International Journal of Manging Projects in Business

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Running head: PROJECT MANAGEMENT
Assessment 4: Project Management
Student Name:
Student Number:
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1PROJECT MANAGEMENT
Abstract
The report is focused on analyzing three of the project management knowledge
areas such as scope, risk and cost management. In this study, three of the case
studies are discussed and analyzed such as lecture capture upgrade project, Sydney
Opera House and Severe exploitation of foreign workers in Australia. Selected
project knowledge areas are selected to achieve an efficient project management.
The areas are included processes which needed to perform in its discipline.
Literature study is conducted based on three knowledge areas for better
management of the construction project work. There is representation of completed
set of the project management concepts and activities that make a professional
project field. The knowledge areas discussed how the areas are worked in process
groups for defining project processes. It reuses existing project management
knowledge and creates new knowledge. Those are captured to make improvement
in current project and future scheme. The project developments are managed and
directed to lead the construction development work. In this paper, in results and
findings section, a comparison table is provided to compare scope, risk and cost
management based on selected three case studies. Defined project work is helpful
to approve project changes for achieving the project objectives.
Keywords: Scope management, risk management, cost management, project
management, knowledge areas
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Table of Contents
Abstract.........................................................................................................................1
1. Introduction............................................................................................................4
2. Literature Review...................................................................................................5
2.1 Scope management............................................................................................5
2.2 Risk management...............................................................................................8
2.3 Cost management.............................................................................................11
2.4 Literature gap/ challenges.................................................................................13
2.5 Conclusion........................................................................................................14
3. Case study review...............................................................................................15
3.1 Case study 1- Lecture Capture Upgrade Project..............................................15
3.1.1 Introduction.................................................................................................15
3.1.2 Problem description....................................................................................15
3.1.3 Research methodology and data collection...............................................16
3.1.4 Analysis......................................................................................................16
3.1.5 Findings......................................................................................................16
3.1.6 Recommendations.....................................................................................18
3.1.7 Conclusions............................................................................................18
3.2 Case study 2- Sydney Opera House................................................................19
3.2.1 Introduction.................................................................................................19
3.2.2 Problem description....................................................................................19
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3.3.3 Research methodology and data collection...............................................19
3.3.4 Analysis......................................................................................................20
3.3.5 Findings......................................................................................................20
3.3.6 Recommendations..................................................................................21
3.3.7 Conclusions............................................................................................22
3.3 Case study 3- Severe Exploitation of Foreign Workers in Australia.................22
3.3.1 Introduction.................................................................................................22
3.3.2 Problem description....................................................................................23
3.3.3 Research methodology and data collection...............................................23
3.3.4 Analysis......................................................................................................24
3.3.5 Findings......................................................................................................24
3.3.6 Recommendations.....................................................................................25
3.3.7 Conclusions................................................................................................25
4. Results and findings............................................................................................26
5. Conclusions and recommendations....................................................................38
5.1 Limitations.........................................................................................................40
References.................................................................................................................41
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1. Introduction
Martens and Carvalho (2016) discussed that project management knowledge
area is a concept and activities made for the project management field. The
knowledge areas are discussed in this paper for defining project processes. There
are total ten knowledge areas, as well as among which three of the knowledge areas
are considered for this study. The report is reflected on project management
practices based on three knowledge areas of project management namely termed as
scope, risk as well as cost management. The project scope management is referred
to as set of project processes which ensures that there is defined project scope. It
allows the manager to assign total sum of work required to complete the
development work. The risk management is a process to classify, assess besides
control the project hazards towards the organization (Wells, 2012). It enables the
business organization to decrease in organizational losses and raise business
opportunities. In this paper, there is also discussion on cost management, a process
helps to determine total budget for the project work and lessen chances to be over
budgeted.
The paper discusses on three case studies concerning on the project
management concepts. The project knowledge area is coincided with a process
group with project initiation to develop charter, planning for the project, execution of
project work, monitoring of cost and schedule and closing of project plan. In this
work, literature review is based on scope, cost and risk in IT projects. For each of the
case studies, there is discussion on problems, methods and data analysis. The
results and findings based on the reviewing the literature part and analysing of
business cases are discussed in this paper for better understanding of project
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management knowledge areas. The project knowledge process has purpose to
create new knowledge. The knowledge is captured for improving performance into
current project plan and making it available for the future project work.
2. Literature Review
The literature review is reflected on three knowledge areas of project
management such as scope management, risk management and cost management
of IT projects. This study helps in understanding aim of the research work which is
performed by author of the peer review articles. In order to review the three
knowledge areas of the project management, opinions as well as arguments of
various authors are reviewed in the literature evaluation part. Conclusion of the
literature assessment supports in gaining knowledge into this specified field.
2.1 Scope management
In this research study, it is shown that in the IT projects are unsuccessful to
see with the project necessities in terms of restrictions due to time as well as cost. It
projects are used by the business organizations to enhance competition, increase in
market presence, provide services as well as fulfil expectations of both clients as
well as stakeholders. In this paper, there is study on the factors contribute towards
project complexity due to project scope management. Almahmoud, Doloi and
Panuwatwanich (2012) discussed that the scope management is contained two main
processes like requirement management and analysis of work executed for
completion of a successful project work. Work is performed with development of the
work breakdown structure (WBS). Park et al., (2017) argued that reason behind
scope management focus is unsuccessful software project as result of poor scope
causes scope creep. The project requirements errors are costly to be corrected.
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Corvello, Javernick-Will and Ratta (2017) mentioned that the scope
management is termed as activity where expectations of stakeholders as well as
project requirements are gathered to define the project work. Improper scope can
lead to project delays, increase in project cost and sudden project changes through
the project execution phase. Sanghera (2019) illustrated that a process to organize
and document project requirements for complex system is termed as requirement
management. Considering the IT projects as hardware as well as software evolved,
software developers are started to deal in increasing complexity of the IT systems.
Complexity is related to It product as well as IT development process. From the
viewpoint of project management, managing project scope is required to overcome
with scope creep. In each IT projects, scope is required to be met and updated on
time before performing the project work. Fuller et al., (2017) stated that the IT
projects are differed as it is complicated along with technology dependent. The IT
projects are complex as it is dealing with the technical matters but the structural
factors are outside the control of development team.
