A Pivotal Role of the Project Operation Tools - Research Paper Example

Developing Marketing Capability 2 Table of Contents Introduction 3 Project Management Tools 4 Program Evaluation and Review Technique (PERT) 4 Critical Path Analysis (CPA) 5 Gantt Charts 6 Risk Analysis Tool 7 Information and Processes Required for Each Project Management Tool and their Importance to the Marketers 7 Information and Processes Required for PERT and its Effectiveness to the Marketers 7 Information and Processes Required for CPA and its Effectiveness to the Marketers 8 Information and Processes Required for Gantt Charts and its Effectiveness to the Marketers 10 Information and Processes Required for Risk Analysis Tool and its Effectiveness to the Marketers 11 How Businesses Apply and Use Project Management Tools (Example of Tesco and Sainsbury’s) 12 Project Management Tools Practiced by Tesco 13 Project Management Tools Practiced by Sainsbury’s 14 Conclusion 17 References 18 Appendix 22 A. Gantt Chart (Tesco) 22 B. Risk Analysis Tool (Sainsbury’s) 23 Introduction The organisations in the present day context are highly focused on developing and managing marketing projects which can facilitate them to clearly identify the appropriate business strategies to accomplish their desired business objectives. Moreover, an effective project management initiative can also facilitate an organisation to achieve competitive advantages which can lead to ensure dominant position of the organisation in the fiercely competitive marketplace (Haynes, 2002). In relation to the present competitive business environment, the organisations frequently tend to execute effective project management tools such as Programme Evaluation and Review Technique (PERT), Critical Path Analysis (CPA), Gantt Charts and Risk Analysis Tools in order to efficiently manage their projects. The organisations in the present business world are significantly obtaining major benefits through executing different project management tools in various operational activities of the organisation. An effective project management tool can be advantageous in terms of execution and delegation of the roles and responsibilities to easily accomplish various tasks. It can also help an organisation to prepare effective schedules and a sequence of the timings concerning different tasks of the projects’ undertaken. Moreover, it also enables to advance resource preparation along with providing efficiency in terms of achieving better control of the overall course of actions within the project (Kendrick, 2010). Emphasising upon various advantageous factors and roles of different project management tools, the primary objective of this report is to reveal the significance of different project management tools for organisational efficiency. Moreover, the discussion of this report will also encompass the information and processes required for each project management tool and how they can help the marketers functioning in the current business organisations. Project Management Tools In accordance with the various researches and analyses, projects can be described as a sequence of certain effective and associated functions and objectives which tend to generate distinctive outcomes. For instance, a marketing project involves different detailed functions in accordance with the required costs, time as well as relevant resources. Therefore, in order to obtain desired objectives of the plan, it is important to develop an effective strategic arrangement which can enable to effectively design each activity of the project. In this regard, the project management tools essentially render adequate support for an organisation to successfully accomplish any project (Gray, 1998). A few of the major and widely used project management tools have been illustrated in the following discussion: Program Evaluation and Review Technique (PERT) Program Evaluation and Review Technique (PERT) can be regarded as one of the most influential project management tools for an organisation to prepare effective marketing projects. The tools provide adequate support in a marketing project in terms of identifying interconnected as well as associated functions and events (McGraw-Hill Education, n.d.). Moreover, PERT is frequently practiced by the modern organisations to effectively manage and arrange complex as well as large activities of a marketing project. In this context, the tool is found to be effective for identifying the actual time and level of interdependency of each of the project activities. It is observed that marketing projects involve a range of functions and tasks which can have a considerable impact on the overall project. However, the effective practice of PERT can enable the project manager to effectively address various critical situations which can hinder the overall functions of the project (Gentry, 1979). Critical Path Analysis (CPA) Critical Path Analysis (CPA) can also be considered as an important marketing project management tool which offers various types of benefits to accomplish the project objectives. The technique significantly provides effective support to the project managers to prepare an effective schedule of the various activities along with their required time. The tool also ensures to act as a major technique for the managers to schedule or arrange the required resources of the project. The major benefit of CPA tool is that it helps the managers to establish and to make experiment with the overall project plan for ensuring its various strengths which can lead to accomplish the project activities in a more efficient way. CPA significantly recognises and prioritises project activities and schedules in an effective operational sequence in order to facilitate in easily achieving the project objectives. The method also ensures to recognise the activities which tend to consume longer period of time due to their inherent complexities as well as their required resource