5) Process Groups – How much time and money is typically spent on projects in each of these process groups? Assume you have one year and $100,000 to spend. Justify your answer.

1)      Process Groups – How much time and money is typically spent on projects in each of these process groups?  Assume you have one year and $100,000 to spend.  Justify your answer.

   
 
          

The process groups of project management are Initiating processes, Planning processes, Executing processes, Monitoring and Controlling processes, and Closing processes.  “Initiating processes include defining and authorizing a project or project phase.” (Schwalbe, 2014)  “Planning processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs.”(Schwalbe, 2014)  “Executing processes include coordinating people and other resources to carry out the various plans and create the products, services, or results of the project or phase.”(Schwalbe)  “Monitoring and controlling processes include regularly measuring and monitoring progress to ensure that the project team meets the project objectives.” (Schwalbe, 2014)    “Closing processes include formalizing acceptance of the project or project phase and ending it efficiently.” (Schwalbe, 2014)  The amount of time and money that is spent on projects in each of these process groups varies from project to project. 

                The book Information Technology Project Management by Kathy Schwalbe references Andy Crowe’s book Alpha Project Managers: What the Top 2% Know That Everyone Else Does Not, which shows that the typically, effective project managers spend 1% of time is spent Initiating, 11% Planning, 82% Executing, 4% Monitoring and Controlling, and 2% Closing. 

To determine the cost and time available to work on projects it is important to look at the number of actual work days that can be allotted to completing a job.  Even though there are 365 days in a year, an employee will not be working every single day.  A realistic approach would be something along the lines of 52 weeks in a year and 5 working days per week will give an average of 260 week days.  Factoring in approx. 25 holidays per year, depending on religious and national holidays, only leaves approx. 235 actual working days. The typical amount of money spent on each process phase is more difficult to estimate because there may or may not be hardware costs, contractors, software licenses, etc.  But ultimately the percentage would be similar to the typical amount of time spent on each phase.  Executing would of course be the most costly since it also consumes the most time which in the procurement management knowledge area can possibly be very expensive.  But ultimately, using a $100,000.00 budget and a year to complete the project would equate to $425.53 per day (average).

                The Initiation Phase – 1 percent of time would take $1,000.00 of the budget. 

                The Planning Phase – 11 percent of time would take $10,999.95 of the budget.

                The Executing Phase – 82 percent of time would take $81,999.63 of the budget.

                The Monitoring and Controlling Phases – 4 percent of time would take $3,999.98 of the budget

                The Closing Phase – 2 percent of time would take $1,999.99 of the budget.