Project Management 1 After Amendment

Project Management

Project Management Page 1

Table of Contents

Table of Contents.......................................................................................................................2

Introduction................................................................................................................................3

1.1 Identify Projects Required from an Appraisal of Established Business Objectives............4

1.2 Produce Project Sub-division and High-level Estimates of Time, Resources and Cost......5

1.3 Evaluate a Project Methodology Suitable for Specific Project............................................8

1.4 Assess the Feasibility of a Proposed Project........................................................................9

2.1 Devise a Structure for the Management and Administration of the Project......................10

2.2 Defines the Roles and Responsibilities of a Project Manager...........................................11

2.3 Prepare a Detailed Project Plan..........................................................................................12

3.1 Assess Alternative Project Team Structure........................................................................13

3.2 Demonstrate the Interpersonal Skills Required for Effective Project Management..........15

3.3 Design Quality Management Processes to be used in a Project.........................................16

3.4 Design Procedures for Managing Project Change Proposals.............................................17

4.1 Identify Issues and Risks that may impede a Project.........................................................19

4.2 Design systems for Monitoring and Appraising the Status of a Project............................20

4.3 Design Control Systems to Detect and Manage Issues Arising in the Course of Project. .21

5.1 Identify Issues and Risks likely to be encountered in the Final Stage of a Project............22

5.2 Assess the Necessary Project Tasks to be completed in the Final Stage of a Project........23

Conclusion................................................................................................................................24

Bibliography.............................................................................................................................25


Introduction

The business environment and activities are getting complicated day by day and thus

achieving business objectives become very difficult also. To achieve objectives business

engages it’s both financial and non-financial resources. Without proper management business

may fall into acute problem. Project management deals with the planning, organizing,

securing, managing, leading and controlling of resources to achieve specific goals. Project is

undertaken to achieve a unique goal, to bring beneficial change and to add value within the

resources, time, quality and budget constraints. Activities related to project management is

quite different from general management because it requires development of distinct

management strategies and technical skills. This paper is prepared for a Cafeteria project

starts with defining objectives and alternative project analysis. At the very beginning of the

project various methodologies are analyzed to select required one. Like every project there is

a project manager who has to play several roles like divide the project in accordance with

time, resource and budget. All of his authority and power related to make decision and

coordinate project work with project team is responsible by defining responsibility and

accountability of the team members. It also includes appropriate monitoring systems to

respond with any issue and risk it is required to develop. At the end of the life-cycle of it is

closed by preparing proper documents and reports to avoid further risk.


1.1 Identify Projects Required from an Appraisal of Established

Business Objectives

Project initiation is the very beginning stage of project management. At this stage nature and

scope of the project is determined and the success of a project is based on how well the

project is initiated. It is important to identify business needs, analyze and understand the

environment. The business currently has 1,250 employees on its site in the Midlands and now

it requires a catering project to give service at the time of lunch. Ground floor will be the best

location for establishing a Cafeteria with a capacity of 500 employees. This project is

initiated two achieve two business objectives.

1. To reduce staff movement from the premises during lunch.

2. To help staff by developing a healthy lifestyle.

To achieve the first objective employees should be divided into three group and their

schedule of lunch time will be as follows.

Group 1 12:15pm - 12:40pm

Group 2 12:50pm - 01:15pm

Group 3 01:25pm - 01:50pm

To achieve second objective better food and service is to be provided to the employees so that

company ensures healthy and better life style of the employees.

At the initiation stage of this project includes a detailed analysis of business needs to achieve

the goal, an observation of current operation systems, financial and budgetary cost and

benefit analysis, stakeholder and support personnel analysis, an analysis of alternative

projects and a schedule and a charter of project including cost. (Cleland, 1990)


1.2 Produce Project Sub-division and High-level Estimates of Time,

Resources and Cost

This project is to be carried out by project management team and the team for the purpose of

their efficiency increasing and complicated nature of project divide the project in terms of

various factors.

To assign work to the team whole works of the project is divided in different parts.

To identify timescale and assign work to complete the project within predetermined

timeframe.

To identify different source of resources and to collect and allocate these at the very

beginning stage of project.

To guide the project work accomplishment with the support of budget by indicating

what to do, when to do, where to do, how to do.

To take further project decision and create accountability within the working process.

