Effective projects are based on time management which ensures that certain activities are undertaken and can be altered to reduce the overload on critical resources. This approach is called resource leveling and, whilst it enables resources to be used more effectively, it may result in the project taking longer to complete if it is necessary to reschedule activities that are on the critical path. Ford and General Motors follow this approach in production and operational management in order to ensure high level of productivity. Resource leveling directs to schedule flows through batch working and demand dependent oriented systems in order to maximize the output. This approach emphasizes the desirability of ensuring a steady flow through the system like balanced flow, rather than seeking to keep all resources busy. Samsung follows time -boxed scheduling method (Spinner, 1998). The advantage of this approach is that its production activities are rescheduled to take account of float within non-critical activities, the overall completion date would not be affected. Thus, Samsung's executives admit that this technique is salubrious because it requires project workers to understand thoroughly the steps that needed to be taken to implement their projects. Shiseido, the forth world leader in cosmetics industry, uses critical chain scheduling in order to produce their deliverables faster than ever. The advantage of the approaches mentioned above is that they allow the companies to meet customer expectations and ensure on time delivery. While users insist that a deliverable be produced in an impossibly short time frame, they are reluctant to drop any desired features in order to make the time frame realistic (Bateman and Snell 2004).
Many companies with excellent products have gone out of business simply because they ran out of cash and financial resources. Cash shortages can result if accounts receivable are not collected promptly, if a key customer disappears, if money is tied up in equipment, or if financial reserves are limited. Similarly, a company will not stay in business long unless it achieves profits. There are countless ways for companies to fail to achieve their profit objectives. For instance, Shiseido, running in-house projects, does not estimate the cost of its internal staff working on the project, but does estimate the cost of contractors and suppliers. The problem is that the company does not have systems in place to allow it to accurately track and record the time people spend on individual projects. Samsung calculates the actual cost per unit of time. This approach allows company to ensure normal modes of working and availability. Ford calculates the efficiency levels for each resource. It pays a special attention to capital and revenue expenditure budgets (Fleetham, 1989).. Plans reduced to specific figures show where money is going or where physical input and output have taken place. General Motors widely uses MRP II which generates a forecast of demand and a manufacturing plan is developed to meet those demands. This plan drives the issue of works orders (www.gm.com). Effective projects need effective management of financial resources to make plans effective, within the budget limits. The budgets are also used as checks on the actual results of a business (Burkun 2005).