Before starting the IT project work, the business is required to understand
stakeholder’s expectations that are involved and got buy-in from each of the project
stakeholders. Christoph Albrecht and Spang (2014) discussed that the scope of IT
project is defined which includes responsibilities as well as roles of the development
team members. The project plan as well as goals are developed, and created as the
project criteria to complete a positive project. In order to get an effective project plan,
it is required to know about roles of the development team members, who are
responsible for which development activities. It makes an easier to create project
accountability. Cicmil et al., (2019) mentioned that stakeholder’s expectations are set
and each one should know about the project deliverables. The purpose of this
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project effort is to control project scope besides scope creep. Following are the
factors central to scope creep in IT projects:
Poor scope: Sindi (2018) mentioned that the scope creep occurred as result
of poor defined project scope, by the project manager. Too broad and poor scope
creates misunderstanding to know the project requirements and the result is scope
creep.
Poor communication: Scope creep due to poor defined scope causes
misinterpretations into the project organization as well as project team members.
Communication related reasons for scope creep are lack of risk analysis, lack of
communication plan plus lack of processes to manage project changes (Yin, 2003).
Unavailability of formal communication is required information for the decision
makers which can influence on making conclusions or improper project decisions.
Neglecting requirements and expectations of stakeholders: Jackson
(2012) discussed that lack of stakeholder engagement of project scope can cause of
scope creep. Scope creep is occurred due to unforeseen project conditions,
inexperienced project client, inaccurate project scope statement and lack of project
knowledge. Case (2017) stated that it is not possible to manage scope creep if the
project manager ignores expectations, opinions as well as worries of project
shareholders.
In the project management literature, scope creep as well as scope change
are inevitable or preventable. According to Carton, Adam and Sammon (2008),
scope creep is occurred in the project on natural basis and argued that the project
manager should accept that it can happen in any project. As change in project is
constant, therefore scope creep is inevitable occurrence and the project expectation
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is also unrealistic. Martens and Carvalho (2016) found that scope creep is inevitable
as well as it is not possible to control. Perception that the scope creep is preventable
carried implications that arguments that the scope creep is inevitable. The project
scope is being preventable by daily basis review of scope and its progress to assign
alignment of the project outcomes.
2.2 Risk management
Almahmoud, Doloi and Panuwatwanich (2012) discussed that the risk
management is a termed used as project management knowledge area for risk
identification, prioritization of development risks and assessment as well as risk
assessment. The risk control contains three main steps in IT projects like risk
management planning, resolution of risk, and risk monitoring. In this literature study,
the main aim is to establish relationship between the project outcomes as well as risk
factors mainly related to IT projects. Shenhar (2008) mentioned that risk analysis is
performed to set high priority risks from all identified risks in the project. The
procedures for risk investigation are regression analysis, fuzzy logic, association
rules, clustering analysis, and many others. At the project execution phase,
operations of IT are considered to identify possible risks in IT projects (Bhadange &
Khedikar, 2018). At the time of business expansion, the IT team should work with the
human resources, administration and finance department for planning project
budget, schedule and ordering of new IT equipment’s. Following are the project risks
of IT project discussed as:
Mid project adjustment: Shenhar and Dvir (2007) mentioned that the project
team member should accept the project changes as well as adaptability as most of
the projects are being employed with few time for planning. The project members
should extremely agile. In the IT projects, there is possibility to deal with changes in
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new technology. In this case, due to sudden change in the project, it provides impact
on project budget, technology and stakeholder engagement. Javed et al., (2019)
argued that due to mid time project changes, delayed project is expected and the
clients are not satisfied with the work.
Poor communication among the project team members: Sutterfield,
Friday-Stroud and Shivers-Blackwell (2016) categorized that poor communication is
a cause for plan failure. Main issue that the project manager faces in IT projects is
collaboration with various individuals as well as team employed from distant
locations. Ineffective communication among the members due to distant location
causes issues for network downtime. In this case, the manager should work through
network project team to identify causes of issues and work with the service providers
to get the system running as it is before. Abere (2017) argued that if the plan
manager is not communicating with other project members, then the entire project
work should fail. In order to get positive plan impact, the project manager should
manage each plan activities and communicate with members efficiently to resolve
stakeholder’s problems and meet with client’s requirements.
Lack of project management practices: The business organization is not
putting the project management into practices (Chaudhary, 2018). Due to absence of
open communication besides absence of project management practices, it is difficult
to determine project status of each project activity with stakeholders are challenges
faced by the project manager.
The critical success factors of risk management is limited to areas in which
the project results are satisfactory if it will ensure to provide successful performance
for IT projects. Junkes, Tereso and Afonso (2015) mentioned that the factors are
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keeping a better performance for the project group and its working activities. In this
section, there is review of critical success factors of the risk administration
procedure.
First factor is commitment and support from top level management. The
result showed that top level management support inspires achievement level of the
project organization. Kliem and Ludin (2019) argued that high position of
management level included various activities such as developing project processes,
training program, supporting quality management and others. According to
Burtonshaw-Gunn (2017), the top level management is playing a major role to
influence the project success, efficient decisions to manage project risks and
authorize the project changes. In this study, it is realized that the IT project manager
involves risk management to identify probability of negative impact and therefore it
requires support from top level managers.
Second factor is communication. Most of the business organizations receive
that a good communication is significant to manage project risks. Effective project
leader who is good at message statement can able to set the shared project
expectations, project purposes and its objectives. Christoph Albrecht and Spang
(2014) suggested that a good communication confirms that team associates should
appreciate project requirements. Increased need of the project communication
ensures that the employees should appraise project happenings from both in and out
of the organization.
Third factor is information technology. The IT projects requires information
technology for increasing in market competition, high business performance, and
globalization. Shenhar and Dvir (2007) mentioned that the information technology is
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related to aspects of business like access to network infrastructure, technical
knowledge, and allocation of resources, human assets and communication support.
By using IT equipment, there is redesigning of business process and improving the
profitability of business.
