The Background and Principles of Project Management - Assignment Example

Project Management SECTION 1. Describe the background and principles of project management Project management has been in trend since the end of 1980s although it is not, by any means, an uncomplicated trend. The attention devoted towards various means of guiding human activities has not declined over time in the managerial, academic or media circles. The development in the field of project management is very prominent in the service sector, public companies and mass production industries (Garel, 2014). Project management highlights the twofold issues of envisaging a future assignment and the act of initiating and henceforth, completing it.  Gaining control over certain unparallel and complex processes, that constitute a project, entails the application of certain project management techniques (Turner, 2007). Project management as a concept was introduced only a few decades ago. The management process was initiated by small businesses and organizations in the 60s, who began to recognize benefits of arranging the flow of activities around projects in order to realize the critical need to communicate and assimilate activities, across multiple divisions and professions. One of the best examples of sound project management approach was witnessed in case of construction of Hoover Dam in the United States, which led to the completion of the project 2 years ahead of schedule and well within the allocated budget, despite political, economical, technical and organizational obstacles (Kwak, et al., 2014). The first and foremost principle to be considered, in case of project management, is viability of the project. The management needs to decide whether the project should happen or not, by considering outcomes of the project as well as benefits and drawbacks associated with it. Secondly, the project manager should consider risks associated with the project as it is a very crucial factor that might affect the continuum of the project at any stage. The third principle is that cost, time and quality of the project are inter-dependent. This means that once the project has been initiated, its timeline cannot be altered without directly affecting the cost or quality of the project. The project plan should clearly outline all the required activities in order to complete the project. Only those management tools, that are relevant to the tasks, should be used as unnecessary usage of extra models could easily complicate the project (Croxall, 2011). 2. Appraise the viability of projects, developing success/failure criteria Conducting a feasibility study is a very important task as it forces a management to consider the big picture initially and then take the top down approach (Lohrey, 2014). The study can help the project manager to mitigate the risk, as far as project timeliness is concerned. With a very limited budget allocation and change initiatives, it is pivotal for a business to direct their focus towards factors, which reaps the greatest of benefits. Feasibility study offers an organization with a great way to manage the decision making process. As part of the feasibility study, a company normally conducts economic analysis that helps it to analyse the commercial base of the project; market analysis, which involves identifying the presence of an opportunity for the idea that the company wants to develop; technical analysis, that involves assessing whether the project can be completed with the available tools, processes, systems and facilities; location analysis, involving studying feasibility of the location, where the project is to be conducted; manpower analysis, that involves identifying the required workforce for the project; financial analysis, which involves analysing the budget plan; and finally, risk analysis, which involves forecasting the risk associated with the project in order to develop contingency plans. While taking a decision, a company needs to analyse all these factors, thereby balancing the risk and opportunity, in order to ensure that the project is feasible and can be conducted smoothly (Lop, 2011; Oracle, 2009). Project scheduling is another important factor ensuring the successful completion of a project, well before the established deadline. The importance of project scheduling rests in the fact that it helps a company to organize and complete a particular project in a timely and responsible manner, thereby ensuring a superior quality outcome. A competent and effective project scheduling plays a significant role in securing the success of a project. In order to keep a project on track, a company sets pragmatic time frames, manages the allocation of resources as well as its quality to decrease project errors. As a consequence, the company is able to reduce the cost and increase customer satisfaction (Duggan, 2014). A major example that can be cited in this case is the Florence Duomo project, which demonstrated an effective and adequate feasibility study, risk assessment as well as a robust project scheduling, which led to the successful completion of the project, although there were lots of constraints regarding time, scope, cost and quality (Kozak-Holland and Procter, 2014). 