Understanding Project Management Concepts

This assignment delves into the fundamental concepts of project management. It examines various aspects such as project planning, budget allocation, risk management, team collaboration, and conflict resolution. The provided resources offer insights into best practices and tools used in successful project execution. Students are expected to analyze these concepts and demonstrate their understanding through critical thinking and application.

Running head: PROJECT MANAGEMENT
Project Plan: Building a New Home
Name of the Student:
Name of the University:

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Executive Summary
The management report is based on defining a project plan for the project in order to build a new
home for a family in Australia. The project plan describes the scope, objective and deliverables
of constructing a new home. It also estimates the schedule and time of the project plan with
identification of risks and constraints, assumption and project approach. The project plan will
commerce on 4th September, 2017 and it will complete on 4th June, 2018. There is 196 days
excluding Saturday and Sunday as working days. The purpose is to finish the construction stages
on time such as acquire of land for home, getting of required approvals, building the home,
landscaping with external as well as internal decorating. The price of the raw materials is not
increasing more than 10 percent during the project course.

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Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Project Overview.......................................................................................................................4
2.1 Project Scope.........................................................................................................................4
2.2 Objectives and Deliverables..................................................................................................5
2.2.1 Objectives.......................................................................................................................5
2.2.2 Deliverables....................................................................................................................5
3.0 Project Constraints.....................................................................................................................5
4.0 Risks..........................................................................................................................................6
5.0 Assumptions..............................................................................................................................8
6.0 Project approach........................................................................................................................9
6.1 Human Resources..................................................................................................................9
7.0 Project Schedule......................................................................................................................11
7.1 Gantt chart and Milestones..................................................................................................16
7.1.1 Gantt chart....................................................................................................................16
7.1.2 Milestones.....................................................................................................................17
8.0 Cost benefit analysis................................................................................................................17
8.1 Budget of project.................................................................................................................17
8.1.1 Cost of human resources...............................................................................................21
8.2 Payback calculation.............................................................................................................22

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8.3 Discussion............................................................................................................................23
9.0 Quality Assurance....................................................................................................................24
10.0 Recommendation and Conclusion.........................................................................................25
10.1 Conclusion.........................................................................................................................25
10.2 Recommendations..............................................................................................................25
Bibliography..................................................................................................................................27

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1.0 Introduction
The project plan is based on building new home for a family in Australia. Due to increase
into population, there is requirement of good living standards. People are required stylish home
for their living; therefore a new contract is signed for home construction in Perth. The home is
built with a goal to use of recycled and reclaimed materials for its construction. The building of
the home will strike balance among environment, economics as well as society.
The report analyzes the project constraints, objectives and risks to complete the project
plan on time. The schedule is planned using Gantt chart and milestone schedule. The cost of the
project is estimated using cost benefit analysis. The quality of the project plan is assured by use
of good quality goods and materials for the construction purpose.
2.0 Project Overview
2.1 Project Scope
The main scope of this project plan is to build a home within nine months by analyzing
the needs as well as interests of the stakeholders. The project work is divided into manageable
components such as breakdown of the home into smaller components so that the project manager
can easily conduct the work. The in-scope of the project are delivery of services within the home,
landscaping, secured boundary fencing with construction as well as furnish of the home. The out-
of-scope items are land surveying of the construction site, furnishing and maintaining of the
property on completion.

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2.2 Objectives and Deliverables
2.2.1 Objectives
Following of the objectives of the project plan:
 To clear the site and install of electrical and drainage services for building of new home
in two months of initiate of execution phase
 To construct of home in nine months after purchasing of sign of contract
 To identify the possible risks regarding the construction of home
2.2.2 Deliverables
In order to build the new home, the project plan will produce the key deliverables as:
1. Provision of electricity as well as drainage services
2. Accessing to the new home with higher quality of roads
3. Construction of the recycled home with landscaping as well as furnishing
4. Construction of 3 bedroom home
5. Secured fencing with security gate
6. Communal as well as residential landscaping
3.0 Project Constraints
The project consists of triple constraints such as time, scope and cost. The objective of
this project plan is to realize the triple constraint. The main focus of this plan is to complete the
building of new home within nine months as mentioned into the contract. Second focus of this
project plan is to achieve the target in provided budget and before working into the project, the
cost of materials and equipments are estimated such that there is no exceed from provided

