Benefits of Employing an Independent Project Manager - Essay Example

The Benefit of Employing an Independent Project Manager (a) Project management is a practice that incorporates various management traits in an effort to identify and interconnect the processes involved in the provision of goods and at times services. The chain flows from the initial generator of the raw materials to the final person to benefit from the product, that is, the customer. In any business practice, risks are some of the most important aspects to recognize and the management of these threats helps in making the flow of work better and that of the products faster and thus the importance of carrying out research on how to best manage them. The research identifies three aspects of project management ought to receive a high amount of attention. One of these is risk identification the other aspect to consider is that of risk assessment and then there is project management. Independent Procurement officers are important as they have the responsibility of ensuring that particular risks involved in the supply chain do not happen. Occurrence of risks is one of the leading causes of business failure over the past few years and it is the major reason why an ineffective procurement officer ought to be fired. This is happens because of the poor management of the risks by the responsible teams. Managing risk in project management is very vital for the success of any company project from the fact that in the unfortunate case of one of the risks occurring, all levels of the supply chain are affected, regardless of the point at which the product was during the risk occurrence (Conroe, 2008, 63). It is thus the duty of every player in the chain to ensure that recognition and evaluation of all risks takes place in an effort to put into place the important strategies to evade the risk. Moreover, there ought to be the identification of the two key classes of project risks for the purpose of risk assessment. The issue at hand has had people always take project management classes in an effort to solve the various arising matters that may have the company in a position to have a risk occurring. Research has shown that companies that do not take the steps end up regretting and consequently having a poor reputation due to customer dissatisfaction. Gaps in the research are in that it has been impossible to find cases that show immediate resolution of a risk-taking place unlike the many present cases of risk occurrence. Over the years, project management has had its fair share of changes providing the need of every business to stay keen on its goals in this highly competitive 21st century. The study shows how the external and internal risks are vital for identification in any company seeking to succeed and how the procurement officer assists in the resolution of various problems. (Wagner & Bode, 2009, 138). This is due to fact that risks not only present themselves from outside an organization but also from the interior. Internal risks are other factors that the research portrays for the precise recognition of all the risks involved. This brings to attention the fact that many of the contemporary business people tend to ignore the fact that interior risks are more dangerous than exterior ones and thus this acts as a major cause of failure. Identification of the various internal practices that a company takes is important, and the review and scrutiny of each is vital in that it acknowledges internal risks associated with the planning of the product flow from the producer, control and mitigation that may pose as negligible but very crucial. After clear identification of the various existing risks, the following step is the risk assessment stage. There are two major types of risk assessment, and these include the quantitative and the qualitative project management procedures. Indulgence in these key properties is very important in Project management research. Both of the procedures have their importance and exclusion of any of them might have excessive repercussions on a company (Berman & Putu, 2012, 843). This is because each one of them has its major points that work towards achieving a fully functioning risk assessment process. An independent procurement officer is important because he also carries out Quantitative project management is the type of management whereby the manager or the responsible personnel identifies various aspects of the risk through calculations and the use of diagrams to assist in the process of resolution (George & Lisa, 2004, 400). The research gets deep into this type of management with the use of various examples and analysis charts for further understanding of project management. The study also focuses on the qualitative aspect of project management that involves the review of the various theoretical notions that often bring about the occurrence of risks and consequently try to analyze an example of a company that undergoes this with its provided supply chain. Quantitative risk management is the type of management whereby the project manager or the responsible personnel identifies various aspects of the risk through calculations and the use of diagrams to assist in the process of resolution (George & Lisa, 2004, 400). The research gets deep into this type of management with the use of various examples and analysis charts for further understanding of risk management. The study also focuses on the qualitative aspect of risk management that involves the review of the various theoretical notions that often bring about the occurrence of risks and consequently try to analyze an example of a company that undergoes this with its provided process. The study also seeks to identify the given five major steps involved in the risk assessment process. This is because for the success of any given policy in an institution, the management team of the company has to ensure that it is free from any previous risk, thus ensuring a smooth flow of workload. The first step that a company should take towards risk assessment is identifying the hazard (Martin & Hau, 2004, 391). In risk identification mentioned earlier, a general understanding of the risk is performed; however, the