In the same fashion, Hossenlopp (2010) asserted that strategy guides the efficient project management offices, especially in large organizations which have a role in issuing reports, measuring spending and other monitoring responsibilities. Equally important, Kloppenborg and Laning (2012) noted that strategic project management manages complex projects by combining project management techniques and business strategies in order to implement the business strategy and to deliver organizational breakthroughs.
According to Meek (2012), project managers can adopt a series of elements to allow for strategic planning. These include project planning, project cost tracking, document and task management, organized document storage, independent and collective
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This school of thought also noted that it's hard to draw a budget for a project due to the unique deliverables from conception till completion of a project. In Yescombe (2013)’s view, the financial management issues relating to a project are critical to the success of a project. Yescombe (2013) added that project financial management makes use of a combination of systems such a financial and accounting management and project management tools to integrate the project accounting and the other project parameters. The project manager should be familiar with these tools to increase his knowledge and efficiency in financial management. Yescombe (2013) added that managers can familiarize themselves with different accounting tools such as project cost management, financial estimates and projections, the source of finance for the project and earned value management. Meredith and Mantel (2011) collaborated with these findings and added that knowledge in financial management aids in the preparation of the overall budget for the project and in estimating the cost of field expenditures, thus eliminating the risk of mismanagement or shortage of funds in the implementation of the …show more content…
In Yescombe (2013)’s view, particular focus should be accorded to financial administration, maintaining a complete file on the project, ensuring proper invoicing and proper closure of all project agreements and archives. Hielkema (2014) presented several steps to be considered in project financial management. The first step as shown by Hielkema (2014) is to estimate the overall cost of the project and its expected benefits. These estimates are made in parallel with other planning processes for establishing the scope of work and assessing the risk, resources required, and the schedule to be followed. The second step is to analyze the balance of cost and benefits by making the use of investment appraisal techniques (Hielkema 2014). Reyck et al. (2005) contrasted with the arguments presented by Hielkema (2014) and poised that the project is approved only when the benefits analyzed outweigh the costs, and the organization cannot get better returns by investing the capital
The two main issues in this case are the project analysis and financial forecasting. The project should be analyzed before doing the forecasting, because any recommendations on the project will affect financial forecasting for the next two years.
Therefore, we will expound and clarify below. Management Analysis Capital Expenditure On the surface, making sure a project measures up to a range of consistent, prescribed criteria in order to be accepted would appear to be a sound business practice. But in our opinion, we think DC only focused on the financial management. We think they should utilize the strategy map strategy.
For more than 25 years, The Little Black Book of Project Management has been introducing project managers to the incredibly effective and logical project management skill and methods to help them achieve their goal. This book has been flooded with very nee project management techniques as well as the latest standards of the Project management body of Knowledge (PMBOK) .accepted by PMI (Project Management Institute).
Project management is known as the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. In the diagram to the left in the picture you can see that as a project manager you are the center of either a great accomplishment or a major failure. Some of the major factors to being a successful project manager would be a person that is a great manage several projects or responsibilities and scope issues on an every day basis. If you have a pr...
Gray, Clifford F.; Larson, Erik W., Project Management – The Managerial Process, Copyright © 2001 by The McGraw-Hill Companies, Inc.
When making a budget for a project, we would build in an extra 10% to ensure it covers any unforeseen event. Then in processing the project, any cost must be accounted clearly. Every team member should be informed of the current usage of all resources. Then the listed usage should be accessible to everyone at any time. The project manager should also keep forecasting the cost as the project processing.
Making an investment towards a new project/product/company is hardly a simple process. Numerous factors including costs, benefits, time, and resources need to be taken into account before a decision to pursue a new project should be ventured into. At the end of the day prioritising projects and investing funds into projects that have the most potential towards favourable return on investment should be considered. Investment appraisal should not only be used for projects with a monetary return, it is also pertinent to use the tools where the return may not be easy to quantify such as training or development programs. Investment
Nagrecha, S. M. (2002). An Introduction to Earned Value Analysis. PMIGLC Symposium 2002 (p. 12). Project Management Institute, Great Lakes Chapter.
In today's business it is in the best interest of companies to have project managers. Common sense isn't always easily accomplished. Anyone who's ever worked on a project in a technical setting knows this. Indeed, much of working with others consists of solving unexpected problems and learning from mistakes along the way. Knowing this and having the proper tools a project manager will be able to manage and complete the most intense project out there.
One of the financial problem is lack of monitoring on the project cost and the cash flow will affected the company financial problems (S. A. Halim et al.,
Time-phased project work is the basis for project cost control. Work package duration is used to develop the project network. Further, the time-phased budgets for work packages are timetabled to establish fiscal measures for each phase throughout the project. The time-phased budgets are to emulate the real cash needs of the budget, which will be used for project cost control. This information is useful to estimate cash outflows. The project manager's attention is on when the costs are to occur, when the budgeted cost is earned, and when the actual cost materializes. This information is made up to measure project schedule and cost variances (Gray & Larson, 2005). The following are typical types of costs found in a project:
Project management involves all activities that encompass scheduling, planning, and controlling projects. A successful project manager ensure that an organization’s resources are being used both efficiently and effectively. Most projects need to be uniquely developed require a sense of customization and the ability to adapt to any posed challenges. The scope of effective project management includes defining what the project is and what is being expected to be accomplished. Projects are imposed to fulfill a certain need and project managers must have the ability to create the proper definition. Goals and the means used to attain those goals have to be clearly stated. Project Managers must also have the ability to plan
Project planning falls in the Planning Process Group which consists of those processes to establish the projects total scope, define the projects objectives, and courses of action to achieve those objectives. During the planning process, all the documents that are needed to carry the project through the project lifecycle will be developed such as the project management plan. Project management requires repeated feedback loops as additional information becomes available and is better understood. The planning process delineates the strategy, tactics, and path to successfully complete the project. With that, the planning of a project must walk through all the those processes from executing, monitoring and controlling through the closing process.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
“Project management is the application of knowledge, skills, tools, and techniques to organisational and project activities to achieve the aims of an organisation through projects” (PMI, 2003).