Project Management

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Project Management

Introduction

Project management is a discipline that involves various steps of planning, organizing, securing, managing and controlling the limited resources with an aim to achieve specific objectives. This essay is written with an objective to demonstrate the understanding of new learning in project management by showing its relation with the cost and value management.

Discussion

The project management starts with a project definition. As soon as the definition requirements are met, the first step in the project planning process is the development of Work Breakdown Structure (WBS) that serves as a summary of the way in which the data and costs associated with project are eventually reported (Mulcahy). Work packages represent the natural sub division of cost accounts by serving as the lowest levels of WBS in which the responsibility is assigned to individual. The importance of work packages to support the creation and use of the WBS can be ascertained from the fact that work packages serve as the most critical factor for Work Breakdown Structure. Work packages are important as these are the level at which the project manager has to monitor the whole project work.

Cost and schedule performance measurement baseline can be established in five steps:

The project scope is decomposed into WBS and then further subdivided into work packages that define all deliverables production.

The work packages responsibilities will be assigned to the owners who are accountable for the management of project resources and cost baseline.

The work packages are then organized into specified milestones

Time-Phased budgets are then developed in each work package.

Each work package will then be assigned objective performance measures and then it will be summarized for the whole project.

A program management technique is known as Earned Value Management that coordinates technical performance requirements with schedules by taking into account the element of risk ...