Thursday 2 December 2021

What to Do? if Project Management going over budget?

We analyze the project management triangle according to the cost as one of the edges, if always over, then there may be several reasons:requires time or scope compression and has to sacrifice costs to maintain project quality.project quality requirements continue to push up, leading to higher costs.

Cost estimates there are serious problems and the cost is always underestimated.if that's the first reason, you need to know why you constantly need to compress time or range.

Is there no plan in place when the project is declared? or

Is someone deliberately satisfying their own interests to force time compression?

Who will bear the cost?

if this is the second reason, then you need to know why quality requirements are constantly being pushed up?

Who will bear the cost?if this is the third reason, it is recommended to change the project budget directly!

all in all, it's about finding the problem point and making the corresponding problem point responsible for the cost overruns (of course, i think there's a good chance that this person has a lot of power and constantly repudiations responsibility).

Cost overruns are the result, not the cause. do not find out why, the so-called perfect project management system and cost management are empty talk.

Project management itself belongs to the "engineering management" category, because project management involves engineering expertise, so project management is actually professional and technical,management and the combination of economics, because of the large amount of data, data correlation and control is more complex, so "engineering management" usually requires students to be proficient in the use of the engineering management information system project management.

Project management classification:

  • Information technology research and development management: is the development of various software, hardware solutions, customization, iterative upgrade of the whole process management;
  • Project management: a variety of civil engineering, water conservancy projects, power projects, industrial projects and so on;
  • Investment project management: should belong to the financial investment section of the control, biased towards risk control.

Take project management as an example, the whole process involves a wide range, long cycle, related personnel to cooperate with each other, the middle involves a large number of material recruitment contract management, on-site material delivery management, inbound material quality inspection, production process and finished product inspection, material consumption, finished product reporting party a for measurement and acceptance, and then there are various financial settlement, the whole project implementation process also involves a large number of documentation and construction logs. Such complex management content if by manual estimation to crash a lot of people, so engineering management we will use professional project management software to manage.

Introduction: engineering project management model integration

Because different types of engineering projects use different management methods and strategies, they are developed first by project type standard model the integrated construction model is formed according to the actual situation of a single project, and the new construction model eliminates the inconsistency of each project, reduces duplication between projects, increases the transparency in the process, and establishes an automatic and scalable project execution process and method. that's the point cost-effective, provisioning, schedule planning, process resource centralization management, and project execution flexibility.

The project management process includes several stages such as project budget, design, procurement, construction, operation, settlement, etc., each stage is divided into several nodes according to project promotion, the whole process involves the efficient integration of various resources engineering design, human resources, equipment resources, construction equipment and materials, engineering outsourcing, engineering supervision, project quantity confirmation, quality control, engineering changes and many other processes, each node, process, stage must be closed and feedback real-time statistical control effectiveness and project performance based on feedback results.

In order for the project to be controllable (time schedule and project cost), the entire model uses a series of measures:

  1. Emphasize the overall planning of the engineering process. it contains cost control and progress planning, the project resource plan and the promotion process, the over-planning early warning to inform the relevant responsible person, to ensure that the project within the budget on schedule delivery.
  2. Computer-aided scheduling, through the computer system's powerful computing power, according to the engineering stage, nodes of each individual project per-scheduling, according to the scheduling results of material reservation and procurement, effectively overcome the design, procurement, construction constraints and disconnect between the contradictions, design, procurement, construction of the work of the various stages of the reasonable convergence, effectively achieve the progress of construction projects, cost and quality control in line with the construction contract agreement, to ensure better investment benefits.
  3. Total quality data management, complete, standardized, clear quality data of the subject of responsibility, is conducive to the investigation of project quality responsibility and determine the project quality responsibility of the undertaker, the system embedded in the precision traceability module, through one-click search complete the rapid collection of relevant data and impact range analysis, to achieve the goal of risk control.

Manage objects and content:

  • Cost control: focus on cost and engineering changes and do it well in advance cost budget, in the middle of the monitoring and communication, the middle of the project interspersed with engineering changes involving costs and cost adjustments, so the process of strict control of engineering design changes, over budget to do a good job of communication additional investment, it is very important! after the fact to do a good job of final accounts and summary. reduce risk by systematically tracking to each step;
  • Resource plan: resource project manpower, equipment, materials, tools, technology, capital, etc., some of which have their own internal resources, but also through procurement or other means from the social and market resources. in the early stage of the project, according to the target requirements of the project, the target needs of the resource type and resource demand analysis, at the same time, the own resources and social resources conduct detailed and comprehensive surveys and prepare projects resource requirements plan。 resource plan should serve the work schedule, through the computer system's strong data analysis ability and scarce resource occupation and process constraints must make a detailed schedule is very important, the project resource plan includes human resources plan, material and equipment supply plan, capital plan;
  • Contract management: the project involves a large number of contract signing and constraints, the process if there are price changes to sign supplementary agreements, through the document database and contract signing process management, embedded digital signature and risk control technology, in the approval process to achieve security, accuracy, integrity and efficiency. because in the settlement process, a large number of references in the contract price, warranty and payment terms and so on, manual operation error caused a variety of losses;
  • Progress: ensure that the project progresses on schedule and at the scheduled time, and that the derailment means that other projects throughout the company are affected unless force manure must strictly enforce schedule management.
  • Process approval: all nodes and steps are embedded in process approval and critical node review management. embedding process-oriented approval management is efficient and complete, with controlled risk.
  • Quality tracking: detailed records of important materials, components and accessories, finished and semi-finished products, equipment performance and accessories of materials, technical performance. check factory certification and test data, e.enhancement quality of steel; the quality of prefabricated floors, wall panels, doors and windows, etc.: the quality of equipment such as wind turbines. check the factory certificate, its technical data, projects in line with the relevant technical standards. the strength, stiffness and stability of the structure are checked for data and engineering performance. such as concrete, mortar strength, etc. , through the document system to upload and store files.
  • Project settlement: prepare the completion settlement and report it to the owner for approval. when reviewing subcontract settlement, adhere to the contract, strictly control the extra-budgetary costs of the project, collect and accumulate the cost of the project information to prepare for the next bid. each completed project should be analyzed and compared, analysis of the design estimates and construction plan budget in the project volume difference.

From the structural and content point of view, the core of the whole model is in fact the enterprise resource plan and project management in-depth combination, we named 

"engineering project resource planning and implementation system", and

ERP introduced not only a set of systems, but an engineering project as planned implementation and tracking management methods. Many ERP (Enterprise Resource Plan), lean management and quantitative management ideas are embedded in the system, and the project implementation process is also the process of establishing a standardized project management system for enterprises.

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