Fundamentals of Project Management

This document provides an overview of the fundamentals of project management. It covers the importance of the iron triangle parameters, risk management, and the characteristics of a good project manager. The document also includes a case study on AF PLC and their construction project.

Fundamentals of Project
Management

EXECUTIVE SUMMARY
AF Plc is getting the project of railway from its clients for one year. The main work is
related to application of effective project management techniques for completion of work. The
current report has two different parts A and B. Part A covers the different activities related to
project such as Gantt chart, network diagram, EVA and risk resister. On the other hand, part B
covers reflection about challenges facing throughout the module and producing of project. This
also has further description about characteristics of a Good Project Manager.

INTRODUCTION
Project management is the overall exercise of managing project in respect to getting
desired results. This involves the application of processes, methods, skills, knowledge and
experience in direction guiding staff members working over different activities. The main aim
with the performance of this exercise is to complete the whole project on time in accordance to
the same manner as decided earlier. There is huge support of this in maintenance of project
quality and regular improvement of staff performance. This happens because involves the
performance of tasks related to risk analysis, stakeholder analysis and financial analysis that help
in building of appropriate strategies accordingly. The future impact of this ascertained in the
form of effectively completed different activities because aid in timely removal of deviations and
improving existing level of skills (BANO, 2017). It is the duty over project manager that must
adhere all the processes effectively and perform tasks sincerely to motivate all others that
provide their full efforts in getting of similar results as determined at the time of planning. The
large number of benefits associated with exercise of project management like timely completion
of project, controlling of expenses, completed within determined amount of budget and
enhancement of staff skills. The main aim of this project is to ascertain that how effective level
of project management exercise help in completing overall project on time.
This project has two parts A and B. The aspects covering in part A includes discussing
importance of the various iron triangle parameters in setting the Overall Project objectives and
determining interrelation in between each other, creation of risk register that AF PLC are likely
to face within a construction project of this nature, preparation of a network diagram showing the
critical path and planned duration of the project, preparation of Gantt chart for the project,
detailing overall Project Budget and the projected Net profit for the contract, using of Gantt chart
to determine planned progress for each task, creating of an Earned Value Analysis table showing
ACWP, BCWP and BCWS values for every project task and recommendation upon the options
should be accepted and declined. Whereas, part B includes reflective essay describing challenges
and difficulties identified in producing of assessment or throughout the module along with clear
level of personal development goals.

PART A: AF PLC Case Study
1. Project Definition/Parameters and Risks
(a). Discussing importance of the various iron triangle parameters in setting the Overall Project
objectives and determining interrelation in between each other
The main work of project manager is to manage all different aspects related to a project.
Currently, iron triangles are important determinants of a project that will help the manager to
effectively manage the future activities related to same. The four different parameters attached
with iron triangles are cost, time, scope and quality. It is important for a project manager to gain
information about these all parameters because aid in handling of other associated project
activities effectively. The knowledge about these further having importance in exercise of project
planning and building of strategies so bale to complete the work on time without getting stuck on
mid level works (Bilovodska and et al., 2017). The detailed level of explanation in relation to all
parameters of iron triangles is provided below;
Cost: This is about the calculation of total projected cost related to a project. This is the
important exercise which includes preparation of costing budget in relation to a different project
activities or deliverables so able to finish the whole project within such determined amount.
Here, all the costs that will be incurred in project is added in the total cost of a project. It means
all the fixed and variable costs are included in the total cost of a project. The main reason behind
the occurrence of such costs is arrangement of project resources. The different resources related
to a project includes technical equipments, materials and skilled labourers. This is one of the
important constraint of project management exercise that will aid in completion of whole project
within specified limit of amount. This has importance in tracking and limiting of expenses and
selection of alternative which is cost effective in nature. This will further improving the project
manager's negotiation ability because allocated budget limits the amount of expenditure and
stimulate to find the option which is appropriate as per the defined limit. End last, this will help a
project manager to gain significant amount of profits from the completed projects (Heagney,
2016).
Time: This is about the calculation of time that needed to complete the whole project
successfully. This includes the allocation of time period to each individual activity differently so
allocate the resources accordingly and able to complete the activity or whole project within

