Why Project Management is Important?

The word “project” has traditionally been linked to engineering, just as “process” management relates to operations or business activity. Today, however, there is a tendency to use “project management” not only in engineering but also in other areas. In this article, we will try to understand why project management is important and what are the different stages involved in it.

What is a project?

According to PMBK (Project Management Body of Knowledge) the purpose of the project is the creation of a UNIQUE product or service, and as a result requires planning, which implicitly means that there is a beginning and an end.

The project is indicated for non-routine tasks that are presented with some complexity. The projects are oriented to meet a certain specific need either of a client, or of a company to improve its competitiveness.

What is Project Management?

Producing something, managing change, managing risks requires effective management of the project. We can answer the question of what is project management in the form of managing the chain of activities using special management structures and techniques. In other words, PM means effective use of time and financial resources.

Project Management (PM) is a discipline that aims to teach how to successfully manage a project, meeting its objectives and requirements, within the deadline, cost and with the quality established, and meeting the needs of the client or user of the project and the other identified stakeholders.

A formal definition can be obtained from the Project Management Institute (PMI): “the application of project-related knowledge, capabilities, tools and techniques that meet your expectations”.

Meeting defined requirements, management of stakeholders with different desires and expectations, balancing competitive demands, setting achievable goals and setting expectations can be achieved through project management.

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Phases of a Project

PM consists of thorough planning of the entire project in different areas and conducting very rigorous monitoring during the execution of the project to monitor its status and act against deviations. Therefore, we can already see that with this system you can identify some fairly clear phases of the project.

At the beginning of the project, a formal definition of the new project to be developed or a new phase of a project that is already being carried out in the organization is made. This gives you an authorization to start doing so.

Planning

Planning consists of a series of guidelines that must be followed throughout the project to achieve the objectives of the organization. At this stage a lot of emphasis has to be placed on scope, cost and time, as everything else will revolve around these three variables.

Execution

In the project execution phase, all actions that have been defined in the planning stage are performed and the construction of the product or service begins.

Monitoring and control

In this phase, the project is tracked and reviewed so that you can regulate the progress of the project. In this way, you can identify the failures that are occurring and act accordingly in order to correct the deviations that are occurring.

Closing

Just as a formal definition of the project was carried out at the beginning, the project has to be formally closed here. It is the last of the management phases and it verifies that the objectives have been met, that the product has been produced correctly (in case of successful completion), closing contracts with the customer and reflecting on everything you have learned in the project.

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What are the PM Components?

In order for a project to successfully achieve the desired goals, the strategic management process must be effective and proceed taking into account certain stages. PM is a process in which various management areas are created together. These fields include:

Integration Management:

Includes plans to ensure coordinated work in project management and the execution of related activities and techniques.

Scope Management:

Determining the definition and limits of the scope. The field to which methods for checking for a scope change are applied.

Time Management:

Methods that enable the project to be completed over a period of time. The estimate of how long this process will continue is probability calculations and timelines and the area in which they are maintained.

Cost Management:

It is the process of planning, estimating and implementing the methods related to the implementation of the budget that will occur in the period from the approval of the project to its finish.

Quality Management:

It is required to determine the methods to meet the expectations and requirements for the project. Specific standards and planning measures related to this are applications and techniques on quality control.

Human Resources Management:

It is the area where strategic planning elements and activities related to the implementation of the necessary motivational tools are carried out to make the staff of the project work more effectively.

Communication Management:

Timely arrangement of the information of the project, planning and reporting on these processes is carried out.

Risk Management:

It covers the processes based on the analysis and interpretation of risk elements that may occur in the project. Control methods are applied to minimize the risk.

Purchasing Management:

It is the process of taking care of the resources that will lead to the formation of the project and planning the activities related to it. It includes contract procedures for these processes and practices related to decisions to be taken.

PM processes

Successful project requires meticulousness in all processes from the creation to completion of the project. PM consists of initiation, planning, execution, monitoring, control, and closing processes. Each process involves other processes. Project team tasks and responsibilities are also determined in this process.

In the initial process, the answer to the question “what is the project about and why it is important” and “how to execute the project” is sought. During the planning process, questions such as “what is the scope and nature of the effort for work” and “how to complete the project” are answered. During the execution process, the necessary control activities are carried out to complete the project at the specified quality level at the specified time.

In order to control risk and quality in the monitoring and control process, risk tracking records, activity plans, status reports and project change records are followed up and the level of control and execution is increased. During the closing process, the “lessons learned” that can be used for a new project are summarized, official approval from the customer or sponsor that it accepts the results is obtained, and the project contract is closed.

As the process suggests, PM doesn’t just mean coordinating. Project management, which expresses a comprehensive process, scopes variables such as time and finance management and quality and risk factors. Poor management of project and lack of accurate resources and lack of correct management can cause damage to the project.

Project Management benefits

The stages in the PM are fulfilled in accordance with the specified date periods, so that the time that the project should be completed is not exceeded.

The managing of the project by experienced people ensures that the project is of the expected quality.

The risk of disagreement between project stakeholders can be minimized by creating healthy communication channels in the process.

PM is effective in managing cost effectively and efficiently.

Why project management is important?

There are a number of methods that companies of different sizes in the business world must implement to achieve success. Well Planned and systematic method is one of them. It is possible to do quality work with little error with project management.

Effective management of project, implemented in line with the objectives and goals of the project is clearly achievable and prepares the ground for you to make sharp decisions.

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