PMbasics: Project preparation

Project-oriented companies are flexible organizations (variable structures) which are using projects to carry out the business processes and achieve strategic goals. As each project has its own purpose and goals it is important to state the difference between the two. Purpose relates to the solution of the problem, realization of ideas or meeting the needs (eg. Day care) while the objectives relate to the change of conditions and often manifest in commercial or financial results (eg, profit, new business partners).

Projects are often complex and should be divided to the phases, and the classical division would be: conceiving (from the idea to the written form of the project task), defining (production and procurement documentation, plans and ultimately the license), execution (implementation of the project, delivery to the client ), usage period (certain guarantees), while the minimum division is preparation and execution. It is vital to understand that the change of phase changes the possibility to influence the design and management (typically this possibility decreases and the cost of intervention in the project increases).

Project’s purpose and objectives are an important part of project management and are an indispensable part of every serious and successful project.

Here is an example 🙂

Construction company is to build residential and office building for sale to unknown customers and has the role of the investor and the contractor on the project. The purpose of the project company has set during creating strategy (apartments for upper middle class and spaces for small businesses) and they chose the project manager and project team. Project manager develops project’s objectives (quality space, projected costs and profits), and divide the project into 4 phases which are applicable to the construction project: conceiving (size and appearance of the building), defining (preliminary and final design), execution (determining resources and tasks) and usage period (2 years guarantee for the building). Such project’s management and planning will ensure development of the company and contribute to successful achievement of the objectives and completion of the project.It’ll also open possibilities for new projects.

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