stipulated period of time. It is the duty over project manager that adhere these time limits and
perform functions accordingly. Here, project is about the implementation of new engineering
Automation plant within AF Plc. So, project manager has the duty to manage time effectively
where simultaneously uses Gantt chart, timescales and network diagram as tools for effective
level time management. This is important to manage because delaying in completion attracts
penalty that reduces the ability to earn significant amount of profits from same (Hopkin, 2018).
Scope: This is about ascertainment of associated aspects and objectives attached with a
project. This is the third determinant of triangle which is further known as third side. The main
aim behind determination of scope is to identify the impact of associated activities and resources
which are needed to perform working effectively in respect of attaining desired objectives. The
main aim of AF Plc is to implement new engineering automation plant. Here, project manager
has the duty to identify the associated aspects so able to effectively complete project on time and
within budget. This is important because aid in gaining bonus of early work completion (Jamali
and Oveisi, 2016).
Quality: This is about ascertainment of quality of project deliverables. It is important to
determine and maintain because aid in completion of tasks as per the requirements of client. In
case of the AF Plc project, this has importance because any kind of last minute issues resultant
into damages fro which needed to pay fines in future. Also, last stage improvements require huge
amount of time and money that automatically finishes the reliability of project and made the
whole scenario inappropriate for an organisation (Kamaruding and et al., 2019).
It is determined from the analysis of all above constraints that all related to each other
and having not possible to deliver the successful project without leaving anyone behind. This
means if not able to attain efficiency in any constraint then whole project will break down.
(b). Creation of risk register that AF PLC are likely to face within a construction project of this
nature
It is important to prepare risk register as this will help in determining associated risks
with project along with their nature. This has importance because further aid in building of
mitigating measures from where possible to gain desired results. Currently, AF Plc is working
over the large scale of project of TFF Plc where possibility attached regarding occurrence
different nature risks. So, their earlier determination help in preparation of working plans and

preventive measures so able to attain desired objectives in future (Kuzminykh and et al., 2020).
The risk register in relation to all associated risks with project is presented below;
Risk Name Reasons behind
the occurrence
of risks
Probability of
risk occurring in
future
Impacts of risks
over project
activities
Preventive
measures or
mitigation
strategies
Lack of funds This risk will
arise in project
because of the
ineffective level
of fund
distribution
without
considering any
market research
and resources
information. The
another reason
behind the
occurrence of this
risk will be
limited number of
sources to raise
funds (Nicholas
and Steyn, 2017).
High This will have
high level of
impact as not
possible to
continue the
operations
without sufficient
amount of funds
The strategy
which will work
in respect of
mitigating this
type of risks is
identification of
different sources.
This will help in
ascertaining extra
amount of funds
in case of getting
additional
amounts.
Lack of raw
materials
The main reason
behind the
occurrence of this
is inappropriate
knowledge
High This will also
have high level
impact over the
project activity
because not
To mitigate this
needed to focus
over arranging
relation with
multiple level of

regarding the
tasks and
activities which
are needed to
perform for their
successful
completion. The
another reason
due to which this
this risk will arise
is about limited
contacts in market
for procurement
of raw materials.
possible to
continue the work
without
appropriate
amount of
resources
suppliers. This
will provide an
opportunity to get
resources on time
and continuing
work effectively.
Negligence of
employees
The main reason
behind the
occurrence of risk
is inability of
project manager
to manage the
activities of staff.
The another
reason behind the
occurrence of risk
that employees
are not satisfied
with the assigned
duties and not
performing with
good level of
engagement
Medium This is having
medium nature of
impact because
can be mitigated
with the
appropriate nature
of actions from
project manager
side
Project manager
has to focus over
monitoring of
work and guiding
at the time of
need.

