Importance Of Project Management

Published Date: 02 Nov 2017

INTRODUCTION –

A Project is "A temporary endeavour undertaken to create a unique product or service or result" (Rory Burke 2003, p.2) and would differ from size, scope and time spent and would have a definite end to complete a specific objective, through a unique set of interrelated tasks and utilization of resources and costs.

Hospitality is an industry constantly been developed in an ever changing market due to its demand. Refocusing on concepts and its products has become more complex where the industry has moved from providing accommodation and services to offering consumer product in a developed market.

Hospitality and Tourism development projects could focus on,

Construction or renovation of a hotel

Include a new sports or spa treatment centre to its existing business

Improving its sales and marketing

New advertising campaign to launch new products

Improve its customer service and staff training

Fund raiser or social responsibility activity

Conducting an audit to improve its quality

Projects further have become more complex and are lengthy processes of conceptualization, planning and construction even before its operational and generate income. (Rinsley & Ingram 2006)

Features of a project would include:-

A Start and a Finish - Might be difficult to define a specific time period

A life Circle – Has a beginning and end with difference phases taking place

Budget – Associate with cash flows

Resources – Coordination with inter departments or may be raw materials

Responsibility – Taken up by a Project Manager

Fast tracking – Pre- selling or marketing the product

Team Role – Team building

Importance of Project Management

Is a defining factor for an organizations success and determine potential risks to an organization which in turn could bring timely solutions to overcome a situation. It’s further essential as a planner for an organization to achieve its goals and objectives.

Organizations would execute its own planning which will differ from one organization to another to gain its desired results and requires lager capital investment and a wide range of managerial skills. (Rinsley & Ingram 2006)

Figure 1- Process of a project

Source – Author concept

With the allocation of tasks, the Manager in charge is responsible for drawing out a plan in the above mentioned order and thereafter delegates his team with tasks which is supervised thereafter. Further is seen through quality of the product, customer satisfaction, employee satisfaction, efficiency and mitigation of risks involved. (asp-press.com-2012)

Project Management frame work

Focused on balancing the following aspects which will determine the deliverable objectives

of the project.

Time Management

Cost Management

Scope management

Quality Management

Project Management knowledge areas

Further defined as Project Management body of knowledge - PMBOK as nine knowledge area’s.

Project Integration – Integrates three main processes such as Planning, Execution and Control. Further is effected by all following knowledge areas.

Following knowledge areas leads to specific project objectives.

Project Scope - Primary concern is defining and controlling what is and not included in a project to meet stakeholder goals and objectives. Further consists of scope planning, scope definition, authorization, scope change and scope verification. (Rinsley & Ingram 2006)

Project Time - Estimating the time of completion of a project. Activity definition, sequencing, estimation its duration, establishing a calendar, schedule on the development and time control.

Project Cost - Preparing and managing budgets for the project, further ensuring that the project is completed within the approved budget. Consists of resource planning, cost estimation, cost budgeting, cash-flow and cost control.

Project Quality – Ensuring the project will satisfy the needs that were required, making and determining the required condition, quality planning, quality assurance and quality control.

Following knowledge areas are the means which the project objectives are achieved

Project Human Resource – Make effective use of its team members involved.

Consists of organizing and planning, staff acquisition and team development

Project Communications – Involve in generating, collecting, disseminating, storing. Consists of communication planning, information distribution, project meetings, project reporting and administrative closure

Project Risk -Analyzing, identifying and responding to risks. Consists of risk identification, risk quantification and impact, response development and risk control. (Rory Burke 2003)

Project Procurement - Involves in acquiring goods /services to a project. Consists of procurement planning, solicitation planning, source selection, contract administration and contract closeout.

Stake holders in a project

Project sponsor

Project team

Project manager

Support staff

Customer

Suppliers

Stake holders are actively involved in the project and interest may affect positively or negatively on completion of a project. Further have different levels of responsibility and authority over the period of the project life cycle.

Tools for Project Management

Tools and techniques that assist project teams in various aspects

Project Finance Management

Cost benefit analysis :-

Finds, quantifies and adds positive factors which are the benefits. It identifies and subtracts all negative costs. Example: Sub contracts given to dealers in close proximity which will avoid delays and additional costs. The analysis will suggest a

Value to be imposed on all costs that will benefit including tangible and intangible Returns of a proposed project (Rory Burke 2003)

Advantages of Cost Beneficiate analysis –

Analyzing future benefits – if the project is viable to proceed and what future benefits it would bring actual costs associated with the project.

ii) Exploring the unknown facts - Analyze all costs-benefits and value.

iii) Flexibility – Could make amends according to company needs.

Disadvantages of Cost Benefit analysis –

Due to human error if incorrect information is provided on actual costs for the project, it would lead the company been unable to arrive at an accurate estimate.

Unable to identify intangible cost and benefits.

