Project management is an approach to managing a project that incorporates the use of the application of project management principles to achieve a project goal for a specific time span and budget. It is the application of the principles and methodologies that are used by the professionals. As outlined on a PRINCE 2 Foundation Course qualification.

The Project Initiation Process

Project implementation involves a process from initial idea to delivery of the end project, which takes about 5 to 7 years. Some of the steps that the project manager and the team will be involved in will be:

Resource Allocation

Resource Allocation involves deciding exactly what resources are needed and what they should be used for. Per skill, people, and time will need to be allocated to the project.

Planning

A project is first planned using a project charter. The charter implies that the project has a purpose and objectives, and that the project will be conducted to meet the purpose and objectives.

The next step is to create a mission statement that will contain the purpose and objectives of the project as well as the boundaries and limits of the project. The mission statement is a summary of the project purpose and objectives.

The next step is to create a project team of professionals and managers. Again, the stated purpose, objectives, and boundaries of the project will be defined by the team.

Start the project team. This begins the life cycle of the project. Each team member has a specific area for their expertise and experience, and a number of sub-teams are used to build upon this basis. Each team has a leader with full authority and responsibility over the team and works closely with all the team members.

Agenda

An agenda will detail all of the current needs and activities of the project, any important issues facing the team, and decisions to be made. The meeting is planned by the team leaders and agenda items are approved by the team members.

The Change Control Board

A document that describes the minimum function of the group in terms of accountability and process to evaluate changes to projects is called the Change Control Board. The purpose of the Change Control Board is to review and assess all issues and ensure that the project remains compliant with the charter, ethics, and governance issues.

Project Monitoring and Control

This is where the project stays compliant with the stated purpose and objectives of the project. The project manager is responsible for this phase.

Changes Control and Review

Changes are recorded and any changes or modifications are reviewed to ensure that the changes are approved.

Project Finalization

The project is completed and the deliverables are handed out to the team members.

Project Completion

These key steps are completed in a way that meets the needs of the team, the project itself, and the project sponsor.

The Project Budget

The budget is the detailed description of what the project is to cost. It contains the budgeted costs for the project, but more importantly what each cost will include and what aim it will achieve. The budget is a practical representation of costs yet is not necessarily set in stone.

Project Scheduling

A realistic and organized budget is usually based on the involved team member’s skills, experience, and time to complete the project. The team should have a clear target date of completion, and it is the project manager’s responsibility to reach this date for budget and project approval.

Project Budgeting

This process is done in a way that will serve as a realistic schedule of financial investment to obtain return on time and cost. This works to the point that the project team will be able to manage their time, expense budget, provide the budgeted costs, and increase the attainment of the target date of completion by being unreasonable when accepting budgeted costs.

The project charter is as important as the mission statement as it is a charter of the project, and takes more responsibility over the project than the project managers role. The charter outlines the project’s proposed purposes and goals, and what will be delivered and accomplished. Success on the charter is measured by the end date, not with the end in site, time on site.

Because time and cost are high priority items, specifications are made by the proformas and actual site is shifted to support the project. Depending on the nature of the project, the location of the site may be a factor. The construction of site and associated work is not to be taken lightly.

Depending on the nature of the project, the costs should be worked out. If there is to be a change to the structure, the time may be saved by using a structure that will conform to the projected site. But if there is major construction, this adjustments will have to be made on site. From time one costs vary.

The Erial Group has described this basis of cost determination.