Question

Hi, can you answer this question in more detail?

Subject: Project Management

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Why project management has become such a popular business tool in recent years? Discuss with a company case as example.

Answer 1

To understand the vision and mission of the company there is formation of projects for short run.If we see the past decade the process of performing business has totally changed. The era of liberalization and privatization has given new scope to the business for gaining competitive advantage, innovation or expansion and diversification.

How Project Management helps the company

• It reduces the product life cycle
• importance to core area of business
• diversified workforce engaged in single project
• increase in new product and innovation.

Why it is important ?

• Planning for anything is the first step. In project management the target is decided the time taken taken is decided and the method to achieve the target is also decided. Therefore it helps monitoring the actual process with the decided standard project.
• If everything is planned and pre decided that means there is no over utilization of resources , the quality of the goods are maintained as per the standards,and also scope of improvisation is increased.
• The scope of project are temporary in nature however the effect is long lasting. For e.g. if one is the product manager and is asked to change the ongoing process. What all activities you will conduct? The answer would be continuous monitor on daily basis the existing process and the result generated from that process.Thereafter calculating the idle time and making an efforts to eliminate it. This type of projects are of short term but giving solution will improve the efficiency of the production department. Likewise if every department is assigned a project manage is the department is divided into various small projects. Soon the company will be able to know the lacking areas vice versa.
• Therefore project management means to break the vision and mission into smaller process of short run that will ultimately achieve the long run.
• The CEO of PMI in his speech once said that the company not following or opting for project management will be taking too much risk to survive in the market. Therefore the project management helps to built strategies which in help to bind the resources to the objective.
• Breaking the vision into small process will clear the objectives and pressure from the top management.
• The management and planning will enhance the good leaders among the team having creative approach and will also sort the duties of the team members.
• Standard project will helps to reduce the cost of production and improves the efficiency of employees.
• From the above discussion it is clear that project management helps to
  • improves efficiency
  • reduces the cost of production
  • right person is employed for the right job
  • SME is appointed in the team
  • leadership is enhanced and the product manager is able to take care of the work of top management
  • utilize resource in line with standard project as planned.
  • The project rates also helps in deciding the probability of successful and failed projects

Let us understand with the help of example that why is the need of project management

Consider any of the automobile company. They are associated with assembling the parts of the cars and manufacturing it.They are even in the business of designing the cars and other four wheelers. Each job performed by the company is the kind of project. Like designing the cars. The research department takes months to analyze the best possible technology to be used in cars thereafter the production cycle performs their duties to enable the work of research department.

In this way the research department by spending months have created the draft of the project that what all needs to be included in the new car. While deciding it with top management the final project has been decided and is on papers. The next duty of production department starts to make the product as per the decided process.In this way while taking into consideration the project the product is formed and also if any deviation has incurred that is also calculated.

This is why project management is needed as it helps to make the product in line of standard project and also with less time and with optimum resources.

Now consider the situation where there is no project management?

The research department will not perform the duty and the random car will be produce without knowing the exact resources and time utilized in that car. This will eliminate sustainable development of resource and the company will engage in that project only. Hence making loss to the company.

CONCLUSION

Therefore we can summarize as

• projects are temporary in nature and are unique , each project so formed will enhance the core efficiencies of the employees and the machines
• the completion of one project and than shifting to next project helps the company to achieve their visions
• there is proper allocation of resources and time
• Risk is also certain and mitigate.
• .The expectations of the stakeholders are also fulfilled.
• the combination of knowledge , skills, tools and resources helps to maintain the successful project.