Project Time Management

Gantt Charts –

A commonly used tool in Project management and are horizontal bar charts developed to control projects. It further provides graphic illustration that helps plan, coordinate and track on specific tasks in a project. Its further flexible and could make changes and create new updates.

Figure 2- Gantt Chart

Source – http://www.google.lk/imgres

Advantages

Provides visual sketch on a project

Possible to make amendments and create new up dates

Costs can be formulated which shows planned, actual an variances

Disadvantages

Gantt charts does not show relationships between parallel activities.

Complicated to demonstrate on larger projects

Critical Path analysis –

Effective method for planning and managing complex projects, normally known as flow diagrams (organized in a line) specifically a time-line. A commonly used tool in CP is PERT (Program/Project Evaluation and Review techniques) which specializes to identify related and interdependent activities and events specially in a project which contains hundreds or thousands of connected elements.

Network Diagram

Displays project schedule activities in order to show relationship and dependencies between all tasks. Network planning’s were developed by Flagle, of the US Navy. Further Network diagrams can be the process that begins after predecessor’s activity is complete. (Rory Burke 2003)

Figure 3- Network Diagram

Source - http://www.google.lk/imgres

Project Management Software –

Includes many types of software, for example estimation, planning, costs and resource allocation, communication, quality management and administration systems used on large projects. (Rory Burke 2003)

Figure 4- Project management software

Source - http://www.google.lk/imgres

Advantages :-

Facilitates to track the activities to complete the project

Facilitates resource planning based on the need and its availability.

Facilitates reports, schedules, assets, budgets and critical path for the project

Facilitates communication on the project performance related parties

Disadvantages;

Incurs additional cost to restructure and train staff on the software.

Productivity on the project may decrease during implementation

Employee moral may decrease during implementation

Backup systems to be used to avoid data loss

Theories in Project Management

Theory of a project is based on the transformation view on operations of a project on its inputs and outputs. Also this information is useful to accomplish the tasks and operations

In an effective way. (Dinsmore,1993).

Total Quality Management

TQM is a process for continuously improving the quality of products and its process. It further capitalizes on the involvement of management, suppliers, workforce and customers to meet or exceed customer expectation. (Young L. Trevor 2010)

Figure 5 – TQM

Source – Adapted from Google images

Advantages

Concentrates on its reputation on products and its services.

Assist to identify unwanted waste and production

Productivity and efficiency is at a higher level.

Disadvantages

Additional costs for initial training and adequate motivational programmes to its employees.

Employees may be resistant to change

Information Management (IM)

A collection and management of information from one or more sources and its distributing that information to one or more audiences and would involve those who have a right for that information. Management means the organizing and control over the structure of processing and delivery of information. (Wikipedia 2011)

Advantages

Improves quality of the product by providing relevant information for sound decision making

Minimizes information overload with summarized date and avoid confusion

Brings coordination by keeping each department aware of the problems requirements

Disadvantages

Creates job redundancies due to been streamlined and out sourcing

Although communication is made quicker and more convenient privacy issues arise due to email hacking

Due to technology improvement there is a lack of job security

Management by objectives

An approach which allows the management to focus on achievable goals and attain the best possible results from available resources is referred as management by objectives. Further focus on what needs to be achieved and quickly, discriminate between tasks that must be completed and those that just take up valuable time and waste. (mindtools.com 2012)

Advantages:

Objectives are clarified and suggestions are obtained for improvement

Performance of staff is assumed and improvement is highlighted

Can improve moral and communication

Develops leadership qualities

Disadvantages

Achieving objectives may be at the expense of organizational goals

Takes few years to be effective

Review and counselling may be ineffective for manager.

If targets are raised staff may become frustrated

Importance should be placed to the stakeholder/s and end receiver/s where needs are met and goals set for the project should be SMART –(specific, measurable, agreed upon, realistic and time-based) (Project Smart 2012)

CONCLUTION –

This discussion paper was made to introduce the subject of project management and its implications. Some view project management as a tool to force people to meet schedules and keeping to budget. Its more effective for a project manager to be aware of the module to advice and counsel the stake holder / owner on minimizing risks. A successful project benefits all participants further defined as a set of interrelated activates necessary to achieve and ascertain goals utilising time, budgets and resources

A project will not necessarily be a success even if it was implemented successfully by the operator and user. There are many projects that failed in its implementation phase which have later proven successful. Further we cannot assume that a project with major failures in terms of time, cost and quality flaws will turnout as failures. For example the Sydney Opera house, was initially to be completed in six years, with a budget of 7.2 million Australian Dollars. In reality it took nearly 16 years with 102 million Australian dollars spent to complete. Today it’s got international recognition and has bought in financial gains and has placed Sydney on the international map. (Dr.Knut Samset-2004)

Often a successful project is not possible without a leader (Manager) and when achieving goals seem impossible a leader’s determination and vision can change things around. As Bernard Shaw summarized "you see things; and you say, why? But I dream of things that never were; and I say, Why not? (Professional practice 2012)