Importance Of The Project Management

Published Date: 02 Nov 2017

Introduction

Project: -

A project is an attempt that takes over to manufacture a product or service. Simply, it is organizing all the required resources in a modern way to meet the expected outcome. There are unique characteristics in a project. They are; Start and end, life cycles, budget, activities, resources, single point of responsibility, fast tracking, team roles and relationships. Moreover, there are two types in projects as International projects and Domestic projects.

1.2 Project Management: -

Project Management is the managerial attempt that assembling all the applications that required meeting the expected outcome of the project (http://en.wikipedia.org/wiki/Project_management, 21.11.2012 at 1.55 p.m).

1.2.1 Project stakeholders’ analysis:-

Project stakeholders are the people who engage with project such as customers, supporting functions, buyers, staff etc. The project stakeholders analysis is a document included with useful information about project stakeholders.

1.2.2 Project charter

Project charter is a legal document that signed by the key project stakeholders letting the directions on project management and objectives.

Advantages and Disadvantages of Project Management: -

Advantages: - Project management provides positive facts to organizations. Fine usage and control of resources exist within the organization; such as finance, physical evidences, human resources. Although, project management is important for improving customer relationship as it basically focuses on customer satisfaction. Moreover, the project management provides ability to develop the organization in short period. In addition it courses to low cost development of organizations. The project management is useful in maintaining company product quality improvement and increase the reliability of the services or products (http://www.managementstudyguide.com/project-management-importance.htm, 21.11.2012 at 2.00 p.m).

Project management helps to achieving high revenues and encourages improvement of productivity. The better coordination within the organizational departments and personals would be created and it influence to the stress management of the employees. Additionally, it leads to the high worker morals. The project management software could notify what have to be done firstly and it reminds that what can be forgotten.

Disadvantages: - The project management also has negative factors. Some people used to get uncomfortable with using project management tools due to difficulty. In accordance organization has to spend time on training the staff.

Although, the small projects could receive unnecessary attention that waste too much time on them. Also, the project management tools needed lot of data to create an output. Moreover, the project management software is an expensive tool than others.

Different types of projects: -

There are many types of projects could identified on project management. Basically projects could divide into two.

International projects

Domestic projects (Local projects)

International projects are much huge than domestic projects as it related beyond national framework. Moreover, there could see projects categorized according to subjects or the areas they focused on. As examples: IT projects, Construction projects, Software development projects, Advertising projects, Infrastructure projects, Science projects, Sports projects, Excavation projects, Destination management projects, etc.

1.5 Duties of the Project Manager: -

Project manager is the person who is responsible for the project. He uses his knowledge on previous projects to the success of the new projects. Although project manager always keep in touch with the project members to find out whether they do what expected to do or he had to assign that duty to another member who have ability to fulfill that task. Moreover, he leads all the members in project and helps them. Continues guidance and direction is one of his tasks. Moreover he should forecast issues that effect to the project in future and should take actions to prevent the problems before they blooms. Project manager is a risk manager. He should identify the number one risk and mange it accordingly the project expectations (Colin Bentley, http://www.projectsmart.co.uk/role-of-the-project-manager.html, 23/11/2012 at 7.00 p.m).

Moreover, Project Manager is the responsible person for communicating the project status to the senior managers and clients. The success of the project is the satisfaction of client; in addition Project Managers have to keep links with clients while the project is in process. Otherwise the outcome of the project might not be in a position to meet the customer satisfaction. Moreover he leads the decision making process of the project. The lowest level decision making is handling by project manager.

More about project management and project management tools will be consider in the following chapters.

Discussion

2.1 What is project management: -

The managerial process of undertaking some sort of listed activities to achieve the targeted outcome simply called project management. The management of nine knowledge areas categorized under the project management is another definition creates to define this subject. They are Integration management, Scope management, Time management, Cost management, Quality management, Human Resource management, Communication management, Risk management and Procurement management.

2.2 Importance of the project management: -

Project management basically measures the potential risks and finding solutions for the forecasted problems. Therefore, project management is important in managing costs, preferable productivity, risk control and achieve the determined objective.

The effective use of resources to achieve goals and minimizing wastage would helpful for cost management. Generate products in the way that maintains both quality and quantity has mentioned as preferable productivity. Ability to control the potential risks and make solutions is one of the important facts in project management. Ability to achieve determined goals means meeting the satisfaction of the customer.

2.3 Stages of project management: -

Project management subject could be dividing into five stages. Those stages have interaction with each other as a circle.

Initiates the project

Planning the project

Executing the project

Monitoring and controlling the project

Close out the project

The project initiating is a critical task in stages of project management. Project defining is determining the exact expected outcome. Under this stage, authorized group for project charter and the budget will be identified. Although the project group and other stakeholders will be identified while defines the scope of the project.

Planning the project is another heavy task which is combining all the resources that required making the project success. Physical resources, financial resources, human resources, timeline would be collaborate by this stage while manage the future conflicts that could be courses within the project.

Project execution is doing the activities that previously planned. Management of various facts and work with the potential issues and risks, keep links with stakeholders would keep the project in the correct path on this stage.

Project monitoring and controlling is carry out parallel to the project execution. This is the stage of searching whether the project runs in the right path or maintain the path of the project carry on. If there is any issue with the projects way of running it would be corrected by this stage.

Close out the project is the end of the existing project. It may be achieving expected outcome. There are several activities related with project close out. Hand over project deliverables to the customers, if there are any open contracts they should be closed before the project close out, the project staff should be released and report the project success to the sponsor are the key activities of the project close out.

