Fundamentals of Project Management

This report provides a deep study on project management, covering all essential aspects and the importance of functions in an organization. It includes a case study of Automation Futures and reflection on the experience. Topics covered include parameters and risks, scheduling and expenditure, network diagram, Gantt chart, and net profit analysis.

Fundamentals of Project
Management

EXECUTIVE SUMMARY
This report is comprises a deep study on project management which covers all the essential
aspect of project management and help in identified importance of functions of project
management in organization. This report is prepared on the basis of case study of Automation
Futures. On the other part this report included a reflection which describe summary of
experience and problem faces during formulation of this report
Contents

EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1. Parameters and Risk of the company...........................................................................................4
(a) Parameter of Iron Triangle....................................................................................................4
2. scheduling and Expenditure.......................................................................................................10
(a) Network Diagram.................................................................................................................10
(b) Gantt Chart...........................................................................................................................11
(c) Net profit of the contract......................................................................................................13
3. Managing progress and spending:.............................................................................................14
(a.)..............................................................................................................................................14
4. Earned Value Analysis and Acceleration:.................................................................................20
(a.)..............................................................................................................................................20
(b.)..............................................................................................................................................23
(c.)..............................................................................................................................................23
PART B.........................................................................................................................................23
Reflective Essay.........................................................................................................................23
CONCLUSION..............................................................................................................................25
REFRENCES.................................................................................................................................26
INTRODUCTION
Project management is art of managing all the activites, task in order to achieve goal of
business organization. It is a process of implementing recording, analysing, and controlling

activities of particular definite task. In order to understand the concept of project
management Automation Futures has been taken, this company started new project. This
report covers all the function and activites taken during the management of project , how
managers deal with problem and analysis risk uses of project management technique for
decision making approach and reflection of overall experience has been define clearly.
TASK 1
1. Parameters and Risk of the company
(a) Parameter of Iron Triangle
.
Management department of Automation Future will be used iron triangle and project
management triangle model for their project. An organization success is totally depend on
ho effectively the organization will use their scar resource specially financial resource. For
statement new project of technology time, cost of establishing project, quality of the project
and time duration are some essential constraint used in project triangle. It is necessary to use
methods and technique to manage all theses factor in an effectiveness way to achieve goal of
the project. Quality of this project can be maintain by formulating budget for this project..
For completing project of the TTF PLC following are the constrains of this project:
.
When project of the organization has been started on the basis of fixed cost and they are flexible
on deliver basis then it is the responsibility of the manager of done their project activity an tasks
on the recommendation of their consumer in order to fulfill their needs and competent project
according to their time.
Fixed time: When customer of the organization ask regarding the project then it is the
duty of the mange to fulfill the project and task on the time of the completion date or before the
completion of the project, All the activites and task will be performed in a systematic
manner(Ding, 2016).
Fixed Scope: Quality of a project can only be maintain when the fixed cost and set 0f
deliver can be free and they will be able to accept the changes during the project activities..

Fixed cost and scope: During the period when the fixed cost of the project and set delivered
has been expected ten in this situation risk of the project can be
Fixed cost and time: Project manager take decision regarding taking decision of fixed cost in
this phase flexible set of policies useful. For long term project prices and time of completion of
project become constant (Quresh and Kang,2015).
Fixed time and Scope: In this situation when time and cost of the project is free then the
value of the expenditure and cost incurred in project is not consider as constant value. In this
situation the cost which will be unexpected as been reduced and can be control by formatting
effect policies
Illustration 1: Iron Triangle Parameters, 2019
(b) Risk Register
Risk Management Register for XYZ Project
Identification of risk Assessment Response
Monitoring and
Control
Ref Even Reason Effect Pro Ef P Po Trigger Action Resp Revi Date of

eren
ce t bab
ility
fec
t
x
L
lic
y
onsib
le
perso
n/s
ew
Freq
uenc
y
status
and
general
notes
1 Short
age
of
finan
cial
sourc
es
Not a
good
image
in
market
and
financi
al
recessi
on in
econom
y and
also
change
in
budget
polices
Time
Period
is very
short
for
particu
lar
project
4 5 20 Mi
tig
ate
Main
reason
of lack
of
findings
is that
sponsors
of the
project
are
unable
to
collect
funds
and
effective
ly
commun
icate
financial
instituti
on to
provide
them
funds
for the
project.
Manager
should be
conduct
another round
for collection
of funds from
various
source and
use effective
communicati
on technique
to attract their
stockholder
for fund
Proje
ct
Mana
ger,
Exec
utive
Spon
sor
Mon
thly
23.11.1
6
Registe
r
updated
.
Alternat
ive
funding
sources
identifi
ed

