There are a lot of factors that contributes to the costs of a certain project of a company. It could be the resources needed for the project, wage rate of laborers, material rates, contingency costs “earned value management”, plant, equipment etc. These are the factors that greatly contribute to the cost of finishing certain projects of the company. With project management, the leader/producer will have the idea and strategies on how to minimize the said costs therefore improving the profitability of the company.
Moreover, the reason why companies would want to minimize their costs in finishing a project would be, aside from the fact that it increases their profit, the chance of using the saved capital into other beneficial investments of the company like buying of new equipments or establish additional plants to expand the project capacity of the company. Furthermore, through project management, the leader/producer will have a comparative advantage over their competitors in the market since they could offer projects at low cost in order to attract more customers.
In short company’s volume of project will improve giving way for an impressive revenue growth. In this regard, managing a project do not just benefit the company through lessening the time to finish the project and provide harmonious working relationship to its workers/employees but also give way for the company to have a comparative advantage over their competitors as well as improving the profitability of the company through minimizing the cost of finishing a certain project. “Scope”
It is not only the quantity of a project could the project management offer to the company; actually even the quality of the project could be at the same time improved by the said technique through securing the individual tasks of the workers/employees of the company (Wheatley, 2005). The main point here is that, projects has specified requirements in order to attain the needed result by the client and this is what the producer/leader would want to stick around or follow in order to produce what exactly is needed by the client.
By following into the specification of the project, the company will attain quality in such a way that it fits based on the given specification of their customers. Moreover, the amount of time to in order to put into individual tasks serves as the basis for determining the overall quality of the project. The time allotment for a certain project given the specification of the client is specified at the very start of the project. But there are some projects that can be completed exceptionally given more time to finish it.
Therefore, through project management, the producer/leader could easily estimate the optimal time in order to finish a certain project and make compromise to the client if the latter gave limited time to finish his/her project. This issue is very much important in large project since a single deviation in the time and cost of the project could cause significant impacts on the overall performance of the company in finishing the concerned project.
Conclusion Based from the above identified benefits being offered by project management, it is clear that through the said technique companies have a large chance of enjoying a secured position in the market place and the threat of competition would be lessen due to the acquisition of comparative advantage based on the quality and quantity of projects that the company could accomplish given a specific period of time.
Moreover, cost minimization and improvement in the profitability is attained by the company through the said technique.
Chandler, H. M. (2007). Production Values: The Value of Project Management. Retrieved February 1, 2008, from http://www. gamasutra. com/view/feature/1886/production_values_the_value_of_. php Wheatley, M. (2005). The Importance of Project Management. Retrieved February 1, 2008, from http://www. projectsmart. co. uk/the-importance-of-project-management. html