SIM335 Managing Projects Final Essay

Business | 16 minutes of reading
  1. Core Principles of a project

The main principles of a project are the schedule, budget, quality, and objectives. The schedule determines the time that the project will take from initiation to completion and the budget sets the amount of funds that should be spent on the project during the same period. The quality determines the specifications that the project has to conform to. On the other hand, the objectives lay out the target that the project aims to attain. These objectives lay out the factors that will be used to determine whether the project was a success. Suffice it to say that without these core principles, it is often difficult to successfully execute projects. The budget and schedule prevent project failure from occurring due to a lack of funds or time (Patel, 2008).

  1. The Scope of the ABEK limited project

The scope of a project includes the list of planned objectives that is targeted by the project. In the ABEK project, the scope of the project was:

  1. Open the new building within 1 month.
  2. Transfer the offices to the new building.
  3. Ensure that there are no supply shortcomings during the transfer process.
  4. Expand the production capability of the old plant.
  5. Gantt Chart
  6. Financial Appraisal

Financial appraisal is used to determine the worth of a project in financial terms, often using definite values. The payback period is often used as the first financial appraisal method. It estimates the period that it will take the company to recover the initially invested amount. The payback period is used as a rough estimate in determining the feasibility of a project. The main of this method as opposed to others such as NPV and IRR is that this method is fairly unsophisticated. It does not take a lot of time, technical knowledge, or effort to calculate the payback period (Kerzner, 2013).

  1. Risk Assessment and Management in the ABEK limited project

I would have assessed the risks using the Failure Mode and Effect Analysis (FMEA) analysis method. The method requires the project team to lay out all the possible causes of project failure. They are then arranged according to their Risk Priority Number (RPN) which is calculated by multiplying the estimated severity, likelihood of occurrence, and ability to detect the failures. The risks will be dealt with according to their respective RPN numbers. This will make it easier to deal with the high priority risks first. In this regard, risk avoidance will be the main technique for dealing with any potential risk that might occur during the course of the project. Potential risks will be identified beforehand and avoided by the project team (Patel, 2008).

  1. Quality Control methods that should be introduced to the ABEK limited project

I would introduce project evaluations to ensure that the quality of the project is made. Project evaluations require that the project manager holds regular reviews to ensure that the clients and customers are happy, and members of the team are still motivated throughout the project. During the evaluations I should be able to provide the team members with feedback to keep them focused on the project objectives. Two project evaluation methods will be used in the ABEK project. These are milestone evaluations and a final project audit once the project has been completed. The milestone evaluations will be conducted once each major phase of the project is completed. These include the initiation, planning, execution, monitoring and controlling phase. The evaluation will be according to an already prepared set of objectives. Once the entire project is complete, a final audit will be run to ensure that the project conformed to the project objectives and quality was not compromised (Rivest, Bouras and Louhichi, 2012).

[Student Name]
SIM335 Managing Projects – Task 2

Word Count – 2452

EXECUTIVE SUMMARY
ABEK limited is a company that supplies the regional, national, and international markets with auto parts. The company has witnessed successful growth since opening up in 2007. Nevertheless, the company still operates from a manufacturing site that measures 25,000 square metres. This site serves as both the manufacturing site as well as housing the company offices. In order to respond to an increasing demand for their product, the company seeks to expand the capacity of their company. For this purpose, they have purchased a nearby building with the hopes of moving some of their functions to that building.
I was hired by the company to serve as the project manager and to ensure that the project is completed on time and within the set budget. Furthermore, my main job as the project manager will be to ensure that the new facilities has been prepared and made ready for the company to move in, and there should be no delays in the supply of the company’s product during this period. This paper outlines the competencies that a project manager should possess in order to work on such a project. Also, it points out the project life cycle that should be followed and the project management plan that will ensure that the project objectives are attained.

