MANAGEMENT OF PROJECTS

Phan Xuan Anh 7 April 2014

MANAGEMENT OF PROJECTS

0


Table of Contents

Task 1: Cassop Ltd Company.............................................................................................................3

1. Introduction......................................................................................................................................3

2. Network Diagram............................................................................................................................3

3. The timing of activities and the total float................................................................................5

4. The project duration and the critical path................................................................................6

5. The project starts on the 28th April, 2014 what is the earliest date it can be completed

using a 5 day working week?..............................................................................................................6

6. Changes in the Activity Duration................................................................................................8

7. The limitations of Network diagrams.........................................................................................8

8. Conclusion.......................................................................................................................................9

9. Reference:......................................................................................................................................10

Task 2: Thompson Ltd Company......................................................................................................11

1. Introduction....................................................................................................................................11

2. Project’s Objectives.....................................................................................................................11

3. Planning..........................................................................................................................................12

Time planning:...................................................................................................................................12

Work Breakdown Structure (WBS):..................................................................................12

Sequencing activities:.........................................................................................................12

Gantt chart:.............................................................................................................................13

Activity on Node (AON):......................................................................................................13

Human resources planning:...........................................................................................................14

4. Project manager and team..........................................................................................................14

Project team.......................................................................................................................................14

1

MANAGEMENT OF PROJECTSProject manager................................................................................................................................15

Leadership style:..................................................................................................................15

Motivation:..............................................................................................................................16

5. Project control...............................................................................................................................17

Time.....................................................................................................................................................17

Cost control.......................................................................................................................................17

Resource control..............................................................................................................................17

Risk management.............................................................................................................................18

6. Conclusion.....................................................................................................................................21

7. Reference........................................................................................................................................22

8. Appendix.........................................................................................................................................23

2

MANAGEMENT OF PROJECTSTask 1: Cassop Ltd Company

1. Introduction

Cassop Ltd is an organisation which produces products for the engineering industry.

These products include: pumps, values, automatic control systems, filters, and heat

exchangers (scenario). As part of this report as the Cassop Ltd Special Projects

Manager. The task of this report is to create a list of necessary activities such as

planning, organization and management tasks, as well as the resources to accomplish a

goal is determined in the design of a new products for the company, which is the

corrosive chemicals.

2. Network Diagram

Based on the essential methodology (activity on the node) from scenario and the

information was given in table 1. This report will draw a network diagram as follows:

3


Figure 1: Network diagram of Cassop Ltd. to design new product

4


3. The timing of activities and the total float

The time of activities including: Early Start (ES), Early Finish (EF), Late Start (LS),

and Late Finish. (LF). Therefore, the timing of the activities is calculated as follows:

- Early Finish = Duration + Early Start

- Early Start is a highest number of previous Early Finish activities.

- Late Start = Late Finish – Duration.

- Late Finish is a lowest number of following Late Start activities.

According Field and Keller (2007), the formula for calculating the float time as

following:

- Total Float = Late Start – Early Start = Late Finish – Early Finish

Figure 2: The total float of this project:

Activity Late Start - Early Start Total float time

A 0 – 0 0

B 4 – 4 0

C 6 – 4 2

D 8 – 8 0

E 13 – 13 0

F 16 – 13 3

G 19 – 19 0

H 26 – 20 6

I 20 – 20 0

J 26 – 20 6

K 28 – 28 0

L 38 – 38 0

M 42 – 38 4

N 48 – 48 0

O 58 – 58 0

P 68 – 68 0

5

MANAGEMENT OF PROJECTSQ 74 – 68 6

R 76 – 76 0

4. The project duration and the critical path

According to Burke (2003), Critical path is the longest path calculated by the total

time needed to perform the work on the path from the start node of the project to the

end node of the project. And critical path is a series of activities have the float = 0.

Based on the network diagram of the Cassop Ltd. (figure 1), the critical path of the

company is:

START → A → B → D → E → G → I → K → L → N → O → P → R → END

The earliest duration to complete the project is the total work duration on the critical

path. In this project, the duration to complete it is 77 days.

5. The project starts on the 28th April, 2014 what is the earliest

date it can be completed using a 5 day working week?

If the project starts on Monday, 28th April 2014. And the earliest date that the project

can be completed by using a 5 day work week (no other holidays). Besides, the duration

to complete the project of Cassop Ltd. are 77 days, it is equivalent to 15 weeks and 2

days. Thus, this project will finish on Tuesday, 12th August 2014. The Gantt chart of

project of Cassop Ltd.

