Fundamental of Project Management

This report focuses on the fundamental aspects of project management, specifically the importance of various iron triangle parameters in setting overall project objectives. It discusses the formulation of a network diagram and the completion of project tasks within the specified time period and budget. The report also highlights the concept of earned value analysis and acceleration in project completion. It reflects on the challenges and risks faced in project management and presents a case study of Automation Future, a company in the technology industry known for its automation units and new product development.

Fundamental of Project
Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
PART A...........................................................................................................................................4
Question 1........................................................................................................................................4
Importance of various iron triangle parameter is setting overall project objective................4
Question 2........................................................................................................................................9
Formulation of network diagram............................................................................................9
Overall project and budget...................................................................................................16
PART C..........................................................................................................................................17
Managing progress and spending.........................................................................................17
(a) Using of Gantt chart to determine planned progress for each task.................................17
Actual progress value...........................................................................................................19
Question 4......................................................................................................................................20
Earned value analysis and acceleration................................................................................20
PART B..........................................................................................................................................23
Reflective analysis................................................................................................................23
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................25

INTRODUCTION
Project management is defined as an effective process that leads an organisation to
perform their work in team. The main motive for formulating work according to project
management is to accomplish organisational goals to meet with success criteria in a specified
time period. Project management aids to complete all project tasks in decided time period and
budget by formulating accurate parameters and step for project. Moreover, this report is based on
Automation future which performs and managed their work in the technology industry. The core
functions of respective organisation are technology contracting, product/software development
and consulting. Further, company is well-known for its automation units and the establishment of
new product for satisfying the needs of different clients (Allen and Iano, 2019). In this report
different aspects such as importance of various parameters in establishment of overall project and
its objectives are highlighted. Along with this planning and cost related with project will also
include in this report. In the last, project report highlights on earned value analysis and
acceleration that helps to complete project by using right data and information.
MAIN BODY
PART A
Question 1
Importance of various iron triangle parameter is setting overall project objective
Project manager are responsible for formulating plans and then implement them for
accomplishing company objectives and goals. Along with this project manager are also
responsible for investigating different parameters that leads business to complete overall project

with more efficiency (Anbari, 2018). Projects plans are developed by manager or organisation for
inter-relating different activities that leads business towards accomplishment of company
objective. In the context of respective case study there are different aspects or parameters exist in
business such as deciding the target price for delivery of organisation plant and if the price for
organisation is changed amount of is shared by client either it is less or more. All of the
department that are engage in automation futures leads to decide right price which is related with
cost of delivery. This is also leading organisation to set and develop different perspective which
generate better coordination between clients and company.
Project objective
 The objective of automation future define that there are various task performed by
management and all of them are completed within decided time period.
 Another objective of business is to analyse different perspective in which application of
organisation make positive results for management by completing task with more quality.
 The last objective is to link different all parameter with each other through which
individual are able in managing their work properly.
With the analysis of overall case study it is identified that the main objective of
organisation relates with completion of project within decided time period. This refers there are
various operations performed by management and most of them are considered towards use of
parameters which satisfies needs and wants of customers in an accurate manner (Dykstra, 2018).
Along with this it also defines automation of plant process take time period of more than one
year. The first parameter relates with target price for delivering of automation plant and most of
them consider that due to change in company process it is easy to work in an appropriate manner.
This also defines individuals are focused for managing different task which helps to deliver all
project by entitling all aspects that make better possibility for completing task with the target
price. In context of automation plant delay there is penalty which is impacting on business and
also reward is provided for completion of task in an organised manner. Similarly, all parameters
which is defined in case study in linked with each other and it is because persons are more
focused to do all task with making right automation and coordination between activities. Like,
target price of organisation relates with cost of delivering the products. Both of them inter-relate
with each other because it is essential for management to complete project in decided budget and
it relate with delivery cost because if cost raise with 5% than it is the responsibility of

