Project Management

Project Management Central

Please login or join to subscribe to this thread

Topics: Organizational Project Management, Requirements Management, Strategy
Are the organization process assets and policies impede the project progress and running
what you will feel if you want to submit some project payment and you have budget approved but the reply came from finance department ..apologize according to the company polices the payment will done after three weeks :(?


i think it is a hot topic to talk about
Sort By:
Page: 1 2 3 <prev | next>
Feb 23, 2020 9:51 AM
Replying to Daire Guiney
...
Dear Adeel,

It would depend on the terms of credit agreed between your organization and the supplier in question.

It is very rare that a supplier is paid immediately upon receipt of invoice and the length of period between receipt of invoice and payment can be anywhere between thirty days to ninety days and in some cases one hundred and twenty days.

The reason for this time period is in times gone by debtors would have to wait for their own creditors to pay them so that they could pay their own bills. If everybody paid everybody at the same time there would be a log jam in the system and payments would start backing up.

In the modern days of electronic payment this is not really the case anymore but business being business a lot organizations still honor these terms of doing business.

Daire
Dear Daire,

Thank you for your participation

agree... this will be as EEF if you agree with me which makes some difficulties on the project progress

but as you mentioned it is depend on the agreement between the organization and suppliers as here the suppliers are client should follow the organization payment terms.


Thanks
Adeil
This is an opportunity for leaning out organizational processes but that is a long game. If this is going to result in failure of one or project objectives then escalate through your sponsor to see if they can work with Finance to fast track the project funding.

Kiron
...
1 reply by Adeel Osman
Feb 24, 2020 1:08 AM
Adeel Osman
...
Dear Kiron,

Thanks for your gold words

exactly sir, escalation every time

but do you think that it will be better if the process been modified to be aligned with the project needs??


Thanks again

Adeil
Feb 23, 2020 4:58 AM
Replying to Adeel Osman
...
Dear Luis,

thank you for your participation to think with me

it was involved of course.. my concern is imagine this with me:

you raised that there are some polices will effect negatively on the project progress according to the project type that you are managing.. you have approved budget "for example" and the finance should secure the cash follow

can we change the OPA? there are some organization rejecting this request?

or in some organization the HR & Finance have more power than the PM because they are reporting to the main stakeholders directly passing over the MD for example?

what you think?
Dear Adeel
Thanks for your comment

Even if the organization is project-based, the payment and payment terms are aligned with the assets of the organizational processes and with the environmental factors
...
1 reply by Adeel Osman
Feb 24, 2020 1:21 AM
Adeel Osman
...
Dear Luis,

thank you again for sharing your gold comments continually.

agree sir, but again i have been worked on companies way of projects is not clear for example i manged different projects even not related together... if the projects natural is unified so the OPA can be applied easily? what if the projects are different?

we have common role in construction filed that the builders should take their money every end of Thursday..

if this project came to that companies i worked it will be very difficult to manage it as the payment terms is different.

Thanks Again

Adeil
Feb 23, 2020 11:41 AM
Replying to Kiron Bondale
...
This is an opportunity for leaning out organizational processes but that is a long game. If this is going to result in failure of one or project objectives then escalate through your sponsor to see if they can work with Finance to fast track the project funding.

Kiron
Dear Kiron,

Thanks for your gold words

exactly sir, escalation every time

but do you think that it will be better if the process been modified to be aligned with the project needs??


Thanks again

Adeil
...
1 reply by Kiron Bondale
Feb 24, 2020 9:31 AM
Kiron Bondale
...
Absolutely! Organizational policies must balance control objectives against delivery ones - too much weight one way or the other will result in poor outcomes and frustration!
Feb 23, 2020 12:55 PM
Replying to Luis Branco
...
Dear Adeel
Thanks for your comment

Even if the organization is project-based, the payment and payment terms are aligned with the assets of the organizational processes and with the environmental factors
Dear Luis,

thank you again for sharing your gold comments continually.

agree sir, but again i have been worked on companies way of projects is not clear for example i manged different projects even not related together... if the projects natural is unified so the OPA can be applied easily? what if the projects are different?

we have common role in construction filed that the builders should take their money every end of Thursday..

if this project came to that companies i worked it will be very difficult to manage it as the payment terms is different.

Thanks Again

Adeil
Feb 24, 2020 1:08 AM
Replying to Adeel Osman
...
Dear Kiron,

Thanks for your gold words

exactly sir, escalation every time

but do you think that it will be better if the process been modified to be aligned with the project needs??


Thanks again

Adeil
Absolutely! Organizational policies must balance control objectives against delivery ones - too much weight one way or the other will result in poor outcomes and frustration!
...
1 reply by Adeel Osman
Feb 25, 2020 2:38 AM
Adeel Osman
...
Thanks Kiron,


agree with you
for sharing your reply

Adeil
Feb 24, 2020 9:31 AM
Replying to Kiron Bondale
...
Absolutely! Organizational policies must balance control objectives against delivery ones - too much weight one way or the other will result in poor outcomes and frustration!
Thanks Kiron,


agree with you
for sharing your reply

Adeil
As alluded by other contributors, your finance department has to worry about cash flow. It is easier to use incoming flows to pay out outgoing flows. It saves on borrowing fees and interests.
...
1 reply by Adeel Osman
Feb 26, 2020 3:36 AM
Adeel Osman
...
thanks Stepane for your participation


of course i will,, but the case is the Finance department is out of my power .. put i will use the judgment to mange it?


Thanks Again
Adeil
Feb 25, 2020 12:34 PM
Replying to Stéphane Parent
...
As alluded by other contributors, your finance department has to worry about cash flow. It is easier to use incoming flows to pay out outgoing flows. It saves on borrowing fees and interests.
thanks Stepane for your participation


of course i will,, but the case is the Finance department is out of my power .. put i will use the judgment to mange it?


Thanks Again
Adeil
I agree with Sergio.
Page: 1 2 3 <prev | next>  

Please login or join to reply

Content ID:
ADVERTISEMENTS
ADVERTISEMENT

Sponsors