availability (Anderson & Hales, 1986). In relation to identifying the major differences amid the various project management tools, it has been recognised that CPA significantly tends to direct the sequence of tasks and activities of the marketing projects in accordance with the complexities and time consuming nature of the project activities. Gantt Charts Gantt charts involve the process of graphically representing the current status and performance of various activities of a project. The technique significantly represents the progress of different activities performed within a project in a more convenient, precise and easier way to the management. Various dependencies as well as functions of the project are visually demonstrated which enables to reveal the overall time that is required in each activity. Moreover, it also facilitates the organisations to track the overall processing functions of the project activities in a more manageable approach. In relation to the marketing projects, the tasks and functions of each project activity are quite complex as well as interdependent to the other tasks of the project. Therefore, an effective use of Gantt chart can considerably enable the organisational marketers to graphically represent various functions of the project management (Open Office.Org, 2005). The Gantt charts in the marketing projects can differ from other project management tools due to its convenience in representing different tasks through an easy graphical illustration. In addition, the tool also enables to design as well as effectively distribute the resources which are considerably imperative for any marketing project (Passenheim, 2009). Risk Analysis Tool In order to successfully accomplish the project objectives, the managers of any market project must need to assess and manage different types of risks in various activities of the project. Risk analysis tool enables the project managers to recognise different types of risks inherent within the project functions and events along with enabling to address them in an efficient manner. It significantly offers a valuable framework to the project managers to identify the activities which can generate different types of risks. The risk analysis tool in the project management facilitates the managers to prioritise various risk factors in accordance with their impacts as well as their possibilities in the project events (Duffey & Van Dorp, n.d.). Information and Processes Required for Each Project Management Tool and their Importance to the Marketers Information and Processes Required for PERT and its Effectiveness to the Marketers The marketers in the present business world often tend to design PERT charts in case of different and specific events of the marketing projects. PERT chart can be considered as a network model which enables the marketers to randomly select the project activities in accordance with their completion time. The tool possesses the potential in order to reduce both the costs as well as the time required in the project activities. In general, it constitutes significant steps that are required to accomplish an effective implementation of PERT for the project management process. The steps or procedures and information involved in PERT are provided as follows: Recognise the precise activities as well as milestones of the project Establish appropriate sequence of the project activities and events Build an efficient network diagram Estimate cost and time to accomplish each activity of the project Set up the critical path of the project activities Develop PERT chart to improve the project activities Source: (Mobley, 2001) According to the above required processes of PERT, it can be stated that the tool can be effective for the marketers in terms of planning and decision making activities of their marketing projects. The PERT chart provides substantial opportunities to the potential marketers to manage and to organise the marketing activities and events through recognising its required steps and processes. Through implementing an effective PERT chart of the marketing projects, the marketers can recognise the potentials as well as uncertain outcomes associated with each activity of the marketing projects (United Nations Institute for Training and Research, 2004). Information and Processes Required for CPA and its Effectiveness to the Marketers CPA can also be identified as a widely used project management tool for the marketers. The tool provides substantial support to the organisations in terms of obtaining better control of the activities executed in the marketing projects. In order to recognise the major steps involved in CPA, it is recognised that the method signifies various events and activities of the project in a network basis. In this process, the activities are portrayed through a network model which further ensures to demonstrate the activities as per their required time of completion. In order to develop or generate an effective CPA tool, the marketers must need to comply with certain important processes. A few of the major processes of generating CPA tool have been identified as follows: Specifying individual activities of the project Determining the chain of the project activities along with events Establishing a network diagram Estimating conclusion time of each activity or event of the project, and Identifying critical path of the overall process Source: (Santiago & Magallon, 2009) Information and Processes Required for Gantt Charts and its Effectiveness to the Marketers Gantt chart in the project management process can further be identified as a crucial tool for the modern organisations in order to make schedule of its range of activities within the marketing projects. In relation to marketing projects, the marketers tend to implement Gantt chart for their various marketing project related events and activities which facilitate them to successfully accomplish the overall objectives. Gantt