Contents
INTRODUCTION.. 7
SKILLS REQUIRED BY A PROJECT MANAGER.. 8
PROJECT LIFE CYCLE.. 9
CONTROL PROBLEMS THAT MIGHT AFFECT THE PROJECT.. 12
PROJECT MANAGEMENT PLAN.. 12
CONCLUSION.. 15

INTRODUCTION

ABEK limited is an organisation that specialises in the supply and manufacture of auto parts. Since 2008, the company has supplied regional, national, and international companies with their product. In spite of the relatively massive size of their operation, the company still operates from a modest 25 000 square metres site that houses both the manufacturing plant and the company offices. However, the plant only handles manufacturing since the auto parts are first sent to a distribution centre from the site. The offices are occupied by 250 employees and a single General Manager.
The company has an expansion plan in place, and they recently acquired a building that sits next to their present site. This is a change-driven project. The new building is set to allow the company to gain the ability to respond to an increasing demand for the company’s product. In this light, they hired me to take the role of project manager and to handle this project. My main role will be to ensure that all requirements for the new building are met, and to further ensure that the factory operations are disrupted.
This ABEK limited project plan will highlight the stages and processes that the project will go through and the control problems that the can be associated with such a project. The most important role will be to ensure that the new facility will open on time and with no deviation from the set budget.

SKILLS REQUIRED BY A PROJECT MANAGER

  1. Good Communicator

A project manager is a leader and they have to possess the ability to pass on project information to the members of the team and the clients. The project manager should be able to clearly communicate the responsibility, goals, expectations, feedback, and performance. The manager acts as the link between the client and the team. Furthermore, leaders have to create guidelines towards the achievement of the project objectives (Allport, 2011).

  1. Integration Skills

The project manager has to coordinate the various technical aspects involved in the project. He has to understand the drawings by the civil engineer, architect, and other functions. These technical workers cannot work independently as there will have to be a person in between to coordinate between all the members of the team.

  1. Project Management Knowledge

Project management impacts certain skills into project managers that give them the ability to successfully handle projects. A project manager should be able to set up budgets, analyse reports, and to prepare project reviews. These are the skills that enable a person to successfully execute a planned project.

  1. Knowledge about the client

This is necessary because the client will have to meet and negotiate with various members of the organisation. A deeper understanding of the organization and their goals will make it even easier for the Project Manager to come up with the project objectives (Walker, 2015).

PROJECT LIFE CYCLE

The project life cycle is a method for breaking up the project into a number of phases for easier management. The project is set to use milestone evaluations that will involve these four phases. Each phase will have a set of objectives that will be used as a basis for evaluation after each phase has been completed. The four phases are the initiation phase, development phase, implementation phase, and the commission phase.
Initiation phase
This is the start of the project. It is in this phase that the idea for this project will be explored in detail. In the case of the ABEK project, the committee formed by the company will decide on the roles and the people who will carry them out (Ceschi et al., 2005). As the project manager, I will have to write up a proposal for the project. This proposal will include the feasibility study that will consist of a stakeholder analysis, cost-benefit analysis, and a definition of the client needs. Once the committee has evaluated and approved the plan, the project will begin officially (Walker, 2015).
A few questions that I, as the project manager, will have to answer at this stage include:

  1. Is the project feasible?
  2. What should be the expected results of the project?
  3. What are the objectives of the project?
  4. Who are the stakeholders in this project?

This stage involves a lot of pre-planning. In the end I will have to come up with the following plans for the ABEK limited project.

  1. A financial analysis and a project budget.
  2. A stakeholder analysis that identifies all the parties involved in the project.
  3. A project charter that lays out all the tasks, cost, schedules, and deliverables.