6


7


6. Changes in the Activity Duration

If the duration of any activity in the critical path of the project was interrupted, it will

affect the duration to complete the entire project.

a) A 1 day delay during activity J.

When the activity J delay 1 day, it will not affect the duration to complete the entire

project because the activity J has a total float time is 6. Thus, Cassop Ltd. may even

delay activity J is 6 days, but it also does not affect the duration to complete the entire

project. However, the completion cost of the project will increase if Cassop Ltd. delays

any activity. For example: the costs that Cassop Ltd. pay of the day delayed: labor, rent,

electricity, water, and etc.

b) Activity P is completed 1 day before schedule.

When activity P (P belongs to critical path) is completed before the schedule is 1

day, this means that the entire project will end sooner than a day, and it will be

completed in 76 days. Thus, Cassop Ltd. will save money and time when they complete

the project as soon as possible

c) A 3 day delay during activity M

The activity M is not on the critical path, and it has the total float time is 4. Thus, if

Cassop Ltd is delaying the activity M is 3 days, it will not affect the duration of complete

the entire project.

7. The limitations of Network diagrams

The network diagrams also have some limitations as follows:

- People who do not have the expertise in design and project management will be

very hard to understand and draw the network map. If the staff of Cassop Ltd. do

not have full knowledge of the network diagram, they can take a lot of time to

prepare and they will not know how to start, and as well as the calculation of

factors such as Early Start, Early Finish, Late Start, Late Finish, and Total Float.

8

MANAGEMENT OF PROJECTS- The network diagram has no flexibility because Cassop Ltd. is difficult to improve

and change, or set up a new network diagram when the work plan has been

outlined. This affects the progress of the entire project, and as well as it will take

much time and money for the company.

- When employees of Cassop Ltd. not have expertise in the design and project

management, the company will have to provide training courses and practice

with the network diagram for their employees. Thus, this activity will waste of

money and this is also a limiting factor for the company.

- Network diagram is not intuitive because the company cannot directly supervise

all activities of the project.

- Network diagram is a quantitative measurement and evaluation of different

activities. However, it does not provide the various elements on the outside can

affect project (Stevens, 2002).

- Resource allocation is also a limiting factor for Cassop Ltd. because the network

diagram provides only the name of the activities and the duration to complete the

project. Therefore, if Cassop Ltd. based on the network diagram, they will be very

difficult to allocate the labor.

8. Conclusion

This report helps the manager of Cassop Ltd. knows how to design and develop a

network diagram of a project of the design a new product (an erosion chemical feeder).

Through the network diagrams, Cassop Ltd. can know the duration to complete the

different activities, as well as they can determine the critical path in order to the project

can be completed in the fastest way. In addition, this report also provides some of the

limitation of the network diagrams. Based on this limitation, the manager can make

appropriate decisions in order to the project can be successful.

9

MANAGEMENT OF PROJECTS9. Reference:

Stevens, M., (2002), “Project Management Pathways”, Association for Project

Management, APM Publishing Limited

Field, M & Keller, L. (2007). Project Management. p. 197, p.198 & p.391.

10

MANAGEMENT OF PROJECTSTask 2: Thompson Ltd Company

1. Introduction

Thompson Ltd is an SME company specialising in the supply of training courses to

the business community. They provide their services to organisations who contract out

aspects of staff training. Specifically, training courses provided by Haskell includes: fire

safety, customer service, leadership and supervision, and management development. I

am the Project Manager responsible for the opening of the new base. My task is outline

the activities required to successfully manage this major project of opening the new

base, ensuring that it opens on time, and within budget. (from scenario)

2. Project’s Objectives

According to Field and Keller (2007), “Objective focus on achieving the aims”.

Thompson Ltd. should apply the SMART criteria in order to set out their objectives

because this is a very popular method and reliable of many managers (Doran, G. T.

(1981)).

- Specific: Thompson Ltd should define clearly the project and what it will do or not

do.

- Measurable: it will include a measure to allow Thompson Ltd monitor the

progress and know when the objectives has been achieved.

- Achievable: Employees and managers involved in the project should agree with

the objectives of the project in order to ensure their commitments.

- Realistic: focus on the results of the objectives in the project rather than how to

achieve them.