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budget. The estimated budget is $ 31,792 and within this budget, the procurement is done into
future. Building of new home with basement, grounds as well as first floor are done. The most
important factor of this plan is identification of scope. The project scope is building of home
within time as well as budget. The new home must allow for proper roadside parking. It reduces
size of the land spaces allocated.
4.0 Risks
Risk Description Likelihood Impact Status Mitigation strategies
Quality risk The quality of the raw
materials used to build
new home are not
matched with required
quality.
High High Open The project manager should
check for the quality of the
materials before used into
the project work. Backup of
the supplier are not
identified.
Inflation There is an increase
into price of the
materials and
equipments.
Medium High Open There is reservation of
extra money from the risk
management.
Stakeholder
risk
There is possibility of
change into
requirements. The
progress of project is
not up to the
Medium Mediu
m
Open The project plan should
focus on stakeholder’s
expectations and work
again to fill their new
needs.

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stakeholder’s
expectations.
Failure of
machinery
The machinery is not
working properly.
Medium Mediu
m
Open Extra machinery is
purchased and there is
option for backup of
machinery.
Schedule
risk
There is delay into
planning approval
resulted into project
delay.
Medium Low Open As earlier as possible, there
is required to apply for
planning approval and
followed to make sure that
approval is permitted when
required.
Load
shedding
The electricity is
affected and then the
machinery stopped
working because of
load shedding.
Low Low Open There is required to
purchase of generator.

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Impact/Likelihood Low Medium High
High Quality risk,
Medium Schedule risk Stakeholder risk,
Failure of machinery
Inflation
Low Load shedding
Table 1: Risk Register
5.0 Assumptions
Following are the project assumptions:
1. The final permission for the project plan will approve by the project management team in
required time.
2. There is enough selling of the land for building of new home in time required.
3. It is feasible to install of electricity and drainage services within new home.
4. All suppliers, services, resources and raw materials are available as needed by the project
manager.
5. The price of raw materials are not increasing more than 10 percent during the project
work

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6.0 Project approach
Type of resources Requirement
Human Resources The human resources required are project manager, team leader,
finance manager, project sponsor, quality manager, suppliers, site
supervisor, electrician, project supervisor and project staffs.
Equipments Cutter, Plumping sewerage equipments,
Transportation resources Trucks required for delivering of materials.
Materials Cement, steel and sand, wood,
Software resources The resources are required to design the home.
6.1 Human Resources
Roles of human
resources
Responsibilities
Project Manager 1. Deliver the project within time and budget
2. Manage the project staff, suppliers as well as customers
3. Undertaking of project activities needed to plan and execute
4. Authority to change the management plan
Team Leader 1. Lead the entire project team
2. Monitor the project work
3. Solve the problems among the team members
Finance Manager 1. Estimate the project budget

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2. Authority to inspect cost of each activities
3. Record the balances against the costs
Project Sponsor 1. Lead the project board
2. Approve the project requirements and resources
3. Collect fund for the project
4. Authorize acceptance of the final solutions delivered by the project
team member
Quality Manager 1. Authority to check for the quality of the materials used into
building work
2. Authority to make changes into quality
3. Review the internal processes of project plan
4. Conduct of periodic management of review the meetings
Suppliers 1. Supply of materials within time and receive the cost
2. Cash, delivery and collecting of mail
3. Report on the project work as scheduled
Site Supervisor 1. Survey the location and site of the construction
2. Assess of a variety of safety risks and fix the hazards
3. Understand the organizational rules and regulations
Electrician 1. Installation and maintenance of wiring and lightning systems
2. Inspect of electrical components
3. Identification of electrical issues with the testing devices
4. Direct the workers to install and maintain electrical wiring and
equipments

