Fundamental of Project Management

The report provides a comprehensive project management analysis that addresses all important elements of project management and helps define the value of project management activities within an enterprise. This report is drawn up on the basis of the Automation Futures case study. At the other side, there is a reflection in this report which explains a description of experience and issues in this aspect.

FUNDAMENTAL
OF
PROJECT
MANAGEMENT

EXECUTIVE SUMMARY
The report provides a comprehensive project management analysis that addresses all
important elements of project management and helps define the value of project management
activities within an enterprise. This report is drawn up on the basis of the Automation Futures
case study. At the other side, there is a reflection in this report which explains a description of
experience and issues in this aspect.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1. Parameters and Risk of the company...........................................................................................4
(a) Iron Triangle Parameters.......................................................................................................4
2. Planning and Costs...................................................................................................................10
(a) Network Diagram...............................................................................................................10
(b) Gantt Chart..........................................................................................................................11
(c) Net profit of the contract...................................................................................................12
3. Managing progress and spending:..........................................................................................13
(a)...............................................................................................................................................13
(b)..............................................................................................................................................15
4. Earned Value Analysis and Acceleration:...............................................................................19
(a.)..............................................................................................................................................19
(b)..............................................................................................................................................22
(c)...............................................................................................................................................22
PART B.........................................................................................................................................22
Reflective Essay........................................................................................................................22
CONCLUSION................................................................................................................................22
REFERENCES..............................................................................................................................24

INTRODUCTION
Project management is a practice of coordinating different types of tasks to meet the
corporate organization’s goals (Samset and Volden, 2016). It is a method to enable, evaluate and
track the actions of a given mission. The project report is based on an organization which is
Automation Future; company began a new initiative in order to grasp the principle of project
management. This report deals with all the roles and tasks performed during the project
management and how administrators address the challenges and risk evaluation methods of the
project manager methodology for decision-making.
TASK 1
1. Parameters and Risk of the company
(a) Iron Triangle Parameters
Automation Futures use their business pattern iron triangles and project management
triangles. The success of an organization relies largely on the way it utilizes its money in the
management of programs (Padalkar and Gopinath, 2016). For announcements of digital
technology ventures, project size, project efficiency and length are several important constraints
for the triangle of ventures. Methods and strategies must be utilized to successfully implement all
theses in order to accomplish the project objective. By developing the budget for this project, the
quality of this project can be preserved. The constraints of this project TTF PLC are as follows:
Projects implemented at fixed and variable costs on a realistic basis. AF PLC will then carry out
testing on the basis of customer preference. It is carried out in small sections to be shipped on
time and must be tracked on schedule.
 Fixed time- When customers expect a product to be completed within a particular date,
tasks will be performed in an absolute sequence of business interest. Set period to pass
the job with an end date is reached (Muriana and Vizzini, 2017).
 Fixed Scope- When work is to be carried out as stated, time and costs are set flexibly for
production. This work standard is maintained.

 Fixed cost and scope- In these situations when flexibility is given to the date of
production where a fixed cost and fixed collection of deliverable is required. Increased
disruption is used to reduce unexpected delays (Lіubchenko, 2018).
 Fixed cost and time- When the project is anticipated to fixed expense and time, other
factors should be versatile in this case. To these projects, price and time are limited.
 Fixed time and Scope- When a fixed set of materials is to be made accessible in a
limited period and free of charge and the money paid on the project is not limited. A
schedule is drawn out and carefulness is taken to reduce and track unforeseen costs
(Zheng, Le, Hu, and Li, 2016).
(b) Risk Register
Risk Management Register for XYZ Project
Risk Identification Assessment Response Monitoring and Control
Ref
eren
ce
Even
t
Cause Effect Pro
bab
ility
Im
pa
ct
P
x
L
St
ra
te
Trigger Action Resp
onsib
le
Revi
ew
Freq
Status date and
general notes

