Fundamentals Of Project Management

Needs project evaluation as the dictionary says to

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Unformatted text preview: nned. That evaluation provides the basis for management decisions on how to proceed with the project. The evaluation must be credible in the eyes of everyone affected or decisions based on it will not be considered valid. The primary tool for project evaluation is the project audit, which is usually conducted at major milestones throughout the life of the project. Previous Table of Contents Next Products | Contact Us | About Us | Privacy | Ad Info | Home Use of this site is subject to certain Terms & Conditions, Copyright © 1996-2000 EarthWeb Inc. All rights reserved. Reproduction whole or in part in any form or medium without express written permission of EarthWeb is prohibited. Read EarthWeb's privacy statement. Fundamentals of Project Management by James P. Lewis AMACOM Books ISBN: 0814478352 Pub Date: 01/01/95 Search Tips Search this book: Advanced Search Previous Table of Contents Next Title Purposes of Project Evaluation Sports teams that practice without reviewing performance may get really good at playing very badly. That is why they review game films—to see where they need to improve. ----------- As W. Edwards Deming has pointed out, there are two kinds of organizations—those that are getting better and those that are dying. An organization that stands still is dying. It just doesn’t know it yet. The reason? Your competitors are not sitting by idly. They are doing new things, some of which might be better than yours. If you aren’t improving, you will be passed by, and soon you won’t have a market. The same is true of every part of an organization. You can’t suboptimize, improving just manufacturing, for example. You have to improve every aspect of the business, and that includes how you run projects. In fact, good project management can give you a real competitive advantage, especially in product development. If you are sloppy in managing your projects, you don’t have good control of development costs. That means that you have to sell a lot of product or else charge large margins to cover your development costs so that the project is worth doing in the first place. If you can’t sell a lot of widgets, then you have to charge the large margin. In order to learn, people require feedback. Furthermore, people tend to learn more from mistakes than from successes, painful though that may be to admit. If your competitors, on the other hand, have good cost control, they can charge smaller margins and still be sure that they recover their investment and make money. They have a competitive advantage over you because of their better control of project work. In order to learn, people, like the team reviewing game films, require feedback. The last phase of a project should be a final audit so that the management of future projects can be improved. However, such an audit should not be conducted only at the end of the project. Audits should be done at major milestones in the project so that learning can take...
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