Project Management and Risk Analysis

This assignment analyzes a project using a Gantt chart and a network diagram to determine the critical path and project completion time. The analysis reveals a 52-day project timeline with various identified risks that could negatively impact the project's success. The document also references relevant project management literature and theories.

MANAGEMENT
OPERATION PROJECT

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INTRODUCTION
Project management plays a vital role in each and every organisation by which the
management is very helpful for making the plan. There are different types of tools and
techniques are very helpful for the firm in order to make effective business plans for achieving
the goals and targets in proper manner. In the present case, London school of Business and
Management (LSBM) is taken into consideration which is going to organise an event of one day
charity fundraising. In context to this, ways in which cost of the project is managed will be
explained. The project time management tools are such as network diagram and Gantt chart
which are shown in this project. Besides this, the project focuses on time and risk management
tools as well as techniques by which the school will be able to organise respective event in a
successful way.
TASK 1: PROJECT OVERVIEW
Definition
Project is a process which shows all activities and time frame along with the budget
section in order to achieve specific goals or objectives. It is helpful for London school of
business and management to organise an event of charity fundraising in an appropriate manner
(Kerzner, 2013). Through the project, school will be easily able to know the time and cost that
will be required to held such event.
Rationale
The project plan is prepared to organise and held an event for one day charity fund
raising by LSBM.
Constraints
In order to organise the event and raise fund, various kinds of obstacles occur. The
constraints or limitations of project are stated as below:
 There are risks can be occurs that the project can be complete on time or not.
 Another limitation is that whether the project can or cannot be completed within expected
time frame which may lead to hamper the overall event.
 Sometimes, company cannot allocate resources in a proper and adequate manner.
 Further, cost is also one of the major constraint.
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 Apart from this, another constraint is related to quality.
Assumptions
 Control over the project is to be in the hands of project manager.
 Complete data and information is proper and reliable.
 Project is to be completed within the time frame and life cycle of project (Meredith and
Mantel Jr, 2011).
Project charter
Title of a project: Organise a one day charity fund raising event and celebrate the academic
year end in London school of Business and Management.
Business Case: For raising fund in order to help the charitable trusts.
Statement of problem or opportunity: To organise event at the LSBM to raise fund for
charity.
Statement of Goal: For helping the charity sector by raising fund worth of 2017 GBP.
Scope of the project: The project is effective and has wider scope for charitable trusts in order
to raise fund and provide better services (Schwalbe, 2015).
Project sponsor: London school of business
and management
Project manager: Charitable trustees
Steering committee: Staff of London school
of business and management
Other stakeholders:
Employees, Customers, Shareholders, Other
sponsors, etc.
Estimated cost savings: 80 GBP Actual cost savings: 85 GBP
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Preliminary plan Target
date
Actual date
Identify the
market
26 –
February -
2017
28 – February
- 2017
Analyse the
sponsorship
28 –
February -
2017
27 – February
- 2017
Find different
charity trusts
5 – March
- 2017
3 – March -
2017
Organise
activities
12 –
March -
2017
13 – March -
2017
Prepare plan for
collecting fund
19 –
March -
2017
21 – March -
2017
Implementing the
plan
26 –
March -
2017
19 – March -
2017
Evaluation 9 – April -
2017
8 – April -
2017
Monitor 16 – April
- 2017
17 – April -
2017
Notes learned:
It can be learnt that there is project charter who
is highly helpful for the project manager in
order to organise overall plan in a proper
manner (Wysocki, 2011).
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TASK 2: PROJECT COST MANAGEMENT
Resource analysis
It is necessary for firms to analyse the resources for organising an event that whether they
are available or not. In context to this, different resources like human, financial, technological,
etc. are required in order to raise fund worth of 2017 GBP. With the help of all mentioned
resources, London school of business and management is able to collect relevant information and
data which are useful in order to organise the event of charity fund raising (Walker, 2015).
