Whether you are a student of MBA or of accounting or a student of Information technology, sooner or later you will have to take a class on Project Management. Project management is taught by a combination of written university project management assignments, project case studies, and scenarios as well as sample project management examples and actual project management report writing. Often students find it difficult to study papers as the course is an interdisciplinary mix of accounting, finance, business, management, and IT computers. Therefore, without a thorough knowledge across all of these fields, students can often perform badly in their project management assignments and project work leading to low grades.
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What is Project Management?
The project management is essential for organizational success. It is a part of the organizational workflow, and it is necessary to maintain efficiency in the tasks carried out.
Gaddis (1959) defines the project as “an organization unit dedicated to the attainment of a goal” defines Project Management as a “formal discipline that has been developed to manage projects”. Project management involves planning, scheduling, and controlling of various activities to meet the project objectives.
The examples of project management include:
Planning and providing responsibilities in project management:
Scheduling in project management:
Reporting & Controlling:
Project management is carried out in a wider environment than the project itself. Therefore, the guiding processes are important. These are some of the widely used the Project Management Methodologies
Waterfall: It is suitable for industrial firms, mostly in product development and construction.
PRINCE2: This project management methodology is based on the product, so its processes are focused on obtaining concrete results rather than on the planning of activities.
AGILE Methodology: It assures flexibility and the ability to modify the product throughout the project. By progressively, completing the different phases, the final product is obtained. It is based on the principle of whatever works. It is suitable for the IT sector.
Scrum: A short-term methodology, suitable for software development. There is no project manager here; everything will be handled by the Scrum Master, who initiates, controls, and monitors all the work done.
Kanban: The KANBAN system is an agile project management methodology, that has its origin in the JIT production processes. It makes use of the labels and cards to identify the needs. It follows the traditional approach.
PMBOK: PMBOK presents several phases of a project in a linear way where the need/solution, the scope, and the planning is established in the initial phases. It cannot be used in combination with other more agile and flexible methodologies. It follows the traditional approach.
LEAN: Used by Toyota in the ’70s, it is suitable for an industrial setting that aims at efficient production. The management specifies what to produce so that the teams can start working towards those goals.
Time Management Skills: Time is an important element in the project. Keeping track of the time and the project is critical to making a project successful.
Teamwork: Being able towards the team objective over the individual object is a critical skill that is required to flourish in an organization.
Communication Skills: It is necessary to be an excellent communicator to ensure that all people understand what is expected of them, know the message, and the implications and can also expect to be understood by the higher levels. For instance, effectively communicating the project needs to help the end-user to prepare for the outcomes of the project.
Leadership skills: Leadership motivates all their actions and transmits these values to the teams, who get their enthusiasm and identify with the goals set. A good leader can change the course of a project.
Attention to detail: Project management is based on the details. Each element causes an impact on the final result. The success of the project depends on the ability to interpret those signals and make decisions on time.
The Project Management Plan is defined as “a detailed framework of the Project, the records, the work order files, the change requests, the reports and everything we generate after the day in the Project documentation”. Before we start planning the Project, an object of the process to develop the Project Management Plan, we need the Project Manager and the Sponsor in a strictly internal document to agree on a mutual commitment. The Project Management Plan establishes "what", "when" and by "who" carries out the tasks of the Project.
Project conception and initiation: Two of the major steps in this step is identifying the necessary resources and delegation of the work.
Project definition and planning: The resource utilization plan must be developed to make sure the resources are utilized effectively. The scope and limitations of the project must also be developed at this stage.
Project launch or execution: With the help of the execution and launch plan, the activities to be carried out can be decided. A detailed work plan development is critical to making the project successful
Project performance and control: This includes the regular management tasks but in the scenario of the project. This process includes the control and maintenance of the variables in the project and reporting it to a higher authority.
Project close: Once the project is completed as per the close plan, the review task can be carried out to see what are all the areas that need improvements.
Now next let us help you understand project risk management definition, the process of project risk management along with suitable examples of project risk management
Risks are defined as the uncertainties associated with a project. Project risk stems from the uncertainty of any project. Project Risk Management is defined as “a wholesome activity that involves monitoring and controlling the various uncertainties associated with a project.” The level of uncertainty is the highest and, therefore, the risk of not complying with the objectives are higher at the beginning of the project.
The various steps in project risk management involved, identifying risks, implementing risk analysis, planning risk response, and controlling risk. The goal of project risk management is to increase the probability and impact of positive events in the project and to reduce the probability and impact of negative events in the project.
What is Lean Project Management? Definition & Methodology of Lean Project Management
The lean project management follows these sets of objectives “quality, speed and alignment with customer expectation” Lean project management seeks to eliminate everything that is not adding value to be able to focus only on what is necessary in the present moment.
It is a part of the agile methodology discussed above. The main benefit of the agile methodology applied to project management is the reduction of bottlenecks. Although in its origins it was of exclusive application to IT projects, today its use has been extended to many other areas that enjoy its advantages, some shared with the lean methodology.
Project Management Benefits
Definition, Phases of Project Life cycle & Models of the life cycle of the project
The life cycle of the project defines the phases that connect the beginning of a project with its end.
The life cycle of the project can help the project manager to determine if one should treat the feasibility study as the first phase of the project or as a separate and independent project. The phases of the life cycle of a project are Initiation→ Planning → Execution → Monitoring →Project closure. The transition from one phase to another which includes preparation, control of the work, the execution, and a closure of the project.
The project life cycles define:
At the beginning of the project we have to make much effort, but we have very few costs, the staff is small, and the costs are also reduced to be able to carry out the product. However, when we move on to the execution of the project the costs increase as well as the required time.
Goldratt proposed the Theory of Constraints in the management. It aims at providing mechanisms to gain some control over their operations in the project. The theory of constraints is defined as “…a systemic way to identify constraints that hinder the system’s success and to effect the changes to remove them.
The theory of constraints consists of various concepts such as the performance measurement, logical thinking, and logistics process. By integrating all three concepts, a five-step process was developed.
Project Management Planning: Process & Tools
Project Management planning process
Planning-Devising a workable project plan that can accomplish the project objective
Executing- Executing the plan
Controlling- measuring the progress and finding areas of improvements
Creating a project proposal
There are seven steps in creating the project proposal. They are
Step 1 - Describe the project in general
Step 2 - Describe the project clearly
Step 3 - Describe the Project modules
Step 4 - Aspect of Project Technicians
Step 5 - Costs and Time
Step 6 - Describe the Project's Advantages
Step 7- Closing the project proposal
Submitting a project proposal
Submitting a project proposal involves the following
five famous Project Management Software
The dependencies of a project refer to the projects that cannot be done without the other project is completed, started, or at least in progress. It can be formal or informal and helps the project manager to manage a project to completion effectively.
The Contingencies in a project are the resources designated for a specific project. They are earmarked for that particular task, and it cannot be used anywhere. Most of the time, these resources will be held in reserve. The contingencies of a project are mostly financial resources, and most of the time it mentions the cash flow. It is also used as a risk-mitigating mechanism on a project.
The cash flow resulting from the project is more important than the profitability associated with a project. Projects are part of the larger project in an organization. Moreover, therefore, the cash flow management on a project is paramount.
For instance, the cash flow of a project will look like this
The project selection, in general, will be done based on the present value of the future cash flow among many other things. There are three important factors to be considered in managing the project cash flow. They are fund utilization, budget implementation, and evaluation of results. These are the three critical aspects of managing the financial and cash flow part of the analysis.
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