3. Explain the principles behind project management systems and procedures The purpose of a sound project management system is to guarantee project success, as far as meeting the schedule, budget and stakeholder expectations are concerned. The major principle of a project management system includes communication management, risk management and quality management (Kleijnen, et al., 2011). The primary rationale behind communication management is to facilitate efficient sharing of information at the right time with the right people and in the right format. A robust communication framework is established in order to facilitate communication of right information, which will contribute significantly towards ensuring the success of a project or in situations, where lack of communication may cause adverse effects. Communication management plans are developed by keeping the target public in mind. The communication management process involves three basic processes, which are identification, reporting and distribution. The identification phase involves identifying the right information that is to be shared as well as the right time and right people with whom the information is supposed to be shared with. The reporting phase involves collection and preparation of information and finally, the distribution phase involves the process of dissemination of the information. Quality management is done in order to ensure that the right activities are being performed, which are dedicated towards completion of the project. The quality management principle involves evaluating the requirements, assuring the developments and acceptance testing (Evans and Lindsay, 2011; Evans, 2011). The requirement evaluation phase involves assuring that all user requirements are being met appropriately (Brennan and Shah, 2000). The development assurance phase involves supervising the fact that the project, which is being conducted, is in complete compliance with the appropriate standards and development practices. The acceptance testing involves examining the fact that the business functions are actually meeting the end user’s requirements. These principles are followed by almost every established organization, whose vision is to uphold the reputation of the company, thereby achieving high customer satisfaction level. The procedures of a project management system involves initiating the project and thereafter, it is the project manager’s responsibility to carry the project successfully through to the end of the timeline. The project manager, thenceforth, has to propose the action plan to the partners and cooperate with them as well as keep track of the achievements that can be accrued from the project. From that point, the project manager has to guide all the project related activities, including contracts and clinical trials. Documents outlining the milestones are prepared and are applied for approval. Thereafter, the quality management, communication management and risk management plans are formulated and finally, the project is conducted upon approval (FIND, 2011). 4. Explain the key elements involved in terminating projects and conducting post-project appraisals Termination of a project forms the final phase of a project life cycle. This phase starts after the project work is complete and includes a range of action plans related to the close-down of a project. The underlying reason behind terminating a project properly is to gain knowledge from the experience gathered during the life time of the project, with a sole motive to enhance the performance on future projects. Thus, the actions concerning termination of the project should be clearly identified and incorporated within the project plan. This should be done with utmost clarity and not merely as afterthoughts. The activities relating to a project closure ranges from arranging and filing project documents, final payment transactions (both receiving and giving) to finally, post-project evaluation meetings conducted between contractors and the organisation (Century publishing, 2012). Post project appraisal is another crucial activity that is conducted on all projects. This activity helps a company to determine the extent to which the project has been able to meet the budget, timeline and the key deliverables promised within the project plan. The project appraisal phase is normally initiated 12 months after the successful completion of the implementation expenditure for a project. However, this timeline is expandable and depends upon the nature of the project. The post project appraisal is conducted by the project manager, involving identification of the final project cost, which is compared with the recent most allocated amount and the actual authorised amount. The explanation of all the variance should be duly noted. The manager also needs to identify the actual completion date of the implementation stage of the project and compare it with the latest authorised completion date and the originally authorised one. Any variances should be noted. The key deliverables are also compared with the latest and originally authorised key variables. The lessons that are learnt from this are implemented in the future projects (University of Exeter, 2013). SECTION 2 1. Identify the most appropriate organisational structure, roles and responsibilities of participants within a project Programmatic based (Source: Pm4dev, 2007) The main advantage associated with programmatic based project organizational structure is the existence of a clear line of authority. There is basically no need to consult other program divisions for resources, precisely because staffs recruited for the project comes from the same program area. Another advantage of this framework is that the team members are well-known to each other, again because of the same reason mentioned above. The major disadvantage of this framework is that the program area may not constitute the appropriate specialists needed to perform a specific job type. This hampers quality of the project considerably. Matrix Based (Source: Pm4dev, 2007) The matrix based project organizational structure facilitates efficient allocation of resources. This organizational structure offers a huge degree of flexibility to an organization, as far as adapting in accordance with the programmatic needs and priorities is concerned. In addition to that, it facilitates effective and rapid information sharing between team members across the unit boundaries and permits specialization, thereby increasing the depth of knowledge and facilitating an all round development of professionals. The main disadvantage