Project management and project performance go hand in hand and it is ideally difficult to achieve the needed performance with out a proper management plan, in today’s industry the projects are getting more and more complex with more technical tools, cross country collaboration among resources, faster delivery to market, high quality standards, proper resource management etc. and in order to manage all these we need a proper plan or else the project is doomed to fail, hence project management is needed. In the below sections, we have discussed the terms project management, project performance in detail and also we have defined what is a PMO (project management organization) office, the team which handles project management. The effects which project management will have on project performance is discussed in later section titled effects of PMO on project performance and finally, we have taken some practical case studies where project management is applied and analyzed the effects that project management will have on project performance.
Project management is defined as process of initiating, planning, executing and delivery of a product with a group of a team to achieve a goal on time. In project management the main things to consider are start and end date of a project. For every project there will be a risk factor which should be taken care. Any project needs following four factors: Time, Budget, Quality and Feedback from the stakeholders. Also, project management is an important and significant contribution in delivering the business benefits through projects. It also has been seen that organizations these days are following a strategic way to achieve the goals of the project. Project management also plays a vital role in preparing a strategic plan to get the project from the customers and justify the requirements or funding but unlike any projects in a realistic way the goal of the project to achieve and be prepared with their professionalism to prove the efficiency. Projects will also have budget, plan, initiation, execution, date and deadline. There will be a risk factor for every project, but prepared to be ready in accepting the risk and moving on to the next levels of project management. The project management means having the ability to plan and prove the efficiency in delivering the project on time. The project management will follow the specific principles like Rules, Knowledges, Methods, Techniques, Tools and plan accordingly. Budget is also the next priority role that project management must plan carefully and assign the resources accordingly. Project management practices are critical in ability to plan, and success during the economic times. Also, it is important that providing the evidence of the importance on project management principles during the delivery of the project on time. Project Management usually also follow up or plan the performance of the project and maintain a careful track on delivering the projects on time. Time, Cost, Quality plays a vital role in following a strategic goal for a successful project. The few challenges that project management follow assigning the ownership of the project, Available resources, product delivery, monitoring the performance if any defects, developing the key documents, good communication skills, identifying the levels of different projects and providing the inputs to the project management methodologies. However, the methodologies or the principles of project management might change to organizations significantly with respect to their structures, objects, and strategic plans of the business models. The different phases of the project analysis involved in purpose of defining the project below are the few,
Budget the next level plays a vital role in getting the approval of the actual cost of the project. The budget might also get approval once after the planning and prepared a design for a demo.
The projects that were planned to complete on time and the scope of planning the project on establishing the owner of the project and following a strategic plan accordingly.
The average might also involve the cost of the time or actual work is done depends on the scope of the project.
The project schedule might also play a vital role in scheduling the time and effort toward the project, which needs to be completed on time.
The above factors may not be limited to the individual projects but extend to include project dependencies to develop and ensure a successful project. Also, the other few factors of the project are planning, engineering, design and quality following these factors might also help to design and deliver a successful project. The performance of the project is also the next level of the management where monitoring the track of the project if any issues are then reported.
Below are few factors of the project management:
The idea of the project is then carefully reviewed or discussed in this phase if the benefits and the profits could reach the organizations management levels. Since it’s a beginning of the project, in this phase we are mainly depending on identifying the stakeholders.
Planning will be the next phase where the initial planning of the project is developed which then involves the scope, estimation, roles and responsibilities and approval process. Planning of the resources, time scheduled for the project and budget is then discussed in this phase. Identifying the most important goals and measure the time and effort towards the project with the available resources for a successful project.
In the execution phase the development of the project is then started with the available assigned team members. During this phase there will be lot of things going to happen such as status reports, meeting, development status and performance of the project. Develop the team and assign resources then execute the project management plans, document the relevant development process attend the daily status meetings, update the project schedule these all kind of tasks happen during the execution phase. Risk assessment and budget also plays a vital role in execution phase.