Budgeting
Process which helps the firm in order to estimate and predict future financial data with
the help of past performance is known as budgeting technique. Several kinds of budgets such as
cash, production, material, purchase, etc. shows the performance of firm for current and future
accounting period. Hence, by this, LSBM can derive cost, disposals and incomes which will
occur in order to organise the respective event (Wu and Low, 2010). Along with this, budgeting
process helps the school of business and management for determining variance analysis as well
as business performance. By this, it will be able to prepare and formulate effective business
strategies. Furthermore, in this there are different types of costs incurred on the basis of budgeted
expenditures are shown below:
Expenditures Number of items Cost per
item
Amount (in GBP)
Collection of data 30 number of data 10 300
Salary to the staff of London
school of business and
management
10 staff 30 300
Maintenance costs 10 items 8 80
Stationary expenses 8 items 12 96
Cost of venue where the event is to
be held
One venue 800 800
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Registration and marketing costs 3 social media sites 40 120
Food and catering expenses 12 dishes 12 144
Expenses on audio instruments 5 instruments 10 50
Total expenditures to organise
the event
1890
Sales 2800
Revenue or profit from event 910
Hence, it can be said that in order to organise one day charity fundraising event total
expenses or costs will be incur worth of 1890 GBP.
The above mentioned table shows that profit or fund generated by the LSBM is worth of
910 GBP ate the end of project completion.
Plan for spending amount
Duration (in days) Amount
20 600
45 976
60 264
At the day of 75th 50
The table shows that up to 20 days LSBM will spend amount worth of 600 GBP.
Afterwards, at the day of 45 and 60 smount will be spent worth of 976 GBP and 264 GBP
respectively. At the last day that is on 75th remaining amount which is 50 GBP will be spent in
order to organise one day fundraising event.
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Cost control
In the business, sometimes, cost can be higher which leads to affect the financial position
of firm in an adverse manner. Thus, it is necessary to have proper control over the cost and extra
expenses. London school of business and management needs to check financial transactions
within specific period of time which leads to know the activities where cost incurs high (Odland,
2012). Along with this, it needs to make better financial plan along with hiring and recruiting
highly skilled finance manager and using advises of expertise. In addition to this, LSBM should
involve the employees while making decisions because it may be possible that they give better
and effective strategies for reducing the cost and make firm more productive. By such strategies,
school is able to organise the event properly and raise fund. When respective organiser controls
the extra expenses then he can organise the event in a proper way as well as collect or raise fund
worth 2017 GBP in an adequate manner.
TASK 3 Project Time Management
For the project manager it is very significant to manage time in order to complete the
project on or before deadline (Aubry and Hobbs, 2011). For these there are different tools and
techniques are used which are shown below. Further activities in order to raise fund with help of
organising charity fund raising are prepared below:
Series no. Description of activities Activity Preceding
activity
Duration (in
Days)
Planning phase
1 Identify about the market A - 5
2 Analyse the sponsorship B A 12
3 Find about different charity trusts C B 10
Implementation phase
4 Organise activities D B 9
5 Select plan for collecting fund E C 13
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6 Analyse data and draw valid
conclusion
F D, E 8
7 Evaluation of findings from data G E 6
Closing phase of project
8 Presenting conclusion and results H F 7
9 Give appropriate suggestions I G, H 4
10 Documentation and submission of
report
J I 2
Work breakdown structure
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Gantt chart
Illustration 1: Gantt chart
The Gantt chart shows all the activities for completion of the project in horizontal format
as it shown above. With help of this the analyser and project manager able to analyse all the
activities very clearly and in appropriate manner (De Bakker, Boonstra and Wortmann, 2010).
Along with this the employees and co-workers do the work and go through each and every
activities.
Network diagram
One of the most important and widely used project management tool is network diagram
which is highly beneficial for the project managers. In order to raise the fund by organising a
one day charity fundraising event there are different types of activities are to be followed. In
addition to this, the respective diagram or technique helps to the project manager for determine
critical path of the project. With this management of LSBM can start two more activities
simultaneously which lead to reduce total time duration of project completion (Meskendahl,
2010). When the manager complete the project by reducing total activities then it will be able to
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raise fund before time. Further, the respective above mentioned activities are shown with help of
network diagram is shown below:
Illustration 2: Network diagram
From the above prepared network diagram it can be interpreted that the project manager
of London school of business and management can start two activities simultaneously up to two
times (Reich, Gemino and Sauer, 2012). It can be said that activity three and four as well as six
and seven can be start simultaneously which lead to reduce total two activities and duration as
well.
Critical path analysis
The path by which manager can know the critical way for project completion and reduce
whole time duration is known as critical path analysis (Cervone, 2011). From the above network
diagram critical path of the project of fund raising is given as below:
1+2+3+4+6+7+8+9
On the basis of respective critical path duration in order to organise an event of fund
raising will be such as follows:
5+12+10+9+8+6+7+4 = 61 days
Hence, it can be said that the overall project will be complete within 61 days.
