Project Management Research Assignment

This research assignment delves into the crucial relationship between project management performance and overall project success. Students are tasked with analyzing various research papers that investigate this connection, drawing insights from their findings and applying them to real-world scenarios. The assignment emphasizes understanding key project management concepts and evaluating their impact on achieving desired project outcomes.

Project Management

Table of Contents
SECTION 1: PURPOSE OF THE PROJECT ................................................................................5
1.1 Introduction .....................................................................................................................5
1.2 Purpose of the project.......................................................................................................5
1.3 Benchmark........................................................................................................................5
1.4 Project plan.......................................................................................................................5
1.5 Benefits of the project plan ..............................................................................................5
1.6 Limitations of project plan...............................................................................................6
1.7 Application.......................................................................................................................6
1.8 Project scope ....................................................................................................................6
1.9 Benefits of scope .............................................................................................................6
1.10 Limitations of scope ......................................................................................................6
1.11 Application.....................................................................................................................7
1.12 Conclusion .....................................................................................................................7
SECTION 2: ANALYSIS OF THE BUSINESS ENVIRONMENT ..............................................8
2.1 Introduction .....................................................................................................................8
2.2 PESTLE analysis..............................................................................................................8
2.3 Benchmark British Petroleum PESTLE analysis.............................................................8
2.4 Benefits of PESTLE analysis ........................................................................................10
2.5 Limitations of PESTLE analysis....................................................................................10
2.6 Application ....................................................................................................................10
2.7 Information/ research .....................................................................................................11
2.8 Benefits of information/ research ..................................................................................11
2.9 Limitations of information/ research .............................................................................11
2.10 Application ..................................................................................................................11
2.11 Stakeholder's analysis ..................................................................................................12
2.12 Benefits of stakeholder analysis...................................................................................12
2.13 Importance of stakeholder analysis .............................................................................12
2.14 Constrain analysis ........................................................................................................12
SECTION 3: RISK MANAGEMENT ..........................................................................................13
3.1 Introduction ...................................................................................................................13

3.2 Risk analysis and control ...............................................................................................13
3.3 Sources of risks...............................................................................................................13
3.4 Force field analysis ........................................................................................................14
3.5 Risk control ...................................................................................................................14
3.6 Risk response..................................................................................................................14
3.7 Assessment of the risk ...................................................................................................14
3.8 RACI resource ...............................................................................................................15
3.9 5 M's of management ....................................................................................................16
3.10 Application ..................................................................................................................17
SECTION 4. ROBUST COST BENEFIT ANALYSIS ...............................................................17
4.1 Introduction ...................................................................................................................17
4.2 Smart objectives ............................................................................................................17
4.3 Application ....................................................................................................................18
4.4 Cost-benefit analysis......................................................................................................18
4.5 Cost breakdown .............................................................................................................19
4.6 Project forecast ..............................................................................................................19
4.7 Return on investment .....................................................................................................19
4.8 Payback period ..............................................................................................................20
4.9 Benefit of payback period .............................................................................................20
4.10 Limitations of payback period .....................................................................................20
4.11 Break even ...................................................................................................................20
4.11 Conclusion....................................................................................................................21
SECTION 5: SCHEDULING .......................................................................................................21
5.1 Introduction ...................................................................................................................21
5.2 Work breakdown structure (WBS) ...............................................................................21
5.3 Benefits of WBS ............................................................................................................21
5.4 Gantt chart .....................................................................................................................21
5.5 Benefits of gantt chart ...................................................................................................22
5.6 Critical path ...................................................................................................................22
5.7 Project control ...............................................................................................................22
5.8 Methodology of project .................................................................................................23

5.9 Project communication plan ..........................................................................................23
SECTION 6: PROJECT TERMINATION ...................................................................................23
SECTION 7: CONCLUSION .......................................................................................................24
REFERENCES..............................................................................................................................25

Index of Tables
Table 1: Project Plan........................................................................................................................9
Table 2: Force field analysis..........................................................................................................16
Table 3: Risk assessment ..............................................................................................................17
Table 4: RACI resource.................................................................................................................18
Table 5: Cost breakdown structure................................................................................................21
Table 6: Gantt chart.......................................................................................................................24

Executive Summary
Project management includes all the tools and techniques which are used by the manager
for the completion of project. In the present report manager makes effort to assess the resources
which are required for the gas production project. For this purpose, team is formed by the
manager with 5 people. For making assessment of the viability or attractiveness of project
various measures are undertaken by the manager. In addition to this, PESTLE analysis is also
conducted by the manger by taking into account the external environment of British Petroleum as
a benchmark. From this project, it is summarized that Cardial will attain success by entering in
the gas production industry.