Monitoring is the next phase where after the execution of the project is done then the project is monitored on weekly basis where it is mainly to track the issue and then fixed by the development team. Budget, timelines, project goals, quality of deliveries also plays a vital role in project management for monitoring phase.
Once the project is then completed, the project management then usually creates an event and includes all the team members who were then included. After the project completed the project management schedule a meeting and evaluates the tasks and discuss the failures. The project management then creates a final report and hand off the final product to the team. Team will then prepare a closure document, which involves an information on stakeholders, deadlines, goals of the project, team members involved, date of initiation, project budget.
It is important that by following all the above factors will then lead to successful project management. It is most imperative that this kind of proposed framework or by following all guidelines on managing the strategic way in preparing the plans for a successful project. In the next topic we are going to discuss about the project management performance.
Project Performance is a major aspect of the aggregate undertaking control way to deal with task and program esteem investigation. As project performance is a part of total project control (tpc) which gives the project analysis from step to step. It is a record that incorporates the three factors of a project (degree, time and cost) and the work which is measured that gets engaged. The success of the project is measured on continues review from level to level by which it can be improved further, continues measure of a project performance allows the team member to fix the attainable and realistic targets in time.
Time is a give or take money related aspect if the project is prior or later than the deadline and Cost is the cost gauge to-finish (Cost ETC) of the task, the financial units that will be required for assets to finish the undertaking.
Factors Effecting the performance of a project
Factors which effect the performance and outcomes of a project according to the study are mainly depend on Organizational culture, Project Management culture and the Project Manager. Organizational elements which are taken in consideration like values, norms, artifact and leadership. Likewise the other factors too have some elements which effect the performance of project, say as Project Management culture strategy of plan, top management support project management methodology, project owner decision changing, communication between the team members and proper learning of the project from scratch to the end, and unnecessary modification in between the project which also effect the cost, Elements influencing the Project Manager, understanding of the project and assign the project with the team members, capability, self-sufficiency and leadership style.
How to measure the success of a project performances
Success criteria must encompass hard metrics inclusive of turning in the task on time and within price range, accomplishing the task scope, assembly milestone dates, cost objectives, challenge high-quality necessities, mission dangers, safety environmental and safety requirements. If you are a small private organization simply the transport of undertaking on time, within price range and attaining the scope would be enough. But if you are a business company operating in mining or electricity sector, you might need to include managing project dangers, assembly safety and protection necessities within the fulfillment standards. Whereas in case you are a organization working in the environment zone it might be vital to encompass meeting health and environmental necessities as an achievement criteria for your initiatives.
Project Performance Measure
When we consider project execution estimation, it’s not only team work or business process or an organizational execution, as identical as evaluating the execution of a gathering or a business method or an affiliation’s framework. So, we need to examine the sorts of measures that will reveal to us what we really need to know to administer the project execution. When we measure the execution of the business strategy or gathering, we’re enthused about how a business result conveyed by that system or gathering is changing as time cruises by. And how the we can gather the information to use in future to make it simple as day goes, we are developing new technologies for every new development the performance might not be the same, but the process used can be applied, due to which time and labor can be reduced.
The size of this impact on an enterprise performance measure is a measure of an undertaking’s success. It’s the scale of the distinction among the level of overall performance earlier than the project’s start time, and the level after the challenge’s quit time.
what are the error fixing areas, the details of if and when performance has changed there are few main errors which can be avoided? Among them which I categorized here are.
- Not wasting the time on fixing the problem that isn’t even there.
- And the problem which is already fixed
Bottom line Impact and Return if investment
An assignment received achieve success if the cost of doing it was no longer sufficiently decrease than the fee of the impact. So we need different vital measures approximately economic effect, like prices saved or profits generated, and ROI, that is the price of the task relative to the economic effect
On-time and On-budget
Measures also can assist us manipulate the task whilst we’re enforcing it. A well-controlled mission is much more likely to have a large impact and massive ROI. This is where the maximum typically used measures of venture performance are available in: on-time and on-finances. And these are measured at everyday milestones throughout the challenge. But they simplest make experience if we don’t alternate the aim posts.
