Is project management application a strategic tool?

This is a true story of construction of a one storey bungalow where one would feel project co-coordinator is not needed. This was in the per-computer days where one member salary was saved. After the bungalow was ready, it dawned that there was no access to the terrace of the bungalow – no staircase. For years, water level in the tank was measured using ladder perched precariously in the open gallery. By sheer luck there were no accidents in the life of that bungalow.

Project management involves the application of knowledge, skills, tools, and techniques to plan and monitor activities to meet project requirements. It is a structured approach that helps organizations efficiently execute projects from initiation to completion, ensuring they meet their goals within scope, time, and budget. The term ‘project’ brings to mind construction of Dams or ports while at corporate level it conjures in mind, set up of new factory or introduction of new product in the market.? For the purpose of this article, the term project is not restricted to large budget outlays with time duration in years. A project can also last a fortnight or even a week. Mere response to tender may be a project ensuring all vendors of material and service are tied in, to assure the awarded contract does not result in loss.

It is also true that larger projects if managed correctly, result in huge gains though in India it is quite common to hear of large over runs in Government project cost at ridiculously high percentage to original cost. In India, all wedding planners have converted each wedding project to a checklist which is sometimes sub efficient due to last minute issues. They too will benefit from PMS is a definite view.

Importance of Project Management and Project management software (PMS)

1.??? Organization and Clarity: Provides a clear framework for defining objectives, roles, and responsibilities. Once this clarity is in the mind of the team members each one knows their own scope and responsibility. This ensures each person performs all the envisaged tasks at the appropriate time. In a software change project of a leading Bank, time deadlines issue was so great that migration of data was half checked. Only the trial balance check was done leaving the data with possibility of compensating errors within accounts. Maybe, no such errors of amount occurred but due to mapping error, all operation of all accounts of the Bank were converted to either or survivor even though some were under joint. And these accounts were sensitive ones. Until discovered, possibility of legal issues and compensation was a looming nightmare. The person in charge of migration check should have highlighted the forced termination of his part of the project. However in a PMS application, this point would stand out like a sore thumb automatically due to its non-completion.

If project management software of a reasonable quality is used, it makes you think of the critical events and a PERT map forms in your mind or even a GNATT chart. But experience has shown that the software actions a double check to ensure all steps are accounted for. For example in a construction or reconstruction project of any scale, it is important to dovetail removal of debris the absence of which may delay your project apart from making it too costly. The first stage is also a good place to realistically evaluate the Turnaround time (TAT) of internal process but more important, of external vendors and contractors.

2.??? Efficiency: Ensures efficient resource allocation and utilization. Resources like labour, contractual labour, vendor delivery, Finance availability after cash flow planning, all contribute to efficiency. All efficiency is ultimately translated to bottom line. Sometimes efficiency is enforced like in the construction of empire state building. The plot was in the middle of a crowded city with hardly any place to store construction materials. Beams were transported to site and immediately used in construction. One would not be surprised if the crane taking delivery of the material did not set it down but put it in the allocated place directly. The reverse is true where delayed material results in waste of labour. All elements need to run with clockwork precision.

Efficiency of all resources is enforced by use of Project Management software. (PMS) When resources come to play ‘just in time’ there is no wastage of ‘waiting time’. When projects run like a continuous manufacturing process the result is efficiency, preventing wastage which otherwise is a hidden cost. In many industries, the personnel are executing multiple projects simultaneously. PMS helps them to keep them and their mind on even keel.

3.??? Risk Management: Identifies and manages risks proactively to minimize disruptions. Risk management is sadly one of highest missing element in most projects leading to costly last minute firefighting. Is the vendor capable of delivery? Is the vendor having his own labour issues with risk of strike? Will expected seasonal weather conditions like rain, flood, snowfall etc. hamper the delivery of material from vendors?

If the PMS is structure to force declare risk then risk probability and mitigation measures/alternate plans can be also kept ‘ready in the drawer’ should the event arise. Thus, an ice cream manufacturer planning to launch a new flavour with Iranian dry fruits would wake up to the reality of war in that region to seek alternative sources if the supply line is cut due to war.

?4.??? Quality Control (QC): Ensures deliverables meet quality standards and customer expectations. Are standards set of internal and vendor quality? Primafacie it may seem easier to set standards for material goods versus service. But if they are set then they can be monitored to ensure enhancement of goodwill of the company. Where some business is combination of service and delivery of goods like publishing, advertisement, ready foods like ice cream, the standard setting is not a cake walk. Ice cream for example may have standards of ingredients but if the vendor’s quality suffers for some reason, the product fails. Any factory personnel will point out where the QC department is located. But the enlightened ones will state that QC is an attitude to be ingrained in all of them. It is no secret that Quality ensures customer satisfaction increasing/ensuring goodwill of the brand. Service industry standards need to also define as many standards as possible way beyond timely delivery. PMS will assure quality at each point per-defined.

5.??? Cost Management: Controls costs through budgeting and monitoring expenditure. Time is the irreplaceable asset. Each project progresses through time and sunk costs where materials are purchased specifically for that project, Delays if any reflect not only on the sunk cost as interest but also time of the whole team lost. A delayed project is a costlier one. Many large Indian infrastructure projects suffer this for non-technical reasons.

With cost estimates locked in each stage of the project, the total budget estimates will not differ much from the actuals. When each person has his domain knowledge and can ensure quality service or vendor or needed team composition, costs provided by each team member will conclude in a realistic estimate. Deviations if any (if entered into the system) will be monitored by the system warning the affected team member as well as project leaders of the impending issue.

6.??? Time Management: Sets realistic timelines and monitors progress to meet deadlines. Project schedules are set at the planning stage. Realism beyond optimism is recommended. If technical requirements like cooling of concrete are the reality there is no way speeding it up unless you come up with alternative like they do for dams where the heat of the concrete is absorbed by pipes of ice water built in them. Later the pipes become part of the structure. Otherwise the buildings will fall flat on their face or backs!

Software is not needed to notice delays in the project will be an argument against use of PMS. But after its use all will notice and appreciate that predicted delays are reported much faster and causes pinpointed by the software. What is the delay time and at which part is easy for the software to report. If a TAT (Turn around time) of say a vendor commercial artist locked in the system is 4 days and the 5th day is over, this will be picked up and reported.

?7. Communication: Facilitates effective communication among stakeholders. Nothing in life proceeds as per plan. In absence of an application for project management, meetings need to be held at high frequency. The two major disadvantages are that physical meetings take longer to set up and conclude (minutes). The other issue is regarding the physical absence of team members who need to be outside for the sake of the project. Stake holders then remain in dark of their progress. This is set off by on line meetings which are popular post lock down. If there is a hitch somewhere, the project executives can reallocate resourced to overcome the hitch. This was amply seen in cooking competition of teams serving a large group where quality and quantity played a part. On noticing team member struggling for any reason with possibility of not meeting deadlines, other team member is diverted to that desk (kitchen counter in this case) But these are small projects which nonetheless need to apply same principles as that of larger projects.

Other avenue is project management software where stakeholder can see at their convenience their own status as well as those of others.

Project management software (PMS)

PMS is not a software like accounting which is a support function (though important) but a real time human effectiveness enhancement software. There are a few software which have improved the functioning of companies. PMS is one of them. The only drawback is that team members have to invest few minutes, sometimes only seconds in reporting to the software. Later, as projects hit success or even slight hitches in the process, the value of PMS will be so undeniable that all will wonder how they managed without PMS so far.