Project Management Plan (Osama Nasir's conflicted copy 2010-10-22)

BUSN7024 Project Management Principles

Semester 2, 2010 – Major Assignment

Project Management Plan

Algae Nursery System

Azim Khan U4009419Emma Shaw U4924015Osama Nasir U 4786695Ruoying Liang U4638781

Stephanie Mutiara U4820179

Word Count: 21,310

Due Date: Friday, 22 October 2010

E-copy: via email to [email protected]

Paper copy: assignment box, ABIS School Office

File Name: document.doc

mailto:[email protected]

Writing Documentation That Works Contents

Team Number: 7

By signing on Table 1 each member acknowledges his or her agreement with the stated contribution to the overall assignment made by each team member.

Name Student No Contribution Signature

Azim Khan U4009419 A

Emma Shaw U4924015 A

Osama Nasir U4786695 A

Ruoying Liang U4638781 A

Stephanie Mutiara U4820179 A

Table 1: Membership and Individual Contribution.


Use the following convention to state each member contribution to the total effort A = very good contribution, the team member went above the expected

participation level. B = good contribution, the member participated as expected and was diligent

in performing the assigned tasks. C = less than satisfactory contribution, the member participation and

contribution was less than the average for the team. D = the member had minimal participation on the team effort, shown lack of

commitment to the team and significantly increased other members’ workload.

E = the team member did not contribute at all to the team.

The team shall discuss and agree on the contribution level for each team member. Your signature on Table 1 indicates your agreement with the assessment of contribution. A lack of signature will indicate dissatisfaction with the attribution. Please note, if half or less than half of the team sign the contribution assessment, a penalty of 5% will apply to the assignment’s mark.

To encourage the teams to strive to perform as a team, penalties will be assigned to students that perform below the minimum expected level (see Table 2).

Individual contribution to the team’s effort. Penalty to be applied to the assignment’s mark for the particular student

A 0%

B. 0%

C 15%

D 50%

E 100%

Table 2: Human Resources Mismanagement Penalties.

This page is confidential and will NOT be seen by the class. The lecturer will delete this page before releasing the document for class access on the web site.


Acknowledgement

Walter Fernandez is grateful to the author of this template, David Tuffley, who generously allowed him to modify the template and to use it at ANU.

Plagiarism

✍ Plagiarism will not be tolerated . It is the responsibility of the team to ensure that proper citation and quotation conventions are followed. Failure to observe this rule will result in a zero mark for the entire assignment, regardless of the magnitude of the infringement. Further action(s) might be considered on a case-by-case basis.

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Contents

Contents ii

1. Executive Summary 1

2. Project Introduction 2

3. Project Integration Management 3

3.1. Project Plan Development..........................................................33.2. Project Plan Execution...............................................................4

3.2.1. Project Initiation...................................................................43.2.2. Project Direction..................................................................43.2.3. Project Planning, Monitoring and Controlling Cycle............43.2.4. Project Closing....................................................................4

3.3. Integrated Change Control.........................................................5

4. Project Scope Management 6

4.1. Initiation......................................................................................64.1.1. Product Description.............................................................64.1.2. Strategic Plan......................................................................74.1.3. Project Selection Criteria.....................................................7

4.2. Scope Planning..........................................................................84.2.1. Product Description.............................................................84.2.2. Project Charter....................................................................8

4.3. Scope Definition.........................................................................94.3.1. Scope Statement.................................................................94.3.2. Work Breakdown Structure (WBS)....................................10

4.4. Scope Verification....................................................................104.4.1. Critical Success Factors....................................................104.4.2. Evaluation Measures........................................................10

4.5. Scope Change Control.............................................................114.5.1. Scope Changes.................................................................114.5.2. Corrective Action...............................................................114.5.3. Documentation..................................................................12

5. Project Time Management 13

5.1. Activity Definition......................................................................135.2. Activity Sequencing..................................................................135.3. Activity Duration Estimating......................................................14

5.3.1. Basis of Estimates.............................................................14

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5.4. Schedule Development............................................................145.4.1. Project Schedule...............................................................145.4.2. Schedule Management Plan.............................................145.4.3. Resource Requirement Update........................................155.4.4. Constraints and Assumptions...........................................15

5.5. Schedule Control......................................................................155.5.1. Schedule Updates.............................................................155.5.2. Corrective Actions.............................................................16

6. Project Cost Management 17

6.1. Resource Planning...................................................................176.1.1. Resource Requirement.....................................................18

6.2. Cost Estimating........................................................................206.3. Cost Budgeting.........................................................................266.4. Cost Monitoring, Controlling and Reporting.............................26

7. Project Quality Management 30

7.1. Scope.......................................................................................307.2. Quality Objective......................................................................317.3. Quality Control..........................................................................317.4. Organisational Structure and Responsibilities..........................337.5. Quality Management Process..................................................35

7.5.1. Quality Planning................................................................357.5.2. Quality Assurance.............................................................407.5.3. Quality Control..................................................................41

7.6. Other Considerations...............................................................437.6.1. Quality Cost Monitoring and Reporting.............................437.6.2. Leadership........................................................................447.6.3. Organisational Influence, Workplace Factors and Quality 447.6.4. Expectations and Cultural Differences..............................44

8. Project Human Resource Management 45

8.1. Organizational Planning.............Error! Bookmark not defined.8.1.1. Role and Responsibility Assignments...............................458.1.2. Staffing Management Plan..Error! Bookmark not defined.8.1.3. Organizational Chart...........Error! Bookmark not defined.8.1.4. Support Detail.....................Error! Bookmark not defined.

8.2. Staff Acquisition..........................Error! Bookmark not defined.8.2.1. Project Staff Assigned.........Error! Bookmark not defined.8.2.2. Project Team Directory.......Error! Bookmark not defined.

8.3. Team Development....................Error! Bookmark not defined.8.3.1. Input to Performance Appraisals.......Error! Bookmark not defined.

8.3.1.1. Employee Self-evaluation Assessment...............Error! Bookmark not defined.

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8.3.1.2. Team Evaluation Assessment. . .Error! Bookmark not defined.

8.3.2. Performance ImprovementsError! Bookmark not defined.8.3.2.1. Improvement in Individual Skills Error! Bookmark not defined.8.3.2.2. Improvement in Team BehaviorsError! Bookmark not defined.

9. Project Communication Management 48

9.1. Communications Planning........................................................609.2. Information Distribution............................................................61

9.2.1. Introductions to New Stakeholders and Negotiation.........629.2.2. Meetings, Presentation and Reports.................................659.2.3. File Management..............................................................68

9.3. Performance Reporting............................................................719.3.1. Communications Hierarchy...............................................74

9.3.1.1. Top Down Communication........................................759.3.1.2. Bottom Up Communication........................................769.3.1.3. Middle Out Communication.......................................77

9.4. Administrative Closure.............................................................799.5. Other techniques for information and communications management......................................................................................81

10. Project Risk Management 82

10.1. Risk Management Planning...................................................8310.1.1. Organisational Risk Management Policies......................8310.1.2. Risk Planning Meetings and Analysis.............................8410.1.3. Risk Planning Meetings and Analysis.............................8510.1.4. Methodology...................................................................8610.1.5. Roles and Responsibilities..............................................8610.1.6. Risk Categories...............................................................8810.1.7. Project Risks...................................................................88

10.2. Risk Identification...................................................................9110.2.1. Tools and Techniques.....................................................9210.2.2. Risk Register...................................................................94

10.3. Qualitative Risk Analysis........................................................9410.4. Quantitative Risk Analysis......................................................9510.5. Risk Monitoring and Control...................................................95

10.5.1. Monitoring.......................................................................9610.5.2. Controlling.......................................................................9610.5.3. Reporting........................................................................96

10.6. Risk Response Planning........................................................9710.6.1. Negative Risks................................................................9710.6.2. Positive Risks..................................................................98

11. Project Procurement Management 99

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11.1. Procurement Planning............................................................9911.2. Solicitation Planning.............................................................10011.3. Solicitation............................................................................10111.4. Source Selection..................................................................10211.5. Contract Administration........................................................10311.6. Contract Closeout................................................................104

12. Conclusion 105

13. Appendix A - Project Gantt Chart 106

14. Appendix B - Table 6.3. Project Cost Baseline 107

15. Appendix C - Monthly Project Financial Performance Report Template 108

16. Appendix D - Year to Date Project Financial Performance Report 109

17. Appendix E - Labour Cost Analysis Report 110

18. Appendix F – WBS 111

19. Appendix G – WBS Dictionary 112

20. References 116

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1. Executive Summary

The Nursery System Project will automate the early cultivation of micro-algae. Automation of this process is needed in order to prepare commercial quantities of micro-algae which can in turn produce commercial quantities of bio-fuel. The Nursery System will monitor and control the growth of micro-algae from the laboratory to the large tanks in which the micro-algae is grown.

This project will be considered successful based on stakeholder acceptance of the project, with all changes noted and documented and stakeholder acceptance of these changes, as well as a working nursery system that endures an allotted amount of time without technical failures.

This project management plan details each phase of the project the project manager must complete in order to deliver a successful product. This includes project cost, time and scope management, project quality management, communications, risk, procurement and human resources management, and overall project integration management procedures and methods for the successful project manager.

The project will cost $$$ and will take 271 days to complete. The project has been planned to produce a product of high quality, ensuring the commercial viability of the Nursery System. The project will be complete when key stakeholders from the ANU BioSolar Program are satisfied that the Nursery System meets their requirements.

The major risks for this project include:

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2. Project Introduction

The Australian National University has developed bio-technology which allows crude oil to be sourced from micro-algae. The development of this technology allows for a renewable source of energy. In a world of finite non-renewable energies, the uses for this renewable source of energy are many and varied.

However, the micro-algae needs carefully grown and monitored. The environment in which it is grown must be carefully regulated for light, pH, temperature and water to ensure that the algae do not die. Current processes for encouraging the growth of algae involve transferring the algae by hand from a series of smaller ponds into a series of larger ponds, to ensure that the algae does not die from overexposure to water.

The Nursery System project will automate this process. By automating the process, the project will not only reduce the time and effort required in growing algae into commercial quantities for oil production, but create an exportable system in which any business can use the nursery system to develop its own algae for bio-fuel production.

The nursery system project includes the development of a user manual, which will enhance the marketability of the system, and also ensure that the technology can be widely used.

By creating the nursery system, the project team will be contributing to the transfer from reliance on fossil fuels to a more environmentally friendly use of renewable bio-fuels.

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3. Project Integration Management

Project integration management is key to ensuring the overall success of the project. It involves coordinating all of the other project management areas throughout the project’s life cycle.

3.1. Project Plan Development

The Project Plan has been created following the nine key project management principles – cost, time, scope, quality, communications, risk, procurement, human resources and project integration – so that project management plan provides a comprehensive overview. This project management plan provides consistency across all nine areas to ensure that all aspects of the project have been planned for.

Please, refer to the table of contents for a full list of all the plans and documents that have been designed for this project.

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3.2. Project Plan Execution

3.2.1. Project Initiation

The project will be initiated at the instigation of the ANU BioSolar Program. The project will be selected by key stakeholders from the ANU BioSolar Program, who will also consider the development of the business case, determine scope, time and cost constraints, identify the project sponsor, and select a project manager.

3.2.2. Project Direction

The project will be directed by the project manager, under whose authority all decisions will be made, in conjunction with the Change Control Committee. The project manager’s decision will be final. The project manager alone can endorse and initiate each of the work activities under the Work Breakdown Structure.

3.2.3. Project Planning, Monitoring and Controlling Cycle

The project planning, monitoring and controlling Cycle will be performed through constant communication, both oral and written. Formally, monitoring and controlling will be managed through written documents which include the weekly progress report, exception reports for management on issues of particular interest that arise during the project, and the final lessons learned report.

The planning, monitoring and controlling cycle will constitute a ‘feedback loop’ in which any deviations from the project schedule, budget or scope are fed back into the planning and executing phases so that any changes are accounted for and absorbed, ensuring that the project will meet its deliverables.

Documenting ensures that all project team members and management have a full record of the execution phase of the project.

3.2.4. Project ClosingThe closing phase of the project includes formal acceptance of the nursery system, administrative activities associated with the end of the project, and the preparation of reports for stakeholders and the wider community.

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3.3. Integrated Change Control

Integrated change control will be performed in this project. Any change requests will be considered by a Change Control Committee, consisting of the project manager, project sponsor, and key stakeholders such as the head of the ANU BioSolar program. Any change will be considered in the light of its impact on project schedule, cost, quality and overall potential improvement of the Nursery System. All rejected and approved changes, and the reasons for rejection or approval, will be documented in a Change Management document, which, together with the original scope statement, will form the project scope baseline. For more detail about integrated change control, please see section 4.5.

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4. Project Scope Management

The scope of this project is described below. It has been compartmentalized into the following areas: initiation; planning; definition; verification and change control.

4.1. Initiation

The project has been authorized by Dr. Walter Fernandez as a part of the bio duel solar energy program. The reason for its authorization is the ultimate need of an automated system for the early cultivation of algae before pouring it to the large ponds. The business need that this project has been developed is to automate the process of early cultivation algae in the nursery considering all of the factors that affect the cultivation. This is important to the industry because it will minimize the human effort. In its early stages, micro-algae need to be carefully cultivated to ensure it does not die. The micro-algae are sensitive to fluctuations in water quantity, temperature, light, pH and nutrients. The survival of the micro-algae in its early stages is vital to ensuring commercial production of the micro-algae later.

