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For the corporate world PM has become an important issue. The 30% project failure is occurring just because of misalignment between PM and business strategy. There are some factors that can play an important role in the strength of alignment between business strategy and project management. Project management is considered as backbone of the organization because of high competition involved in modern business environment. It is clear from the previous studies that many projects do not completed on time, within a specified budget and do not meet to customer’s requirements but project success depends upon more than time and budget goals such as business outcomes.
Often, a company will decide to purchase a product if it does not meet one of the evaluation criteria, such as not having adequate staffing resources, as long as the cost structure is attractive (Canez, Platts & Probert, 2000). Although cost is a large factor, it is often impractical for a company to make such decisions based upon only a few factors. The overall decision must be made with adequate research and diligence. Another challenge of the make-or-buy decision is the amount of knowledge required to address the needs of the organization. An organization must define all possible alternatives and any tradeoffs that may occur from making the decision (Moses & Pär Åhlström, 2008).
Outsourcing is the final option for logistics management. When this happens, transportation firms concentrate on logistics, and the company can concentrate on it’s production. There are many cost savings using this type of program, however that lack of control can negatively effect many companies. International logistics requires many different options and requirements to be met in order for a company to operate internationally. It’s like a big puzzle that must be put together, in order for all the goals to be met.
“Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals (John Reh, 2012).” Among numerous different KPIs, there have always been confusions on which ones and how many to use. The application of different KPIs now proves to be contextual: the “Key” in the name KPIs indicates that only a few significant areas that are directly linked to the main goal of the business should be concerned. The aims for using key performance indicators in the industry are optimizing logistics processes as well as building sustainable and environment-friendly logistics systems (Kumar S, 2013). Furthermore, the quantity of the existing KPIs is excessively large since all extant performances in businesses need to be measured. As stated before, distinct key performance indicators are used under individual environment.
New York: Signet Classic, 1981. Print. Chaucer, Geoffrey. The Canterbury Tales .Eds. A. Kent and Constance Hieatt.
New York : Oxford University Press Tufte, T and Mefalopulos, P (2009). Participatory Communication: A Practical Guide. Washington D.C. : World Bank Arnstein, S. (1969) A ladder of citizen participation. Journal of the American Planning Association, 35 (4), pp. 216-224.