gy perso
n/s
uenc
y
1 Lack
of
fundi
ng
Fund
Constra
ints-
allowan
ce in
case of
uncerta
inty or
shift
Projec
t
delaye
d
4 5 20 Mi
tig
ate
When
the
proposal
is
announc
ed, the
project
plan do
not
receive
the
amount
of
funding
Execute
another phase
of fundraising
to obtain
funding from
all parties
concerned,
including the
Executive
Sponsor.
Proje
ct
Mana
ger,
Exec
utive
Spon
sor
Mon
thly
23.11.16
Register updated.
Alternative
funding sources
identified
2 Unde
r
budge
ting
Unpred
ictable
conditi
ons
contrib
uting to
high
losses.
Low
amoun
t of
profit
or
may
cause
loss.
5 6 30 Go
od
est
im
ati
on
Estimate
s of the
project
manager
was
incompe
tent
Better
analysis and
scope of
factors.
Proje
ct
mana
ger
and
empl
oyee.
Mon
thly
27/11/16
3 Time
estim
ation
Task
not
compil
e as
planned
Lag in
the
project
finishi
ng
6 4 24 An
aly
sis
The
manager
makes
an
inaccura
Any activity
to be done on
time needs to
be properly
Proje
ct
Mana
ger
After
com
pleti
on of
an
29/11/16

and
anticipa
ted.
proces
s.
te
estimati
on for
completi
on of
the
operatio
n.
reviewed. activ
ity
4 Uncer
tain
event
s
Not
previou
sly
predict
ed
circums
tances
occur
Distra
ction
of the
project
5 5 25 Mi
tig
ate
the
eff
ect
Manage
r of the
project
will not
make
predicti
ons.
To minimize
adverse
effect, take
all corrective
measures.
Proje
ct
mana
ger
and
team
mem
bers
Whe
n
requi
red
02/12/16
5 Uncle
ar
specif
icatio
ns
Due to
unclear
or
improp
er
project
intent
Qualit
y of
work
is
compr
omise
d
4 5 20 De
vel
op
in
g
we
ll
sp
eci
fie
d
pr
oje
Clear
require
ments
for the
project
tasks are
not
establish
ed by
the
project
manager
.
Take each
phase for
analysis in
order to every
these
conditions.
Proje
ct
mana
geme
nt
team
With
each
activ
ity
02/12/16

ct
6 Negli
gence
Lack of
Time to
finish
the
project.
Failur
e of
the
project
5 4 20 Re
qu
ire
d
co
nsi
de
rat
io
n
ne
ed
s
to
be
pr
ov
ide
d
Leaders
should
not owe
their
work a
specific
priority.
Every activity
must be
undertaken
according to
the intended
goals and
priorities.
Team
mem
bers
of the
proje
ct
For
each
activ
ity
05/12/16
7 Tech
nical
risk
Withou
t the
technol
ogy
require
d
Failur
e to
succee
d or
develo
p over
time
6 5 30 Ch
ec
ki
ng
tec
hn
ica
l
via
Project
manage
ment
planner
made
the
incorrec
t
professi
Instead and
probably
finishing the
project.
Risk
mana
ger
Mon
thly
07/12/16

bil
ity
onal risk
assessm
ent.
8 Cost
mana
geme
nt
Wrong
cost
predicti
on.
Large
expens
es and
special
financi
ng
conditi
ons.
4 4 16 Ac
cu
rac
y
The
project
manager
does not
develop
proper
analysis.
Ensure the
funds are
sufficient and
raising the
allocation
(Paul,
Bhuimali,
and Aithal,
2017).
Proje
ct
Mana
ger
Quar
terly
15/12/16
9 Chan
ge
mana
geme
nt
Wrong
predicti
on for
the
project
High
amoun
t of
variati
ons
6 5 30 M
an
agi
ng
ch
an
ge
The
manage
ment
team
will not
work as
expecte
d due to
inaccura
te
forecast
(Ercan,
and
Khan,
2017).
Ensure plan-
based
forecasts.
Mana
geme
nt
team
Mon
thly
25/12/16
10 Com
muni
Non
establis
chang
es in
5 5 25 Ef
fec
At
increasi
Having an
effective
Mana
geme
At
each
25/12/16