2.3 Cost management
This section is discussed on controlling the project cost. In the It project, the
project cost is the cost needed to procure all required products, services as well as
resources for distributing the project work. Lock (2017) discussed that decision of
project success is taken from how well the project work is being handled into the
project plan. Most of the time it is possible that the development work is not finished
on scheduled interval and cost. Therefore, it is required to perform accurate
estimation of project cost. Harrison and Lock (2017) mentioned that importance of
cost control into success of project management is something that each project
manager is familiar. As time as well as resource management is difficult to achieve
development goal, therefore cost performance determines a positive outcome of the
project. In order to establish a control over plan budget, the project manager
exercises a strict supervision of project cost. Papke-Shields and Boyer-Wright (2017)
argued that if the venture cost is not managed properly, then it is hard to handle
complex IT projects. Control over project budget includes identification of sources of
IT project cost from starting of the project planning.
In order to control over project cost, earned value management is used as
effective process to track project cost as well as examine project expenditures
related to project work. Fleming and Koppelman (2016) mentioned that when the
total project cost of IT project at provided time is over cost baseline, then cost
measurements are required. Earned value management (EVM) is looked at cost,
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schedule and completion time of project task in scope of the project plan. It is using
work breakdown structure along with budget created through the development stage.
It tracks the project metrics through the implementation phase of the project lifecycle
in IT projects (Fewings & Henjewele, 2019). Through earned value management,
there is identification of following cost management terms related to assign IT
project:
Planned value: It is the initial budget value or cost of project plan. It is the
approved value of the project work accomplished at certain period of project
timeframe.
Earned value: It is the cost worth of work accomplished at a particular point
of the project work. It is used for estimation of how the project is performed based on
budget along with schedule.
Actual cost: It is termed as actual project expenditures at calculated points in
project plan (Fleming & Koppelman, 2016).
Estimate to completion: It is used for measuring the cost of project using
estimate time to completion and estimate cost to completion. There is management
of both time as well as cost to complete work at certain period of timeframe. It is
mainly required to complete remaining project work.
Budget at completion: It is the total project budget required for the project. It
contains measurement of sum of budget values included schedule activities or
components of work breakdown structure (Chen, Chen & Lin, 2016).
Cost variance: It is difference among budgeted project cost and actual
project cost. When the cost variances is positive, it indicates that there is less
expenditures as it is expected.
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Schedule variance: It is difference among budgeted project cost and actual
value of completed work at provided point of project work (Webb, 2017). When the
schedule variances is positive, it indicates that there is less expenditures as it is
expected.
Cost performance index: There is comparison of project expenditures to the
actual value of the project work (Chen, Chen & Lin, 2016). When value is greater
than 1, therefore it indicates that the project expenditures is below budgeted value.
Schedule performance index: There is comparison of project expected
value to the actual value of the project work. When value is greater than 1, therefore
it indicates that the volume of project work is exceeding plan (Fleming & Koppelman,
2016).
Once the project work is going awry, then it is vital to estimate actual project
cost and earned value on the planned value of cost baseline. By means of required
adjustments into the project scope along with resource allocation, the project
manager should estimate actual project cost from a particular point to reduce
difference among planned value along with actual cost. Kerzner (2019) suggested
that EVM has key significant role in cost management as it performs estimation of
cost at planning, execution along with controlling phases of the project lifecycle.
Javed et al., (2019) argued that it is not possible to determine EVM without a proper
project plan, detailed work breakdown structure and a detailed project budget. It is
required to track the project at implementation stage of project management.
2.4 Literature gap/ challenges
Discussion on the project scope change and its impact is not new to the
project management literature. In this literature study, significant effort is provided by
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the researcher to explore the scope creep in the literature to illustrate its involvement
in the IT projects. The scope creep is a topic mentioned in the literature, there is no
such method or processes on how to handle the scope creep and identify it. Scope
creep is either preventable or inevitable has been presented as research gap for this
study. In the risk management overview, there is literature gap related to
identification of all other risks in IT projects and providing their mitigation strategies
to manage each individual risks. Finally, in the cost management, the author is tried
to understand the earned value management technique and explained cost
management phenomenon from the literature review. There is gap related to
discussion of other cost management techniques used in project to manage as well
as control project budget.
2.5 Conclusion
It is concluded that in IT projects, it is required to improve over the quality of
the information technology. In the It project, due to sudden change in the project,
scope creep occurs. Clear communication among the development manager as well
as stakeholders is required to implement a proper scope management. Both the
project parties should understand the scope and achievement of project goals. It
helps to understand project requirements to meet with project objectives. In the IT
projects, there are various project risks which are required to overcome by means of
risk analysis. The risk study aids to determine the rank of each risks so that the
researcher can understand risk priority based on its ranking. In managing project
risks, communication plays a key role to stakeholder’s progress and change to
identified risks. It is also concluded that the cost management is significant for the
plan as it helps to set the project baseline for what the project is being expected to
cost and ensure that the plan plan is on estimated and reasonable price. Without
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appropriate cost management, the business can miss their money and also
customers. The cost management techniques help the project manager to maximize
its overhead, capitalize on IT and train the employees on time management.
3. Case study review
3.1 Case study 1- Lecture Capture Upgrade Project
3.1.1 Introduction
The project work is focused on project management practices assigned to the
project manager in addition project team members is upgrading of existing lecture
capture system. The staffs of Australian University were facing two types of issues
such as operational as well as functional. The challenges were faced by both
lecturers as well as students involved with the university. Therefore, in order to
overcome with those issues, the management of Australian University decided to
upgrade its lecture capture system. The project was started in the year 2017 where
the staffs were interested to improve the lecture classes of their five campuses with
160 total classrooms. Successful of the project is focused on three project
management knowledge areas- scope, risk and cost management. The total time
required to perform upgrade activity is 4 days with a total cost of around $50,000.
The goal of this upgrade project is providing physical access to its upgraded devices
and ensuring that the project staffs are capable to access to the devices needed.
3.1.2 Problem description
After going through entire case scenario of Australian University, it is found
that some of lecture rooms were not unlocked, as the university staffs were not
informed about the upgrade work in weekend. The staffs were not communicated
well with the project team regarding the system improvement work. It is considered
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as operational issue. It is also found that upgrade code of devices were not provided
proper response. It is considered as functional issue in the project work.