2 Work
ing
on
budge
t
proce
ss
Organi
zation
suffers
from
high
losses
due to
unexpe
cted
events.
Not
suffici
ent
profit
genrat
e by
the
busine
ss
organi
sation
5 6 30 Go
od
est
im
ati
on
incompe
tent
estimate
d by the
project
manager
For future
events
manager
should be use
enviromental
scanning tool
for
identifying
and estimate
Proje
ct
mana
ger
and
empl
oyees
.
Mon
thly
27/11/1
6
3 Given
time
Busines
s
organis
atios
are fail
in
perfor
ming
there
tasks in
given
time
period
it will
effects
project
compet
ion
Manag
ers
failed
to
achive
d
target
6 4 24 An
aly
sis
Lack of
experien
ce
manager
s predict
wrong
time
forcastin
g in
each
activity
of
project
Business
organization
need to verify
each task
after their
complition
and check it
with standard
time and
actual time
taken period
and formulate
polices to
reduce
difference.
Proje
ct
Mana
ger
After
com
pleti
on of
an
activ
ity
29/11/1
6
4 Happ Unplan Wasta 5 5 25 Mi Manage Formulate Proje Whe 02/12/1

ening
of
unpla
nned
event
ned
activite
s and
event
arrived
due to
lack of
researc
hing
skills
ge of
time,
workf
orce
get
destru
cted
tig
ate
the
eff
ect
r of the
project
unable
to
predict
future
estimati
on
effective
policies to
overcome
from the
negative
effect.
ct
mana
ger
and
team
mem
bers
n
requi
red
6
5 Lack
of
speci
alizati
on
Busines
s
organiz
ation
have
does
not
properl
y
formula
te plan
thus
they
did not
have
clear
vision
regardi
ng the
project.
Workf
orce
get de
motiva
ted
which
will
effect
on the
quality
of
their
skills
and
project
.
4 5 20 Fo
rm
ula
tin
g
ne
w
pr
oje
ct
fil
es
Manage
r of the
project
fails to
effective
ly plan
and
formulat
e
attractiv
e project
completi
on
strategy.
Analysis and
take revise
for each
activity to
reduce the
future
uncertainties
of these type
of events
Proje
ct
mana
geme
nt
team
With
each
activ
ity
02/12/1
6

6 Ignor
ance
Cannot
focus
on time
duratio
n of
comple
tion of
each
activity
Projec
t
compl
etely
fail
5 4 20 Re
qu
ire
d
co
nsi
de
rat
io
n
ne
ed
s
to
be
pr
ov
ide
d
Team
member
of the
project
of this
business
organiza
tion can
not
provides
and
focus on
completi
on of
task.
Manager
needs to
focus on that
each project
task and
activites
should be
completed on
time.
Team
mem
bers
of the
proje
ct
For
each
activ
ity
05/12/1
6
7 Issue
relate
d to
techn
ology
Due to
lack of
moneta
ry
resourc
e
compan
y
unable
to
purchas
e
Effect
on
quality
of the
project
6 5 30 Ch
ec
ki
ng
tec
hn
ica
l
via
bil
ity
Manage
r of the
compan
y cannot
estimate
regardin
g these
technolo
gies.
Manager of
the
organization
should
formulates
strategies to
compete
project within
the given
time period
and uses of
available
Risk
mana
ger
Mon
thly
07/12/1
6

technic
al
equipm
ent.
resources
8 High
cost
Unrequ
ited
activite
s and
expens
e
incurre
d on
wastag
e
activite
s.
Comp
any
requir
e more
financi
al
funds
to
compl
ete
project
and.
4 4 16 Ac
cu
rac
y
Manage
of the
entity
fails to
control
the
unethica
l
activites
and
expense
incurred
within
the
organiza
tion
Formulate
effective
policy and
work
according to
the estimated
fund.
Proje
ct
Mana
ger
Quar
terly
15/12/1
6
9 Lack
of
mana
gerial
skills
Compa
ny
unable
to
proper
make
plan
related
to
project
High
cost
incurr
ed in
compl
etion
of
project
rate of
profita
6 5 30 M
an
agi
ng
ch
an
ge
Due to
lack of
expertis
e and
manager
ial skills
manager
unable
to
formulat
Tale
suggestion
and guideline
before
starting of
project, hire
skilled
manager.
Mana
geme
nt
team
Mon
thly
25/12/1
6