SECTION 1: PURPOSE OF THE PROJECT
1.1 Introduction
On the basis of the cited case scenario, Cradial oils and gas organisation of the UK and
USA is planning to take strategic move in production of gas. In order to accomplish this project
in an effectual manner, 5 people came together to undertake this project. In the first meeting,
action log is prepared and project manager is appointed by the firm. Thereafter, project manager
has assigned tasks and responsibilities to each member of the team. This activity of the project
manager ensures the timely completion of the project within suitable time period.
1.2 Purpose of the project
The main objective of this project is to make analysis of the extent to which gas
production project will prove to be fruitful for the firm. Moreover, due to high pressure in
relation to the meeting of climate target which are imposed by nations and corporations’ Cardial
oil has decided to take move in gas production (Lu, Huang and Li, 2011). In order to survive in
the strategic business arena, company has taken decision to enter in the gas production activities.
Further, another objective is to make assessment of the factors which are required for producing
the gas. In this, project management team provides assistance to the company in getting desired
outcome by recommending the more suitable ways or strategies.
1.3 Benchmark
The key purpose of this project is to attain success by making production of gas which
helps Cardial oil in reducing the amount of fossil oil. Through this, business unit is able to build
competitive edge over others. Business unit sets British Petroleum as a benchmark which
produced gas at cost effective prices.
1.4 Project plan
Project plan may be served as a document which is designed by the manager to guide and
control the members of team in the right direction. It includes and reflects coordination between
all the activities which team member needs to perform (Meredith and Mantel, 2011).
1.5 Benefits of the project plan
Project plan offers high level of benefit to team by completing the task within the
predetermined time period. It provides direction to the member of the team. Through this, each
member is able to perform his task more effectively without any confusion. It also assists

manager in making assessment of the time which is taken by the members while performing the
task as compared to the standard one. It enables him/her to undertake corrective measures or
actions within the suitable time frame. Further, it also encourages team members to accomplish
the project with the budget provided to them.
1.6 Limitations of project plan
Lack of coordination or alignment between the project objectives and organisation
strategies is one of the main factors which limit the effectiveness of the project plan. In addition
to this, project manager also needs to make changes in the plan in accordance with the market
conditions (Schwalbe, 2015). This aspect negatively affects the budget and time duration of the
project to the large extent.
1.7 Application
Project plan prepared by the manager helps in assessing the resources which are needed
for the gas production project. By this, company is able to perform its business operations and
functions in the best possible manner and thereby helps in enhancing productivity as-well-as
profitability.
1.8 Project scope
It is the main part of project planning which includes project goals, deliverable, tasks,
costs and deadlines. In the present project, team members need to accomplish the project within
the 3 months with the budget of £250,000.
1.9 Benefits of scope
Scope of the project facilitates timely completion of the project by reducing the cost and
time. Project scope provides deeper insight into team’s member about the time within which they
need to perform their tasks (Wysocki, 2011). In addition to this, scope of the project act as a
vision which encourages member to make their best efforts which make contribution in
attainment of goals and objectives. Further, it also helps in establishing effective communication
between the team and stakeholders.
1.10 Limitations of scope
One of the main limitations of the scope is that it does not provide information about the
ways through which team member will attain the objectives of stakeholders.

1.11 Application
Project team make efforts to accomplish Succinct project by taking into account the
London and USA. Other parts of the world are considered as out of scope undertakings. There
are several activities which are included in the project plan and are enumerated below:
PROJECT NAME SUCCINCT PROJECT
Purpose of the project To make assessment of the resources that are
required to produce the gas.
Name of the project manager Sam Jorz
Name of the member of the group Atif Ali, Henry Botam, Helena Bush, Jillian
Obama and Iliana Oliam.
Project achievement Reducing the amount of oil and producing gas
to meet up the climate target.
Scope of the project From London (UK) to USA
Budget £250,000
Project duration 3 months
Starting or initializing date of project 1 April 2016 to 30 June 2016.
Methodology of project Initiation, planning, designing, implementation,
monitoring and controlling.
Communication In order to communicate with the team
members, weekly meetings will be organised
by the manager. It helps to discuss the aspect
as-well-as monitor and control the progress of
project.
Risks Market and economic conditions, contingent
situations etc.
Table 1: Project Plan