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Project Supervisor 1. Development and implementation of project work plans
2. Review the plan and meet with change requirements
3. Conduct of onsite visits and coordination with the operational
personnel
4. Conducting of quality work
5. Supervision and stimulation of procurement activities
6. Support towards cost savings and development initiatives
Project Staff 1. Contribution towards project objectives
2. Completion of project deliverables and project reports
3. Working to meet with business requirements
4. Documentation of the project process
7.0 Project Schedule
WBS Task Name Duration Start Finish Resource Names
0
Project plan on
building of home
196 days Mon 9/4/17 Mon 6/4/18
1 Initiation phase 25 days Mon 9/4/17 Fri 10/6/17
1.1
Appointment of
project team
3 days Mon 9/4/17 Wed 9/6/17 Project Manager, Team Leader
1.2 Set up the project 5 days Thu 9/7/17 Wed 9/13/17 Project Manager, Team Leader

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plan
1.3
Review the project
stakeholders
7 days Thu 9/14/17 Fri 9/22/17 Project Manager
1.4
Conducting
weekly meeting
10 days Mon 9/25/17 Fri 10/6/17
Finance Manager, Project
Manager
2
Document review
and revision
29 days Mon 10/9/17
Thu
11/16/17
2.1
Review and
finalize th plan
5 days Mon 10/9/17 Fri 10/13/17 Project Manager, Team Leader
2.2
Finalize the project
specifications
4 days Mon 10/16/17 Thu 10/19/17 Project Manager
2.3
Finalize the site
plan
4 days Fri 10/20/17
Wed
10/25/17
Project Manager
2.4
Printing of
construction drawings
10 days Fri 10/20/17 Thu 11/2/17 Site Supervisor
2.5
Approval of the
revised plans
10 days Fri 11/3/17
Thu
11/16/17
2.5.1
Approval of
revised specifications
10 days Fri 11/3/17 Thu 11/16/17 Project Manager

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3 Bids and contracts 28 days Fri 11/17/17 Tue 12/26/17
3.1
Making copies of
project plan
8 days Fri 11/17/17 Tue 11/28/17
Project Manager, Site
Supervisor
3.2
Making copies of
specifications
6 days Wed 11/29/17 Wed 12/6/17 Project Manager
3.3
Distribution of
plans and
specifications
6 days Thu 12/7/17 Thu 12/14/17 Project Manager
3.4
Receiving and
reviewing of bids
8 days Fri 12/15/17 Tue 12/26/17 Project Manager
4 Site work 94 days Wed 12/27/17 Mon 5/7/18
4.1 Clearing the lot 29 days Wed 12/27/17 Mon 2/5/18
4.1.1
Excavating for
foundation
19 days Wed 12/27/17 Mon 1/22/18 Site Supervisor
4.1.2 Location survey 10 days Tue 1/23/18 Mon 2/5/18 Quality Manager
4.2
Electricity rough
in
8 days Tue 2/6/18 Thu 2/15/18
4.2.1 Electricity 8 days Tue 2/6/18 Thu 2/15/18 Electrician

14PROJECT MANAGEMENT
installation
4.3 Roofing 14 days Fri 2/16/18 Wed 3/7/18
4.3.1
Roofing paper
installation
6 days Fri 2/16/18 Fri 2/23/18 Project Manager
4.3.2
Finishing of
exterior
8 days Mon 2/26/18 Wed 3/7/18 Project Manager
4.4 Interior works 43 days Thu 3/8/18 Mon 5/7/18
4.4.1 Floor finishes 20 days Thu 3/8/18 Wed 4/4/18 Team Leader, Project Staff
4.4.2 Install of floor 6 days Thu 4/5/18 Thu 4/12/18 Project Staff, Quality Manager
4.4.3 Install of carpet 6 days Fri 4/13/18 Fri 4/20/18
Project Staff, Project
Supervisor
4.4.4 Paint 8 days Fri 4/13/18 Tue 4/24/18
4.4.5
Install of interior
doors
9 days Mon 4/23/18 Thu 5/3/18 Project Staff
4.4.6
Kitchen
installation
2 days Fri 5/4/18 Mon 5/7/18 Project Staff
5 Closure phase 20 days Tue 5/8/18 Mon 6/4/18
5.1 Final review 7 days Tue 5/8/18 Wed 5/16/18 Project Manager, Project

