Posts Tagged ‘type’

Project Management Solutions To Better Control Your Business

November 18th, 2011

Any business needs some management solutions to get organized and stay on the floating line. Unfortunately, many organizations are forced to rely on paper trails and email-chains. These outdated methods were replaced by newer project management solutions. There are different types of such solutions for a wide range of working domains and for many kinds of needs. The access to accurate, real-time data regarding projects and resources is crucial to making strategic business decisions. Companies must keep up with the changes that impact the day-to-day running of their business. Managers are expected to deliver more than ever – but with fewer resources, within a shorter period of time and to produce maximum returns for the business.

Many times all this work gets externalized to other specialized entities. This covers either the use of project management tools or even more the delegation of entire work to management and consulting companies. In all cases appropriate methodologies and processes are necessary to be applied.

Project management solutions

In order to make the best decisions to support your organization’s long-term goals, you have to decide and choose the right management solution:

  • Resource management – if you have a resource oriented activity this is the solution on which you should insist on. In most cases it is strongly connected with work management software.
  • Project portfolio – this type of solution is the most used in any domain. Any company has multiple projects that need to be managed
    Issue tracking – best suited for software development companies.
  • Task management – many small and medium organizations resort to this kind of solution; task management software is used mainly because of the ease of use, simplicity and light collaboration features.

These are just some of the most encountered and known types. However as domains overlap a single type of product is not enough. This is why huge companies reached the need to use ERP (Enterprise Resource Planning) systems that incorporate all the above and much more beyond the project management area.

Project management methodologies and processes

The definition for terms like methodology and process and what it clearly represents is under debate and there is no unique agreement in the management domain. However they are successfully used and many management solutions try to map on a certain methodology.

Here is a list with the most used ones:

  • Traditional project management respecting the project’s five stages – initiation, planning, execution, monitoring and completion
  • The Critical Path Method
  • Critical Chain Project Management
  • Event Chain Methodology

Other newer methodologies, processes and frameworks more specific to the IT industry:

  • Agile
  • Six Sigma
  • Scrum
  • Extreme Programming (XP)
  • Crystal
  • Feature Driven Development (FDD)
  • Dynamic Systems Development (DSDM)
  • Adaptive Software Development
  • Rational Unified Process (RUP)
  • PRINCE2

It is imperative to select the right project management solution in order to meet your organization’s needs and to maximize the return on investment. A well defined methodology and process applied on a project management software might be the key to your business success.

Posted in Project Management

Introduction to Earned Value Management

August 5th, 2011

Earned value Management or EVM is a technique used in management to track costs and schedules. It was devised by the US Department of Defense in the 1960s and was originally intended for use on defense acquisition contracts. Just recently, the criteria for the Cost/Schedule Control Systems have been revised; bringing it to 32 criteria to be used in the Earned Value Management System or EVMS.

While EVM for bigger and more complex projects use more features such as behind/ahead of schedule and over/under budget, EVM can be used in almost any given project regardless of the project type, size and cost. Over the years, its use has spread to other government units and big organizations such as NASA, Project Management Institute and Acquisition Management in the UK. It is also widely used in the private sector; across different fields and industries.

Advantages of Earned Value Management

  • EVM uses primary and derived data to track project performance. The data provides trends and actual figures that PM’s use to compare against what was originally planned. The data will help the project manager assess whether or not the project is on track and can accurately forecast problems such as running behind schedule, going over the allotted budget or not meeting projected profits.
  • Being able to accurately see a project’s progress – the planned versus the actual work accomplished, helps in risk identification and response. It makes for proactive decisions to reduce negative impact or devise contingency plans. If an overrun is forecasted through EVM, it will allow the PM to present the problem to stakeholders and managers at an earlier time. This in turn will help management make educated decisions regarding the project’s budget and schedule constraints.
  • Earned Value Management helps project managers reduce or avoid risks. It also helps in effectively communicating with stakeholders especially when it comes to requesting additional funding for the project or incase the project needs to be stopped or restructured. This is especially so since past performances and trends are very good indicators of whether or not the project is going to be a success.

Disadvantages of Earned Value Management

  • Earned Value Management is a proven and tested method that guarantees almost accurate forecasts. With that said however, it is important to note that needed information is entered manually into the EVM System. Any input inaccuracies can compromise the result. This can translate to a potentially big loss for the stakeholders and project manager.
  • Generally, Earned Value Management and EVMS can be used in just about any type of project. However, it may not be a very good tool for long term projects that involves changes in development paths throughout the course of completion. This is especially true for particularly large projects with complex data points as EVM does not have the ability to measure qualitative performance.

Earned Value Management is just one tool in project management. Limitations to EVM and EVMS are still subjects of active research to further improve its functions in project management. It is imperative for project managers to leverage available tools and techniques to ensure projects are on track in terms of schedules and budget.

Posted in Project Management