1.12 Conclusion
From the evaluation of the background of the firm, it has been identified that company is
suffering from high pressure in relation to the meeting of climate target. Thus, Cardial has taken
strategic decision about the production of gas. Thus, in this, team members have responsibility to
provide ideas and suggestions about the resources which will be needed by the firm for the
production of gas. Through this, company is able to produce gas more effectively without facing
any difficulties. Further, it also helps organisation in maximising their gross revenue.
SECTION 2: ANALYSIS OF THE BUSINESS ENVIRONMENT
2.1 Introduction
This section of the project places emphasis on the factors which have high level of
influence upon the business environment. For this purpose, PESTLE analysis will be conducted
by the team members who help them in offering appropriate outcome to the business
organisation (Walker, 2015). Further, stakeholder analysis will also be conducted by the project
team that helps them in getting desired outcome or success. Along with it, this part of the project
will also describe the benefits and limitations of doing stakeholder analysis.
2.2 PESTLE analysis
PESTLE analysis represents political, economic, social, technological, legal and
environmental factors which are used by the researcher or marketer with the aim to analyse the
external factors. All these provide assistance to the marketer and project management team in
making assessment and monitoring of the external business environment. Moreover, these macro
environmental factors have high level of impact upon the growth and performance of the firm
(Leach, 2014). In addition to this, business units also have no control upon the macro
environmental factor. This framework plays a vital role in framing the competent strategies and
policies which help firm in reducing the impact of such factors. This analysis facilitates
understanding about the aspects due to which business organisation requires to introduce change
in the functions and operations. In the present project, team member undertakes PESTLE
analysis to analyse and monitor the external factors (Marchewka, 2014). Along with it, British
Petroleum which is the benchmark firm of Cardial also makes use of PESTLE analysis with the
aim to make effectual business planning.

2.3 Benchmark British Petroleum PESTLE analysis
PESTLE analysis of British Petroleum has been discussed below: Political factors: These factors place emphasis on the government policies which take
place in different parts of the world. Moreover, taxation and other policies vary from
country to another. Energy market of the world is becoming more volatile due to political
instability and changing market conditions (Boud, Cohen and Sampson, 2014). British
petroleum makes assessment of all these factors to achieve success in the new market or
country. Economic factors: There are several economies which rely upon British Petroleum for
supplying the energy. In the present era, countries make focus upon the alternative energy
sources which helps them in meeting up their needs. This aspect imposes high level of
threat in front of BP. Socio-cultural factors: Now-a-days, energy users are highly concerned in relation to the
future. In the present time, carbon funds and emission trading become a legal requirement
for the firms which operate in the oil and gas industry (Verzuh, 2015). Social factors
include cultural issue, population, growth rate and attitude of the customers having high
level of impact on the functioning of BP. Technological factors: It is also one of the main factors which closely affect the business
practices of British Petroleum. Business organisation is ready to undertake technological
aspects which help it in exploring, refining and distributing oil and gas in the market. Legal factors: According to this, company also requires to follow all the health and safety
aspects for which the UK government is highly concerned (Gido and Clements, 2014).
On the basis of this aspect, British Petroleum makes proper health arrangement for the
employees who work in the exploration, drilling, distribution and disposal of oil.
 Environmental factors: In the oil and gas industry, extraction, refining and production
work of the petroleum will result into the emission of harmful gases. Such gases badly
hamper the environment as-well-as society. In order to protect the environmental aspects,
the UK environment management system has introduced several laws which help to
control the bad effects of oil and gas corporations (Pestle analysis of British Petroleum,
2016).

