By William J. Pinkerton
This article deals not just a candid examine the origins, making plans and excution of initiatives but in addition on the strategic considering that are supposed to be happening from the outset giving many examples and in general made blunders in venture administration.
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Extra info for Project management : achieving project bottom-line succe
The start-up dragged on and on for 7 long months before the facility could operate at design capacity. The difference in the two curves is dramatic and, when the curves are viewed in this manner, dollars can be applied to the bars. The amount of revenue “left behind” is a staggering $3,236,306. When will the company get this money back? The answer is— never! This is revenue that should have gone to the bottom line over that 7-month period, but failed to show up. This is where the real losses are; the original immediate losses pale by comparison.
Care must be taken, however, that an “informed assumption” based on credible supporting trends isn’t a mask for an emotional desire for a new facility. , projects that are intended to improve efficiency or decrease operating costs. It is in these areas where many managers and project teams run into trouble. These projects are almost always undertaken in an operating facility and are usually the result of one person’s idea of how best to solve a perceived problem or of how the operation might be run, in his or her opinion, more smoothly or efficiently.
Because these items hold intangible benefits, as opposed to changes that show up as finite changes to drawings and equipment. Nobody wants to give up any “bells or whistles” in the new design. After all, a cut in a risk alleviation factor may not hurt—it probably won’t happen anyway. ) As can be seen from the budget depicted in Fig. 6, $473,600 had been allocated to the off-site, or vendor shop, testing and inspection of equipment and materials. This was to be done in order to prevent defective equipment or materials from arriving at site where the late discovery of a defect or malfunctioning equipment would almost certainly result in delay to the project schedule.