Operations Management: An Integrated Approach, 5th Edition

PROJECT MANAGEMENT OM ACROSS THE ORGANIZATION

Since projects tend to be long term and consume a company's resources, functional areas through the company work with expected completion dates, resource requirements, and the consequences of activity delays. Let's look at how the functional areas use project management information.

Accounting uses project management information to provide a time line for major expenditures associated with the project. Accounting measures actual cost performance against planned costs to calculate profits. Accounting also calculates the cost benefit of crashing a particular project.

Marketing uses project management information to monitor the progress of a project and to provide honest and realistic updates to the customer. The project schedule allows marketing to evaluate whether or not to crash a project.

Information systems develop and maintain the software that supports project management. Choosing, installing, and training users in the appropriate software is vital to successful project management.

Purchasing uses project management information to deal with project delays by de-expediting items and rescheduling these items for later delivery. This ...