Customer value - measure for project management value, Project Management

Customer value

There is a considerable debate within the business world on whether the companies will have to deliver value for the shareholders or the customers. There are many techniques that give value to the customer. One such method used is the 'lean production'. The project duration and the cost are considered in the 'project-as-production system' terms, that is, the total project cost and the duration of the project are more important than the cost or the duration of any specific activity. The co-ordination is accomplished generally by the central schedule, while the details of the work-flow are managed through the organisation by the people who are aware of the project goals performance. The value to the customer and the throughput, the movement of the information or the materials to completion are the primary objectives. The improvements will result when wastes are reduced, where the difference between the present situation and the ideal situation which is defined as meeting the customer's distinctive needs in the least time.

The lean thinking focuses attention on how the value is generated by reducing the waste rather than how any one of the activity is managed.

Whereas, the traditional project management views the whole project as the combination of different activities, lean thinking views the entire project in a different way. It is considered as one large operation (the entire project).

For the organisations which sell products and provide services, metrics for estimating the impacts of the projects on the customers are required. The field of economics gives many different metrics for measuring the customer value which includes the concept of consumer surplus. The field of the market analysis has developed many customer satisfaction metrics. Another common approach is to adopt the metrics which will describe the particular product  or  service  characteristics  which  the  customer  will  care  about. Looking at the customer's point of view, the attributes of the product and the service quality and the price may be the chosen factors. While adopting such models, it should include the customer choice and also the market penetration models for predicting the dynamics of the new sales.

Posted Date: 9/29/2012 1:00:43 AM | Location : United States

Related Discussions:- Customer value - measure for project management value, Assignment Help, Ask Question on Customer value - measure for project management value, Get Answer, Expert's Help, Customer value - measure for project management value Discussions

Write discussion on Customer value - measure for project management value
Your posts are moderated
Related Questions

PRODUCTION PLANNING AND SCHEDULING OF A GARMENTS MANUFACTURING COMPANY 1. Introduction TREND SHOPS SDN BHD is a manufacturing unit of (mid-upmarket) ladies garments.  It

Disadvantages of Product Layout - High Overhead charges Due to heavy investment, the overhead fixed charges also tend to be high. A decline in demand for the product will rend

Define the term Earned Value Management in short. Earned Value Management (EVM): Earned Value Management (EVM) is a project management system which combines schedule and

Explain the advantages AND disadvantages of having a matrix structure for managing a project. For projects that require a range of skills and involvement of staff from dissimil

Tony Taxpayer''s return case study. Question is to apply general attribution theory to analyze and explain each parties attitude and conclusions.

QUESTION 1 One way to classify team cultures is broadly to classify them as being closed cultures, partly-open cultures and fully open cultures. Explain the features of the t

IT is the ultimate goal in TQM and thus forms the focal element in TQM. The company should exceed the customer expectations and make him delighted. This means giving

Weightings of performance against the success criteria In any discussion on success, it is necessary that a distinction is made amid project success and the success of the proj

S hareholder value Project management initiative brings a renewed interest among the shareholders. The major investors show more interest by becoming active in the organisati