Kevin Payravi, Wikimedia Commons The Project Management Institute (PMI) reports that only 64% of projects meet their intended goals. The difference between a successful project and an unsuccessful one can usually be narrowed down to one word: Planning. Even small projects can benefit from a Project Management Plan. The following Project Management Plan checklist is … [Read more...]
The calculation of the net present value (NPV) is a budgeting technique that equates the discounted cash flows against the initial investment. The mathematical formula is: $$NPV = \sum_{t=1}^{n}\frac{FV_{t}}{(1 + k)^{t}} - I$$ Where: FV = Future cost of the cash inflows, I = Initial Investment k = Discount rate equal to the owner's cost of capital I … [Read more...]
Project Management, as defined by the Project Management Institute in the Project Management Body of Knowledge, is comprised of five 'process groups': Project Initiation Selection of the best project given resource limits Recognizing the benefits of the project Preparation of the documents to sanction the project Assigning of the project manager Project … [Read more...]
Critical Success Factors, or CSF's, are the criteria that defines success. In project management, they are found in the project management plan and define what it means for the project to be successful. Time and Cost (deadlines and budgets) are almost always part of the CSF's, but most projects have other success criteria as well. In any area of life, you create goals … [Read more...]
In order to understand the complex profession of project management, we must first define the word 'project.' A project is a temporary endeavor that: Has specific objectives to be completed within certain specifications Has defined start and end dates Has funding limits (if applicable) Consumes human and non-human resources (i.e. money, people, equipment) Cuts … [Read more...]
Taken from Project Management, A Systems Approach to Planning, Scheduling and Controlling by Dr. Harold Kerzner, PhD. Adopt a project management methodology and use it consistently. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone. Commit to developing effective plans at the beginning of each … [Read more...]
Engineers are not normally taught the principles of project management, although it is a critical function in their careers. Most engineers see themselves as technical experts, not project managers, but business is business and every engineer I know of seems to find themselves face to face with the realities of timelines, budgets, and people management on a regular … [Read more...]