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Sponsor
5.2
Prepare project
report
5 days Thu 5/17/18 Wed 5/23/18 Project Manager, Team Leader
5.3
Sign off the project
plan
8 days Thu 5/24/18 Mon 6/4/18
Finance Manager, Project
Manager, Project Supervisor,
Quality Manager

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7.1 Gantt chart and Milestones
7.1.1 Gantt chart
Figure 1: Gantt chart
(Source: Created by author)

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7.1.2 Milestones
Activities Expected start date
Milestone 1: Completion of initiation phase Fri 10/6/17
Milestone 2: Document review and revision Thu 11/16/17
Milestone 3: Completion of bids and contracts Tue 12/26/17
Milestone 4: Completion of site work Mon 5/7/18
Milestone 5: Completion of closure phase Mon 6/4/18
8.0 Cost benefit analysis
8.1 Budget of project
WBS Task Name Duration Resource Names Budget
0 Project plan on building of home 196 days $31,792.00
1 Initiation phase 25 days $6,160.00
1.1 Appointment of project team 3 days
Project Manager, Team
Leader
$840.00
1.2 Set up the project plan 5 days
Project Manager, Team
Leader
$1,400.00
1.3 Review the project stakeholders 7 days Project Manager $1,120.00
1.4 Conducting weekly meeting 10 days Finance Manager, $2,800.00

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Project Manager
1.5
Milestone 1: Completion of
initiation phase
0 days $0.00
2 Document review and revision 29 days $4,840.00
2.1 Review and finalize th plan 5 days
Project Manager, Team
Leader
$1,400.00
2.2 Finalize the project specifications 4 days Project Manager $640.00
2.3 Finalize the site plan 4 days Project Manager $640.00
2.4 Printing of construction drawings 10 days Site Supervisor $560.00
2.5 Approval of the revised plans 10 days $1,600.00
2.5.1
Approval of revised
specifications
10 days Project Manager $1,600.00
2.5.2
Milestone 2: Document review
and revision
0 days $0.00
3 Bids and contracts 28 days $4,928.00
3.1 Making copies of project plan 8 days
Project Manager, Site
Supervisor
$1,728.00
3.2 Making copies of specifications 6 days Project Manager $960.00

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3.3
Distribution of plans and
specifications
6 days Project Manager $960.00
3.4 Receiving and reviewing of bids 8 days Project Manager $1,280.00
3.5
Milestone 3: Completion of bids
and contracts
0 days $0.00
4 Site work 94 days $9,584.00
4.1 Clearing the lot 29 days $1,864.00
4.1.1 Excavating for foundation 19 days Site Supervisor $1,064.00
4.1.2 Location survey 10 days Quality Manager $800.00
4.2 Electricity rough in 8 days $640.00
4.2.1 Electricity installation 8 days Electrician $640.00
4.3 Roofing 14 days $2,240.00
4.3.1 Roofing paper installation 6 days Project Manager $960.00
4.3.2 Finishing of exterior 8 days Project Manager $1,280.00
4.4 Interior works 43 days $4,840.00
4.4.1 Floor finishes 20 days Team Leader, Project $3,200.00

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Staff
4.4.2 Install of floor 6 days
Project Staff, Quality
Manager
$720.00
4.4.3 Install of carpet 6 days
Project Staff, Project
Supervisor
$480.00
4.4.4 Paint 8 days $0.00
4.4.5 Install of interior doors 9 days Project Staff $360.00
4.4.6 Kitchen installation 2 days Project Staff $80.00
4.4.7
Milestone 4: Completion of site
work
0 days $0.00
5 Closure phase 20 days $6,280.00
5.1 Final review 7 days
Project Manager,
Project Sponsor
$1,680.00
5.2 Prepare project report 5 days
Project Manager, Team
Leader
$1,400.00
5.3 Sign off the project plan 8 days Finance Manager,
Project Manager,
Project Supervisor,
$3,200.00