Few other project performance measures which can be taken in consideration are
- Completed on time
- Completed on-budget
- Stakeholder participation
- Leadership style, teamwork, project management etc.
How to measure success of a project performance
It’s awesome knowing how you’ll measure fulfillment criteria going forwards, but how are you doing today? If you need to seize trending facts then you must take a baseline of cutting-edge overall performance as quickly as you may, ideally as soon as you have set the fulfillment criteria. The problem is that at the beginning of an undertaking there’s usually so much occurring that baselining modern performance takes a again seat to doing improvements and handing over change. Still, make time for it, or you’ll have a tougher job later working out whether your project has made a distinction. It’s tremendous knowing that you are now calling back clients inside 20 mins, but if you don’t recognize what the decision again time became earlier than assignment turned into implemented you could very well have made the situation worse. In the next topic we are going to discuss about the project management Offices.
Project Management office
Project management office is continuously growing concept across the world. PMO is mainly responsible for the guidance, handling complex projects, documenting the overall progress of the projects and implementing the projects in the organization. (do Valle, Jose Angelo Santos, e Silvia, Wainer da Silviera, 2008, p. 9).
The PMO provides guidance in standardized tools, techniques and can reduce the problems caused by uncertainties in the project which also helps the project to be effective and cheaper. PMOs will also help in structuring project management into the systematic approach, like quality management, scheduling and conducting day-to-day tasks, iterations and do documenting the project. PMO can provide support to the project management process and in the selection of projects, contributing in the enhancement of maturity and to increase the performance of the organization in the project management.
The Project management officer is the one who is in charge of the PMO. He generally coordinates and supports the organization center. The term sponsor or stakeholder is familiar in each organization. Sponsor is the one who deals with finances sources of the projects in an organization, he is more interested in the success of the project. The contribution of the Project Management office, many firms wants to turn to Project Management office in order to cut the costs and to improve the success rates in project delivery. Due to the changing dynamics, every day the project management became mandatory for helping the public firms to run the project successfully on time without delay. Although there are pros for PMO there are cons which as well can be overshadowed by pros of it (Kutsch, Elmar; Ward, John, Hall, Mark; Algar, John, 2015, p.105-118).
PROS of Project Management Offices
PMO can help in improving project management. Reduces the risks, problems of the project and helps in increasing the quality and success rate. PMOs Need to implement Strategic projects. PMOs leads to increase the efficient use of the resources within the project and assign them to their designated roles. PMOs will help in improved project status control by conducting iterations and communication. Transfer of knowledge is facilitated by the PMOs across the organization (Spelta, Andrea Giovanni, Albertin, Alberto Luiz, 2012, p. 40-54). Project performance gains have no evidence, might create conflicts in the organizations.
Project management office maturity plays a vital role in the organization. PMO is the first step only like the beginning, Though Project Management Office has associated with organizational project management, but there is a lack of evidence to support this. It clearly shows that PMO’s strategic maturity has the greatest impact on all the areas of the Organizational project management. The Project Management Office by many organizations is still obstructed by many doubts and suspicions and its values are questioned by many firms. It is also proved that PMO might not provide an instant solution for all the challenges in the project management challenges, but PMO maturity will add value to the Organizational Project Management.
There are five stages a PMO matures to become a fully operational project management office. PMO maturity models will help the organization to identify the areas to be improved and establish the goals (Khalema, Lehana; Van Waveren, Cornelis; Kai-Ying Chan, 2015, p. 12-26).
Level 1 - Initial: In this level PMO has not adopted yet to the challenges, PM methodologies process are still random.