associated with this organizational structure is that the reporting relationships are very complex. Project Based (Source: Pm4dev, 2007) Project based organization structure is prominent in organizations who conduct large and complicated projects. These projects can absorb the maintenance cost of an organization, whose structure is associated with some duplication of efforts and cost inefficient use of resources. Limited opportunities for knowledge sharing exist in these kinds of organizations, which is a complaint that is frequently received from team members. In addition to that, duplication of resources in different projects, due to inadequate resource availability, is also another disadvantage associated with this kind of organizational structure. Matrix based organizational structure is the appropriate organizational structure. Companies such as, Procter and Gamble, CISCO and IBM, follow this organizational structure (Galbraith, 2014). The role of the participants can be best interpreted by explaining the difference between project managers and program managers. Program manager Project manager Has a wide span of control, as far as job focus of the project is concerned. The primary responsibility of the program manager is portfolio management. The program manager ensures the availability of the required tools, systems and processes. The job challenges come in form of process development, orchestration and people management, fetching return on investment and process delivery as well as competing business strategies and objectives (Peisach, and Kroecker, 2008). Has a narrow span of control. The project manager is involved with project management. The project manager is associated with execution and implementation. The job challenges involve process compliance, time management and people coordination, time and budget constraints as well as conflicting project requirements. The rest of the staff just follows the guidelines and action plans outlined by the project and the program manager. 2. Control and co-ordinate a project The project manager is primarily responsible for taking the project through to completion. The individual, assigned with the role of project management, will have to take up the responsibility of supervising the project, right from its initiation phase till the execution phase and then, through to its conclusion phase. The project manager will have to work in close connection with the program manager and will have to develop a strong business case. The individual will be required to develop a feasible project plan, which will identify resources required for completing the project on schedule. The project manager will be responsible for reporting the status of the project to higher authorities and will also have to assess risk associated with the project and communicating the same to the board members (Project Smart, 2013). The project sponsor serves as a visible and vocal champion for the project. The individual is mainly responsible for establishing and validating the goals and objectives of a particular project that he/she is involved with. They are required to provide valuable oversight, support and direction to the project leader, which serves as robust tolls of guidance for team members. Another role of the project sponsor is to offer helpful assistance, in term of developing a strong business case, which enables the project team to identify benefits that can be accrued by the stakeholders and shareholders of the company. Furthermore, the assistance provided by the project sponsor also helps the project manager to evaluate the risks associated with the project. Lastly, the project sponsor is also responsible for assisting the project supervisor in order to develop the project metrics appropriately. The steering committee is mainly responsible for providing valuable assistance, in terms of resolving issues that mainly escalate beyond authority of the project manager. The steering committee comprises a number of members, who are primarily responsible for observing the progress of the project and reporting the same to their immediate superiors. Moreover, they provide the required tools and additional support, when the project milestone falls beyond the deadline. The team members involved in a project are majorly responsible for conducting activities that have been outlined in the project plan and ensure the fact that the project is completed well within the deadline and allocated budget. They are expected to understand the objectives and goals of a project as well as nature of the tasks that are assigned to them. They need to attend every project oriented meetings and also, need to participate actively in any conversation or discussion, concerning aspects of the project. 3. Assess project leadership requirements and qualities It is indeed true that the leadership requirements and qualities needed to conduct a business are somewhat similar to the leadership qualities and requirements for conducting a project. However, in practice, a certain degree of difference exists between the two leadership attributes. The major difference lies in the way workforce is managed. In case of a particular project management, the team that is pooled up might be a temporary one. The team members belonging to that group might be unfamiliar to each other. They might be working with each other for the very first time. This can raise many issues for the leader responsible for managing the project. In order to conduct and complete a project efficiently, working within the team, as well as along with it, is very important. Nonetheless, in case of a project, where team members are seeing each other for the first time, they tend to have problems coping with each others respective expertise. Each and every member has their own set of skills and it is the leaders duty to allocate people according to their skills and their relevance to the job