Design and Development Phase
            It is in this phase that the project is designed, plans developed along with the schedule for their implementation. It is important to note that the expected project results are specified at this stage. ABEK limited will give me a list of expectations that they have for this project. All parties involved in the project have to collaborate during this phase, especially ABEK limited who will be the end users of the project (Allport, 2011). The company should involve their workers in this phase at some point through meetings. The employees will provide invaluable feedback on the requirements that they would like to find in the new building (Conerly, 2013). This is because often the end user is ignored during this phase and in the end a few minor details are left out. Agreements between the company and the project team will be established. This will be used to judge the team at some point during the evaluation of the project. These requirements cannot be changed, unless under very unique circumstances as laid out in the Change Management Plan (Srivannaboon, 2009).
A number of plans and designs are developed on how the project can be achieved. Thee project manager will pick the final design that will be used for the project. After this has been accomplished, the project can move on to the development phase. In the development phase, all the requirements for project completion are availed. Suppliers and subcontractors are sought, materials are ordered, a schedule is put up, and personnel are given their job specifications. All members of the team have to understand what their role in the project is. This phase can only be complete when the project is ready for implementation(Conforto and Amaral, 2010). This is a very important phase in regards to achievement of project objectives (Rivest, Bouras and Louhichi, 2012).
Implementation Phase
            In this phase the project is implemented as laid out in the plans prepared earlier. It is at the implementation phase that the project takes shape. The actual building in the ABEK project will be prepared to serve its purpose as office space. Furthermore, it is at this stage that the employees will move from the previous building to the new one in accordance with the schedule to avoid delays or disrupting the production from the manufacturing site. Contractors will be involved in the building process; electricians will work on the electrical wiring and so on and so forth. Outsiders will have a chance to see the project finally taking shape. It is crucial that the momentum for the job is maintained during this phase (Mir and Pinnington, 2014).
It is at the end of this phase that the final project audit will be carried out. The audit will run the project results against the list of objectives that were laid out earlier. The evaluations will be primarily based on the design. This will involve evaluating whether the new site looks, works, and functions as requested by ABEK limited.  The final audit will also be run during this phase. The quality of the project will also be determined and evaluated. The implementation phase is completed when it is ascertained that all requirements were met and they correspond to the plan (Pinto, 2009). The role will be handled by the ABEK committee. Suffice it to say that, it is rarely possible to achieve the expected result in a project that conforms to the requirements 100%. Unexpected risks often cause the team to have slight deviations from thee laid out requirements of schedule. The ABEK limited project will have a risk management plan to deal with such events and prevent them from adversely affecting the project (Patel, 2008).
Follow-up Phase
            Everything that is necessary for project completion is arranged during this phase. This can involve preparing training manuals for use of the new facility, putting up a help desk, writing a report on the project, transferring the building to the new owners. All contracts that are open are settled, and activities across all project groups are finalized. The report will be handed over, along with the new building during an opening ceremony (Kerzner, 2013).

CONTROL PROBLEMS THAT MIGHT AFFECT THE PROJECT

  1. Weak Project Control – poor communication, management, and lack of change control often lead to poor project initiation. Projects that are plagued by these issues don’t manage to effectively achieve the project objectives (Atkinson, Crawford and Ward, 2006).
  2. Improper Staffing or Skills – The staff selected to join the project team might turn out to lack the necessary skills needed to properly work on the project, or they might not be enough to work on the project according to schedule.
  3. Failures to address risks – Unattended risks often lead to failure or cause problems (Yi and Langford, 2006).
  4. Poor initiation of Project – This is one of the most common problems. Sometimes the organizers are in a hurry to start off the project and they hardly spend time on the initiation phase. The end result is usually a poorly planned and ineffective plan (Eric Kirkland, 2014).

PROJECT MANAGEMENT PLAN

The project management plan guides on the execution of the project. Provides a baseline on which the project can be assessed and controlled. This is the guideline that will be followed throughout the course of the project. The project management plan comprises of:

  1. Cost Management Plan

The cost management plan describes the processes that will be followed to control and manage costs during the project (Srivannaboon, 2009).

  1. Quality Management Plan

This plan sets out the quality standards that the project should follow and how they will be achieved by the team (Walker, 2015). The quality management plan consists of

  1. Quality Standards – this plan identifies the characteristics that must be satisfied in order for the project to be considered successful, for the project deliverables to be accepted, and for all parties to be satisfied with the project (Zu, Fredendall and Douglas, 2008).
  2. Quality Management tools – the tools that will be used in quality management will be identified in this section. The ABEK limited project will primarily use milestone project evaluations as the main quality management tool.
  3. Quality Management Roles – this section sets out to describe the roles that will be held by various team members in regards to quality management.
  4. Quality Control – the activities that will be involved in the review of the deliverable quality will be laid out in this section. It should also define the procedure that should be followed in monitoring the project performance; most importantly this should include schedule and cost performance (Zu, Fredendall and Douglas, 2008).
  5. Schedule Management Plan

