Fundamentals of Project Management and Iron Triangular Parameters

This report discusses the fundamentals of project management and the importance of iron triangular parameters in setting project goals. It explores the concept of risk register and its role in managing project risks. The report also covers network diagrams, ghantt charts, and earned value analysis. It provides strategies for managing project progress and spending.

Foundation of project
management
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ABSTRACT
In this report it is discussed about fundamentals of project management and how iron
triangular parameters is useful in setting of goals and planning. Besides, the various risk which
can occur in PLC project is been described with help of risk register. Also, network diagram is
developed along with ghantt chart. Furthermore, earned value analysis is been done to calculate
various types of cost and resources. Furthermore, it has been described about some suggestion
which can be taken into consideration by project manager. At last reflection is written on
challenges faced during project.
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INTRODUCTION
A project management is process of planning, executing, organising, etc. of various
activities required in completing a project. There are several fundamentals of project
management which are followed in it. It is necessary to follow those so that project progress is
monitored and maintained (Dalcher, 2020). Also, it helps in doing proper planning and making
changes in it. Basically, fundamentals include, cost, time, scope, and other components.
Moreover, project goals and objectives have to be developed which gives insight to manager
about what has to be done. So, on basis of it, project is broken into various activities and
schedule is developed. There are many factors which can impact on project progress such as
time, cost, stakeholder requirements, etc. Along with this, preparing a ghantt chart represent flow
of sequence of project activities along with its starting and ending time in sequential manner.
Hence, team members get overview about what activity begin after the other (Khadartsev, 2018)
The report will discuss about an automation project to be installed in it. Besides that, it
will be described about how iron triangle parameter form goals. In addition, risk register and cost
of project is discussed as well.
PART A
1. Project definition
a). Discuss importance of iron triangular parameters in forming of project objective
A project requires to set proper goals and objectives so that it is easy to develop plans
accordingly. It is the most important part in project management as it shows successfulness of
project. Moreover, on basis of goals there are certain parameters which is based. However, the
purpose of using this concept is to do planning in effective way (Martens and Carvalho, 2016).
The iron triangular parameter shows the interrelationship between 3 common elements in
project. They are cost, time and scope. It state that any change in one of the factor will directly
affect the other. Thus, it is necessary to maintain balance between all these so that project goals
are achieved. Besides that, manager gets insight on how change in one constraint can affect the
other 2 so accordingly changes are done. The parameters are explained as:
Cost- as name depicts it includes all finance related elements in it. Cost include labour cost fixed,
variable, etc. hence, project manager prepare a budget on it and setting a target of how much
expenses incur. Moreover, manager is able to control cost through it. Along with it, when there
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occurs any fluctuation in cost it impact on time and scope. This consumer more time and scope is
changed (Young, 2016).
Time – here, time of overall project completion is calculated. It shows that what things are to be
done at which date and time. It is represented by preparing a schedule where all project tasks are
written and for each one start and end date is mentioned. If there is any delay in completion of
particular tasks then it impact on cost and scope. So, project manager track progress of project
through it.
Scope – in this all activities are included in it of project. In this if activities are not completed on
time than it leads to rise in cost and delay of entire project. Besides, change in stakeholder
expectations also affect on scope of project. Therefore, project manager prioritize activities on
basis of goal and objectives.
These three components are highly useful in defining the project direction and its
successful completion. It can be explained with help of example like if there is change in rise in
budget due to lack of resources then it will impact on delay in project task, then similarly, it will
also affect on further tasks as well. This will automatically lead to delay in activities and
changing the overall scope of project. Likewise, if there is delay in task completion then it will
led to rise in cost and change in scope of project. Hence, this iron triangular parameters are
useful in evaluating impact of these three components which are interlinked together to make
things easy. With that it becomes easy to make changes in them according to impact identified.
b) Risk register
There are many risk which can occur in project. This entirely impact on overall project in
negative way. So, risk register helps in finding out risk in it. The register shows risk level,
strategy, etc. for it. Hence, risk impact can be easily reduced from it (Zheng, Le and Li, 2016).
Moreover, mitigation measures are taken in order to minimize its impact so that project can be
completed within time. Besides, it gives insight on how things are to be changed and how project
will be proceeded. Similarly, as PLC project is complex and large it also required to be conduct
risk analysis. It will be useful in giving insight about types of risk, its likelihood, impact, etc.
Risk Likelihood Impact Mitigation
measures
Risk factor
1= low
5 = high
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Rise in cost 3 4 Here, it a back up
or additional cost
will be estimated.
Insufficient
resources
3 4 The allocation of
resources will be
done through
budget and
monitoring of
utilization of
resources will be
done.
Delay in project
completion
4 5 A schedule will
be prepared and
prioritize
activities will be
mentioned .
Technical error 3 4 There will be
proper testing
done in it
Damage of
equipment
3 4 The equipment
will be kept safe
along with all
security measures
ensured and
taken.
Failure of
software
4 5 The software will
be checked and
tested properly.
Fault in product 3 4 Software will be
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line used to monitor
product line and
its proper
monitoring will
be done.
Insufficient HR 3 4 Outside labor will
be hired.