(Grey, 2005)

At the beginning it is required to estimate the cost to open a cafeteria and identify direct

(material, labor, equipment etc.) and indirect (temporary shade, tools, training etc.) costs. An

estimate budget of the project is figure out here in this section.


Project Budgeting

Cost of the Project has been Estimated at a Total of 120,000.00

Particulars Amount (£)

Cost of Preparation of Site £ 35,000.00

Plant & Machineries (Kitchen Equipment, Service Equipment) £ 65,000.00

Other Fixed Assets (Furniture, Air-conditioning, Exhaust, Computers etc.) £ 8,000.00

Preliminary and Pre-operative Expense £ 12,000.00

Total £ 120,000.00

This required will be financed from company's own fund (capital and surplus reserve).

Preliminary and Pre-operative Expense


Legal and Security Fees 1,000.00

Project Report Preparation 500.00

Establishment Expense 500.00

Electrification & Water Supply 3,000.00

Inauguration & Other Expenses 5,000.00

Telephone Deposit 2,000.00

Total 12,000.00

Manpower Requirement

ParticularsNo

.Monthly Salary (£) Total Monthly Salary (£)

Supervisor 1 1,225.00 1,225.00

Skilled Workers (Cook) 2 1,180.00 2,360.00

Semi Skilled Worker 5 1,040.00 5,200.00

Accountant 2 1,785.00 3,570.00

Other Staff 5 780.00 3,900.00

Total 15 £ 16,255.00



Sales Budget

Meal Breakup Daily

Covers

Average Bill per Person

(£)

Daily Sales (£)

Monthly Sales (£)

Cost Per Month* (£)

Monthly Profit (£)Time

WiseItem Wise

Lunc

h

Food

Only1250 £ 3.50 £ 4,375.00 £ 131,250.00 £ 107,380.00 £ 23,870.00

Cost Per Month


Cost of Food (1250×30×1.75) 65,625.00

Salaries Expense 16,255.00

Utilities Expense 7,800.00

Depreciation Expense:

Site Building @ 10% 7,000.00

Plant & Machineries @ 20% 13,000.00

Other Fixed Assets @ 15% 1,600.00

Total 107,380.00

Profit Margin = 23,870.00

131,250.00 × 100 = 18.19%

Return on Investment = 23,870.00120,000 × 100 = 19.89%


1.3 Evaluate a Project Methodology Suitable for Specific Project

There are several methodologies available for outlining a project. The most common and

widely used methodologies are Traditional Approach, PRINCE2, Critical Change Approach,

Event Change Approach etc. Traditional Approach is used when project will go through

stages like pre-planning, conceptual design, schematic design, design development,

construction drawing and construction administration. PRINCE2 describes designs and

supervises the procedures of a project for coordinating project activities and personnel by

providing a common language for all participants. Critical Change Approach is designed to

deal with uncertainties which are inherent in the project and consider limited availability of

the resources. Event Change Approach focuses on the identification and management of

events which affect project schedules to mitigate the negative impact of psychological

heuristics and biases and uncertainties as well. This project is developed on the basis of

traditional approach.


1.4 Assess the Feasibility of a Proposed Project

There is significant difference between planning a project and implementing a project with

success. It is very common that a properly planned project may not be feasible. While

preparing a project plan it is required to assess the feasibility of the project. In order to open a

new canteen for the employees it is important to look closely at the systems and process of

the project. To implement this project there is involvement of physical, technological and

human resources. Unlike human and physical resources, it is easy to manage technological

resources because of their automation. Every single component of resources is essential for

the completion of the whole project with their limited contribution. Again construction

project is different from other project in term of planning, designing, perspective of owner

and architecture. Construction project suffers from incomplete and poor planning. For the

successful completion of this canteen project it requires sufficient knowledge about the

various areas of management including personnel management. To become feasible this type

of project should be carried out by trained professionals who have sufficient knowledge and

possess sufficient practical experiences.


2.1 Devise a Structure for the Management and Administration of the

Project

Earlier it is mentioned that this project is developed on the basis of Traditional Approach and

in this section it will be discussed in detail. Traditional Approach of project management is a

sequential order of project accomplishment. There are five identified steps: initiating,

planning and designing, executing, monitoring and controlling, and closing. Every project

does not go through all these steps because project may be terminated before completion or

there may lack of monitoring and controlling. This Cafeteria project focuses into the first four

steps because it will continue with proper monitoring and controlling. It will enhance the

quality of the project because of its flexible nature and allow project manager to react

immediately during any contingency. Traditional Approach can be shown as following

diagram.

