Fundamentals of Project Management

This document provides an overview of the fundamentals of project management, including project definition, risks, planning, costs, and more. It also includes a reflective essay on the characteristics of a good project manager. The subject is project management and the course code is not mentioned. The document type is a consultancy report and there is no specific assignment type mentioned. The college/university is not mentioned.

Fundamentals of project
management

Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................1
Project definition and risks (Question 1).........................................................................................1
(a) Discussing the relative importance of the various iron triangle parameters..........................1
(b) Creating a risk register...........................................................................................................3
Planning and costs (Question 2)......................................................................................................5
(a) Preparing a network diagram showing the critical path.........................................................5
(b) Preparing a Gantt chart..........................................................................................................6
(c) Calculating project Budget and the projected Net profit for the contract..............................8
Managing progress and spending (Question 3).............................................................................12
(a) Creating a TABLE comparing the planned progress against the actual progress values.....12
(b) Producing a revised Gantt chart and identifying the new completion date.........................13
Earned Value Analysis and Acceleration (Question 4).................................................................14
(a) Create an Earned Value Analysis table................................................................................14
(b) Earned Value Analysis computations..................................................................................15
(c) Recommendations................................................................................................................16
REFERENCES..............................................................................................................................17
PART B - REFLECTIVE ESSAY................................................................................................18
Reflective Essay.........................................................................................................................18

EXECUTIVE SUMMARY
Management of project is a practice that leads to start is a procedure considering initiating,
planning, executing, controlling and closing the probable task or project by attaining the
prominent goals and objectives with matching the specific success criteria. In terms of this, the
primary objective is to achieve all the prominent goals within the provided constraints.
Moreover, its primary constraints include scope, time, quality and budget.

INTRODUCTION
A fundamental of project management is the concept of basic phenomenon of managing and
controlling a project (Braunovic, Myshkin and Konchits, 2017). This concept acts as a process in
which a project manager plans, execute and then follow up the status of completion of the
project. In this report a fictional organisation is selected which AF Plc. This company is a project
consultancy organisation which provides services to other organisations. This company has
acquired to project of TTF organisation which is a train manufacturing company. TTF has
provided contract to AF Plc. to develop a new engineering automation plant.
This report is divided into two sections, in section one, triangle parameters of project
management are analysed along with development of risk register. Using the project information
of AF Plc. Gantt chart and network diagram is prepared along with a project budget. The analysis
of Earned value is also conducted in this report along with valid recommendations. In the second
part of this report, a reflection analysis is done which includes channellings faced in this module
along with identification of the characteristics of a good project manager.
PART A - PROJECT MANAGEMENT CONSULTANCY REPORT
Project definition and risks (Question 1)
(a) Discussing the relative importance of the various iron triangle parameters
Iron triangle parameters are the constraints which shape a project. These parameters are
important to be identified by a project manager as these are the basis of evidencing success of the
project (Edwards, 2013). A visual representation of iron triangle parameters is given below from
which it is analysed that it is important to effectively control three parameters of cost, time and
scope otherwise the quality of the project will be impacted.
1

(Source: Iron triangle parameters, 2018)
All four parameters of iron triangle are assessed separately below:
Time – This is the most important parameter of project management which is based upon
the panned schedule of a project. Project manager analysis all the attributes in a project and then
combine them with project’s external factor; considering all this an estimated schedule is then
prepared (Kerzner, 2017). The reason behind the importance of this parameter is that it helps to
ensure completion of the project on time. In the current scenario, as a project manager of AF
Plc., it is important to ensure that the project of TTF is completed on time otherwise AF Plc. has
to pay penalty of 100k per day.
Cost – This parameter includes all the expenses which a company spends for the
completion of project. A project manager develops a budget in which estimation of these costs
are included. It is important to restrict the activities of the project under the planned budget only
otherwise project management company has to face situation of lower profit and even loss.
Scope – This constraint is related with features and functionality of the project. As the
project manager of AF Plc. all features of the new engineering automation plant has to be
planned effectively. This planning of scope is important as it provides a surety that all the
requirements of client are completed within the project (Kroenk and Auer, 2012).
Quality – This is the fourth parameter of project management which is effected by al the
constraints analysed above. Quality of a project is important to be maintained as it provides
2

