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
i need a 5000 words report, i have already submitted a project plan from a material. i want report from already available material and some portion from yours as well.

Creating a Risk Management Plan  The main aim of risk management is to develop a well-structured approach to deal with any kind of uncertainty, which create threats in the proj

How to determine which project have larger net benefit between two projects

The Head of Insurance at JKL Bank has been considering how to make efficiencies in the operation of the Car Insurance Business Unit. One option under consideration is to outsource

• Develop a project concept. Find a stakeholder who will act as sponsor for the project. Outline the business problem that the system is intended to address, and establish an initi

What are the principal problems of managing projects in a fully functional organisation structure? The major problems of functional organisations are to perform with what may b

Multiplicity of processes available for a job the selection of an appropriate process is not an easy matter. Choosing a process with over capability is as bad as choosing one w

Internal and external factors influence the organisational culture Culture facilitates internal integration and harmony as well as external adaptation according to environmental

What are the advantages of the revolution of changing in information technology? The positive side of the strides made within the realm of information technology is more benefi

Q. Brandi is working as a project manager on a software project. About halfway through development, her team concludes that they had not estimated enough time for some of the techn