Purchasing Resources for Project Management

Business Guide to Project Management: Finding Solutions for Planning, Organizing and Project Planning

Project management is the business of executing a specific project in an efficient and cost-saving manner by utilizing tools to keep a project on track while completing all goals and objectives. Without project management, deadlines may not be met, and important aspects could be forgotten or overlooked. It has become one of the most implemented and important aspects of project planning for companies large and small.

This skill is used in a variety of business types, from corporate and engineering to construction. Any project that has deadlines and cost requirements needs the services and tools of project management. The project management team has a leader who oversees all operations and several employees to execute his or her needs and requirements. For example, if a company wants a new building constructed within 18 months, it would create a project management plan to develop the building, including all required specifications and cost considerations within that timeframe.

Benefits

According to the Project Management Institute, 98 percent of senior executives understood that project management is a vital strategy for all projects, both large and small.

Efficiency

It increases efficiency by creating a roadmap for development, from start to finish. This roadmap includes all goals and objectives and discusses how to avoid common problems before they happen. It details exactly how long each aspect should take, the cost and how much manpower it needs. It keeps contractors from drawing out deadlines and unfairly increasing costs.

Flexibility

It also allows for a company to have flexibility in the project. Although a roadmap is created, if any unforeseen circumstances arise or new developments happen, this plan can easily be revised. The project management team is always on hand to expand or revise the plan for better efficiency and cost savings. Management of the project does not end with the plan­—it continues until the project is completed.

Scope

The management plan also allows management to understand if the goal is possible, given time and cost restraints. According to the Project Management Institute, 76 percent of midlevel executives attribute positive outcomes to good project management.

Quantity

Successful project management means faster and more effective work done on time. This allows for more projects to be completed within a fiscal quarter or other timeframe.

Pitfalls

Project management is as much an art as it is a science. Forecasting costs and problems requires an expert hand. Without this, there could be major time and finance issues. Proper project managers need to be certified and have a proven track record before being considered.

Lack of Expertise

A project management team needs to have a comprehensive knowledge of the field of the project. The team leader must be able to forecast every possible issue, provide workable timeframes and manpower needs, and be ready to change everything at a moment's notice. Without expertise in the relevant field, the costs run higher, and deadlines pass because of an improper management plan.

Too Much Process

Project management relies on standardized plans and processes that have been proven over time. Project managers too rooted in a process may lose sight of the big picture, and their inflexibility could lead to major problems. A process requires time and precision, but projects can quickly be changed by unforeseen circumstances. A project manager mired in a process may not react fast enough to evolving situations.

Failure to Track Changes

Once the plan is completed, project managers need to be in constant contact with the field employees and management personnel. Costs of building materials and other goods change every day as well as rates for contracted employees. A lack of follow-up can easily lead to cost overruns when estimated costs prove to be too low.

Pricing

The cost of project management depends on the overall scope of a project. A large-scale project costing millions, or even billions, of dollars and taking several years to complete can cost $100,000 or more. Factors such as government regulations can lead to increased costs because of the intricacy of the project management plan.

On the other hand, smaller and less complex projects that may only last a few months cost significantly less. The return on investment can be considerable. A proper project management plan keeps construction and development on track and helps avoid common pitfalls. Without project management, an unforeseen circumstance could cost a considerable amount to fix and put a project months behind schedule.

Project management has become an important part of any major undertaking, and it has saved companies money through efficient planning and execution. The key to proper project management is to find a team that has expertise in the field and has a proven track record of success. It may cost a little extra in the end, but project management specialists tend to pay for themselves in the long run.