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Quality Manager
5.4
Milestone 5: Completion of
closure phase
0 days $0.00
8.1.1 Cost of human resources
Resource Name Max. Units Std. Rate
Project Manager 100% $20.00/hr
Team Leader 100% $15.00/hr
Finance Manager 100% $15.00/hr
Project Sponsor 100% $10.00/hr
Quality Manager 100% $10.00/hr
Suppliers 100% $7.00/hr
Site Supervisor 100% $7.00/hr
Electrician 100% $10.00/hr
Project Supervisor 100% $5.00/hr
Project Staff 100% $5.00/hr

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8.2 Payback calculation
Month Total Investment Revenue Cumulative cash
flow
Payback
period
Development
phase
$
31,792.00
$
(31,792.00)
12.59
Month 1 $
20,000.00
$
(11,792.00)
months
Month 2 $
22,000.00
$
10,208.00
Month 3 $
24,200.00
$
34,408.00
Month 4 $
26,620.00
$
61,028.00
Month 5 $
29,282.00
$
90,310.00
Month 6 $
32,210.20
$
122,520.20
Month 7 $
35,431.22
$
157,951.42
Month 8 $
38,974.34
$
196,925.76
Month 9 $
42,871.78
$
239,797.54

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Figure 2: Chart of payback period
(Source: Created by author)
8.3 Discussion
It is seen that the budget and total investment of the project plan is $ 31, 792. Payback
period is estimated to determine the time in which initial cash outflow of the total investment i.e.
$ 31,792 is expected to recover from the cash inflow generated by investment. The formula used
to calculate the payback period is:
Payback period= Initial investment\cash flow per period
With use of this formula, the payback period is estimated as: 12. 59 months.
Development phase
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
-50000
50000
150000
250000
Payback Period
Revenue Cumulative cashflow

24PROJECT MANAGEMENT
9.0 Quality Assurance
The benefit of meeting with the quality requirements of the project includes of less
rework, low cost, increase into satisfaction of stakeholders as well as higher productivity. Quality
assurance is provided for cost efficiency, good quality of materials, schedule, entire project work
and allocation of human resources at scheduled time. Performing of quality control is used to
analyze the work of the project management processes. The products those are used to build the
home have negative impacts, and then the quality manager should inspect cost as well as
schedule variances. The quality assurance plan is shown into following table:
Process Description
Time management All the project team members are allocated to the project will record the
actual project time with use of timesheets. Weekly meetings are
conducted among the project manager as well as team members such that
all possible quality issues are discussed and it is mitigated on time.
Weekly meetings are conducted among the project manager as well as
team members such that all possible quality issues are discussed and it is
mitigated on time.
Cost management Weekly report on cost performance is issued that help the finance
department to lessen the project cost. Inspection and control chart is used
to analyze the project cost performance.
Risk management Risk register enables monitors and controls the risks status into project
plan.
Procurement All the project goods are procured from the external suppliers to review

25PROJECT MANAGEMENT
management and approve before the manager issues payment related to the invoice of
the suppliers.
Acceptance
management
The client approves the deliverables so that the team member marks it as
100 percent completed.
10.0 Recommendation and Conclusion
10.1 Conclusion
It is concluded that the project plan develops a new home into Australia for a family that
includes of a recycled infrastructure and landscaping. The project plan produces of deliverables
in order to achieve the project objective within 25 days of initiation. The project schedule
provides the process to identify the activity, duration and resource requirements. The duration of
the plan is 9 months with basement of ground floor as well as first floor. The scope statement
develops a detailed analysis of the product. This particular project plan documents all required
actions plus integrates and coordinates the plan. It defines of project execution, monitoring as
well as controlling with closing it.
10.2 Recommendations
Following are the recommendations suggested to the project manager for successful
completion of the building work of new home into Australia:
1. It is required to determine of final budget before entering into the process of building
of new home.

26PROJECT MANAGEMENT
2. The client should require understanding about the fund that bank releases to pay for
new home building.
3. The client should take time to understand polices of the council on building of new
home. As various councils have various interpretations on building code and
standards, therefore it is required.