This is the plan for the initial planning phase of the project, it is anticipated that once the project enters execution phase a new or modified plan will be established updating the various changing criterion.

The main purpose of the project is to automate the process of micro algae early cultivation that helps in the production of bio fuel.

4.1.1. Product Description

The product that will be produced at the end of this project will be a nursery system that can be supplied to any where required. The nursery system will consider all the important factors that affect the cultivation of algae and its quality i.e., temperature, pH and nutrients etc. The nursery system will consist of number of tanks with different sizes. Since, algae grow initially in smaller tanks and then need a large area to cultivate; nursery system will monitor and control the flow of algae in these tanks with considering the factors affecting it.

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4.1.2. Strategic Plan

This project is congruent with the strategic plan and long-term objectives of the organisation. This is reflected particularly strongly by the will to enter the bio fuel production markets.

4.1.3. Project Selection Criteria

This project has been selected because there was a severe need of an automated system to control the flow of algae in the early cultivation of algae. This project is also an integral part of the overall bio fuel solar energy program to assist the production of bio fuel.

The product of this project is a nursery system that can be transferred to anywhere it is required and control the early cultivation of algae.

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4.2. Scope Planning

4.2.1. Product Description

For a description of the product of this plan, please refer to topic 4.1.1.

4.2.2. Project Charter

The Business Need

The business need of the system is to minimize the amount of human effort in the early cultivation of algae. This is important to the business because large number of human efforts require large amount of money. With the automated system human effort will be decreased and this system will be one time investment.

Product Description

The product that will be produced at the end of this project will be a nursery system that can be supplied to anywhere required. The nursery system will consider all the important factors that affect the cultivation of algae and its quality i.e., temperature, pH and nutrients etc. The nursery system will consist of number of tanks with different sizes. Since, algae grow initially in smaller tanks and then need a large area to cultivate; nursery system will monitor and control the flow of algae in these tanks with considering the factors affecting it.

Product Manager

The project manager for this project is to be Mr. XYZ. XYZ will have the full authority over the budget and resources allocated to this project. No further seeking of resources will be accepted unless it is presented by XYZ.

Constraints

Budgets and time

Availability of Human Resources

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Assumptions

It is assumed that:

There will be constant easy access to the Program Director;

Bio fuel will not be superseded by another type of technology before production begins;

No member of the project team will leave the team before the end of the project.

4.3. Scope Definition

4.3.1. Scope Statement

The scope of the project is to develop a project management plan for nursery system project. The Nursery System Project Management Plan will provide a project plan for the development of a Nursery System which can be exported anywhere around Australia. The business need of the system is to minimize the amount of human effort in the early cultivation of algae.

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4.3.2. Work Breakdown Structure (WBS)

Please, refer to Appendix F – WBS.

4.4. Scope Verification

This section seeks to identify the critical success factors and evaluation of those factors upon delivery of the strategic plan to the stakeholders.

4.4.1. Critical Success Factors

There are number of critical success factors that will decide whether the project has been successfully completed. They are described as follows:

1. The nursery system is completed meeting all the required specifications;

2. The project is completed in a time as was planned;

3. The nursery system is in a working condition with ease;

4. It is easy to train a person with all the functional & technical specification of the system; and

5. The system meets all of the quality standards as were planned.

4.4.2. Evaluation Measures

Stakeholders can check the quality by deploying the prototype system on a small scale. The output of the system can be analyzed. After testing the prototype system, the system will be deployed on the production site where the output can be further analyzed.

After testing this, stakeholders can decide whether system is meeting all of the requirements or is it missing few of the features as planned.

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4.5. Scope Change Control

This section defines how planning and management of changes to the scope, via change request, is carried out. This section also details how any scope management plans; corrective actions and lessons learnt documentation should be completed.

4.5.1. Scope Changes

Any change requests will be considered by a Change Control Committee, consisting of the project manager, project sponsor, and key stakeholders such as the head of the ANU BioSolar program. Any change will be considered in the light of its impact on project schedule, cost, quality and overall potential improvement of the Nursery System. All rejected and approved changes, and the reasons for rejection or approval, will be documented in a Change Management document, which, together with the original scope statement, will form the project scope baseline.

For any change requests that come during the project, a proper path of communication will be required to communicate the change to the respective authority. The request must include the strong justification and grounds for implementing the change. The request should be submitted to and approved by the project manage. If the project manager feels that this change request is of any worth, then he may approve it and forward to the program manager. Both project and program managers will reserve the right to contest the change based on practicalities and delays caused, costs incurred and quality effects. Once approved, the requested changes will be integrated in to the project plan, which will be disseminated to each stakeholder, including the effects on costs, timeliness and quality. The base line should remain the same and the changes should be mentioned separately.

4.5.2. Corrective Action

Where a scope change request has been submitted and approved, the following corrective actions shall apply.

1. It will be integrated into the project plan in a separate section;

2. New costs, timeframes and quality effects will be detailed;

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3. All new tasks will be integrated into the WBS and assigned;

4. All cost increases will be factored into phasing and overall budgets; and

5. The scope verification adapted to suit new deliverables.

If there is any change or delay in the timeline, which is not caused by any scope change, it has to be reported to the project manager. The program manager has to be informed about this delay by project manager. If the delay can be recovered through additional hours, the overtime can be paid to the employees who will work on it.

In the event of a major delay, a corrective action report (CAR) will be created giving options of how to proceed. This will include the amount required to get back on time, the quality drop that will be required to get back on time or the time that will be lost. This will be disseminated to the program manager and internal stakeholders.

4.5.3. Documentation

All changes, the efforts required to work on those changes and the communication done for the change requests are to be documented and approved by the project manager. The documentation has to be shared on Google Docs so that the whole project team has access on it. (Refer to Project Communications Plan for further description.)

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5. Project Time Management

This section describes all the strategies that have been adopted to manage the time, which affects one of the most important aspects of a project, i.e. Schedule. The section will start from the activity definition, continue with defining the duration of activities, the resources used in the activities, schedule development and will end with explaining how to manage control the time management process in schedule control section.

5.1. Activity Definition

Please see below the activity list for this project. All constraints and assumptions are listed in the project charter, in the scope initiation section (4.1.1).

Please, refer to the Appendix A – Project Gantt chart, Appendix F – WBS and Appendix G – WBS Dictionary.

5.2. Activity Sequencing

We have used Network diagram to show sequencing of activities. Network diagram is a schematic display of the logical relationships among, or sequencing of, project activities.

Please, refer to the Appendix A – Project Gantt Chart.

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5.3. Activity Duration Estimating

The Work Breakdown Structure contains the times that have been estimated, as shown below.

5.3.1. Basis of Estimates

This is a list of further assumptions that were taken during development of the estimates.

The number of human resources is assumed.

Raw material can be supplied without any interruption.

Feed of preliminary design and prototype will be provided on time.

5.4. Schedule Development

This section details the start and finish dates and how to manage the timelines for the project. The schedule assumes that the standard hours of the project are 8 hours per day 5 days per week, excluding public holidays.

5.4.1. Project Schedule

To view the project schedule, please refer to the Gantt chart attached in Appendix A – Project Gantt Chart.

5.4.2. Schedule Management Plan

If there is a schedule change or a delay in any specific task is identified before the activity becomes late, the project manager is to reallocate the necessary resources according to the changes that have occurred. The Project Manager should investigate why there was a delay going to happen. If it’s because of the resources that were assigned to the activities, necessary action should be taken against them.

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5.4.3. Resource Requirement Update

In the event of corrective actions being approved by the Project Manager, where there are cost or resource implications, these are to be tracked and included in the budget. This will be done by formal notification to the project accountant via email and followed up in writing. If there is an issue with the number of required resources, Project Manager should try to fill the space as soon as possible.

5.4.4. Constraints and Assumptions

The constraints on this section include standard hours to be worked, because it limits the ability of workers to complete tasks by their allotted time.

Assumptions

The number of required employees will always be available on time throughout the project.

The attendance of the employees will remain constant.

No employee will resign during the project.

There will be no significant and unrecoverable ‘lags’ in the proposed schedule.

5.5. Schedule Control

5.5.1. Schedule Updates

A schedule update is considered to be anything that changes the start or finish time of another work activity down to the level three tasks. These include any level four tasks or below that affect higher-level tasks. To assist in schedule management once a task is complete, the WBS will be updated via the online software. In addition, the person in control of completing the work activity is to advise the project manager and anyone whose task it will affect. The updated WBS will be saved as a new name with updated date as well. In that way, it would be easy to keep track of the changes and updates.

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5.5.2. Corrective Actions

In the event of a completion time that will affect another task either by allowing it to start earlier or forcing it later, a formal schedule update request must be submitted to the project manager with a corrective actions proposal including an estimated cost of any such proposal. If accepted by the project manager – with no corrective actions available – they will notify the project sponsor, program manager and any relevant internal and external stakeholders.

In addition, the project manager will inform the other team members affected about the change to schedule and seek any possible corrective actions from that work group to get the project back on time.

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6. Project Cost Management

Cost is one of the Triple Constrains of a project. To create a successful project, project manager must have a comprehensive consideration of the cost to achieve the project goals, any cost overestimate and underestimate may ruin the project during the project life cycle. This cost management plan serves to effectively and efficiently allocate resources for development of a strategic plan for developing a prototype of a nursery system with the capacity to cultivate 450 litres of algae for the Bio-fuel program.

The range of the total cost of the project would be +/-10% of the estimate cost ($306,360) which is between $275,724 and $336,996.

As a best practice guide PMBOK recommends the Project Cost Management processes include the following:

Resource Planning

Cost Estimating

Cost Budgeting

Cost Monitoring, Controlling and reporting

6.1. Resource Planning

Core resources determination is explicitly based on the Work Breakdown Structure (WBS) and the project scope statement presented in the project scope management section. Other resources, such as the office supplies, transportation and utilities etc, which are not directly related to the nursery system but indirectly related to the performance of the project, are included in the General and Administrative charges (G&A).

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6.1.1. Resource Requirement

The resource requirement table below presents the summary of core resources in quantity, type, and quality needed to efficiently develop the nursery system. The requirements of the job positions are stated in this table, while the descriptions of the job positions are presented in Human Resource Management Plan in details. The allocation and the cost of the resources at the WBS levels are presented in the cost estimate section.

Table 6.1.1. Resource Requirement Table

Resource Name HrsResource Description/Requirements

Labour 　　

Project Manager 512

1. More than five years of Project management experience as well as be PMI certified.

2. Strong planning, motivation and communication skills.

Senior Engineer/Analyst

1496

1. Master degree in biology science and/or engineering.

2. At least five years recent specialized experience.

Junior Engineer/Analyst 2

8881. Bachelor degree in biology science and/or engineering.

2. At least two years recent specialized experience.


584

Accountant 320

1. At least three years accounting experience, the majority of which should have been in a project related environment.

2. Computer literacy with experience in MSWord, excel.3. Must be able to work independently and meet deadlines in a team environment.

Technician 1 440 1. Relevant tertiary

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qualifications in biology science or/and engineering 2. At least two years experience in biology-related field 3. Excellent communication skills to work in a team.

Technician 2 440Technician 3 360

Technician 4 360

Procurement Specialist

1640

1. A purchasing certification is preferred.

2. A minimum of two years working in a general buying environment.

3. Considerable knowledge of purchasing methods and procedures and of the techniques of specification writing.

ANU expert 20Provide suggestions and solve the technical problems at technical level.

Hardware 　　

Desktop PC 10

Each PC will be assigned to each employee PC

Model: HP Pavilion P6325A I3-540 Pc or at the equivalent level.

Printers 5Model: Samsung CLP315 Colour Laser Printer or at the equivalent level.

Coulter Counter 1Estimate the culture density of the algae.

Fluorescent Tubes 3Artificial illumination to optimize growth.

Immersion Heater 4

2400 watt, 240 volt immersion heater to control the temperature for cultivating the algae at different stage.

Pines and Hoses 5Transfer the algae from small tanks to large tanks.

Air Filter 4Filters for air supply to prevent contamination.

Tanks 4

Used to contain the growing algae, the sizes of the tanks are 250ml, 250ml to 4l, 4l to 20l, 50l, respectively.

Materials 　　

Fertilizers Nutrient Media

500Fertilizer nutrients such as nitrogen, phosphorus,

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potassium and carbon source are needed to cultivate algae in the nursery system.

Glassware 5Contain the sample of the algae cultures.

6.2. Cost Estimating

Commonly used tools and techniques to assist in creating a cost estimate include analogous cost estimating, bottom-up estimating, parametric modelling, resource cost rates, project management software, vendor bid analysis and reserve analysis (Kathy Schwalbe, 2007).In this project, cost estimations are created using bottom-up estimates and based on the market prices for goods and services in the Australian economy and the Australian most popular job site SEEK.COM pay check survey. Every individual work items or activities in the WBS are allocated a cost and summed to get the higher level total.

