EDP Notes

The need for project management arises due to the following reasons:
1) Complexity of Project: Project involve time, effort, money etc. If there is any fault in
planning or implementation of projects, the resources put in the projects would be a waste.
2) Achievement of Objectives: Unless projects are managed well, the objective for which
the projects are undertaken cannot be achieved.
3) Environmental Changes: A project should be well equipped to meet the environmental
challenges .The success of the project depends upon how the project is able to cope with the
changing environment.
4) Competition: To face out the competition provision of a good or a service is not
sufficient. It must provide a package which meets an entire need rather than just part of that need .
5) Constraints: The constraints relate to time, materials, demand, labour etc. The success
of a project depends on how well it is possible to manage the so called constraints.
6) Risk and Uncertainty: At every stage of project life cycle there are challenges and
problems. As the project moves new challenges and problems may arise. The risks and
uncertainties cannot be eliminated but can be minimized through proper management of project.
7) Time Overrun and Cost Overrun: If a project takes more time than the scheduled time,
it is known as time overrun. If a project incurs more costs than budgeted, it is called cost overrun.
8) Project Control and Evaluation: It is done either at the end of the project or few years
after the completion of the project. This enables to learn lessons from the projects.