3.1.3 Research methodology and data collection
In order to gather data for the system improvement work of upgrade of lecture
capture system, positivism research philosophy, descriptive research design, primary
data sources and deductive approach will be considered. Qualitative data are to be
gathered by means of primary sources means hidden facts of the lecture capture
devices (Alvesson & Sköldberg, 2017). Existing functional risks in the system will get
eliminated in the operation stage of project lifecycle.
The initial stage of this project is collecting data from the journals and peer
review papers based on upgrade project for the Griffith library, search engine like
Google Scholar and others. By using the seminar conducted in Australian University
by PM Mr. Den Cho, it provided better understanding of key success factors of the
project work, challenges and techniques used to overcome with this project
circumstances.
3.1.4 Analysis
Qualitative data analysis is mainly used in this investigation work for
developing the project management concepts related to upgrade project work. The
project manager performed the project work by assumptions of evidences collected
founded on the project management knowledge areas (CuervoCazurra et al., 2017).
The project manager uses the project related documents for providing a meaning to
the research work.
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3.1.5 Findings
As per the PMBOK knowledge areas, in this study, there is discussion of three
knowledge areas such as scope, risk and cost management. Based on seminar, it is
found that the project staffs are faced issues in performing the project work
(Crawford & Stretton, 2018). The project management aspects as well as factors are
not managed efficiently by the plan manager besides their team. The scope
management is a key knowledge area where is dealing with the project scope, work
breakdown structure as well as baseline of the project. There is lack of management
of project baseline by the project team and project manager at designing of upgrade
lecture capture project (Chakra, Tannir, & Ashi, 2017). The project work is being
directed towards the project objectives, project aim as well as project goal.
The project risk is a key significant knowledge area included identification of
risk, planning, assessment and controlling of project risks. In the business case of
Australian University, there are two main issues such as functional and operational.
Some of the lecture rooms were not unlocked while the security office is not informed
about upgrade activities of project work. Smaller number of lecture records were
being affected due to project risks (Crawford & Stretton, 2018). The codes were
being upgraded where some of the lecture devices were failed due to timely
response of project changes.
The stakeholder management as well as procurement are two of the
knowledge areas which are required to manage and consider by the project team
member. The staffs were not allowed to get access to the content of the lecture.
There is management of the development stakeholders in the project plan. The key
aim of this project study is operational as well as functional project changes. Finally,
from the discussion it is implied that some of the knowledge areas were managed
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properly while some of them were not managed properly (Dumrak, Baroudi, &
Hadjinicolaou, 2017). Therefore, the knowledge areas which were not managed
properly, it required attention from the project manager.
3.1.6 Recommendations
The schedule of project timing should require to auto scheduled to make sure
that there is no operational as well as functional project risks occurred at planning
and execution of project plan. Lack of project resources plus lack of project
experience and skills of project staffs is other risk which can provide impact on
project outcomes. The lecture rooms are also not opened.
In order to achieve positive project outcome, the lecture device is required to
include the security elements. The security program will ensure that there is only
useful data accessed and no unauthorized person can access those data from
computer server. Security improvement program is required to overcome with the
functional issues of project work.
3.1.7 Conclusions
It is concluded that in this project plan, there is required to have a proper
communication plan to perform interaction among project team members and staffs
of Australian University. Communication will help them to get a perfect project scope.
It is required to understand project scope and project goals so that the project can
finish on time and get project success. Understanding of project scope helps to
determine main project requirements. The project manager is responsible to track
project progress, project changes so that it will be easier to identify as well as
mitigate project risks. The project cost is involved in this project for setting baseline
and estimating total cost required to finish work on scheduled time period.
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3.2 Case study 2- Sydney Opera House
3.2.1 Introduction
The report is focused on Sydney Opera House, which is known for its iconic
buildings identified around the world. The project schedule date was around four
years, which has a budget of AUS $7 million. The Sydney Opera House Project was
acquired 14 years for its achievement while the price is around AUS $102 million.
From its financial view point, the project was considered as disastrous construction
project. The main stakeholder of this development was client, State of New South
Wales. The project was based on three project management knowledge areas such
as scope, risk as well as cost management.
3.2.2 Problem description
The problem of this project was that due to financial values, the project was
seen as disastrous construction project in the time of history. The entire
administration plan of the project was not clear. There is undefined project goal at
the last situation of building work of Sydney Opera House. There is time issues in the
project as the project was planned for four years to complete while it completed
nearly 14 years with increase in total budget from AUS $7 million to AUS $102
million. Therefore, in this project two main problems are related to time and cost
issues.
3.3.3 Research methodology and data collection
In order to perform the research study, case study analysis is used based on
the business situation analysis of Sydney Opera House. The main purpose of this
case study analysis is identification of reasons behind time and cost issues identified
by the project manager during construction work of Opera House.
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In order to collect data for particular study, there is review of project related
documents included project report, progress report and schedule and cost plan of
the project (Fletcher, 2017). Observation technique is also helpful to evaluate
reasons behind time and cost issues those cause project delays and increase in
project budget. It is the best data collection method by monitoring and assessing
project situation as well as document evidences (Kan et al., 2016). It provides with
an understanding of project management activities and business situations being
assessed.
3.3.4 Analysis
The project management team was facing difficulties at the time of
construction of Sydney Opera House mainly in its construction activities. The project
team faced complexities while construction of the Opera House due to its poor
project planning. Due to improper development of the project work, the development
goals are unrestricted in addition no proper tome as well as cost limits provided for
finish the project plan (Harding, 2018). There is also increase in project budget as
the completion date was not meet (Bryde, Broquetas, & Volm, 2013). The main
scope of this project was construction of Opera House with meetings its completion
time and budget.
3.3.5 Findings
Based on the scope management, it was found that at the starting of the
project areas as well as project purposes, there is defined project work for providing
a guidelines to end the work on time. The project was based on three main project
factors such as time, cost as well as quality (Kerzner, 2017). In case of Sydney
Opera House, it was seen that there is unrestricted project goal. There is no such
indication in case of time as well as cost were providing to complete the plan work.