cation hment
of
commu
nicatio
n
channel
curren
t and
requir
ed
output
.
tiv
e
co
m
m
un
ica
tio
n
ch
an
nel
ng point
of the
project,
manage
ment
does not
commun
icate
clearly.
networking
network
require all
necessary
measures.
nt
and
team
mem
bers
stage
of
the
proje
ct
2. Planning and Costs
(a) Network Diagram
A network diagram describes all the tasks carried out by AF PLC in the execution of the TTF
PLC software. By the group description and task cycle, roles are shared between the various
programs. The diagram is made up of a set of boxes describing the events and a chain of arrows
showing the acts. The network diagram specifies a series of steps that define the total period
needed for the project to be completed.

Project management network diagrams provide a graphic depiction of a project schedule. The
PERT and Gantt maps are widely known additions to network diagrams. In project preparation
and monitoring from start to finish, a network diagram in project management is helpful
(Parthasarathi, Reddy and Rao, 2017). This is the vital direction of a project and the reach of the
project. The Project Network Diagram demonstrates, graphically or tabular, the length of the
tasks, the time span of the task and the conceptual dependency of the tasks. Contrary to the
WBS, the sequential sequence of operations based upon their dependences and not just the
conceptual sequence of the project's tasks are taken into account in the network diagram as well.
Special type of Network Diagram Bar charts such as Gantt charts
(b) Gantt Chart
A Gantt graph is a bar graph that displays a timeline of the project. The diagram shows the
functions on the vertical axis and periods on the horizontal side. During growing operation, the
width of the horizontal bars is seen in the graph (Huffman and Grubbs, 2018). Tablets in Gantt
identify the starting and end dates of the terminal elements and description project components.
The job breakdown framework for the project comprises of terminal elements and description
elements. Modern Gantt diagrams also display the relationships between behaviors with
dependency (i.e. precedence network). The Gantt Project Map for TTF PLC describes the
amount of time required to complete each operation. This way it would define the goal starting
date to enable the project to finish on schedule or not (Locatelli, Sainati and Greco, 2017). AF
PLC will begin this technical project on 8 July 2019 and conclude it on 6 July 2020. The closing
deadline for this phase is 25 September 2020 and the final delivery deadline is later. It tends to
recognize when the client would finish the project in progress and early completion benefits as
stated in the project contract.

(c) Net profit of the contract
Net profits are an indicator of a company's performance in industry and in accounting. The
income of the company is less prices of the products being produced, investments, depreciate-
repayments, debt and taxes for the duration of accounting. The amount of the project net benefit
value is that for the delegated expenditure in the estimation phase (Martens and Carvalho, 2016).
The project is finished in excess of the period given to delivery, which offers AF PLC a payment

(Pillay, 2018). As stated in the contract with the project, a fee of £50K is received until the end
of the project. If AF PLC progresses in the business within the period allotted for the business, it
creates a far larger projected income for the company. This incentive is applied as a benefit in the
cycle of measuring net income for the business. It is agreed that a minimum of GBP 13.85
million is obtained by project completion 81 days previous to the date of project completion as
allocated under the contract for the net revenue estimate. Earlier completion brings company
income and greater benefit is created by the enterprise (Carvalho and Rabechini Jr, 2017).
Calculation of Net profits
Particulars Amount in millions(£)
Budgeted price of the project 58.5
Profits through early completion of the project (81 days * 50k) 4.05
Total revenue 62.55
Less: Cost of the project 48.7
Net profit 13.85
3. Managing progress and spending:
(a)
Because it's simple to make, use and track Gantt charts are useful. A Gantt Map, in the simplest
possible form, is an outline of how far the project will progress down the project management
route. The timeframes is also useful when organizing and managing activities that allows project
managers and team leaders to determine how long a team could take, to identify the required
resources, to look at meetings and to coordinate how each task will be completed to finish the
entire project on time (Aragonés-Beltrán, García-Melón and Montesinos-Valera, 2017). Gantt