(PARK and
CERTIFICATE,
2016).
Lack of
communication
The main reason
behind the
occurrence of this
risk is lack of
communication
tools. The another
reason that will
have possible
amount of impact
over
communication
aspect is cultural
diversity of staff
members because
this will resultant
into language
differences.
Medium This has medium
level of impact
over project
activity because it
just delaying the
performances.
In this regard
needed to focus
over arranging
effective
communication
tools. Also, the
aspect that will
help is to build
equal ethos that in
continuing
operations with
equality.
Technical risk The main reason
behind the
occurrence of this
risk is use of
obsolete
technology
through which not
possible to
perform tasks and
gaining
Medium This also has
medium level of
impact over
project exercises
because it reduces
the speed of
working.
Focus over
regular training of
employees so
they able to work
with any
technology.

appropriate
results. The
another reason
that will arise this
risk is frequent
level of changes
in technology.
This impacts the
ability of project
manager to shift
continually to
different
technologies
because this will
improve costing
and negatively
impacts the
performance of
employees
(Poston and
Richardson,
2019).
Natural calamity The main reason
behind the
occurrence of this
is happening of
natural disaster
that leads
negative impact
over project in
form of work
Low This has low level
of impact because
there is low
possibility of
occurrence. If
occurred then the
impacts totally
depends over the
Already fixing
alternative
working places
and team that will
help in
performance of
work without any
interruption.

stoppage or loss
of resources.
nature.
Labourers strike The main reason
behind this risk is
not fulfilment of
the needs of
employees by
project manager.
The another
reason that some
kind of partiality
is doing by
project manager
in performance of
actions or
assigning of
duties (Pokrop,
2017).
Low This has low level
of impact due to
the low
possibility of
occurrence. In
case, if occurred
then it will have
significant level
of impact.
In this regard,
project manager
has to focus over
identifying each
one's need and
motivate on
regular basis so
they perform
work without any
interruption.
Accident at site The main reason
behind the
occurrence of this
risk is working
with lack of care.
There are many
other reasons that
leads this kind of
risk in project
such as lack of
guidance from
project manager
Low This has low level
of effect over
working of
project because
can be performed
work with the aid
of someone other.
In this regard,
needed to adhere
all the polices of
government and
use effective
safety tools that
will help in
protecting the
health of workers
at the time of
working at
workplace.

side, lack of tools
and lack of skills
among
employees.
Lack of time The main reason
behind the
occurrence of this
is effective
distribution of
tasks to
employees. The
another reasons
will be lack of
resources, strike,
lack of
knowledge,
project manager
incapacity and
lack of funds
(Damnjanovic
and Reinschmidt,
2020).
Medium This will have
high level of
impact over
quality of work
because lack of
time not allows to
perform work
with perfection.
This also leads
large number of
mistakes and
operational issues
that further
improves
expenditure.
Project manager
has to focus over
completion of
tasks on its own
guidance and use
of alternative at
the time of need.
Lack of expertise The main reason
behind the
occurrence of this
risk is non
performance of
exercise related to
analysing project
tasks. This further
Low This also having
high level of
impact over
quality of work
because expertise
level help in
completion of
tasks in
Project manager
ha s to identify
the skills and
knowledge of
each and further
provide training
to all accordingly.
This will help in

leads the selection
of inappropriate
nature of
employees that
are unable to get
appropriate
amount of results.
qualitative
manner.
improving their
skills and
knowledge along
with performance
ability.
2. Planning and Costs
(a). Preparation of a network diagram showing the critical path and planned duration of the
project
This is network diagram of AF Plc. This depicts the different paths on which needed to
work to complete work. Generally, critical paths does not have floats but in present case the
paths which are not critical does not have float because of no difference between late and early
finish time (Prascevic and Prascevic, 2017).

(b). Preparation of Gantt chart for the project

It is visible from the above Gantt chart that project will start on 8 July 2019 and going to
finish on 14 August 2020 (Sipes, 2019).

(c). Detailing overall Project Budget and the projected Net profit for the contract
Working notes:
Bonus for early completion: Amount in pounds
Number of days of early completion 42
Bonus for each day of early completion 50000
Total bonus 2100000
All the above activities are used to develop budget of TTF's project that further includes
all fixed expenses. Here assumed that cost of procuring contract labour and external PM team
included in fixed cost. The budgeted cost of project is 13.85 million. The main task is
manufacturing of automation equipment (Teller, 2018).