Automation future to bear the additional cost. Further, is cost exists more than it is split between
client and company (Galli, 2018). It leads by coordinating between both of the departments
organisation is able to complete its task with more efficiency. The change in calculation defines
person are focused towards damage because it engage early completion of work like, to complete
project on time. But it is also complex for management because it is related with business and
undertakes that the excess pressure of delivery products on time periods impacts on quality of
business. So it is mandatory for management of Automation future to select methods such as
benchmark which leads to achieve company goals in an accurate manner by defining aspects
which is positive for organisation.
Risk Impact if
risk occur
Cost of
occurrence
Probability
of occurrence
Expected
value
Mitigation
plan
Responsible
person
Change in
design
The first
risk which is
faced by
management
is the
change in
design
process. As
demands for
individuals
are too
dynamic. So
in context of
business if
risk occurs
that cost of
products is
highly
impacted. It
The cost to
manage the
risk and all its
aspect defines
automation
future more
challenges
because it is
impacting on
organisation
also on
enhance cost
of business by
changing its
needs.
Probability to
occur
different
perspective
defines that
individuals
are facing
challenges but
risk for
change in
design is too
less because
manufacturing
units defines
the work with
related design
industry of
train.
The
estimated
budget for
completing
the project
is 58.50
million so
risk value
is also high
as it is
major part
are most
costly.
There are
different
plans exists
in business
but the
change in
company
policy
reduce the
mitigation of
plan because
existing plan
is
formulated
in an
organised
manner.
Top
management
is responsible
for
implementing
changes that
exists in
organisation.
The reason
for this
aspect
defines that it
is a costly
project. So
directors
monitor
project
directly.

creates issue
for
organisation
to manage
work due to
which AF
and client
both are
impacted.
Defect in
electronic
component
It defines
that the
change in
electronic
chip
generates
complexity
for business
to operate in
proper
manner.
The risk cost
for change in
electronic
chip directly
reduces
company
process and
systems.
Probability to
change in
electronic
chip is high
because this
directly
reduces
company
efficiency.
Value
which is
related with
business is
low
because of
using
affordable
quality
products.
In context of
mitigation
plan
electronic
chip are not
changed
because it is
related with
system.
Electrical
department is
responsible
making
changes in
plan.
Government
regulation
With the
change in
place rules
formulated
by
government
is also
changed. So
it is a risk
aspect for
AF.
On other side,
if occurrence
of this risk
exists than it
is not possible
to trade in
country such
as high tax on
software.
Impact on
cost
probability is
too low as
government
are in
authority to
control tax.
Value in
the
business
defines that
AF follow
all rules
related with
government
rules.
The aspect
for
organisation
considers
that
mitigating
plan also not
able to
manage
government
related risk.
Research
department
and board of
directors are
responsible
for analysing
macro
environment.

Structure Major risk is
related with
company
structure it
defines that
change in
company
policy.
The major
cost which
relates with
business. In
this task are
related with
business.
Probability of
risk related
with structure
is moderate
because
structure is
decided by
client and
company.
The value
cost for
structure is
too high
because it
is engage in
all
operations.
Plan which
is related
with
business
structure are
expensive to
work.
Project
manager is
responsible
for
formulating
and defining
structure.
Target or
deadline
All project
which is
completed
by
management
define must
be on time.
It is a risk
aspect for
company as
if it occur
than penalty
is charged
by client.
Cost to
complete task
relates with
manufacturing
as both
rewards and
penalty are
provided by
client.
There is high
probability for
this risk
because delay
in first step
impacts on all
further action
of company.
In this task
business
aspects
which are
included
identify
perspective
that
concept
impact on
company
value.
For
mitigating
plan risk are
covered by
management
for
organising
functions in
an accurate
manner.
The
responsibility
related with
supervisor of
each
organisation.
Ineffective
production
line
There are
different
changes
identified by
AF. If risk
occur than it
directly
impact on
Cost is also
high for
company to
change as it
impact on all
valuable
aspect for
business.
There is more
probability to
change in
production
because of
dynamic
environment
and client
Value to
implement
production
line
consider
high cost
for
business.
The change
in company
plan
provides
challenge as
it is complex
to mitigate
plan
Manager and
supervisor
are
responsible
to manage
production
line on daily
basis.

production
line.
requirements. regularly.
Availability
of product
If the risk
related with
product
availability
is high than
cost of
business is
directly
impacted.
Cost which is
related with
business
define that
change in
company plan
also impact on
business cost.
Automation
sector require
huge
investment.
So probability
of risk is too
low.
The initial
expected
value that
relates with
business
risk start
from
10million.
Plan related
with
mitigation
undertakes
perspective
so it is not
complex to
formulate.
Resource
allocator is
responsible
for
understand
risk of
product
availability.
Automation
in functions.
With
perspective
of company
all process
is develop
with
automation
so it create
complexity
for
individuals
to
understand
if it
changed.
Cost for
automated is
too high that
defines
business
aspects are
hard to
achieve.
Probability
for business is
too high it is
because each
organisation
adopts
automated
system.
Value for
current
project
automation
is estimated
about 25
million.
There is less
possibility
for
mitigating
plan because
automation
is necessary
aspect for
organisation.
Technical
and HR
department
both are
responsible
for
coordinating
among
individual
and
technology.
Question 2
Formulation of network diagram
The term network diagram refers to a geographical portrayal that undertakes different
activities and events related with project. This also defines that with formulation of right diagram

it is easy to demonstrate business activities. Automation future utilise network diagram for
completing task with desired steps.

