Many organizations now realize more than ever that as an organization grows, rising demand for professional project management. Two features even more difficult, they are enduring growth in activity and an increase in the complexity of the internal processes within the organization. This challenge puts the project manager in crucial point. Although a project manager is not necessarily involved in decisions on the implementation of the project, he is directly responsible for success and achievement of the targets set. His role is to approve the final product and make sure the customer satisfied.
The main reason for planning and control of projects are:
- Deviation of the planned projects versus actual performance
- Management's inability to detect problems while operating projects and also face budgetary aspect
- Lack of effective use of existing resources or contradictions their assignment
- Gap between planning and implementation and differences between the way of the management and the results
- Organization's will to see overall corporate picture that allows the analysis mode and supports management decisions
- Reasons related to the lack of customer satisfaction by delivery of the project
Main Activities in Projects Planning and Control
- Schedule Planning
- Schedule Control
- Indicators
- Budget Planning
- Budget Control
- Cash Flow
- Resource Planning and Management
- Resource Analysis
- Risk Analysis
Time Management
Operational controls and processes with schedules
In order to improve the planning and control management the project schedules must be built at early stages of the tender and further with winning of project or management decision to proceed with the project, the schedule should be more be detailed, final approval and will serve as the basis for managing and tracking project.
Project schedule must include all components of the project such as design, procurement, delivery and performance, when there is a close connection between all the elements allows us to identify the critical paths of the project and identify risks in advance.
Early schedules mainly develop the WBS of the project, which allows connection between all parties involved as the planning, purchasing and finance, and of course a close connection between the schedule and budget control and cash flow.
Budget Management
Project budget preparation phase
Preparation of initial budget of project tender stage including the connection of budget items to the project's WBS is also determined at this stage.
Updating and Budget approval after winning or start of the project.
Preparation of cash flow based on the project schedule and commercial terms of the contract with the customer. Set milestones for payment and method of payment to subcontractors.
Check adjustment of quantities of the contract against Tender and pricing.
Preparation of lists of contracts of suppliers and subcontractors to track payments, liens and collaterals.
Preparation of Subcontractors portfolios.
Budget control
Budgetary control is performed during all project's period when the project is checked in advance with the contractors invoices and reporting of project manager regarding the scope of performance.
Budget Control is done as estimation until entering of all subcontractors' invoices to finance system to ensure the project meets budget targets.