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The project scope management plan ensures that construction process is carried out
efficiently with all work to achieve project objectives (Zou et al., 2014). The purpose
of this project is to control schedule and cost for its successful completion.
In respect to plan on the cost management, the funds for the plan came from
dedicated lottery, while the plan was not monetary problem for the Australian
Government. The objective of the project was to end construction house of Opera
House within end of 1962, then grand opening of the hotel started 1963. The project
was completed in four years. Due to increase in project time, the budget was also
increased from AUS $7 million to AUS $102 million. Through the cost management,
the project cost was being considered in efficient way so that the project plan was
prepared as per defined project budget. Therefore, cost issues were overcome with
cost management plan (Pemsel & Wiewiora, 2013). The plan manager in addition to
team associates are responsible to make sure that the development remains on
budget, performance needs of construction work and meet with its scope.
The risk management plan was not performed in proper way due to which
there is risk of project delays and due to increase in timeframe, there is also increase
in budget. The project team is not completed work on scheduled timeframe with
delays of 10 years as per their planned completion time (Edwards & Bowen, 2013).
There should be proper implementation of risk management plan in the construction
project which will help the project participants to meet with project commitments as
well as reduce negative impact on performance of construction project in relation to
cost as well as time.
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3.3.6 Recommendations
Scheduling: It is recommended to the manager to schedule entire upgrade
project so that there is proper representation of each project activities in graph form.
There is proper documentation of the project related work and budget planning
included to estimate project expenses.
Risk management plan: It is recommended to connect the risk policies in addition
techniques through the project manager. It helps to recognize project risks, assess
those risks and overcome issues before it provides negative impact on project
success.
3.3.7 Conclusions
From this entire project report, it is concluded the project team related to
Sydney Opera House project faced difficulties to complete the project due to lack of
development planning besides lack of knowledge in knowledge areas of project
management. It is analyzed that the Sydney Opera House Project should complete
on time and in cost by following three knowledge areas- scope, cost and time
management. Effective communication should help them to achieve its project goals
by interacting between shareholders as well as planning team members. It is
required to complete construction work successfully, on scheduled timeframe in
addition to calculated fund.
3.3 Case study 3- Severe Exploitation of Foreign Workers in Australia
3.3.1 Introduction
In the project report, developer engaged XYZ Mega Constructions for building
larger complex into the regional area of Queensland. XYZ Mega Construction
engaged the sub-contractors in different elements of the building complex, by calling
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23PROJECT MANAGEMENT
a public tender for its each element. Among it, one of the element is stonemasons.
The contract was awarded to TUV Stonemasonry, and they quoted a low price which
is 50% cheaper as compared to their competitors tender. Within six months, the
stonemasonry element was planned to complete. However, due to issues in staff’s
payment, the construction of complex was being delayed with six months. Developer
as well as XYZ incurred damages to their business with additional cost essential to
complete the development work. There is loss of revenue due to delay in complex
construction work.
3.3.2 Problem description
The problems identified in this case are related to working hours of the foreign
stonemasons as they were working seven days in week while they were supposed to
work five days per week. As the stonemasons were working seven days a week,
there were not paid as per their working hours. Even they were paid less as
compared to their 12-14 hours working hours on daily basis. Due to this working hour
issues, the project was not completed in six months as scheduled and delayed with
six months more. Due to court case as well as delay in construction work, money
saved by awarding to cheapest tendered was lost. Due to six months delay, there is
loss of business revenue and increase in further project cost.
3.3.3 Research methodology and data collection
In this study, the research methodology is determined as case study analysis
of the construction work of XYZ Mega Construction. The construction is based on
building a large complex into regional Queensland. The price is quoted with 50%
cheaper as compared to competitor’s tenders. The general purpose of this case
study analysis is describing the individual situation of the construction work and
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24PROJECT MANAGEMENT
identify the key issues of project case (Tracy, 2019). The entire case is analyzed by
use of theoretical concepts from the project management unit.
Observation data collection method is used for gathering knowledge of
research phenomena through creating observations of entire project work of large
complex building. There is focused on the working hours of the staffs as they were
working more as per their schedule and not paid as per their working hours. There is
using of senses for examining people into natural settings and occurring situations. It
is a field involved to engage people into social situations (Varajão, 2016).
Observation method helps the researcher to document as well as analyze actions
required to overcome with construction problems.
3.3.4 Analysis
In order to analyze data using observation technique, it is required to identify
the project objectives, establish project records and analyse behaviours of staffs
involved into building work. Due to court case and construction delays, there is
increase in cost and increase in time by extra six months. The business faces
revenue loss and loss of their reputation in the market due to court case of the
workers.
3.3.5 Findings
It was found that foreign stonemasons were living on the construction site with
working seven days in a week, while supposed to work for five days per week. It
showed that there is lack of project scope and planning by the construction
organization (Laursen & Svejvig, 2016). With each of the worker, an individual
interview were conducted shows that the each foreign workers worked for five days
per week while in case of pay, there were different answers from them. There were
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not received any payslips. The workers were not treated properly on the construction
site as they were forced to work seven days a week and not provided with any
medical care (Meredith, Mantel, & Shafer, 2017).
In this case, there is no proper management of project risks. There is lack of
interaction among the developer besides sub-contractor, as the developer was not
familiar with knowledge of sub-contracting arrangements (Hillson & Murray-Webster,
2017). There is also lack of top management support as the workers were afraid to
loss their job and deported to be spoken up. The developer was not concerned with
conditions of worker as they were focused to save money in the project. There was
lack of identification of risks of exploitation.
In relation of cost management, the project developer is focused to save
money for their construction project throughout cheapest tendering of the large
complex building work. While in the court cases and reputation loss, the business
faces cost issues as they had to give negotiation amount, on behalf of the foreign
workers to be back pay for four months of underpayment (Keil, Lee, & Deng, 2013).
The entire construction work was delayed by six months, with reputational damage
as well as additional cost found to complete the construction work.
3.3.6 Recommendations
The project team members should do a proper project planning at the project
initiation stage and hire project workers based on development requirements. It is
recommended to manage all the plan risks and control it with risk mitigation
strategies. It is also required to maintain quality of the development work as well as
gain project success in all project management aspects. Efficient communication is
also recommended among the project manager, developer and other stakeholders.
