Jubilee Line Extension Project Management - Assignment Example

Project Management Task 1 1.1 Background and the Principles of Project Management in Relation to Jubilee Line Extension Project 1.1.1 Nature of the Project and its Objectives Traditionally, most of the organisations used to possess a pyramidal hierarchy and organisational structure. This principle of project management was mainly noticed amid the stable organisations. However, this specific principle is deemed to be ineffective within such organisations that demand higher degree of unpredictable environments and changes. Thus, in the current project of new trains and tunnels for Jubilee line extension, there lays the requirement of establishing a dynamic working environment (Jones & et. al., 2004). This dynamic working environment of the project is characterised by collaborative approach of all the stakeholders involved with the same. In this regard, for effective designing of the current project, there also requires ensuring the participation of all the members engaged in the same. These members must include the suppliers and the sub-contractors among others. This collaborative approach of project management is notable in the projects of Olympics 2012, Heathrow t5, Sidney Opera house and others. Specially mentioning, in order to ensure effective planning and designing process to the current project, a computer-generated programme is established. This computer-generated programme would consider the goals of the project, the specified work task, budget and working schedules. Furthermore, the project manager of the current project would pay utmost attention on ensuring the completion of the project tasks within a definite time, which is also duly considered to be one of the chief principles of project management (Choudhury, 1988). 1.1.2 Reason for Implementation The reason behind the implementation of the current project is to improve the connectivity of London through reducing the barrier of Thames. It also attempts to improve certain factors that include access to the inner areas of London, attracting inward investment, unemployment reduction and expansion of London’s commercial hub. 1.1.3 Principles There are certain principles of project management that are significantly applicable in the current project. These include the commitment principle and the success principle, wherein every stakeholders of the project should have the commitment for the successful completion of the project. Another principle of project management includes strategy principle, wherein planning is considered as the most important and primary step. Moreover, thread off principle of project management is considered as the combination of both commitment principle and success principle. Another principle includes the control principle, wherein the prime importance provided to the policies and procedures of the project. Single point responsibility is a common phenomenon in most of the projects in which an individual is responsible for every aspect of the project. Furthermore, another principle of project management is the cultural environment principle. In this regard, planning of projects, execution and others are aligned with the community environment and environment law (Choudhury, 1988). 1.2 Appraisal of the Viability of the Projects Related to Golden Ltd 1.2.1 Appraisal through NPV and ROI Determination of the viability of a project is highly important. This is because it assesses the success of the project. Moreover, it also determines the worth of investment made towards completing the project within a specific period. This assessment of the performance of s project is evaluated through two techniques. These include Net Present value (NPV) and the Return on Investment (ROI). The NPV value for project A is calculated as (£ 108,952.31) and the net present value for project B stood at (£ 90,092.91). This negative value suggests that the projects are not viable in the form of providing any profit to Golden Ltd. Apart from this, the ROI of the projects is also examined to be quite discouraging in terms of making investments. In this regard, the ROI of project A stood at 0.22 and that of project B is 0.30. The prime reason for the discouraging NPV as well as the ROI values is the comparative lower cash inflow to that of the initial investments. The underneath tabular representations depict the calculation of NPV values relevant to Project A and Project B of Golden Ltd. Figure 1: NPV Calculation of Project A Figure 2: NPV Calculation of Project B Figure 3: ROI Calculation of Project A Figure 4: ROI Calculations of Project B 1.2.2 Recommendations Considering the low NPV and the ROI value, it is recommended that the investors should not invest in the respective projects. This is because the investments would not yield desirable return to them. However, it is also recommended that if the organisation i.e. Golden Ltd. is able to increase its cash inflow from investments, the NPV and the ROI values of the two projects are deemed to get increased (Jones & et. al., 2004). Moreover, in order to increase the cash inflow within the projects, it is also recommended that the organisation must align the projects with its predetermined objectives. This would certainly lead the projects towards attaining greater success in future. Furthermore, another success criterion, which is recommended in the current project, is making greater improvement in the leadership styles or qualities of the project manager. Justifiably, effective leadership would increase the effectiveness and the efficiency of the projects by lessening the project costs and increasing the profitability level through increased level of cash inflow (Kloppenborg, 2011). 