When creating cost estimations and allocating costs to resources requirements, significant consideration is given to uncertainties such as major scope changes and extraordinary events. A 5% contingency reserve (estimated by predetermined guidelines and the risk level of the nursery system) is created to allow for future situations that may be partially planned for, and a 5% management reserves is set to allow for future situation that are unpredictable. Hence the budget is therefore flexible to cater for any uncertainties and the budget itself forms the cost control mechanism (Meredith J. and Mantel S, Jr. 2006).

Table 6.2. Project Cost Estimates

Notes:

1. General & Administrative charges (G&A) are calculated as 10% of the total cost of the core resources.

2. The project manager is assigned to complete several specific WBS activities in the project while he/she is managing the whole project, and all the labour costs of the project manager are calculated in the project management level.

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WBS activities

Resources Name

Unit/hr

Cost/

unit/hr

Subtotals

WBS level 1 totals

% of the total

Project management

　　　　 54681 17.85%

　

Project Manager 512 55 25960 　　project Accountant

320 40 12800 　　

Desktop PC 10 800 8000 　　Printers 5 150 750 　　G&A charges 　　 4971 　　

Initiating 　　　　 3344 1.09%Identify key

stakeholders Project Manager8 NA 0 　　

Hold project kick-off meeting

Project Manager 8 NA 0 　　Senior Engineer/Analyst

8 40 320 　　


8 30 240 　　


8 30 240 　　

Review Scope

Project Manager 56 NA 0 　　Senior Engineer/Analyst

56 40 2240 　　

　 G&A charges 　　 304 　　Planning 　　　　 90640 29.59%

Hold team planning meeting


40 40 1600 　　

Prepare team

contract Project Manager 40 NA0 　　

Gather functional

requirements


120 30 3600 　　


120 30 3600 　　

Gather technical

requirements


120 30 3600 　　


120 30 3600 　　

ANU experts 20 50 1000 　　

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Verify requirements


56 40 2240 　　

Review of Sensors

used


40 30 1200 　　


40 30 1200 　　

Review of the system

logic


40 30 1200 　　


40 30 1200 　　

Review communicati

ons environment


40 30 1200 　　


40 30 1200 　　

Review geographic

factors


56 30 1680 　　


56 30 1680 　　

Review of baseline


40 40 1600 　　

Identify sensors to

use


40 30 1200 　　


40 30 1200 　　

Identify new system logic


40 30 1200 　　


40 30 1200 　　

Identify communicati

ons consideratio

ns

Junior Engineer/Analyst 1 40

30 1200 　　


30 1200 　　

Identify mitigation of geographic

factors


30 1200 　　


30 1200 　　

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Identify target areas

for improvement


30 1200 　　


30 1200 　　

Define system

requirementsSenior Engineer/Analyst 160 40

6400 　　

Define target performance

metricsSenior Engineer/Analyst 48 40

1920 　　

Hardware vendors

Procurement Specialist 40 30

1200 　　

Coulter Counter 120000

20000 　　

Fluorescent Tubes

3 20 60 　　

Immersion Heater 4 100 400 　　Pines and Hoses 5 60 300 　　Air Filter 4 100 400 　　

Tanks 4100

04000 　　

Communications vendors


40 30 1200 　　

Design partners


40 30 1200 　　

Implementation partners


64 30 1920 　　

　 G&A charges 　　 8240 　　Executing 　　　　 75922 24.78%

Draft preliminary design documents

Senior Engineer/Analyst 240 40

9600

Preliminary hardware

designSenior Engineer/Analyst 80 40

3200 　　

Preliminary communications design


3200 　　

Preliminary support

environment design


3200 　　

Review preliminary

design documents


1600 　　

Project Manager 40 NA0 　　

Obtain feedback/input on design

Project Manager 40 NA 0 　　Senior Engineer/Analyst 40 40

1600 　　

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Review of design

based on feedback


1600 　　

Junior Engineer/Analyst 1 40 30

1200 　　


1200 　　

Develop detailed

hardware design Project Manager 40 NA

0 　　

Develop detailed support

environment design Project Manager 40 N A

0 　　

Align long/short

term design with

business goals

Project Manager 80 NA 0 　　


3200 　　

Procure Materials


3600 　　

fertilizers nutrient media(ml)

500 NA 1000 　　

Glassware 5 20 100 　　

Construct Prototype

Technician 1 96 40 3840 　　

Technician 2 96 40 3840 　　

Technician 3 96 40 3840 　　

Technician 4 96 40 3840 　　

Test Prototype


2400 　　


2400 　　

Evaluate Prototype against

requirementsSenior Engineer/Analyst 40 40

1600 　　

Make adjustments to prototype as needed

Technician 1 40 40 1600 　　

Technician 2 40 401600 　　

Re-Test prototype


1200 　　


40 30 1200 　　

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1600 　　

Review deployment team tasks

and timeline


960 　　

Project Manager 24 NA0 　　

Communicate impact to community Project Manager 24 NA

0 　　

Test Nursery System


960 　　


720 　　

Release to production/o

perations environment


960 　　

Obtain feedback


720 　　

Prepare user manual


720 　　


720 　　

　 G&A charges 　　 6902 　　Monitoring

and controlling

　　　　 42416 13.85%

Conduct weekly

progress meetings Project Manager 0 NA

0 　　

Document problem - tracking

proceduresSenior Engineer/Analyst 16 40

640 　　

Manage contracts

with suppliers


37920 　　

　 G&A charges 　　 3856 　　Closing 　　　　 11616 3.79%

Prepare final project report


1600 　　

Project Manager 40 　 0 　　

Document lessons learned


2400 　　

Junior 80 30 2400 　　

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Engineer/Analyst 1Senior Engineer/Analyst 80 40

3200 　　

Distribute to team

membersSenior Engineer/Analyst 24 40

960 　　

　 G&A charges 　　 1056 　　Reserves 　　　　 27620 9.06%

Management reserves

　　13809.9

5　　

Contingency reserves

　　　13809.9

5　　

Total 　　　　 306360 100.00%

6.3. Cost Budgeting

Project cost budgeting involves allocating the project cost estimate to individual work items over time. The main goal of the cost budgeting process is to produce a cost baseline for measuring project performance and project funding requirements. Based on the cost estimations, the following project budget baseline is planned to fully implement the project from initiation to completion.

The budget allocated in each month includes labour cost, the cost of hardware and materials that are expected to incur in that month. The office supplies, such as printers, desktop PC are depreciated using straight-line method in the whole project life at the project management level. The costs of other equipments, such as coulter counter, immersion heater, etc, which are directly related to the development of the nursery system are depreciated into the actual months of their corresponding WBS activities.

Please, refer to Appendix B - Table 6.3. Project Cost Baseline.

6.4. Cost Monitoring, Controlling and Reporting

Deviations from the cost baseline should signify critical cost performance signals of the project. Budget overrun or

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underutilization should be importantly considered as a major change to the budget (Project Management Institute, 2000). Therefore, a well-disciplined cost monitoring, controlling and reporting system is very important.

Project Management Institute (2004) suggests, a Project Manager, when planning for controlling project costs, should take the following items into account:

1. Influencing the factors that create changes to the cost baseline.

2. Ensuring requested changes are agreed upon

3. Managing the actual changes when and as they occur.

4. Assuring that potential cost overruns do not exceed the authorised funding periodically and in total for the project.

5. Monitoring cost performance to detect and understand variances from the cost baseline.

6. Recording all appropriate changes accurately against the cost baseline.

7. Preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage.

8. Informing appropriate stakeholders of approved changes.

9. Acting to bring expected cost overruns within acceptable limits.

In addition to the above, it is also recommended that a Project Manager takes into account the following:

1. Thorough planning of the work to be performed to complete the project

2. Good estimating of time, labour and costs

3. Clear communication of the scope of required tasks

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4. A disciplined budget and authorization of expenditures.

Project accountant plays an important role in ensuring that project costs are being routinely monitored, appropriately controlled and reported in a timely manner. As such, the following tasks must be performed by the project accountant in the cost control system:

1. Keeping track of project cost performance throughout the project life and conduct budget review in every month, planned milestone and project phase.

Refer to the following appendices for report templates:

Appendix C - Monthly Project Financial Performance Report Template

Appendix D - Life to Date Project Financial Performance Report

Appendix E - Labour Cost Analysis Report

2. Detecting and investigate the cause of the variance and make necessary recommendations to the project manager.

3. Ensuring that all appropriate changes are recorded accurately in the cost baseline under the project manager’s approval.

Based on the project accountant’s recommendations, the project manager should:

1. Schedule meetings and inform appropriate stakeholders of the changes; ensure that changes to the cost baseline are minimised, authorised and agreed upon by all stakeholders.

2. Rectify the changes and manage actual changes with the agreement of the stakeholders.

3. Distribute modified plans to the stakeholders and the management team.

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6.5. Other considerations

The followings are other considerations the project manager and the project accountant should take into account that may lead to the budget out of the range.

1. Resources over-allocation or under-allocation will end up with the delays of the deliverables and the increase of the costs. (Please refer to Human Resource Section for details)

2. As the budget of the project is estimated based on the market prices of the goods and services in Australia, the actual acquisition costs of materials and equipments will vary among vendors that might create the deviation from the estimated costs

3. Contingency reserves will be underestimated in the budget because of misestimating the level of the risks.

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7. Project Quality Management

The primary challenge of project management is to achieve the project goals and objectives while adhering to project constraints – usually scope, quality, time and budget (Cline et al, 2010, Schwalbe 2007). Juran (1988) suggests that, 90% of all problems in organisations are systematic and beyond the positive influence of staff. Unfortunately, this also includes issues related to quality (McManus and Wood-Harper, 2007). One of the greatest challenges faced by project managers is to get the process right first time and this means initiating a rigorous quality regime, which is both defined and measureable (McManus and Wood-Harper, 2007).

The importance and purpose of Project Quality Management is to ensure that the project will satisfy the needs for which it was undertaken (Schwalbe, 2007). Therefore, having a solid plan to address quality issues in this project is very important and this will help the project team to ensure stakeholders are satisfied with the outputs of this project.

7.1. Scope

This document will cover:

Quality Objectives

Quality Policy

Quality Organisational Structure and Responsibilities

Quality Management Process

Other Considerations

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7.2. Quality Objective

1. The final product of this project must be of highest standard, quality, and meets the approved performance specifications and requirements of the ANU’s BioSolar Program.

2. The final product must be flexible and compatible to accommodate any changes and deviations in the cost baseline, time baseline and performance specifications.

7.3. Quality Control

In operations management research there are many approaches or standard been recommended to address quality issues in a project management environment. For example, Total Quality Management (TQM) approach, ISO 9000 standard on quality, Project Quality Activity approach and Project Management Planning Quality Model, Capability Maturity Model to name a few (Zwikael and Globerson, 2004; Masters and Frazier, 2007; McManus and Wood-Harper, 2007). Among these, TQM and ISO 9000 standards are found to be the most adopted quality management principles in project management environment.

While both of these approaches are very similar it is recommended that this project adopts ISO 9000 principles as a matter of policy in managing project quality related issues. This project policy position is consistent with the overall project management framework principle adopted by the ANU (see http://projects.anu.edu.au/management/index.php, accessed on 15 September 2010). Table 7.3 outlines this policy.

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http://projects.anu.edu.au/management/index.php


Table 7.3. Quality Management Policy

Principles Descriptions

1. Customer focus

Understanding current and future customer needs; meet requirement; strive to exceed expectations; and link organisation’s objectives to customer needs

2. Leadership Leaders establish unity of purpose and direction for the organisation. They create the appropriate internal environment.

3. Involvement of People

Motivated, committed, and involved people at all levels accept ownership of problems, evaluate their own performance, and freely share information.

4. Process approach

Activities and related resources are managed as processes resulting in predictable results and improvement opportunities.

5. Systems approach to management

Integrate and align processes; focus effort on key processes; and understand interdependencies, capabilities, and constraints before starting projects

6. Continual Improvement

Use a consistent organisation-wide approach to continual improvement to include training in methods, goals to guide, and measures to track.

7. Factual approach to decision making

Ensure data and information are accurate, reliable, and accessible; make decisions and take action based upon analysing facts; and challenge opinions and decisions.

8. Mutually beneficial supplier relationships

Identify and select key partners; jointly develop and improve with partners; and openly share communication with them.

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Source: The Australian National University (2008), Course Notes of BUSN7024 – Project Management Principles, Semester 2, 2010.

7.4. Organisational Structure and Responsibilities

The organisational structure to carry out the Quality Management Plan is as follows:

Table 7.4. Quality Review and Audit Team

Quality Review and Audit Team

Job Responsibilities

Project Manager

1. Quality monitoring and control review and audit process and arrange audit meetings.

2. Quality policies are implemented throughout the entire project.

Project Accountant

1. Ensure that project is on budget and cost associated with quality control is accounted for through critical milestone audit points.

2. Conduct professional audits and report any changes in actual spend or available funds that will affect project quality

Senior Project Officer

1. Ensure that quality is maintained at all milestone points

2. Ensure that all critical events and activities are carefully implemented

3. Audit for any deviations, identify cause, and report for corrective actions

Senior Project Consultant (Scientist from ANU BioSolar Program)

1. Review project performance against the approved technical performance specification.

2. Provide necessary technical recommendation to the Project

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Manager and Project Director on quality improvements to ensure the project satisfies its technical objectives.

