Reference no: EM132275442
Project Management: Opening Statement
In managing operations, we are often faced with activities that do not fit into the usual day-to-day operations of the firm. These non-typical, unusual activities of the firm are called projects.
Therefore typical daily, weekly or monthly activities of a firm involving scheduling, quality control, purchasing, etc. are not categorized as projects. Due to their unique nature, projects require different management approaches and techniques. A list of project examples is given below:
1. Installation of a new bar coding system
2. Installation of a new computerized production and inventory control system
3. Design and development of a product prototype
4. Feasibility study to decide whether to buy new machinery
5. Acquisition and installation of a new CNC (Computer Numerically Controlled) machinery
6. Conversion of the plant layout from process layout to group technology layout.
7. Selection of a new plant site
8. Construction of a new facility
9. Planning, organizing and managing a professional conference or a trade show
10. Planning organizing and managing major sports events such as Olympics, sports festivals, NCAA basketball tournament, etc.
Project Management involves planning, controlling and directing the unusual activities facing the firm. In managing projects, temporary project teams are formed to schedule the work, to adhere to a given budget, and to monitor the progress of the work through its various stages.
For larger projects, project teams are formed. These project teams may include workers from the company involved in the project as well as other external companies (i.e. consulting firm).
Depending on the size and type of the project, an internal project leader and possibly project team members may receive full or partial release from their regular duties. The duty release is given because it would be very difficult for an employee to manage the responsibilities of a time consuming project and also to fulfill the responsibilities of normal day-to-day activities.
Projects are not necessarily single-time events. They can be repeated in similar settings. In managing a project, the project team is usually responsible for managing and controlling the following four factors:
1. The length of project completion time
2. Resources
3. Quality
4. Cost
The project plan is generally prepared well before actual project work begins. The first phase of the project needs to include a clear statement of goals and objectives of the project.
The next phase involves composing a detailed definition of the project. Then, using the Work Breakdown Structure, the project is decomposed into tasks or activities. Once all of the unique tasks making up the project are identified, specific time, cost and resource estimates are obtained for each task.
In planning and controlling the project, the project team's major duty is to ensure timely progression of the project through various stages without exceeding the approved cost standards while achieving the desired level of quality. The project team usually prepares progress reports during different stages of the project for upper management and possibly for external sources playing a major role in the project.
The interim project progress report assists in ensuring that the project team's actions are consistent with the original goals and objectives of the project and the project is continuing according to plan.
If the project is delayed or major changes had to be made, the interim progress report also allows the project manager to explain the reasons for deviations from the original plan. In addition, the interim progress report also gives upper management a chance to consider and possibly approve the proposed changes.
Re: William Stevenson Operations Management 10 ed. Chapter 17 Introductory Remarks on Project Management.