Thus, companies who want to work in the oil and gas industry of the UK need to consider
all the above mentioned aspects. Thus, business unit is able to attain success in the competitive
arena by framing competent strategic framework on the basis of evaluation of macro-
environmental factors. Cardial also needs to consider all these external factors before entering in
the London and USA for gas production.
2.4 Benefits of PESTLE analysis
 This analysis helps in reducing the effect of potential threats to the great extent.
 PESTLE analysis provides assistance to the management team in assessing the
opportunities that are available to the business unit. It enables firm to make competent or
strategic framework which helps them in exploiting the opportunities.
 It also provides information regarding the implications when enterprise will transact at
national and global level.
2.5 Limitations of PESTLE analysis
 In the external environment, changes which take place in the political, economic, social,
technological, legal and environmental factors are more frequent. Thus, it is very difficult
for the management team to predict future aspects in an appropriate manner.
 Cost and time is one of the main factors which restrict the management team to make
detailed investigation of all the external factors. Moreover, project team has
responsibility to accomplish the project within the suitable time frame. Thus, PESTLE
analysis is a highly time consuming process and thereby affects the cost as-well-as time
of the project.
2.6 Application
After making analysis of the external business environment it has been identifying that
there are several components which closely influence the availability of resources. In addition to
this, it also affect the level to which company will achieve success in the strategic business area.
Moreover, in USA and UK political condition are favourable, so by entering in the gas industry
success will be attained by Cardial to the large extent. In addition this, economic conditions also
changes with the very high pace. Further, in order to producer gas in USA and UK company
needs to follow all the health and safety aspects which are framed by UK government. Besides

this, Cardial also requires to follow the practices which are framed by the government to prevent
the emission of harmful gases. Thus, company needs to consider all these aspects before entering
in the gas industry.
2.7 Information/ research
Information or research may be defined as a systematic investigation or data which is
undertaken by the researcher or management team to deal with the specific issues. In order to
carry out the project in an effectual manner, project management team requires collecting all the
information which helps them in resolving the issues of project. Through this, management team
is able to fulfil the goals and objectives of the project.
2.8 Benefits of information/ research
Information or research activity helps management team in assessing the risk which is
highly associated with the project. For instance; with the help of this, Cardial is able to assess the
risk which they will face in relation to the availability and use of resources. Through this,
business enterprise is able to frame cost effective strategies and policies. This is turn, helps firm
in downsizing the risks which are associated with the resources required for the gas production.
In addition to this, research also helps in making evaluation of competitiveness of the firm.
Further, this activity also depicts the opportunities which are present in the business environment
and threats to the firm.
2.9 Limitations of information/ research
There are several drawbacks which affects the significance of information/research. If
analysts or researchers possess lack of in-depth knowledge then, they are unable to present the
fair view of the issue or study. In addition to this, if analysts fail to employ suitable method then,
firm is unable to take effective decision that has impact on the validity and reliability of the
research. In primary research, if respondents show negative attitude during the survey then, it
limits the significance of primary research. Along with it, availability of the latest or updated
information is also one of the main factors which influence the effectiveness of the study.
2.10 Application
From research it has been assessed that government pressure is continuously increasing in
relation to the meeting of target. Thus, in in order to reduce the amount of oil which is used by

the firm for the energy production Cardial has taken decision to produce the gas. For this
production project company requires several resources. Through research it has been identified
that gas production industry is keep growing. Further, owner of Cardial will require drilling
machine and other equipment for the production of gas (Turner, 2014). Along with it, business
unit also needs to hire skilled and efficient personnel who can effectively produce the gas.
Therefore, it can be said that research offer more valuable information which aid in the growth
and profitability of firm.
2.11 Stakeholder's analysis
It may be defined as a systematic and highly structured ways to analyse the stakeholders
in context of their power and interest. According to the Mendelow’s stakeholder theory people
who account for the high power and interest are considered as key players. On contrary to this,
stakeholders with low power and interest are recognised as that they are least important for the
project. Through this process, management team is able to identify the individuals or groups who
have high level of influence upon the actions or practices of the firm.
2.12 Benefits of stakeholder analysis
 By making analysis of the stakeholders, company is able to takes an use of the most
powerful stakeholders in the completion of project (Rosenau and Githens, 2011).
 In addition to this, by gaining support from the most powerful stakeholders, company is
able to make use of the resources to the significant extent.
 Through this, corporation can easily identify the powerful and lower stakeholders who
have impact upon the activities and practices of the firm.
2.13 Importance of stakeholder analysis
 By making analysis of the stakeholders, company is able to frame competent strategies
which help them in attaining success in the near future.
 In addition to this, manager of the firm can easily access the extent to which stakeholders
have influence upon the growth and success of the firm (Hwang and Tan, 2012).
On the basis of all the above mentioned aspects, it can be stated that stakeholder analysis
plays a significant role in the field of project management.