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Quality Management Process

Project Management Body of Knowledge (PMBOK) prescribes three main processes as being quality management process. These are, planning quality, performing quality assurance and performing quality control (PMI, 2004). These are discussed below.

7.4.1. Quality Planning

Quality planning involves identifying which quality standards are relevant to the project and determining how to satisfy them (PMI, 2004). PMBOK also recommends that quality planning should be performed in parallel with the other project planning processes (PMI, 2004). As mentioned above in Table 1, the ISO 9000 has been adopted as a matter of policy for this project and this table also provides guidance for the Project Manager as to what needs to be performed during quality planning stage to ensure that Quality Policy (ISO 9000) is adhered to during this project.

Researchers in the project management suggests that, by asking probing questions and challenging the assumptions i.e., the validity of estimates and project delivery methods, it is possible to steer a situation towards an environment where either where either the problem does not exist or the objectives can co-exist and hence can be collectively achieved (Gill, 2008). Following this approach the PM can empower each project team member to raise any quality issues that may adversely impact customer satisfaction KPIs. PM then can raise those issues in the Quality Review and Audit Team to resolve them and document the issue and resolution in the Quality Management Plan. This could significantly minimise any potential risk of poor customer satisfaction from project deliverables.

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Project scope is an important consideration in planning for project quality management. It is PM’s responsibility to ensure that s/he takes project scope into account in planning and executing project quality management. Project quality planning also involves communicating the correct actions for ensuring quality in a format that is understandable and complete (Schwalbe, 2007). For example, in order to satisfy the first principles of ISO 9000, the Project Manager should carefully document and explain any key performance indicators (KPIs) that may have been given by the customers to the entire project team (including any third party resource provider). This will ensure that customer needs are fully understood by each member of the project team.

PMBOK suggests that a quality management plan may be formal or informal, highly detailed or broadly framed, based on the requirements of the project (PMI, 2004). Due to the level of technical complexity that could be involved in executing this project, it is recommended that the quality management plan is prepared is a formal and as detailed plan as practical to ensure the quality policy can be adhered to through out the project.

In summary, organisational policies related to quality, the particular project scope statement and product descriptions, and related standards and regulations are all important input to the quality planning process (Schwalbe, 2007)

Table 7.5.1 summarises a range of checkpoints, at various WBS levels, that the PM should ensure that the recommendations provided in this quality management plan is adhered to.

Table 7.5.1. Quality Management Plan

WBS Number

Activities Recommendation on Quality Management

1.1 Project Initiating

Project manager must ensure that the project team has the correct information on Project Scope and Project Budget and an approved copy of this Project Management Plan before Project Kick-Off meeting.

In Project Kick-Off meeting, PM must go through the project scope thoroughly and seek feedback from the respective team members to ensure the project scope is clearly understood by team members.

1.2 Project Project manager must ensure that performance and process

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Planning audits are done at all milestone points throughout the project.

1.2.3.3 Verify Technical

and Functional

Requirement

At this point, Project Manager must ensure that the technical and functional requirements have been reviewed and endorsed by Senior Scientific Consultant.

Report any process and performance deviations to relevant stakeholders and take immediate corrective actions

Obtain sign-off from the Quality Management Committee to ensure project objectives have been catered for in identifying the technical and functional project requirements.

1.2.4 Analysis Appropriate data analysis methods (qualitative or quantitative) must be used to analyse data through out the project

Data analysis process must be clearly defined and free of personal influences and subjective information

Analysed data must be accurately tabulated and presented for documentation

Adequate funding must be allocated for quality data analysis

Data analysis must be conducted within the planned budget

Any deviation/variance to the cost baseline must be notified and investigated

Corrective actions must be immediately taken to rectify

Sufficient time must be allocated for quality data analysis

Data analysis must be conducted within the planned schedule/time

Any delays/ over-run to the scheduled time must be notified and investigated

1.2.4.2 Review of baseline

Obtain sign-off from the Quality Management Committee to ensure all requirements in Project Scope are achievable within the Project Baseline.

Report any process and performance deviations to relevant stakeholders and take immediate corrective actions

Project Accountant must conduct financial and cost audits at all milestone points throughout the project life

Report any variances from the cost baseline to project manager to take necessary actions

Time/schedule audits must be conducted to ensure that lower level activities are implemented on time to achieve higher level/ milestone activities

Causes of delays or early execution must be investigated and necessary actions immediately taken to ensure quality

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1.2.4.6 Review Current Market Solution Vendors

Project Manager should utilize the Project Procurement Plan to ensure quality process is maintained during procurement process. Research on current suppliers and type, kind, quantity, and quality of raw materials is a crucial milestone activity of the project. The research method, type, time allocation, sources of information, and qualifications and skills of research officers are critical for quality research outcome. This high level activity is the core activity of the project; hence, adequate funding and time must be allocated to achieve high performance and quality. Following factors must be addressed and performed during procurement process:

Research problem/area must be properly stated and specifically defined

Research officers must be qualified and have necessary research skills and knowledge

Research must be conducted within the planned budget

Research must be conducted within the planned schedule/time

Appropriate research design, methodology and type must by employed

Genuine and reliable sources of data are used for literature review

Adequate funding must be allocated for quality research outcome

Any deviation/variance to the cost baseline must be notified and investigated


Sufficient time must be allocated for quality research outcome

Any delays/ over-run to the scheduled time must be notified and investigated


1.3 Executing Implementation should be according to this Project

Management plan

Implementation process should be according to planned quality procedures and standards

Performance audits/checks must be conducted through meetings at every key milestones or deliverables

Any deviations must be accounted for and sources identified for immediate corrective actions

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Adequate funding must be allocated for strategic plan implementation

Implementation process must be executed within the planned budget/costing

Any deviation/variance to the cost baseline must be notified and causes/sources investigated

Corrective actions must be taken immediately rectification

Budget provisions must be made to cater for any contingencies during the course of strategy implementation

Sufficient time must be allocated for strategic plan implementation

Implementation process must be executed within the planned schedule/time

Any delays/ over-runs to the scheduled time baseline must be investigated and identified

Corrective actions must be immediately taken to rectify sources

Time allowance must be made to cater for any changes to the scheduled time baseline

1.4 Monitoring, Controlling and Reporting

Performance audit/risk management committee must be established

Performance audits/checks must be conducted through meetings at every key milestones /deliverables

Any deviations/changes must be accounted for and sources identified for immediate corrective actions

Adequate funding must be allocated for strategic plan implementation reviews

Review process must be executed within the planned budget/costing

Any deviation/variance to the cost baseline must be notified and causes/sources investigated

Corrective actions must be taken immediately rectification

Sufficient time must be allocated for strategic plan implementation review process

Review process must be executed within the planned schedule/time

Any delays/ over-runs to the scheduled time baseline must be investigated and identified

Corrective actions must be immediately taken to rectify sources

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Time allowance must be made to cater for any changes to the scheduled time baseline

7.4.2. Quality Assurance

The Quality Review Team should hold regular meeting (either weekly or fortnightly) to address any quality issues related to this project. Figure 7.5.2 outlines the recommended flow of activities to ensure quality is maintained throughout every step of this project.

Figure 7.5.2. Quality Assurance Approach

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Quality Audit and review team MeetingConvened

Quality Deviations/Defects in time, cost, and performance specifications identified and thoroughly discussed.

Resolutions in according with Quality Management Policy of this project and recommendations adopted and plans made for immediate corrective actions

PM to report to stakeholders on critical changes in scope, cost, schedule and performance for approval and resource requirements

Approved Quality improvement recommendations and resolutions are implemented by respective project teams

Reports on the corrective actions including normal audit reports are ready for the next meeting and communicated to the relevant stakeholders.


Quality assurance (QA) provides an umbrella for another important quality activity, continuous process improvement (PMI, 2004). Activity and information flows in Figure 7.5.2 hinges on the ongoing fostering of continuous improvement culture and motivation within the project team. By fostering continuous improvement philosophy within the project team will reduce waste of resources and non-value-added activities, which in turn allows processes to operate at increased levels of efficiency and effectiveness.

7.4.3. Quality Control

Performing quality control (QC) in a project involves monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. Although one of the main goals of quality control is to improve quality, the main outcomes of this process are acceptance decisions, rework, and process adjustments (Schwalbe, 2007). PMBOK recommends that quality control should be performed throughout the project duration (PMI, 2004).

There are many general tools and techniques to assist in performing quality control. Table 7.5.3 below provides a brief description of these tools.

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Table 7.5.3. Tools of Quality Control

Tools / Methods Short Descriptions

1. Cause and Effect Diagram (Fishbone or Ishikawa Diagram)

Illustrate how various factors might be linked to potential problems or effects.

2. Control Charts Purpose of Control Chart is to determine whether or not a process is stable or has predictable performance. This may also serve as a data gathering tool.

3. Run Chart This method shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Trend analysis is performed using run charts.

4. Scatter Diagram A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables.

5. Histogram Histogram is bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation.

6. Pareto Charts Pareto chart is a specific type of histogram, ordered by frequency of occurrence, which shows how many defects were generated by type or category of identified cause.

7. Flow Chart Flowcharting helps to analyse how problems occur. A flowchart is a graphical representation of a process. While there are many styles of flowchart, all process flowcharts show activities, decision points and the order of processing.

8. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control.

9. Inspection An inspection is the examination of a work product to determine whether it conforms to standards. Generally, the results of an inspection include measurements. Inspection can be conducted at any level.

10. Defect Repair Review Defect repair review is an action taken by the quality control department or similarly titled organisation or team to ensure that product defects are repaired and brought into compliance with requirements or specifications.

Source: PMI (2004)

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The first seven of the tools in Table 7.5.3 are known as “Seven Basic Tools of Quality” (PMI, 2004).

Given the nature of this project, it is recommended that the PM uses a combination of the abovementioned approaches to monitor, control and report on quality management related issues. This will allow and benefit the PM to monitor, control and report on both technical and non-technical oriented quality related issues.

This project management plan recommends the following approaches/tools to analyse, monitor, report and control quality for this project:

Cause and Effect Diagram

Flow Chart

Run Chart

Inspection

Defect Repair Review

7.5. Other Considerations

In addition to the above suggestions and plans provided for good quality planning, quality assurance and quality control, there are several other important issues involved in improving the quality of a project (Schwalbe, 2007). Strong and supportive leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organisation’s overall maturity level in project management can all assist in improving quality.

7.5.1. Quality Cost Monitoring and Reporting

The cost of quality is the cost of conformance and non-conformance in meeting the project specification and fitness for use. There are various types of cost of quality that the PM needs to be aware of during the execution of this project. Schwalbe (2007) suggested that the following costs are related quality cost:

Prevention cost

Appraisal cost

Internal failure cost

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External failure cost

Measurement and test equipment cost

To control budget, it is strongly recommended that during the execution of this project there is structured and routine reporting and monitoring on quality cost. This will allow PM to take corrective action in a timely manner without compromising quality.

7.5.2. Leadership

Quality expert, Joseph M. Juran once (in1945) said, “It is most important that top management be quality minded (cited by Schwalbe, 2007). Indeed, without sincere manifestation of interest in maintaining high standard of quality at the top level management of an organisation, there is high risk in a project in producing poor quality output. For this project to accomplish its objective, it is important that top management must create a culture that embraces quality.

7.5.3. Organisational Influence, Workplace Factors and Quality

Research shows that organisational issues can have much greater influence on productivity than the technical environment or superiority (Schwalbe, 2007). As such, the PM of this project should keep in mind factors such as organisational politics. The PM function is to remove political roadblocks and create an environment where negative organisational influence does not adversely impact project quality and objective.

7.5.4. Expectations and Cultural Differences

Schwalbe (2007) argues that there are many aspects of quality can be defined and measured, many cannot. She suggests that different project sponsors, customers, users and other stakeholders have different expectations about various aspects of a project. Therefore, it is very important for the PM of this to understand these expectations and manage any conflicts that might occur due to differences in expectations from various stakeholders.

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8. Project Human Resource Management

People are the most important asset as they determine the success and failure of organizations and projects (Kathy Schwalbe. 2007). This section is created to assist the project manager in managing human resources effectively; the components of this section are as follows:

Human resource planning

Staff acquisition

Team development

Team management

8.1. Human Resource Planning

This human resource plan is created to identify and document project roles, responsibilities, and reporting relationships involved in the project. The Organizational Chart, Roles and Responsibilities Assignments, RACI Chart, Staffing management plan in this plan are used to ensure project success.

8.1.1. Organizational Chart

This organizational chart provides an organizational structure to manage the project team members that come from different backgrounds and have different functions in the project.

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8.1.2. Roles and Responsibilities Assignment

Position descriptions and qualification criteria are essential to select the right people to do the job and ensure all the tasks in the project are assigned to certain people.

Table 1.2. Roles and Responsibilities Assignment

Project Management Position

Responsibilities Qualifications

Project Manager Ensure the Project Team completes the project

Develop the Project Plan with the team and manages the team’s performance of project tasks

Secure acceptance and approval of deliverables from the Project Sponsor and Stakeholders

Make sure the project is delivered in budget, on schedule, and within scope.

1. More than five years of Project management experience as well as be PMI certified.

2. Strong planning, motivation and communication skills.

Project Accountant

Keeping track of project cost performance

At least three years accounting

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Project Manager

Scientific Consultant

Project Accountant


Senior Engineer

Junior Engineer/Analyst

1

Junior Engineer/Analyst

2

Technician 1 Technician 2Technician 3

Technician 4


throughout the project life and conduct budget review in every month, planned milestone and project phase.

