Project Management in for a Steel Project...

Project Management in for a Steel Project Project consists of a group of tasks, performed in a definable time period, in order to meet a specific set of objectives. It is a temporary activity. It is a one-time program hence different from operations where tasks are repeated in a routine way. Every project has a life cycle, with a specific start and end. The work scope of a project can be categorized into definable tasks. Project has a budget within which it is required to be completed. During the execution of the project, there is likely requirement of multiple resources. Many of these resources can be scarce and may have to be shared with others. Steel project like any other project has a life cycle (Fig 1) which includes (i) initiation, (ii) planning, (iii) execution, (iv) monitoring and control, (v) commissioning and handing over, and (vi) closing of the project activities. Fig 1 Project life cycle Steel project has four components namely (i) performance, (ii) cost, (iii) time, and (iv) scope. All these four components are interrelated and dependent on each other. Performance is the quality of the work being done. Cost is the expenditure made on the project work and is directly related to the human and physical resources applied. Time is the schedule which is required to be met for completing the work. Scope is the magnitude of the work to be performed. One of the key ingredients for successful project management in a steel project is having the right people on the job and managing them appropriately. Both of the two elements ‘having the right people’ and ‘managing people appropriately’ are important for the project success. However, in practice both conditions are frequently violated. There are several groups of activities in...

The Process of Annual Budget Preparation...

The Process of Annual Budget Preparation  Annual budget for an organization is prepared for a year and is a comprehensive plan, a coordinated set of detailed financial statement of operating plans and schedule. It is the organization’s formal plan of action for the budgeted period. Annual budget is the best document for understanding the micro economics of the organization for the forthcoming budgeted period. Departmental budgets are the basis for the organization’s annual budget since it incorporates all the department’s budgets. It finally takes the shape of projected profit and loss statement and the balance sheet at the end of the budget period. It incorporates all the operating and the financial decisions. In the budgeting process, the annual budget provides a single map explaining how the organization intends to earn profits and positive cash flow for the coming period. It also helps different departments of the organization to coordinate their activities so that together they can meet the overall goals and objectives of the organization in the budgeted period. In an organization preparation of an annual budget is a daunting yet extremely important task. By definition, preparing the budget entails hard choices. These can be made, at a cost, or avoided, at a far greater cost. It is important that the necessary trade-offs be made explicitly when formulating the budget. This will permit a smooth implementation of priority programs, and avoid disrupting program management during budget execution. The annual budget is a comprehensive planning document that incorporates several other individual budgets. The annual budget is usually classified into two individual budgets namely the operational budget and the financial budget. The annual budget formulation process has the following four major dimensions. To set up of the fiscal targets and level of expenditures compatible with targets....