Lack of tool to
train TTF staff
3 4 A training
assessment will
be done to find
out requirements.
Failure of
production of
product
2 3 High and advance
software will be
used.
2. Planning and cost
This is an important stage project management as in here overall planning of project is
done and along with it cost is allocated. The planning has to be done properly so that project is
completed on time. Other than this, on basis of planning, cost is estimated and budget is
prepared. In addition, this gives overview about that on which tasks how much cost is required.
a) Network diagram
A network diagram represents connection and relationship between project tasks and
activities that how they are connected with other. The tasks are described in boxes and it also
shows flow of activities with one another. Project duration will be 96 weeks.
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Network diagram
Ghantt chart
A ghannt chart is a graphical representation of activity to be carried out in project. In this
it describe project date and time. Also, duration of task is mentioned in it by which it becomes
easy to evaluate how much time task will need to be completed. There are some predecessors as
well to find out how activity is dependent on another one.
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testing of product line 6 wks Mon 5/25/20 Fri 7/3/20 14,15
Train TTF engineer 6 wks Mon 7/6/20 Fri 8/14/20 16
Completion of project 0 wks Mon 8/17/20 Mon 8/17/20 17
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c) Budget of project
A budget is an estimate values of income and expenses that are incurred during project
for a particular period of time. It is necessary for project manager to prepare a budget so that it
helps in allocating of resources. However, there are various components in it such as fixed cost,
variable, labor, materials, etc. thus, there is a great impact on these components on project as any
change in it affect entire budget. It is because it increases cost of budget and many things are
assumed in it.
Expenses
Per
hour
Electrician 69 1656000
Technician 39 936000
2 Assistant
Project
Manager
and 2
Project
Planner 5500 5500
2
Commercial
Manager 2750*2 5000
Total 2602500
From the above budget it is interpreted that estimated budget is 2602500. In that all cost
and expenses are included such as salary of engineers, technician, electrician, etc. with help of
that, it will be easy for project manager to allocate resources for each task. So, it shows profit
and bonus as well.
3. Managing progress and spending
It is a stage there project progress is managed to find out whether it is moving in right
direction or not. So, it gives insight on how much is been spend and whether tasks are completed
within deadline or not. Through that, it enables project manager to make changes in plan and
analyze things easily.
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a) Determine the planned progress after 17 weeks
Task Planned Actual
PI 1 1
A 3 3
B 2 2
C 1 1
D 8 6
E 8 8
F 10 3
G 10 4
H 9 4
From above table it is evaluated that at initial stage progress of project is good but after
coming to F, G and H activity the progress is very low and behind. It has highly impacted on
further progress of project. Along with it, there is decline in 50% progress of project.
b) Actual progress values of project from revised table
Here, a comparison is made by creating a table that what actual progress value and
planned progress. By this it is easy for manager to find out how much more time is required for
its completion and what are the tasks which is lacking behind. Then, accordingly on basis of it
planning can be done and prioritize activities are completed first.
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testing of product line 6 wks Mon 4/13/20 Fri 5/22/20 14,15
Train TTF engineer 6 wks Mon 5/25/20 Fri 7/3/20 16
Completion of project 0 wks Fri 7/3/20 Fri 7/3/20 17
The above ghantt chart show that planned progress is not going on properly. It has been
evaluated that there is delay in project progress. Also, estimated delay of project is around 10
weeks. The new completion date will be 7/3/20.
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4 Earned value analysis and acceleration
A) Earned value
It is technique for measuring the project performance and its progress in effective
manner. It is calculated on basis of certain costs and values specified in it. In this ACWP,
BCWP, etc and other values are calculated from particular date. Alongside, CPI and SPI figures
indicate the project progress in effective way. It shows whether project performance is
generating relevant value from it or not. Furthermore, comparison is done by measuring these
with project value so that profitability of project is determined.
Activity
Planned
(%) Actual (%) Planned Cost (£) Actual Cost (£) BCWS (£) BCWP (£) ACWP (£)
PI 1 1 0.29 0.29 0.29 0.29 0.58
A 1 1 2.91 2.91 2.91 2.91 5.82
B 1 1 1.72 1.72 1.72 1.72 3.44
C 1 1 1.53 1.53 1.53 1.53 3.06
D 1 0.8 4.08 0.38 4.08 0.304 4.384
E 1 1 5.97 5.97 5.97 5.97 11.94
F 1 0.35 1.32 0.46 1.32 0.161 1.481
G 1 0.35 2.76 0.96 2.76 0.336 3.096
H 1 0.5 2.75 1.375 2.75 0.6875 3.4375
Total 23.33 13.90 37.2385
By interpreting table it is stated that the BCWS is 23.33 and BCWP is 13.90.
B)
EAC = BAC/ CPI
For entire project BAC = £58.50
So, EAC= 58.50/ 6.01
EAC= £9.73
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by above it is said that EAC of project is £9.73.