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26PROJECT MANAGEMENT
3.3.7 Conclusions
It is concluded that the developer is not supported the project from its initiation
stage and due to lack of communication, they were not concerned or informed about
the current worker’s conditions on the construction site. Risk management plan is not
implemented properly on the construction site, due to which there is huge loss to the
revenue of the business. Due to lack of consideration of the project time and cost
knowledge areas, the developer faced various issues related to cost and schedule.
Finally, the project could complete work as per planned as well as scheduled related
to the project management knowledge areas.
4. Results and findings
From this particular work study, it is found that the knowledge areas are being
presented in operations of each development work of the provided case studies. In
this particular study, the project management knowledge areas considered are
project scope management, project cost management and project risk management.
Carton, Adam and Sammon (2008) mentioned that the scope management helps in
formulation of project plans. The plan cost management is considered as knowledge
area for completion of project plan. It helps the manager as well as team members to
assess project budget required for project finishing. Corvello, Javernick-Will and
Ratta (2017) discussed that the project risk management is considered as project
risks presented in project execution. The literature study aims to provide an
understanding of scope development of the implementation and construction project.
The project risks are analyzed to achieve project success and project cost is
considered as aspect to determine total project cost.
Findings on scope management
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27PROJECT MANAGEMENT
According to Martens and Carvalho (2016), the construction project is
proposed with higher contribution of economic status in the country, Australia.
Development of project scope is considered as key significant factor to assess
development success. Papke-Shields and Boyer-Wright (2017) mentioned that
proper scope defining helps the project executive to consider key plan management
aspects required during the project initiation phase. In order to define project scope,
there should require accurate understanding of project activities required to complete
work. According to Wells (2012), proper project scope creation helps to determine
cost incurred in construction project and ensure that there is no such overrun of cost
at project execution phase. Poor project scope causes problems in the construction
project leads to rise in cost besides time compulsory to end project work (Sanghera,
2019). In lecture capture upgrade project, there is delay in project due to lack of
communication, operational and functional issues. Similarly, in Sydney Opera House
project, there is delay in project completion time by 10 years due to lack of project
planning and communicational gap. In final project of building large complex, there
are health and safety issues of workers due to lack of management support and
unrestricted project scope.
Most of the time, there is delay in the construction project due to project scope
is not being developed as per project as well as client’s requirements. Other project
aspect is considered as the project scope is involved with managing of project work
and delivering the project work as per particular project dimensions. According to
Abere (2017), with proper project scope, all project benefits are achieved and project
outcomes are received. The project deliverables are also delivered as per expected
project results. In the construction project plans, there are some causes of project
scope creep are undefined project scope, improper project assessment and project
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planning. It will effect on project functions due to sudden changes in company’s
operations. Harrison and Lock (2017) stated that defining scope of plan is a key
significant factor to assess change management. After analysing all the three case
studies, it was found that defining of architectural services of project plan helps in
development of scheduling of project plan. Funds are provided for on time project
completion and ensured in proper execution of construction work. All the business
focused services are achieved as scope of any project plan (Kerzner, 2017).
Therefore, in all business cases, the project executive as well as development team
should determine the project requirements, project deliverables as well as project
changes to meet with project success.
According to Harrison and Lock (2017), managing of the client’s as well as
stakeholder’s expectations is key significant difficult activity that the project manager
faces in construction project. With distinct project scope, it helps the manager to stay
on the budget and on time through entire project lifecycle. Kliem and Ludin (2019)
discussed that a defined project scope avoids following problems:
i. The project requirements which are changed constantly.
ii. The project final outcomes are not being as expected by the project
client.
iii. There is overrun of project budget (Fuller et al., 2017).
iv. The project schedule is behind its scheduled time.
v. The project requirements are required to rethink at middle of the project
work (Carton, Adam, & Sammon, 2008).
An efficient scope management helps the project manager to mitigate project
issues by means of communicating the project scope to project members involved
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29PROJECT MANAGEMENT
into the construction project. As per Almahmoud, Doloi and Panuwatwanich (2012),
the project scope helps in determining what is as well as not involved into the project
and controlled it. The scope management is a difficult task for the project manager to
perform as they have no idea what time period, cost and resources are complicated
in planning. Therefore, the development manager should decide the project goals
and objectives with proper communication with project members (Yin, 2003).
Following are steps which involved in scope management:
Defining project needs: It is the first step for establishing the timeline of
project, distribution of project capitals as well as setting the development goals. With
a defined project goals, it is easier to understand what works are required to be
performed (Shenhar & Dvir, 2017). The team members are allocated with tasks as
per their knowledge and provided with a correct direction to deliver the project on
time and cost.
Understanding project objectives: In order to outline the project scope, it is
required to establish the project objectives which are required to upgrade the lecture
devices, building of large complex and construction of Opera House. The project
objectives are central to construction project plan, while the project manager makes
sure that the team can deliver project outcomes based on particular project features
and functions (Cicmil et al., 2009).
Defining project scope: Resources as well as work in the construction project
are defined scope of project. The scope contains outline of project goals meet to
achieve project outcomes. There will be undefined project scope, due to lack of
communication which occurred in the three business cases construction work.
Therefore, communication is key significant factor to meet with project scope. In
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30PROJECT MANAGEMENT
addition to all this, the project scope is tangible objective for project organization
undertaking into planning of construction project (Papke-Shields & Boyer-Wright,
2017). It is integral for project scope since it plays a energetic role in applying plan
methods for completion purpose.
Findings on cost management
According to Pemsel and Wiewiora (2013), the initial stage of cost
management area is determining the project activities required to end the
construction project work. After understanding the project activities, duration of each
activities are considered to perform the project work. Resources are allocated to
each project activities so that there is easier assessment of project cost needed.
Javed et al., (2019) stated that understanding of project resources is helpful to
predict accurate project cost required for completion. In this stage, there is
establishment of trend analysis of project cost incurred to execute project work
(Burtonshaw-Gunn, 2017). It provides an understanding of project cost required to
buy resources, equipment and provide salary to project resources. Earned value
management is the best process to determine the project cost along with project cost
variances if any in the construction project. Through this cost estimation method,
there is better understanding of performance of project activities and its varied cost
amount.
