Project Management Copy 2

ProjectManagement

Word Count:Task 1: 638Task 2: 2096

2

Contents

Task 1.............................................................................................................................................................................. 2

1. Introduction.............................................................................................................................................................2

Question 1...................................................................................................................................................................2

Question 2...................................................................................................................................................................2

Question 3...................................................................................................................................................................3

Question 4...................................................................................................................................................................3

Question 5...................................................................................................................................................................4

Question 6...................................................................................................................................................................4

Task 2.............................................................................................................................................................................. 5

1. Introduction.............................................................................................................................................................5

2. Activities Required at Initiation Phase....................................................................................................................5

2.1 Feasibility Study................................................................................................................................................ 5

2.2 Financial Appraisal............................................................................................................................................6

2.3 Establishing Goals and Objectives.................................................................................................................... 6

3. Activities Required at Design Phase........................................................................................................................6

3.1 Scope and Resource Definition..........................................................................................................................6

3.2 Work Breakdown Structure (WBS)....................................................................................................................7

3.3 Cost Management Budgeting...........................................................................................................................7

3.4 Establishment of Policies and Procedures.........................................................................................................8

4. Activities Required at Implementation Phase.........................................................................................................8

4.1 Risk Assessment and Management.................................................................................................................. 8

4.2 Scheduling.........................................................................................................................................................8

4.3 Team Development and Management.............................................................................................................9

5. Activities Required at Commissioning Phase.......................................................................................................... 9

5.1 Evaluation of Results (Benchmarking)..............................................................................................................9

5.2 Transfer of Project.............................................................................................................................................9

6. Skills and Competencies Required by Project manager........................................................................................10

Conclusion.....................................................................................................................................................................10

References.....................................................................................................................................................................11

Appendix I: WBS............................................................................................................................................................13

3

Task 1

1. Introduction

Project management has become one of the most important aspects of every

organization and hence adequate project planning and management is essential

(Crawford, 2005). The task presents a theoretical evaluation and discussion of different

aspects of project management to understand the theories before they are applied

practically.

Question 1

Projects are categorized in three broad types, i.e. change-driven, crisis-driven and

market driven.

Change-driven projects are those projects, the main aim of which is to initiate or

implement a change. Example of such a project is that when a company wants to

change its machines from old technology to a new technology (Crawford, 2005).

Crisis-driven projects are those projects, the main aim of which is to solve a problem or

crisis. A project to establish an alternate supply chain or transport system when the

primary transport system gets stopped for some external factor such as strike is a crisis-

driven project (Crawford, 2005).

Market-driven projects are those projects, the main aim of which is to create a product

or service that can address the changing needs and demands in the market. Adding

additional payment options in an e-commerce website because of consumer demands

is a market-driven project (Crawford, 2005).

Question 2

Scope management is an integral part of project management and refers to the

processes involved in identifying the key requirements and activities related to the

project. The overall scope helps in defining what is included and what is not included in

the project (Atkinson et al 2006). The plan that is developed for managing scope needs

to include and provide information related to different aspects of the project including

4

the roles and responsibilities of people, processes to be completed, delivery time,

assumptions, risks, requirements and constraints. The subdivision of the scope of work

is generally shown and presented with the help of the Work breakdown structure (WBS),

which is a tool for dividing an overall project into individual work packages for better

understanding and execution (Atkinson et al 2006).

Question 3

It takes 22 days to complete the project. Usage of Gantt charts is extremely helpful

during the implementation of projects because it demonstrates the linkages between

different activities, thus helping project members understand the activities that need to

be completed for moving ahead (Lee et al 2006). It is also an extremely simple

communication tool that is easy to understand and hence can be used by all the

members of the project for effective communication. Better scheduling and time

management are yet some additional benefits of the tool (Lee et al 2006).

Question 4

One can decide whether a project has been successful by measuring its outcomes to

the initial plan. The first step to check is whether the objectives as establish in initiation

phase are met. If the project has achieved all the objectives within the give constraints

and resources, it will be considered successful. Also, the achievement of expectations

of customers and the desire of client to again work with the same team point towards a

successful project (Baker et al 2008).