Figure 1: The Traditional Approach (Davis, 1983)


Planning and DesigningInitiation

Monitoring and

Controlling

ClosingExecuting

2.2 Defines the Roles and Responsibilities of a Project Manager

Project manager is the lifeblood of every project because future of a project depends on the

direction of him. He has to play many roles and perform several duties for the successful

accomplishment of a project. To implement this project manager has to perform following

roles and responsibilities.

Prepare a budget and schedule of the project on preliminary basis.

Identify appropriate people to serve project team.

Try to identify availability of proper facilities.

Ensure availability of resources in a project.

Monitor and take care of the progress of project routinely.

Identify and Analyze risks and assess their impact on the completion of project.

Communicate with various parties to keep their stake protected and to mitigate

misunderstandings and conflicts. (Norrie, December 2004)


2.3 Prepare a Detailed Project Plan

A project may fail to achieve its objectives without careful planning. This project includes

description of plan, pre-requisites, external dependencies, planning assumptions, Gantt/Bar

chart showing, financial budget, requirement of resources etc. This project plan is gone

through the following steps:

Figure 2: Project Plan


Project GoalsTo reduce staff movement from the premises during lunch

To help staff by developing a healthy lifestyle

Supporting PlanHuman Resource Plan, Communications Plan, Risk Management

Plan etc.

Project Deliverables Delivers the project plan with specified time period

Project ScheduleCarry out the whole project work to complete within 24 weeks

3.1 Assess Alternative Project Team Structure

Generally the structure of a project is different and separated from the structure of the

organization. A project is a self contained unit and it has its own technical staffs and

administration. The structure of project defines the responsibilities and duties of every

personnel engaged in the project and prescribe administrative, financial, personnel, control

procedures in detail. It helps project manager to allocate resources and to determine impact

on resources and timelines. To implement this project pure project team structure will be

formed with having an alternative matrix structure.

Figure 3: Pure Project Team (Meredith J. R., 2006)


PresidentProgram ManagerManagerProject AMarketingManufacturingFinancePersonnelManagerProject BMarketingManufacturingFinancePersonnelVP MarketingVP Manufacturing

PM1 11/2 3 1/2 1/2

4

Figure 4: Matrix Organization (Laat, 1995)


PrsidentProgram ManagerMarketingManufacturingFinancePersonnelPM3 1/2 0 3 1 1/2

PM1 11/2 3 1/2 1/2 4

PM2 4 1 1/4 1/4 11/2

3.2 Demonstrate the Interpersonal Skills Required for Effective

Project Management

It is important that project manager must have some qualities like leadership, communication

skills, negotiation skills etc. for the purpose of running the project work in a better way.

Requirement of skills may vary from project to project but some basic skills are essential to

carry out a project. Earlier it is mentioned that success of a project is directly depend on

project manager. So project manager should have the following interpersonal skills.

Leadership: The whole work of a project is executed by a big team but it does not

mean that team executes the work itself. To achieve common objectives project team

requires proper guidelines and directions. Project manager has to perform team

building role.

Decision Making Skills: The core task in a project is to make decision. There are two

streams of good decision: timeliness and appropriateness. An appropriate decision can

not add any value if time lapse. Project manager can use and analyze acceptance

criteria for making decision and decision improvement.

Motivation: It is required to motivate project team to carry out project work

accordingly to achieve the objectives. Motivation creates realization among personnel

that their work is valued. Project manager motivates team in order to create a

connection between working attitude of the team with accomplishing project

objectives effectively and efficiently.

Communication: Communication skill of project manager is required for the success

and to take care of the project. It is maintained by conducting meeting and updating

the feedback to the team. It helps to define responsibility clearly and precisely and

motivate team also.

Negotiation: There may arise some adverse situations among the teams because of

conflict of interest. Project manager has to handle the as a good negotiator so that

interest of both parties is kept and they become satisfied like win-win situation. To be

a good negotiator project manager should listen and articulate diligently. He should

also have convincing power to negotiate conflicts.


3.3 Design Quality Management Processes to be used in a Project

Quality of a project is measured by analyzing its outcomes within specified timeframe.