Level 2 - Mobilize: In this level PMO has been recognized and PMO is started growing up a bit. The basic process needs to establish are done but they are used on the high-profile projects in the organization but not for all. PMO started using basic tools in the project to create some project plans, reporting is yet not clearly-defined and documentation process is not clear.
Level 3 - Design: By this level, processes are standardized and are using repeatable. Reporting is much clear, and in more details, the best practices are learned, and lessons learned by this level. Design and documentation of the project are in the process and the work is underway as expected to analyze the project performance.
Level 4 - Implement: Established PMO within broader organization, PMO process is now integrated with the corporate processes like data analysis and reporting and management become mandatory to have compliance with the PMO, which now has capacity to provide in-depth details of the project performance. There is consistency in quality coming in & out which derives from historical organizational data.
Level 5 - Manage: In this level PMO has complete processes in place, to measure the project quality and efficiency. PMO identified the plan and started implementing improvements, these are the processes to ensure that project performance continued to improve, instead to remain constant. By this level PMO is recognized as a change model across the broader organization.
By the five levels of PMO begin to assess, everyone can learn where PMO looks to falls at what stages and necessary steps to be taken to help in the desired level.
Project management competency continuum: PMO competency continuum provides an idea on a series of PMO stages that can be considered for application in an organization. Though, the naming conventions are relatively similar the roles are much different to each one. Again, the names provide a general idea other names can be applied to get the exact roles of the PMO responsibilities (Hill, Gerard M, 2004, p. 45-51).
Five general stages of PMO competency are described below.
Stage 1 - The Project office: The Stage 1 PMO is the fundamental of the project. The project office is created as main source of the project manager, who is sole responsible for the project to be finished successful on time. Managing one or more projects at a time. Applying modern project management techniques and principles to that successful project is achieved. The project office concentrates mainly on project deliverables and objectives used for reducing cost, schedule and manage resource utilization.
Stage 2 - Basic PMO: Basic PMO stage is the first PMO level where PMO has to deal with multiple project and control the project in a proper manner. PMO can provide the means to compile aggregate results and evaluating the project manager and project performance and make sure to achieve the project objectives.
Stage 3 - The Standard PMO: Stage 3 PMO functionality becomes the solutions for the firms who is looking to implement project management. PMO is established his capability and infrastructure to support project environment. Stage 3 PMO hires minimal staff PMO director or manager part-time and full-time staff members who can facilitate PMO functional needs.
Stage 4 - The Advanced PMO: The stage 4 PMO is mainly focused on integrating business interests to the project management. In the stage 4 PMO is like director who is next level to stage 3.
Stage 5 - Center of Excellence: Stage 5 the center of excellence is a separate business which has responsibility to widely operate the enterprise project management operations. Stage 5 appears at the top of the PMO competency continuum. Providing directions for enterprise project management operations. To represent the business interests of the particular organization in the project management environment.
In the next topic we are going to discuss about the effects of PMO office on project performance.
Effects of PMO office on Project Performance
Based on needs of the organizations Project Management Offices PMOs are commanded for various reasons. Because of changing orders and elements of PMOs, there is no concurred strategy to decide the estimation of a PMO. Conceptual model is proposed to see that the elements of the PMO can be connected to the esteem made by the PMO. The model begins with the functions with which the PMO is ordered that effect the organization and its tasks that increase the value of the association which can be either positive or negative. The esteem included by the PMO will impact the project and hierarchical execution (van der Linde, J.; Steyn, H., 2016, p.151-161).
There are a few strategies which incorporate interviews, recorded information, coordinate and member perceptions. Semi-organized meetings were led with key faculty in the organization to decide the impact that the PMO had on the organization. The interviewees included senior and PMO administration, PMO customers, PMO work force and key members outside the undertaking project management. Archived information and authority company documentation were concentrated to decide whether progressions were made in the organization’s structures. Projects executed under the new methodologies and administration forms were likewise watched and contrasted and extends executed before the PMO had been built up, with the end goal to decide if there were any distinctions in project results (van der Linde, J.; Steyn, H., 2016, p.151-161).