2.4 Integration management:

Integration is conjoining the main project management components; Planning, Execution and Control.

2.5 Project scope management: -

The management process of indicating the entire tasks of the project that which is essential to achieve the final outcome. Scope consisted of all the required activities to make the project invented. Scope management contains authorization, scope planning, scope definition, scope change management and scope verification the core incidences that manage the scope fairly.

2.6 Project time management:

Time management of the project is estimating the time required for the each activity and start to the end of the project at large. Activity definitions, activity sequencing, duration estimating, establishing the calendar, schedule development and time controlling are the key functions.

2.6.1 Gantt chart: -

Gantt chart is a bar chart which is using to indicate time of activity’s start and end. Although it has ability to indicate the work that already done and work those have to be completed.

Figure 2.6.1.1 Gantt chart

Source: http://www.projectmanager.com, 13/12/2/012 at 3.00 p.m

2.6.2 Critical Path Method: -

Critical path is the longest way to achieve the final outcome. It is the time duration takes to complete the entire project. Critical Path method is using for determine how best to reduce time required to perform routine (Bansal ,2010, pg 220).

2.6.3 Network Diagram: -

Network Diagram is indicating all the activities of the project and their interaction. The milestones, interdependent activities, actual start and end of each task are showing in the Network Diagram (Bansal, 2010,pg 224).

Figure 2.6.3.1 Network Diagram

Source: https://www.e-education.psu.edu/files/geog584/image/fig6-8.jpg, 13/12/2012 at 3.05 p.m

2.6.4 Project Management Software: -

Project management software is an IT tool which uses for large projects. It is fast and accurate than manual methods. Moreover, project management software has the ability to be used by several people at a time and it needs less manpower. There are several project management software in the market. Ex: Ms projects, Primavera.

2.7 Project Quality management: -

Project quality management is the managerial process of testifying that project will meet the satisfaction of need at last. Determining the required condition, quality planning, quality assurance and quality control are major functioning components of quality management.

2.8 Finance management: -

Project finance management is the process that related with managing the expenses of the project according to the decided budget. Key functions of the cost management are; resource planning, cost estimating, cost budgeting, cash flow and cost control. All the projects have two types of costs, as Direct cost and Indirect cost. Direct cost is the expenses for staples, labour, equipments where the Indirect cost is cost of supervision during the execution of the project (Bansal, 2010, pg 232).

2.8.1 Cost benefit analysis:-

Cost benefit analysis is estimating the equivalent money vale of the benefits and costs to the community of the project.

2.8.2 Cash Flow statement:-

Cash flow statement is the document that correspondent the money flow in and out of the project. Brought forward money, expenses, incomes are indicating is the cash flow statement (Burke,2003, pg 196).

Cash flow = income – expenditure

(Burke, 2003, pg 63)

2.8.3 Net Present Value (NPV):-

NPV calculating the cash flow with inflation and indicate the actual value of money in time periods. This method indicates the timely value of earnings.

NPV= discount factor*cash flow

(Bruke, 2003, pg 63)

2.8.4 Return on Investment (RIO):-

RIO is indicating the average profit converting to percentage of the total expenditure.

Average annual profit = (Total gains) – (Total outlay)

Number of years

Return on investment = Average annual profit * 100

Original investment 1

2.8.5 Payback period:-

The payback period is the time duration that gains financial result parallel to the initial investment.

2.9 Human resource management: -

Project human resource management is which assuring the effective and efficient use of people to make the project goals success by recruiting the right personal to the right task, train on project special features and reward them in a suitable way (Gosh. 2000, Pg 3-5).

2.10 Communication management: -

Project communication management is the mode of collection and propagation of project information. According to PMBOK it is the process required to ensure timely and appropriate generation, collection, dissemination, strong and ultimately disposition of project information (Bruke.2003,pg270).

2.11 Risk management: -

Project risk management is related with identifying, analyzing and responding to the risks that influence to the project functions.

2.12 Procurement management: -

Project procurement management is accruing services to project from outside the project area.

2.13 Project Management concepts: -

2.13.1 Total Quality Management (TQM)

All the companions in organization engage to enhance the function, working culture, products and services to meet the customer satisfaction (http://asq.org/learn-about-quality/total-quality-management/overview/overview.html, 12/01/2013 at 6.30 pm).

2.13.2 Management by Objectives (MBO)

Manage the employees to achieve the goals and objectives of the organization through let the employees understand the company objectives and their task on achieving them. (http://en.wikipedia.org/wiki/Management_by_objectives, 13/01/2013 at 6.45 pm).

2.13.3 Six Sigma

Six Sigma is the method of managing quality of the products through managing the causes of defect in outputs. The Six Sigma method is used to cost reduction and increase the profits (http://en.wikipedia.org/wiki/Six_Sigma, 13/01/2013 at 7.00 pm).

Conclusion

Project Management is a useful subject in hospitality and tourism industries as is provides support to the well planned tourism projects to implement. Reduce the costs and time while executing the previously designed project. Although, project management support to identify the futile investments. Therefore top management has the ability to avoid those futile investments which will be waste of resources.

On the other hand project management indicate the entire resource availability of the certain projects as the management could get a chance to set up resources required for the project and ability to use the perfect personal for the suitable task with sufficient resources.

Most of projects in Sri Lanka are not runs with a proper management process. In addition, most of resources are wasting for useless investments. This new subject should encourage within the tourism industry in Sri Lanka where there is a high demand and the latest trend of economic growth of the country.