Principles of Project Management

This document covers the principles of project management, including the planning phase, preliminary analysis, project initiation, budget calculations, resource management, and tracking progress. It also discusses the relative positions of various stakeholders in the project and provides a sample job description for a project manager. Additionally, it includes a network diagram and a Gantt chart for project planning and scheduling.

Principles of Project
Management

Table of Contents
Section-A Planning Phase................................................................................................................3
Part 1: Preliminary Analysis and Project Initiation.....................................................................3
Part 2: Project planning and scheduling.......................................................................................8
Part 3: Budget Calculations and resource management.............................................................13
Part 4: Tracking progress...........................................................................................................14
REFERENCES .............................................................................................................................16

Section-A Planning Phase
Part 1: Preliminary Analysis and Project Initiation
a) Business case
Initial investment = €79m * 5
€ 395,000,000
Net present value without any extra revenue from football:
Yea
rs
(00
0')
1 2 3 4 5 6 7
Initial Investment -€ 395,000
Architect fees -€ 3,000
Cash Inflows € 85,000 € 100,000 € 110,000 € 120,000 € 125,000
Operating cost -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000
Net Profit € 80,000 € 95,000 € 105,000 € 115,000 € 120,000
Discounting@5% 0.9524 0.9070 0.8638 0.8227 0.7835
Discounted cash
inflows € 76,190 € 86,168 € 90,703 € 94,611 € 94,023
Net present value -€ 321,810 -€ 235,642 -€ 144,939 -€ 50,328 € 43,695
Net present value (Qualification for champions league)
Yea
rs
(00
0')
1 2 3 4 5 6 7
Initial Investment -€ 395,000
Architect fees -€ 3,000
Cash Inflows € 85,000 € 100,000 € 110,000 € 120,000 € 125,000
Additional
revenue@25% € 106,250 € 125,000 € 137,500 € 150,000 € 156,250
Operating cost -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000
Net Profit € 101,250 € 120,000 € 132,500 € 145,000 € 151,250
Discounting@5% 0.9524 0.9070 0.8638 0.8227 0.7835

Discounted cash
inflows € 96,429 € 108,844 € 114,458 € 119,292 € 118,508
Net present value -€ 301,571 -€ 192,728 -€ 78,269 € 41,022 € 159,531
Net present value (Qualification for Europa League)
Yea
rs
(00
0')
1 2 3 4 5 6 7
Initial Investment -€ 395,000
Architect fees -€ 3,000
Cash Inflows € 85,000 € 100,000 € 110,000 € 120,000
€
125,000
Additional
revenue@10% € 93,500 € 110,000 € 121,000 € 132,000
€
137,500
Operating cost -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000 -€ 5,000
Net Profit € 88,500 € 105,000 € 116,000 € 127,000
€
132,500
Discounting@5% 0.9524 0.9070 0.8638 0.8227 0.7835
Discounted cash
inflows € 84,286 € 95,238 € 100,205 € 104,483
€
103,817
Net present value -€ 313,714 -€ 218,476 -€ 118,271 -€ 13,788 € 90,029
Interpretation: The proposal for investment on new stadium is acceptable as net present value is
positive. The total income at 5% discounting rate receive by club will be approximate €43.7M;
hence, club has an opportunity to adjust more expenses towards income. Additional to this, the
income sources in the form of football league also add some revenue to stadium earnings. There
is some probability in receiving such income. For instance, there is 15% chance that club will
earn €159.5M from champions league and 25% chance that its revenues will rise up to €90M.
It is assumed that there are no additional expenses other than operational are present and fixed
expenses have been included in operational expenses. The construction of stadium will be
completed within decided time period and assigned budget.
Overall whole project has positive net present value and hence acceptable. The main problem
with available investment proposal is short period income and recoverable between 6 to 7 years.