Acceleration
c) From option given it can be stated that option N is suitable. This is because here PLC team
will have to work overtime and on weekends as well. Due to that, cost incurred on them will be
only £25, 000 per week which is low as compared to options P, I, G and F. In all these cost
incurred is high than £25000 per week (Dalcher, 2020). Another reason is that HR requirement is
6 which is less. The time required in this is 1 week which will not impact on project to such a
large extent. On contrary in other option average time is 3 - 4 weeks and cost incurred is high.
Hence, it will result in rise in cost of overall project. Moreover, the PLC team can also solve any
issue which occur during inverter software.
PART B
There were various kinds of challenges encountered by the throughout the module
because of which I had faced various kinds of difficulties in completing this assignment. One of
the major challenges faced by me was that I was unable to understand ways in which I can start
the project as this was the first time, I was doing a project management assignment because of
which developing network diagram and Gantt chart in an appropriate manner. At the starting of
the assignment it was a difficult for me to understand different ways in which I can complete all
the task in an appropriate manner without any issues with accurate results. There were various
kinds of functionalities of project management which took me a while to understand and use in
an efficient manner. But by developing and maintaining effective communication with by team
members I was easily able to overcome all my challenges and complete the assignment on time
with least number of issues or problems. At the starting of the project first thing done by me was
to develop project objectives that are required to be achieved by me. Another challenge faced by
me was to identify all kinds of risk that can be faced by me and ways in which it can impact
overall project. There is no doubt that I had identified many risks and also identified ways in
which those risk can be mitigated but as I was doing the project management so I had least idea
of which kind of risk I can face during the project and ways in which it can impact my project
but development of project objectives and understanding of the project helped me to overcome
this challenge as well. On the basis of risk identification, I was able to develop a risk register and
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identify ways in which those risk can be mitigated so that their impact upon the risk can be
minimized. But even though the major challenge in development of risk register was to identify
likelihood of risk and cost associated with risk mitigation. I had focused and planned all the sub -
activities of the project and defined a time period in which they were required to be completed
but I faced challenge in completing the activities on defined time period. Many times, I missed
some deadlines as a result I had to bring changes within Gantt chart and network diagram. Other
than this there was one more challenge that was faced by me and that was in earned value
analysis due lack of experience in project management it became difficult for me to calculate the
earned value analysis correctly in one attempt.
From my research and experience I had identified that there are various characteristics
that are required to be present within a good project manager. My experience of doing this
project helped me in understanding that there are various areas that were required to be improved
by me in order to develop all kinds of good characteristics of a good project manager.
Development of these characteristics will help in bringing improvement within my skills and I
can improve my skills of using project management. First and the foremost characteristic of a
good project manager is to have good decision- making skills so that if they face any kind of
challenge within a project, they can take effective decisions and overcome those issues. I need to
focus on developing effective decision- making skills so that challenges faced by me can be
overcome in an appropriate manner and in future such project management project can be
completed by me on time. Another good characteristic of a project manager is that they are
required to remain cool under pressure as it helps them in motivating others. Whenever I faced
any challenge during the completion of the project, I used to lose my cool and get hyper which is
not a solution for resolving any kind of challenge or issue. I need to focus on developing this
characteristic. A good project manager is required to have good communication characteristic as
it helps them to understand issues faced by the team, communicate important information with
other team members and guide team members so that they can achieve shared objective in a
desired manner and resolve any kind of issue faced by them. One of the main characteristics that
helped me in completion of the project was good communication skills. I was able to
communicate with my team members easily and resolve challenges faced by me during the
assignment.
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CONCLUSION
It can be concluded that fundamentals of project management plays a vital role. They
provide information on basis of which planning is done. The iron triangular parameters are cost,
time and scope. They help in providing brief info on it. So, project manager is able to find out
how change in one factor will impact the other. These three components are highly useful in
defining the project direction and its successful completion. Hence, this iron triangular
parameters are useful in evaluating impact of these three components which are interlinked
together to make things easy. There are many risks which can occur in PLC project such as
delay, rise in cost, technical failure, etc. it is determined from ghannt chart that project
completion date is 8 July 2021. however, the budget it is interpreted that estimated budget is
2602500. furthermore, the project progress is delayed of 10 weeks and it is not going as per
planned. Also, it is stated that the BCWS is 23.33 and BCWP is 13.90. and EAC of project is
£9.73. By reflection it is summarised that there were many challenges which was faced in
assignment. They are difficult to understand project functions, to find out likelihood of risk, etc.
however, there are certain characteristic which is required in project manager such as decision
making skills,, communication, leadership, and other.
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REFERENCES
Books and journals
Dalcher, D., 2020. Is now a good time for a fundamental rethink of leadership? 2. PM World
Journal, 9(4).
Khadartsev, O., 2018. Project management models: determining adequacy to the conditions of
the implementation environment. Fundamental and applied researches in practice of
leading scientific schools, 28(4), pp.60-64.
Martens, M.L. and Carvalho, M.M., 2016. The challenge of introducing sustainability into
project management function: multiple-case studies. Journal of Cleaner Production, 117,
pp.29-40.
Young, T.L., 2016. Successful project management. Kogan Page Publishers.
Zheng, X., Le, Y. and Li, Y., 2016. Review of the application of social network analysis (SNA)
in construction project management research. International journal of project
management, 34(7), pp.1214-1225.
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