Resource management is the effective utilization of an organization's resources to accomplish a given task or project. In project management, resource management is one of the most important skills of a project manager. Because a project has a fixed (usually) schedule and budget, the utilization of the project's resources can play an integral role in the success of the … [Read more...]
Total Float is a concept within the Critical Path Method which tells the project manager how much a task can be delayed without impacting the project completion date. Float is the final product of the project network diagram. The network diagram is used to determine two things: Tasks which are on the critical path Float (total) of each task The Two Types of … [Read more...]
Cognitive biases can be the unseen architects of failure or success. These mental shortcuts often lead us astray, from overly optimistic timelines to underestimating risks. Today, we'll explore how biases like overconfidence, sunk cost, and anchoring affect project outcomes, team dynamics, and strategic planning. Understanding these invisible forces can transform how … [Read more...]
A project feasibility study is a report that investigates the viability of a project. It seeks to provide its stakeholders with an analysis that results in a go/no-go decision. Feasibility studies are performed in a variety of industries. They are prominent in the oil & gas, mining, or renewable energy industries, or in the manufacturing industry for new plant … [Read more...]
A cost benefit analysis is a project selection method in which a common metric is used to compare a project's costs and the benefits it provides. It is used in public projects (like road building) or projects where the end product is not purely monetary. The cost benefit analysis is performed by computing the net present value of the project with the net present value … [Read more...]
Payback period is the length of time required for an investment to recover its capital. It is the amount of time required until the investment is in a break even position. It is generally used for investments that involve a large up front capital outlay, such as the construction of an industrial facility or development of a software product. The shorter the payback … [Read more...]
The internal rate of return (IRR) of a project is the expected growth rate of a project investment. It can be compared to the rate of return obtained by investing the money in the stock market or in other projects. Organizations typically calculate IRR to make decisions between several investment alternatives. It is the discount rate that results in a net present … [Read more...]
In the complex world of project management, success has traditionally been measured by hitting targets related to scope, time, cost, and quality. However, there's an increasingly recognized truth that transcends these metrics: The perception of success by stakeholders is often the most crucial determinant of a project's real success. This perspective shifts focus … [Read more...]
How do large corporations make the decision to proceed with a project? What data or metrics do they consider prior to investing billions into a new plant, a new high rise condo, or major I.T. project? Capital budgeting refers to the financial modelling that evaluates the feasibility and compares potential project investments. At the end of the day, organizations … [Read more...]
Many projects and organizations purchase external goods, services, consultants, contractors and suppliers in a process called procurement. Although it's a very efficient and capable way to deliver project work, it has its own limitations that must be recognized in order for the procurements to go smoothly. A procurement strategy establishes the methods and procedures … [Read more...]