Key needs figure out which of the conceivable PMO capacities are vital for an association to achieve its strategic and business targets. One of the embraced PMO functions are lined up with the hierarchical needs, a PMO will create expected advantages for the association. The arrangement between key needs and PMO capacities moderate the accomplishment of PMO benefits. In this manner, if PMO capacities don’t line up with the key needs the normal advantages are not understood and the authenticity of the PMO is addressed in an organization.
The foundation of PMO achieves critical changes to the association. One of the greatest changes was the usage of a predefined project administration strategy and administration. An institutionalized Project life cycle process was likewise settled, which was created for industry best practices and directs the lifecycle and gateway survey process. This framework supports every one of the elements of the PMO and is connected to other to frame a coordinated endeavor framework. (Srivastava, Rajiv K, 2012, p. 145-146).
PMOs give a level of advantage and incentive to the endeavor by giving initiative of the enhancement, extension and implementation of project management best practices all throughout the enterprise. Completely working PMOs all positively affect the company’s determination and opportune culmination of the activities which offer some benefit to the business by conveying the desired advantages guaranteed by those undertakings. There are several benefits that PMO add to the companies that include:
- Advance the undertaking’s task administration development, endeavor’s ability capacity and PMO authoritative administration development and perform right activities at ideal time.
- Improve productivity of operational capacities and focused business advantage.
- Provide an organized and facilitated approach for all projects and undertaking portfolios.
- Improve business results from finished ventures and achieved business goals.
- Manage authoritative change of procedures and frameworks.
- Improve synergistic endeavors and incorporation over tasks associations inside the organization.
- Staff progressively complex tasks and projects with exceedingly talented task experts.
- Reduce project and program cost while enhancing staff efficiency and provide authority for development and extension of project management best practices company wide.
- Lead by precedent, by relentlessly and consistently enhancing competency.
- Provide venture/program following, announcing, and key assets prioritization.
- Effectively oversee and convey extends on time and inside degree.
- Improve the venture’s market position to win bigger ventures.
- Improve confirmation of, and undertaking’s notoriety for effective activities.
- Increase market’s trust in endeavor’s capacity to convey and lead hierarchical change of procedures and frameworks.
- Establish project documentation institutionalization and planning methods and apply institutionalized strategy accordingly by providing enhanced project execution in project fruition, decreasing expenses, and constructive outcome on baseline.
- Set up, screen, and routinely give an account of venture portfolio, program-portfolio and undertaking key execution markers which unequivocally indicate particular advantages.
Success factors incorporate measurement of execution of arranging methods, cost administration, plan, scope and chance administration approaches coordination and also change administration endeavors. Measurement of the achievement in every last one of these variables would include deciding the exactness and nature of the first estimation of every one of the triple imperatives, and afterward contrasting these unique qualities and then separate final qualities. Advocated changes will add to a recognition of progress while unjustified changes will flag disappointment. Keeping that in mind, the mission of the project director and the supporting group is to characterize and plan every one of these parts carefully because it could reasonably be expected, introduce the arrangement, screen the execution of this arrangement, advance the arrangement, and introduce the enhanced plan. The real component of things issues is that they are to some degree simple to evaluate, and along these lines they loan themselves to organization, plotting and assessment by an assortment of measurements.
The advantages of the PMO incorporate fulfillment of formalized and predictable project management all through the association furthermore, upgrades in undertaking execution in the territories of expense, calendar, degree, and individuals. Extra advantages are acknowledgment of the venture administration control and enhancement in hierarchical gainfulness. These advantages can be weighed against the expenses of setting up a PMO. These expenses incorporate the expense of a changeless staff for big business arranging and for modified record keeping, and the expense of a proper framework for this new authoritative element. Extra expenses of setting up a PMO are the costs engaged with coaching, counseling, and preparing exercises. These extra expenses rely upon the extent of the task management staff, and can be viewed as operational expenses (Rad, Parviz F, 2001, p. 7).
