Business Project Management 2 Essay Example | Topics and Well Written Essays - 2000 words

Business Project Management 2 - Essay Example The team of project managers handles the various activities of the project that involves competing demands for cost, time, quality and risk, managing the expectation of the shareholders and identifying the requirement. Many of the processes within the project management are iterative in nature. The reason is that there is necessity and existence of progressive embellishment during the life cycle of the project because the more one gets to know about the project the more he is able to manage the project (Young, 2013). The project life cycle is defined as a sequence of steps that forms different phases of the project. The project life cycles comprises of four steps project commencement, project preparation, project implementation and lastly project closure. Project commencement is the first step in which various opportunities and problems related to the business are identified and various solution options are prepared through development of business cases. Feasibility study is conducte d to analyse whether the solution provided will address the business problem and finally the solution is recommended. Once the solution is recommended it is approved and project is initiated. The next step is project planning. The project planning involves steps outlining the plan of the project, quality plan, financial plan, resource plan, risk plan, procurement plan, communication plan and acceptance plan. The third step is the project execution. In this phase the project gets executed according to the project plan and a series of management process are engaged in controlling and monitoring the output delivered by the project. The final step is project closure, which involves processes like delivering the final product to the customers, the project documentation is handed over to the business, the supplier’s agreement are terminated, project resources are realised and finally the closure of the project is communicated to the stakeholders (Westland, 2007; Schwalbe, 2010). Th e study aims to critically evaluate the relationship and usefulness of time, cost and quality behind the success of a project. Relationship between Time, Cost and Quality For deriving the relationship between the three factors one of the factors need to be held constant. In order to find the relation between time and cost, quality is held constant. A trade off relationship exists between the cost and the time required to complete the project. For some types of cost the relation is directly proportional while for some other cost a direct trade off is noticed. Due to these two categories of costs there is best possible project rapidity for nominal cost. By considering the relationship between the time and cost, the impact of change in scheduled time on the cost of the project can be better understood. There are two types of cost involved in a project, direct cost and indirect cost. Direct costs are those costs that are directly related to the activities of the project like equipments, material, salaries etc. If the pace at which the activity is running is increased then the cost increases, since in order to complete the project faster more resources will be allocated. Indirect cost is denoted as overhead cost; the cost that are not directly associated with the activities of the project like office space, taxes and administrative staff etc. During the project the