satisfaction to the client. In the case of AF Plc., quality parameter is even more important as AF
Plc. is obliged to pay any maintenance fees which have occurred due to faults in plant to TTF
Plc.
All the parameters which are analysed above are related to each other. In the case where
time of the project is fluctuation, it has to be controlled by other two parameters of scope and
cost (Leach, 2014). It is important to balance these three constraints of project management
otherwise quality of the project is impacted negatively.
(b) Creating a risk register
Risk is an uncertain situation which can occur in a project due to both internal and external
factors (Lussier, 2011). In order to control and manage these risks by a project manager, it is
important to primarily identify all the risks which can occur at the time of executing a project. As
a project manager of AF Plc. a total of 8 risks are identified which can occur at the end of
executing new engineering automation plant project. These risks are identified and recorded
using a risk register.
Risk Risk
occurrence
probability
Estimated
risks impact
Causes of the risks Mitigation actions for
the risks
Damage of
equipment
High Medium Equipment at the
plant site can be
damaged due to
negligence of
engineers and
supervisors
In order to mitigate
this risk, AF Ltd.
should keep buffer
stock of equipment so
that no time should be
wasted due to damage
of equipment.
Theft of
equipment
High Medium This risk can be
caused due to
negligence of
supervisor and lack
of security.
AF Plc. must install
security cameras at the
plant site so that
equipment and staff
both can be protected
(Nicholas and Steyn,
3

2017).
Shortage of
labour
Low High This risk can occur
due to absenteeism of
labour.
AF Plc. should hire
workers through a
contract labour so that
that contracted
company can be held
liable for adequate
labour force.
Shortage of raw
material
Medium Low Wastage of raw
material
A separate supervisor
will be allotted who
will work to ensure
raw material re order
on time.
Shortage of
financial
resources
Low High This risk can occur
due to various causes
which are theft of
money, usage of
additional labour or
raw material,
contingent expenses
and many more.
If this risk occur, it
will high impact AF
Plc.’s project of TTF.
To mitigate this risk,
AF Plc. must develop
reserves which can be
used for contingent
situations (Peterso and
et.al., 2011).
Safety hazard
which lead to
labour accidents
Low Medium Negligence of
employees and
technical
malfunctioning.
Every employee must
have an insurance
policy for workplace
accidents.
Change in
political policies
Low High Political and
economic situations
in business
environment
AF Plc. must acquire a
license for their
project so that no
issues can impact this
4

(Reschke and
Schelle, 2013).
project. For any other
contingent situation,
reserves of time and
finances can be
developed.
Natural calamity Low High This risk can be
caused due to
environmental
change which can
result into
earthquake, flood,
heavy rains and many
more.
In order to mitigate
this risk, AF Plc.
should procure an
insurance against
natural calamity. Also
this company should
include a clause in
their contract with
TTF Plc. that any
damage and delay due
to natural calamities
will not be suffered by
AF Plc.
Planning and costs (Question 2)
(a) Preparing a network diagram showing the critical path
AF Plc. has contracted with TTF Plc. for developing their automation plant. For this
project, it is important for AF Plc. to develop a network diagram from which they can identify a
critical path. It must be considered that critical path is a path having all critical activities which
are crucial to be completed on time in a project and delay in any of these activities will surely
result in delay of the entire project.
(Shimizu, 2012)
5

Using the software application of Microsoft Project, a network diagram is developed in
which critical path is highlighted. Float is a concept of project management which presents the
difference between Early strat time or Early finish time and Late start time or Late finish time.
The non critical activities of this project does not have a different late and early dates due to
which there is no float.
(b) Preparing a Gantt chart
Gantt chart is a presentable way of recording expected time of the each activity of a
project. This tool of Gantt chart is used for the project of automation plant from which it has
been identified that this project is expected to be completed on 14 August 2020. This expected
date is restricted to the constraints provided and any change in the activities or external factors
can create a variation in this completion date.
Task
Name Notes Duration Start Finish Predecessors
PI Project Initiation 1 wk Mon 08-
07-19
Fri 12-07-
19
A Commission Design of Factory 3 wks Mon 15-
07-19
Fri 02-08-
19 1
B Commission outline Design of Automation
Equipment 2 wks Mon 15-
07-19
Fri 26-07-
19 1
C Commission outline Design - Inverter Product 1 wk Mon 15-
07-19
Fri 19-07-
19 1
D Detailed design of Factory 8 wks Mon 05-
08-19
Fri 27-09-
19 2
E Detailed design of Automation Equipment and
Inverter Product 8 wks Mon 29-
07-19
Fri 20-09-
19 3,4
F Commission and develop Software for
Automation equipment and Inverter Product 10 wks Mon 23-
09-19
Fri 29-11-
19 6
G Manufacture Automation equipment 10 wks Mon 23-
09-19
Fri 29-11-
19 6
6