This indicates that club is only able to make profit only in 7th year and after that it has to look for
another income source. The commercial implication of the result shows that club is receiving
positive income but there is little chance of earning extra revenue and decision should be based
on net present value based on no other additional cash inflows.

b) Relative positions of various stakeholders in the project
Stakeholder Model:
The figure above provides a stakeholder model that inspires an image of where they might
emerge (Walker, 2003). In addition to the stakeholder groups they identify with their most
explicit connection with projects, there are clear and important collections that can only be

recognized that they have basic collaboration and support for business performance. These
meetings would include family-friendly groups of people - this is a family work environment
proposal - but also include training networks and other informal communities. Individuals
usually form information groups to share and redefine the information they use regularly or
occasionally. The story provides a number of examples of past European learning networks,
exchanges and societies, for example, and subsequently these examples are recorded in different
societies. One of these is the Daimler Chrysler Corporation, where gatherings of people gather
around the unique ability to create "technology clubs" (Wenger et al., 2002). The intensity with
which people structure networks and alliances for mutual benefit has aroused great inspiration
and inspired the idea of training networks (COP). The COP shares knowledge and skills and
supports people through the commitment to exchange information, providing access to shared
experiences and information about work (Wenger et al., 2002). This hidden pool of partners is
often overlooked, but COPs provide positive impact and support for settlements that campaign
leaders can take advantage of.
The positions have been fixed based on the role and expenses incurred on stakeholder. The main
position is hold by project team or core team of project who has direct stake with the project.
Even project sponsor only invest money and interested in result but core team focus on each and
every part of project. At each stage it analyses the performance based on actual and planned to
identify any variations and rectify same.
The other stakeholders are just for supporting core team to initiate project on time and within
assigned budget. This analysis would help overall management by giving decision power
accordingly and try to satisfy those stakeholders who are holding higher positions. For instance;
number 1 position has been given to Project team that means decision power should be hold by
this stakeholder. Decisions related to deciding budget and project finish time should be hold by
project sponsor and modification before initiating project should be hold by end user. Other
stakeholders should not hold decision power but to follow instructions from Project team (Baim-
Lance, Onwuegbuzie and Wisdom ., 2020).

c) Contract recruitment agencies
Job Description
We are a leader in our field in the metro area. We are seeking to hire a seasoned Project Manager
to join our team. If you're a passionate self-starter, Sample Company is a great company for you.
Don't hesitate to apply.
Responsibilities for Project Manager
 Determine and define project scope and objectives
 Predict resources needed to reach objectives and manage resources in an effective and
efficient manner
 Prepare budget based on scope of work and resource requirements
 Track project costs in order to meet budget
 Develop and manage a detailed project schedule and work plan
 Provide project updates on a consistent basis to various stakeholders about strategy,
adjustments, and progress
 Manage contracts with vendors and suppliers by assigning tasks and communicating
expected deliverables
 Utilize industry best practices, techniques, and standards throughout entire project
execution
 Monitor progress and make adjustments as needed
 Measure project performance to identify areas for improvement
Qualifications for Project Manager
 Bachelor's degree in computer science, business, or a related field
 5-8 years of project management and related experience
 Project Management Professional (PMP) certification preferred
 Proven ability to solve problems creatively
 Strong familiarity with project management software tools, methodologies, and best
practices
 Experience seeing projects through the full life cycle
 Excellent analytical skills
 Strong interpersonal skills and extremely resourceful
 Proven ability to complete projects according to outlined scope, budget, and timeline
Part 2: Project planning and scheduling
a) Network diagram
A network diagram provides a graphical representation of the campaign and consists of a series
of associated bolts and boxes to show the connection between the exercises involved. Boxes or
hubs speak to the design of exercises and bolts show the relationship between exercises. The

activity must have a beginning and an end, and the wide range of different exercises fall into
these two. There are infinite ways to design a group board, for example, priority setting strategy
(PDM), bolt board strategy and GERT (graphical evaluation and technology review). Today,
most campaign leaders use the priority registration cycle to draw a chart of the organization. You
have to choose which action to replace and which is the main symbol.
There are two main types of network diagrams in project management: the arrow diagramming
method (ADM), also known as “arrow network” or “activity on arrow”; and the precedence
diagramming method (PDM), also known as “node network” or “activity on node”.
Finish to Start: It's an inevitable kind of trust between exercises. It means you have to wait for
the archetype operation to finish before starting another action. You cannot start the center move
before the archetype operation ends, unless a time pressure strategy is applied to your work. Just
in case you do it that way, the quality will go down. Also, in most cases, it is not possible to start
the next cycle under the above conditions.
Below is the table showing duration of various paths:
Paths Tasks Duration
1 S+1+2+3+4+5+8+9+10 37 weeks
2 S+1+2+3+4+6+8+9+10 32 Weeks
3 S+1+2+3+4+7+8+9+10 33 Weeks
Network diagram:

Critical path:
Project managers in organizations of all sizes must oversee a growing range of work strategies.
Out of the way, they need to know if a particular device, whether it's Lean, Waterfall, or Agile,
fits their organization and cross-functional office destinations, culture and business pace.
The critical path method (CPM) is a project modeling technique used by project managers to find
important cut-off times and plan an action based on a schedule. Promising, the basic method is
the longer separation between start and rotation, each assignment and duration. Once a basic
method is configured, it is far from the actual work schedule.
The basic method is the longest arrangement of exercises in a business plan that must be
completed according to a schedule for completing the task on an appropriate date. A movement
on the basic path cannot be initiated until its archetypal activity is completed; on the off chance
that the deferred action is canceled for one day unless the action after the deferred action is
completed one day in advance (Fomina and Apenko, 2019).
The identified critical path is Path which takes maximum duration 37 weeks to complete whole
project. Thus, the maximum time taken by the project will be 37 weeks.
b) Gantt chart

A Gantt card, or harmonogram, is a type of bar chart that shows a business plan. This pattern
records the specifications to be made on the pin directly and the time extends on the balanced
pin. The width of the horizontal bars in the graph shows the end of each movement. Gantt's
records provide an account of the start and end dates of the final and declining segments of a
business. Completion components and summary components establish the enterprise’s work
rotation structure. The standard Gantt charts also show the dependency connections (i.e. priority)
between exercises. Gantt charts can be used to display the current time status using a full
percentage shadow and a straight line "TODAY" as it appears here. Gantt records are checked
against bar records from time to time.
In the progress Gantt scheme, actions are hidden from the level of the commission: a completed
commission at 60% would be hidden for 60%, starting from the left. A straight line is drawn at
file time when a progressive Gantt outline is drawn, and this line can be compared and hidden.
On the off chance that not everything is on time, all commission splits on the left side of the line
will be hidden and not all assignment areas on the right side of the line will be hidden. This
provides a visual snapshot of how the company and its businesses are leading or downsizing.
The attached Gantt summaries contain lines that indicate the positions between assignments. Be
that as it may, linked Gantt charts instantly permeate everything but the most complex cases.
Network records are basically a better way than just outsourcing links between errors. Before
and after, Gantt summaries are consistently preferred over organizational charts because Gantt
charts are effectively distributed without preparation, while basic path charts must be prepared.
Gantt scheduling typically takes tools to interface action settings, despite the fact that this
information can be outsourced. Gantt charts and org charts are often used for a similar function,
both of which are pulled from similar information for a product application (Kavishe and
Chileshe, 2018).
Gantt charts come in a number of structures - from classic paper to field work and even online
scheduling. By bringing these charts online, they transformed them from a static aging ratio to a
real-time one, sharing a picture of the current state of promises.

c) Project float and implication
Project Float: Project float, also known as slack, is a measure of how long a particular campaign
can be delayed within an activity before it affects the end time of the activity. Business leaders
and designers use skimming opportunities to design the specific design schedule as well as times
to make choices to ensure tasks fit the schedule (Talman, 2018). Everything out of the buoy is
the time between the end date of the follow-on fee in the default mode and the date for use of the
campaign. Free buoy is the time that one company can defer before it affects the commission that
follows it, characterized by the difference between the most precise and the most effective
expiration dates.
Float can offer more opportunities to commission a dent when it is necessary. Furthermore, the
funds can be reused for other business (Kerzner, 2019). Producers working with different
organizations can invest more energy in different industries that are slowing down. The total
signal is often referred to as a positive or negative number that refers to the number of days. A
negative signal, also known as a negative signal, is a measure of the time it takes to assign after a
company’s reserved performance.
Some schedules name frames simply by reporting on Total Float (Slack). Without data on the
Free Float, your colleagues may get stuck with their respective programs. This costs dollars and
collaboration. Likewise, there may be a lack of extraordinary equipment to side with the best
deals, with huge penalties, leveling of asset loads, transition to organized revenue, controlled and
developed specific results (Lock, 2020).

