Project management concepts and applications

Management

The project audit system is a more in-depth analytical tool than the performance management system in chapter 13. That system measured performance of a project but did not take into account bigger picture issues. The project audit system lays out an understanding of why the project was taken in the first place, and then evaluates not just the performance of the project but also the project's continued role in the organization. This is weighed against the organization's broader objectives. They also analyze the project team, the organizational culture and provide a review of both internal and external performance factors to help determine the ongoing viability of the project.

It is difficult to perform an audit in a truly independent, objective fashion because individuals involved may have made an emotional investment in the project. This can be in terms of time, or political considerations (being the person who authorized the project, or being someone in charge of an aspect of the project, for example). For this reason, an audit should be conducted by personnel that is completely independent of the project. If the project is important enough to the company, that may involved hiring an audit team from outside.

5) This statement is patently absurd. Money that has already been invested is gone - you cannot get it back. Therefore, the only money that is on the table is that which will be spent in future. If the project is no longer viable, spending this money will be a poor investment decision. Money spent in the past should have no bearing on present or future investment decisions. Just because a project is nearing completion does not mean it necessarily makes sense to continue with it.

Chapter 15: 1) Environmental factors affect project implementation in a number of ways. First is that they may be different in the foreign country from the domestic one, which can give rise to implementation complications. The project's timeline and cost could be dramatically altered by differences in environmental factors. Local firms or workers may be involved, creating training costs or potential organizational cultural differences. There could also be cost considerations arising from economic or exchange rate considerations. Environmental factors can be positive, too, as solid understanding of them could allow for advantages that would not be available if the project was domestically-based.

3) it is important to honor the local customs for a few reasons. One is that ultimately your ability to do business in the foreign country is permitted by the government of that country. To offend local custom may jeopardize the entire operation. Also, the project will be implemented more smoothly if you work in line with local customs, rather than fighting them. Your ideas of what is best may not be in line with the local sentiments on the issue and conflict can arise, causing delays. Success of overseas projects often depends on adherence to local customs.