chart involves a simple process that is required to schedule different activities and events of the marketing project. Primarily, Gantt chart constitutes a simple structure of steps that are required to comprehensively complete a marketing project. The fundamental steps involved in Gantt chart have been provided hereunder: Establishing different project activities and events Gathering all project related information and their required functions Designing activities and events in accordance with their estimated time Building timelines for each activity that is to be performed Designing bars for each activity in different colours Evaluating dependencies between the activities Source: (Stutely, 2002) Through an effective implementation of Gantt chart in the marketing projects, the marketers can easily recognise the major milestones and their estimated completion time. The milestones in the marketing projects are demonstrated by Gantt charts which further enable the marketers to prepare a progress report and provide a way of planning their range of marketing activities (Durfee, 2008). Information and Processes Required for Risk Analysis Tool and its Effectiveness to the Marketers Contextually, the risk analysis tool is also a widely used project management tool which is executed by a majority of marketers to effectively accomplish their marketing projects. The tool helps the marketers to effectively obtain a better control of the overall marketing project through avoiding various possible constraints which can hinder the process. In order to identify the major steps involved in risk analysis tool, it can be observed that the model incorporates major processes that can facilitate the marketers to avoid various unwanted risks within the project. A few of the major steps involved in terms of developing an effective risk analysis tool for marketing projects have been mentioned as follows: Identifying and categorising different possible threats in each activity of the project Rating possible threats in accordance with their extent of impact Estimating possible impacts caused by the risk factors Managing risks through identifying adequate measures Preparing a contingency plan especially for the risk oriented project activities Reviewing frequently the project activities Source: (White & Fortune, 2002) In relation to successfully accomplish the desired objectives of the marketing projects, the marketers of the present business world are highly focused on executing different risk analysis tools in order to mitigate various uninvited risk factors within the project activities. Moreover, the marketers can also identify and manage risks through practicing the use of risk analysis tools which further ensure to minimise potential impacts from different risk factors within the marketing projects (Norris & et. al., 2000). How Businesses Apply and Use Project Management Tools (Example of Tesco and Sainsbury’s) Project management can be considered as one of the major management paradigms, which enables the business organisations to effectively and efficiently achieve their business goals within the constantly changing phase of the business environment. An effective use of project management tools facilitates the organisations to execute various business competencies to effectively handle different emerging uncertainties, risks along with the pressure of its competitors within the existing market (Laureate Online Education, 2010). In relation to identify the project management tools that are implemented by the present business organisations, the following discussion reveals the practices of Tesco and Sainsbury’s in their global business operations. Project Management Tools Practiced by Tesco Tesco is one of the leading retailing chains across the world which incorporates a large number of business operations with regard to grocery items and general merchandise. The organisation operates in 14 global countries through its wide network of subsidiaries (Tesco, 2012). The organisation is further observed to be frequently engaged in different marketing projects across the diverse regions in the globe. Therefore, it incorporates superior project management tools, which ensures to effectively accomplish the organisational objectives. In this regard, it can firmly be observed that the project management initiatives of Tesco incorporate a wide range of activities in its overall project lifecycle stage. Contextually, the business strategies of Tesco can be identified as the major potential factor which enables it to obtain a better control of its range of project management operations. Planning Stage In general, the project lifecycle stages are significantly identified as the programming phase, identification, formulation, financing, implementation as well as evaluation phase (Central Finance & Contracts Unit, 1993). In various observations of the project management initiatives of Tesco, it has been recognised that the organisation tends to execute effective planning phase in relation to its undertaken projects which ensures to generate effective strategies and make required decisions concerning the investment on workforce, financial activities as well as on necessary strategic capabilities (Central Finance & Contracts Unit, 1993). Time Estimation of the Projects Estimation of time of the overall project is one of the major strategic decisions of Tesco in terms of preparing any project management plan. The organisation tends to control its range of activities performed in the marketing projects in an effective way which enables it to obtain better management of the overall project. Therefore, the retail giant (i.e. Tesco) is likely to prioritise on the completion time of each activity performed in its marketing projects. The effective utilisation of Gantt chart can be observed within the project management initiatives of Tesco. The Gantt chart of Tesco (Refer to Appendix A) involves a large number of