Project Management. Duration, Project Planning, Risk Management E-Book

Janin Ropot

• Herausgeber: GRIN Verlag
• Sprache: Englisch

Veröffentlichungsjahr: 2014

Beschreibung

Seminar paper from the year 2014 in the subject Business economics - Business Management, Corporate Governance, grade: 1.0, University of Sunderland, course: Managing Projects, language: English, abstract: Projects are customized solutions and are therefore dealing with uniqueness, uncertainty and risk. Precisely for this reason, “Project Management requires the use of many skill sets and involves tasks of limitless variety” (Heerkens, 2014). In addition to the basic skills for managing a project defined by Richman (2012) which can be found in Appendix 2, multiple other skills are needed for a successful management of a project such as “…flexibility, resourcefulness, ability to negotiate, personal drive and a large measure of common sense” (University of Sunderland, 2005). Apart from delegating tasks the PM needs to be able to rely and trust others in order to get things done. To handle diverse personalities into a unified team a smooth working relationship must be cultivated and requires the PM’s ability to persuade and influence as well as to coach, mentor and motivate the staff (Heerkens, 2014). At best, he enables each individual within the project team to concentrate on their personal core competencies, ultimately resulting in better productivity and results for the project. The best competency mix of a PM includes Cognition Competencies (Analysing & Reasoning), Personal Effectiveness (Result & Safety Focus) Management Qualities (Planning & Organizing) and Leading Others (Acts as a role model to others). A professional PM never loses sight of interpersonal aspects as well as the environmental aspects and pays attention to details without getting wrapped up in them. “The best project manager is both a specialist and a generalist” (University of Sunderland, 2005).

Leseprobe

Impressum:

Copyright (c) 2013 GRIN Verlag GmbH, alle Inhalte urheberrechtlich geschützt. Kopieren und verbreiten nur mit Genehmigung des Verlags.

Bei GRIN macht sich Ihr Wissen bezahlt! Wir veröffentlichen kostenlos Ihre Haus-, Bachelor- und Masterarbeiten.

Jetzt bei www.grin.com

Table of Contents

Task I – Critterhouse Limited

1.1 Network Diagram

1.2 Determination of the timing of activities and the total float

1.3 Determination of the project duration and the critical path

1.4 Calculation of the earliest date of completion

1.5 Effect on the duration of the project caused by rescheduling

1.6 Limitations of network diagrams

Task II – Ross Limited

2. Project Management Foundation

2.1 Introduction

2.2 Initiating Stage – Defining and Authorizing the Project

2.3 Project Manager (PM) – Skills and Competencies

2.4 Project Team – Teambuilding

3. Project Life Cycle

3.1 Initiation Phase - Objective Setting

4. Project Planning

4.1 Stakeholder analysis

4.2 Work Breakdown Structure

5. Project Cost Management

5.1 Resource Planning

6. Risk Management

6.1 Risk identification

6.2 Risk analysis- Quantitative and Qualitative

6.3 Risk Response Planning

6.4 Risk Monitoring and Control

7. Ensuring a successful project execution- Project controlling

Referencing List

Appendix III

1. Network Diagram

2. Basic Skills of a Project Manager

3.Project Team

4. Organizational Chart

5. Gantt Chart

6. Checklist of Cost Management Factors

7.Low- Medium- High Risk Matrix

8.Probability Impact Matrix

I. Illustration Index

Figure 1: Network Diagram Activity including the timing

Figure 2: Critical Path

Figure 3: Project Life Cycle

Figure 4: Expectations of Stakeholder

Figure 5: SMART based on University of Sunderland (2005)

Figure 6: Stakeholder Analysis

Figure 7: Work Breakdown Structure

Figure 8: Project Planning Process, retrieved from : A Guide to Project Management Body of Knowledge

Figure 9: Created by author based on: A Guide to Project Management Body of Knowledge. (2000). 1st ed. E-book] Pennsylvania: Project Management Institute Inc., p.89. Available at: http://www.cs.bilkent.edu.tr/~cagatay/cs413/PMBOK.pdf [Accessed 28 May. 2014].