bility
is low.
e
effective
project
plan..
10 Misu
nderst
andin
gs
Main
reason
of
conflict
is
organiz
ation
not set
up
commu
nicatio
n
channel
It will
effect
in
organi
zation
as due
to
misun
dersta
ndings
conflic
t issue
arise.
5 5 25 Ef
fec
tiv
e
co
m
m
un
ica
tio
n
ch
an
nel
Manage
ment
departm
ent of
the
organiza
tion
unable
to
establish
ed a
strong
channel
of
commun
ication
at each
sage
ofhirerc
hy
Need to
formulated
policies
which will
help in take
decision and
maintain
relation
between all
the human
resource..
Mana
geme
nt
and
team
mem
bers
At
each
stage
of
the
proje
ct
25/12/1
6
2. scheduling and Expenditure
(a) Network Diagram
Network diagram is a technique used in statistical as well as project management approach to
represent all the activites in a graphical format. AF PLC used this method to analysis all the
procedure of activities. This diagram help in allocation of various activites and task during

the project. The above chart has been prepared on the basis of series and boxes in which
various activities has been defined. This technique of project management help in find out
activities and sequence which help in finding way through which organization can achieve
their target within short period of time ( Crisp and Hosken 2016).
(b) Gantt Chart
This chart has been used by the organization to identify time taken by each activity of this
project. TTF PFC has been specified timing of each project taken by the organization. Gant
char method has been appli3ed to determining whether organization has been able to fulfil
their project time on the given time period or not. In this case study AF PLC had been taken
initiative for a project which will b started on 6th July 2019 and date of completion of this

project will be 25th September 2020. With the use of Gant chart diagram manager coil easily
identify that company is able to gain profits and they have capabilities to complete this
project take before the competition date.

(c) Net profit of the contract
In this project for calculation of the net profit of the organization, manager cut the cost of
allocation of budget to gain profit. The AF PLC has been completed this project before its
completion data thus they get some advantage and gain profit . It will also help in achieving
goodwill for the organization. The amount of bonus will be gained is 13.85 million t will be
treated as bonus and shown as revenue for the organization. The organization competed their
take before 81 days of the closing date of the project thus they get it as revenue. It will also
show the skills and capabilities of the workforce and team member of the AF PLC .
Computation of total revenue
Particulars Value in millions(£)

Projects budgeted price 58.5
Profits generate through completion of project earlier. (81
days * 50k) 4.05
Total profit 62.55
-: Cost of the project 48.7
Net profit 13.85
3. Managing progress and spending:
(a.)
Gantt chart has been used as it is one of the easiest ways to produce, monitor and utilize
all the information related to given project. It will help in providing information regarding
time valuation of activites, through which managers can systematically manage and
coordinate each activity of the project. Gantt chart issued for manager to determine
regarding activites each task more time, unnecessary activity, risk it will also help in
environment scanning as well as analysis of how much cost increase or way through which
organization can achieve their target. It wills also useful or providing knowledge regarding
coordinating of team member .This technique of project management has been change cont
usually as time change needs demand and activity project status also changes. to update all
the parameter this chart has been change. This Gantt char help manager to connect whit their
organization also it can define types of manage and sources need to fulfilment of each
activity of the organization.
From this table it has been identified that task PI, A, B, C, has been completed before
completion of 16 weeks of the project but on the other side Task D, F, G and H are take time
and progress rate of their task will be 80 %, %, 35 %, 35 % and 50 % . Due to late
completion of theses activites. It will result in decreasing in profit as expenditure on active
incurred. Following table is formulated to define variation between planned and actual
expense incurred.

Table showing comparison between Planned and actual expense
Task Particular
Total Actual
Expenditure
incurred to date
(£ m)
Planned Total
Expenditure up to
date (£ m)
Variations
(£ m)
PI Starting of project 0.2 0.2 0
A
Cost of commission to
designing factory 2.91 2.8 0.11
B
Cost incurred on automation
designing 1.72 1.6 0.12
C
Commissioning outlining
Design-Inverter Product 1.53 1.5 0.03
D Detailed designing of Factory 4.08 3.8 0.28
E
Detailed design of Automation
Equipment and Inverter
Product 5.97 5.4 0.57
F
Cost of developing software for
automation 1.32 3.4 -2.08
G
Cost of production and
equipment 2.76 6.5 -3.74
From this table it has been identified that task PI, A, B, C, has been completed before
completion of 16 weeks of the project but on the other side Task D, F, G and H are take time
and progress rate of their task will be 80 %, %, 35 %, 35 % and 50 % . Due to late
completion of theses activites. It will result in decreasing in profit as expenditure on active
incurred. Following table is formulated to define variation between planned and actual
expense incurred.