Detecting and investigate the cause of the variance and make necessary recommendations to the project manager.

Ensuring that all appropriate changes are recorded accurately in the cost baseline under the project manager’s approval.

experience, the majority of which should have been in a project related environment.

Computer literacy with experience in MSWord, excel.

Must be able to work independently and meet deadlines in a team environment.


Establishing and maintaining project technical requirements

Directing the technical implementation according to established schedules and budgets

1. Master degree in biology science and/or engineering.

2. At least five years recent specialized experience.

Junior Engineer/Analyst1

Watching day-to-day progress and quality of work, supervising the work as per specification, maintaining quality control records carrying out quality control tests

Assess the requirements of materials like, fertilisers nutrient media, Immersion Heater, and coulter counter etc. for the nursery system

Bachelor degree in biology science and/or engineering.

2. At least two years recent specialized experience.

Junior Engineer/Analyst2

Technician 1 Constructing and maintaining the works involved to develop the prototype of the nursery system

Top of Form 1. Relevant tertiary

qualifications in biology science or/and engineering 2. At least two years experience in biology-related field 3. Excellent communication skills to work in a team. Bottom of

Technician 2

Technician 3

Technician 4

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Form


Develop the solicitation document that states the requirements for acquiring of raw material for nursery system.

Develop a Proposal Evaluation Plan for evaluating the proposals to describe the specific evaluation criteria (such as qualifications, methodology for completing the work, references and cost), and the methods that will be used to apply the criteria.

Research and evaluate suppliers based on price, quality, selection, service, support, availability, reliability, production, and distribution capabilities as well as the reputation and history

1. A purchasing certification is preferred.

2. A minimum of two years working in a general buying environment.

3. Considerable knowledge of purchasing methods and procedures and of the techniques of specification writing.

8.1.3. RACI Chart

In order to show the position roles to the project stakeholders, we created the RACI Chart to identify the responsibility (R), accountability (A), consultation (C) and informed (I) roles to execute the project.

Project manager

Project accountant

Senior engineer/analyst

Junior engineer/analyst

Technician Procurement specialist

Scientific Consultant

Design Nursery System

R I A C C

Build Nursery System

I &C I R A A A C

Deployment R I A A C C

R=Responsibility, only one R per task

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A=Accountability

C=Consultation

I =Informed

8.1.4. Staffing Management Plans and Resource Histogram

The purpose of the staffing plan below is to make certain the project has sufficient staffs with the right skills and experience to ensure a successful project completion

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8.1.4.1. Resource Histogram

The Resource Histogram presents the number of human resources assigned to the project over time. From the chart, the project manager can determine the number of the people needed each month, which he/she can base on to design the staffing plan to acquire the necessary staffs and develop the project team.

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8.1.4.2. Staffing Management Plan

After creating the Resource Histogram, the Project Manager is required to prepare the staffing management plan for recruitment; the staffing management plan (Appendix H – Staffing Management Plan) should include the overall staffing approach, the training plan and reassignment plan.

8.2. Staff Acquisition

This section sets forth the acquisition strategy, defines the efforts required to implement it to ensure coordination of the project manager and the human resource department to get the right people to fulfil the project’s needs.

8.2.1. Resource Assignment

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8.2.1.1. Staff Pooling Description

The staff pooling description table assists the project manager and Human Resource Department in assessing the characteristics of potential staffs and make decisions of hiring staffs.

Table 8.2.1.1. Staff Pooling Description Table

Employee Name

Employee ID

Job Title Period required

Department Date

Characteristics

Performance

Rating

(1=low, 5=high)

Previous Experience

Personal Interests

Personal Characteristics

Availability

Competencies

Proficiencies

Overall Assessment

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8.2.1.2. Recruitment Practices

During the recruiting, all the staffs must strictly abide by the policies, guidelines and procedures governing staff assignments. Additionally, all the updates to the staffing management plan must be recorded by the project manager. The recruitment gives priorities to current employees in the bio-fuel program.

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8.2.1.3. Project Staff Assigned

Based on the needs of the project, staff may be assigned full time, part time, or variably, which is presented in the resource requirement in project time management section.

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8.2.1.4. Project Team Directory

The template below is to be used by the project team when taking down details of relevant members and stakeholders.

Employee Name

Employee ID

Role Phone Mobile Fax Email Address

8.3. Team Development

The main goal of this team development plan is to help people work together more effectively to improve project performance and achieve the project goals.

8.3.1. Training

To ensure all the team members are qualified for the project, they are arranged to take specific training courses based on information from the Roles and Responsibilities Assignments table and the staff pooling description.

8.3.2. Team Building Activities

Project manager is recommended to organize team-building activities monthly; the options of team building activities, physical challenges or psychological preference indicators are determined by the performance of the team members and the requirements of the upcoming tasks.

8.3.3. Input to Performance Appraisals

The performance reports below are used to evaluate the performance of the team members, as documentation for updates to the human resources management plans.

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8.3.3.1. Employee Self-Evaluation Assessment

Self-evaluations help employees measure how they are performing in their job. This assessment form can provide guidance and consistency within our project, to help the Project Manager and Human Resources department to record, track, and report information for the employee evaluation process. This form is required to assess monthly.

Template 8.3.3.1. Employee self-evaluation assessment

Employee Information

Employee Name:

Employee ID:

Job Title:

Date:

Department:

Manager:

Review Period:

To

Goals

Describe the goals you had set out to accomplish for this time period:

ch goals did you accomplish? Which other objectives did you meet, beyond your stated goals?

Which achievements are you most proud of?

Which goals did you not accomplish and why not?

Risks and ExpectationsWhat kind of risks did you take during the time span of this evaluation?What are your expectations for the next evaluation time span?What can your manager do to help you achieve your future goals?What are your goals for the next evaluation? Please be clear and concise

CommentsAdditional Comments:

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8.3.3.2. Employee Performance Review

The template below is to assess employees’ performance by their superior (refer to the organizational chart) monthly.

Please, refer to Appendix I - Employee Performance Review.xlsx.

8.3.4. Performance Improvements

Project manager has the responsibility to set up the HR management mechanism to improve employees’ performance.

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8.3.4.1. Improvement in Individual Skills

a) Set up reward and recognition system.b) Discuss work and personal issues with employees via

e-mail, telephone, or other communication media (refer to communication management plan for details).

c) Provide training opportunities to employees who are in need. (Refer to training section.)

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8.3.4.2. Improvement in Team Behaviours

a) Keep an issue log to document, monitor, and track issues that needed to solve for the project team to work effectively.

b) Organize team-building activities to help employees to understand and value each other’s differences in order to work effectively as a team. (Refer to team building section).

8.4. Team Management

Team management is essential in Human Resource Management Plan. The Project Manager is required to do the followings to motivate and manage his/her team members in case changes are requested to the project.

a) Have formal or informal conversion with employees regularly; discuss any issue with them when they are in need.

b) Record and keep track on all the updates to human resources plans.

c) Inform any personnel changes to stakeholders in a timely manner

d) Maintain and update the Reward and Recognition System regularly.

e) Take corrective or preventive actions to deal with any unexpected event, such as employee leaves the project.

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9. Project Communication Management

In order to keep the project activities dynamic between team members and other stakeholders within the project itself, it is mandatory that all communications align perfectly and are up to date.

Communications management incorporates methods for collecting, gathering and disseminating communication, as well as information across the internal teams and stakeholders of the project.

This documentation will list methods of communication, as well as the technology that will help communication during various tasks where communication is needed.

9.1. Communications Planning

Before one is to follow the guidelines for distributing information discussed below, it is important to run skill checks on team members and also stakeholders.

This will be used to find the most optimized method of carrying out these communication processes i.e., to find out which software is most commonly used by individual members (this will decrease new learning curves, saves time and increases productivity since they are already familiar with the software).

In this project, there is a probability that members will have to work remotely from time to time. Therefore, the team must be flexible in terms of communicating. Although, the guidelines below conjure the recommended method of communication i.e., written or verbal, members are able to make themselves adapt to which of the two methods they prefer to use during a certain situation.

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Lastly, along the course of the project, it is expected for the Internet and phone to be the primary channel for conveying information. Fax and postage mails are not to be considered for daily and active communication but are to be used whenever necessary. Domestic or international shipping will be used whenever tangible products, prototypes or deliverables are to be sent.

9.2. Information Distribution

The English language is taken into account being the de facto language for all communication and documentation in this project, although, not being the de jure language of communication meaning stakeholders are still able to verbally communicate in other languages beside English.

The types of communication that are discussed in this documentation have been divided into either or both dynamic/verbal and/or passive/written communication. Dynamic/verbal communication is when communication is synchronous and happens in real time e.g., talking face to face from one human being to another. Passive/written communication describes communication that happens asynchronously meaning one party is able to reply the opposing party on a different time e.g., sending and replying emails through technological devices.

Relating to the previous point made on dynamic and passive communication, this documentation suggests which should be used during a certain task of communication.

One should note that dates on which new communication has commenced should be recorded inside the perspective documentation for future reference, not to mention evidence for legal issues if they were to arise.

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9.2.1. Introductions to New Stakeholders and Negotiation

Task Method Technology GoalIntroducing an existing stakeholder to a new stakeholder

Verbal/written communication

When introducing an existing member on the team to a new member or a new stakeholder, must notify the existing member in prior to the introduction.

It is considered inconvenient for one to meet a new colleague without warning beforehand.

Face to face Phone/

audio/video/conference calls

SMS Email Instant

Messenger

This allows the existing team member to be prepared mentally in order to convey the preferred first impression.

Commencing communication/Introduction with new individuals and stakeholders

Verbal/written communication

The initial project team must consider good etiquette at all times, particularly, the Project Manager.

Greetings should be conveyed politely and with adequate.

This is a very crucial task to be completed properly, especially when first impressions are to take place.

Face to face Phone/


SMS Email Instant

Messenger

The goal to achieve after new communication has started is to allow the mentioned parties to be comfortable with one another.

If this is achieved, in return, the parties will have a more relaxed and pleasant environment when communicating.

Commencing negotiation

Written communication

It is a significant issue when one needs to perform negotiation with another human being.

SMS Email Instant

Messenger

This allows parties to make their own initial statements, ideas and points

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Written communication is recommended when a negotiation is to commence. This allows both parties to be concise, exact and follow the concept of brevity when delivering their points.

If one prefers to commence a negotiation verbally with another party, one is allowed to as there are no strict restrictions to using this method. Although, a note should be taken to be synoptic but detailed.

concisely.

In return, this allows each party to at least predict a small portion of one another’s favoured decision.

Commencing negotiation with individuals from different cultures


It is an even more significant issue when one needs to perform negotiation with another human being coming from a different culture and background.

Before making an attempt at this task, it is wise to study and analyse how the particular culture communicates and performs negotiation organically. Thus, one is able to adapt to their environment and dive into natural communication methods.

Also ensure to use more

SMS Email Instant

Messenger

Beyond the previous task mentioning commencing negotiation in general, written communication is also preferred when communicating with individuals of different cultures and native languages.

Written language is better understood by both native and non-native speakers than

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common words that most English speakers are familiar with.

Be careful when using certain expressions that are known more in distinct areas or region not globally.

verbal language due to dialect and accent differences.

Completing negotiation

Verbal communication

When both parties are close to according on the same level of agreement, it is best to execute the completion of negotiation verbally.

This conveys a more reliable personality to one another proving that both parties are serious and dedicated to the agreement.

Face to face Phone/


In order for the considered parties to be on the same level of a specific agreement.

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9.2.2. Meetings, Presentation and Reports

Task Method Technology GoalInception of a meeting

When a decision needs to be made or a major brainstorming needs to take place, one should create the inception of a meeting and arrange time, date, venue and topic details.

The idea of holding a meeting may take place during verbal communication or written communication.

Face to face Phone/


SMS Email Instant

Messenger

This task is simply deciding a meeting needs to be held not planning the contents of the meeting yet.

Planning of a meeting


Meeting schedules must be clearly set up by the leader of the meeting.

It is poor practice to arrange and invite attendees to a meeting that has no agenda that the attendees can refer to.

Microsoft Office Word

To properly outline and clearly point out the ideas and itinerary of the meeting.

[Email] Invitation of a meeting


After the inception of a meeting has been arranged, an invitation has to be sent out by email to everyone who is obligated or should attend.

A formal invitation of the meeting should be sent to attendees in written form via email.

Informal invitations or reminders are able to

Face to face Phone/


SMS Email Instant

Messenger

To announce that a meeting will be held a certain time, date and venue discussing specific topics.

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be conveyed by verbal communication.

For the sake of consistency and readability of email messages, the subject of the meeting email invitation should be formatted as:

[MEETING] Day DDD MMM YYYY at Venue about Topic

For example:

[MEETING] Wed 3 Sep 2010 at Building 21C about Market Research

Brainstorming meeting


Discussions about generating new schemes are encouraged to take place face to face as it produces a stronger dynamic between the members and produces more understandable conversations.

Face to face To have more understandable conversations.

Major decision meeting


When a meeting demands more than 2 people attending, it is best to hold a face to face meeting.

