Project management ip1 essay

Project Management IP1

The current economic turmoil requires organizations and individuals to perform Project Cost Management when carrying out a case study in order to effectively include the processes involved in planning, estimating, controlling, and budgeting costs in order to avoid any inconveniences and allow for the project to be completed in the appropriate time. There are various processes involved in Project Cost Management. These include cost estimating, cost budgeting, and cost control. In addition, projects are time-constrained, and effective allocation of funds is paramount to the successive completion of the case study. This case study incorporates a number of costs that are involved; they include direct costs, project overhead costs, and general and administrative overhead costs. Direct costs are as a result of the costs incurred for the project to be delivered. Overhead costs are the costs incurred in order to support and administer a project, its activities, and organization. Lastly, general or administrative overhead costs are incurred through strategic development, research, leadership, and management.

Direct Costs

Overhead Costs
Administrative Costs
Labour ($400)
Telephone ($900)
Strategic planning
Project Manager ($120)
Utilities

Project team members ($97)
Modems ($874)

Training and support ($240, 000)
Servers ($6, 700)

Software development ($500, 000)

In developing a time-phased budget, the management of the company has to incorporate information systems that are effective and able to cut on costs while avoiding unanticipated stock surges. The project labour will incorporate conducting telephone interviews with the selected members. The quantity of work to do will be reviewed and then multiplied with the rate of productivity in order to determine the effort.
One critical risk is fire. This is a risk that faces all businesses irrespective of their scope and is of considerable concern. Comfort Zone being involved ion the manufacture and marketing of embroidery and screen technology products is at a high risk since most of the raw materials easily catch fire. Also, electrical equipment and machinery can begin fires. The company’s management practices integrate contingency plans for such a hazard. The company has a Business Fire Plan that is readily available to all individuals and an evacuation plan that caters for employees and incorporates transport needs in order to quickly and timely evacuate individuals. Moreover, the company has sought input from the local fire department, obtained insurance coverage, kept machinery that generally heats up exceptionally clean and well monitored, and identified all viable sources of water and access and exit points. On the other hand, one minor risk in this project is in terms of scope, which may creep up during the implementation phase. Effective management of the project will help prevent more requirements from cropping up during the project. Although scope is a natural and inevitable occurrence, it does not have to be of alarm because of the company’s effective initial planning and project management.
The organization will have to create a structured, controlled information system that will allow smooth communication flow with its suppliers, customers, and manufacturers. This will result to effective compliance with the necessary regulatory requirements and will have reduced the cost of compliance. Also, by using the Internet, the company’s e-commerce strategy will provide a platform for customers to provide comments on the products and services offered, thereby cutting on costs incurred through advertising campaigns and customer forums. Also, by embracing technology, the organization will have a structured and controlled systems that will allow IT technicians, employees, and business teams will be able to have centralized and repeatable processes. This will ultimately reduce errors, save the time taken by auditors, and cut on the requirements for rework. Working under a unified information system will improve synchronization and coordination and allow for easy sharing of resources and information tracking.

References

Cleland, D. & Ireland, L. (2006). Project management: Strategic design and implementation. New York: McGraw-Hill Professional.
Hearkens, G. (2007). Project Management: 24 Steps to Help You Master Any Project. New York: McGraw-Hill Professional.
Lock, D. (2007). Project management. Hampshire: Gower Publishing, Ltd.
Philips, J. (2010). IT Project Management: On Track from Start to Finish. New York: McGraw Hill Professional.