Improvement of project quality depends on the following factors:

Good Plan: It is fundamental to achieve project quality. It ensures project manager to

achieve project standards.

Appropriate Communication: To encourage entire project team excellent and

comprehensive communication of project manager is require which enhance the

quality of a project.

Managing Stakeholders: Stakeholder management includes factors like

identification of stakeholders and their requirements, analysis of their concern for the

preparation of appropriate strategies.

Good Measurement: Quality of a project can be maintained by measuring

procedures of delivery, work procedures implemented progress of the work in both

quantitative and qualitative manner.

Constant Review: Progress of project work should be reviewed against the time,

schedule, budget and quality of the elements.

Act Early: Measurement and review techniques become successful only when proper

actions are taken at the time of issues identified.


3.4 Design Procedures for Managing Project Change Proposals

Change control of a project is a process of formal change request to introduce new systems

which is under control and coordinated. It helps to manage project by mitigating the

possibility of faults and disruption of newly introduced systems. There are six steps of change

control which are shown in the following diagram.

Figure 5: Steps of Change Control


Record: Record the request of initiating changes.

Assess: Judgment the impact of assessors due to change.

Plan: Assign specified team to carry out particular change.

Gain Acceptance: After correctly implementation of change it requires acceptances from client.

Test: Seek agreement of stakeholders and request to carry out the implementation phase.

Implement: Implementation of change to an agreed time, date and cost.

Activities of the Cafeteria Project

Week

1-2

3-4

5-6

7-8

9-10

11-1

213

-14

15-1

617

-18

19-2

021

-22

23-2

4

Project Plan

Architectural Design

Site Preparation and Construction

Furniture & Accessories

Plant & Equipment Establishment

Other Fixed Assets

Electrification

Telephone

Water Deposit

Interior Decoration

Training Cafeteria Staff

Inspection

Figure 6: Gantt chart for the Project


4.1 Identify Issues and Risks that may impede a Project

While accomplishing this project it is important to consider and manage two aspects project

issue and project risk. It helps project manager to derive best chance of successful

accomplishment. Project issue and project risk are sometime confusing.

Project Issue: An issue is any problem related to a project. It is currently occurring or

may be occurred. Project may be affected if issues are not resolved at the time of

identification. Project manager should aware to identify issue. If there any issue is

identified then it should be documented and project team must define a plan of action

to manage issue. This plan of action must be approved by the project manger and then

to be implement to get back the project on the track.

Project Risk: Risk is the probability of occur any issue which may affect a project

severely. Project manager needs to address risk properly and the source may be

previous similar project. In this particular project risk may occur because of

inadequate allocation of resources. Inadequate allocation ratio of human and physical

resource may also hamper the project. Again technological collapses sometimes occur

during the project due to which project may be crept. Risk may also occur because of

changing documentation plan of different activities. The identified risks should be

measured in terms of quantitative and qualitatively.


4.2 Design systems for Monitoring and Appraising the Status of a

Project

This project is to be completed within specific timeframe. During execution period it is

important to check carefully activities and progress of the project. Project manager should

develop a monitoring system to keep check all the activities. This project involves both

financial and non-financial resources and if there is any negligence there may waste, misuse

or theft of those resources. Monitoring assists project manager to know how things are going

in comparison with the plan. Project manager can pursue the following matter for monitoring

a project.

Plan the project in a simplistic manner so that it not to be a burden.

Include a budget with the project.

Define and clarify objectives of the project at the very beginning.

Define responsibility and accountability of the team.

Plan the activities e.g. what needs to be done, when to be done, who will involve in

doing it, what resources are needed to do it, how long it will take to do etc.

Communicate with the team by arranging meeting about the status of the project and

document the report.

Allow communication and interaction among team members.

Figure 6: Project Monitoring (Meredith J. R., 2002)


Taking Corrective Action and ReportingPlanning Monitoring

4.3 Design Control Systems to Detect and Manage Issues Arising in the

Course of Project

Conflict may arise because of interest of the team. It is the situation when both team compete

with each other and wish to occupy their desired position. There are causes of conflict and in

the conflict process there are results and effects and there is a feedback to the effects. So it is

a cycle. A conflict situation comprises with behaviors, perceptions, interdependence and

emotions of team members. In project management the following techniques may be applied

for conflict resolution. (Pinto, December 1995)

1. Confronting Approach: It is a problem solving technique in which both team are in

a win-win situation after reaching in an agreement. In this style both teams meet

openly. Project manager use this approach when both teams want to win and there is

sufficiency of trust and time.

