Introduction
The successful implementation of projects requires efficient management. Project plans are normally applicable in guiding the project execution process.
This case study describes seven planning activities and evaluates the Pontrelli Recycling, Inc’s project implementation, efficiency, and alignment with the company’s economic strategy. Furthermore, it discusses how project controls are useful in mitigating risks associated with project execution.
Body
Primary planning activities
The company seeks to escalate its recycling competence to increase output from reusable materials in order to make the environment habitable. It also seeks to generate value and reasonable profit for its shareholders. Certain primary planning activities are required to promote project the execution in order to meet the projected profits.
The first amongst the planning activities is the fact that project managers must comprehend the firm’s economic goals and other objectives to enable them align project operations to financial goals. Secondly, Pontrelli project managers should understand resources required for successful project initiation and execution. The firm requires a new technology in order to escalate efficiency and expand production rates.
Additional requirements include capital expenditures, purchase of fresh equipment, and rehabilitation of plants among others (Callahan, Stetz & Brooks, 2007). Therefore, managers must plan the strategies to be used in financing the necessary requirements.
The third plan is that project budget should be developed according to the operation forecasts. This entails understanding all the operational costs that includes including recruiting fresh workforce, acquiring equipment, and materials.
The fourth plan is that project planners should enumerate primary information on the firm’s ability to undertake the project successfully. This entails gathering evidence about Pontrelli’s internal capacity including financial, human, equipment, and material availability for executing identified projects. The fifth is that managers must describe how project performance will occur in future.
This is done through making assumptions on how efficiency and profits are likely to escalate. The assumptions should explain how the relevance of marketplace competition, acquisition of new technology, and improvement on sales impact on performance (Callahan, Stetz & Brooks, 2007).
The sixth plan is the bottom up approach which should be used to approve project budget. This is important because different department heads should confirm whether or not the funds provided for their sectors are sufficient to complete project execution.
Finally, managers must review company finances in order to understand whether or not overall implementation of the project can deliver returns on investment (Callahan, Stetz & Brooks, 2007).
Project Execution, Efficiency, and Alignment
Pontrelli has employed a comprehensive project execution strategy. The notable activities entail the preparation of a plan for the newly acquired equipment and technology. This entails carrying out renovation and increasing the size of the available plant. Project execution also entails the acquirement of the new technology.
Managers also review and update the company’s operation process to accommodate the increased efficiency and production requirements (Titman, Keown & Martin, 2011). The firm has adopted a new technology to enhance its recycling efficiency. It is notable that acquiring new technology emerged as the most applicable option after considering diverse possibilities of escalating profits and efficient recycling activities.
Furthermore, the project is highly aligned to the firm’s financial goals. Indeed, decisions on the suggested project are largely influenced by the financial benefits, market competitiveness, increased efficiency, and revenue.
Significance of project control in mitigating risks
Application of project control is crucial in the management of risks associated with execution activities. Project control mitigates risks in the sense that it assists managers in minimizing overhead expenses for other parts of the project. The project has included in the budget costs for emergency risk management at 12% of the project overall costs.
Conclusion
It is notable that successful execution of projects relies on planning in many occasions. Companies should take into consideration both present and future impacts while implementing all the phases of a new project. Pontrelli Recycling, Inc has outlined its strategy of initiating a project that escalates efficiency and return on capital.
References
Callahan, K., Stetz, G., & Brooks, L. (2007). Project management accounting: Budgeting, tracking, and reporting costs and profitability. Hoboken, NJ: John Wiley & Sons.
Titman, S., Keown, A & Martin, J. (2011). Financial management: Principles and applications (11th ed.). Boston, MA: Pearson/Prentice Hall.