Research Paper on "Project Management: How Scope, Time, and Cost"

Research Paper 10 pages (3441 words) Sources: 6 Style: APA

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That affects the bottom line, and can be very detrimental to the business overall.

The project scope contains not only the vision of what is going to be done, but also the overall plan for how to make the project idea a reality (Lock, 2007). It is the master plan for the project, and considers all of the factors that have to be included in the project in order for it to be successful. With so much importance placed on the scope, it must be handled correctly in order to make sure the project gets off the ground and achieves the needed success (Lock, 2007). For many businesses, misunderstandings about the size of the project's scope can lead to problems with that project. For companies focused on bringing new products to consumers, having projects in the pipeline is generally a requirement. Underestimating the size of the scope of those projects, though, can bottle up a company, delay products, and frustrate customers to the point that they go elsewhere for what they need (Dinsmore, et al., 2005).

The Cost of a Project

As the scope of a project grows, so does the cost, in most cases. That is a very important issue for any company to consider, because the cost of a project can be a significant determining factor in whether the project should -- or even can -- go forward (Nokes, 2007). There is much to consider in the cost of a project, so the company can arrive at a true figure that seems to be accurate for what is being done. All too often, companies focus on the end result, and they do not consider exactly what it will take to get there. Even with a thorough project scope, many costs can still be overlooked (Nokes, 2007). Companies that are planning projects should be very careful to consider everything that goes into the project, and then pad the cost they expect to have for that project by at least 10 to 20% (Cattani, et al., 2011). If they find that the project is still affordable to the company at that price, they can consider moving forward (Cattani, et al., 2011).

Cost is a very common reason for project failure, but it is also one that can be avoided in the majority of cases. One of the specific areas within cost where companies often fail when undertaking a new project is the amount of money they will spend on labor for employees (Cattani, et al., 2011). These companies plan for any parts they will need for the product, and equipment that will be required to create it, but they generally underestimate the man-hours that are needed in order to make the project into a finished product that is ready for the consumer (Cattani, et al., 2011). That is very often the case with IT projects, because they can take numerous hours to create what is needed. Coding and design are two complex areas of IT, and they cannot be rushed or forced. They take as long as they take, and companies have to be aware of that so they can focus on proper planning that will allow the company to budget properly for the project (Ireland, 2006).

The Value of IT Projects

The value of IT projects should never be underestimated, but that value can be hard to see at times. That is especially true when there is so much taking place within a company to get a project off the ground. It may begin to look like the project is more trouble than it will be worth in the end, or that it should have been scrapped early on to make way for a newer, better, or different kind of project, (Nokes, 2007). Despite these kinds of concerns, though, companies that work in IT have learned to see the value of the projects more clearly. That allows them to estimate how they can best provide value with their IT projects and still be successful financially. It is a delicate balancing act to do this, because many good ideas in the IT field are cost-prohibitive (Cattani, et al., 2011). These goals and plans are not ones that can be easily created and used, because of scope, time, cost, or another factor. However, there are many ways to get through concerns that are being faced with a particular IT project, including worries over price vs. value.

One of the most common ways to see the value in IT projects is to look at what is currently being offered in the marketplace (Cattani, et al., 2011). People want new things, but they also want improvements on the things they already have. Companies that see the value in IT projects are always looking to what customers have but want to see upgraded, and what they do not have but would like to have. In other words, these companies look for market opportunities, which is where most of the value in IT projects can be found (Cattani, et al., 2011). It does not help to create a slightly different version of something that already exists, when the company could instead be providing something with added features and benefits that will be important to the consumer (Stevens, 2002). Handling things that way means a lot of value to the IT company and the project being created.

Project Management Software

Among the ways to handle project management effectively is through the use of project management software. While it is not for every company or every project, it can be very helpful in allowing a company to set up a project and stay on track with it. Companies that use project management software often see increased value and performance from all of their projects, because the management software helps their employees meet their goals, plan the next steps, and see where the project is heading (Ireland, 2006). Being able to see how the project is progressing is a significant way to stay on target with the goals and milestones that have been set for that project, which can mean lower cost, faster completion, and a clearer scope (Ireland, 2006). All of those factors will make the project smoother from beginning to end, and can also help companies see which projects have enough value to be worthwhile. Other projects will be cancelled, because the software shows that they will not be cost effective for the company (Cattani, et al., 2011).

The faster the value of any project is determined, the better it will be for the company considering that project, and management software is one of the best ways to get a handle on value before a project moves too far along (Stevens, 2002). Ideally, project management software can be used to work through all projects that are being undertaken by the company, and also to see whether a project would be a good fit for the company or whether it should be avoided (Stevens, 2002). Putting projects into the management software gives a company the opportunity to plan them out, and see if they are going to be viable (Stevens, 2002). Projects that are viable can move forward, and projects that do not make logical or financial sense will not go any farther than the planning stages. The software is often able to help companies makes these kinds of choices much more easily.

Meeting Goals and Objectives

The meeting of goals and objectives is something on which every project manager or management team must focus. Without being able to meet goals and objectives for a project, very little would get done. That becomes unfortunate for the company, and also for the people who could have benefitted from what the company was making (Cattani, et al., 2011). The goals and objectives of each project will be a bit different, although the end results will generally be the same or similar. For example, the goal may be to get the project completed so the product created through it can be taken to the marketplace. However, the smaller goals set along the way can be different for every project, based on what that project really is and how it is being handled by the company. (Nokes, 2007) Whether it is a software or hardware product and how it will be marketed also matter, because there are differences there that go beyond whether something is tangible or intangible. Companies that are working on projects must consider how they are going to meet their goals and objectives, so they can be successful, address their bottom line, and keep consumers happy.

In order to meet goals and objectives, market research is needed. A company that is undertaking a project will want to make sure the finished product is going to be something that consumers want and need. If there is no interest in the final product, there… READ MORE

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