Assignment
On
Importance of Project Management
Course Title: Project Management
Course Code: MGT 605
Submitted to
Kaniz Fatema
Course Teacher
Submitted by
Kh. Abul Ahsan (MBA-057 16193)
Trimester- Spring 2016
STAMFORD UNIVERSITY BANGLADESH
Date of Submission: 14.01.2016
1. INTRODUCTION
Project management is a growing field used increasingly by businesses of all sizes. As
entrepreneurs and company executives deal with the daily responsibilities of managing an
organization, it is important to use dedicated project managers to oversee projects from
conception to completion. Understanding effective project management techniques helps
organizations carry out large-scale projects on time, on budget and with minimal disruption to
the rest of the business. Although project management is often overlooked in the creative process
—it’s the driving force behind any venture. Effective project management can push a project to
the fullest of its potential, creating work that surpasses the wildest of expectations. On the other
hand, poor project management can stall productivity, stifle creativity, or kill a project entirely.
2. WHAT IS A PROJECT
A unique undertaking composed of interrelated investment activities which have a well defined
beginning and end, often involving staff from cross-functional groups that operates under
specific constraints of resources, schedules, and requirements to attain certain specific objectives
by utilizing Limited resources within a particular period of time.
3. WHAT IS MANAGEMENT
Management is the process of getting things done with and through other people by Planning,
Organizing, Controlling and Measuring. In other words - Management in all business and
organizational activities is the act of getting people together to accomplish desired goals and
objectives using available resources efficiently and effectively.
4. WHAT IS A PROJECT MANAGEMENT
Project management is the art of managing the project and its deliverables with a view to
produce finished products or service. There are many ways in which a project can be carried out
and the way in which it is executed is project management.
Project Management encompasses all activities that an executing agency undertakes in
transforming a project from plans to physical reality as well as the subsequent initial operation of
the completed project.
Project management includes: identifying requirements, establishing clear and achievable
objectives, balancing the competing demands from the different stakeholders and ensuring
that a commonality of purpose is achieved.
Three factors that shape every project can be shown by the following project triangle:
5. IMPORTANCE OF PROJECT MANAGEMENT
a) Organizing Chaos
Projects are naturally chaotic. The primary business function of project management is
organizing & planning projects to tame this chaos. It's hard to think of any complex business
endeavor that was ever achieved without organization & planning. Project management is the
organization, planning and control of projects.
b) Managing Risk
Any good project has plenty of risk. After all, the nature of business is taking risks.
Risk is a fundamental part of business strategy. However, risk needs to be managed.
Risk is that chance of a negative event or loss. Uncontrolled risk taking ends in asset destruction
and compliance issues. Project management identifies, manages and controls risk.
c) Managing Quality
Quality is the value of what you produce. There's not much sense producing something that has
no value. Leaving quality to chance is analogous to producing something of random value.
Project management identifies, manages and controls quality.
d) Managing Integration
Projects don't happen in a vacuum. They need to be integrated with business processes, systems
and organizations. You can't build a sales system that doesn't integrate with your sales process
and sales organization. It wouldn't add much value. Integration is often key to project value.
Project management identifies and manages integration.
e) Managing Change
Projects always happen in an environment in which nothing is constant except change. Projects
are always a moving target. Managing change is a complex and daunting task. It's not optional.
Unless you can put your business universe on pause, change happens whether you manage it or
not. Project management manages change.
f) Clearing Issues
Business initiatives typically encounter regular issues that must be managed to achieve
objectives. Project management plays a critical role in identifying and clearing issues.
g) Retaining and Using Knowledge
Projects generate knowledge — or at least they should. Knowledge represents a significant asset
for most businesses. Left unmanaged, knowledge tends to quickly fade. Project management
ensures that project knowledge is captured and managed.
6. ADVANTAGES OF USING PROJECT MANAGEMENT
In built Monitoring/ Sequencing
Easy and Early identification of Bottlenecks
Activity based costing
Identification and Addition of missing and new activities
Preempting unnecessary activity/expenditure
Timely Completion
Assigning tasks
Reporting
7. CONSEQUENCES OF NOT USING PROJECT MANAGEMENT
Delay
Cost
Waste of Resources
Quality
Dissatisfaction
Reputation
8. CONCLUSION
Project management and its related techniques, methods and their application to business environment
which help project managers to make appropriate intelligent decision and correct planning. The process of
project definition, project selection, priority-setting and target fixation through country programming,
mission reconnaissance, sector studies and pre-investment analysis have exerted some beneficial pressure
on the entire range of project activities Proper planning and implementation of projects is intimately
linked to the macro-development goals of the country. Efficient management of investment resources and
continuous evaluation of investment outcomes are the two most crucial activities necessary for ensuring
the optimum use of scarce resources and determining the emerging character of development for its
direction and effectiveness.
The shift of emphasis from general economic growth and development theories to the project
management has resulted in search for new management tools to assess the operation and impact of
Development programmes. However, project management is a complicated task which involves a very
close co-ordination between internal project management and the contribution to the design and
management of the project from outside.