According to Fleming and Koppelman (2016), EVM method helps the project
manager to determine performance of construction project. It is a methodical project
cost management method used to measure cost and schedule variances based on
comparison of project work achieved as well as scheduled. There is controlling over
project cost as well as schedule and useful for construction project forecasting.
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Fewings and Henjewele (2019) stated that the earned value is considered how much
of project budget as well as time required to be considered for sum of project work
completed so distant. In the construction projects, the earned value is cost
management approach which is mainly used for checking the project plan, definite
work done as well as project work completed to track the plan. Using this cost
approach, the project manager meets with expectation of client so that the project
outcomes should improve as soon as possible.
According to Harrison and Lock (2017), the cost management helps into
controlling entire construction project in turn the entire business cost. By defining a
proper project scope, the project manager can predict future project expenses as
well as cost of project work towards predictable business revenue. In the case study,
severe exploitation of foreign workers in Australia, there is huge loss of revenues
due to absence of running support (Kerzner, 2019). The project developer is not
concerned that the workers are forced to work seven days in a week and not paid as
per their working hours. Therefore, it becomes a court case and the project result is
that the business organization provides negotiation to workers and also losses their
reputation in the market (Edwards & Bowen, 2013). Due to loss of business revenue
and court cases, the companies faced various issues like delays in the construction
project. As a result, the project is not on budget, not in performance of construction
work and not meet with its defined project scope. In Sydney Opera House project,
there is delay in project completion date from 4 years to 14 years due to operational
issues in the project.
From the case studies and their business cases, it is found that before starting
the project work, it is required to define objectives of the project so that there is
avoidance of any overrun of project cost. Zou et al., (2014) mentioned that it helps in
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32PROJECT MANAGEMENT
keeping the project on budget by estimation of all possible project costs. Through
proper cost management, the project manager can deal with unexpected project cost
when it is problematic to forecast the project charge reflected in the construction
project (Crawford & Stretton, 2018). When the labour as well as human resources
are measured together, then there is better analysis of total project cost. The factors
which affected the cost management are growth into information technology,
domestic or global competition in construction market and growth of the construction
sectors. Following are benefits of cost management helpful to manage project costs
in three project case studies such as:
a. Helps in controlling project construction cost and entire business cost.
b. Predicting future project expenses as well as cost based on
construction work towards expected business revenue (Dumrak,
Baroudi, & Hadjinicolaou, 2017).
c. Predefined project cost is maintained as project records for the
companies.
d. Helps in analysing long term trends of construction sectors.
e. Comparing actual cost incurred in the project with budgeted cost to
review if the project is spending more than it is expected (Jackson,
2012).
f. Helps to figure out the project tasks which are running efficiently and
stays in allocated project budget.
g. Prevents from being cost overrun due to additional of extra cost
expenses at middle of the project execution phase (Carton, Adam, &
Sammon, 2008).
Findings on risk management
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33PROJECT MANAGEMENT
According to Junkes, Tereso and Afonso (2015), the risk management
ensures to identify project risks, classify the risks, assess and mitigate the
recognised risks in the project. The risks are also ranked based on its score from
consequence and probability of its occurrence. It is a major factor considered in risk
management process. After analysing the business case of the projects in Australia,
the major risks identified as cost, time, quality, and safety, operational and functional
risks. Based on the risk ranking, the high risks are considered to mitigate it on time
(Corvello, Javernick-Will, & Ratta, 2017). Before performing the project work,
resource allocation is done. Project scheduling is acted as project issue which lead
to price risks. The project causes delay owing to variation in project design.
According to Cicmil et al., (2009), project delays can affect functions of project
management processes. The main purpose of risk management in this report is
reduction of negative impacts of project risks on construction performance related to
three main factors like rate, schedule as well as quality.
In the case study of lecture capture upgrade project, there are two main risks
such as operational and functional issues. Sometimes, while conducting lecture
device upgrade work, some of the rooms are unlocked as the security staffs are not
known that what time the project members should work at weekend. Therefore, due
to lack of communication amid university staffs and project members, project delays
occurred. There is upgrade system failure as codes are not upgraded properly. In
order to mitigate the risk, the manager required to implement a communication plan
in the project so that there would be better interaction among project stakeholders as
well as project team members (Sindi, 2018). The codes were required to maintain
properly in case to avoid any system failures.
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In case study of Sydney Opera House, time as well as budget are two main
risks. Due to lack of communication, undefined project scope and absence of
appropriate planning, the project plan got delayed of 10 years. The budget was also
increased from AUS $7 million to AUS $102 million. In this case, there is huge loss
to the business, due to high increase in planned plan schedule as well as forecasted
project budget. At the project initiation stage, the project manager should plan the
project work efficiently by considering all project requirements, project objectives and
goals (Bhadange & Khedikar, 2018). The manager should provide a scope statement
to define objectives and deliverables required to complete project work.
Communication is also helpful in this case to bring project stakeholders and project
members closer to each other. Finally, project scheduling helps to communicate the
project tasks required and organizational resources allocated to finish project work in
scheduled timeframe (Abere, 2017). It will document all project activities and tasks
required to deliver the construction project on planned timeframe. There is listing of
project milestone, deliverables and start and end date of each individual project
activities. It makes sure that the project completes on time as well as monetary
values.
In third case, there is health and safety risks of worked involved in building of
large complex. The workers those are involved in construction work were not treated
properly at site. The workers were forced to work more days in relation to their
scheduled planned working times. The workers worked seven days a week while its
scheduled time is five days a week (Papke-Shields & Boyer-Wright, 2017). Some of
them were not provided with any medical care. It caused court cases and resulted in
negotiation in terms of money. There was huge loss of business revenue, business
reputation and delay in the construction work (Fewings & Henjewele, 2019). The
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35PROJECT MANAGEMENT
main cause of this risk is lack of management support as developer was not
concerned with worker’s situations and focused more on cheapest price of tender on
building work. The main causes of safety risk are low management as well as
construction coordination procedure of sub-contractors. As risk mitigation strategy, it
should require to provide more focused on workers and they should provide with
proper medical care in case required. Developer should aware of working conditions
of construction workers and they should be strict rules and regulations at
construction project regarding working hours of the workers (Lock, 2017). There
should be a fixed time imposed for each workers to work at the construction site and
after that they should have to leave the site.