Figure 10: Major Risk Categories for an effective Risk Management, retrieved from: (Managing Projects - SIM 335, 2005)

Task II – Ross Limited

2. Project Management Foundation

2.1 Introduction

Ross Limited, as a SME company, is supplying specially trained occupational health nurses. The company provides their service to over 400 organizations in various industrial settings. Ever since the company was founded they have demonstrated remarkable growth and within the scope of expansion the company is now realising a new administration office in the North of England. Ross Limited has decided to hire a project manager in charge of opening the second office who will coordinate all contributions to the project and will be able to make the best use of the company’s resources and help achieve the objectives.

2.2 Initiating Stage – Defining and Authorizing the Project

“Those who do not do their homework do not graduate.”

Bryce's Law

As the project is at present in the feasibility stage, the stage where most value can be added trough creativity and experience (Successful-project-management.com, 2014), the expertise of the project team is vital. Conducting a feasibility study for the project might be of help to “…confirm that the proposed business cases is feasible, but also to prioritize the business cases so that the most viable can be carried out first.” (Burke, 2013) It should include the client’s corporate requirements, evaluation of internal and external constraints together with a cost benefit analysis and possible risks and uncertainties. For Ross Limited’s present project this would mean to carry out a meaningful market analysis in consideration of the differences of political, ecological, social, technical, economical and legal factors (PESTEL) between Scotland and North England. Generating a break- down of the whole business case into smaller parts- considering personnel resources, the budget and scenarios which are potentially acceptable solutions is of help (Field and Keller, 1998). The feasibility study will then provide a basis for the project participants and will help decide whether or not to proceed, will help to evaluate the alternatives and the handling of problems. The precise planning of the project is carried out in the project planning phase.

2.3 Project Manager (PM) – Skills and Competencies

Projects are customized solutions and are therefore dealing with uniqueness, uncertainty and risk. Precisely for this reason, “Project Management requires the use of many skill sets and involves tasks of limitless variety” (Heerkens, 2014). In addition to the basic skills for managing a project defined by Richman (2012) which can be found in Appendix 2, multiple other skills are needed for a successful management of a project such as “…flexibility, resourcefulness, ability to negotiate, personal drive and a large measure of common sense” (University of Sunderland, 2005). Apart from delegating tasks the PM needs to be able to rely and trust others in order to get things done. To handle diverse personalities into a unified team a smooth working relationship must be cultivated and requires the PM’s ability to persuade and influence as well as to coach, mentor and motivate the staff (Heerkens, 2014). At best, he enables each individual within the project team to concentrate on their personal core competencies, ultimately resulting in better productivity and results for the project. The best competency mix of a PM includes Cognition Competencies (Analysing & Reasoning), Personal Effectiveness (Result & Safety Focus) Management Qualities (Planning & Organizing) and Leading Others (Acts as a role model to others). A professional PM never loses sight of interpersonal aspects as well as the environmental aspects and pays attention to details without getting wrapped up in them. “The best project manager is both a specialist and a generalist” (University of Sunderland, 2005).

2.4 Project Team – Teambuilding

The Planning and execution of the Project lies mainly in the hands of the Project Team. The PM is to force discipline into atmosphere of creativity- without destroying the creativity. (Stessen, 2014)

An effective project team requests a symbiosis between “hard” and "soft" skills, personalities and attitudes to achieve good project results. As People are one of the most important resources and the complexities of this project require a well-organized team the PM is responsible for the careful selection of team members and experts. Therefore several techniques may be used:

Job definition

Competency based interviewing skills

Behavioural Event Interviewing

Psychometric testing

Assessment testing

Besides the competencies of the team members, special attention should be placed on a well-balanced interpersonal mix of the team. Just before the integration phase teambuilding needs to be focused on. This can be simply done by developing a code of conduct for the team meetings as well as regular status reports (Heerkens, 2014) that will be compared to the mutual expectation. The team comprises specialists in:

 Design and Architecture of new premises

 Purchase

 Administration

 Marketing

 Human Resources

 Controlling

Procurement

 Software

3. Project Life Cycle

The project life cycle is subdividing the whole project, it is “….a cycle that passes through four phase headings: concept and initiation phase, design and development phase, implementation phase, and commission and handover phase” (Burke, 2003).

Concept and Initiation Phase

The project starts off by establishing the need for the project and the feasibility phase is in this stage.

Design or Development Phase

Phase number two, is responsible for developing a project schedule, the organization of the team and its responsibilities and will create an action plan with integrated milestones.

Implementation Phase

The next step, implements the project as per the agreed plan including risk management, project controlling and comprehensive reporting.

Commissioning Phase

The final phase confirms and reviews the costing of the project and reports experiences. The project will be closed down.