2.14 Constrain analysis
It refers to several factors which act as a constrain in front of the firm who planning to
initiate the production of gas. Technology, transportation, unavailability of skilled personnel and
and lack of digitization in communication are the main external factors which badly affects the
gas production project. Further, international laws, climatic condition as well as health and safety
aspect also have significant impact upon the planning and implementation of gas productin
project.
SECTION 3: RISK MANAGEMENT
3.1 Introduction
In this section, various types of risks which organisation could face will be described.
Further, this part will also discuss the ways through which risk can be controlled by the firm.
Along with it, this project also helps in assessing the ways through which team members can
easily assess or evaluate the risk.
3.2 Risk analysis and control
Risk management may be defined as a process in which project manager make analysis
of the risks which are closely associated with the project. By taking into consideration the traffic
light theory business unit is able analyse the risks in the best possible way. This theory serves
information about the feature of red, yellow and green light. It assist business unit in making
suitable decisions by giving the specific indicator. On the basis of this, business unit can decide
the time when they require to take strategic move. In addition to this, in risk control, manager
makes evaluation of the potential losses and thereby take strategic actions to eliminate the threats
or risks which have high level of impact upon the accomplishment of the project (Morris and
Pinto, 2010). Through this, manager of the firm is abler to control the risk in an effectual
manner.
3.3 Sources of risks
In order to achieve the objective, project manager is required to assess and prioritise the
risks which hamper the growth and success of the project. In project management, there are
several sources of risk which include unknown stakeholders, scope of fuzzy project,
inappropriate staffing etc. If project team does not have an idea about the people who impact
goals, deliverables and resources then, they are unable to accomplish the project in an effectual

manner (Heldman, 2013). In addition to this, fuzzy or unclear project scope is also one of the
most significant factor due to which project team is unable to offer fair solution or outcome for
the problem. Moreover, project team can give their best efforts only when they possess all
desired levels of skills or qualities. If team members are not highly competent and skilled to
perform the job which is assigned to them then it acts as a risk factor in relation to the success of
the project. By taking into consideration all these aspects, team is able to undertake effectual
measures which exert high level of control on such types of risks.
3.4 Force field analysis
This analysis includes listing, discussion and investigation of the various forces which
closely affects the proposed change. Besides this, it also provides deeper insight about the
aspects which are needed for change in both corporate and personal environment.
FORCES FOR
CHANGE
SCOR
ES
(1-5)
CUSTOMER
RELATIONSHIP
MANAGEMENT
FORCES
AGAINST
CHANGE
SCORE
(1-5)
Clients 4 Competitors 4
Contractors 3 Legislation 2
Managements 4 Financial
departments
3
Staff 5 Cost 3
Government 4
Total 20 Total 12
Table 2: Force field analysis
3.5 Risk control
Risk control includes the information which is derived by the manager through risk
assessment. It enables manager to create and implement appropriate changes with the aim to
exert upon the risk. In the process of risk control, project manager makes efforts to implement
the effective policies, standards and procedural changes which help to minimizse the risk to the
great extent (Littau, Jujagiri and Adlbrecht, 2010). Along with this, system managers can easily
manage, reduce and eliminate the risk. Moreover, he/she can also control the risk by providing

proper training to their personnel. Besides this, manager can also coordinate the project activities
by conducting workshop effectively. Through this, manager can provide idea to the members
about the ways or aspects through which they require to perform their activities.
3.6 Risk response
It consists of the process in which manager frame and determines the strategic options
which help them in increasing the opportunities. In addition to this, strategic framework also
provides assistance to the project team in reducing the threats which negatively affects the
fulfilment of the objective or purpose of the project (Caniëls and Bakens, 2012).
3.7 Assessment of the risk
Risk Details Effect Probability Response Mitigation
Resignation of
project
manager
If manager
will resign
from his post
then it
negatively
affects the
project.
High level Low
probability
In this case,
project will be
assigned to the
assistant
project
manager.
By offering
attractive
salaries and
incentives.
Financial risk Limited
availability of
fund
Moderate level Low
probability
Contingent
fund needs to
be made
during the
allocation of
budget.
Preparation of
sound budget
with the help
of several
tools or
techniques.
Loss of data Cyber crime
or hacking of
data
High level Low
probability
Inculcating
cyber security
Assigning data
handling to the
specific
person.
Changing
market
Dynamic
business arena
Moderate level Low
probability
Analysis of
trend rather
Taking
standard

