Page 27 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Fundamentals of Project Management

Notes process is marked by the Project Kick-off Meeting, in which the Project Manager presents the
Project Charter.
Successful projects begin with a detailed project definition that is understood and accepted by
Stakeholders. Putting everything down in writing helps ensure a commitment among Project
Team members and between the team and the Stakeholders. As part of Project Initiation, an
initial Project Plan is developed, which comprises the Project Charter, Cost/Scope/Schedule/
Quality (CSSQ) documents, and preliminary risk identification list. These documents, once
approved, ensure a consistent understanding of the project, help to set expectations, and identify
resources necessary to move the project to the next level of detailed planning. Potential problems
are identified so that they can be addressed early in the project.
Also during Project Initiation, a high-level Project Schedule is developed as the roadmap to
more detailed Project Planning and Project Execution and Control. This high-level schedule will
be refined over time, and will serve as the primary source of information regarding project
status and progress. An accurate, realistic, and complete schedule, rigorously maintained, is
essential to the success of a project.
Sponsorship of the project must be confirmed or gained during Project Initiation. Having a
Project Sponsor, and securing approval early in the project management lifecycle, helps to
ensure a commitment to the project.

2.2 Resource Allocation

Resource allocation is the distribution of resources – usually financial – among competing
groups of people or programs. When we talk about allocation of funds for healthcare, we need
to consider three distinct levels of decision-making.
Level 1: Allocating resources to healthcare versus other social needs.
Level 2: Allocating resources within the healthcare sector.
Level 3: Allocating resources among individual patients.

Example of Resource Allocation

Example: A community receives a gift of $100,000 from a wealthy donor to spend on
healthcare, education and housing. The funds can be distributed among the three areas or
dedicated to a single area, such as healthcare.
Level 1: At this level, community members consider how to distribute the funds among one, two
or three of the competing programs.

Example: Should the funding be split in three equal portions or should one program,
possibly under-funded in the past, get all or most of the money?
Level 2: Assuming that healthcare gets a portion of the $100,000, the next decision community
members face is how best to direct the spending among competing healthcare interests. Should
most or all of the funds go to hospital care and medical equipment? What about the public
education program that promotes healthy lifestyles and behaviors (like exercise or
immunizations) that prevent disease? Or, community members could decide to spend the money
to purchase health insurance for those who can’t afford it.
Level 3: The next level of decision making involves distributing the financial resources among
individuals. Most communities have policies and guidelines to insure fairness in these situations.

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