Using the Project Life Cycle the activities required to successfully implement the new facility will be outlined and analyzed. To understand the interrelationship between the four major project phases better, the total project life cycle is shown in the following graphic:

Figure 3: Project Life Cycle

3.1 Initiation Phase - Objective Setting

Explicitly formulated Project objectives increase the chance to induce understanding of the project and increase the likelihood of leading to a specific outcome. “…Objectives are the quantitative and qualitative measures by which the project team will judge the completion of the project”. (University of Sunderland, p.25)

Projects can only be successful if the so called “Iron Triangle”, the relationship between Time, Cost and Scope is balanced because they are interdependent. Although, the following constrains that operate on every project need to be considered as well. (Wysocki, 2014)

Figure 4: Expectations of Stakeholder

4. Project Planning

4.1 Stakeholder analysis

The Ross Limited Project Team will conduct a brainstorming session in order to identify stakeholders for the project including their interests and benefits, so that these can be used for the detailed planning. (Cooke and Tate, 2005) On this basis a stakeholder mapping can point out internal and external people or organisations that may be involved or affected by the project.

Referring to the project of opening a new administration office in the North of England, the stakeholders are among others local authorities, regulatory authorities and the local population.

An overview of internal and external stakeholders is shown in the following graphic:

Figure 6: Stakeholder Analysis

4.2 Work Breakdown Structure

Figure 7: Work Breakdown Structure

Once the project planning is sophisticated enough and requirements are will defined, a logical project structure plan can be generated. The so called Work Breakdown structure is defined by Heldman (2007) as the “… scope of the project that breaks the work down into components that can be scheduled and estimated, as well as easily monitored and controlled.” Based on the WBS a Cost Breakdown Structure (CBS) can be elaborated, showing the accounts used throughout the execution of the project. (Stessen, 2014) 4.3 Project Scheduling

The WBS is translated into a network diagram when scheduling the project. To provide a better overview though, a Bar Charts or Gantt chart should be used, as it outlines the activities chronologically and visualizes what can be processed simultaneously as well as the interdependence of each work unit (Patzak and Rattay, 2009). Find an example of a Gantt Charts in the Appendix 5.

5. Project CostManagement

Ensuring the Project is within budget requires the Management of Costs. Based on the project needs the four activities should be carefully worked out.

Figure 8: Project Planning Process, retrieved from : A Guide to Project Management Body of Knowledge

5.1 Resource Planning

Resources are limited in each project. Therefore the project needs a meaningful analysis of “… what physical resources (people, equipment, materials) and what quantities of each should be used and when they would be needed to perform project activities”. (A Guide to Project Management Body of Knowledge, 2000) It is highly important as it will serve as a basis for the cost estimation.

Supportive information may be obtained from:

The Work Breakdown Structure

Historical Information of previous/ similar projects

6. Risk Management

Project Risk Management is to ensure, the project can be completed successfully at an acceptable level of risk. Therefore it is necessary to determine all possible risks to be able to manage the process effectively. According to Cooke and Tate (2005) not all risk can be managed owing to the constraints of time and effort, creating a risk management plan and strategy therefore helps to keep real risk in the forefront and manages emerging risk using a process. Risks may have many sources, they can occur internally and externally. Internal risks emerging within the project can be for instance the estimation of cost and schedule, external risks may stem from the fact that the project is influenced by “Environmental Conditions” (Risks of “Cultural Fit” or Political Risks). The risk management process to support the project can be displayed like follows.

Figure 9: Created by author based on: A Guide to Project Management Body of Knowledge. (2000). 1st ed. E-book] Pennsylvania: Project Management Institute Inc., p.89. Available at: http://www.cs.bilkent.edu.tr/~cagatay/cs413/PMBOK.pdf [Accessed 28 May. 2014].

6.1 Risk identification

For the identification of the risks the project manager and the project team, as well as stakeholders should be called together and document major characteristics of risks that are likely to appear. Therefore, knowing the projects mission, scope and processing is essential. There are several techniques to use for the identification of risks such as Brainstorming, the Delphi Technique and Interviewing and Root Cause Identification. Major risk categories that should be considered are shown in the following table or can be identified with the help of the project triangle and the major drivers that where explained earlier.