- Time limited: Thompson Ltd should determine how much time is available and

the cost for each element to complete the project.

Based on the SMART criteria, objectives of Thompson Ltd. will be determined as

follows:

- The company will complete the project with a total cost of $ 29,350

11

MANAGEMENT OF PROJECTS- The company's projects will be completed within 44 days

- Ensure that the equipments and machines of the company moving safely.

- A new consulting division was created and placed in the new location.

- Open a new premises successfully and larger than the old premises, as well as

ensuring the operation of the new premises with high standards.

3. Planning

According Burke (2003), “The planning process communicates planning information

to the project team and stakeholders, and obliges them to “sign on” and pledge their

support”. Thus, the project planning is an important procedure in the project

management of Thompson Ltd. because it will help the company clearly defined how to

implement the project, monitoring, controlling and closing. Besides, the documents

necessary to identify, prepare, integrate and coordinate additional plan is also created

to ensure the project success.

Time planning:

Work Breakdown Structure (WBS):

For large projects like Thompson Ltd., the list of the project activities will be

divided into small details for control and the management purposes (Rodney

Turner (1993)). This is also known as a work breakdown structure (WBS).

Besides, in order to build a WBS for the project of Thompson Ltd., the manager

must understand what must be done to complete. In detail, the Work Breakdown

Structure for the moving project of Thompson Ltd. is presented in Appendix 1.

Sequencing activities:

The sequence of activities in the project is also a very important factor for

Thompson. This factor will help the managers determine the logical flow of all

activities in the WBS with the objective of determining the relationships between

all the activities in the project and the activities is performed after other activities.

Besides, it is also the necessary details for the activities in the project before the

managers can build a network diagram for Thompson. In addition, the sequence

12

MANAGEMENT OF PROJECTSof activities will show the project completion time of Thompson Ltd. (Appendix

2).

Gantt chart:

Gantt chart is used in the project management with the aim to monitor the

progress of the project implementation. The left side of the chart is a list of

activities, and the top side is a time scale. A bar will represent to each activity,

and the start date, duration, and the end date of activity is reflected by positioning

and length of the bar.

• Advantages: The Gantt chart is easy to draw, read, manage, determine

the actual situation, and as well the progress of the project.

• Disadvantages: the Gantt chart is difficult to determine the relationship

between activities. And it only determine the location and the working

duration.

Assume that:

• The project team will work 5 days per week (full-time)

• During the project implementation, staff will not have the holidays.

• Project start date will be April 7, 2014 and the project completion date will

be June 5, 2014

Thus, the Gantt chart will describe schedule of all the activities in the project

of Thompson Ltd. (Appendix 3).

Activity on Node (AON):

This factor (AON) will provide the name of the task and the duration of the

entire project in order to support the manager of Thompson Ltd. can draw the

network diagram. Besides, this factor helps managers can determine all the

timing of activities (Early Start (ES), Early Finish (EF), Late Start (LS), and Late

Finish. (LF)), as well as the total float and the critical path. See (Appendix 4).

13

MANAGEMENT OF PROJECTSAccording Burke (2003), the critical path are the activities have zero float. The

critical path of the project run from the first activities to the last activities. So, the

activities with zero float is the critical path.

Human resources planning:

Human resources are also an important factor in Thompson's project. If the

human resource planning of Thompson is performed a systematic way, they will

have a human resources achieve the highest performance and it will be the most

valuable asset of the company. Besides, the purpose of the human resource

planning is to ensure that employees will suit their tasks, and also avoid the human

resources shortage or surplus. The process of human resource planning will have

three important factors such as:

The participants in the project include: Project Manager (PM), Financial Manager,

Administration Staffs, Human Resource (HR) Manager, Transporting Company, and

Technician. And the responsibility of the participants in the project of Thompson Ltd.

is presented in Appendix 5.

4. Project manager and team

Project team

According to Handy (1980), project team is "any collection people who perceive

themselves to be as group". The staff are the center of Thompson's project. Of

course, Thompson can prepare and ensure resources for the team, and can boost

operational performance and keep work progressing in the right direction. However,

most of Thompson's work is done by the project team members. Therefore, selecting

the right people with the appropriate skills to the team is extremely important.

The project team is the team responsible for planning and performing the tasks

as outlined in the project plan and the direction of the Project Director. In

Thompson's project, they can use the multi-disciplinary team. The members in the

different functional department will work together to solve problems in the projects.