It is totally conceivable that the potential portrayed here as those of a PMO as of now do exist in the association either independently or on the other hand in total they are simply not called a PMO. Subsequently, associations that are delicate to the achievement and execution of projects might not need to spend any considerable extra sum of cash in building up a task office. The cost of building up a completely created PMO can be a noteworthy project and company has never deliberately taken care of the necessities of activities. To keep the issues in context there is a verifiable expense in having countless activities. This inherent expense is fundamentally higher than the explicit expense of building up a PMO to improve project performance.
In the next topic we are going to discuss about the practical applications of project management.
Till now, we have seen what is project management, project performance, project management office, effects of project management office on performance, now we will take some practical case studies where project management methodology was used while implementing the project and we will also see how proper project management methodology helps to improve the delivery or performance of the project and how an improper project management methodology or failure to implement proper management practices results in total failure of the overall project as well as the losses that are incurred in such case. The following case studies are peer reviewed articles that helps understand the relationship between project management and performance.
Sterilization central supply case study
We are going to take the case study where we describe the implementation of Project Management techniques, based on the guidelines defined by the Project Management Body of Knowledge (PMBOK), which was used on a Sterilization Central Supply, to help the hospital get accredited by meeting the needed quality standards (Ramos Freire, E. M., Rocha Batista, R. C., & Martinez, M. R.,2016, p.96). The case study focuses on Sterilization central supply, a small private hospital, located in a town in the southern part of the state of Minas Gerais (Ramos Freire, E. M., Rocha Batista, R. C., & Martinez, M. R.,2016, p.99), which was trying to get accreditation with highest quality standards and lowest cost, the project management process helped the hospital to achieve it’s accreditation in 2013, the case study was conducted for a year (2011-2012) and the project management process that was followed was clearly explained.
The present case study includes the CME of the aforementioned hospital (Ramos Freire, E. M., Rocha Batista, R. C., & Martinez, M. R.,2016, p.96) and the management of the CME adaptation project was done based on the guidelines defined by Project Management Body of Knowledge (PMBOK). The CME adaptation project was carried out in five process groups prescribed by PMBOK such as initiation process, planning process, execution process, monitoring and controlling process and closing process and five groups are created accordingly to manage each process.
In the initiation process, projects needs, goal and targets are identified along with team and team manager, in the planning process, the plan or path is identified so that the project meet its overall goals and targets, in execution process, the project is developed as per the needed requirements, in the monitoring and controlling process, the project is monitored to see if the planned goals are being achieved as planned and in closing process, the project and all the planned work are brought to completion.
By following the abovementioned process, the hospital got its needed accreditation and the project management methodology greatly helped achieve its target as well as improve the performance of the company.
1976 Montreal Olympics case study
In this case study, we will see how not having a proper project management process effected the overall performance and led to a project failure.
“A successful engineering project must include its timely and economic completion as project management failure can lead to delays and cost overruns”
(Patel, A., Bosela, P. A., & Delatte, N. J, 2016, p.362).
The example of a such a project that greatly exceeded its planned budget is the construction of the multiple facilities for the Montreal Olympic games in 1976.
In 1970, Montreal was awarded to host the 1976 Olympic Games and the mayor of Montreal said that the Games would cost a maximum of $124million but in 2 years the mayor revised the cost to $350 million much more than what was initially planned, the cost of different buildings for Olympic games such as Olympic complex, velodrome etc. skyrocketed as there was no proper plan in place and no progress happened in the first couple of years and ultimately the project was finished with a different plan and cost than what was initially planned and the city of Montreal ended up with a debt of $214 million, the case study contributes unrealistic deadline for the project, project scheduling, shortage of labor, use of unrealistic technologies when there was a tight deadline, lack of expertise and weather as some of the reasons for the failure (Patel, A., Bosela, P. A., & Delatte, N. J, 2016, p.369).
