Project and process management: stages of works and financial calculations

For those who are engaged in the conclusion of project agreements and management of works under this agreement it is very important to coordinate stages of works and financial calculations to the customer and the working schedule and financial calculations with personnel.

1. Very seldom matches stages of works and the payment schedule under the agreement. Often the advance payment on an agreement stage undertakes. During this time frame there is some monetary reserve. However it comes to an end when the advanced part of a stage of the agreement is executed. Further works are performed for own or borrowing facilities.
2. the Internal working schedule generally does not match the external working schedule, both on completion dates, and on amount of works. On it there are objective reasons. External volumes of works can more internal volume of works on the reason of use of earlier made backlogs. For example, agreed on volume at 500 o'clock. However at 300 o'clock I do not need to execute amount of works within this agreement since I have earlier made backlog which I use for this agreement. Therefore for the internal working schedule, it is necessary to plan 200 hours. Other example, Agreed on volume at 500 o'clock. However the actual volume of internal works will be 800 hours. I should plan Z00 of hours within other agreement, for an example for future backlog.
3. it is frequent, for reflection of amount of completed work, the percent of the performed works from planned is used. At the same time real reports on the performed works are not provided. Happens that 90% of works are closed, and actually they did not begin.
4. Under the project agreement, turnkey contracts (agency agreements) according to which there are working schedules and payment schedules are signed. Therefore it is necessary to manage, not only own works, but also works of contractors, not only settlings with customers, but also settlings with contractors.
5. the Personnel performing works have different qualification, so and different performance. If in the agreement with the customer 500 hours are stipulated, then it can be really spent also 800 and 300 hours depending on qualification of the employee. And if during the project there is a need of replacement of the specialist, then not only volumes, but also terms of execution of works can be changed.
6. the Personnel participating in the project are often involved also in other projects. Besides, the same personnel participate in different collective works (forums, meetings, technical councils). The same personnel are forced to execute single instructions (work on external letters, orders of the head, solutions of minutes of meetings). The same personnel are distracted by the solution of the service questions connected with support of earlier handed over projects.
7. the project manager's Task – to execute the project in the set terms and with the set volumes. A task of the head of functional department – uniform loading of personnel. And how the personnel act, being a servant of several misters? And as heads can see loading of the personnel: by quantity of tasks, instructions, projects?
8. Business processes, scheduled works, standard projects which are described in different procedures of management and quality manuals coordinate the sequences and conditions of execution of works by different divisions. All this is in documents. But who remembers them by heart. Here if at approach of some event a set of possible works according to regulations was generated, then it would not be necessary to remember all this and would be much less losses of working time with failure to meet time constraints of execution of works.

1. the Personnel participating in projects participate also in scheduled works. As well as the production personnel, participate in project works, for example at preproduction of a new product. Besides, the personnel can stand idle for the different reasons – lack of electricity, a disease, a business trip.# Thus to manage loading of personnel, it is necessary both to plan, and to consider labor input on each of projects, each of business of processes, to each single and collective order and also dead times.
2. A now on budget management of the project organizations. Each project has the income budget, the expenditure budget and the budget of cash flow. If the budget, income unambiguously depends on the agreement, then the budget of an expense depends on the internal working schedule, but not on external. At the same time acts of the performed works need to be done according to the agreement, and salary needs to be paid according to the internal working schedule. And loading of personnel needs to be planned according to the internal working schedule. On this example the fundamental difference of accounting and management accounting is visible.
3. How many people can estimate such counters in the software at the organizations as:
   

• existence of communications between agreements external and internal and project works
• payment under external agreements and on internal works
• planning and accounting in hours of the customer and hours of specific contractors
• generation of works to specialists of different divisions according to business by processes
• planning and accounting of all tasks, instructions, requests
• recording of changes on all works and electronic documentation
• possibility of calculation of price-work salary of specialists in design
• electronic control of works by the organization
• budget management of the project organization