1.3 Explanation of the Principles behind Project Management Systems and Procedures related to Jubilee Line Extension Project 1.3.1 Principles of Project Management Systems and Procedures There are certain principles related to project management systems and procedures based on which the viability of a particular project can be measured. In this regard, each of the departments undertaking a project possesses separate roles along with objectives. These departments do not concern for the decisions of other organisations. However, in the modern era of project management, several organisations are noted to include all the departments including Finance, Marketing, Operations, and others in the decision- making procedure. This approach or principle of project management can also be related with the current project of Jubilee line extension. Moreover, the current project also witnesses the other principles of project management. One of such principles includes the completion of the project within the predetermined period. This on time completion of the project significantly aids in lessening costs at large. This is because of the increasing inflation rate, labour costs and inventory expenses. Apart from the above discussed aspects, the other principle of project management also suggests of the importance of maintaining desired project quality. This superior quality of the project also implies the possibility of making a project to attain success in future. Moreover, another principle behind project management and procedures is the maintenance of predetermined budget. The increase in the budget of a project within the course of time endangers effective completion of the same (Meredith & Mantel, 2011). Besides the above discussed principles, another principle of project management that ensures effective completion of the same is the risk management. It is identified that in the course of a project, there lays the evolution of certain predetermined risks. These risks often act as barriers towards the smooth completion of a project (Heldman, 2011). Thus, the success and also the viability of the Jubilee Line Extension project relies mostly on the aforementioned principles that are associated with project management based systems along with procedures (Lewis, 2007; Jones & et. al., 2004). 1.3.2 Project System and Procedure Management Software There are certain tools of project management including Microsoft Project Management and others that are extremely supportive to the project manager for effective planning and execution of the project. Moreover, the project manager or general manager needs to consider the visibility of project, resource and metric through the support of software for implementing effective project management systems and procedures (Lewis, 2007; Jones & et. al., 2004). 1.4 Explanation of the Key Elements Involved in Terminating Projects and Conducting Post-Project Appraisals with Regards to Jubilee Line Extension 1.4.1 By Integration Projects also get terminated because of varied reasons and under certain special circumstances. In relation to the current project of Jubilee Line Extension, there lay certain concerns that might influence the project to get terminated. In this regard, one of the key elements is the integration, wherein one project merges with another. This leads to the termination of the original project. One of the notable instances of project merge is the Tata Corus(Jones & et. al., 2004). 1.4.2 By Extinction Projects are also terminated due to the inability to meet the objectives. In this regard, the inability to maintain desirable project quality largely influences on terminating the project. The increased level of project costs is also one of the key elements that lead towards the termination of the projects. This increase in the costs is largely due to the delay observed in completion of a project. It is worth mentioning that the high inventory costs also contribute in raising the overall costs of the projects (Jones & et. al., 2004). 1.4.3 By Starvation Besides these, it is notable that termination of projects occurs due to starvation. It is often observed in this context that the financial support as well as worthiness is regarded as one of the key elements, which may have contribution in terminating projects. For instance, the NPV and the ROI values of the two projects of Golden Ltd. are found to be discouraging. Moreover, by determining such values, it is estimated that the two projects of Golden Ltd are comparatively less worthy. This could be one of the major reasons based on which the above stated two projects of Golden Ltd might get terminated. This certainly discourages the potential financers to invest more, resulting in terminating projects (Jones & et. al., 2004; Field & Keller, 1998). Task 2 2.1 Organisational Structure, Roles and Responsibilities within Jubilee Line Extension Project 2.1.1 Proposed Organisational Structure Traditional hierarchical form of organisational structure can be apparently observed in different project management programmes. In the modern form of project management, the top management officials often undertake vital decisions. Moreover, as this form of organisational structure is deemed to be highly departmentalised, thus, the managerial bodies of such departments exclusively consider the decisions made by each department. There are different forms of organisational structures including programmatic, functional, matrix and others. However, in the current project, it is important that several individuals of different