Pros and Cons of fast-tracking in Project Management

Pros and Cons of fast-tracking in Project Management

Fast tracking in project management involves shortening the project’s schedule in order to deliver the objectives or deliverables in the shortest time period possible (Lientz, 2011). This process comes with several advantages. The first merit of fast tracking is compression of tasks through multi-tasking thus recovering backlog work. It also allows the project managers to save on time when projects are time-sensitive. Strategic fast-tracking could also enable the project managers to save on costs (Lientz, 2011). An example of the merits of fast tracking is doing exterior design on a real estate project concurrently with construction in a manner that both projects do not collide. The entire project takes less time and could potentially cost less.

Fast-tracking in project management also suffers several demerits. The first disadvantage of applying this technique is the possibility of projects cutting into others in terms of budgetary allocations. Fast tracking is also relatively disorganized and difficult because of communication and coordination problems. Additionally, fast tracking in large complex projects could necessitate the employment of more manpower resulting in huge overheads (Lientz, 2011). Using the previous example of the construction project, fast tracking could cause construction budgets associated with the buildings to cut into those needed for exterior design. The manpower needs would need to be increased in order to deliver the complete project faster meaning costs could increase.

CPI and SPI in Project Management

The Cost Performance Index (CPI) of a project is a ratio used in project management environments to assess the project’s efficiency in utilizing the costs associated with its execution. One important aspect project management is the ability of the managers to identify the most efficient application of resources budgeted while delivering the project’s deliverables in a timely and satisfactory manner. According to the PMBOK, the CPI is calculated by dividing the budgeted costs of the project by the actual costs incurred in delivering it (Seidleck, Reynolds, & Krygiel, 2016).

CPI=EV/AC

EV is the budgeted value or earned value, while the AC is the actual cost. If the CPI falls below 1, the project earned more value that was spent meaning it is over-budget. Similarly, if the CPI falls above 1, the project is earning less than was spent meaning it is under-budget. However, if the CPI falls at exactly 1, the project is proceeding at the exact efficiency anticipated during budgeting although that is very rare.

The Schedule Performance Index (SPI) of a project is a measure of its progression’s efficiency compared to that anticipated during scheduled budget planning (Seidleck, Reynolds, & Krygiel, 2016). The SPI is calculated by dividing the earned value, or scheduled efficiency by the planned value.

SPI=EV/PV

EV is the earned value, while the PV is the planned value. If the SPI falls above 1, that means more work has actually been completed than was planned making the project ahead of schedule. Similarly, if the SPI falls below 1, that means less work has been completed than was planned making the entire project fall behind schedule. However, if the SPI falls at exactly 1, the project is commencing at the exact rate that was planned. That means the project managers are on time.

Going back to the figures provided, a CPI of 1.2 means that the project is under-budget. Therefore, if the budgeted value (EV) was 6million dollars but the actual value has come to 5 million dollars, the CPI would be calculated as;

CPI=EV/AC. That is 6million dollars divided by 5million dollars = 1.2. The project’s CPI is 1.2 making it under-budgeted.

A SPI of 0.8 means that the project is behind schedule whereby less work has actually been completed than was planned. Using an earned value of 4 per dollar used in the project, while the planned value was 5 per dollar, the SPI is 4/5=0.8. Therefore, the project is behind schedule because less value per dollar is being utilised than was planned.

Benefits of Effective Project Closure

Effective closure of a project is an important part of its lifecycle. The benefits of this process include confirmation that all deliverables have been provided according to the initial contract and schedule. Project closure done effectively also provides the teams with opportunities to capture new knowledge and techniques that could benefit both academic and industrial research endeavours (Lientz, 2011). Closing a project effectively injects a sense of vigour necessary in motivating the teams involved in lengthily projects such as huge structural undertakings. Finally, effective project closure provides the teams with opportunities to identify loose ends in their execution of the project and offer remedial action before handing over. This process is also critical in creating rapport for future engagements.

Best practices during Effective Project Closure

One of the best practices during effective project closure is having well defined acceptance criteria that include the exact customer or client expectations in terms of deliverables. This practice reduces the chances of delivering projects that fall below the owners’ expectations or fail to meet them. Another best practice during effective project closure is smooth handover between project closure and client ownership (Lientz, 2011). Many project managers hand over their completed projects while they still require some slight attention to detail meaning owners have to contend with interruptions. However, handovers that are both complete and smooth ensure the project owner can begin getting utility and value from their investment immediately.