3. Managing progress and spending
(a). Using of Gantt chart to determine planned progress for each task
Gantt chart having only tasks and % complete columns:
Comparison table:

(b). Entering actual progress values for progress from the revised Table and producing of a
revised Gantt chart along with identification of new completion date

There are some delays in project activities. This resultant into shifting of completion date
from 14/8/2020 to 2/10/2020. This will also having significant impact over profitability because
work completed after 25 September and have to bear penalty.
4. Earned Value Analysis and Acceleration
(a). Creating of an Earned Value Analysis table showing ACWP, BCWP and BCWS values for
every project task
EVA table:

(b). Creating of a projected completion date for the entire project using the Estimate at
Completion (schedule) method derived from the Earned Value Analysis
Projected completion date using EVA:
ECD = start _ date + ED
8th July 2019 + ED
ECD = 02 October 20
Projected final spend using EVA:
Estimate at completion (EAC) = Actual cost (AC) + ((Budget at completion (BAC) – Earned
value (EV)) / (Cost performance index (CPI) * Schedule performance index (SPI)))
Estimate at completion (EAC) = 2,32,40,000 + (2,92,00,000 - 2,00,05,000) / 0.86 * 40.01
2,32,40,000 + 9195000/ 0.86 * 40.01
32435000 / 0.86 * 40.01
32435000 / 34.4086
= 942642.24
Comparison: The date planned fro completion was 14 August 2020 but the current
estimated date is 2 October 2020. This is completed after 25 September 2020 so have to pay
penalty of 7 days as £700k. The planned fixed cost is 48.7 million pound while cost incurred at
completion is 94.2 million pounds.
(c). Recommendation upon the options should be accepted and declined
Five options on the basis of that AF Plc able to reduce time period by spending additional
amount of money at different activities to speed up the project completion. All these options are
evaluated below on the basis of cost and attached benefits. Table in respect to same is presented
below;

All the costs are calculated on the basis of cost/week i.e. cost divided number of weeks.
The option which is best in nature is P. this is so because the cost attached is just £ 17.5K per
week. This minimum as compared to all. Here, attached bonus with every opening period can not
not ignored. This was the reason to attain profitability total cost is divided by total bonus amount.
This further depicts that Task G attached with maximum level of profitability i.e. £ 645K. So,
Task G will be selected as acceleration option for completion of project before time. It is
recommended to AF Plc that select option G to complete the project (Zakharchenko and et al.,
2020).
PART B: Reflective Essay
There are large number of difficulties faced by me throughout the module and producing
of assessment. During the module learning, I faced the issues in understanding of multiple
aspects. Also, I was feeling confused because mixing up the different contexts. This makes the
whole scenario imperfect where not able to get the effective results. The impact of same was
ascertained over exercise of current project production. Here, I was unable to effectively use the
project management software. Also, I am unable to understand that how critical path help in
selecting best path of of starting project first. There are many other issues faced by me in
different determinants such as budgeting of project as not able to understand about resources and
their associated cost. This has negative end impact where not able to complete project on time.
This depicts that I lacked in management and learning skills. This is so because I was unable to
complete the project on time and also not gained knowledge respect of tasks which were studied
back to back. Finally, I decided there is need regarding development of own personality that aid
in completion of tasks in future. Here, I have to work over my existing skills and traits along
with adding of some new in character. The main is management and learning skill. The
development of both will help in future to effectively learn multiple things along with handling
of different tasks appropriately. The good project manager is one who has combination of
effective skills and traits. The skills which are needed to have by good project manager includes
management, conflict resolution, communication, learning and leading. On the other hand, the
traits which are needed to have by good project manager includes passion, honesty, unbiased and
innovative. All these help a project manager to effectively handle all activities and guide
employees in right direction towards completion of all desired objectives.

CONCLUSION
It has been concluded from the report that exercise of project management is important in
direction of getting positive results. This will providing an opportunity to effectively manage all
different activities by focusing over all alternative solutions so able to complete in same manner
as planned initially. This aid in development of strategies so able to minimise the impact of
contingencies and effectively guide others in performance or completion of their individual
tasks. This will help the project manager to simultaneously present as leader in front of all and
guide towards positive direction of gaining success along with effective development of skills
and traits. There are many advantages associated with the exercise of project management
includes budgeted completion of project, improvement of staff skills, building of great team,
timed completed of project and getting of desired level of results. This enhanced level of
experience will aid a project manager to successfully guide others in future projects and attain
same level of desired results as decided.

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