Face to face

Team meeting

Assigning roles


Team meetings can be used for performance reviews (refer to Performance Reports section below).

As well

Face to face Phone/


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Performance Reports

Refer to Performance Reports section below.


To keep project on track.

Presentations


When teams have to demonstrate new concepts or prototypes, presentation slides are encouraged to complement the live exhibition.

PowerPoint slides

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9.2.3. File Management

Task Method Technology GoalWord Document Any sort of

documentation included in project assets such as the project charter, project scope management plan, work breakdown structure, project management plan, etc.

.DOC, simply put, is the most common word processor format for documents in the market and field.

Thus, it is recommended to be used as the primary document format.

It is expected that all stakeholders and team members have an application that is able to open a .DOC format document installed on their computer.

In addition, it is expected all stakeholders and team members are able to manipulate the software well.


Google Docs Saved

in .DOC NOT .DOCX format for prior compatibility

To ensure file compatibility across stakeholders and team members.

Gantt Chart A Microsoft Project Gantt Chart It is a well-established standard for Gantt Charts.

Microsoft Project

To ensure file compatibility across stakeholders

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Since we also use Microsoft Office for word documents, it is wise to keep consistency between software and applications we use for file management. Thus, we also use a Microsoft product for Gantt Charts.

In addition, it is expected all stakeholders and team members are able to manipulate the software well.

and team members.

Sharing files In order to share files between stakeholders and team members, there must be software that is able to handle these operations.

Dropbox is a great application that allows users to have shared files and folders in their operating systems between members.

Google Docs is also a great online application that allows users to edit and view documents online through web browsers.

Attaching files in email is also a method that could be used to share files.

Dropbox Google Docs Email Custom

software

To ensure stakeholders and team members maintain great communication and collaboration between one another.

Each member in the project is expected to notify other members in the project if a change in files was made.

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Using these three applications, nevertheless, may raise security issues since they are third party products that were not developed by the internal team.

If security is indeed a grave issue, it is recommended to use custom software that was made specifically for this project. It may decrease security concerns since the custom software is more likely to be trusted by the company.

File versioning It is significant to practice a good method of file versioning.

In other words, it is important to keep track of every change that is made to a document or file.

It is a poor convention to plainly overwrite files with new changes since no reference to past versions is able to take place.

Saving changes to an existing document as a succeeding version of the document is an example to perform this

File naming conventions

To ensure members are able to refer to past versions of documents easily.

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task.File backup Due to the natural

tendency that technology has for failing, it is recommended that all files have backups in other storage systems and not merely in one storage system.

Secondary storage system

To ensure there are duplicates of files in case of primary system failures.

Machinery Prototypes or other physical machinery are expected to be kept in good condition inside proper containers stored in a secure location with no access for unauthorized members.

Secure container (warehouse)

To ensure product quality.

Postage Postage mails will be archived neatly in the ascending order of date, then, arranged by alphabetical order.

Secure container (safes)

To ensure ease of postage discovery.

Signed/Confidential Documents

These types of documents are expected to be kept inside a durable clear document holder inside a safe.

Secure container (safes)

To ensure authenticity of documents and enhance security of documents.

9.3. Performance Reporting

These tasks in the project relate strongly to the tasks that need to be fulfilled in Quality Management.

In order for the project to stay on track, this section will be give guidelines on how members should submit in performance reports to the upper level of management staff.

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As according to the PMBOK2000, the performance reports will constitute:

Status reports: the current state of the task. Progress reports: the percentage of completion of the

task. Forecast reports: the prediction of future status and

progress of the task.

The techniques that will be used to deliver these reports are:

Performance reviews meetings: where meetings are held to be able to speak to team members individually. In these meetings, the results of the 3 subsequent techniques are revealed.

Variance analysis: variance between actual results and planned results.

Trend analysis: examining if project performance is decreasing or increasing.

Earned value analysis: this technique involves calculating the CPI, which is used to forecast project costs at completion.

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The results of performance reporting will be:

Performance reports: which includes all the sections mentioned above.

Change requests: which includes any changes that need to be executed for the project in order to swerve the project back on track if there were any unplanned problems.

For further, info, please refer to section 9.2.2. Meetings, Presentation and Reports.

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9.3.1. Communications Hierarchy

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Project ManagerProject Manager

Lead EngineerLead Engineer

Lead TechnicianLead Technician

Lead AnalystLead Analyst

Engineer 1Engineer 1



Technician 1Technician 1



Analyst 1Analyst 1

Analyst 2Analyst 2

Analyst 3Analyst 3

Change Control Board

Change Control Board

Project ClientProject Client

Project SponsorProject Sponsor

Project DirectorProject Director


9.3.1.1. Top Down Communication

The project sponsor, project director and project client are to communicate to the rest of the team through the project manager.

It is the project manager who filters and refines all communication from the most top level of stakeholders for the lower levels of staff.

When communication is brought from the top of the hierarchy to the bottom, it is important to clearly comprehend the direction and objectives given.

If a misunderstanding was to take place for example, the project manager misunderstood what the project sponsor meant by idea A, mistakes may occur.

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9.3.1.2. Bottom Up Communication

The primary type of communication being conveyed from the bottom up is performance reports, as discussed earlier.

It is crucial for the lower level staff of the project to remain honest and ethical about the statuses of tasks and progress of tasks.

Although, the lead engineer, lead technician, lead analysts and project manager have as much responsibility as the lower staff of the project, ensuring that all performance reports are truthful. The leads cannot simply trust all performance reports without inspection.

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9.3.1.3. Middle Out Communication

Between Leads

Lead engineer, lead technician and lead analysts will work closely collaborating and comparing ideas from the different teams they lead.

It is recommended that only leads work together since they are the ones who have the synopsis of all the tasks, status and progress of their teams. If non-leads were to work together, there may be a slight chance that management will be coarse, however, that is not to say it is prohibited.

Between Project Manager and Change Control Board

The other middle out communication that will take place is between the project manager and the change control board.

After change requests have been submitted by leads to the project manager, the latter must analyse these change requests and go through the first round of change request approval before submitting them to the change control board for the second (final) round of change request approval.

It is recommended that whether if the project manager approves or rejects change requests, the PM must record in written form the rationales why he or she has approved or rejected so. This first round of change request approval by the project manager serves as assistance to the change control board.

Another reason why the PM must record rationales for his or her decision on a change request is to maintain the project on track and also retain it inside the scope.

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9.4. Administrative Closure

Successful execution of all the project management functions such as planning, organising, staffing, implementing, coordinating, leading, controlling, monitoring, and evaluating by the project manager significantly depends on effective and efficient communication.

The project manager is expected to spend almost 95% of the project management time communicating with the team members, client, top management, and other critical stakeholders to ensure consistent performance and quality achievement.

The project is expected to meet the approved objectives of performance specifications of quality, on budget, and on schedule and satisfy the business need of the client and sponsor.

After completion of the project with meeting these objectives, the next critical part is how to effectively communicate this product to the client and sponsor (Project Management Institute, 2000).

The project manager should ensure the following criteria are done before, during, and after the presentation of the strategic plan to the client, top management, and sponsor.

1. The project manager must conduct project closure at every milestone to ensure that the project meets the objectives of approved performance specifications, quality, budget, and schedule and proper records are kept for monitoring and control,

2. Before final presentation, a final review meeting must be conducted to ensure the project outcome (strategic plan) reflects the approved quality and performance specifications,

3. Arrange and coordinate project launch/presentation meeting according to project schedule,

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4. To convince the project client, sponsor, and top management to formally accept the final product (strategic plan), the project manager’s presentation should focus on:

a) Communicating the achievement on the approved project scope specifications,

b) The achieved objectives of performance (quality, budget, and schedule (time), and

c) The business benefits to the client, sponsor, and top management.

5. Allow time for project client, sponsor, and top management to respond and officially accept the project,

6. After the acceptance, officially close the presentation by confirming that the project has met the business needs of the client, sponsor, and top management, and

7. Finally arrange for archive of all-important documentation – including milestone closure reports, final project strategic plan, and correspondence, project review and audit meeting minutes, change management, and risk management reports.

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9.5. Other techniques for information and communications management

For any other information or events not discussed in the tables above, it is required for one to raise the issue if it is concerned.

Additionally, if one were to suggest a software or application for the team to use, it is possible to do so in order for the team to accept the suggestion or not.

Team members are allowed and encouraged to keep personal project records for their individual reference and memory that may not necessarily be taken into account as official and formal reports.

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10. Project Risk Management

Risk is an expression of the potential harm or loss associated with an activity executed in an uncertain environment (Bahill and Smith, 2009). The objectives of Project Risk Management (PRM) are to increase the probability impact of positive events, and decrease the probability and impact of events adverse to the project (PMI, 2004). PRM is an invaluable aspect of project management. It has always been present in one form or another, perhaps, for example in the guise of informal discussion, carefully drafted terms of contract mental calculation or, heaven forbid, gut feel ( Arrow, 2008).

As a best practice guide PMBOK recommends the Project Risk Management processes include the following:

Risk Management Planning

Risk Identification

Qualitative Risk Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Monitoring and Control

Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective, such as time, cost, scope, or quality (PMI, 2004).

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10.1. Risk Management Planning

Risk management is a proactive approach rather than reactive (Gray and Larson, 2006). It is also advocated that, risk management is a preventive process designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimised (Gray and Larson, 2006). Therefore, PMBOK recommends that risk management planning process be completed early during project planning, since it is crucial to successfully performing the other processes described above. Risk management planning will ensure that the level, type, and visibility of risk management are commensurate with both the risk and importance of this project to the organisation, to provide sufficient resources and time for risk management activities, and to establish an agreed-upon basis for evaluating risks.

10.1.1. Organisational Risk Management Policies

Experts in the area of risk management argue the importance of risk management in a holistic approach as any project risk should not be considered in isolation and must be considered within inside an organisation as a whole (Sanchez et at, 2009). Therefore, as this project is part of the ANU BioSolar Program, it is recommended that the risk management plan of this project is consistent with ANU’s risk management approach.

The following is an excerpt that reflects ANU’s position on risk management:

“The University endorses Australian & NZ Risk Management Standard 4360:2004 and its application based on the following essential elements: Establish the context; Identify the risks; Analyse the risks (including evaluating associated controls, determine consequence and likelihood); Evaluate the risks; Treat the risks; Communicate and consult; and Monitor & Review.”

Source: The Australian National University (2009), Policy: Risk Management, http://policies.anu.edu.au/policies/risk_management/policy accessed 15th September 2010

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http://policies.anu.edu.au/policies/risk_management/policy


The project team must create Risk Management Committee for this project and will need to select appropriate employees as members of the Risk Management Committee.

10.1.2. Risk Planning Meetings and Analysis

Risk Management Committee for this project should hold planning meetings to develop the risk management plan for the project. The Project Manager and the Project Director must be included since direct assessment of risk related to the project is their primary responsibility. Basic plans for conducting the risk management activities are defined in these meetings. Risk cost elements and schedule activities should be developed for inclusion in the project budget and schedule, respectively. During these planning meeting risk responsibilities will need to be assigned.

The Risk Management Committee must gather necessary details regarding the extent to which stakeholders will accept risk. This will be done by interviewing all the key stakeholders who are involved in the Risk Management Plan and indicating which risk will need to be assessed and monitored as the project continues.

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10.1.3. Risk Management Plan

This risk management plan (RMP) describes how risk management will be structured and performed for the Nursery System project. The information contained within this Project Plan may change as the project progresses where the Project Team encountered an unforeseen event. As such some change to the project plan may be necessary and required. However, it is important to note that any such changes to the Project Plan may impact at least one of three critical success factors: Available Time, Available Resources (Financial, Personnel), or Project Quality. The decision to make modifications to the Project Plan, including project scope and resources, should be coordinated by the Project Manager.

Identified risks must be monitored continuously to ensure that appropriate countermeasures can be employed to minimise undesirable impact on the organisation or the project. The PM and Project Officers must continuously monitor the environment for new risks, and develop strategies to combat them. The key elements of this plan are discussed below.

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10.1.4. Methodology

The methodology for risk management plan is detailed in the table below.

Table 10.1.4. Risk Management Methodology

Step Processes required1 As soon as a change which impacts project scope, schedule,

staffing or spending is identified, the Project Manager will document the issue.

2 The Project Manager will review the change and determine the associated impact to the project and will forward the issue, along with a recommendation, to the Risk Management Committee for review and decision.

3 Upon receipt, the Risk Management Committee should reach a consensus opinion on whether to approve, reject or modify the request based upon the information contained within the project website, the Project Manager’s recommendation and their judgment. Should the Risk Management Committee be unable to reach consensus on the approval or denial of a change, the issue will be forwarded to the Project Sponsor, with a written summation of the issue, for ultimate resolution.

4 If required under the decision matrix or due to a lack of consensus, the Project Sponsor shall review the issue(s) and render a final decision on the approval or denial of a change.

5 Following an approval or denial (by the Risk Management Committee / Senior PM / Stakeholders), the Project Manager will notify the original requestor of the action taken. There is no appeal process.

10.1.5. Roles and Responsibilities

In order to carry out risk management accountabilities it is necessary to clarify roles and responsibilities of various stakeholders of this project and their decision-making authority. Table 10.1.5. below outlines this relationship.