elements in the company’s marketing projects. Moreover, the Gantt chart of the undertaken projects by the organisation further reveals the way of effectively utilising the estimated time required in each task of the marketing projects. Project Management Tools Practiced by Sainsbury’s In the similar context, it is observed that Sainsbury’s, a well-known supermarket and convenient store chain also incorporates effective project management tools in terms of accomplishing its range of marketing projects. According to the present day context, Sainsbury’s operates more than 1000 of its supermarkets and convenient stores across the different regions of the world (J Sainsbury plc, 2013). In this regard, it can be observed that the organisation considerably executes effective project management tools in terms of managing its broad range of supply chain management initiatives. Sainsbury’s accomplishes an effective risk analysis tool in terms of successfully managing its supply chain activities (Refer to Appendix B) (J Sainsbury plc, 2013). Design of Sainsbury’s Supply Chain Management Activities The increasing competitiveness of the global organisations has made the supply chain management (SCM) process more complicated and effective through which a firm can obtain competitive advantages. Moreover, an effective SCM approach can also facilitate the organisation to effectively manage its different operational processes ranging from raw material processing to delivering products to the ultimate users. Principally, the SCM approach considerably involves five key areas such as production, inventory, location, transportation as well as information through which the ultimate performance of an organisation can be ascertained within the market (Devetak & et. al., 2010). The SCM approach encompasses major elements through which Sainsbury’s performs its business more efficiently. Moreover, the company takes adequate risk assessment initiatives while performing its range of SCM activities for its large network of supermarkets and convenient stores located in different global nations. Risk Analysis Tool Executed in the Sainsbury’s SCM Projects According to the present SCM activities of Sainsbury’s, it can be observed that the organisation involves a wide range of local suppliers, dealers and distributors in each nation where it operates. Moreover, the organisation also engages a large assortment of international suppliers which enables the company to efficiently perform its business operations in different global geographical locations. Therefore, it tends to evaluate effective risk management tools in terms of efficiently accomplishing its broad range of SCM functions. The risk management tools provide an extensive support to the organisation to successfully transfer diverse range of products and raw materials from different global and local suppliers. Moreover, the tool also ensures to mitigate various unwanted risks inherent in its SCM activities and enables to provide various contingency plans to mitigate or develop SCM strategies for the organisation. In addition the risk assessment tools in relation to SCM strategies also offer substantial support to Sainsbury’s in terms of minimising cost and time while performing its SCM activities (J Sainsbury plc, 2013). Conclusion From the overall assessment made, it has been recognised that the project management tools play a pivotal role for the organisations through rendering their range of influential benefits. An effective and well-built project management tool can enable an organisation to successfully accomplish different activities performed in the organisational projects. It involves a range of beneficial aspects including the integration of the project activities, scheduling of the events in accordance with their nature along with helping to estimate the required time and cost to accomplish each task of project management. In this discussion, various project management tools such as PERT, CPA, Gantt Charts as well as risk analysis tool and their significances to the marketers have been comprehensively discussed. Through applying these project management tools, the organisations in the present day context can obtain a better control of their varied business activities and moreover the tools can also facilitate to mitigate different obstacles and identify their solutions. Moreover, the organisations can also gain substantial capabilities to efficiently manage different organisational activities such as make financial projections, manage activity scheduling along with identifying the scopes and risks through effectively integrating these project management tools in their business operations. References Anderson, E. B. & Hales, R. S., 1986. Critical Path Method Applied to Research Project Planning: Fire Economics Evaluation System (FEES). United States Department of Agriculture. [Online] Available at: http://www.cfcu.gov.tr/SPOs/TOOLs/PCM_Training_Handbook.pdf [Accessed March 24, 2013]. Central Finance & Contracts Unit, 1993. Project Cycle Management Training Handbook. Training Action for Project Cycle Management. [Online] Available at: http://www.me.umn.edu/courses/me2011/handouts/proj_planning.pdf [Accessed March 24, 2013]. Devetak, I. & et. al., 2010. The Role of Qualitative Research in Science Education. 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[Online] Available at: http://www.tescoplc.com/files/reports/ar2012/files/pdf/tesco_annual_report_2012.pdf [Accessed March 24, 2013]. United Nations Institute for Training and Research, 2004. Developing a Gantt and PERT Chart. Publications. [Online] Available at: http://www2.unitar.org/cwm/publications/cw/ap/developing_a_gantt_and_pert_chart_11_apr_05_.pdf [Accessed March 24, 2013]. White, D. & Fortune, J., 2002. Current Practice in Project Management. International Journal of Project Management, Vol. 20, pp. 1-11. Appendix A. Gantt Chart (Tesco) B. Risk Analysis Tool (Sainsbury’s) Read More