Building Procurement Systems - Literature review Example

Project Management Introduction Project management tools and techniques have been in use for many decades. The primary work of these tools is to automate the process of project development. This is achieved by defining the tasks that have to be carried out in a particular project. Project management techniques yield results only pertaining to a particular project. It does not have a module that can accept changes and modifications. It operates based on a predefined set of procedures and produces the result according to it. This in turn reduces the customer interaction there by affecting the customer satisfaction. To overcome this problem, an open system becomes mandatory. Open systems provide the developers with varied options and allow them to develop a project that is entirely based on client’s requirements and needs. It ensures that modifications are made possible even at the last stage of the development process. Due to this factor, open systems are being implemented in most of the organizations. This paper emphasizes on the fact that open systems are more beneficial and gives space for customer’s ideas and innovation. Project Management Project management has been one of the important aspects of any organization. Project management involves various activities which enable the organization to accomplish the given tasks. It is a tedious task since various components are integrated to form a single unit and to maintain and manage a particular project. (Morris& Pinto, 2004).An organization creates, develops and maintains a project based on the client’s requirements. Once the client’s requirements are received, the project is developed. A project cannot be developed without a well defined set of principles. This is accomplished using project management. Project management is a complete set of techniques and principles that define the way in which a project should be developed. This eases the process of project development and maintenance. These principles are implemented to manage the teams, cost of the project, allocation of resources and the risks that may arise during the project development phase. Project management defines the way in which a project must be developed and proposes certain strategies and planning procedures. (Moore, 2002).The project management procedure is common for any type of project since it is a general guideline to develop projects. It improves the overall performance of the project by implementing the best procedures and aims at minimizing risks. In contrast to the researchers thought, project management helps in better management of the project there by satisfying the customer’s requirements. Since the objectives are defined well in advance, project management tools are used in order to satisfy the user’s requirements. Only when the project management tools and techniques are implemented in a proper manner, the project will be a success. (Myrke &Smith, 2006). Else, the project may fail resulting in a heavy loss for the company. It lies in the hands of the developers to select a proper project management tool that yields more profits to the organization. Project management involves various tasks that must be completed in the order specified in the planning stage of project management. Due to the increase in the competition in the market, the organizations aim at improving their business with the help of new and unique strategies. With the advent of project management tools, it was easier for the companies to achieve their target. When analyzing the project management tools, it is composed of several management strategies and components that end up in helping the organization to accomplish their intended task. Project management has been successful since the tools and techniques have been efficient enough in handling the requests specified by the developers. (Walker, 2007).The opinion about project management differs and it depends on the organization to select a project management tool to develop a project. Researchers have been behind project management and tools and techniques. Though most of them feel that project management does not yield much benefit to the organization, most of the organizations still implement the project management techniques. In spite of various oppositions for project management tools, it continues to be the forerunner in most of the organizations. Even though many researchers specify that these tools do not focus on the needs of the clients, it becomes mandatory for an organization to implement some sort of project management to develop, maintain and deliver a project. (Winch & Kelsley, 2005).The way in which project management is carried out depends on the type of tools and techniques used in the particular project. Tools and Techniques Tools and techniques are a part of project management. These tools are incorporated to make the process of project management an easier task. Since project management involves several levels, these tools are used to assist in each of these levels. These techniques are efficient enough to handle several types of requests and it has the capacity to withstand risks. The efficient working of the project depends on the advantages and unique characteristics of these tools and techniques. There are various types of tools that are used in the project development process. Most of the companies use charts and tables in the process of project management. (Gelbard, 2000).These charts are used to depict the tasks that must be accomplished in order to complete the project. The tasks are listed based on their priority and in the order in which they have to be performed. It includes check lists that enable the developers to find out whether each task is completed on time. Project management tools include gantt charts, project chart and resource charts. These charts exhibit the tasks to be completed and the time duration allotted for each task. The other details include the cost allocated and resources required to complete the tasks. These tools are used to keep track of the developments and changes in the project. It indicates the changes and modifications to be done on the project. Though these tools are of extreme help to the developers, in certain situations they fail to provide the expected results. (Wearne, 2000).These tools and techniques have certain advantages and disadvantages based on which the organizations decide whether they can implement these techniques. According to various surveys, these tools and techniques do not give much importance to customers or users ideas. Since they follow a predefined format, it does not provide an option for the developers to include the clients’ innovative suggestions in the middle of the development. The advantages and disadvantages of project management tools exhibit the qualities of the tools and techniques. Advantages of Project Management Tools Project management tools lend a helping hand to the project developers in implementing the clients’ requirements and creating the project as per their needs.