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Table 10.1.5. Risk Management Roles and Responsibilities

Role Responsibility Decision-making Authority

Project Team Member Understand the user needs and business processes

Communicate project goals, status and progress throughout the project to personnel in their area

Review and approve project deliverables

Coordinates participation of work groups, individuals and stakeholders

Provide knowledge and recommendations

Helps identify and remove project barriers

Assure quality of project plan is up to the standards

Identify risks and issues and help in resolutions

Low

Project Manager Manages project in accordance to the project plan

Provide overall project direction Direct/lead team members toward

project objectives Handle problem resolution Manages the project budget and

schedule

Medium

Risk Management Committee

Assess any risk-type activities Response to individual risks Approves major funding and

resource allocation strategies, and significant changes to funding/resource allocation

Resolves conflicts and issues Provides recommendations to the

Project Manager

Medium

Senior Management/ Project Director

Assess/evaluate/approve the overall project

High

Stakeholders Provide project oversight and guidance

Review/approve project elements

Medium

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10.1.6. Risk Categories

A risk can source from various sources. In general, a project risk can be categorised as follows (PMI, 2004):

Technical, Risks – This involves all risks associated with technical activities such as IT systems; quality risks such as drafting; and performance related which in this project relates to quality.

Project Management Risks – This includes all risks associated with managing the project. This includes allocation of resources to the project and competencies of the allocated staff etc.

Organisational risks – This includes all risks associated with ongoing organisational support such as resourcing and continued maintenance of the project as a priority.

External risks – This includes all risks relating to things out of our control, such as legal and regulatory changes such as an OH&S regulation regarding how to transport various chemical required for the Nursery System.

These risk categories should be part of a Risk Breakdown Structure (RBS). It is also recommended that the Risk Management Committee apply a RBS approach in risk identification exercise of the many sources from which project risk may arise.

10.1.7. Project Risks

A probability/impact matrix or chat list the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other (Schwalbe, 2007). The probability and consequences ratings in the Table 10.1.6.a. below are based on a qualitative analysis and the overall rating is based on the matrix as detailed below in Table 10.1.6.b:

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Table 10.1.6.a. Project Risk – Overall Rating Matrix

Probability

High M H H

Medium M M H

Low L M M

Low Medium High

Consequence

Source:　Adapted　from　AS/NZS ISO 31000:2009, Risk management - Principles and guidelines.

Table 10.1.6.b. Probability of Risk Occurrence Matrix

# Risk Probability Consequence

Rating Mitigation Strategy

1 IT systems failing for an extended period of time

Medium High High

Ensure that there is secure IT system back up completed every night and formal emergency Disaster Recovery Plan in place Seek notification from power company of any scheduled or unscheduled power outages. Design power circuit to have “Auto-Switch” back-up from a power generator.

2 Staff required for the project will not be released to complete work.

Medium High High

Specify in the charter and the HRM section of this plan that employees required from other business areas must officially be assigned to the project manager for the duration or their work tasks plus the review time.

3 Resourcing is removed from this project to a higher priority project

Medium High High

Make sure that the charter includes full transfer of control of the budget for this project to the project manager and accountant. Ensure that there is a commitment in writing, via the charter, to the full funding of this project.

4 Lack of interest or support from senior management

Medium Medium Medium Inform the sponsor of this issue and progress on it at each meeting. If a sense of this is happening, then inform the sponsor and have them

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reinvigorate the excitement towards the project at their level, whilst managing the project.

5 The quality of the staff is not high enough

Medium Medium Medium

Train the staff to be able to do what is required or reject some of the names in preference of more suitably experienced people.

6 OH&S requirements to implement and deliver the project

Low High Medium

Apply and adhere to the ANU’s OH&S policy during and post-implementation of this project.

7 The time allocation is insufficient

Medium High High

Project Manager should ensure every key stakeholder has a copy of the schedule and change management processes are strictly followed.

8 Insufficient funds allocation by corporate

Medium High High

Project Manager should ensure that there is formal written documentation to demonstrate the full control of the budget is with the project manager and not the functional business areas or corporate.

9 Stagnant Water

Medium High High

To ensure high quality of algae is produced on a continuous basis a routine maintenance schedule should be developed and adhered to on a weekly basis. This maintenance report is to be signed off by the project manager or the Control Centre Manager.

10 Poor Water Quality Supplied

Medium High High

It is important to get a scientific report done to ensure the local water supply is of suitable quality for Algae Nursery System. If not, then additional cost and modification to the Nursery System may be required to treat the water quality before it is introduced into the nursery system.

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11 Location and Access to the Nursery System

Low Medium Medium

It is important to build and design the nursery system as per the scientific specification on a suitable location as advised by the ANU BioSolar Program.

12 Nutrient Growth

Medium High High

It is important to build the nursery system with corrosion-free components and as per the scientific specification as advised by the ANU BioSolar Program.

13 Poor Record Keeping System

Low Medium Medium

Project Manager must ensure that each member of the project team understand the importance of proper record keeping and maintains all the records as per the organisation’s record keeping policy.

14 Scheduling, Monitoring and Reporting

Medium High High

PM must ensure that all the scheduled project tasks remain on track by routine review and monitoring progress and take necessary corrective actions if schedule is on risk. PM must also produce weekly Project Progress Report to highlight all (if any) of the critical issues to the relevant stakeholders and the mitigation plan to resolve those critical issues.

15 Equipment Breakdown & Maintenance

Medium High High

In addition to the recommendation given for Risk # 9, the organisation must maintain some inventory of “Critical Spares” in a nearby location to ensure any emergency maintenance can be done in very short notice.

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10.2. Risk Identification

Risk Identification determines which risks might affect the project and documents their characteristics (PMI, 2004). It is important to recognise that risk identification is an iterative process because a new risk may become known as the project progresses through the project life cycle. The following template provides a simple tool to record a risk when it is first identified.

Table 10.2. Risk Identification Template

Project Name: Project Reference Number:Date Risk Identified

Risk Description

Risk Category

Probability Rating (%)

Impact Rating ("L" = Low, "M" = Medium, "H" = High)

Responsible Person to Mitigate

10.2.1. Tools and Techniques

There are number of practical ways a project risk can be identified. They are as follows:

Documentation Reviews – A structured review should be performed of project documentation, including plans, assumptions, prior project files and other information relevant for this project.

Information Gathering Techniques – This activity generally involves brainstorming among project team members, interviewing appropriate stakeholders, identifying the root cause of a risk, undertaking a SWOT (Strength, Weakness, Opportunities and Threats) analysis and PEST (Political, Economic, Societal, and Technological) of a given risk to better understand the breadth of that risk exposure to the project and organisation (PMI, 2004).

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Assumption Analysis – Generally, every project is conceived and developed based on a set of scenarios or assumptions about many facets of the project. Assumption analysis can be used as a tool to explore the validity of those assumptions as they apply to this project during project execution. It may assist in identifying risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.

There are other techniques that may be useful in identifying risk. They include: Checklist Analysis and diagramming Techniques (PMI, 2004)

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10.2.2. Risk Register

A formal risk register is the key output of the risk identification process. This register should be used as a key reference document as part of Project Risk Management process for this project. The project team members can utilise a simple temple as shown in Table 10.2.2.

Table 10.2.2. Risk Register Template

Date Risk Identified

Date Risk Entered in Risk Register

Risk Registry Reference Number

Project Reference Code

Risk Description

Risk Category

Probability Rating (%)

Impact Rating ("L" = Low, "M" = Medium, "H" = High)

Responsible Person

10.3. Qualitative Risk Analysis

Qualitative Risk Analysis includes methods for prioritising the identified risks for further action, such as Quantitative Risk Analysis and Risk Response Planning (PMI, 2004). Following PMBOK’s recommendations, it will be beneficial for this project that a qualitative risk analysis be performed that can improve this project’s performance effectively by focusing on high-priority risks.

Using the probability and impact matrix mentioned above the Risk Management Team should assess the priority of the identified risks, the corresponding impact on this project objective if the risks do occur, as well as other factors such as the time frame and risk tolerance of the project constraints of cost, schedule, scope and quality

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Top Ten Risk Item Tracking Report is a qualitative tool, in addition to identifying risk, will help maintain an awareness of risks throughout the life of this project. It is recommended that a periodic (daily or weekly) review of the project’s most significant risk items takes place with the senior management of this project, including key stakeholders. Table 10.3 below is a simple example that the PM can use in this project in undertaking some qualitative analysis.

Table 10.3 Top 10 Risk Tracking Reporting Template

MONTHLY RISK RANKING

Risk Event

Rank This Month

Rank Last Month

Number of Months in Top Ten Risk Mitigation Progress

Source: Schwalbe. K. (2007)

10.4. Quantitative Risk Analysis

Quantitative risk analysis can be useful to perform for this project. However, research suggests the nature of a project, availability of time and money affect the type of risk analysis technique used (Schwalbe, 2007). In particular, Large, complex projects involving leading-edge technologies often require extensive quantitative risk analysis. It is argued that this project should be considered as a relative small-medium size and spending significant amount of resources in analysing risk by utilising quantitative techniques will not be economically beneficial. Therefore, qualitative risk would be appropriate.

10.5. Risk Monitoring and Controlling

Monitoring and controlling risk involves executing the risk management process outlined in this risk management plan to respond to any risk event. Every team member has an important role to play in monitoring and controlling risk for this project.

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10.5.1. Monitoring

It is recommended that the Risk Management Committee should take the following items into account in monitoring various risks (financial and non-financial) associated with this project through out the duration of this project.

Risk Management Plan

Risk Register

Approved Change Requests

Work Performance Information

Performance Report

10.5.2. Controlling

It is recommended that the Risk Management Committee should take the following items into account and utilise them in controlling various risks (financial and non-financial) associated with this project through out the duration of this project.

Risk Reassessment

Risk Audit

Variance and Trend Analysis

Technical Performance Measurement

Reserve Analysis

10.5.3. Reporting

It is recommended that the Risk Management Committee should take the following items into account and utilise them in reporting and controlling various risks (financial and non-financial) associated with this project to relevant stakeholders through out the duration of this project. Risk Management Committee must follow the Project Communication Plan in communicating with the relevant stakeholders.

Risk Register (Updates)

Requested Changes

Recommended Corrective Actions

Recommended Preventive Actions

Organisation Process Assets (Updates)

Project Management Plan (Updates)

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10.6. Risk Response Planning

Once the Risk Management Committee identified and quantified risks, it must develop an appropriate response to them. According to PMBOK, Risk Response Planning is an integral part of risk management planning in a project management environment. Generally, there are two major broad types of risks that the PM will need to be prepared to deal with when they arise:

Negative Risks

Positive Risks

The PM and the Risk Management Committee must consider a range of strategies to deal with these risks. These are discussed below.

10.6.1. Negative Risks

Developing a response to potential negative risks in this project will require the PM and the Risk Management Committee in developing options and defining strategies for reducing negative risks. The following are some of the commonly used strategies in dealing with negative risk that the PM and the Risk Management Committee should consider.

Risk avoidance is an option where a specific risk or risk event is eliminated. Of course, it is worth remembering that some risk simply cannot be eliminated (such as those that are inherent in nature) while others can be.

Risk acceptance is an option where the PM and the stakeholders will accept the consequences should a risk occur.

Risk transference is an option where the consequence and responsibility of a negative risk is shifted to a third party to manage.

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Risk mitigation is an option where the impact of a risk event is reduced by reducing the probability its occurrence. Suggestions for reducing some of the possible risks were provided in Table 10.1.7.b. Probability of Risk Occurrence Matrix above.

10.6.2. Positive Risks

Developing a response to negative risks will require the PM and the Risk Management Committee in developing options and defining strategies for enhancing positive risks. The following are some of the commonly used strategies in dealing with positive risk that the PM and the Risk Management Committee should consider.

Risk exploitation is a strategy that allows the PM and Risk Management Committee to do whatever is necessary to ensure that the positive risk materialises.

Risk sharing is an approach where the ownership and consequence of risk is shared by another party.

Risk enhancement is an option where the PM and the Risk Management Committee can change the size of the opportunity by identifying and maximising key driver of the positive risk.

Risk acceptance is an option that can also be applied in managing positive risk. This occurs when the PM or the Risk Management Committee cannot or chooses no to take any actions toward the positive risk.

Given the discussion above, it is strongly recommended the PM and the Risk Management Committee ensure that there is legally binding contractual agreement in place between the project team and their customer, in this case ANU BioSolar program, that clearly stipulates how both party agrees to deal with risks associated in this project.

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11. Project Procurement Management

The Procurement Management sets forth guidelines and processes that are to be followed to ensure measurable and satisfactory performance against contractual obligations. This section describes the function and activities need to be performed in order to complete the procurement process efficiently and effectively.

Additionally, it defines and documents the selection, procurement and management of suppliers and vendor efforts, ensuring quality performance and on time delivery at the best-cost value to the organisation.

11.1. Procurement Planning

The purpose of this plan is to describe the processes, governing procedures, roles and responsibilities of individuals and tactical steps to be sued in maintaining contracts, purchase requests, purchase orders etc. The plan includes steps to be taken in acquiring the raw material for nursery system from vendors that are not part of ANU Bio-Solar program.