map is continually updated as the project continues, displaying an up-to-date schedule date to
accommodate the improvements of everyone (teams, customers and stakeholders). Furthermore,
Gantt maps cover meetings and improve other development analyses. This promotes the cycle of
managers' job and the consideration of the problems we face.
Here in the Table and Gantt Chart it has been analyzed that Tasks PI, A, B, C, and E were
currently accomplished after 17 weeks but to date, Tasks D, F, G and H indicate real
improvement of 80%, 35%, 35% and 50%. The project will be completed within 17 weeks as per
the planned estimates. This project delay contributes to higher operating costs. The table below
includes differences between real and planned spending for each function as follows:
Comparison Planned vs Actual
Task Description
Total Actual
Expenditure
incurred to date
(£ m)
Planned Total
Expenditure up to
date (£ m)
Variations
(£ m)
PI Project's Initiation 0.2 0.2 0
A
Commissioning Designing of
Factory 2.91 2.8 0.11
B
Commissioning outlining
Designing of Automation
Equipment 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
5.97 5.4 0.57

Product
F
Commission and develop
Software for Automation
equipment and Inverter Product 1.32 3.4 -2.08
G
Manufacture Automation
equipment 2.76 6.5 -3.74
The table analysis indicates that there is little difference in the initiation project mission,
indicating that a project is launched with expected costs of 0.2 million. The detrimental
difference in Task F and Task G is that the expected budget is smaller than the real overall
spending of 2.08 and 3.74. Although differences in Tasks A, B, C, D and E are significant, this is
not a desirable indication (0.11, 0.12, 0.03, 0.28 and/or 0.57). As the positive value of such
differences indicates, expected numbers are fewer than actual numbers. The over-costing in these
projects shows that the existing project needs to be updated. Tasks that display inefficiency in the
current project are not achieved in the expected estimates. Project management will concentrate
on projects where real results and resources surpass the expected period and results (Shinoda,
2019).
(b)
Since before the estimate revision, the overall project expenditure would be 49.885 million
pounds in compliance with the different tasks per choice. The net income from this increase
would naturally be influenced by a fall of 1.185 million pounds. Below are the checked project
assignments table and Gantt chart:
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
and Product production
4 1.235
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
0
460
000
0
610
000
0
914000
0
145400
00
157300
00
180050
00
200050
00
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
It has been calculated from above that the CPI or cost efficiency index following the PI function
is below 1 which is an unfavorable indicator for cost viability of a project. If the system output
index or SPI in tasks D, E, F, G and H is less than 1 it indicates that it is not true to the figure
according to task c project plan. In fact, projected project execution costs are constantly on the
rise, which is an indication of the need to update the proposal. Complete review reveals that this
project is not in accordance with the estimates given or expected (Lakemond, Bengtsson,
Laursen and Tell, 2016).

(b)
The completion date is 06/07/2020 based on the previously projected estimates which comes
before the anticipated deadline of 25/09/2020. Business with current schedule will finish the
whole project within a specified time period, but expenses have been inflated by early project
completion, which resulted project loss. Nonetheless, if a business is willing to reduce operating
expenses and rise estimated income figures there are some choices, although the deadline of
implementation would often shift on 14/08/2019 concurrently. The adjustment to the end date
has triggered the lack of incentives that could be received early in the void (Kato and Koshijima,
2016).
(c)
The assessment of multiple alternatives and the main plan recommended here that the original
project strategy should be workable for business without contemplating alternatives (Whyte, J.,
Stasis and Lindkvist, 2016). As the date of implementation will be 14 Aug, 2020 following
acceptance of the options and 6 July 2020, after the initial schedule has been implemented. Here
it is notable that in the contract for a project there is a penalty provision portion. In this
arrangement, AF PLC is obligated to compensate the TTF liquidated damages of pound 100 K a
day for a part-day interval until a project is finished i.e. 25/09/2020. If the project is completed
early enough, the client can earn a payment of £50k a day. And if the organization adopts the
initial strategy by considering the alternatives, the project would finish sooner, enabling the
business to recover the loss resulting from the current program by demanding incentives early.
PART B
Reflective Essay
Project management is most important aspect in which practice related to initiation, plan,
execution, control and closure of work is done in order to accomplish organizational goals as
well as objectives in a well-defined manner. Completion of project in time effective manner is
one of the most important aspect that are required to be effectively done in order to manage risk
that are associated with project. In order to conduct effective project management it is essential
to carry out different type of activities in a feasible manner. As AF PLC project manager, this