H Manufacture Modular Factory Units 9 wks Mon 30-
09-19
Fri 29-11-
19 5,6
I Transport and Construct Modular Factory on
site in Germany 8 wks Mon 02-
12-19
Fri 24-01-
20 9
J Test Automation equipment 6 wks Mon 02-
12-19
Fri 10-01-
20 7,8
K Transport Automation equipment to New
Factory 4 wks Mon 13-
01-20
Fri 07-02-
20 11
L Install Automation equipment in New Factory 6 wks Mon 10-
02-20
Fri 20-03-
20 10,12
M Install Software for Automation equipment 4 wks Mon 23-
03-20
Fri 17-04-
20 13
N Install software for Inverter Product Line 5 wks Mon 20-
04-20
Fri 22-05-
20 7,14
O Test Inverter Production line 6 wks Mon 25-
05-20
Fri 03-07-
20 14,15
P Handover and Train TTF engineers in
Automation process and Product production 6 wks Mon 06-
07-20
Fri 14-08-
20 16
PC Project Close out 0 wks Fri 14-
08-20
Fri 14-08-
20 17
7

(c) Calculating project Budget and the projected Net profit for the contract
A budget is a financial document which is used to identify the expected costs and expected
profit which an organisation can earn after completion of their business activities (Silvius. and
Schipper, 2014). In the present case, a budget for AF Plc.’s new project is developed in which
both fixed and variable costs are considered.
Fixed
cost Variable costs
Partic
ulars
Number
of
engineers
Numbe
r of
Product
ion/Tec
hnician
Total
week
s
Days
/week
Hrs Engineer
cost £/h
Staff
cost
£/h
Total
cost
for
Staff
Total
cost
of
Engin
eers
Total
cost
(B+C
) £
8

staff (B) (C)
Initial
invest
ment
58.5
X 0.2 0 0 1 0 0 0 0 0 0 0.00
A 2.8 10 5 3 5 8 69 39 £23,4
00
£82,8
00
£106,
200
B 1.6 10 5 2 5 8 69 39 £15,6
00
£55,2
00
£70,8
00
C 1.5 10 5 1 5 8 69 39 £7,80
0
£27,6
00
£35,4
00
D 3.8 10 5 8 5 8 69 39 £62,4
00
£220,
800
£283,
200
E 5.4 20 10 8 5 8 69 39 £124,
800
£441,
600
£566,
400
F 3.4 10 5 10 5 8 69 39 £78,0
00
£276,
000
£354,
000
G 6.5 20 50 10 5 8 69 39 £200,
000
H 4 30 40 9 5 8 69 39 £561,
600
£745,
200
£1,30
6,800
I 3.5 10 60 8 5 8 69 39 £748,
800
£220,
800
£969,
600
J 2.2 8 20 6 5 8 69 39 £187,
200
£132,
480
£319,
680
K 2.5 10 5 4 5 8 69 39 £31,2
00
£110,
400
£141,
600
L 3.1 25 50 6 5 8 69 39 £468,
000
£414,
000
£882,
000
M 2.2 10 5 4 5 8 69 39 £31,2 £110, £141,
9

00 400 600
N 2.7 10 6 5 5 8 69 39 £46,8
00
£138,
000
£184,
800
O 2.1 6 20 6 5 8 69 39 £187,
200
£99,3
60
£286,
560
P 1.2 6 16 6 5 8 69 39 £149,
760
£99,3
60
£249,
120
PI 0 0 0 0 0 0 0 0 0 0 0.00
Total 48.7 £6,09
7,760
Add:
other
staff
cost*
£462,
250
Less:
Christ
mas
off
10 60 2 5 8 69 39 £55,2
00
£187,
200
£242,
400
Total 48.7 £6.31
M
Total
costs
(£48.
6M +
£6.31
M)
£54,9
17,61
0
Plann
ed
profit
(58.5-
3.59
10

£54.9
1M
Bonu
s for
early
compl
etion*
*
2.1
Gross
profit 5.69
Less:
Surpl
us to
TTF
Plc.**
*
£1,42
0,597
.5
Net
profit
£4,26
1,792
.5
Working notes:
Other staff cost*
Project
manager
Project
planner
Rate
£/Week
No. of
weeks Total cost
2 2 5,500 17 £93,500
1 1 2,000 40 £80,000
Commercial
Manager
1 2,750 17 £46,750
2 2,750 44 £242,000
11

