The success of a project depends on factors like integration, scope, quality etc. Modern day project management is constantly evolving but time and budget are still the solid foundation of project management. However, we will leave the rest of the factors to some other blog and discuss how the two equally crucial yet demanding factors, time and money, affect the outcome. Time and money are not only inter-connected but also very important in what is termed as the “planning” stage of project management.
Time and budget constraints have a positive impact on project management because the restrictions of both increase productivity and thus a higher success rate. Restrictions of both keep the wheel rotating and do not let complacent attitude become a part of the work and employees. The major task for the project team is to work efficiently while also meeting the time and budget constraints.
A project manager must first understand the time and budget constraints and see how it applies to a project. The project is then planned and managed accordingly. While the cost allocated can be adjusted, fluctuations in time are rarely possible unless the due date is moved ahead.
Cost:
The budget is not just the amount of money needed; it is a reflection of the work of the project and the resources required. A comprehensive budget takes into account how funds will be utilized throughout the course of the project. Generally, a project’s expenditures show an increase when resources utilized are increased.
The monetary commitment of a project is dependent on various factors. The factors include the cost of labour, services and materials used in the process, and other overhead costs. The budget allocated might show an increase as each stage of execution is elaborated.
Every project essentially has costs that might be fixed or varying or both. The project manager must know how to control costs throughout the course as per the requirements and quality of the work. The budget is estimated by evaluating historic data, average vendor and resource costs.
Time:
Time constraint for a project is basically the time allocated to the project from beginning to end, i.e. till the work is delivered. Time can be assigned only after being thoroughly aware of the work that project requires. To be more precise, the project is first broken down into components and then into sub-components to estimate the time that would be needed for the completion of the project.
Time management is vital and can be achieved by devising a timeline that mentions the duration that each component of the project should take. The schedule must be properly planned and constantly compared to the on-going project so as to clearly judge the progress of the project. However, it is also important to remember that time management is required at an individual level as well. Team work and support enhances both creativity and productivity by keeping the spark of motivation and dedication alive.
Constraints of time and money are vital to project management because both these factors determine the quality of the work produced and delivered. A project manager must devise a budget and schedule that all the employees agree on.