departments undertake the decisions. This form of organisational structure is commonly known as Project Based Organisational structure. This form of organisational structure demands for a vertical arrangement wherein the decisions of different departments and employees are duly considered (Lester, 2007; Jones & et. al., 2004). The underneath diagram depicts the project management organisational structure. Source: (Bobera, 2008) The above depicted type of organisational structure is highly effective for the current project i.e. Jubilee Line Extension, as it possesses certain specified goals and targets towards completing the same successfully within a definite time. Moreover, this type of organisational structure is supportive in nature considering the importance of gains and losses attained through any project. Moreover, in this form of organisational structure, the organisation gets benefitted by forming effective communication between different departments. It is worth mentioning that the extent of collaboration among different departments in such form of organisational structure is witnessed by the involvement of the suppliers and small contractors in the decision- making procedure (Kerzner, 2013; Jones & et. al., 2004). Thus, it is asserted that the project organisational structure is the most suitable form of organisational arrangement that would support in successful completion of the project. 2.1.2 Roles and Responsibilities of the Participants The project organisational structure generally comprises certain key participants. These include Engineering Manager, Product Manager and Marketing Manager. In this regard, the major role and responsibility of Engineering Manager is noted to be supervising different aspects of the project that entail electrical engineering, mechanical engineering and materials engineering. On the other hand, one of the chief roles and responsibilities of Product Manager involve supervising the Plant Manager. The Plant Manager has the responsibility of quality maintenance and inventory management. Another important participant in the organisational structure of the current project is the Marketing Manager. The responsibilities of Marketing Manager comprise promoting products, looking after sales and conducting appropriate market research. Furthermore, it is also worth mentioning that the General Manager supervises all the activities that are conducted while undergoing through a project in the form of constantly monitoring the roles play by the Engineering Manager, Product Manager and the Marketing Manager (Kerzner, 2013; Jones & et. al., 2004). Participant Roles Responsibilities General manager Supervising engineering manager, product manager, and marketing manager Every aspect of the project Engineering manager Supervising electrical engineer, material engineer, and mechanical engineer Managing every aspect of engineering Product manager Supervising plant manager, quality control and inventory management Managing every aspect of product Marketing manager Executing effective promotion, sales and market research Managing every aspect of marketing 2.2 Jubilee Line Extension Project’s Control and Coordination For ensuring smooth completion of the current project of Jubilee Line Extension, it is important to establish an effective control and coordination regarding every aspect related to the project. This would certainly assist in raising the effectiveness as well as the efficiency level of the project. Subsequently, it would help the potential investors to earn more profits. In this regard, one of the decisive aspects for effective control and coordination of project is the identification of suitable resources. This includes better functioning of the suppliers and the other project participants (Jones & et. al., 2004). Justifiably, identification of appropriate suppliers is extensively important for controlling as well as coordinating a project like Jubilee Line Extension; as such suppliers usually get involved into providing quality raw materials with reasonable prices. Apart from this, the project control and coordination of the current project would also be determined by the maintenance of delivery dates and the completion of each objective within a pre-defined period (Choudhury, 1988). In order to maintain greater level of coordination and control within the project of Jubilee Line Extension, it is important that the Engineering Manager, Product Manager and the Marketing Manager along with the General Manager undertake certain effective strategies so that the overall functioning of the project could get developed as per the desired requirements. In this regard, as a project manager, there lays the requirement to provide adequate and appropriate power as well as authority to all the participants involved with the project with regards to perform their respective roles efficiently (Jones & et. al., 2004). This would eventually support in maintaining effective control and coordination of the stated project. It must be mentioned that the collaborative approach prevailing amid the participants would support in making effective decisions, which in turn, will assist in making the stated project to get controlled as well as coordinated in an efficient way (Choudhury, 1988). 