Figure 10: Major Risk Categories for an effective Risk Management, retrieved from: (Managing Projects - SIM 335, 2005)

6.2 Risk analysis- Quantitative and Qualitative

Addressing the impact and probability of the risks that have been identified in step 1, a qualitative analysis can be made. Scaling the risks helps to focus and picture the priority.

Rating the risks in a low- medium- high risk matrix (Appendix 7) can indicate the need for more or less risk management action. Risks with a high probability and high impact fall into the “plan response” category those with a low probability and low impact fall into the “disregard but monitor” category. Qualitative risk analysis should be revisited during the Project Life Cycle to stay current with changes in the project risk. (A Guide to Project Management Body of Knowledge, 2000)

Calculating the probability of each risk and its extent is a quantitative risk analysis process. Rating the impact as well as the probability numerical on a scale of 1-3 (3 being the highest likelihood) the multiplication of them makes the risk’s priority score.

6.3 Risk Response Planning

In this model of the Risk Management Process actions to enhance opportunities and reduce threats are developed. Project participants are asked to take responsibility for each of the agreed upon risk responses. When dealing with positive risks, responses should accept, enhance, share and exploit the probability of the opportunity however negative risks should either be accepted, avoided, mitigated or transferred to another party. (Biafore and Stover, 2012)

6.4 Risk Monitoring and Control

Monitoring and control helps in making effective decisions. “Monitoring risks can be tied to the tracking of milestones, setting aside time periodically to examine the situation for the most damaging risks… and taking corrective action “. (Field and Keller, 1998) The complete refocusing of the project, a new and coordinated detail plan for choosing an alternative strategy or taking corrective actions are tasks of the risk control.

7. Ensuring a successful project execution- Project controlling

If a project is not “controlled”, it is out of control. (Stessen, 2014) There is not only the need to compare the actual status of the project with its expectations but also an important psychological need for it. The project team should be aware that the project is under rigorous observation by the Management as this is likely to provide considerably more rapid and precise results. In this respect, the following factors should be taken into consideration:

Level of completion

Status of Cost

Status of Risk

Issues involving delays

Issues on quality

Ross Limited should reflect the accomplished work and allocated budget in regular, structured and reliable status reports at fixed intervals. To enable problems to be recognised at an early stage, operating numbers that give evidence of the projects status should be used such as (Stessen, 2014):

Words:

Task 1: 640 (without: headings, title page, table of contents, appendix and references)

Referencing List

a) Primary Sources

Biafore, B. and Stover, T. (2012).Your Project Management Coach - Best Practices for Managing

Projects in the Real World.1st ed. Indianapolis: John Wiley & Sons, Inc., pp.211- 215.

Burke, R. (2003).Project Management - Planning and Control Techniques.3rd ed. England: John

Wiley & Sons LTD, pp.24, 25.

Burke, R. (2013).Project Management- Techniques.2nd ed. Burke Publishing, p.88.

Cooke, H. and Tate, K. (2005).Project Management- The 36 Hour Project Management Course.1st

ed. New York: McGraw- Hill Companies, p.135.

Field, M. and Keller, L. (1998).Project Management.1st ed. Hampshire, UK: The Open University,

p.24.

Heerkens, G. (2014).Project Management. 2nd ed. Madison, Wisconsin: McGraw- Hill Education,

p.5.

Heldman, K. (2007).PMP - Project Management Professional Exam Study Guide. 4th ed.

Indianapolis: Wiley Publishing, Inc., p.135.

Lock, D. (2007).The Essentials of Project Management.3rd ed. Burlington: Gower Publishing

Company, p.175.

Managing Projects - SIM 335. (2005).2nd ed. Sunderland: University of Sunderland, p.81.

Patzak, and Rattay, (2009).Projektmanagement - Leitfaden zum Management von Projekten,

Projektportfolios, Programmen und projektorientierten Unternehmen.5th ed. Wien: LINDE

Verlag, p.173.

Richman, L. (2012).Improving your Project Management Skills.2nd ed. New York: AMACOM.

SIM 335- Managing Projects. (2005).2nd ed. University of Sunderland.

Smith, L. (2014).Project Clarity Through Stakeholder Analysis. Cross Talk - The Journal of Defense

Software Engineering, p.3.

Stessen, L. (2014).Management of Projects.

Wysocki, R. (2014).Effective Project Management - Traditional, Agile, Extreme. 7th ed. Indianapolis:

John Wiley & Sons, Inc., p.11.

b) Secondary Sources