When managing a project things can get pretty chaotic at times. Simply because of the fact that so many things can happen before, during or after a project is finished. Business managers over the years have developed different types of analytical techniques to tackle this issue. These techniques have helped them to analyze the different areas of a project. So that they can set objectives and track performances to ensure everything are operating properly.
One of the main benefits of using analytical techniques is that they also help you to spot and analyze problems as they occur before they escalate into a huge issue.
Some techniques will help you to dissect the problem down to its finest of details. This will help you get the real root of the problem. While others will give you a bird eye’s view of the different processes which will help you spot the problem quite quickly. Analytical techniques will not be the universal antidote to make a project successful.
There are there to assist you in analyzing and fixing problems. Problems usually occur in projects and using analytical techniques will increase the odds in your favor for success. You can see some of the analytical techniques that you can use in your projects below.
Analytical Techniques in Project Management
Time series
Time series is a forecasting tool you can use to predict the future based off of past results. For example in the first six months of product development it took two hundred thousand dollars to get completed.
You can then analyze your project by looking at the cost of materials, equipment and labor needed to get the project past another six months. This will then help you to set a proper estimated budget for your project and prevent over-spending.
Reserve analysis
This technique helps you to look at and analyze the different areas of your past project. This will help you to create a buffer in terms of budget, materials and labor for future projects. Sometimes in a project problems can unexpectedly happen and at that moment you would need to make quick decisions to fix them so the project can continue.
What reserve analysis helps you to do is create a reserve plan for future risks. This will act as a backup so if a problem do occur, you were already prepared for it. For example you are starting a new project to create a new version of your past product. You can increase your budget by 20%; this extra cash could be spent on new equipment if any of your current ones unexpectedly broke down or labor to hire more persons to increase production.
Failure mode and effect analysis
This analytical technique helps you to spot weaknesses in the different areas of your project. It also helps you to look at the different causes and effects they will have on your project.
This technique can get pretty tedious. It’s worth it because it will help you spot problems that would’ve often gone unnoticed if you did use other analytical methods. It will also help you to develop an action plan to help and eradicate those issues or reduce its effects.
Variance analysis
Variance analysis helps you to analyze the financial performance of your project over its life cycle or a period of time which you’ve set to measure it. For example you’ve estimated that operation’s budget for next quarter project cycle is $200,000 but you’ve ended up spending $350,000. You spent $150,000 more than you’ve expected. What you have to do now is to analyze which areas of your operations have made the cost of operating your project so high.
This will help you set a different budget plan for your future project. Furthermore it can help to cushion the some of the risk if that should happen again.
These methods are just some of the few you can use out of many in your project to analyze it. Most of these techniques are also pretty easy to implement in your business. If you use them properly it will help reduce some of the risk that projects usually come with.