2.3 Assessment of Jubilee Line Extension Project’s Leadership Requirements and Qualities 2.3.1 Integrity For successful completion of the current project of Jubilee Line extension, there lays the requirement of establishing certain leadership qualities. One of such essential qualities of the project leaders is reckoned to be having proficiency in problem solving skills. It is worth mentioning that in the course of the project continuation process; there often lays the possibility of raising certain crucial issues (Jones & et. al., 2004). These issues may include internal conflicts and barriers from varied external factors among others. These issues generally possess the tendency of restricting the project from being smooth completion. In this particular situation, the leadership quality concerning problem solving skills would be vital to consider (Kloppenborg, 2011). 2.3.2 Enthusiasm Another important leadership quality, which is deemed to be highly important to the current project, is the team building ability. In this regard, it is evident that the current project of New Trains and Tunnel Jubilee Extension requires the participation of several stakeholders (Jones & et. al., 2004). Hence, the incorporation of effective leadership quality including team building approach will support in attaining the project goals. Moreover, another important quality of the leaders in the current project may include the establishment of enthusiasm amongst the leaders, as the project demands for combined corporate efforts towards attaining the predetermined project objectives (Kloppenborg, 2011). Thus, the leadership quality of enriching enthusiasm among the employees and the labourers would improve the efficiency and also the effectiveness of the project, making the same to attain greater success in future. 2.4 Human Resources Requirements for Jubilee Line Extension Project In the objective of effective completion of the current project of Jubilee line extensions; there is a significant requirement of effective human resources managements. Evidently, one of the major objectives of human resources management (HRM) is to plan and specify the exact personnel required for completing a project. In this regard, staffing is one of the major responsibilities of the human resource professionals engaged in the current project. In this regard, appropriate recruitment of employees or staff acquisition may lead towards the improvement of the quality of the project. Furthermore, the human resources also possess the responsibility of providing effective training to the employees. Training to the employees under the supervision of Engineering Manager is highly important. This is because of the requirement of high technical specificity amongst the employees while conducting several activities under the supervision of Engineering Manager (Field & Keller, 1998). The human resource professionals also have the responsibility of motivating the employees by offering them with monetary as well as non-monetary rewards. This is extremely important in the current project because of the necessity of obtaining extreme efforts from the employees involved with the project in order to complete the same within a predetermined schedule (Jones & et. al., 2004; Field & Keller, 1998). Task 3 3.1 Preparation of Jubilee Line Extension Project’s Plan and Organisation For successful completion of the current project, there is also a requirement of establishing effective planning and organising at the initial stages. In this regard, from a generalised approach, the initial step of planning and organising a project is setting its desired aims as well as objectives. This stage is often being followed by initiating all the requirements in the early stages of the project (Crown, 2010). In this step, effective project designing is prepared through the support of the entire stakeholders involved with the project. In such step, a project manager on behalf of an organisation is able to determine the viability of the project. This measurement of the viability of the project is extremely important from the perspective of making judgements regarding the making of investments (Jones & et. al., 2004; Field & Keller, 1998). The third step of planning and organising in relation to the current project is its effective execution. In this regard, effective implementation of the project design is required to be executed. In the implementation process, there is a requirement of ensuring effective project control and coordination amid all the stakeholders involved with the project. This control and coordination amongst the stakeholders would be maintained by developing the leadership skills of top managerial bodies including the General Manager and others (Crown, 2010; Jones & et. al., 2004). The fourth step in the planning and organising of the current project would mainly involve the closing of the same within pre-determined time and quality. This step of a project is highly important, as on-time completion helps in lessening project costs by a certain degree (Crown, 2010). However, in the project planning process of the current project, the final step is the realisation and the experiencing of the benefits derived from the effective completion of the project. In this step, the organisation plans to experience the cash inflow from the Jubilee Line Extension (Jones & et. al., 2004). The underneath graphical representation depicts the planning and organising steps of the stated project. Source: (Crown, 2010) 3.2 Application of Project Scheduling, Estimating and Cost Control Techniques in Jubilee Line Extension Project In the current project of extension of the Jubilee Line, there is a requirement of understanding the project scheduling, estimations and cost control. This can be fulfilled by following certain techniques. For ensuring effective project scheduling, Milestone charts and Gantt Charts are deemed to be effective. Milestone charts are used to determine the critical activities that delay a project. The