Project
initiation
and design.
To design
automated
equipment.
Outline of the
design
inverter
product.
“Detail design of
factory”.
In-depth detail
of automation
unit.
Software
automation and
equipment.
Manufacture of
automation unit. Modular factory
units
Test of
automation
units.
Establishments
of modular units
in Germany.
Test and install of equipment in new
factory to ensure that all units are
working in proper manner.
Software for
inverters and
production
lines.
Test of inverter
production
line.
Handover and train the
engineer of TTF for
managing automation
process easily.
Closing the
project.

In the network there are all essential steps which are related with production units and
completion of project is included. This defines there are various operations performed by
management and this is because Automation future are constantly manage the operations to
deliver good quality of project (Haq and et. al., 2018). In context of above diagram the coloured
object and shape highlight test which ensure project is completed in an accurate manner. Along
with this another perspective defines that due to high involvement of funds it is essential for
organisation to work with more efficiency. On other side, the TFF provides complex project with
decided target. Therefore, to obtain more efficiency it is compulsory for organisation that
management complete all task in an appropriate manner for closing project successfully in
Germany.
Gantt chart- The term Gantt chart explains the series or sequence of horizontal lines that
demonstrate work and steps which is done to achieve company goal. Similarly, it also represents
time taken by Automation future to complete their activities in an appropriate manner.

Working notes:
Bonus for early completion: Amount in pounds
Work that is completed early 42
Bonus based on each day activities 50000
Total bonus 2100000
All the above activities are used in the TTF’s project to formulate and develop the budget
and it consists of different expenses (Heigermoser and et. al., 2019). This is assumed by
organisation that cost of the contract labour and the external team is considerate under fixed cost.
Therefore, the assigned budget of the project is about managing 13.85 million and it helps to
manufacture automation equipment of business.

Task Name Duration Start Finish Predecessors
Project initiation 1 08-07-2019 15-07-2019 -
Factory design 3 15-07-2019 29-07-2019 X
Design of
automation
equipment
2 30-07-2019 11-08-2019 X
Outline of
inverter product
1 11-08-2019 17-08-2019 X
Detail design of
factory
8 17-08-2019 15-10-2019 A
Detail design of
automation
8 15-10-2019 17-12-2019 B,C
Software for
automation
10 18-12-2019 01-03-2020 E
Manufacture
automation
equipment
10 02-03-2020 28-05-2020 E
Modular factory
units
9 29-05-2020 02-08-2020 D,E
Transport and
construct of
modular factory
8 23-03-2020 24-05-2020 H
Test automation
equipment
6 25-05-2020 08-07-2020 F,G
Transport
automation
equipment
4 24-05-2020 24-06-2020 J
Install
Automation
equipment in
6 02-01-2020 16-02-2020 I,K

New Factory
Install Software
for Automation
equipment
4 17-02-2020 18-03-2020 L
Install software
for Inverter
Product Line
5 15-01-2020 28-02-2020 F,M
Test Inverter
Production line
6 10-02-2020 24-3-2020 M,N
Handover and
Train TTF
engineers in
Automation
process and
Product
production
6 01-07-2020 05-08-2020 O
Project Close out 0 25-08-2020 25-08-2020 P
Overall project and budget
There are different task performed by management and all of them are focused to manage
and complete the work for analysing different perspective related with company budget. This
defines individuals perform different activities and most of them define actual progress and time
which is required to complete task with more efficiency (Hopkin, 2018). This consider
organisation make loss as increasing initial project budget as the point related with increasing
business define project target. The spread-sheet present expenses due to which task generate loss
for project budget it is because delay in delivery increase relates with organisation perspective
that incur expenses. This governs that TFF project is large and to manage projects at such a large
level is complex at initial period which generate complexity for organisation to work in an
organised manner.

