Regarding investment plan management in project management, how can we reduce the accumulation of funds?
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As the title suggests: A project implementation usually involves a plan. How is an investment plan formulated? For example, for a project planned to cost 1 billion yuan, there is surely a plan in place regarding the disbursement of funds as the project progresses (it’s not possible to keep those 1 billion yuan as fixed capital that doesn’t change). The progress of the project is determined based on factors such as the progress of design work, procurement plans, and construction schedules. How do others handle this? What are your thoughts? Manager Discussion Group
First, the Work Breakdown Structure (WBS) is detailed according to the project phases; a reasonable project schedule is developed based on the WBS. Resources such as process packages, design drawings, equipment, materials, and construction materials are identified through the WBS, along with their arrival times. These resources are converted into financial values, and when plotted on a horizontal axis, they constitute the funding plan. Of course, the funding plan and the project schedule complement each other; timely availability of funds enables the project to be carried out according to the schedule, while a properly timed project schedule ensures the rational use of funds. A reasonable input-output ratio ensures that the project generates benefits in a timely manner.
P6 software makes it easy to handle.
I don’t think there’s any company in China that can handle financial planning using P6