conditions than taking
market
condition of
the particular
year.
measures
Table 3: Risk assessment
3.8 RACI resource
It is the most effectual tool that plays a significant role in the project management. RACI
matrix is usually undertaken by the manager to delegate the tasks and responsibilities among the
members of team. This matrix clearly reflects that right people are assigned on the right job (Lu,
Huang and Li, 2011). Further, it also serves information about the people who are responsible for
the performance of specific task. By this, manager is able to monitor the performance of the
project more effectively and efficiently.
Phase/process R A C I
Plan Project Project Manager Sponsor Sponsor Team
Stakeholders
Analyse
requirements
Team Project Manager Supplier Project Manager
Plan requirement Team Project Manager Team Sponsor Team
Launch product Project Manager Project Manager Sponsor Clients, media
Table 4: RACI resource
3.9 5 M's of management
Five M's of management encompasses the ways or aspects through which project
management team can easily allocate and make use of the resources. In the strategic business
area, project team can build or sustain competitive advantage only when they make effective
utilization of the resources. 5 M's of management include men, machine, material, money and

minutes. Optimum utilization of such resources are highly required to attain the goals and
objectives of project. Five M's of management are enumerated below: Men: Personnel is the main element without which project team is unable to accomplish
the project. Different people posses varied skills and abilities (Wu and Low, 2010). Thus,
by allocating the task to the people in accordance with their abilities manager is able to
complete the project within the given time frame. Machine: It refers to the tools ans techniques which are used by the project team in order
to achieve the the objectives. Material: It includes all the sources which are used by the project team to outline the
specific solution of the issue or problem. Minutes: Project have high level of importance only when it is accomplished within the
suitable time frame. After this period, project and its outcome loose the significance.
Thus, members of the team needs to make their best efforts in order to accomplish the
project timely.
 Money: Finance is the crucial element and plays a vital role in project management. Thus,
members of the team have responsibility to perform their task within the budget which is
assigned to them (Cervone, 2011). Hence, team members are required to make use of the
financial resources in the highly logical manner.
3.10 Application
In this project, manager and 5 other members act as men who needs to give their best
efforts towards the attainment of objectives. Further, Prince 2 and other tools are used by the
project team for getting effective outcome of the issue or problem. In addition to this, team needs
to completed this project with the amount of 250000 within the period of 3 months. Thus, by
following all these aspects management team is able to build competitive edge over others. It can
be stated that 5 M's provide assistance to the team in achieving success in the ever changing
business environment.
SECTION 4. ROBUST COST BENEFIT ANALYSIS
4.1 Introduction
This section of the project will shed light on the methods through which project is
selected by the team. In addition to this, it will also develop understanding about the cost-benefit

analysis, break even and pay back period method. Besides this, it also depicts the ways through
which SMART objectives provide assistance in fulfilling the purpose of project.
Project selection: There are several methods which can be used by the manager while making
selection of the project (Aubry and Hobbs, 2011). Different methods of selection have varied
characteristics which affects the outcome of result. Project team can evaluate the attractiveness
or suitability of the project by taking into consideration the several financial tools. Internal rate
of return method provide information about the income which is generated by the firm through
the particular project. Besides this, pay back period method also provides assistance to the
project team in making decision about the gas production project. Break even analysis and ROI
is also the effective tool which helps manager in making most suitable decision in relation to the
selection of project (Demir and Kocabaş, 2010).
4.2 Smart objectives
It refers to goal which is specific, measurable, achievable, relevant and time oriented in
nature. By preparing SMART objectives manager is able to evaluate their goals to the significant
level. Further, it may also be served as a tool which provides clear direction to the members of
team amount the activities which they needs to perform. In addition to this, SMART objective
also prevents the occurrence of mistakes. Manager of the project can encourage their personnel
only when they set suitable and specific objectives (Bredillet, Yatim and Ruiz, 2010). Thus,
measurable objectives also provide assistance to the manager in monitoring the performance of
the team members. By this, project manager is able to undertake corrective measures on time.
Further, objectives must be achievable and relevant according to the project issue or problem.
Along with it, time orientation is highly required for the building and sustaining competitive
advantage over others. Thus, SMART objectives make vital contribution in the success of
project.
4.3 Application
SMART objectives Specific: Project management team takes 3 month to assess the resources which are
required for the gas production. Cardial is required to purchase drilling machines as well
as mobile offshore drilling unit with the aim to produce gas. Further, team is also needed
to evaluate the level to which company will get success by entering in the gas industry
(Teller and et.al., 2012).

