Management control of project
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A project is defined as a complex, non-routine, one-time effort that is limited by time, budget, resources, and performance specifications. Projects go through phases of planning, implementation, and evaluation and follow a scheduled set of budgeted activities. Management control of projects is important to ensure projects are completed on time, within budget, and meet quality standards. Key aspects of control include monitoring time, cost, quality, physical and human resources, and financial resources.
Management control of project
- 2. What is a project A PROJECT IS A • COMPLEX • NON-ROUTINE • ONE-TIME EFFORT IT IS LIMITED BY • TIME • BUDGET • RESOURCES • PERFORMANCE SPECIFICATIONS
- 3. MAJOR CHARACTERISTICS OF PROJECTS ARE • DEFINED OBJECTIVES • LIFE SPAN WITH BEGINNING AND END • INVOLVES SEVERAL DEPARTMENTS AND PROFESSIONALS • IT HAVEN’T BEEN DONE BEFORE • HAS SPECIFIC TIME, COST AND PERFORMANCE REQUIREMENTS
- 4. MANAGEMENT CONTROL OF PROJECTS PROJECTS – A SET OF ACTIVITIES, WHICH ARE CARRIED OUT WITH A DESIRED END RESULT. PROJECT GOES THROUGH PHASES OF PLANNING IMPLEMENTING EVALUATION IT FOLLOWS A SET OF BUDGETED ACTIVITIES WHICH ARE SCHEMATICALLY SCHEDULED.
- 5. MANAGEMENT CONTROL OF PROJECTS AN UNCONTROLLED PROJECT WOULD RESULT IN LOSS OF RESOURCES BOTH IN TERMS OF TIME AND MONEY COSTS INCREASE EXPONENTIALLY WITH A LINEAR INCREASE IN THE DEGREE OF CONTROL. KEY ISSUES IN CONTROL OF A PROJECT ARE TIME, COST AND QUALITY OF WORK
- 6. MANAGEMENT CONTROL OF PROJECTS OPTIMIUM TIME OF A PROJECT – IT SHOULD ENSURE THAT THE BEST POSSIBLE WORK IS CARRIED OUT IN THE SPECIFIED TIME. THE WAY CONTROL IS EXERCISED SHOULD GENERATE, POSITIVE PARTICIPATION GOAL SEEKING
- 7. PROCESS CONTROL IN PROJECTS CONTROL OF PHYSICAL ASSETS – INVOLVES THE SCHEDULING, MAINTENANCE AND REAPIR OF PHYSICAL ASSETS (BOTH PREVENTIVE AND CORRECTIVE CONTROL). CONTROL OF HUMAN RESOURCES – HUMAN RESOURCE ACCOUNTING. CONTROL OF FINANCIAL RESOURCES – INVOLVES WORKING CAPITAL MANAGEMENT BUDGETING CAPITAL INVESTMENT DECISIONS AND CONTROLS
- 8. PHASES OF PROJECT CONTROL PROJECT PLANNING – THE PROCESS OF DEVELOPING THE BASIS OF MANAGING THE PROJECT INCLUDING THE PLANNING OBJECTIVES, PROCEDURES, ORGANISATION, ROUTINES, FINANCE AND OTHER ACTIVITIES. TECHNICAL LEVEL OPERATIONAL LEVEL THE FINAL PLAN – CONSISTS OF, SCOPE SCHEDULE COST (TEC+OPC) CPM – REDUCES PROJECT DURATION AT AN INCREASED COST. PERT – PROBLEM OF UNCERTAIN ACTIVITY TIMES.
- 9. PHASES OF PROJECT CONTROL PROJECT EXECUTION TROUBLE REPORTS – EMPHASISE THE PROBLEMS THAT HAVE ALREADY OCCURRED OR ANTICIPATED TO OCCUR. CRITICAL PROBLEMS ARE IDENTIFIED AND HIGHLIGHTED. PROGRESS REPORTS – INVOLVES THE COMPARISON OF ACTUAL AND PLANNED SCHEDULES AND COSTS FOR THE WORK CARRIED OUT, ALSO CONTAIN OVERHEAD ACTIVITIES THAT ARE NOT DIRECTLY RELATED TO WORK. FINANCIAL REPORTS – IT PROJECTS COST ACCURATELY WHERE COST REIMBURSEMENTS ARE MADE, IT GIVES A CLEAR PICTURE OF HOW THE FINANCIAL RESOURCES ARE BEING SPENT.
- 11. Diversification of GMR group Ferro-alloy manufacturing (1991-92) Sugar production (1995) Breweries (1998) A 200-megawatt (MW) power project in Chennai (mid-1990s) A barge-mounted power plant, the world’s first and largest, in Mangalore in late 2001. Highways and Urban Infrastructure. Airports Manufacturing (agri-business, mainly sugar) Net revenue of INR 45.67 billion in 2009-10 as compared to INR10.62 billion in 2005-06 Growth rate (CAGR) of 44 per cent. Company’s assets were valued at INR149.34 billion in 2010.
- 14. BUSINESS PROFILE: GMR Holdings Pvt. Ltd. Is the holding company with 2 subsidiary companies- GMR Infrastructure Ltd. & GMR Industries (Airports) Ltd Ownership structures has remained consistent with equity proposed to be distributed equally among Rao, his sons and his son-in-law. Decision making Council – Rao, Raju, Kiran, S.B & 2 independent non-family executives. Due to the rapid expansion of the group, Rao in 2006 hired strategy consultants Mckinsey & Company, so as to assign roles and responsibilities to each family member.