An Assignment On Project Planning

Formulation and Management

Topic:
Relevance of Project Management in changing
economic scenario of globalization and
liberalization
Submitted to: Sj. Sebastian Lakra

Submitted by:
Vivek Kumar
PGDM SEM IV
Roll no. 57
 WHY PROJECT MANAGEMENT IS RELEVANT AND NECESSARY IN THE
CHANGING ECONOMIC SCENARIO OF LIBERALIZATION AND
GLOBALIZATION.

Introduction

In today’s global marketplace, complexity and speed are essential factors to survive. If we try
to have close look on different projects taking place in various corners of the world, they all
are being initiated under tight budgets with fewer resources. Apart from this, project-based
business is growing bigger and bigger every single day.

In last few years’ modern business are no longer based on just operations. More and more
key business initiatives are now subject to a defined project plan, with specified deliverables
and time constraints. These days every manager is expected to do more with less. 

In such an environment, a good saying for project management is :~

“Do It, Do It Right, and Do It Right Now.”

Why Project Management Today???

Creating clear directions, timely response and quality outcomes are the demand of current
scenario. The art of project management has gradually changed and as a result of this today
the art of effective project management requires a new type of skill base.

There is no doubt that organisations today face more aggressive competition than in the past
and the business environment they operate in is a highly turbulent one. This scenario has
increased the need for organisational accountability for the private and public sectors, leading
to a greater focus and demand for operational effectiveness and efficiency.

Effectiveness and efficiency may be facilitated through the introduction of best practices that
are able to optimise the management of organisational resources.

In a project environment, project management can:

(a) support the achievement of project and organisational goals; and

(b) provide a greater assurance to stakeholders that resources are being managed effectively.

The use of a formalised project management structure to projects can facilitate:

(a) the clarification of project scope;

(b) agreement of objectives and goals;

(c) identifying resources needed;

(d) ensuring accountability for results and performance;

(e) and encouraging the project team to focus on the final benefits to be achieved.

Causes for Failure Of Project

Researches indicates that 85-90% of projects fail to deliver on time, on budget and to the
quality of performance expected. The major causes identified for this situation include:

1. Lack of a valid business case justifying the project;

2. Objectives not properly defined and agreed;
3. Lack of communication and stakeholder management;
4. Outcomes and/or benefits not properly defined in measurable terms;
5. Lack of quality control;
6. Poor estimation of duration and cost;
7. Inadequate definition and acceptance of roles (governance);
8. Insufficient planning and coordination of resources.

It should be emphasised that the causes for the failure to deliver on time, on budget and to the
quality of performance expected could be addressed by the application of project
management practices.

A recent survey conducted by independent research agency has shown that 58% of people
surveyed agree that their projects rarely meet time, cost and quality targets. Accordingly the
importance of project management training and certification is on the rise.

Project Management Training

Project Management Training can help project managers understand the what, why, and how
of the discipline. Project management training also help these project managers in
understanding:

1. What are the fundamental skills project managers need to be effective and how to
develop them?

2. Why business and project alignment is essential for project management success and
how to get it?

The basic purpose of project management training is to educate and train project managers
with the ability to foresee as many dangers and problems as possible and control activities so
that the project is completed as successfully as possible in spite of all the risks.

Challenges for Project Management

Project management is a critical role within a project that acts as the ‘glue’ in bringing
diverse competencies together and coordinating the current of information between them.

In fact it is the demand of present scenario and project manager must be able to play several
functions including an advisor, a planner, a manager, and effective communicators and a
businessperson.
The challenge for the Project Manager consists of attracting the correct resources, shaping a
solid team, keeping the team motivated, meeting individual aspirations and getting the work
done – all within scope, cost, time, and customer satisfaction.

Importance of Project Management.

Time and resources need to be effectively managed to ensure the success of the project.
The importance of Project Management is an important topic because all organisations, be it
a school or college project or a business, an information technology project, a party, an event
or any other kind of major project, it requires planning and research and at one time or other,
are involved in implementing new undertakings. These undertakings may be diverse, such as,
the development of a new product or service; the establishment of a new production line in a
manufacturing enterprise; a public relations promotion campaign; or a major building
programme.
Whilst the 1980's were about quality and the 1990's were all about globalisation, the
2000's are about velocity. That is, to keep ahead of their competitors, organisations are
continually faced with the development of complex products, services and processes with
very short time-to-market. The development of project management capabilities in
organisations, along with the application of information management systems, allows
enterprise teams to work in partnership in defining plans and managing market projects by
synchronising team-oriented tasks, schedules, and resource allocations.

Objectives Of Project Management:

Effective project management will help:

1. meet or exceed customer expectations,

2. maximize the use of your resources (time, people, money, space, etc.),

3. bring the project to a successful conclusion on time and within budget,

4. document what was done for any need of future reference, and build confidence in
your team for future projects.

5. reducing project overhead costs;

Consequences Of Poor Project Management

Some of the consequences that can be experienced with the lack of or poor project
management:

1. Missed deadlines,

2. Cost overruns,

3. Poor workmanship,
 4. Conflicts among team members,

5. Redoing work to correct errors, unclear directions for the project,

6. Continuous changes in project scope,

7. Forgotten key tasks, poor morale of team, duplication of effort, etc.

Because of these potential consequences, project management is critical to a project’s

success.

Refrences:

http://www.buzzle.com/articles/importance-of-project-management.html

http://www.evancarmichael.com/Business-Coach/223/The-Importance-and-Awesome-Power-of-
Project-Management-in-Todays-Business-Environment.html

books.google.co.in/books?isbn=1930708076

http://www.pm-alliance.com/The_Importance_of_Project_Management_in_a_Down_Economy.pdf