From the above analysis it has been identified that at the time of project started there will be
no variation it will result n that project started on the estimated cost of . 2 million . In task F
and G the project structure has been changed it show negative sign , and the cost of these
task are below tan the expected cost incurred during these activities on the other side the
organization take time during completion of task a, b, c, d and e, theses shoe positive sing
which are not good symbol,, theses are the man causes of delaying and increasing in cost of
completion of the whole project.
B) After the revision of forecasting of the whole project the budget of this project will be
attain at 49.885 million pounds. Due to revision of the budgeted activities the profit will be
negatively affected as it will b decline by 1.185 million pounds. Following are the table
which describe revise data.
Task Description
Duration
(weeks)
Fixed
costs £M
X Project Initiation 1 0.2
A Commission Design of Factory 3 2.8
B Commission outline Design of Automation Equipment 2 1.6
C Commission outline Design-Inverter Product 1 1.5
D Detailed design of Factory 8 3.8
E
Detailed design of Automation Equipment and Inverter
Product 8 5.4
F
Commission and develop Software for Automation
equipment and Inverter Product 13 3.6
G Manufacture Automation equipment 7 7.55
H Manufacture Modular Factory Units 9 4
I Transport and Construct Modular Factory on site in Germany 6 3.425
J Test Automation equipment. 6 2.2
K Transport Automation equipment to New Factory 4 2.5
L Install Automation equipment in New Factory 6 3.1
M Install Software for Automation equipment 4 2.2
N Install software for Inverter Product Line 4 2.675
O Test Inverter Production line 6 2.1
P Handover and Train TTF engineers in Automation process 4 1.235

and Product production
PC Project Close out 0 0
Total 49.885

4. Earned Value Analysis and Acceleration:
(a.)
Earned Value and its use in Cost Control.
TASK BCWS ACWP %Progress BCWP
Planned Value Actual Cost Earned Value
PI $2,00,000.00 $2,00,000.00 100% $2,00,000.00
A $28,00,000.00 $29,10,000.00 100% $28,00,000.00
B $16,00,000.00 $17,20,000.00 100% $16,00,000.00
C $15,00,000.00 $15,30,000.00 100% $15,00,000.00
D $38,00,000.00 $40,80,000.00 80% $30,40,000.00
E $54,00,000.00 $59,70,000.00 100% $54,00,000.00
F $34,00,000.00 $13,20,000.00 35% $11,90,000.00
G $65,00,000.00 $27,60,000.00 35% $22,75,000.00
H $40,00,000.00 $27,50,000.00 50% $20,00,000.00

BAC $2,92,00,000.00 $2,32,40,000.00 $2,00,05,000.00
ACWP : Actual Cost of Work Performed
BCWP : Budgeted cost of Work Performed
BAC : Budget At Completion
BAC $2,92,00,000.00
PV $5,00,000.00
AC $2,32,40,000.00
EV $2,00,05,000.00
Cost Variance (CV = EV - AC) -$32,35,000.00
Cost Performance Index (CPI = EV/AC) 0.86
Schedule Variance (SV = EV - PV) $1,95,05,000.00
Schedule Performance Index (SPI = EV/PV) 40.01
Cumulative Planned
Value (PV)
200
000
300
000
0
460
000
0
610
000
0
990000
0
153000
00
187000
00
252000
00
292000
00
Actual Cost and Earned Value
Cumulative Actual Cost
(AC)
200
000
311
000
0
483
000
0
636
000
0
104400
00
164100
00
177300
00
204900
00
232400
00
Cumulative Earned
Value (EV)
200
000
300
000
460
000
610
000
914000
0
145400
00
157300
00
180050
00
200050
00

0 0 0
Project Performance Metrics
Cost Variance (CV =
EV - AC) 0
-
110
000
-
230
000
-
260
000
-
130000
0
-
187000
0
-
200000
0
-
248500
0
-
323500
0
Schedule Variance (SV
= EV - PV) 0 0 0 0 -760000 -760000
-
297000
0
-
719500
0
-
919500
0
Cost Performance Index
(CPI = EV/AC) 1.00 0.96 0.95 0.96 0.88 0.89 0.89 0.88 0.86
Schedule Performance
Index (SPI = EV/PV) 1.00 1.00 1.00 1.00 0.92 0.95 0.84 0.71 0.69
From this computation it has been observed tat CPI is below then PI task which show negative
sign for the organization as it will represent high cost sign. On the other side as per the above
table, SPI sign as been shown below the activities of c which means that project activities done
on accurate and estimated basis before starting of project task c. It will result in continuity
increment in occur of project it will needed revised project planning in order to control the cost
(Ercan, and Khan, 2017).