According to the tasks with the resources accountable for them, defined in WBS, the two Junior Engineers will research for the material that needs to be utilized for nursery system. The analyzed data will be given to a procurement specialist who will analyze the market conditions and will evaluate different vendors based on the quotes received. The project manager will decide the Terms & Condition for working with the suppliers, which will be mentioned in the contract that will also contain the cost and quality standards of the raw materials and the machinery required.

The contract documents will be held by the project manager and can be reviewed from time to time according to the situation. The Statement of Work will be provided by both parties detailing how they are going to work and what the parallel arrangements will be if problems arise. This will be open to change, but must follow the stated change management procedures outlined in Integrated Change Control.

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11.2. Solicitation Planning

It involves the preparing of the documents needed to support solicitation or request for proposal. These are controlled documents, maintained by the organisation. They will be available through contacting the procurement specialist only, which all of the supplier’s administrators and buyers will have access to.

The procurement specialist will lead the effort to develop the solicitation document that states the requirements for acquiring of raw material for nursery system. The solicitation document consists of a Statement of Work and/or Request for Proposal. It will clearly describe the tasks and deliverables required, and the contract terms that will apply.

The engineers/analysts who will work on the nursery system will be consulted when developing the solicitation requirements and required deliverables to ensure the solicitation document accurately reflects their business needs (Systems Integration Division 2004).

The solicitation document will include the requirements to be fulfilled for nursery system. Either by referencing a separate requirements document (e.g., a Requirements Specification Document) or by explicitly including them in the solicitation document. It will also include or reference the evaluation criteria that will be used to evaluate and accept the requested raw material (Systems Integration Division 2004).

The procurement specialist will develop a Proposal Evaluation Plan for evaluating the proposals. It will describe the specific evaluation criteria (such as qualifications, methodology for completing the work, references and cost), and the methods that will be used to apply the criteria.

The criteria must be documented and approved by the Procurement specialist and project manager prior to the release of the solicitation document.

The procurement manager can/may recruit additional team members or other stakeholders to assist with the proposal evaluations based on the stakeholders’ expertise in pertinent subject areas and their past experience with solicitations.

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The Procurement Specialist will train the proposal evaluation team members on the purpose of the solicitation, the requirements, evaluation criteria and evaluation methods for the solicitation prior to reviewing any proposals.

11.3. Solicitation

The procurement manager will conduct the solicitation in accordance with the process requirements of the chosen contract type and according policies and practices. The Procurement Specialist will provide a mechanism for bidders to ask questions and to receive clarification and responses to the requirements of the solicitation and the solicitation process (Systems Integration Division 2004).

The Procurement Specialist with the help of Project Manager will evaluate the received proposals. They will evaluate the proposals in accordance with the Proposal Evaluation Plan and documented evaluation criteria, and will select the most qualified bidder based on the evaluation criteria (Systems Integration Division 2004).

The bidders’ cost and schedule estimates will be reviewed for comprehensiveness and reasonableness. The winning will be selected based on the proposal meeting the solicitation requirements and providing the best value based on scoring from the evaluation process (Systems Integration Division 2004).

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11.4. Source Selection

The procurement specialist will use experience and judgment in determining the number of bids and the most advantageous combination of price, quality, delivery, service and dependability when making purchases for the Company. It is organisation policy to procure material and service requirements competitively to the greatest extent possible.

Therefore, the procurement specialist applies his skill and experience to conduct negotiations and obtain competitive bids whenever it is in the best interest of the company and its customers (Systems Integration Division 2004).

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11.5. Contract Administration

Once a supplier has been selected, and at the conclusion of negotiations, the selection must be approved by Project Manager. Once those approvals are obtained, the contract is awarded to the supplier.

The contract will be specifically tailored for inclusion of all requirement elements, Statement of Work and Specifications. (Systems Integration Division 2004)

All data is shown on the contract including but not limited to part number, quantity, schedule, cost, terms and conditions, quality codes, etc. Detailed information, special instructions, and other requirements will be also included in the contract. The contract documentation will be maintained in a uniform file format as mandated by the PM and is maintained in the contract administrator’s office file.

Suppliers will be monitored on cost and schedule performance to their original commitment. Monitoring consists of routine telephone calls, e-mail, formal monthly Technical Exchange Meetings (TEM), which cover contractor Cost and Schedule Performance, and allows the parties to discuss any other issues or concerns, such as staffing issues, contractual issues, etc (Systems Integration Division 2004).

Procurement specialist will represent ANU Bio-Solar team in the meetings. Supplier progress on each item procured includes, but is not limited to, a review of adherence to quality requirements, completion percentage based on original schedule commitment, critical materials deliveries, tests, key progress demonstrations, risk mitigation points, and cost incurred to date. Design Reviews and Technical Exchange Meeting minutes are the responsibility of the Procurement specialist and Project Manager.

The performance of the four (4) Cost plus Award Fee contractors will be formally evaluated every 2 weeks during the procurement period in the project. Formal criteria will be issued prior to the start of the evaluation period, which outline specific criteria that the contractor must adhere to (Systems Integration Division 2004).

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11.6. Contract Closeout

Once the contract is complete, the suppliers will send a written letter to the organisation that the contract is complete. And if the organisation wants to renew it the Project Manager will have the power to renew it.

The PM will have the power to terminate the contract in between if the suppliers are not fulfilling the evaluation process. And another supplier will be given contact. But before that he will has to make sure the contract the termination is feasible or not at that particular stage. Procurement specialist shall guide the project manager in this regard.

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12. Conclusion

The sole goal of this project was to offer the existing algae nursery a new breath for technology and a more swift movement in the daily operations for the business and practice.

Through the methods, techniques and tools documented in the chapters of this project management plan, we strive for smooth direction along the course of the project. By doing so, we hope the points inside the success criteria will be able to be achieved.

This plan is to also establish a secure ground for all teams including its members cooperating in the project in order for future progress to be as fluent, productive and effective as possible.

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13. Appendix A - Project Gantt Chart

File name Appendix A – Project Gantt Chart.mpp

Contents This Microsoft Project Gantt Chart contains the deliverables, their due dates, sub-tasks and the resources assigned to be in charge of them.

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14. Appendix B - Table 6.3. Project Cost Baseline

File name Appendix B - Table 6.3. Project Cost Baseline.doc

Contents This is a Microsoft Office Word template to compliment the section 6.3. Cost Budgeting.

It is a template for employees, specifically, the finance department to store the budget allocated in each month which, for example, can include the labour cost, the cost of hardware and materials that are expected to incur in that month.

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15. Appendix C - Monthly Project Financial Performance Report Template

File name Appendix C - Monthly Project Financial Performance Report Template.doc

Contents This is a template to compliment the section 6.4. Cost Monitoring, Controlling and Reporting.

It is a template for employees, specifically, the finance department to record all monetary transactions related to the project within a given month.

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16. Appendix D - Year to Date Project Financial Performance Report

File name Appendix D - Year to Date Project Financial Performance Report.doc


It is a template for employees, specifically, the finance department to record all monetary transactions related to the project within a given year.

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17. Appendix E - Labour Cost Analysis Report

File name Appendix E - Labour Cost Analysis Report.doc


It is a template for employees, specifically, the finance department to record all labour cost transactions related to the project within a given week.

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18. Appendix F – WBS

File name Appendix F – Project WBS.doc

Contents This is the WBS of the project. It contains a list of all the deliverables in the Gantt Chart in a Microsoft Office Word .DOC format that can be used to view all the work packages without the timeline format.

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19. Appendix G – WBS Dictionary

This WBS dictionary helps explain the nature of certain deliverables and describe the function of those deliverables inside Appendix F – Project WBS.doc.

2. Initiating

WBS ID: 2WBS Item Name: Initiating

Description: The initiating phase of the project officially begins the project. It includes identifying key stakeholders, holding a kick-off meeting, and reviewing the scope baseline. The initiating phase does not include the development of the business case, determination of scope, time and cost constraints, identification of the project sponsor, and selection of the project manager, as all these variables fall under the pre-initiation phase and are determined when the project is selected.

9. Gather Requirements

WBS ID: 9WBS Item Name: Gather Requirements

Description: Gathering requirements involves collecting information about the specifications of the nursery system. This will include gathering information about functional requirements, or the specifications the system will need in order to work, and gathering information about the technical requirements, or the specifications of the control centre which will monitor the nursery system. A key part of this work package is verifying requirements, to ensure the system that is built during the project meets the needs of the stakeholders.

14. Review Current Nursery Systems

WBS ID: 14WBS Item Name: Review Current Nursery Systems

Description: This work package involves researching and analysing current information about nursery systems. This can

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include research on nursery systems as a complete design, or research on the different parts of the nursery system, such as sensors to monitor algae, system logic, the information technology communications environment of the nursery system's control centre, information about the optimum geographic location for the nursery system, and more as identified by the research. Information from this stage will be used to inform the design of the nursery system.

21. Identify Target Areas for Improvement

WBS ID: 21WBS Item Name: Identify Target Areas for Improvement

Description: This work package involves drawing on research completed in WBS ID 14 to enhance the design of the nursery system. Using data already gathered, analysts should identify areas in common nursery system design for improvement, and research optimum methods for enhancing either the entire nursery system design, or some individual components of the design. Using this analysis, this work package will then allow engineers and analysts to define the functional and technical system requirements and the target performance metrics.

38. Draft Preliminary Design Documents

WBS ID: 38WBS Item Name: Draft Preliminary Design Documents

Description: This work package involves drawing together the research and analysis and the system requirements to produce drafts of the nursery system. This will include drafts of hardware, software, and ICT for the nursery system.

46. Develop Detailed Infrastructure Design Documents

WBS ID: 46WBS Item Name: Develop Detailed Infrastructure Design Documents

Description: This work package involves refining the draft design documents into a detailed system design, including hardware, software, and ICT for the nursery system.

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52. Build Nursery System

WBS ID: 52WBS Item Name: Build Nursery System

Description: The nursery system is created during this work package. Activities include sourcing the materials for the construction of the nursery system, the construction of a prototype, and the testing and evaluation of the prototype to ensure it not only works correctly, but also fulfils its requirements.

59. Deployment

WBS ID: 59WBS Item Name: Deployment

Description: Deployment involves the roll-out of the nursery system. This includes communications exercises to promote the nursery system to potential buyers of the system, another test of the entire verify its effectiveness, and the release of the nursery system to the wider ANU BioSolar program. This stage also includes the development of a user manual, for those who will buy the system.

179. Document Problem Tracking Procedures

WBS ID: 179WBS Item Name: Document problem tracking procedures

Description: This activity involves documenting and problems that may occur during the project. Documenting problems ensures that all project team members are aware of problems that have occurred and their solutions. This activity also provides a documented account of any problems that occurred, for use in the lessons learned report.

181. Closing

WBS ID: 181WBS Item Name: Closing

Description: The closing phase of the project includes formal acceptance of the nursery system, administrative activities

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associated with the end of the project, and the preparation of reports for stakeholders and the wider community.

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20. References

1. Arrow, J. (2008), Knowledge-Based Proactive Project Risk Management, AACE International Transactions, Pg R01.1 – R01.09.

2. AS/NZS ISO 31000:2009, http://www.standards.org.au/. Accessed on 20th September 2010.

3. Bahill, A. T. and Smith, E. D. (2009), An Industry Standard Risk Analysis Technique, Engineering Management Journal, Volume 21, Number 4, Pg 16 – 29.

4. Cline, M., Guynes, C. S. and Simard, K. (2010), Ace Project As A Project Management Tool, American Journal of Business Education, June, Volume3, Pg 63-68.

5. Course Notes of BUSN7024 – Project Management Principles, Semester 2, 2010, ANU.

6. Gill, A. (2008), An effect-cause-effect analysis of project objectives and trade-off assumptions. International Journal of Managing Projects in Business, Vol 1, Number 4, Pg 535-551.

7. Gray, C. F and Larson, E. W. (2006), Project Management: The Managerial Process, Third Edition, McGraw Hill, Singapore.

8. http://projects.anu.edu.au/management/index.php , accessed on 15 September 2010.

9. http://policies.anu.edu.au/policies/risk_management/policy accessed 15th September 2010

10.Juran, J. M. (1988), Juran on planning for Quality, New York: Free Press.

11.McManus, J. and Wood-Harper, T. (2007), Software engineering: a quality management perspective, The TQM Magazine, Volume 19, No 4, Pg 315 – 327.

12.Masters, B. and Frazier, G.V (2007), Project Quality Activiti3es and Goal Setting Project Performance Assessment, The Quality Management Journal, Volume 14, Number 3, Pg 25-35.

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http://policies.anu.edu.au/policies/risk_management/policy

http://projects.anu.edu.au/management/index.php

http://www.standards.org.au/


13.Project Management Institute (PMI), (2004), A Guide to the Project Management Body of Knowledge, 3rd Edition, Four Campus Boulevard, Newtown Square, PA, USA.

14.Sanchez, H., Robert, B., Bourgault, M., and Pellerin, R. (2008), Risk management applied to projects, programs and portfolios, International Journal of Managing Projects in Business, Volume 2, No 1, pg 14-35.

15.Schwalbe, K., (2007), Information Technology Project Management, 5th edition, Thomson Course Technology, Cambridge MA, ISBN 1-4239-0145-2.

16.Zwikael, O. and Globerson, S. (2004), Evaluating the quality of project planning: A model and field results, International Journal of Production Research, Volume 42, Number 8, Pg 1545-1556.

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