(Murphy, 2007). There are several advantages in using these tools and they are Tools facilitate the development and maintenance of modules and components. Assists in planning, scheduling and allocating resources to modules. Helps in analyzing and maintaining the records. Generates reports on a regular basis. Reminds about the outstanding work. Provides updates on completed tasks. Helps in decision making. Disadvantages Though project management tools exhibit various advantages, there are certain disadvantages which make people hesitate to select a project management tool. They are Tools may require more time to complete certain tasks on a difficult project. Staffs find it difficult to learn and use these tools. Company has to allot funds to train their staffs to use these tools. The project time may get extended if used ineffectively. Not suitable for smaller projects.(Burke, 2000). Does not have an option to include external or ad-hoc ideas. Due to these disadvantages, the companies have second thoughts while selecting a project management tool. Reason to opt for Open-Systems Most of the authors and researchers argue that these tools and techniques have insufficient focus on the needs of clients and stakeholders. The main reason for such argument is the loss of flexibility in these tools. Project management tools concentrate more on predefined tasks and work according to the built-in systems. These tools work on a particular way and it cannot be modified since it is a standalone tool which can be used in a project. The major drawback is that it is not suitable for smaller project as it takes its own time in completing the tasks. These tools are not flexible as they do not allow the developer to make any modifications or include an extra module once the development is started. (Pinto, 1988).Once the requirements are specified, the tool acts accordingly and it does not give room for any further modifications. This acts as the major disadvantage as the clients or stake holders do not have a chance to express their ideas at any later time. Project management tools and techniques are designed in such a way that it can only operate on the tasks that are defined in the early stages of development. The requirements and specifications must be included before starting the development. In certain projects, the involvement of clients plays a major role. The clients are the ones who are going to use it once it is developed. Hence they would require their project to be user friendly and to work in the way they require. Consider a situation where a client requires an additional module and the development of the project has already begun. The project management tools and techniques and tools do not permit the developer to include any module once the development begins. In this situation, the client cannot expect any sort of modification. He has to accept the project developed with the requirements specified at the beginning stage of the process. This clearly proves that project management tools and techniques have insufficient focus on the needs of client and stakeholders. Since it is not flexible to suit the needs of the customer, it takes a back seat when a project is developed. These tools are intended to serve the purpose of developing and helping the organization in creating projects. Apart from this, the tools do not provide any essential help for the organization. Project management tools have been developed in a much complex way and they cannot be modified with any additional modules to operate on a difficult project. Project development is not an easy task; instead it is developed by following a set of steps. They are analysis, planning, development, testing, implementation and maintenance. All these phases must be carried out in an orderly manner so that the project is developed as per the specification. (Rodrigues, 1999). Though project management tools are a part of the development process, they fail to produce the intended results. In this case it is better to opt for other type of systems that provide the required results without much complication. As specified by various researchers and authors, it is better for an organization to develop projects with the help of an open system. This eradicates the problems posed by project management tools and techniques. Open Systems Open systems form an integral part of most of the organizations. From the time open systems were introduced in the market, it has been successful enough in developing projects in almost all types of organizations. It came as a remedy when most of the project management techniques failed to develop customer oriented projects. This was the main reason for the success of open system architecture. (Franks, 1998).The advancement in the information technology has made technological aspects more affordable. The main aim of open systems is to provide customer satisfaction. These systems are flexible enough to include customer’s ideas even during the development phase of the project. This increases the customer delight and ensures that every requirement of the user is met. Open System- How it works? Open system is one which exchanges information with its environment. The exchange of information eases the process of development. These systems are like normal systems that requires input from the user. The main difference is that, it provides an option to the user using which they can include additional information whenever they require. Open systems also exchange feedbacks from the environment in which it works. The next step is, it analyzes the feedback and modifies the internal system according to the modification. (Handy, 1999).It makes sure that the developed system includes these modifications specified by the user. Once the system is changed according to the feedback, information pertaining to the particular feedback is transmitted to the environment. This is done to ensure that the developers involved in the project are aware of the changes. The boundary of an open system is flexible and porous allowing exchange of information at any stage of development. A normal system has rigid boundaries which restrict the developers and clients in their interaction and information exchange. A project is developed to satisfy the customer’s requirements and it must meet the expectations of the user. The organizations must try and implement systems that attain the maximum level of client satisfaction. The outcome of a project decides how well the project has been developed. The outcome must be beneficial to the organization as well as the client for whom the project is developed. Benefits of Open System An open system has various benefits and it has contrasting characteristics when compared to a normal system. The way in which an open system is implemented is completely different from that of a normal system. It includes various other features which a simple system lacks. One of the major differences is that, it provides innovative results as the client can include his own ideas and improvements in the system. Generally a system that assists in project development aims at completing the tasks at the stipulated time. (Johnson & Scholes, 1998).It follows the same execution procedure