 Measurable: By making continuous evaluation of the effectiveness of the drilling and
other equipment management team can easily measure the extent to which company will
produce the gas more successfully. Achievable: Company can easily achieve such objective by making appropriate
investment in gas production equipment. Relevant or realistic: This gas production project is highly realistic in nature and more
relevant according to strategic business situation (Lee and Yong, 2010).
 Time bound: Project team is required to accomplish the task within thew period of 3
months. This project starts on 1 April 2016 and will end on 30 June 2016. On the basis of
this aspect, member of the team have responsibility to accomplish the work within the
predetermined time period.
4.4 Cost-benefit analysis
This is the quantitative approach which helps business organisations in making decision
that whether they need to go ahead with the project or not. It helps in determining the profit
which will be attained by the firm by making expenditure on the project. Each and every firm
starts project to get high level of profits or benefit (Tohidi, 2011). Thus, project management
team requires conducting cost-benefit analysis for the gas production project. In addition to this,
team members also required to assess the benefits which Cardial will get by incurring money on
the resources. Thus, the outcome or result which derives by the team of project management
helps business unit in assessing or evaluating the financial viability and suitability of the project.
With the help of cost-benefit analysis, Cardial is able to make sensible and most profitable
business decisions.
4.5 Cost breakdown
In this, manager allocates cost to the each aspect which is required for the production of
gas.
Cost breakdown structure of Succinct or gas production project is enumerated below:
Costs Amount
Total cost of employees 25000
Total cost of training 5000
Total cost of equipment 130000

Total cost of the material 50000
Total cost of insurance 20000
Contingency plan 20000
Total budget 250000
Table 5: Cost breakdown structure
4.6 Project forecast
In project forecasting manager make manager makes assessment of the future demand
and supply of the product or services (Tohidi, 2011). Further, manager also evaluates the factors
which have significant impact upon the accomplishment of the project. Project manager
undertakes whole study on the basis of this forecast and thereby offers suitable solution to the
owner of Cardial.
4.7 Return on investment
It is the most effectual analytical and performance measurement tool which is used by
both organisations and investors with the aim to evaluate the efficiency of investment. It clearly
indicates the benefit which they will get from the investment. Higher ROI reflects that investor
gains more profit from the investment (Peterson and et.al., 2011).
Return on Investment (ROI) = Net profit / total investment *100
4.8 Payback period
It is the main tool of the capital budgeting which provides information about the time
which will be taken by the firm to recover its initial investment. In this method, company needs
to select the project which has lower pay back period. On the basis of this aspect, company is
able to make profit earlier.
Payback period = Initial investment / cash inflow per period
4.9 Benefit of payback period
 Payback period helps in analysing the time period after which company is able to
generate profit. Moreover, company gets profit only when then it recovers its initial
investment to the full extent (Beringer, Jonas and Kock, 2013).

 Along with it, easy calculation or measurement system is the main advantage of this
method. Further, it can be served as a good measurement tool which helps in the selection
of suitable project.
4.10 Limitations of payback period
The main drawback of this method of investment appraisal is that it only provides
information regarding the time which company will take to return back its initial amount.
Nevertheless, it does not provide information about the cash flow aspect of the business unit.
Besides this, it also ignores time value of money concept which also limits the significance of the
results of this method (Martinsuo, 2013).
4.11 Break even
This analysis is used by the manager to determine the level of units or production at
which organisation becomes able to cover all the expenditures which are incurred by it. Through
this, manager of the firm is able to make assessment of the units which they need to produce for
making profit. Thus, by doing break-even analysis, Cardial is able to assess the level to which
they need to produce gas. By following such strategy or analysis, company is able to build or
sustain competitive advantage for others (Ika, Diallo and Thuillier, 2010).
4.11 Conclusion
SECTION 5: SCHEDULING
5.1 Introduction
In this section ways through which manager can break the project or task into the small
part will be discussed. Further, it will also provide information about the ways which helps
project team in managing the cost and time more effectively. This part of the report also helps in
understanding the significance of preparing and managing schedule for effectual project
management.
5.2 Work breakdown structure (WBS)
Manager undertakes WBS to break down the different aspects of project into the
manageable parts (Young, 2013). It subdivides the activity or effort which are required for the
achievement of purpose or objectives of the project. Sub activities clearly reflect the ways

