Project delays and cost overruns are often identified as the most common causes of project failure, which is a result of poor project management tools. 7 min read.
The Project Ubiquity post, described project management as the planning, scheduling and control of project activities to achieve performance, cost and time objectives for a given scope of work while using resources efficiently and effectively.
Meeting these three objectives while using resources efficiently and effectively lies at the heart of project management.
What is better time delays or cost overruns?
Many technology-driven firms compete on new product development cycle time. Clark (1989) estimates that for a $10,000 car, each day of delay in introducing a new model represents a $1 million loss in profit. A McKinsey study reports that, on average, companies lose 33% of the after-tax profit when they ship products six months late, as compared with losses of 3.5% when they overspend 50% on product development.
For collapsing product lifecycles, project delays are more heavily penalised than budget overruns.
Consequently, the prime objective of project management is to minimise project durations and delays subject to precedence and resource constraints.
Project Management Software
A June 1998 IEE Survey revealed that 80 percent of respondents use some project management software, which identified the following ranked capabilities,
- Project tracking
- Time analysis
- Cost analysis
- Resource analysis
These results indicate that many project managers use project management software relatively simply, and overlook the importance of effectively managing the interplay between time, precedence, resource requirements and availability, and cost.
Accelerating Project Performance
Partnering with ManagoGem, pminsight offers advanced planning and scheduling services using Oritames, which employs artificial intelligent scheduling optimisers and heuristics to solve complex resource-constrained project scheduling problems. Importantly, Oritames not only minimises project durations but also analyses objective trade-offs to determine the most appropriate what-if scenario.
No matter your industry, organisations are always faced with the challenges of operating in a fiercely competitive and changing environment. To be successful organisations employ project management as a strategic tool to outperform the competition. Consequently, to position your organisation ‘ahead of the wave’ of change, use pminsights leading-edge Advanced Planning and Scheduling (APS6) services to complement your existing project management capabilities.
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