Hierarchies are often used for the following purposes:
- Evaluating aggregated data
- Allocating budgets
- Defining responsibilities
Both large-scale projects such as constructing a factory and smaller projects such as organizing a trade fair require that the numerous activities involved are planned, controlled, and monitored precisely, systematically, and efficiently. Professional project management is becoming an increasingly important factor for boosting the competitive strength of companies – this is not just for those whose success is based on project-oriented business processes.
A project is an undertaking carried out by a company that is characterized by the uniqueness of its general conditions and constraints.
These general conditions for a project include the following elements:
- The objectives of the project
- The time frame for executing the project
- The financial and capacity-related restrictions
Projects are tasks that have the following characteristics:
- Projects are usually complex and unique and involve a high degree of risk.
- Projects have precise targets that are agreed on between the contractor and the sold-to party.
- Projects are limited in duration and are cost and capacity intensive.
- Projects involve several departments.
- Projects are subject to specific quality requirements.
- Projects are of strategic significance for the business carrying them out.
Projects are an integral part of the commercial processes of a business. Before you can control all the tasks that occur as part of project execution, you need a project-specific organizational form that should be in a position central to the user departments involved.
Phases in a Project
A project comprises several phases. Planning and coordinating large and complex projects require a high degree of precision. When planning the flow of a project, you can schedule deadlines and dates, make resources available, and assign budgets. The project structure provides the support you need during all project phases.