5

Question 5

Steps to be taken for managing changes during projects:

- Evaluation of the nature of change and reason behind the change

- Analysis of the impacts of change on three major constraints, cost, time and

quality

- Study of interdependencies of tasks

- Comprehensive assessment of risks and benefits associated with change

- Preparation of a change request form with all the information

- Approval of the form from all stakeholders (Baker et al 2008)

Question 6

Project quality management refers to activities undertaken for managing and achieving

the desired quality of a given project. There are three key processes involved in project

quality management. First process is quality planning, wherein the quality requirements

of the project are identified and then documented for easy communication (Winter et al

2006). Second process is quality assurance, wherein the processes are checked and

audited to ensure that they meet quality requirements. The last step is quality control

wherein tests are carried out for final quality checks and changes (Winter et al 2006).

Thus, overall quality of projects is management effectively with these three processes.

6

Task 2

1. Introduction

The task is related to the incorporation of the actual learning of different aspects of

project management to a project. The given project scenario in the case study presents

a project to be handled by Snowball Ltd. Snowball is required to execute a project that

requires installation of ten new wind turbines with a budget of one million pounds for

every wind turbine, thus total project cost of ten million pounds. The energy that would

be generated from these turbines is mainly going to be used for a new enterprise park,

being constructed by the government with a budget of 50 million pounds and also

leading to 30,000 jobs. Hence, the report identifies the activities that are essential for

the project manager to manage this initiative. The project manager has been appointed

at the feasibility stage. The activities required at every phase of the life cycle of the

project are being analyzed further.

2. Activities Required at Initiation Phase

This is the first stage in the project life cycle, which requires an assessment of the need

and feasibility of the project to explain what needs to be achieved from the same. The

activities essential for the current project are being evaluated ahead.

2.1 Feasibility Study

Project manager needs to evaluate feasibility of project to determine whether the project

is going to add value to the stakeholders, who in this case are the government, client,

Snowball, people who will get jobs at the new enterprise park etc. It firstly needs to

evaluate whether the chosen site of East Coast of England is suitable for the installation

of the turbines. Second feasibility is to determine if the project is feasible financially, i.e.

to evaluate if the project would provide profits for Snowball and the client for with the

investment that is being made (Shen et al 2010). The ability of the turbines to cater to all

the energy requirements of the enterprise park also needs to be assessed because

these feasibility analyses would help in establishing the need of the initiative (Shen et al

2010).

7

2.2 Financial Appraisal

Financial appraisal is an important activity or tool used for evaluating the financial

feasibility of a project. It helps in analyzing if the project is feasible or investment or not.

The project manager must identify the key costs that would be incurred at the beginning

of the project and during the project (Tayles et al 2007).

Payback period would help Snowball in evaluating the time period within which the

project would become profitable and the initial investment would be recovered. However,

it does not consider the profitability and the time value of money. Hence, the project

manager must also make use of the discounted cash flow techniques such as Net

Present Value (NPV) and Internal Rate of Return (IRR) for estimating the overall

profitability of the project (Tayles et al 2007).

2.3 Establishing Goals and Objectives

Goals and objectives define the end results that need to be achieved by the project. The

objectives need to not only define the results that the clients must get after the project is

completed, but also need to define the objectives of the project (Cicmil et al 2006). For

example, the objectives of the present project would be to complete the project within

time and budget, to manage and control the activities well, to ensure high quality and to

minimize risks. One of the key problems as identified by Cicmil et al (2006) that can

arise in this activity is the conflicts between goals and objectives of different

stakeholders. Hence, the project management needs to carry out extensive

brainstorming sessions with all stakeholders to establish the final set of goals.

3. Activities Required at Design Phase

The design phase of the project life cycle refers to the phase or stage of the project in

which the overall plan, schedule and even the design of the product or service to be

developed during the project are designed and developed (Highsmith, 2010.

3.1 Scope and Resource Definition

Scope of a project refers to the requirements and needs of the project, which clearly

defines the objectives that need to be met via the project and the activities that lie within

the scope of the project to get it completed.

8

In addition to the overall scope, the project management also needs to define the

resource requirements of the project. The resources for the current project would

include money for installation, human resources for managing the project, equipment

and machinery for installation and operations of turbine, workers for installation and

materials for installation (Highsmith, 2010).

The Triple Bottom Line (TBL) constraint theory suggests that three major requirements

and constraints of any project are time, cost and quality (De Reyck et al 2005). Hence,

the project manager needs to identify, define and approve the three constraints, cost of

the project, which has been estimated to be £10 million, time that has been estimated to

be around one year because the project needs to be completed before October’16 and

quality that would be required to meet quality standards of wind turbines.