PART C
Managing progress and spending
All task are managed with the analysis and formulation of budget and schedule due to
which it is essential for employees and departments of Automation future to perform their work
according to decided time and cost. Along with this to manage the progress of new factory top
executive monitor function on daily basis because daily progress relates with rewards and
penalties. The main motive to manage progress is to check all task are completed according to
decided schedule. With the analysis of above Gantt chart activities that are performed by
management is undertaken to calculate period of different operations. According to Gantt chart
activities all task are completed on time in the year 2019 but some start activities are difficult to
manage as per time (Kerzner, 2018). This is because TFF provide large project that are also high
in cost so it is essential to manage process and it ensure all spending are completed on time. After
that from the month of January Automation future started to manage operations by coordinating
between two different activities. This helps to complete and close the project before deadline that
aids to earn more reward from client.
(a) Using of Gantt chart to determine planned progress for each task
Gantt chart having only tasks and % complete columns:

Comparison table:

Actual progress value
Some values of the Gantt chart define that there are different task performed but some of
them are revised to complete the action or task in an appropriate manner. The revised action that
are undertaken for completion of project with more efficiency and it also helps to generate better
value from the project action and activities (Luiz and et. al., 2019). Moreover, after each week a
review programme is arranged that support to analyse all action and activities are performed in
an organised manner.
Task Task Name Duration Start Finish Predecessors %
Complete
Actual work
complete %
PI Project Initiation 1 wk
Mon
08-07-
19
Fri 12-
07-19 100% 100%
A Commission Design of
Factory 3 wks
Mon
15-07-
19
Fri 02-
08-19 1 100% 100%
B
Commission outline
Design of Automation
Equipment
2 wks
Mon
15-07-
19
Fri 26-
07-19 1 100% 100%
C
Commission outline
Design - Inverter
Product
1 wk
Mon
15-07-
19
Fri 19-
07-19 1 100% 100%
D Detailed design of
Factory 10 wks
Mon
05-08-
19
Fri 11-
10-19 2 100% 80%
E
Detailed design of
Automation Equipment
and Inverter Product
8 wks
Mon
29-07-
19
Fri 20-
09-19 3,4 100% 100%
F
Commission and
develop Software for
Automation equipment
and Inverter Product
17 wks
Mon
23-09-
19
Fri 17-
01-20 6 60% 35%
G Manufacture
Automation equipment 17 wks
Mon
23-09-
19
Fri 17-
01-20 6 60% 35%
H Manufacture Modular
Factory Units 10 wks
Mon
30-09-
19
Fri 06-
12-19 5,6 56% 50%
I
Transport and Construct
Modular Factory on site
in Germany
8 wks
Mon
09-12-
19
Fri 31-
01-20 9 0% 0%
J Test Automation 6 wks Mon Fri 28- 7,8 0% 0%

equipment 20-01-
20 02-20
K
Transport Automation
equipment to New
Factory
4 wks
Mon
02-03-
20
Fri 27-
03-20 11 0% 0%
L
Install Automation
equipment in New
Factory
6 wks
Mon
30-03-
20
Fri 08-
05-20 10,12 0% 0%
M Install Software for
Automation equipment 4 wks
Mon
11-05-
20
Fri 05-
06-20 13 0% 0%
N Install software for
Inverter Product Line 5 wks
Mon
08-06-
20
Fri 10-
07-20 7,14 0% 0%
O Test Inverter Production
line 6 wks
Mon
13-07-
20
Fri 21-
08-20 14,15 0% 0%
P
Handover and Train
TTF engineers in
Automation process and
Product production
6 wks
Mon
24-08-
20
Fri 02-
10-20 16 0% 0%
PC Project Close out 0 wks Fri 02-
10-20
Fri 02-
10-20 17 0% 0%
With considering the above activities it is identified that there are some delay are resulted
towards the shifting of work and it is shift from the 14 of eight month to the 2 of ten month
within the year 2020 (Mall, 2018). This undertakes the vital profitability and it is required for
completing the time that helps in completing the project on decided time that is 25 of the
September.
Question 4
Earned value analysis and acceleration
The term earned value analysis is define as the method which allows the project manager
for measuring actual amount of work and action that are taken for the project and it defines that
individuals leads all schedule activities and actions are completed in an appropriate manner
which enhance more value for cost (Mazzetto, 2018).
EVA table:
Tasks % of work Budgeted Cost of Work Actual Cost of Budgeted Cost of