irrespective of the type and nature of the project. This acts as a drawback in most of the situations. To overcome this, an open system must be installed. Though it executes based on the commands that are defined at the beginning of the project, it has a module that is developed specifically for the purpose of receiving feedbacks. This module acts as the main part of the system there by receiving feedbacks and responding to them. Open system does not make use of similar methods for all types of projects. Instead there are individual methods for each type of project and the module execution is done based on the project’s requirement and the information is updated every time a change is made. Another unique feature of open system is that, it uses a concept called Equifinality. This concept implements two or more ways to accomplish the same task. Instead of using a single method to produce a result, it uses more methods to produce the same result. (Walker, 2007).Hence similar results are achieved using various processes and methods. When compared to normal systems which are often known as closed systems, follows a single method which yields a single result. The result has to be implemented in the next module irrespective of whether it is correct or not. Since changes in an organization happen every now and then, it is mandatory for a system to update for the changes that occur in a specific project. Outcomes of Open System Open systems eases the process of customer relationship management, as the customer can participate in the development process of a project. This minimizes the risk of project failure since the client is involved in each and every stage of project development. The open system offers several choices of hardware and software. This minimizes the work of searching for particular software for a project. (Egan, 1998).It allows the developers to upgrade the software whenever necessary and these minor changes do not incur any cost to the company. The infrastructure can be changed and managed as per the organization’s requirements. Customer interaction forms the major part of the open system and it appreciates the feedback from the customer. The customer satisfaction can be achieved only if the service to the customers is provided in a proper manner. The modules are integrated to form a single unit which eases the compete process of project management. The types of service are seamlessly distributed in the system and they strike a balance between the external environment and internal structure of the system. Most of the literatures specify that project management tools and techniques are not compatible with many projects. All these reflect the negative aspects of the project management techniques. The negative aspects and disadvantages of the project management tools led to open systems.(Packendorff, 1999). Open systems provide a wide range of choices to the developers as well as clients who request for the development of the project. When comparing the other systems that assist in the project development process, open systems are preferred by the companies. This is due to the operational procedures and services provided by the system. Analysis forms the integral part of any system implementation. Though literatures reveal that project management tools do not satisfy the organization’s requirements, they are still being used in some of the companies. (White, 2001).The improvement in the information technology and their advanced features help in easy development of projects irrespective of their complexity. Complex construction forms the part of any company. Construction and development is not an easy task and it requires more analysis and research. When an open system is implemented, an organization can be sure of developing problem free projects. Conclusion There are various types of systems that are used in construction of projects. Projects are developed with the help of systems that provide the necessary facilities. Open systems are well received due to their features that are suitable for construction projects. Customer delight is an integral part of any organization. Client’s involvement ends when a project is scheduled for development, where as in an open system, the customers can express their opinion about the project. Their ideas can be implemented at all phases of a project’s development. Their innovative suggestions are considered when implementing a project and this in turn increases the customer satisfaction leading to the increase in the reputation of an organization. With the growing trends and advancements in most of the organizations, open systems are the one which developers can back on. Due to its numerous advantages; open system continues to be a success in the field of project management. Reference Franks, J., 1998. Building Procurement systems: A Client’s Guide. Berkshire: Addison Wesley Longman Ltd. Handy, C., 1999. Understanding Organizations, 4th Ed. London: Penguin books. Johnson, G. & Scholes, K., 1998. Exploring Corporate Strategy. Harlow: Pearson Education Ltd. Morris, P. & Pinto, G., 2004. The Wiley Guide to Managing Projects. New York: Wiley. Moore, D. R., 2002. Project Management: Designing Effective Organizational Structures in Construction. U.K:Blackwell. Pryke, S. D. & Smyth, H. S.,2006. The Management of Complex Projects: A Relationship Approach U.K: Blackwell Science Ltd. Walker, A., 2007. Project Management in Construction. 5th ed. U.K: Blackwell Publishing. Winch, G. W., 2010. Managing Construction Projects. 2nd ed. U.S.A: Willey Blackwell Ltd. Winch, G. W. & Kelsey, J., 2005. What do Construction Project Planners do?, International Journal of Project Management, 23, pp.141-149 Egan, 1998. Rethinking Construction: The Report of the Construction Task Force. London: Department of Trade. White, D., 2001. Current Practice in Project Management- An Empirical Study. International Journal of Project Management, 20(1), pp.1-11. Packendorff, J., 1999. Inquiring into the Temporary Organization: New Directions for Project Management Research. Scandinavian Journal of Management, 11(4), pp.319-333. Gelbard, R., 2000. Integrating System Analysis and Project Management Tools. International Journal of Project Management, 20(6), pp. 461-468. Pich, M., 2002. On Uncertainty, Ambiguity and Complexity in Project Management. Management Science, [e-journal] 48(8). Abstract only. Available at: Jstor database http://www.jstor.org/pss/822672 [Accessed 27 October 2010]. Wearne, S., 2000. Project Management. International Journal of Project Management, 18(1), pp.7-11. Murphy, A., 2007. Project Management Tools and Techniques. Management Research News, 30(2), pp.153-166. Burke, R., 2000. Project Management. International Project Management Journal, 6(1). Atkinson, R., 1999. Project Management: Cost, Time and Quality. International Journal of Project Management, 17(6), pp.337-342. Pinto, J., 1988. Project Success: Definitions and Measurement Techniques. Project Management Journal, 19(1). pp.67-72. Rodrigues, A., 1999. The Role of System Dynamics in Project Management. International Journal of Project Management, 14(4). pp.213-220. Read More