3.2 Work Breakdown Structure (WBS)

Creating and establishing a WBS for the project is another extremely important activity

for the project manager of Snowball responsible for wind turbine installation. The WBS

is used to define major groups of work that needs to be carried out for the project into

smaller activities, wherein the top down hierarchy needs to be followed for completing

the work (Highsmith, 2010). A sample WBS for the suggested project is given in

appendix I. This activity is essential because it will help the project manager in detailing

the project activities and would also increase overall accountability of different people in

relation to different tasks.

3.3 Cost Management Budgeting

Budgeting is one of the most important activities that need to be taken care of. The

project manager needs to estimate the costs associated with the project and then

budget and divide the overall costs for different activities (Desouza and Evaristo, 2006).

The direct and indirect costs and the budget for different stages of the project life cycle

need to be identified and established. This would then help the project manager in

budgeting and managing costs for the project. The actual costs can be compared with

the budgeted costs for evaluating if the project is being completed within budget

(Desouza and Evaristo, 2006).

9

3.4 Establishment of Policies and Procedures

The project manager also at this stage, define the policies and procedures for the

project. The policies and procedures must define the way different activities need to be

carried out during the project (Herroelen and Leus, 2005). The project manager needs

to define the policies related to communication related to the project, the structure of the

project, reporting norms, people management and also technology management so that

the project is carried out effectively and the stakeholders are informed regarding the

project and its progress (Herroelen and Leus, 2005).

4. Activities Required at Implementation Phase

4.1 Risk Assessment and Management

Risk management requires the manager to identify and assess the key risks related to

the project, which can have adverse and negative impacts on the project and its

stakeholders so that the manager can establish precautionary measures to ensure that

these risks do not affect the project stakeholders negatively (Haimes, 2005). The risk

management model can be used for the establishment of adequate risk management

processes, wherein the project manager needs to define the objectives of risk

management, followed by identification of all internal and external risks, quantification of

risks, development of responses and establishing control Haimes, 2005). The key risks

that the project can face include the risks of poor quality of materials, risk of going over-

budget overtime, failure of technologies used, lack of effective communication or the

failure of the government project of the new enterprise park. Project manager can even

maintain a risk log for effective risk evaluation (Haimes, 2005).

4.2 Scheduling

Scheduling refers to the processes involved in identifying the time required for each

activity and then scheduling them so that the project is completed within the stipulated

time period. The project manager can make use of Gantt chart or online systems for

scheduling activities. Scheduling of such form not only helps in establishing timelines for

everything but even will help the manager in controlling the same and ensuring that the

activities are completed within the given period of time (Highsmith, 2010).

10

4.3 Team Development and Management

People are extremely crucial for the success of any given project because the people

are required to ensure that all the activities necessary and important for the project are

being executed and carried out effectively (Keller, 2006). The project manager would be

required to hire several people, which would include engineers and technicians for the

actual installation of the turbines, finance managers for carrying out the financial

analyses of the project, marketing professionals for managing marketing of the project

etc (Keller, 2006). Hence, the project manager needs to identify people who can work

together and form successful and effective teams so that the teams can carry out their

activities and help in achieving the aims and objectives of the project completely.

5. Activities Required at Commissioning Phase

5.1 Evaluation of Results (Benchmarking)

The project manager needs to make sure that the overall success of the project is

evaluated once the project is over to make sure that the project has been successful

and has helped in meeting the defined aims and objectives (Shen et al 2010).

Benchmarking is a commonly used tool for evaluating and monitoring the results of a

project, wherein the project manager can establish benchmarks with respect to quality,

amount of energy generated from the turbines etc. based on evaluation of previous

such projects (Shen et al 2010).

5.2 Transfer of Project

Snowball Ltd is managing the company for somebody else and the energy generated

from the turbines would be used for completely other project of the government. Hence,

the project manager appointed by Snowball needs to make sure that the project is

transferred adequately to the client so that the operations of the turbines can be carried

out effectively in the future (Baker et al 2008). The project manager needs to make

adequate documents for the turbines that can help the client in carrying out the

operations of the turbines in the future. Also, the project manager needs to brief the

client and ensure that the client is able to understand all aspects of the project and its

execution in the future. Baker et al (2008) explain that project manager often ignore the

part of project transfer, which thus leads to inefficiencies and problems at the later stage.

11

6. Skills and Competencies Required by Project manager

The most important skill to be exhibited by the project manager is leadership, so that he

can make correct decisions and also motivate all the people working for the project to

perform better.