14

MANAGEMENT OF PROJECTSThis will help each member of the project team can improve their knowledge and

their skills. Besides, the project team members have to responsible as follows:

- Understand the purpose and objectives the project

- Identify the project issues

- Identify the risks that may occur in the project

- Working together to help and support each other as well as create the motivation

in order to the team members can try at work.

- Make sure a correct balance between project and non-project work

- Members must exchange, consider the idea has launched. At the same time,

they need to know to protect themselves and convince others to agree with their

opinions.

- Each member must contribute intellectually

(philrichardson.co.uk, (n/d))

Project manager

Leadership style:

According to Burke (2003), the project manager who has the skills to make

decisions and outlines the objectives, budget, and etc. for implementation. They

are the commander of the team, generate enthusiasm, and as well as the

motivation to the project team and stakeholders to work towards the objectives of

the project.

Leadership style can be considered as either democratic or autocratic.

However, in the project of Thompson, the manager should choose the

democratic style because it supports managers create the discussions between

the team in order to find a common decision. This leadership style brings

consensus within Thompson and can help employees actively in the

implementation of the project. With the leadership style, employees of Thompson

have the opportunity to offer good ideas. Therefore, the working spirit of

employees will be very high and achieve high performance. On the other hand, to

control a project effectively, the managers need to have the following skills:

15

MANAGEMENT OF PROJECTS• Skills in the management and planning

• Skills in empowerment

• Communication skills

• Skill in organizing and conducting the meeting

• Skills in the text editor

• Skills in the division, and labor layout

• Skills to encourage staff

Motivation:

Nowadays, there are many models to encourage staff that the company can

use such as: two-factor theory (Herzberg), Maslow hierarchy of needs, ERG

theory (Alderfer), and etc. However, in the case of Thompson, they can apply the

model of Maslow's hierarchy of needs in order to motivate employees.

Based on the model of "Maslow's hierarchy of needs" can see that the needs

of employee is reflected through aspects such as: physiological needs, security

needs, social needs self-esteem needs and self-actualization needs. So, if the

16

MANAGEMENT OF PROJECTSmanagers of Thompson can meet the needs for the employees, it will be a

factors can motivate employee working with the highest performance.

5. Project control

Time

According to the laws of nature, the time will come and go quietly, but it will never

come back. So, among all the resources that managers can use, the time is the

most precious thing and it is also the most difficult to use for good. For projects of

Thompson, to finish the project on June 5, 2014, each activities of Thompson on the

critical path must finish on time. If any activity is delayed, the managers must have

the solutions to overcome immediately because the time is a limited resource,

cannot be refreshed, and also cannot buy or rent from others. Thus, the manager of

Thompson can avoid the delay of activities by closely monitoring the progress of the

project, and informed those problems for the employee.

Cost control

Cost control is to ensure that the project is completed within budget allows (and

in the time limit allowed). According to Field and Keller (1998), cost control is the

control commitments in the future, and spending in the past will not be controlled. In

addition, the cost control of Thompson is a process of comparing the cost of the plan

with the actual cost of the project to determine the variables. After that process, the

managers will conduct a process of evaluating alternatives as well as the

appropriate action will give out. Besides, Thompson would need to collect cost data

in a systematic way such as:

- Labor hours were decimated

- Percentage of completion process of activities of the project

- Labor hours are not updated

- Identification of new activities in project

- The previous activities is not necessary in the plan

17

MANAGEMENT OF PROJECTSResource control

Resource control is also an important factor for the Thompson project. It is a

process of comparison between the actual performances with source plans in order

to emphasize the variances and offer the appropriate action. Besides, the managers

of Thompson can apply a number of methods to control resources such as:

- In order to complete the assigned task, it requires the project team members

have to prepare their individual plans

- Empowerment, providing authority, and as well as the appropriate information

for the project team members in order to help them complete the task.

- The basic objectives of the project must be clearly informed to help the

project team members can understand their tasks

Risk management

According PMBOK Handbook, Burke (2003), risk management is “the systematic

processes of identifying, analysing and responding to project risk through out the

project life cycle”. Thus, the purpose of risk management of Thompson's project is to

minimize risks capabilities while maximizing the potential opportunities for the

company. If an incident occurs without a contingency plan will lead to the project's

objectives are affected. The level of impact would delay schedule, budget overruns,

reduce quality, disorders of the internal organization, frustrate the entire project,

affecting the reputation and relationships with organizations or customers. So, the

manager of Thompson has to find the potential risks that have not been identified

into the risks can be identified, in parallel with the analytical and the reasonable

solution to deal with those risks. Currently, there are two types of risk, that are the

avoidable risk (can see prior to the start of the project) and the unavoidable risks

(only visible when it happened). The manager of Thompson can apply the Risk

Management Model for control the project.