Anyway, at least Float is a time to stay away from the late penalty. Start the penalty towards the
end of the FF, as more than this could incur a monetary cost to set another start date for the next
action. At that point, increase the penalty towards IT termination, as you will have to make
complete changes to the errors involved and the expiration date will be compromised. The
temporary worker here and there caused results for a late termination of a commission or
subcontract, separate from the "major power". In some areas, the reward must be accompanied
by a penalty (Safapour, Kermanshachi and Jafari, 2020).
The possible amount of float available for task 6 is 5 more weeks. As Task 8 can already be
started after finishing Task 5 which is 22nd week; hence, Task 6 could also extended up to 22nd
week. 5 weeks is the amount of float available for Task 6.
The implication for project management will be in the form of extra cost on continuing Task 6;
due to attachment of fixed cost such as salary to engineers and cost of equipment will increase
the overall cost of the project (Vachris, 2020).
Part 3: Budget Calculations and resource management
a) Human resource budget
Project team
Rate
per
hour
Rate
per day
Rate per
week
No. of
weeks
Total
expense
Project manager € 500 € 2,500 37 € 92,500
Planning and cost manager € 400 € 2,000 37 € 74,000
Contracts manager € 500 € 2,500 37 € 92,500
Quality manager € 450 € 2,250 37 € 83,250
Project administration
supervisor € 29 € 232 € 1,160 37 € 42,920
Project planner € 26 € 208 € 1,040 37 € 38,480
Project secretary € 19 € 152 € 760 37 € 28,120
Expenses:
Management level € 150 37 € 5,550
Support staff € 50 37 € 1,850
Accommodation € 490 37 € 18,130
€ 477,300
Assumptions:

It is assumed that no other expenses lie other than given cost. No penalty for late project deadline
will be executed on whole project cost. Weeks will be fixed and will not exceed over 37.
b) Resource histogram
Part 4: Tracking progress
a) Simple traffic light
Tas
k
Duration
(weeks)
Finished
week Planned progress
Actual progress
achieved Traffic light
1 1 1 100% 100% 0%
2 2 3 100% 100% 0%
3 3 6 80% 60% -20%
4 5 8 40% 40% 0%
8 4 7 60% 15% -45%
The color code for each task progress has been fixed based on criteria given as:
Red for Task which falling behind by more than 5%; Amber for those tasks which are on time
and Green is allotted for those tasks which are completed. Hence, 0% indicates that task is
completed in actual and hence assigned green color; while Task 4 is also calculated as 0%
difference between actual and planned progress but it is assigned Amber color because this task
is on time. For instance it should be 40% completed upto 5th week and in actual it is completed
40%.

b) Color code for entire project
Actual Finished week Progress
Tas
k
Duration
(weeks) Planned Actual Planned Actual
Traffic
light
1 1 1 1 100% 100% 0%
2 2 3 3 100% 100% 0%
3 5 5 8 100% 100% 0%
4 5 8 8 100% 100% 0%
5 3 11 11 100% 100% 0%
6 2 10 10 100% 100% 0%
7 2 12 12 100% 100% 0%
8 6 9 14 100% 92% -8%
9 1 10 15 100% 85% -15%
10 1 13 16 100% 77% -23%
The tracking implication of entire project indicates that in actual whole project is falling behind
by 23%; it was supposed to complete on 13th week but in actual it will take 3 weeks more to
complete due to bad performance of Task 3 and Task 8. Hence, it is colored red because it is
falling more than 5%.

REFERENCES
Books and Journals
Baim-Lance, A., Onwuegbuzie, A. J. and Wisdom, J. P., 2020. Project management principles
for optimizing publication productivity of mixed methods studies. The Qualitative
Report. 25(3). pp.646-661.
Fomina, Y. and Apenko, S., 2019. Green project management: Balancing of sustainable
development principles. Economic and Social Development: Book of Proceedings,
pp.1495-1500.
Kavishe, N. and Chileshe, N., 2018. Identifying project management practices and principles for
Public–Private partnerships in housing projects: The case of
Tanzania. Sustainability. 10(12). p.4609.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Lock, D., 2020. Project management. Routledge.
Safapour, E., Kermanshachi, S. and Jafari, A., 2020, July. Effective Project Management
Principles and Strategies in Transportation Infrastructure Projects. In Creative
Construction e-Conference 2020 (pp. 126-135). Budapest University of Technology and
Economics.
Talman, J., 2018, August. Enhancing Teamwork in Group Projects by Applying Principles of
Project Management. In Innovations in Teaching & Learning Conference
Proceedings (Vol. 10).
Vachris, C. A., 2020. Principles of Project Management Applied to Non-profit Organizations.