All the project risks are provided huge or negative influence on project
success. In three cases, the main reason for risk is lack of communication between
members and stakeholders. Critical path method is used to detect project tasks
which are critical and cause risks in future. Following are some steps required to
manage construction project risks:
a) A comprehensive risk program is required to recognize and deliver a
deeper empathetic of project risks.
b) A risk register is created for construction project includes elements like
risk description, its likelihood and consequence, risk owner, impact of
risk and risk response (Harrison & Lock, 2017).
c) Brainstorming current project risks with the members as well as
stakeholders is helpful to identify factors lead to challenges into the
project work.
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36PROJECT MANAGEMENT
d) It is require to review the risks on regular basis and monitor project risk
progress (Kerzner, 2019). It should be conducted at starting of project
planning.
e) The team members should encourage to discuss the top risks in
project team meetings so that the higher executive should provide their
effort as well as direction to manage the risks.
Based on entire case analysis, following table showed the comparison of
three project management knowledge areas for three case studies. It helps in better
understanding of project management concepts required to manage construction
project plan.
Case Study
Names
Project Management Knowledge Areas
Scope Management Risk Management Cost Management
Case study
1- Lecture
Capture
Upgrade
Project
In this project, there
is improper
managing of project
baseline by project
team and manager
while designing the
lecture capture
project.
There are two main risk
identified in the project like
functional as well as
operational risk. The lecture
rooms are kept unlocked due
to lack of communication
(Martens & Carvalho, 2016).
Codes were being upgraded
where some of the lecture
devices were failed due to
timely response of project
The project cost is
managed as compared to
other knowledge areas.
Lack of project resources
plus lack of project
experience provides some
effect on the project
outcomes (Shenhar & Dvir,
2007).
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changes.
Case study
2- Sydney
Opera
House
There is defined
project work, with
project goals and
objectives. The
project was focused
on time, quality and
cost to construct
Sydney Opera
House. While no
indication was
provided in case of
time as well as cost
to complete work
(Corvello, V.,
Javernick-Will, &
Ratta, 2017). The
main scope of the
plan was controlling
agenda and cost,
while the
development goals
are unrestricted.
In this project, there are two
main project risks, one is time
and other is budget. Due to
increase in project time from
four years to 14 years, it
provided negative influence
on project budget. The
budget was also increased
from AUS $7 million to AUS
$102 million. There should be
proper implementation of risk
management plan in the
construction project to reduce
negative impacts on business
performance (Dalcher, 2014).
The project has no
financial problem for the
Australian Government.
Due to delay in project
schedule of 10 years, there
is increase in project
budget (Yin, 2003). The
project manager and team
members are responsible
to make sure that the
project remains on budget,
performance needs of
construction work and
meet with its scope.
Case study In this case, there is The workers were not treated The main focus of project
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38PROJECT MANAGEMENT
3- Severe
Exploitatio
n of
Foreign
Workers in
Australia
lack of project scope
and planning by the
construction
organization as the
management and
developer were not
concerned with
worker’s conditions
involved in the
construction of the
large complex
building (Jackson,
2012). There is also
lack of top
management support
as the workers were
afraid to loss their job
and deported to be
spoken up.
properly on the construction
site as they were forced to
work seven days a week and
not provided with any medical
care. In this case, there is risk
of health and safety of
workers working on the
construction site (Sanghera,
2019). Along with this risk,
there is also risk of loss of
business revenue, business
reputation and delay in the
construction work.
developer was to save
money in construction
project through cheapest
tendering of the project.
Due to court cases and
delay in construction work,
the business faces cost
issuers due to lack of cost
management. The
business provided
negotiation amount, on
behalf of the foreign
workers to be back pay for
four months of
underpayment (Sindi,
2018). It leads to loss of
business revenue as well
as image in the
construction market.
5. Conclusions and recommendations
It is concluded that at starting of the plan work, the project team defined the
scope of project work whether it is implementation, building or construction related. It
is required to develop project schedule as well as budget. The project management
team builds a project idea through the plan execution phase based on profile of
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39PROJECT MANAGEMENT
project plan and project requirements. It is discussed in the report that developing as
well as tracking of project schedule helps to estimate and track project cost during
project initiation phase. Planning for the information technology, meeting with client
satisfaction level as well as communication are being developed during project
starting phase. From the study, it is stated that some of the project management
knowledge areas were not properly managed, while some of them are managed.
Among selected knowledge areas- scope, risk and time, the project manager and
team members are responsible to manage, control and monitor time and cost both.
Project process captures knowledge that the project team members can bring to
development planning.
It is discussed that development as well as review of project management
procedures contribute towards expansion of organizational structure of development
work. In all three case studies, the project scope describes what will be performed in
the plan besides how effort will performed. The first case study- lecture capture
upgrade project has defined project scope. Quality of scope is also measured by
project manager for developing an understanding of project plan. In second case
study on Sydney Opera House, there is efficient risk management while it lacks
controlling and monitoring of project delays. In third case study on severe
exploitation of foreign workers in Australia, it has defined goals and objectives while
project goals are unrestricted in some cases.
Following are recommendations suggested for the business cases on three
case studies:
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Proper planning: It is recommended that the manager should plan the proper
as per development requirements during project initiation stage and hiring all
experienced workers for performing work on the project.
Communication plan: Effective communication plan should require to
communicate between stakeholders and project team members so that there is
discussion of all project risks with each other.
Scheduling: It is recommended to schedule all the project activities by
representing the project plan in graphical form. All the project work should be
documented like project report, budget plan, risk management plan and others.
There should require to maintain time to achieve success.
5.1 Limitations
The limitations of the project are that the project case studies are only limited
to three of the knowledge areas. Due to limitation of project time, three knowledge
areas are discussed while in future, it is suggested to discuss other seven areas in
the project management aspects for better understanding of project work. It will help
the plan manager and team members to make a scheme plan for achieving project
success.
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Alvesson, M., & Sköldberg, K. (2017). Reflexive methodology: New vistas for
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