risk assessment stage breaks down the hazard further through Hazard Identification. After a deeper exploration of the hazard, the paper discusses the second step, which involves the understanding of the various people that are directly involved with the risk and thus in the way of trouble. The third step towards quality risk assessment involves evaluation of the particular risks and understanding of the precautions that the people at various stages of the chain or the company as a whole should take. The paper introduces the forth step of risk assessment, which involves the recording of the various findings that the initial three steps brought to attention. This step is carried out with the use of tables from the example given previously. The final step that the paper covers is the review of the assessment done and updating various stages of the assessment that the company may find to require changing. The study seeks to explain the concept of project management fully in this last part of the triangle that forms basic Project management in the Supply Chain. For effective project management, it is important to comprehend the six major principles of project management (Manuj & Mentzer, 2008, 219). Understanding these principles is important in that it places the company evaluating the risks at a higher point in terms of chances of successful risk elimination. The study explores the principles deeply and analysis each of them in a rather extended manner. Highlighting the various principles in project management, there is the first one that states that project management is important for the creation and the protection of value (Marks, 2011, 79). The second principle recognizes project management as a fundamental part of the activities that take place in an organization. There is the principle that states that project management of all stages of the supply chain is an influential aspect of the decision making process in any successful organization. Another principle that the paper seeks to analyze is one stating that project management is integral for the resolution of uncertainty issues with regard to the goals of an organization. Understanding that project management is dynamic and interactive depending on the stage of the chain also comes in as a principle that the research indulges in explaining. Risk communication and business continuity are two major aspects considered important in the process of project management. The paper seeks to identify the relation between these two and other sub-branches of project management while giving clear examples in an effort to comprehend the concepts further. Having a standard company to analyze is important in that it assists in showing the reality of the matter at hand that can act as a source of inspiration and other companies can understand the importance of project management (Gillespie, 2011, 43). The manner went around in carrying out research in this field involves paying attention to the progress that the companies have had over the past ten years. This is important in that one is able to identify the changes that the company has experienced after the risk unfortunately gets to it. Moreover, comparing the strides that the company has taken in the various sectors against other companies has assisted in that there is an understanding of the steps that one should take or not with regard to project management in a supply chain (Cleaver, 2011, 57). Many standard forms of contracts exist to assist the procurement manager in his activities. One of the most common of these is the standard building contract. Another major type of contract to understand is the Design and Build contract. These two contracts are very important in determination of the manner through which to manage a particular activity while still observing the supply chain for the various important contracts (Lipsey, 2012, 65). (b) An important proposal management contract to come up with is regarding the management of the new greenhouse building that the client intends on constructing. The best manner to manage the project is incorporating effective management traits that show the seriousness required for the running of the project. I intend on managing the supply chain for the basic raw materials required for the construction to commence. The contract should also show that I am the lead contractor in the project and thus anyone else that the client wishes to employ will have to work under my authority. (c) A standard form contract is a contract that has the rules and regulation set in a fixed manner that there is no possibility of the terms changing once the agreement is made. The provisions provided in a standard form contract have it that once a particular project is completed, the contractor ought to receive payment from the client at the initially set date. Just as there is no changing of the rules, the same exists in the case of payment dates. It ought to take place in time and effectively (Boakes, 2009, 65). Project management is a concept that has existed in the corporate world over the years. However, few companies or, rather, few people fully understand the importance of this activity. Project management is tied to different aspects of a product supply chain and the organization as a whole and thus determines the fate of the company. A deep analysis of the three key pillars of project management is not only important for the understanding of the field of study, but also for decision-making procedures that companies take. References Adams, R. 2010. Management in the 21st century, Journal of Environmental Psychology. 8 (73), 467-481. 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Retrieved on 8th November 2012 from Martin, C., & Hau, L. 2004. Mitigating Supply Chain Risk through Improved Confidence. International Journal of Physical Distribution & Logistics Management, 34(5), 388 – 396. Sloman, J. 2011. Economics and the business environment. New Jersey: FT Prentice Hall. Sloman, J. 2013. Essentials of Economics (6th ed) New Jersey: FT Prentice Hall. Wagner, S., & Bode, C. 2009. Managing Projects and Security: The Safeguard of Long Term Success for Businesses. New York: McGFraw Hill Publishers. Read More