Fundamentals of Project Management

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.
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(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
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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,
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