completion
Performed (BCWP) or
Earned value (BCWS *
completion %)
Work Performed
(ACWP)
Work Scheduled
(BCWS)
PI 100 20 0.2 0.2
A 100 280 2.91 2.8
B 100 160 1.72 1.6
C 100 150 1.53 1.5
D 80 304 4.08 3.8
E 100 540 5.97 5.4
F 35 119 1.32 3.4
G 35 227.5 2.76 6.5
H 50 200 2.75 4
Total 2000.5 23.24 29.2 (BAC)
Cumulative
Planned
Value (PV)
Cumulative
Actual
Cost (AC)
Cumulative
Earned
Value (EV)
Cost
Variance
(EV - AC)
Schedule
Variance
(EV -
PV)
Cost
Performance
Index (CPI
= EV/AC)
Schedule
Performance
Index (SPI =
EV/PV)
200000 200000 200000 0 0 1 1
3000000 3110000 3000000 -110000 0 0.96 1
4600000 4830000 4600000 -230000 0 0.95 1
6100000 6360000 6100000 -260000 0 0.96 1
9900000 10440000 9140000 -1300000 -760000 0030.88 0.92
15300000 16410000 14540000 -1870000 -760000 0.89 0.95
18700000 17730000 15730000 -2000000 -
2970000 0.89 0.84
25200000 20490000 18005000 -2485000 -
7195000 0.88 0.71
29200000 23240000 20005000 -3235000 -
9195000 0.86 0.69

Formulation of the project for completion of entire project by using the estimate at complete
schedule to derived from the earned value analysis
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 which is assigned to complete the project is 14th 2020 and the
estimate date to complete and close the project is 2nd October 2020. But the project is completed
on 25th September 2020. Therefore, organisation bears the penalty of 700K of seven days. Along
with this fixed cost of project is 46.7 million pound and it increase the cost with 94.2 million
pound.
Recommendation on the options that are accepted and declined
There are five different option is considered and all of these plc try to reduce total time
period and with this reducing organisational expenditure as well as amount of money both is
increased. This is used for complete of project activities within effective project. Some of the
options to complete the project activities is defined as below:
Task
Week
s
Cost
£'000
Cost/Week
(A)
Bonus
/Week
Total
bonus (B)
Total
benefit (A-
B)
F 3 200
66.6666666
7 250 750 550
G 3 105 35 250 750 645
I 2 75 37.5 250 500 425
N 1 25 25 250 250 225
P 2 35 17.5 250 500 465

There are different code is calculated that consider the total cost of organisation on per
week basis and one of the most suitable option relates with P as with this associate it is analysed
that the cost of project is £ 17.5K on per week basis. This is minimum compare to all the
activities that is used for managing project and its activities with the opening period of time. It is
because that organisational task G provide maximum amount of profitability and it is related with
£ 645K. It represents that task G is selected to accelerate various options for completing the
project before the time period. So it recommend to company that it must select G to complete
overall project.
PART B
Reflective analysis
The opportunity to complete the report on the provided case study helps me to understand
different action and activities which are performed by the project manager to complete a project
in an organised manner. This section also provides that ideas of understanding business report
and financial data. By going through different section of business report it is analysed that
various skills are required by me to complete a research in an appropriate manner. It refers
organisation such as Automation future perform various task so it is essential for me to
understand different concept that helps to understand basic work facility of organisation.
Automotive sector is the speciality of organisation and the existing project for TFF totally relate
or linked with business activity of company. With the analysis of above table it is identified that
there are various task performed by management and most of them are completed in decided time
period. This also refers there are various operations performed and it relate with company risk so
the functions and role of risk register is also understand by me to complete all operations
according to decided step. Project management tools such as Gantt chart are also formulated and
they help in managing different functions or operations and completion of project on the decided
time. A large number of functions and operations are completed and all of them are completed
with the number of decided resources. Further, while going through the case study this is also
identify by me there are different additional resources is required which indicates that project
management support all external activities are also impact on the company process. Like, at the
time Christmas all the contract staff will not perform its activities due to which project manager
require breaks. Similarly, some activities such as work responsibility also generate some

moderate impacts on my report. In order to manage I utilise my week day off to complete the
research and also to solve case study on decided time. The major learning while going through
from the report defines it is essential for me to work and coordinate with team members on
constant basis that leads to complete and manage functions properly. It also refers that there are
different functions performed and it assist me to generate contract in the future through utilising
skills that are learned by interacting with different team members. Communication skill is one of
the important aspect because it helps to transfer and cognize information easily. In context of
case study it is identified different departments are engaged and also interact with each other to
perform all functions without making delay in delivering and closing the project.
CONCLUSION
With the analysis of all above report it is concluded that project management is an
essential aspect for organisation and it helps to complete project activities and action within
stipulated period of time. There are different opportunity are also analysed by undertaking
different activities and this identify that organisation achieve better efficiency to complete their
project with better solutions. It also assists company to formulate plans by which all task is
completed according to right and effective plans. Project manager also enhance and improve
accessibility of project by guiding others to complete action according to desired project.

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