18


On the other hand, the manager of Thompson can apply the Prioritizing Potential

Risks (Field and Keller, 2007) to assessing risk to the project.

19

MANAGEMENT OF PROJECTSAfter analysis of the risks to the project, the manager of Thompson can apply the

different methods to solve the problem as follows:

20

MANAGEMENT OF PROJECTS6. Conclusion

This report implement a project of Thompson Ltd. (opening of the new base). Based

on the SMART criteria, the company can determine the objectives should be achieved

in the project. In addition, through this report the company can finish the project on time

by time planning. In addition, factors such as: Project team, Project Manager,

Leadership styles, Motivation, Project Control, Time Management, Cost Management,

Quality Management, Risk management. These are important factors in the project

management and it is also very clear analysis. So Thompson Ltd. can use this report

apply to their projects.

21

MANAGEMENT OF PROJECTS7. Reference

Doran, G. T. (1981). There's an S.M.A.R.T. way to write management's goals and

objectives. Management Review, Volume 70, Issue 11(AMA FORUM), pp. 35–36.

Burke, R. (2003). Project Management, Planning and Control Techniques. San

Francisco, US: John Wiley and Sons.

Turner, R. (1993) Handbook of Project-Based Management. McGraw Hill.

Gantt.com (n/d) What is a Gantt chart? [Online]. Available at: <http://www.gantt.com/>

[Accessed 30 April 2014]

Philrichardson (n/d) Project Team Member [Online]. Available at:

<http://philrichardson.co.uk/pa450/teamwork/tm_role.htm> [Accessed 30 April 2014]

Handy, C. (1993) Understanding Organisations. Penguin.

22

http://philrichardson.co.uk/pa450/teamwork/tm_role.htm

http://www.gantt.com/


8. Appendix

Appendix 1: Work Breakdown Structure for moving project

23


24

MANAGEMENT OF PROJECTSAppendix 2: Sequence of activities

Activity

Identifie

r

Activity (Tasks) Duration

(Days)

Preceded

By

Thompson Ltd. expand the project 44 days

A Choosing the group members 5 days

Planning

B Time planning 3 days A

C Budget planning 3 days A

D Marketing planning 3 days B

E Backup plan 3 days C

Human resource

F Staff recruitment 15 days A

G Staff training 20 days F

H Appointment of new staff to the

appropriate position

3 days G

Moving to new premises

I Setting new standards for

premises

2 days D,E

J Search and choose the

appropriate location

10 days I

K Licensing 10 days J

L Setting out the design for the new

location

5 days

M Packaging and transporting 3 days L

N Buying new equipment 7 days L

O Equipment installation and

management software

5 days M,N

P Opening day 1 day H,K,O

25

MANAGEMENT OF PROJECTSAppendix 3: Gantt chart for moving project

26

MANAGEMENT OF PROJECTSAppendix 4: Network diagram for moving project

27

MANAGEMENT OF PROJECTSAppendix 5: Responsibility Matrix

P = Prime Responsibility

S = Support

N = Notify

Pro

jec

t

Man

ag

er

(PM

)

Fin

anc

e

Man

ag

er

HR

Ma

na

ger

Tra

ns

po

rtin

g

Co

mp

any

Ad

min

istr

ati

on

sta

ffs

Tec

hn

icia

n

Choosing the group members P S

Planning

Time planning P

Budget planning P S

Marketing planning P S

Backup plan P S

Human resource

Staff recruitment N P S

Staff training N S P S

Appointment of new staff to the

appropriate position

N P S

Moving to new premises

Setting new standards for premises S P

Search and choose the appropriate

location

S S P

Licensing P S S S

Setting out the design for the new location N S S P S

Packaging and transporting N P S

Buying new equipment N S S P S

Equipment installation and management

software

N S S S S P

Opening day P S S S S

28


29

MANAGEMENT OF PROJECTS

Documents

Transcript of MANAGEMENT OF PROJECTS