Fundamentals of Project Management

Fundamentals of Project
Management

Contents
EXECUTIVE SUMARY.................................................................................................................3
INTRODUCTION...........................................................................................................................1
Part A - Project Management Consultancy Report..........................................................................1
Project Definition/Parameters and Risks (Question 1)....................................................................1
Importance of the iron triangle parameters in setting the Overall Project objectives and inter
relations between these parameters.............................................................................................1
Risk register with ten risks..........................................................................................................1
Planning and costs (Question 2)......................................................................................................2
Preparing a network diagram showing the critical path and planned duration of the project
along with computing the float on the non-critical tasks.............................................................2
Preparing a Gantt chart and determining the planned completion date.......................................2
Developing overall Project Budget and calculating projected Net profit for the contract..........2
Managing progress and spending (Question 3)...............................................................................2
Comparison between the planned progress against the actual progress using a Gantt chart.......2
Producing a revised Gantt chart and identifying the new completion date.................................2
Earned Value Analysis and Acceleration (Question 4)...................................................................3
Creating an Earned Value Analysis table....................................................................................3
Creating a projected completion date..........................................................................................3
Recommendations........................................................................................................................3
REFERENCES................................................................................................................................4
Part B - Reflective Essay.................................................................................................................5

EXECUTIVE SUMARY
The project report summarizes about detailed information regards to different types of
aspects regards to effective project management. The complete project is based on a
company which is automation futures (AF) PLC. This report also gives an exhaustive
description of the project's problems and difficulties and factors for total assessment.

INTRODUCTION
Project management is a process of planning and executing a plan which is required to be
controlled and directed effectively (Burke, 2013). This procedure is based on a set of aims which
are directly aligned with the completion of the project. The main aim of this report is to develop
an understanding regarding project management and various challenges which can be faced
while managing a project. For this purpose, a case study scenario is selected which is related to
an extensive project management task. The case study is based upon a fictional organisation
“Automation Futures”. This company is a technology contracting and consultancy company
which specialises in Automation and New products. This company is planning to undertake a
project a Train manufacturing process.
This report is divided into two sections, part A will be a consultancy project and on the other
hand part B will be a reflection report. In part A, project of the selected company will be
managed using iron triangle parameters and developing risk register. In this section, costs of the
project will also be planned along with development of Gantt chart and project budget. Lastly, in
this section Earned value of the project will also be computed. In the second section of this
report, a reflection is developed which will include challenges faced while completion of part A
of this report along with identifying characteristics of a good manager.
Part A - Project Management Consultancy Report
Project Definition/Parameters and Risks (Question 1)
Importance of the iron triangle parameters in setting the Overall Project objectives and inter
relations between these parameters
AF PLC is a large scale company which is planning to develop a construction and
automation plan of TTF, a train manufacturer. As a project manager of AF PLC, it is important
to analyse the various iron triangle parameters while setting the overall project objectives. These
iron triangle parameters are scope, time, cost and quality. Each of these parameter or constraint
plays an important role while managing project and its objectives. All these parameters are
analysed below along with their importance:
1

Figure 1
Cost:
The first parameter of iron triangle is the cost. This parameter is considered as the financial
constraint of a project management which is related with the budget of a project. This parameter
of costs is related with the resources which are needed to be procured for the completion of
project. These resources can be both employees for the project and raw materials. In a project,
such costs can be variable, semi fixed and fixed, depending upon the nature of project. The
project AF Plc. is related with developed factory plant for TTF. As a project manager of AF Plc.,
it is important to ascertain all the costs which will be engaged in the completion of this project.
The constraint of cost is important as it project a budget restriction following which project
is required to be completed. Also, this parameter provides the lowest and highest ranges
available so that appropriate can be selected. This also helps in managing the cost fluctuations
throughout the project.
Time:
Time or schedule is the estimate amount of time which will be required to complete the
project. This parameter of the project management helps in ensuring that the project is either
completed before time or on time. As a project manager of AF Plc. handling the project of TTF,
it becomes even more crucial to manage the schedule as, if the project of TTF is not competed on
given estimated time then AF Plc. has to pay a penalty. For this Gantt chart and networks
diagram techniques will also be used (Slack, 2015).
2

Scope:
This is the third parameter of project manager which defines the tasks and activities
which are required to be done by the employees of project. This parameter is important to
manage a project as it helps prioritising the task and also assist in optimally utilizing the
resources.
Quality:
The fourth and most important parameter is quality. It is important to ensure delivery of
promised quality in the process of project management (Kerzner, 2017). As a project manager of
AF Ltd., it becomes even more important to maintain the quality of the project otherwise
rectification of any faults will levy additional cost for the company.
All the above parameters are related to each other. As in situation of elimination of time no
other parameter can be done and in case of elimination of quality, no parameter will be worth
delivering. By this way, each constraint is related to each other.
Risk register with ten risks
Risk Category of
the risk
Likelihood
of
occurrence
of the risk
(Out of 5; 5
being high
likely
occurrence)
Impact of
the risk
(Out of
5; 5
being
high
impact)
Causes Mitigation
strategies
1 Increased
costs rate of
labour
Financial 3 3 Changes in labour
wage government
policy and
variation in
labour rate by
trade union.
Hire labour on
contract basis
with a uniform
labour rate
(Ojiako and
et.al, 2011).
2 Increased cost
of raw material
Financial 3 3 Environmental
factors, higher
Store all
required raw
3