Discuss issues affecting project management Problems always arises while working on projects. Therefore, it is important for both project manager and the team members need to know the awareness about the problems and need to respond to it. The main issues are as follows: • Effects of changing external factors One of the external factors is supplier bankruptcy which might take place in the stages of the lifecycle. If the suppliers do not deliver the goods on time, then this will have on effect on the project and the organisation as well. This might be because of transport and staff issues faced by the suppliers as they have less amount of staff or transport to deliver the goods.
The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly. Second, failure to meet service standards can force management to find other ways of achieving reliability. It is not atypical to find a company in which cumulative IT management neglect eventually culminated in an out-of-control situation the current IT department could not recover from. Management can see outsourcing as a way to fix a broken department. Third, a firm under intense cost or competitive pressures, which does not see IT as its core competence, may find outsourcing a way to delegate time-consuming, messy problems so it can focus scarce management time and energy on other differentiators.
There are various reasons for incorrect records. (Among the reasons of inaccurate inventory recordkeeping are products coding mistakes, counting mistakes, taking a wrong product from stocks, not keeping record of defective inventories, communication lags leading to late update, etc. ).The more capital is invested towards information systems, the lesser will be the potential... ... middle of paper ... ...in expediting their production process so as to reduce the work in process inventory. These managers have the responsibility of managing (and growing) their firm’s relationship with major clients, coordinating professionals across the various disciplines of the firm and often across geographic boundaries. The role of the key account manager remains a complex and often ill-specified responsibility because geographic or discipline groups are frequently made up of separate profit centers.
It also stunts any scope for improvement or innovation as it is too focused on sticking to the set benchmarks. This often leads to poor overall performance of the organization in the long run which in turn affects the going concern of the business. Secondly, it utilizes a single, volume-based cost driver which leads to the distortion of the cost of products. It traces overheads to products or services usin... ... middle of paper ... ...osts and where to apply efforts to curb inflationary costs. This can be of particular value in tracking new products or customers and also solves the cross-subsidies problem linked to traditional costing system by separating overhead costs into different cost categories or cost pools.
A large-scale IT outsourcing projects is not easy to run and monitor. A substantial impact on business will be created due to the failure in governing IT operations. As IT outsourcing provides many other benefits and saving expense, security impact and risk management should also be analyzed at its earliest. In order to ensure proper IT outsourcing project and services management, it is necessary to conduct regular reviews and on-going monitoring. Lastly, it is concluded that, outsourcing if not executed properly then it can cause risk.
Through the frameworks and issues, we concluded that while current setup would cause some budgetary discrepancies because of the lack of loyalty between the divisional controllers to the corporate controller, changing the organization structure of Martex would cause a disparity between the division manager and the divisional controller thus resulting in an anxiety in their working environment which is too costly as compared to maintaining the current setup. I. Case Context Rendell Company is experiencing some difficulties in implementing its modern control techniques due to the irking relationship between the divisional controller and the corporate controller (Mr. Bevins) resulting in an added fat to the organization’s budgets. Now, with these problems, Mr. Bevins is interested with the organizational structure of Martex if this will be the solution of the current problem. II.
Also, if deliveries are not made on schedule, customers will be dissatisfied with the service. If a warehouse is not properly managed and organized, orders may not be filled in a timely manner or products could be damaged leading to excessive waste. Companies who enter into contracts to obtain or provide products or services need to be able to effectively negotiate so that they receive the best value for their company. To do this, they need to be aware of what their company’s advantages and disadvantages are as well as what goals and benefits they are trying to gain. Companies need to analyze how well their acquisition process works so that they can be sure that it adds to the competitive advantage of the industry as a
The transactions introduce some risks of financial loss due to the failure in achieving the expected financial or strategic objectives. The financial or strategic benefits may not be realized due to competitions, regulatory requirements or other factors. One business risk involves effectively integrating the transferred businesses. Also, restructuring or reorganization of the businesses after transactions have been closed can be risky too. In terms of operational risks, integrating operations, especially the differences in organizational culture, can be a problem and may require significant management resources.
This gives too many assumptions to the IT project planners and in hoping that they will understand the vague projection. Business case is not longer valid – this happens when the project manager does not see a change in the market. The business case projection must be revisited and may need to be recalculated to determine if the project should continue. When a project is fully invested in going forward and the business has changed, this can cause the project to go in a wrong direction or miss an opportunity. Managers need to recheck continually the original business plan against any changes in the marketplace.
The other threat of outsourcing is loss of the technical knowledge that means a client gradually lose their understanding of the service over time. For example, when provider deliver innovative services, the client can have the problem such as they can’t be transfer and also the firm may lose the capacity to stay up to date with the technological breakthrough. Lack of expertise also is one of main threats outsourcing. It can be difficult to find the third parties or other people with a proven team of experts who are experienced in industry being serviced such as in specific computer application, programming languages and more. It will be happen when they had to use the manual ways to provide lists of their staff with their resumes, and should retain the right to approve any substitutes.