This plan lays out the procedure and the means through which the baseline schedule is updated, controlled, and managed (Srivannaboon, 2009). The project management plan addresses the following:

  1. The key project milestones
  2. The baseline schedule
  3. Tools used to manage the project schedule
  4. The schedule adjustment process
  5. Triggers that will prompt the baseline schedule to be updated
  6. How schedule delays will affect the baseline schedule
  7. Metrics used to measure schedule performance
  8. How the progress of the schedule will be tracked
  9. Risk Management Plan

The risk management plan describes the responsibilities and processes that will be used to identify risk, risk response, risk analysis, and risk control activities (Atkinson, Crawford and Ward, 2006).

  1. Scope Management Plan

This planned identifies how the project requirements will be set out, and the basis used to verify and control the project scope.

  1. Procurement Management Plan

This section describes how the procurement processes will be managed throughout the project.

  1. Change Management Plan

The change management plan identifies how the team will manage any changes to the project baseline, schedule, and objectives (Mir and Pinnington, 2014).

CONCLUSION

            ABEK limited is a growing organization dealing in auto parts. However, the company is currently functioning from a single site that measures 25,000 square meters housing 250 staff members and the manufacturing site. The company has managed to purchase a nearby building, hoping to use it to expand the size of their operations. They hired me to develop a project management plan that will ensure that they successfully open and settle into the new building with minimal interference of the supply from the company. The paper outlines the project management competencies that a project manager should possess to determine the factors that are necessary for me to lead this project. Further, it outlines the project management plan and the project life cycle which are crucial elements for project completion. The project life cycle include the four major phases: initiation, design and development, implementation, and follow-up phase. The project management plan identified the plan that should be followed in the following sections: scope management, quality management, personnel management, change management, cost control, procurement management, and risk management.

References

Allport, R. (2011). Planning major projects. London: Thomas Telford.
Atkinson, R., Crawford, L. and Ward, S. (2006). Fundamental uncertainties in projects and the scope of project management. International Journal of Project Management, 24(8), pp.687-698.
Ceschi, M., Sillitti, A., Succi, G. and De Panfilis, S. (2005). Project Management in Plan-Based and Agile Companies. IEEE Softw., 22(3), pp.21-27.
Conerly, B. (2013). ObamaCare’s Delays: Lessons For All Businesses About Project Management. [online] Forbes. Available at: http://www.forbes.com/sites/billconerly/2013/07/16/obamacares-delays-lessons-for-all-businesses-about-project-management/ [Accessed 1 Mar. 2015].
Conforto, E. and Amaral, D. (2010). Evaluating an agile method for planning and controlling innovative projects. Project Management Journal, 41(2), pp.73-80.
Eric Kirkland, C. (2014). Project Management: A Problem-Based Approach. Project Management Journal, 45(1), pp.e3-e3.
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. Wiley and Sons.
Mir, F. and Pinnington, A. (2014). Exploring the value of project management: Linking Project Management Performance and Project Success. International Journal of Project Management, 32(2), pp.202-217.
Patel, V. (2008). Project management. Jaipur, India: Oxford Book Co.
Pinto, J. (2009). Project management. Upper Saddle River, N.J.: Pearson Education.
Rivest, L., Bouras, A. and Louhichi, B. (2012). Product lifecycle management. Heidelberg: Springer.
Srivannaboon, S. (2009). Achieving competitive advantage through the use of project management under the plan-do-check-act concept. Strategic Direction, 25(8).
Walker, A. (2015). Project management in construction. John Wiley and Sons.
Yi, K. and Langford, D. (2006). Scheduling-Based Risk Estimation and Safety Planning for Construction Projects. Journal of Construction Engineering and Management, 132(6), pp.626-635.
Zu, X., Fredendall, L. and Douglas, T. (2008). The evolving theory of quality management: The role of Six Sigma. Journal of Operations Management, 26(5), pp.630-650.

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