TASK 4 Project Risk Management
Risk identification
When the company going to make the new project and implement it then there are
different types of risks can be occur which lead to hamper the overall project. As per the present
case the LSBM organise an event of charity fund raising with help of celebrate academic year
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ending. In this, risks which may be arises are such as increasing cost and expenditures, failure of
the project, negative attitude of employees, culture and perception of the customers as well as
workers etc. Along with this technical risks are also arisen because machines and equipments can
be hamper at any time. The objectives and goals can be influence at the workplace which lead to
create risks in the project management (Viswanathan, 2015). In addition to this, secondary risks
can be raises while completing the project which are related to procurement, prices, sponsors as
well as vendors and counter party risks and obstacles as well. These all risks lead to impact on
the project execution in negative way.
Risk analysis
Moreover, the above mentioned all the different types of risks impact on the completion
of the project in adverse manner. In order to this when the LSBM organise event of raising fund
and celebrate academic year ending then it may be possible that all cost can be increase in
comparison to budgeted cost. The risk of cost will lead to increase overall expenses or making
plan by which fund cannot be raise in adequate manner by which it can be hamper. As per the
technical risks if any equipment cannot run at that time whole project cannot work in effective
manner by which organising event is to be hamper (Littau, Jujagiri and Adlbrecht, 2010). In the
project management it is necessary to prepare above mentioned network diagram for determine
critical path and reduce total duration. In case if the project management software cannot run
then it is not possible to make such chart by which LSBM has to go through all the activities
which are time consuming. Hence, it can be analysed that all the risks are impact on the firm in
order to reduce productivity of management as well as cannot raise fund effectively.
On the basis of above mentioned different kinds of risks are analysed as per their impact
on organise respective event of fund raising. Analysis of risk and its influence in a tabular format
is shown as below:
S. No. Name of risk Probability Impact Owner Score
1 Contingency risks High 8 Medium 6 LSBM 8*6 = 48
2 Failure of project Medium 6 Higher 10 LSBM 6*10 = 60
3 Employee risks Lower 2 High 8 LSBM 2*8 = 16
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4 Risks related to cost and expenses High 8 Low 4 LSBM 8*4 = 32
5 Technical problems Low 4 Medium 6 LSBM 4*6 = 24
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Risk matrix
Likelihood Impact
Very low Low Medium High Very high
Very high Contingency
risks
High Increasing
cost and
expenditures
Consuming
more time
Medium Failure of
project
Low Technologic
al risks
Very low Employee
risks
CONCLUSION
From the above analysis it can be summarised that, project management is an effective
process which helps to the London school of business and management for organise one day
charity fundraising event. Further, there are various methods which helps to control over the cost
of project completion and raise adequate fund. It has been analysed that project management
tools and techniques such as network diagram as well as Gantt chart by which it able to derive
critical path. It can be concluded that, within total 52 days the whole project will be complete.
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Moreover, there are various kinds of risks occurs which lead to impact on the project in negative
manner.
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REFERENCES
Books and Journals
Aubry, M. and Hobbs, B., 2011. A fresh look at the contribution of project management to
organizational performance. Project Management Journal. 42(1). pp.3-16.
Cervone, H. F., 2011. Understanding agile project management methods using Scrum. OCLC
Systems & Services: International digital library perspectives. 27(1). pp.18-22.
De Bakker, K., Boonstra, A. and Wortmann, H., 2010. Does risk management contribute to IT
project success? A meta-analysis of empirical evidence. International Journal of Project
Management. 28(5). pp.493-503.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Littau, P., Jujagiri, N. J. and Adlbrecht, G., 2010. 25 years of stakeholder theory in project
management literature (1984–2009). Project Management Journal. 41(4). pp.17-29.
Meredith, J. R. and Mantel Jr, S. J., 2011. Project management: a managerial approach. John
Wiley & Sons.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project Management.
28(8). pp.807-817.
Reich, B. H., Gemino, A. and Sauer, C., 2012. Knowledge management and project-based
knowledge in it projects: A model and preliminary empirical results. International Journal
of Project Management. 30(6). pp.663-674.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Wu, P. and Low, S. P., 2010. Project management and green buildings: lessons from the rating
systems. Journal of Professional Issues in Engineering Education and Practice. 136(2).
pp.64-70.
Wysocki, R. K., 2011. Effective project management: traditional, agile, extreme. John Wiley &
Sons.
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