type. Moreover, workers can be from different cultures, which might actually prevent some workers from co-operating with others from a different culture. Although this kind of set up has raised certain concerns for the project manager, yet it entails certain benefits. Since the group might be temporary, the project manager has the flexibility to recruit the right people for the right job, on the basis of their skills and their relevance to their project. When they would no longer be needed, they can be easily channelized in another project. In case of business, the workforce dimension is a little bit different. In this form of set up, the team is by and large a permanent one and group members, in most of the cases, are familiar with each other, thereby making management comparatively easier for the leader. They are well-informed about each others expertise and areas of strengths and weaknesses. Thus, they can work accordingly. Nonetheless, the problem lies in the fact that the area is static and scope of improvement is limited. The leader will have to make do with whatever resource is available to him and cannot adapt to the changing demands of a particular assignment. They cannot easily channelize their workforce from one assignment to another, without thoroughly evaluating the nature of the work and requirement for the workforce. This is because failing to do so would deteriorate the quality of work done (Shah, 2012). 4. Plan and specify human resources and requirements for a project Work breakdown structure is a pivotal segment of project management. It defines the activity that is to be performed and also, outlines the required engineering type and level, thereby setting up a foundation for controlling the project timeline efficiently. The matrix organizational structure offers efficient project execution environment for engineering and consulting firms. Within the matrix organization, all activities outlined under the WBS, are assigned to respective disciplines through work packages. In the respective discipline, the task assigned through the work package is shared between engineers and discipline managers. The success of a project depends largely on the equilibrium between managing discipline resources and allocating the functional experts. This segment involves the relocation of specific work volume in accordance with the skill level of engineers, where the discipline managers assign multiple engineers with different skills to share the same work volume. Henceforth, the work schedule is also relocated according to the skill level of engineers (Koshijima and Umeda, 2001). SECTION 3 1. Prepare project plans and establish the project organisation The Royal Logistic Corps provides logistics services to the British Army that includes shipping tanks and ammunition to letters and food (Royal Logistic Corps, 2014). The significance of this service needs no mention as this ensures the sustainability of the British Army from every aspect of their life. Thus, efforts are always made to ensure improvement of these services. As far as providing a superior quality logistics services are concerned, one dimension that does need a rigorous improvement is the customer service dimension of the Royal Engineers Postal and Courier Service. However, in this particular case, there is no specific issue regarding the existing customer service division, but the new project is regarding establishing a new 24/7 customer logistics service division, that will cater to provide emergency services to the end users. The emergency service will cater to serve those customers, who need to send or receive their parcel within a short span of time. Usually, it takes about 7-10 days for the overall logistic function to receive and deliver the package to the intended customer, but the emergency division will perform the same function within a span of 2-4 days. In addition to that, the emergency helpline will be available 24/7 to the British Army and their family in order for them to be able to send or receive packages, as and when required. In order to be able to do so, a new division has to be set up and new workforce has to be allocated. The project entails certain costs and is also associated with a certain degree of risk, which will be analysed in the budget allocation segment and the risk assessment segment in the following sections. To take the project through to its completion on schedule, a project organization has to be established, that will outline the key members who will be involved directly with the project. Project organization 2. Apply project scheduling, estimating and cost control techniques Project schedule (Source: Author’s creation) Budget allocation plan Activities FHY1 SHY1   Labour Material Other FY Total Limit Labour Material Other FY Total Limit Develop Project Charter $50,650 $0 $0 $50,650 $55,650 $0 $0 $0 $0 - Develop Project Control Plan $40,450 $0 $0 $40,450 $50,000 $0 $0 $0 $0 - Work force recruitment $0 $0 $350,000 $350,000 $360,000 $0 $0 $60,000 $60,000 $65,000 Conduct training $0 $100,000 $25,000 $125,000 $130,000 $25,000 $0 $25,000 $30,000 Performance evaluation $0 $0 $0 $0 - $20,000 $0 $0 $20,000 $25,000 Follow up session $0 $0 $0 $0 - $10,500 $0 $0 $10,500 $14,000 Total $91,100 $100,000 $375,000 $566,100 $590,000 $55,500 $0 $60,000 $115,500 $134,000 Total Project Budget $681,600 Extended limit $724,000 3. Analyse the methods used to measure project performance CPA for the project (Yang and Kao, 2012; Mei and Zhangxi, 2006) Table Layout format EST DUR EFT ACT Where, EST – Earliest Start time DUR – Duration EFT – Earliest finish time ACT – Activity Estimated finish time = Estimated start time + Duration (Chen, 2007; Lu, Lam and Dei, 2008). The critical path depicted in figure 2 denotes the longest route to complete the project. In the case of this project, the critical path is: 1 – 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10 – 11 – 13 – 14. Total duration of the project (in days) = 249 days Slack Going by the critical path diagram presented above, it can be seen that a slack (also known as the float time, which refers to a period of delay) can be identified, in case of activity 2 and activity 12. According to the rule specified under the critical path method, the slacks should be eliminated from the critical path of a project (Chen and Hsueh, 2008; Skaggs, 2011). This is done in order to give an extended flexibility to slack activities, so that they can be completed within the stipulated deadline of the following activity. Thus, in compliance with the rule, the activity that has a slack has been omitted from the critical path and henceforth, that task is to be completed within the deadline of the immediate next task. This extra amount of days available to the activity is the slack or period of delay. This gives an estimation of the extra time available to complete that activity. As far as activity 2 is concerned, the float time is 0 days, which suggests that the activity cannot be delayed by any means. On the other hand, activity 9 has a slack or float time of 5 days. This indicates that this particular activity can be delayed for a certain period of time, without affecting the overall schedule, which has been planned for the project. Nonetheless, from the project’s and the company’s point of view, it is always prudent to complete the task well ahead of the deadline, in order to have adequate time for tackling any barriers that may arise (Friedman and Seaton, 1998). A common matrix has also been established that outlines the reporting authority, which will be majorly responsible for communicating the project and budget status reports to the intended recipient. Communication matrix Factors Detail Reporting authority Recipient Mode of communication Project Status Project stage and completed assignments Project manager Project executive, supervisory board Face-to-face, email Work progress Tasks and activities being conducted and barriers to them, if any Team lead Project manager Face-to-face, email Budget status Funds used and available funds Project manager Project executive, supervisory board Face-to-face, email 4. Explain project change control procedures The first and foremost step in change control is to document and categorize the necessary change with regard to the importance of these changes and the likeliness of each element impacting the project. The complex factors, which might affect the outcome of the project, are also included within the change control procedures (Wang, et al., 2008; Hwang and Low, 2012). It is the responsibility of the project manager to assess the changes and formulate a risk evaluation and treatment plan in order to study the impact that the change may have on the project and the environment (Stasis, Whyte and Dentten, 2013; Sakka, Barki and Cote, 2013). The stakeholder and team members are, thereafter, informed regarding the modifications that are required in order to secure viability of the project. Meetings are organized between the team members and stakeholders, so as to help them adapt to the changes and thus, tackle the change resistance (Lindkvist, Stasis and Whyte, 2013; Bröchner and Badenfelt, 2011). The manager and the team members can formulate strategies regarding the modifications that are to be done, thereby guiding the rest of the team through the specific requirements, that are needed to initiate the modification process (Tang, Liu and Sun, 2014). The major changes that are required are executed and tested, before they are finally implemented. Everyone involved with the project provides valuable reviews regarding the appropriateness of the change, the cost of making the change as well as the time required to initiate the modification process. This is done within the testing phase. Once these reviews and the changes to be made are approved, the change control process is initiated (Isaac and Navon, 2009). As far as the project plan developed in this study is concerned, implementing a project change control procedure is very important because changes that are made within a project can significantly affect the cost, schedule and resource allocation. Moreover, internal and external factors also have a certain degree of impact on a project and thus, for a project of such magnitude, a change control procedure is of utmost importance. By doing so, the company can assure that the project is finished on schedule and within the allocated budget and resources (Canonico and Söderlund, 2010; Alsene, 1999). 5. Evaluate the completed project Scopes of the project The successful completion of the project will enable Royal Logistic Corps to provide a superior quality logistic service to the British Army. The company will be able to manage the supply chain in a better way. The project will enhance the customer service division of Royal Logistic Corps. The project will lead to the formulation of a 24/7 emergency logistics division, that will provide fast track logistic support to the British Army. The project will also lead to the acquisition of more transportation medium, which can be used to lessen the delivery period of normal logistic service. This in turn will prove to be helpful for customers not seeking the fast track service. Risks associated with the project The training provided to the staff is not up to the mark. The emergency 24/7 logistic support service is not availed by many, which will lead to a severe loss. Customers might not be satisfied with the quality of service provided. The delivery time is not achieved as promised. Recommendations They should hire a reputed training and development institute in order to provide well-developed training to the support executives. The company should collect feedback from customers in order to improve the services, as and when required. 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