through which they are closely related to the whole project. Thus, by preparing WBS project
manager and team members are able to perform the task or activities in the best possible manner.
5.3 Benefits of WBS
This tool helps project manager in defining the scope of project. One of the mains benefit
of WBS is that it clearly indicates the activities which are included and excluded from the
project. By dividing the work into the smaller parts WBS simplifies the performance of work.
Thus, WBS helps in carry out the project within the money which is allotted to it (Advantages of
WBS, 2016). In addition to this, it also creates accountability in the context of the performance of
particular task and responsibility (Laslo, 2010). This aspect ensures the completion the project
around the time which is required for the performance.
5.4 Gantt chart
Gantt chart is the project management tool which clearly reflects the activities in against
to the time. It provides deeper insight to the manager about the start and finish time of the project
activities or task. Further, gantt chart also presents the activities of network which are highly
interrelated with each other (Killen and et.al., 2012).
5.5 Benefits of gantt chart
Gantt chart provides high level of assistance to the manager in monitoring the activities
or task in against to the time that is allotted to it. Thus, by making comparison of the actual time
taken with the standard manager is able to monitor or measure the progress of project. It enables
manager to take corrective action in the suitable time frame. This aspect facilitates timely
achievement of the objective or purpose of the project.
Activities M1 M2 M3 M4 M5 M6 M7 M8 M9 M10
Discovery
and planning
Development
of system
Testing
Deployment
Continues

support
Project Live
Table 6: Gantt chart
5.6 Critical path
It refers to the minimum time which is needed for the performance of predetermined task
or activities. Critical path indicates the way which project team needs to follow for the
accomplishment of task at low cost and time. If team member break such path then it may result
into the high cost which negatively affects the growth and effectiveness of the project (Jafari and
et.al., 2011).
5.7 Project control
Project control may be defined a process in which data is gathered and analyze by the
manager in order to predict the factors which have an impact on the time and cost. This process
helps manager in keeping the project on right track. By assessing the factors which have
influence on the outcome of project manager is able to undertake strategic move or action. This
process ensures that project has been accomplished within the given time and budget which is
allotted to them (Mahaney and Lederer, 2010).
5.8 Methodology of project
Project methodology consists of the ways through which project is being completed by
the manager. It includes initiating, planning, execution, control and winding up the work of a
team. Effective and appropriate methodology act as a guide and thereby prevents confusion in
the mind of the team member (Ojiako and et.al., 2011). There are several types of methodology
which is available to the project team includes Prince 2, lean development, rapid and Joint
application development, extreme programming, adaptive project framework and crystal
methods etc. Project manager needs to adopt Prince 2 method which helps them in getting
desired level of outcome or success. By including 8 levels manager is able to complete the
project more effectively and efficiently.
5.9 Project communication plan
In the project management, communication plan places high level of emphasis upon
offering or providing information to the stakeholders about the project. It also encompasses the
role and responsibilities of the participants in relation to the review, approval and dispatch of

information about the project. With the help of effective and efficient communication plan
stakeholders are able to know the success, process, document and several milestones of the
project (Bredillet, 2010).
SECTION 6: PROJECT TERMINATION
This is last and highly important stage of the project management. Once implementation
phase of the project has ended thereafter termination stage starts. In this stage project
management team make assessment of the each and every aspect in relation to the viability or
suitability of gas production project (Teller and et.al., 2012). This project will be finished on 30
June 2016. In this, project team has taken decision to make evaluation of the extent to which
Cardial will attain success by taking strategic move in the gas industry. Thus, assessment offers
opportunity to the team member to make correction in the aspect which is in appropriate.
Through this, manager is able to offer the suitable solution of the problem or issue to the owner
of Cardial. Along with it, manager is also required to make thorough assessment or evaluation of
the resources which are needed for producing the gas. On the basis of all the above mentioned
aspects it can be stated that after making monitoring of the project it is handed over by the
manager to the owner of Cardial (Ika, Diallo and Thuillier, 2010). It enables manager to build
faith or trust in the mind of owner and other stakeholders.
SECTION 7: CONCLUSION
From this project, it can be concluded that oil and gas industry is keep growing. Thus, by
producing gas Cardial is able to reduce the government pressure to the significant extent.
Furthermore, it can be concluded that PESTLE analysis is the most effectual tool which helps in
taking appropriate business decisions. Thus, pestle analysis helps in assessing the factors which
have impact upon the success of gas production project. It can be inferred that gantt chart and
critical path method also provides deeper insight about the task which are highly interrelated
with each other. It can also be revealed that SMART objectives also plays a vital role in the
completion of project within the given time frame without any confusion. By summing up this
report it can be concluded that productivity and profitability aspect of Cardial will be enhanced
by producing gas.

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