Project Management Essay On Principles Of Decision Making
Task: In this assessment, the student selects a project where principles of decision-making process in project management is applied. The student needs to do research on the literature of project management and understandthe best practices in project management. Cost is an important aspect in decision-making. However, other than cost factor in delivering a project factor such as the sustainability factor in project management need to be considered too.
The concept of project management explored in this report of project management essay is the business process where the management is practicing a set of principles before conducting an operation. It includes the initiation of an appropriate project process. Then the process proceeding into making suitable planning for project objective execution, controlling the actual process, and makes a closure. It is important to understand the critical requirement of a project management process. "Project Management Optimization" is the process of prioritizing the specific areas related to management, such as project development, financial aspects, resource engagement, and convenient construction process. The main aspect of optimization discussed in the project management essay is to obtain goals related to acquire value-based output with minimum spending.
The increasing influence of technology implementation in conducting project processes helps the management to make a computer-based approach for indicating proper resources by optimizing the internal problems (Kyriklidis & Dounias, 2016). The process of understanding the available resources to plan according to it can minimize the difficulties related to achieving management goals. The resources can be related to the human, or machine, even financial availability. The "Project Management Optimization" works on optimizing required resources according to the organization's demand, and sustains the available resources by spending a minimum amount of budget.
The optimization during project management can be conducted at different levels, such as resource identification, allocation, process scheduling, and even dealing with the uncertain situation (Moghaddam, 2019). It is an effective mapping process that identifies different optimization areas. The project management essay examines that the "Project Management and Optimization" are depending on several principles or project stages, such as project concept designing, conduct costing, make a feasibility test, enhance the existing options, and select the most appropriate one. However, the main issues discussed in the project management essay in the optimization process are related to approaching a proper budget according to the desired outcome and make it sustainable (Alothaimeen & Arditi, 2019). However, the project steps related to the project management process is considered to be the actual key point for the optimization process.
The identification of optimization during a project process is depending on the level of implementation of different principles in an organization. These implementations are also based on the existing issues within the organization. Successful management is based on the various development skills, such as proper communication process, management skills, and work responsibilities (Talman, 2018). The implementation of each stage of project management is based on the understanding of the project's desired goals, and potential issues. The risk management factors considered to be a successful method in understanding the management gaps or complex project structures.
According to the research on project management essay, the maintenance factor in project management believes to be the most important factor during the process. The optimization during the maintenance process can help the management to complete the tasks within the deadline (Einabadi, et al., 2018). The on-time completion process of the project objectives can save a significant amount of additional budget. However, most of the time, the management cannot acquire appropriate resources before the starting of the operation. It leads the project to face ‘budget overrun’ and delay in delivery. The optimization of “engineering economics” can mitigate the issue related to financial optimization.
The main criteria of 'project optimization' can be – project economics, social or community factor, environmental factors, safety-related issues, engineering, sustainability, and performance quality. The 'project optimization' of a current project process explored in the segments of project management essay can be prepared by the management team and workers with the help of external critiques (Fleischman, et al., 2018). The current available ‘project optimization’ tools are the project value analysis reports, ‘peer reviews’, and value management engineering process. It is the responsibility of the project management team to implement these external analysis factors to get an accurate result. The stakeholders and project management cannot always be optimized about understanding the existing opportunities or possible risks during the project processes.
In this project management essay, 'Cost estimation' is one of the essential optimization processes in project management. It is related to the process of identifying a proper price for a service/product, create a price list and put it up for bidding. It will evaluate the profit margin of the selling products and how much additional budget can be allocated for further changes. The 'cost estimation' related to various services, such as 'software development' process is an essential criterion for implementing further development functions and efficiency (Jafari & Ziaaddini, 2016). It is applicable for every existing services and industry. There are two fundamental approaches in the development of a specific product, "bottom-up" and "top-down". Both of these approaches are emphasized on the production process, product's interest level, activity factors, and estimation according to the input lists. It will generate a justified cost for that specific services/product.
It is stated in this project management essay that the ‘cost estimation’ components are always variable and it makes the pricing process uncertain. The variables related to the costing process are, prices of ‘raw materials’, supplier’s budget, ‘rent’, ‘sales commissions’, worker’s salary, production machinery costs, and other related factors. The effective implementation of project management is always trying to minimize overall costs. The project contractors are the responsible person behind generating maximum benefits from estimating appropriate costs by generating value-based resources (Rauzana, 2018). However, the potential risks related to not delivered with quality products/services in completing a specific work. The management team is looking forward to engaging profitable vendors/suppliers into a project operation to conduct the processes efficiently.
Another optimization factor outlined in this project management essay related to the project management process is the 'time value' of the project capitals. It is because of the value of capital changes with time, such as during currency 'exchange rate', 'inflation' or 'deflation', and different interest rate. The concept of 'time value' of the currency needs to be understood by the project managers to make proper financial decisions related to project funds, loans, and money allocation (Muda & Hasibuan, 2017). It is changeable and uncertain. The product/service value is also dependable on its current resource price. The mechanism can be conducted by obtaining future capital by considering a specific amount of interest rate. But, when the current capital value is generated with future value, then the management needs to multiply the money by some interest rate. An appropriate example is the people who save money in the bank to expect a higher future value.