£462,250
Bonus for early completion**
Number of days of early completion 42
Bonus for each day of early
completion 50000
Total bonus 2100000
Surplus to TTF Plc.***
Surplus £5,682,390
50% to client in excess of 50% of the surplus
amount £1,420,597.5
After considering every aspect including bonus and surplus, it has been identified that the
AF Plc. is expected to earn net profit of 4.26 million. There are few critical activities which can
impact the budgeted costs and income adversely; these activities are manufacture automation
equipment and manufacture modular units.
Managing progress and spending (Question 3)
(a) Creating a TABLE comparing the planned progress against the actual progress values
After 17 weeks of starting date, an internal audit was conducted in AF Plc. from which
actual process of few tasks was identified. This actual process is compared with planned progress
and presented in a table below:
Comparison table
Tasks Planned progress Actual progress
PI 100% 100%
A 100% 100%
B 100% 100%
C 100% 100%
D 100% 80%
E 100% 100%
F 60% 35%
G 60% 35%
12

H 56% 50%
(b) Producing a revised Gantt chart and identifying the new completion date
Using the actual progress, developed Gantt chart is now revised and developed below:
13

From the above figures, it has been seen that due to delay in few activities’ progress, the
overall duration of the project has been chnaged. The chnaged completion date for new
engineering automation plant is 2nd October 2020. This completion date has passed the target
completion date which was 25 September due to which now AF Plc. will no longer entitled to a
bonus and will suffer a penalty of 700k which is 100 k for each day of delay.
Earned Value Analysis and Acceleration (Question 4)
(a) Create an Earned Value Analysis table
Earned value analysis is the process of analysing planned and actual costs of activities
from which an estimated earned value is generated. This process will help AF Plc. to analyse
their TTF’s project by providing a suitable earned value (Thiry, 2015).
An EAV table is developed below along with calculation of CPI and SPI.
14

(b) Earned Value Analysis computations
Projected completion date using EVA:
ECD = start _ date + ED (Valle and O'Mara, 2015)
8th July 2019 + ED
ECD = 02 October 20
Projected final spend using EVA:
£M
Budget at Completion (BAC) 58.5
Actual Cost (AC) 54.91
Planned Value (PV) @ 90% 52.65
Earned value 58.5
CPI (EV/AC) 1.06538
Estimate at completion (EAC) BAC/CPI 54.91
Original contract value 58.5
EAC 54.91
Projected net profit 3.59
15

By analysing the above values, it has been evaluated that both the estimated and
contracted values are different.
(c) Recommendations
By considering the above discussion “Option G” is recommended to AF PLC that is the
manufacturer of the automated equipment that is identified as the quicker manufacturing process
in which company can save its precious time that is around three weeks but in return of the cost
of £105,000 per week. It is the American manufacturing pattern by which machine tools and
automation go hand in hand. It is beneficial for company as the manufacturing functions
considering the material handling product forming welding grinding cleaning packaging and so
on are accomplished with the use of computer controlled and automatic machinery. This system
is partially managed and supervised by the production manager and totally automated and
operated without any human support beyond the initial programming and required maintenance
(Zulch, 2014). The purpose of this system is to design and develop the specific series of task for
service in order to operate in more synchronised procedure regarding the production line and
rotation. Away with this it is fully controlled by the computer system in order to make sure the
time delivery of material to the each and every station fodder manufacturing procedure. This
item is more conveyed by the steps as the progressive operations in order to create a finished
product. In terms of this it include various factors like assembly line considering the formation
welding, cutting, punching, bolting, screwing, coating and so on. Along with this glass and
plastic components is the mixture of melted blown cooled clean injection molded and packaged
in more synchronous factory automation procedure.
16