Team player abilities are also required because the project of wind turbines is going to

be a collaborative effort and thus the manager must be able to work along with other

members of the team while taking them in the right direction (Pant and Baroudi, 2008).

Analytical skills and competencies will also be helpful so that the manager is able to

analyze the problems and make effective decisions and also make use of different tools

and technologies for analytical problem solving (Pant and Baroudi, 2008).

Time management and planning skills help and support the project managers to be able

to plan the activities of the project well so that the project is completed within the given

time frame, which is one of the key objectives for every project (Khang and Moe, 2008).

The project manager acts as a bridge between the project members and the client and

thus needs to possess strong communication skills to be able to effectively understand

requirements of both the sides and also to communicate project related information

(Khang and Moe, 2008).

Conclusion

One of the key conclusion that can be derived from the task is that the management

and successful completion of every project is dependent on the effectiveness of

planning that goes into all the four stages of the project life cycle. As discussed earlier,

the project manager has a key role to play in the success of every project and is

required to manage every activity of the project and the stakeholders associated with it

to ensure success. The theories and concepts of project management are all valid in the

real life scenarios as well.

References

12

Atkinson, R., Crawford, L. and Ward, S.(2006), Fundamental uncertainties in projects

and the scope of project management, International Journal of Project Management,

24(8), 687-698

Baker, B. N., Murphy, D. C. and Fisher, D. (1997) Factors Affecting Project Success, in

Project Management Handbook, Second Edition, John Wiley & Sons, Inc., Hoboken, NJ,

USA

Cicmil, S., Williams, T., Thomas, J. and Hodgson, D.(2006), Rethinking Project

Management: Researching the actuality of projects, International Journal of Project

Management, 24(8), 675-686

Crawford, L.(2005), Senior management perceptions of project management

competence, International Journal of Project Management, 23(1), 7-16

De Reyck, B., Grushka-Cockyane, Y., Lockett, M., Moura, M. and Sloper, A.(2005), The

impact of project portfolio management on information technology projects, International

Journal of Project Management, 23(7), 524-537

Desouza, K.C. and Evaristo, J.R.(2006), Project management offices: A case of

knowledge-based archetypes, International Journal of Information Management, 26(5),

414-423

Haimes, Y.Y.(2005), Risk Modeling, Assessment, and Management, 2nd edition, John,

Wiley & Sons Inc: New Jersey

Herroelen, W. and Leus, R.(2005), Project scheduling under uncertainty: Survey and

research potentials, European Journal of Operational Research, 165(2), 289-306

Highsmith, J.(2010), Agile Project Management: Creating Innovative Products, Pearson

Education inc.: USA

Keller, R.T.(2006), Transformational leadership, initiating structure, and substitutes for

leadership: A longitudinal study of research and development project team performance,

Journal of Applied Psychology, 9(1), 202-210

13

Khang, D. B. and Moe, T. L. (2008), Success criteria and factors for international

development projects: A life-cycle-based framework, Project Management Journal,

39(1): 72–84

Lee, S.H., Pena-Mora, F. and Park, M.(2006), Dynamic planning and control

methodology for strategic and operational construction project management,

Automation in Construction, 15(1), 84-97

Pant, I. and Baroudi, B.(2008), Project management education: The human skills

imperative, International Journal of Project Management, 26(2), 124-128

Shen, L.Y., Tam, V.W.Y., Tam, L. and Ji, Y.(2010), Project feasibility study: the key to

successful implementation of sustainable and socially responsible construction

management practice, Journal of Cleaner Production, 18(3), 254-259

Tayles, M., Pike, R.H. and Sofian,S. (2007) "Intellectual capital, management

accounting practices and corporate performance: Perceptions of managers", Accounting,

Auditing & Accountability Journal, Vol. 20 Iss: 4, pp.522 – 548

Winter, M., Smith, C., Morris, P. and Cicmil, S.(2006), Directions for future research in

project management: The main findings of a UK government-funded research network,

International Journal of Project Management, 24(8), 638-649

14

Appendix I: WBS

Wind Turbines

ProjectPlanning

Definingconstraints

Defining scopeand goals andobjectives

Definingresource

requiremnets

Land acquisition

ProjectAssessment

Wind powerfeasibility

Environmentalevalaution

Estimatingcapaity ofturbines

Actualconstruction

and installation

Site preparation

Contractingwith

contractors

Estbalishmentof roles and

responsibiltiies

Procurementand

construction

Installation andwiring

Operations ofthe turbines

Mesuring theenergy

generated

Handover of theproject