(b.)
Based on originally planned figures completion date is 06/07/2020 which is earlier than
the projected deadline of 25/09/2020. Company with existing plan can complete the entire
project within scheduled time-frame but cost has been increased due to earlier completion of
project which has created loss in project. However there are several options before company
through them company can minimise overall costs and increase projected figures of profit but
completion date will also simultaneously shift to 14/08/2019. This change in completion date
also resulted in loss of bonus which could be earned during the gape on early completion
(Dawang, Othman, and Chen, 2018).
(c.)
By evaluation off all the different options’ and plans it has been recommendation organization
will take original plan of the project without consider5sa tin will be viable for them.. As when
they does not adopt options the project completion date will be increased and it become 14th
august wherever when the management department only consider the original project they will
be able to competition before the completion date that eon, 6TH july. There will be penalty causes
according to which that if AF PLC not able to complete their project before 25/09/2020 then the
organization will be liable to penalty to TTF100 pound on daily basis. On the other side if they
are able to complete their project before its contract mention date then to organization will be get
bonus of 50000 pound per day. Thus it is beneficial for the organization to take advantages of
progress they should be go by adopting original l project rather then chosen option project
activites , as it will be reason on delaying to project.
PART B
Reflective Essay
Project management mechanism is possible with various types of challenges that are
added to them in course of carrying out the project's necessary activities. As an AF PLC project
manager and carrying out the technology project simultaneously, I have faced various problems
that pose challenges in the system's phase of completion. Several of the problems I faced were
lack of vision because the project was launched with a big team and nobody was explicitly aware
of their responsibilities at the management level as well as the operational level for the project
operations (Takuma and Iwakami, 2019).Along with this, No team leader was present with an

explanation as to why results are not up to mark and this happened because of the lack of
communication of responsibilities. I have felt that high aspirations are the explanations about any
compromised situation while running the project. Since AF PLC is among the biggest technology
and engineering venture organisations, this puts tremendous pressure on the group to do more
than best in any situation.
As a project engineer, I have to take account of most of the problems that occur while
carrying out the project and establish the requiredquality standard as a successful project
supervisor and many of them are as follows:
Efficient communication:Strong communication is important to begin the task that
responsibilitiescan be delegated to the relevant person. As coordination is necessary for
delegation of responsibilities and this help in communicating of the correct details to the correct
person which lead to discipline at management level. Strong communication prevents the data
tampering and it will help determine issues between team members while working together. This
can also help inspire all people to do well and to meet objectives (Heagney, 2016).
Effective decision maker: All decisions related to the TTF PLC venture should be made
by a project engineer. If made on time, an action can provide positive results and offers the
correct solution to the problem involved. As a leader, in order to produce fruitful results, I need
to take full accountability to take appropriate decisions by supportive research.
Technical Skills: AF PLC is an agency that deals with engineering ventures and the
company's project manager will provide all the necessary professional knowledge. The
manager's judgment will be out of observations or estimations but these have to be made with
appropriate knowledge and expertise and should be supported with research.
.
Leadership skills: A project manager is responsible for carrying out the activities that help
the project to achieve goals. Manager’s responsibilities includes communicating with team
members about their roles and duties, motivating the members by rewards, building an
environment where everyone has right to speak/ decentralisation approach and maintain the goal
congruence. It will motivate the team members to produce the expected results of the project and
the organization will be able cope with competitive environment.

CONCLUSION
In the end, this has been indicated from the above report that Project Planning is important
because it identify desired goals and also reduces the risk of uncertainty. This helps decision
maker to maintain efficient control over multiple projects as it includes detailed project specifics
such as task summary, length of time, no. of persons engaged and the end date for each jobs.
Without proper project management, it is impossible to control and monitor project execution
within estimated time period and it will ignore equivalent project performance forecasts. It
basically means all the projects will be carried out late and over the budgets.

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