REFERENCES
Books and Journals
Braunovic, M., Myshkin, N.K. and Konchits, V.V., 2017. Electrical contacts: fundamentals,
applications and technology. CRC press.
Edwards, G.T., 2013. Project Management Fundamentals: A practical overview of the PMBOK.
Blue Crystal Press.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kroenke, D. and Auer, D.J., 2012. Database processing: fundamentals, design, and
implementation/David M. Kroenke, David J. Auer. Boston: Pearson,.
Leach, L.P., 2014. Critical chain project management. Artech House.
Lussier, R., 2011. Management fundamentals: Concepts, applications, skill development.
Cengage Learning.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Taylor & Francis.
Peterson, F. and et.al., 2011. Teaching construction project management with BIM support:
Experience and lessons learned. Automation in Construction, 20(2), pp.115-125.
Reschke, H. and Schelle, H. eds., 2013. Dimensions of project management: fundamentals,
techniques, organization, applications. Springer Science & Business Media.
Shimizu, M., 2012, October. Fundamentals of Program Management: Strategic Program
Bootstrapping for Business Innovation and Change. Project Management Institute.
Silvius, A.J. and Schipper, R.P., 2014. Sustainability in project management: A literature review
and impact analysis. Social Business, 4(1), pp.63-96.
Thiry, M., 2015. Program management. Ashgate Publishing, Ltd..
Valle, M. and O'Mara, K.J., 2015. Adaptive Project Management: A Classroom Exercise to
Explore the Fundamentals of Agile (Scrum). Journal of the Academy of Business
Education, 16.
Zulch, B.G., 2014. Communication: The foundation of project management. Procedia
Technology, 16, pp.1000-1009.
Online
Iron triangle parameters, 2018. [Online]. Available thorugh:
<https://medium.com/@harpreet.dhillon/iron-triangle-triple-constraints-of-project-
management-e818e631826c>
17

PART B - REFLECTIVE ESSAY
Reflective Essay
From the discussion of above part ask register is prepared by considering the risk factor
that can be occur and the duration of project and its estimated impact is also evaluated which
describe the success and failure of project. By considering the risk register and the risk factors
my probable skills are determined in which I am lack I need some sort of improvement for the
successful execution of project. In terms of this I need to critically make probable development
for my skills that are useful for my career development and betterment. The lack of these skills
can also impact the performance and functioning of my subordinates that leads to decrease the
reputation and production procedure of company as well. In terms of this I am quite good in
conflict resolving, problem solving and guiding individuals. Meanwhile my weakness is
considered the communication skills, managerial skills and team working skills as these order
skills that should be present in order to perform the project and event in smoother manner that
leads to develop effective operational activities and successful implication and running of
project. Moreover in order to enhance skills a personal development plan is prepared to improve
skills.
Personal Development Plan
Development
areas
Objectives Success Criteria Actions Implementation
Communication
skills
In order to
develop this
skill, my overall
objective is to
become more
competent and
capable enough
to easily
communicate
with other
individuals as it
In terms of this,
my success
factor is depends
on my
performance
level and the
satisfaction level
of my
subordinates that
are being happy
with my
To enhance and
improve this
skill, I need to
develop and
maintain proper
communication
in relation with
other individuals
that is more
beneficial for me
towards my
To develop it, I
need to talk with
many people that
are in my
surroundings as
these are the one
who can initially
motivate me and
does not judge
me on the basis
18

leads to develop
confidence in me
that is better for
my career
development and
successful
completion of
project.
performance and
feel connected
with me during
the project.
Performance is
judged by top
authority and my
supervisors.
career
development and
betterment of
project as well.
of my failure.
Managerial
skills
For this, overall
objective is to
develop and
create better
understanding
regarding the
management and
enhance the
knowledge about
whole system
and managerial
strategies and
policies.
In terms of this
the success
criteria are
determined by
the top level
management and
my immediate
supervisor who
support and
guide me
throughout the
whole
development
process as leads
to develop
motivation and
boost morale of
me to perform in
more efficient
manner.
In context of this,
I need to attend
so many sessions
and workshops to
develop these
skills. Also
attend
appropriate
training sessions
that leads to
develop and
enhance my skill
and guide my
towards my
career
development.
To improve this
skill, I need to
opt prominent
practices like
attending suitable
lectures and
classes to
develop this skill
and develop my
knowledge
regarding that
specific area and
practice.
Team working
skills
In context of this,
my overall
In terms of this,
the success
To develop this
skill, I need to
In order to
develop this skill,
19

objective is to
collectively work
in a team and
make other
associate to work
in more suitable
manner that is
helpful in
achieving more
effective goals
within the
stipulated goals
and objectives.
criteria are
judged and
determined by
my team
members other
concerning team
associates for the
betterment of me
and for those
who works with
me as well.
hold patience in
me and calmly
react on each and
every situation
and deal with my
associates in
more polite way
as it leads to
develop
satisfaction
among them.
Moreover, it is
useful for me in
achieving
prominent goals
and objectives in
specified period
of time.
I should work
with many
individuals in a
group or team as
because of this I
can develop
patience in me
that tends to
develop the
feeling of
coordination and
cooperation in
me.
20