application of such techniques would reduce the possibility of project delay (Crown, 2010). Moreover, Gantt chart is also applicable in the current project, as it determines the time scale of each activity required to be performed for completing a project. It also determines the dependency of each activity on others (Lewis, 2007; Jones & et. al., 2004). There are certain cost control techniques, which are applicable in the current project. These include planning and proper budgeting. It also includes the tracking of cost of activities. This would support the organisation in reducing the costs of the project during the implementation process (Crown, 2010). Moreover, effective time management is also one of the decisive techniques for reducing the project costs. On-time completion of the project also reduces the influence of inflation and high inventory costs (Crown, 2010; Jones & et. al., 2004). The underneath pictorial description depicts the milestone chart of Jubilee line extension project. Figure: Milestone Chart 3.3 Analysis of Jubilee Line Extension Project’s Performance Measurement There are certain measures that are widely applicable in evaluating the performance of the current project. One of such decisive tools is the management by objectives. This technique is useful in measuring the performance of the employees and the labourers involved with the project. Another useful technique in measuring project performance is the graphics rating scale. In this technique, rating from 1 to 5 is being used to judge the feedbacks provide by the involved parties of the project, based on which effective decisions could be made. Thus, this technique of evaluating project performance can be related to the current project of Jubilee Line Extension (Crown, 2010). Apart from this, another technique of forced ranking is also applicable in the current project. In this technique, employees are evaluated based on their past performances. This technique of performance measurement is highly criticised. However, it provides the opportunity to the organisations in improving the performance of each of their respective employees. Thus, this technique is equally applicable to the current project (Lewis, 2007; Jones & et. al., 2004). Besides the above techniques of performance measurement, certain more techniques are equally applicable in the current project. One of such is the measurement of productivity of the employees and the project. It also includes the estimation of return on investment. Moreover, employee satisfaction, cost performance and customer satisfaction are also considered as a decisive tool for measuring project performance. The attainment of strategic goals also determines the performance of the project (Lewis, 2007). 3.4 Explanation of Project Change Control Procedures in Jubilee Line Extension Project It can be affirmed that the current project of Jubilee Line Extension is vast and thus incurred extensive level of financial investments. Thus, there is the probability of determining that the project would require certain desirable changes at certain situations. Specially mentioning, for effective change control of the current project of Jubilee Line Extension, there are certain steps that need to be followed (Jones & et. al., 2004). In this regard, the first step is reckoned to be proposing for making changes. This provides the opportunity to any individual within the team to propose for making any sort of change. The second step is the summary of the impacts on such changes. These impacts are considered on legal grounds, cost to the organisation, timescale, requirement of resources and associated risks among others (Crown, 2010). The third step in the project change control is making effective decisions relating to change. This decision for change is generally based on four types. These include the acceptance of change and rejection of the same. It also includes acceptance for change with special conditions and deference of the same. The subsequent step for change includes the implementation for change. In this regard, when a specific change gets approved, it is eventually scheduled and correspondingly implemented through the support of the engaged stakeholders. The final step in the change control procedure is the closing for change. This subsequently occurs with effective implementation of the change procedure (Lewis, 2007; Jones & et. al., 2004). References Bobera, D., 2008. Project Management Organization. Management Information Systems. Vol. 3, No. 1, pp. 3-9. Choudhury, S., 1988. Project Management. Tata McGraw-Hill Education. Crown, 2010. Guidelines for Managing Projects. Department of Business Innovation and Skills. [Online] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31979/10-1257-guidelines-for-managing-projects.pdf [Accessed on April 3, 2015]. Field, M. & Keller, L. S., 1998. Project Management. Cengage Learning EMEA. Heldman, K., 2011. Project Management JumpStart. John Wiley & Sons. Jones, P. & et. al., 2004. The Jubilee Line Extension Impact Study: Main Findings and Lessons Learnt. Associaltion of European Transport, pp. 1-23. Kerzner, H. R., 2013. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley & Sons. Kloppenborg, T., 2011. Contemporary Project Management. Cengage Learning. Lester, A., 2007. Project Management, Planning and Control: Managing Engineering, Construction and Manufacturing Projects to PMI, APM and BSI Standards. Butterworth-Heinemann. Lewis, J. P., 2007. Fundamentals of Project Management. AMACOM Div American Mgmt Assn. Meredith, J. R. & Mantel, S. J., 2011. Project Management: A Managerial Approach. John Wiley & Sons. Read More