Principle Components of Project Management System
To ensure that the right project is undertaken, the project proposal selected should be in support of the GIG strategy and objectives. The limited resources necessitate for the need of only selecting the most viable project proposals. The value, alignment, and probability of success of the proposals considered before the final decision is arrived at. The selection step marks the starts of the project, and its accuracy and viability provide a basis for significant choices made that affect the whole project. The project manager needs to put up a strategy that contains project identification and project selection to help find the right projects for the company. The projects that bring in strategic benefits like competitive advantage and employee and customer satisfaction are given the top priority.
The projects get scores and are ranked. The project with the highest score gets the top priority. The projects are after that selected and the staffing of the project teams done (Project Management Knowhow, 2018). The project is limited to the available resources, and it is important for the GIG to consider the evaluation and prioritization report. The staff of the group PMOs is experienced program managers Project Control. Plan function and also tracks the progress of the project. It shares important information regarding the project to other groups performing various activities for the project. • The functional organizational structure where the various components of the project are divided into functional units with individual responsibilities (ProjectSmart, 2018). • The project-based organizational structure where an independent project team that separates from the parent organization is created.
The project manager needs to define the interface between the projects and obtain an efficient Project management software to enable the efficient running of complex programs. The success of the program will be determined by proper project governance, project assurance, and alignment, effective management, and the integration of the parts. Implementation of a program will require substantial cash outlay and the manager needs to ensure that he/she provides that. The success of the program depends on the allocation of resources (Cohen, 2017). Planning and Scheduling. e. GANTT Chart, Linked Bar Chart, Milestone Chart are analysis charts that give a general progression of the project. • The line of Balance Scheduling Technique that allocates the resources required for each step or operation to be achieved within the timeframe allowed.
It is relevant for repetitive work. • Schedule Work Analysis gives a graphical display of consistent correlation of the elements of the project work in a logical sequence. It is done at a lower cost and quick results, but the results are not very reliable. • Parametric estimation uses historical data and its relationship to variables to estimate cost. It is relatively accurate when compared to Analogous estimation. • Three-point estimation. This technique reduces biases and uncertainties caused by assumptions. Controlling and monitoring of processes ensure that the project remains on track and effect change where needed (Kerzner, 2017). The Monitoring & Controlling process can be summarized in eleven processes. The first process is the Control and monitoring of the project work. The reviewing and tracking of activities in the project.
It is the generic process under which all other processes fall (Sharma, Bright hub project management, 2018). ” Communications, Metrics and Projects Updates. Project information is important in its execution. Effective techniques need to be used in the creating, collecting, storing, distributing managing and retrieving project information. Stakeholders expectations and feedback is relevant in the managing of the project's information. Proper communication skills like communication competence, nonverbal communication, feedback, and presentation play an important role in effective communication in the project. Matrices Performance matrices are kept through the lifecycle of a project to be better understand the complications that may arise. These metrics allow for an accurate understanding of the project success, status, and profitability (IES GS, 2017). Some of the metrics in the project's life cycle include: • Planned Value (PV) is the cost budgeted the project should cost as at the date of reporting PV= project workers hourly rate x the hours left scheduled on the project • Actual Cost (AC) is a record of the amount of money spent on the project as at present.
AC= the sum of all expenses on the project as at present. • Earned Value (EV) is the budget that is approved for the projects finished on time. ROI= uses Actual Cost & Earned Value metrics in the computations. • Gross Profit Margin (Margin) is the cost at which revenue is generated at the business. Margin= (Total Profit) -(Total Costs)/100 • Resource utilization measures how the individuals in the team spend their time working on the project and compares both billable and non-billable activities. Project updates. Every project needs a proactive update on its status preferably weekly. The project needs to have a risk management plan. An elaborate plan involves risk assessment and mitigation strategies (Sharma, Bright hub project management, 2018). Risk identification. Checklists of potential risks are used and an evaluation of the possibility of the occurrence of risks on the projects.
The manager and the team have to be meticulous in identifying the sources of risks by category, i. Risk can be avoided by using substitutes with a better probability of succeeding or using the existing proven techniques rather than adopting a new one. • Transfer. This is where another party agrees to bear the risks in the event they occur on behalf of the project. This is usually done by purchasing an insurance cover for the project. • Risk sharing- where the risks evaluated are shared among partners. The software's enables the project to be updated, and the manager can check the development of the project. Current constraints are managed, and future constraints predicted and an analysis of the project's path done through the software (ProjectSmart, 2018).
Technology is a new dynamic in project management and has a big impact on the life cycle of a project. From tracking costs, project updates, scheduling and monitoring, controlling and overall performance of the project; these software's are useful. Complex projects are undertaken by GIG with large amounts of data that prove challenging to project managers are simplified by the project management software's (Cohen, 2017). The manager has a task to control the progress of the project at the different functional units. A centrally placed office at the PMO is advised, and its main duty will be to facilitate intensive control of the project (Staffan & Patanakul, 2010). The project's plan is a blueprint of how the project should be executed and contains all the projects essentials.
The scheduling allows the project manager to lay out the actual job and in the right order to be executed. Planning and scheduling for projects to be implemented by GIG are relevant. The information technology should be incorporated into the project management and the right software applications put in place. Technology will allow the project managers to have more control of the projects with much closer monitoring. This improves the efficiency and ensures that the projects are completed on time. Justification. Effective project management system ensures that projects are completed on time. The divisions in the PMO organizational structure performs different duties that ensure the standardized and effectiveness of the project. The GIG PMOs are responsible for managing the divisions PMOs while the division PMOs manage the group PMOs.
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