Project management

About project management

APP-Invest carries out professional activities related to management of investment project.

Project Management – is the activity of a competent person, aimed at achieving the objectives of the project (organizational, strategic, planning, control, engineering, the timing and cost management, etc.).

The effectiveness of management in general, received result evaluated exclusively against major objectives at systematic interconnection with the core indicators: cost, quality, time.

Management carried by “control action”, by the administrative method and has legal (juridical character) through the establishment of regulations, orders and other acts within the established by the legislation. The subject of management is always a natural person: the owner, director, administrator, manager. The effectiveness of the control action can be assessed by basic indicators: cost, quality, time.

Management object. Managements shall be subject to resources (labor, financial, material), the legal system regulate the legal relations (corporate, labor and economic relations), strategic, tactical, political issues concerning the activities of the organization, the tasks of the project.

Off-system management

Exist management systems located outside of the legal field, based on the oral agreement of the parties. In such cases, evaluation results significant importance, irrespective of the basic indicators has a satisfaction of Customer by results.

At the same time, off-system events can have a global impact on the project as a whole. With regard to minor events of this system, the well-known “domino effect” can lead to significant consequences. I.e. in form and content, the off-system elements which are a subject to management resemble the so-called risk events.

Apparently the most effective system for managing elements that are outside the project management system is to include them in the project risk management system, considering both the positive and negative sides of the occurrence of risk events, even if the chance of their occurrence is 100%.

The effectiveness of managing such a system, like any other in project management, is determined by the results in real life, namely to the criteria for compliance with the assigned project task.

Management processes

Under the processes understand the totality of interrelated activities that are aimed at achieving certain goals of the overall business system.

Management shall be subject to existing system processes in real life, or a system of processes in the form of goals, objectives aimed at creating new value in the future (in the form of project or program).

In any case, Management object is a specific goal and the result of that wish to receive the initiators of the project.

As part of project management, the following processes can be considered:

  • management of the target, strategy, goals, common tasks;
  • quality management;
  • project engineering;
  • control and implementation;
  • planning;
  • risk and safety management;
  • cost and procurement management;
  • resource management;
  • legal and corporate;
  • communications and personnel management;
  • risk management;
  • marketing, advertising;
  • other.

Project Quality Management (Including the target objective of the project).

Most often initiators of the project embody its goal in the form of “ideas.” In this connection, the task initially incorrectly formed, substitution (error) initiated goals reassessment of potential or other errors, in fact make implementation of the idea pointless and disastrous.

On the basis of the generated target activity (Development of plans and procedures, control, etc.) aimed at ensuring the implementation of the task in the specified form, content and quality.

Thus, Project Quality Management includes two types of work:

  1. Determination of quality parameters, including the development of systems of production characteristics of goods, works and quality standards, which are designed to ensure customer’s satisfaction and the realization of the project according to the goals and objectives;
  2. Development of procedures and instructions for quality control and their implementation.

Strategic management

Strategic management – implies a production strategies and their distribution in time for the formation of potential success of the organization (program or project) and the provision of strategic control over the implementation of the planned strategies.

Strategy is a general plan of of consecutive actions carried out by the organization, evaluation and definition of the main priorities, risks, resources, challenges and the tools needed to achieve the goals facing the organization (the project, program).

Strategic activity is essentially of three basic functions: planning strategies; analysis and summary of the general situation appropriate to the circumstances taking place in real life with enterprise or project; drawing up a strategy, develop on the basis of its instructions, legal requirements and recommendations.

Engineering

Engineering – the process involves events by analysis; of design-constructions, research-analysis, industrial activity; and developing practical recommendations enabling improve the initially defined result set by the project proponent.

Process control

Process control – It represents themselves the totality of the administrative, organizational and economic actions aimed at ensuring the implementation and realization of the set goals and objectives, defined and agreed within the framework (cost, time, quality).

The planning process

The planning process – separate process, which consists in the development of plans, project documentation, etc. containing the specific parameters of time, cost and quality of work, to ensure the implementation of tasks. By planning, can include the development of project documentation, plan of works, development of technical specifications etc..

Time Management

Time Management – the process includes activities for analysis, monitoring of works, objectives, plans to ensure the implementation them in accordance with intended plan (projects, strategies, etc.).

