationship, another benefit from project management would be the time it takes to finish and deliver the finished project of the team. There are a lot of techniques that is available in minimizing the time required in order to finish and transport the finished project and one of these would be the Work Breakdown Structure [WBS]. Work Breakdown Structure is an essential project management technique which encompasses the definition and organization of the entire scope of the project through hierarchical “tree structure”.
With the said technique, efficiency in finishing a project is attained by the organization, thus, giving way for them to enjoy good reputation and high profitability in handling projects since operational costs is minimize by the time the team were able to finish a project ahead of schedule. Task dependencies are resolved with the said technique, therefore, improving the length of closing certain overall project just like handling the problem of constrained resources which will be discussed later on.
Furthermore, through project management, by finishing a project a head of time could be used by the company as part of their comparative advantage over their competitors since customers would want to see their projects either finished ahead of schedule or on-time and they would always render the service of the said company, thus, the concerned companies will no longer have a problem on attracting customers for the latter is the one who will be searching for them based from their good performance. “Cost”
There are a lot of factors that contributes to the costs of a certain project of a company. It could be the resources needed for the project, wage rate of laborers, material rates, contingency costs “earned value management”, plant, equipment etc. These are the factors that greatly contribute to the cost of finishing certain projects of the company. With project management, the leader/producer will have the idea and strategies on how to minimize the said costs therefore improving the profitability of the company.
Moreover, the reason why companies would want to minimize their costs in finishing a project would be, aside from the fact that it increases their profit, the chance of using the saved capital into other beneficial investments of the company like buying of new equipments or establish additional plants to expand the project capacity of the company. Furthermore, through project management, the leader/producer will have a comparative advantage over their competitors in the market since they could offer projects at low cost in order to attract more customers.
In short company’s volume of project will improve giving way for an impressive revenue growth. In this regard, managing a project do not just benefit the company through lessening the time to finish the project and provide harmonious working relationship to its workers/employees but also give way for the company to have a comparative advantage over their competitors as well as improving the profitability of the company through minimizing the cost of finishing a certain project. “Scope”
It is not only the quantity of a project could the project management offer to the company; actually even the quality of the project could be at the same time improved by the said technique through securing the individual tasks of the workers/employees of the company (Wheatley, 2005). The main point here is that, projects has specified requirements in order to attain the needed result by the client and this is what the producer/leader would want to stick around or follow in order to produce what exactly is needed by the client.
By following into the specification of the project, the company will attain quality in such a way that it fits based on the given specification of their customers. Moreover, the amount of time to in order to put into individual tasks serves as the basis for determining the overall quality of the project. The time allotment for a certain project given the specification of the client is specified at the very start of the project. But there are some projects that can be completed exceptionally given more time to finish it.
Therefore, through project management, the producer/leader could easily estimate the optimal time in order to finish a certain project and make compromise to the client if the latter gave limited time to finish his/her project. This issue is very much important in large project since a single deviation in the time and cost of the project could cause significant impacts on the overall performance of the company in finishing the concerned project.
Conclusion Based from the above identified benefits being offered by project management, it is clear that through the said technique companies have a large chance of enjoying a secured position in the market place and the threat of competition would be lessen due to the acquisition of comparative advantage based on the quality and quantity of projects that the company could accomplish given a specific period of time.
Moreover, cost minimization and improvement in the profitability is attained by the company through the said technique.
Chandler, H. M. (2007). Production Values: The Value of Project Management. Retrieved February 1, 2008, from http://www. gamasutra. com/view/feature/1886/production_values_the_value_of_. php Wheatley, M. (2005). The Importance of Project Management. Retrieved February 1, 2008, from http://www. projectsmart. co. uk/the-importance-of-project-management. html