2. Avoidance Approach: In this approach project manager remains neutral on the issue.

It is used when intense and impact of conflict is not so critical and project manager

perceives that teams have enough capacity to manage conflict.

3. Domination Approach: In this approach project manager remains focused on

conflict resolution. This approach is used only when the progress of project is

hampered because of conflict i.e. if conflict is resolved project will be succeeded.

4. Accommodation Approach: This approach suggests project manager to seek

preservation of personal relationship for the benefit of the project. It is used success of

project is little relevance to the conflict and thus it should be applied infrequently.

This approach is used for minor issue but not for significant issue.

5. Compromise Approach: This approach is used to achieve an optimal solution in

order to satisfy both teams because they are in a fundamentally valid position. It is an

approach of balancing between project success and personal relationship.


5.1 Identify Issues and Risks likely to be encountered in the Final

Stage of a Project

At the final stage of this canteen project some issues and risks may arise. While closing the

project it is the responsibility of the project manager to document all the papers for the

reporting purpose. It will enable project manager to reduce his risk associated with the project

and give further direction for similar types of projects. This canteen project involves various

stakeholders and protection of their interest become one of the major risk factor which may

arise at the end of the project. Risk may arise at the final stage because of improper

monitoring. Again the project may not completed within due time. This may occurs due to

shortage of resources of planning deficiencies. There are some risks which may arise at the

final stage of the project such as lack of employee engagement.


5.2 Assess the Necessary Project Tasks to be completed in the Final

Stage of a Project

Project closeout is the very last stage of project management. A project ends when all the

works are accomplished in accordance with the plan. It ensures satisfaction of all

stakeholders and fulfills acceptance criteria. Project closeout is an important stage of project

life-cycle. At this stage all the records are accumulated to disseminate information to the

stakeholders in a formalized way. It also determines the effectiveness of the project

management team. Project team encompasses other information like why particular actions

were taken, outcomes of those actions, cause and quantity of performance variance, risk

occurred, mistakes that could have been avoided and so on. Information related to failure

project is also required to be documented for further reference. Project that is performed

under contract basis are required contract closure to determine accurate accomplishment of

project. At the end of the project team members should be released to engage in next project.

Project manager should recognize efforts of the team and appreciate them for their

participation. After accomplishment of a project successfully a celebration is begun and then

project is closed officially. This celebration encourages the entire team. (Evans, 1998)


Conclusion

Project management is the discipline of planning, organizing, managing and controlling

organizational resources to achieve temporary goal. It provides a way of completion of work

carried out by team. Success of a project accomplishment depends on various factors like

project initiation and division, methodology used, collection and use of resources. There is a

project manager who guides the whole work to manage, organize and coordinate activities

with the project team. This project is carried out to achieve two basic business objectives For

the retention of accountability at the end of the project work all the documents are kept.


Bibliography

Cleland, D. I. (1990). Project Management Techniques Handbook. Centerville: VA:

Management Control Institute.

Davis, E. W. (1983). Project Management Techniques, Applied Cautions and

Managerial Issues. Norcross: GA:AIIE Monograph.

Evans, L. J. (1998). Introduction toSimulation and Risk Analyis. Upper Saddle River,

New Jersey: Prentice-Hall.

Grey, C. F. (2005). Project Management: The Managerial Process. Ney York:

McGraw-Hill/Irwin.

Laat, P. B. (1995). Matrix Management of Project and Power Struggle. IEEE

Management Review , 34.

Meredith, J. R. (2002). Operation Management for MBAs. New York: Willey.

Meredith, J. R. (2006). Project Management: A Managerial Approach. New York:

Willey & Sons Pte Ltd.

Norrie, T. J. (December 2004). A Balanced Scorecard Approach to Project

Management Leadership. Project Management Journal , 14.

Pinto, J. K. (December 1995). Project Management and Conflict Resolution. Projrct

Management Journal , 50-60.

Raz, T. (1997). An Interactive Screening Methodology for Selecting Prroject

Alternatives. Project Management Journal , 27.


Documents

Project Management 1 After Amendment