The concept of ‘capital optimization’ process discussed in this project management essay is also related to an organization’s “minimum attractive rate of return” (MARR). It is set by the organizational management team by considering existing resources, such as the available funds, investment opportunities, risk factors, and organizational structure. The (MARR) rate is different in each organization and usually considered for making the maximum profit out of the existing resources and investment. The return rate of an organizational product/service is determined by the available cash-flow, and its "unique return functions" (Magni, 2016). It is an essential principle in the project management process that is determined towards optimizing project proceeding factors – resources, capital and productivity.
The 'project optimization' principle is also depending on the alternative "feasible design." The management decides a particular number of mutual alternatives that exclude the chances of obtaining other less required options. These factors are based on the organization's economic condition, the project's 'initial investment', and its annual revenue. There are two types of organizational alternatives provided in this project management essay – "investment alternatives" and "cost alternatives". The 'alternative design' is considered to be identifying different internal problems and their specific issues (Bergin & Davis, 2016). It is needed to be implemented by the project management to understand the potential risk in advance and make appropriate planning in mitigating the problems.
Another effective factor illustrated herein project management essay in 'cost optimization' is the "depreciation". It affects the income tax and influences the management in making decisions related to finance. "Depreciation" mainly decreases the value of an existing property over a certain amount of time. The factors that are related to this area are – "cost basis", "book value", and "market value". It changes the price of specific product/services after a certain period. It is because of the uncertain and changeable market value of various products. The increasing intangible capital resources and knowledge-based financial activities make the rate of "depreciation" variable (Li & Hall, 2020). The project management process needs to address the above-mentioned optimization principles to make appropriate planning for conducting efficient business processes.
The "capital budgeting" process is a sustainable project management process. It influences the management of various organizations to make financial decisions before starting a specific project. As signified in this project management essay, the important decisions related to the “capital budgeting” are made by management. It maximizes the value of an organization. it observes the internal business processes and sustains business opportunities. It gives the management plenty of operational options to select from. The organizational "closed-loop" networking system changes the operational processes of the traditional ‘supply chain’ process (Govindan, et al., 2016). The increasing implementation of technology in the present scenario makes it difficult for various organizations to make it under the tough competition.
The ‘project management’ sustainability is dependable on various organizational factors – “financial”, “environmental”, and “social” issues (Chawla, et al., 2018). The readings considered in this project management essay, the management is focusing on gaining sustainable business practices to increase business process operations. However, it is difficult to obtain sustainable resources in managing the productivity of different products/services. It can be made by identifying internal project processes, such as project planning and monitoring process. It can manage the delivery flow conveniently, and sustain a project's "life-cycle". The "life-cycle" of the project process is depending on the organizational existing resources, capacity, deliverable products/services, and its potential effects. The optimization of the organizational budget and resource-related operation sustains the business.
The sustainability measurement of project management processes is depending on organizational capital. These capitals are related to the "human capital", "natural capital", "financial capital", and "manufacturing capital." It is a systematic process that helps in continuing the human-led and non-human led society. It influences the management to understand that business processes are dependable in identifying valuable processes. It is important to manage certain productivity standard to sustain the project processes. The implementation of economic, legal, educational, social, and political factors during a project management process is important for sustaining the project processes (Chawla, et al., 2018). Project management needs to acquire training on sustainable factors to provide valuable business planning and effective decision-making strategies.
The financial optimization of the business management process is related to the organizational decision in obtaining value-based resources at a reasonable cost. The study developed within this project management essay also explains that the decreasing cost will sustain the budget allocation during a project process. The suppliers are also making themselves capable of providing cost-efficient services and materials to compete with other suppliers. The bargaining competition among the suppliers is dependable on the profit and revenue variation of different organizations. The customers or clients are also needed to acquire these value-based services to maintain the 'supply chain' process. It is a long chain process that includes organization, management, people and supplier. The sustainable 'capital optimization' process is an essential factor in generating efficient services according to the client's requirement. In the present scenario, most of the business entities and organizations are looking forward to generating environment-friendly services to generate sustainable supply process. They are trying to establish a positive identity to attract potential customers to engage with those organizations.
The project management processes in initiating, planning and executing the desired objectives of an organization is an important process. The 'project optimization' principles generate capital-related factors in an organization's business processes. However, the management needs to generate a proper training session to understand the importance of optimization principles in making effective decisions related to finance and investment. The understanding of changing capital value while exchanging construction or production resources is important to maintain proper planning. The lack of planning related to the capital and interest related factors make the organization to face financial loss in future.
The effective understanding of the sustainability pillars of project management influences the optimization factors more considerable. The new companies are replacing the traditional business processes to acquire sustainable strategies to increase organizational value. The environment-friendly operation expands the organizations to understand and identify various sustainable resources. These resources outlined in this project management essay can sustain the productivity of specific services/products. It is the responsibility of the project management team to maintain the sustainability of organizational resources and implement effective optimization planning to generate the desired outcome. The main sustainability factor is maintaining the work and cash flow for applying other sustainable options.
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