From this case study, we can understand how lack of proper planning and project management process drastically affects the project and results in a loss of reputation, cost burden and overall failure of the project.
Chinese Construction Industry case study
In this case study, we will see how project management helped six chinese construction industries improve their performance, the case study focuses on project management practices followed at their work place and published results of their performance.
Project management was introduced into China after the country’s economic reforms in the 1980’s and has since spread quickly throughout the whole country, particularly in the construction industry (Ping Chen, Maoshan Qiang, & Jia Ning Wang, 2009, p.1016). China’s construction industry performed quite poorly prior to introducing project management
Practices in the 1980s and it is now mandatory and common practice across all chinese construction organizations to adopt project management. The case study mainly focused on finding out the project management methodologies that are implemented, the benefit the companies derived from these practices and the main challenges they faced during implementation.
In the study, the authors interviewed different members of the organization and surveys were conducted with project managers as well as project team members. All the interviewees expressed great appreciation for project management and the role it played in their organization’s success. Upon analysis of results at these different organizations, the author’s identify 11 key aspects of project management that are important for the organizations to improve their project performance, project management practices and abilities (Ping Chen, Maoshan Qiang, & Jia Ning Wang, 2009, p.1020), the 11 key aspects include (1) well established and user friendly management process; (2) executive team support to project management teams; (3) clear definition for project manager role and responsibility; (4) effective stake holder management; (5) resource planning and allocation; (6) effective procurement and contract management; (7) team building exercises; (8) effective training on management practices; (9) customized software tools; (10) effective governance process; (11) competent project managers. There were 12 benefits identified during the interview and survey and also few challenges also identified during the interviews which need to be addressed among the organizations.
As per the study, all six organizations benefitted from implementing project management practices and were able to acquire new projects because of the improved delivery and performance.
Project management with lean six sigma case study
In this case study, we can see how project management combined with other practices such as lean six sigma reduces the overall cost of the project by reducing un-necessary waste, we can use project management techniques to effectively manage lean six sigma project. In this case study, the welding defects were reduced in construction industry and there by reducing scheduled delays and overall cost (Anderson, N. C., & Kovach, J. V, 2014, p.169), for turn around projects. In the case study they made use of project management along with lean six sigma to achieve the needed goal.
The company where the study is carried out is JV Industrial Companies (JVIC), Ltd. Which is an industry-leading turnaround, construction, and fabrication services organization headquartered near Houston, Texas (Anderson, N. C., & Kovach, J. V, 2014, p.170). The project is divided in to different phases such as Define phase, Measure phase, Analyze phase, Improve phase and Control phase (Anderson, N. C., & Kovach, J. V, 2014, p.171-178). In each phase as per the name, the project management plan is defined and developed, information was gathered on the existing measurement, the high repair rate reasons were analyzed through brainstorming sessions, the solutions were developed after brainstorming session and plan was developed to sustain gains.
As a result of this project, the weld repair rate decreased by more than 25%, which translated into a savings of $90,000 for the company (Anderson, N. C., & Kovach, J. V, 2014, p.179), from this we can see by properly applying project management methodologies with other approaches such as lean six sigma, we can have a positive effect on the organizational performance.
We have seen in real time from our case studies the effect project management had on delivery or project performance, a properly planned project achieved the goals in needed time and improperly planned project resulted in failure. From this, it is safe to assume that the project management helps in increasing the overall performance of the project, all that is needed is making use of basic management processes like initiation, planning, execution, monitoring and closure in a project lifecycle, initially the cost of a PMO might seem like a burden but the long-term benefits outweigh the initial costs, as the PMO matures the challenges that are faced in the process should be properly addressed because a mature PMO will help not only in improving overall performance but a predictable delivery model will be created which will help the leadership team to plan future projects.
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