Cost Management

Cost Management – the process involves work related to the budget organization or project management expense items and control on the spending of funds, the order of their payment, monitoring financial transactions, organization, optimization of financial schemes, financial and tax reporting, etc.

Resource management

Resource management – the process includes planning, control, monitoring, organizational activities associated with providing resources organization or project (labor, material, etc.), including issues related to logistics.

Human Resource Management

Human Resource Management – the process involves the planning systems of motivation, organizational measures, personnel management, planning, labor regulations, and administrative and functional distribution of powers between the employees of the organization or project team for the effective implementation of work by employees, aimed at achieving the goals and objectives of the activity.

Communication management and information technology (IT)

Communication management and information technology (IT) – process ensuring the operation all business system and the interaction between functional units themselves, the exchange of information necessary for the performance of functions and tasks, as well as development.

Communication is an important factor, involves the formation of a system of relations in which the total volume of information, subdivision allocated to the exchange just a, and to the necessary extent, which is necessary for decision-making contributing to the achievement of the set objectives. Also significant importance has a exchange speed and interpersonal interaction between the subjects of information exchange itselfs.

Information technology helps to significantly accelerate the processes of communication, reception, formation and exchange information. The objective of modern business, a system improvement and perfection of IT systems and technologies used in business

Management of risks

Management of risks – process modeling and evaluation of risk events in the future, to develop plans and systems to reduce the negative consequences associated with the onset of the risk event.

Risk events suggests the onset of positive or negative effects. In general, the risk assessment shall be subject to negative because they can significantly affect the main indicators of the effectiveness of the organization and the achievement of the main goals and objectives.

Purchase Management

Purchase Management – the process involves analysis, evaluation of proposals, the holding of public competitions and tenders, development of delivery schedules and payment procedures, etc. for ensuring the main process necessary resources, products, services, professionals, work, etc.. Purchases may include the purchase of materials, products, equipment, works and services.

The implementation process

The implementation process – process consistent implementation of goals and objectives. By the implementation include construction, manufacturing (production cycle), etc.

Security Management

Security Management – process is to assess the possibilities for occurrence of negative events associated with the commission of crimes or deliberate harm to the organization – legal entities and individuals, governments, official entities, etc., as well as the development of systems of protection against such negative events

Legal and Corporate

Legal and Corporate – the process of creating normative acts and rules governing the relations of participants of the enterprise and its owners; bringing the company into compliance with local laws, including by adjusting the internal structure of the organization or to obtain licenses, permits, etc.

Marketing and Advertising

Marketing and Advertising – process involving the assessment, analysis, planning, organization and implementation of measures to create a favorable and recognizable image of the organization or its products.

Stages and stages of the investment project

The structure of an investment project can be divided into basic segments with specific characteristics and unique tasks inherent for a particular project implementation period.

In most cases, an investment project is divided into the following embodiments:

  • by stages: beginning, implementation, completion and depending on the investment: pre-investment, investment;
  • by phases: initialization, pre-design, design, implementation, completion, etc.

For the organization of project management, stages and phased separation of the project can be applied simultaneously.

Management objects

Regardless of the business – activity and own desire, manager (manager or owner), carry out the management of these processes.

Management cost is an important indicator in an investment project. The item of expenses for project management in the course of its implementation is a significant cost of the total project budget.

In the case of a small business (projects up to $ 500,000 USD), In the absence of the budget, management of the bulk of the process is carried out directly to the project manager (person responsible). In this regard, the quality of management depends on the level of personal skills, competences and knowledge allowing to carry out this type of activity.

For medium and large projects, the project manager attracts specialists in the direction of or specialized companies for certain types of activities. The level of knowledge, skills and competence of the Executive of the process, significantly depends targeted outcome of the project or program.

Consideration of management costs for small projects makes little sense, since it can reach more than 50% of the project cost as a whole. As the total project cost increases, the total management costs as a whole can have a relatively low indicator relative to the total cost and can be within 10%.

Management effectiveness assessed in the system quality-cost-terms is a key indicator forming an understanding of its success.

Depending on the regulated systems and objectives, there are various separate kinds of Management, for example, such as “Project Management”, “Management”, “Administration”, and the like, including a system of principles, tools and approaches used to solving the goals and objectives.

APP-Invest provides project management on expert and process levels. For small projects, the company provides services in the form of of expert consulting.

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