BAM 540-unit question 1
1.
Analyze the advantages and disadvantages of using project management.
Project management is one of the favorite tools in an organization. It involves managing the
activities of a project to achieve the specified objective which enables the organization responds
to any opportunities quickly, get breakthroughs in technology, handle any emerging issues and
even better the internal relations. [Jeffery K. P. (2010), Pg.6]. According to Tom Peters, “Projects,
instead of repetitive tasks, are the basis for most value-added in the business.” The highest risk
that companies face is the presence of opportunities and threats as a result of external factors.
[Jeffery K. P. (2010), Pg.7]. Projects are activities that are different from the day to day routines
of an organization while undergoing its activities of production. They are normally not part of the
normal process of operation of the organization. [Jeffery K. P. (2010), Pg.8]. Projects are unique
according to the nature of the business and could at times pose a challenge. Projects in general are,
“ventures with beginnings and ends that are conducted by people to meet a goal in a perimeter of
quality, cost, and schedule.”
Project management enables the shortening of the product lifecycle. These days, the lifecycle of
products has become short due to the increase in competition. [Jeffery K. P. (2010), Pg.8].
Nowadays companies cannot rely on introducing a product and hope for competitive domination
for a lot of years just like they have been doing before. [Jeffery K. P. (2010), Pg.8]. The lifecycle
has been reduced from years to months and even weeks to others. This is most clear in computer
software and hardware and electronics. [Jeffery K. P. (2010), Pg.8]. Both must keep upgrading
their systems and models every few weeks. The service industry faces the same effect, and thus it
keeps on improving their service packages often.
Another importance of project management is enabling the narrowing of the product launch
windows. [Jeffery K. P. (2010), Pg.9]. Organizations must ensure that product introductions are
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BAM 540-unit question 1
well and strategically timed. [Jeffery K. P. (2010), Pg.9]. This provides that companies introduce
their products at an optimum point, where they enjoy the most profits. [Jeffery K. P. (2010), Pg.9].
While this is happening, the company should be planning on the launching of another product;
which could be an upgrade or a completely different product. [Jeffery K. P. (2010), Pg.9]. Due to
steep competition, the optimum launch is measured regarding months. Missing it in even a few
weeks could lead to a risk of total failure or even severe losses.
Through project management, the company can keep up with the complex and technical products
that are getting more complex every day and as a result, creating difficulty in the process of
production. [Jeffery K. P. (2010), Pg.9]. The public is often excited and waiting for a more
significant thing than the last products that were introduced into the market. [Jeffery K. P. (2010),
Pg.9]. The changing of the products to bigger or smaller, faster and more efficient then creates
difficulties for example in designing since the production team must come up with a new design
each time. [Jeffery K. P. (2010), Pg.9]. The limits keep being pushed since the public’s demands
must be met. Firms may also result in research programs that are expensive which could result in
the products made being expensive too. [Jeffery K. P. (2010), Pg.9]. When these products are
made, they may fail to do well since the manufacturer may cause an error that could cost him, for
example, making sophisticated and heavy machinery that is used in remote places thus is hard to
transport back to the company in case damage occurs or the machine needs servicing. [Jeffery K.
P. (2010), Pg.9]. The improving on designs should be done carefully not for the sake to minimize
the chances of losses.
Project management gives the organization the ability to link with other organization as well as
respond to the demands of the market as well as the supplier globally. [Jeffery K. P. (2010), Pg.9].
The organization can fit in as well as compete in global markets. Recently, the global market has
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BAM 540-unit question 1
seen many new markets for both products and services emerging. [Jeffery K. P. (2010), Pg.9].
Economies that used to be closed for example India and China have also joined in the global market
pose a massive competition among companies as well as a larger customer base both which come
with their new challenges. [Jeffery K. P. (2010), Pg.9]. When these challenges are sorted, they
offer unique opportunities to benefit and grow the organization.
Project management helps the company adjust to economies of low inflation. [Jeffery K. P. (2010),
Pg.9]. When inflation is low, there is a high expansion of the economy for an extended period.
[Jeffery K. P. (2010), Pg.9]. This has seen economies of China and India expand quickly. Low
rates of inflation, however, deter profitability of the company since the company cannot keep
increasing the prices thus through project management, a company can streamline its internal
processes to spend less thus increasing profits. [Jeffery K. P. (2010), Pg.9].
Effective project management can be disadvantageous to the organization since they involve
carrying out projects that are not part of the normal processes of the organization. [Jeffery K. P.
(2010), Pg.9]. This means that they require the different units of the organization to multi-task
which can be hectic. [Jeffery K. P. (2010), Pg.9]. The various departments must set aside time for
the project which interferes with their daily routine.
The projects have a definite life cycle. This means that they have a set a date for beginning and
end. As such, the deadlines may cause pressure to the employees to meet and thus may interfere
with their ability to deliver. [Jeffery K. P. (2010), Pg.9]. The very fact that they require a mindset
that is different from the normal processes makes it harder.
The crossing and interfering with both functional and organizational boundaries are involved in
project management. This interferes with the routines of the organization. [Jeffery K. P. (2010),
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BAM 540-unit question 1
Pg.9]. The crossing of boundaries happens since the time limits, budget estimates and customer
satisfaction of the project must be met. [Jeffery K. P. (2010), Pg.9]. As such, the organization
seizes to run smoothly and is subjected to many disruptions throughout the project.
Companies thus must be on their toes, modifying their products and introducing them regularly,
while quickly responding to customers and maintain low costs of operation and competitive costs.
[Jeffery K. P. (2010), Pg.9]. A company that does this can rapidly respond to opportunities as well
as curb international competition. Companies must concentrate on the three aspects of a
competitive model which is possible through project management.
In conclusion, project management is very crucial to an organization, where if employed
effectively will have immense advantages to the organization. This advantage can be a product of
enormous success to the company. The various disadvantages of project management must be put
into considerations while it's being employed.
Reference
1. Jeffery K. P. (2010), Project Management, Second Edition, Pearson Prentice Hall, ISBN13:9780136065616.
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