Project Management: Scheduling, Resources, and Budgeting

This document explores the fundamental concepts of project management, focusing on scheduling, resource allocation, and budgeting. It delves into the importance of project planning, outlining key techniques like the Critical Path Method (CPM), PERT, and Design Structure Matrix (DSM) for effective scheduling. The document also emphasizes the significance of resource identification and allocation, highlighting the role of responsibility assignment matrices (RACI) in ensuring efficient resource utilization. Furthermore, it discusses the crucial aspects of budgeting, including cost estimation, resource availability, and the preparation of various budgets such as cash and overhead budgets. The document aims to provide a comprehensive understanding of these core project management elements, equipping readers with the knowledge to effectively manage projects and achieve desired outcomes.

MNG00785Project management
1

Contents
Introduction...........................................................................................................................................3
Topic 5: Scheduling Project...................................................................................................................4
Topic 6: Resource and Budgeting.........................................................................................................6
References:............................................................................................................................................7
2

Introduction
Project management is a historical concept. Project management concerned about the timely
deliveries of project along with efficient utilisation of money and other resources. Project
management means planning the different phases of the project so that it can complete on
time and deliver the expected outcomes. Project management increases the value of
organisation through efficient use of human capital and financial resources. Before starting
the project management process scope of the project need to be determined by the manager.
Project management process initiates with identifying the activities involved in the project.
Project manager can divide the whole project into Mile stones which inform about
percentage completion of the project. To achieve milestone, number of activities are required
to be performed. The next step is to built work break down structure and set a schedule for
activities. Work break down structure also provides information about dependency of
activities. After scheduling the activities project manager starts determining the resources
important for implementation of projects and preparation of budget for management of funds
and controlling the cost associated with the project. Earned value management is also a part
of project management which provides the information regarding the future value of present
investment and information regarding the cash inflow from the project. Risk management and
planning is the last stage of project management process. Risk are those uncertainties which
may have some positive or negative impact on the project in the coming future period while
implementation phase of the project. Risk identification helps in managing those factors
which are having negative impact on the project completion. Project manager also
implements quality management tools for maintaining the quality and achieve the outcome as
per expectations. Project manager can implement some change management techniques in
order to deal with the uncertainties and complete the project on time.
3

Topic 5: Scheduling Project
Project scheduling is a tool which communicates about the time period required for
completing a project. Project schedule provides information regarding the important activities
which need to be implemented in order to accomplish the project. According to Razaque, et.
al., (2012), manager is the only responsible personal for accomplishing the project within pre-
planned phase or time period. While scheduling the project two things must be considered
project duration and probability of occurrence of uncertainty during the implementation of
project. For scheduling the project, project time management techniques are adopted by
managers, these techniques include Critical Path Method (CPM), PERT and Design structure
matrix (DSM).
Figure: Example of WBS involved in project scheduling
Source: (Grey Campus, 2018)
While scheduling the project, manager has considered the Work break down structure
developed during the planning phase of the project. Work break down structure includes
multiple activities important to implement the project, description of predecessor and
4

successor activities in order to identify dependencies of the activities involved in project,
duration of each activity and explanation of work which will go to perform during the
implementation of project (Razaque, et. al., 2012).
The important benefit from project scheduling involves that it helps in completion of project
within the period specified. Project schedules can also be used for risk identification and
management. Project scheduling provide helps in determining the multiple resources required
to complete the project and estimates the quantity required for the whole project. The goal of
maximum utilisation of resources can be achieved through project scheduling. The time
period in project scheduling is depending upon the nature of project (Razaque, et. al., 2012).
Estimates developed during the scheduling activities of the project help in redirecting the
safety measures so that potential goals and objectives of the project can be achieved securely
and safely. The overall discussion involves steps of project scheduling and benefits from the
activities scheduled in the project.
5

Topic 6: Resource and Budgeting
The next phase of project scheduling is preparation of budget and allocation of resources
related to the project. Project scheduling helps in determining the requirement of resources at
each stage of implementation phase of the project. Resources involved human resources, raw
material, machinery, spare parts, vehicles and technology which are necessary for
implementation of the project. It is must for the project manager to determine the quantity
required for running and completing the project effectively and efficiently (Solís-Carcaño, et.
al., 2015). Project manager is having many techniques for estimating resources involved in
every activity of project. Advise of experts who are having experience of handling such
projects, can be taken or project manager can use project management software i.e. MS
project for determining the requirement of resources during the project. After determining
the resources their allocation to activities will take place. Allocation of resources on each
activity can be presented through responsibility assignment matrix (RACI) chart.
Another step in project planning is Budgeting. There are two major objectives of budgets first
is determining the cost of completing the project and second is making arrangement of
project sponsor agencies which are involving in funding the project. The initial stage of
budget preparation involved determining the availability of resources (Solís-Carcaño, et. al.,
2015). If all the resources are easily available then it may be possible that the project will
complete at a lower cost. If the accessibility of the resources is not possible than the cost
arises in arrangement of resources is quite high which will impact the overall cost of the
project. Budgeting involves preparation of multiple budgets such as cash budget, overhead
budget etc. It is better for manager to prepare the budget considering the present value factor
so that fund can be arranged from the sponsors as per the requirements.
6

References:
 Razaque, A., Bach, C. and Alotaibi, A., 2012, ‘Fostering project scheduling and-
controlling risk management’, International Journal of Business and Social Science,
pp. 118-127. Solís-Carcaño, R.G., Corona-Suárez, G.A. and García-Ibarra, A.J., 2015, ‘The Use of
Project Time Management Processes and the Schedule Performance of Construction
Projects in Mexico’, Journal of Construction Engineering, 2015, pp. 1-10.
7