has been identified that there are number of issues and obstacles that were faced by me. In this
technical problems pose major difficulty in front of me that restrict to accomplish project in time
effective manner. In addition to this it has been evaluated that there were different type of
problems as project was started by a wide team and none of the member hold particular
accountability for project activities. This has been evaluated that as an AF PLC is a leading
organization. Thus, it is essential to ensure that every worker is accountable for their role and
responsibility, as it is most important element to accomplish project in a best effective manner.
Being a project manager I face different type of issues that was overcome by me with the
help of some certain elements that further encourage me to accomplish project in a well effective
manner and encourage me to conduct my role as a good project manager.
Effective Communication-
It is important to ensure that there is an effective communication prevails in workplace
structure among team members. As it allow individual to have proper understanding of their
roles and responsibility. With the help of good communication actual roles get communicated to
each and every individual and essential information is provided to them in time effective manner.
With the application of best communication skill in AF PLC process, problems and issues that
arise in team members can be resolved in effective manner that further lead towards effective
accomplishment of organizational goals.
Good decision maker
Being a project manager it is essential for me to be a good decision maker. In this I undertake
decision as per according to the prevailing situation. Further it has been evaluated that all the
decision that I will undertake pertain towards PLC TTF. By undertaking effective decision in
time effective manner ensure positive outcome that will further strength and efficiency of project
in a well defined manner.
Technical Expertise
This is most important aspect in context with respective organization as this entity
perform their services as a construction consulting service. Thus this make essential for me to
ensure proper technical expertise in order to accomplish project with great efficiency. It has

been evaluated that by taking assistance of wide technical expertise and tools effective execution
of project can be ensured that further increase my technical expertise at great extent
Leadership skills
This is one of the most important and essential skill with the help of which I can
effectively able to encourage other team members towards organizational objective. Leadership
skill allows me to encourage behavior of workers towards organization mission that further aid in
fulfillment of entity goals in a well defined manner. In addition to this it has been evaluated that
with the use of effective leadership skills I can ensure my roles and responsibilities in a well-
defined manner and can further fulfill my goal as effective project manager. Thus, this skill is an
essential aspect that not only strengthens efficiency of project but also increase motivation
among employee in a well defined and effective manner.
As per the above mentioned discussion it has been evaluated that as a project manager I
have responsibility successfully initiate, plan, design, execute, monitor and control project in
order to fulfill goals and objective of company. In this I have most important role to developed
effective time frame and understand budget as to fulfill project as per according to organization
set standards. In addition to this that has been determined as a successful project manager there
are multiple responsibilities that I have that are required to be effectively fulfilled by me. With
the help of different elements I can effectively able to increase employee’s performance with
perfect guidance and accomplish organizational goals in well effective manner.
CONCLUSION
It has been demonstrated from the above report that project management is important as it
means that the right tactical goal execution strategy is in effect. It permits management to retain
efficient control of different projects as it offers detailed project information such as task
description, time span, and number of employees and the date of completion of each task. Unless
well planned projects, it is genuinely impossible to establish scheduling goals and project
delivery timelines that are overly optimistic or ignore equivalent project estimates. By fact, this
means both late over-expected tasks.

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