Project Management: Plan, Time, Cost, Risk Factors

This report provides detailed information about project management plan including time, cost, and risk factors. It discusses the challenges and strategies to overcome them. The project is based on launching advanced IT services and a cloud-based information system. The estimated cost is 50000 pounds and the deadline is 6 months. Stakeholder analysis and risk register are also included. Subject: Project Management

PROJECT
MANAGEMENT

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
CONCLUSION........................................................................................................................................15
REFERENCES........................................................................................................................................16

INTRODUCTION
In order to make a project successful, this is essential for manager of project to coordinate
and complete all activities in an effective manner. The term project management can be defined
as a process of managing overall tasks and activities so that project can be finished in less time
and cost (Lippi and Mattiuzzi, 2019). The report is based on an assumption based project of a
company that is XYZ plc. This company wants to update their business in IT infrastructure and
to build a new cloud based information system. For this objective a project handling company
has been assigned for project that is ABC limited. The report consists detailed information about
project management plan including time, cost, risk factors.
MAIN BODY
Overview of project- The project is related to launching advanced IT services and cloud based
information system in a business. In this project the client company is XYZ plc as they want to
update their business services and this company assigned the project to ABC limited. The
estimated cost for this project is around 50000 pounds. Along with client company gave a
deadline for this project to ABC limited that is of 6 months. Therefore, project needs to be
finished in such time period.
Project management plan: This can be defined as a form of document that contains all necessary
information for completing a project (Suopajärvi and Kantola, 2020). This plan is used by all
members of project because it is like a blue print of all activities of project. In the context of
above company’s project, a detailed plan is prepared below in such manner:
 Time: This one of the key element of a project management plan which states that
estimated time to complete a project. It becomes essential for a project manager to
complete the project in given time period (Fleming, 2019). Eventually, success of a
project depends on this component. Herein, it is important to know that this is not only
duty of project manager to complete the project in time but also each department
becomes liable to finish their own assigned activities in given time frame. In the context
of above XYZ plc’s project, estimated time is around 6 months. Therefore, it becomes

essential for project manager to complete this project in 6 months. Any delay in this, may
lead to serval obstacles for above company as well as for client too.
 Cost benefit analysis- Cost-benefit analysis is a method employed mainly by businesses
that measures the amount of the advantages of the activity, such as financial income, in
an operation against the disadvantages, or expenses. The method is often used when
attempting to determine a course of action, and often includes monetary values for
expected revenues as well as opportunity costs in its computations. In the context of
above project, a detailed analysis of estimated cost has been done in such manner:
Cost sheet for one unit:
Particulars
Unit/
hour
Cost per
unit/hou
r Total (£)
Project management
Project manager 400 15 6000
Team members 600 2.5 1500
Hardware
Printer 30 9.5 285
Desktop 50 24.5 1225
Storage 15 15 225
System
integration/Developme
nt
Designing 150 15 2250
Testing 200 20 4000
Programming 500 40 20000
Security 350 10 3500
Employee expenses
Salary 150 40 6000
Training 100 50 5000

Total cost 49985
The above mentioned table indicates that estimated cost for this project is around 49985
pounds. This figure is nearly to 50k pounds. In this aspect, it is important for project
manager to keep the cost of operations lower as much as possible.
 Estimated benefit: It is defined as a value that can be generated through a project in
upcoming time period (Alnaggar and Pitt, 2019). This depends on quality of project that
how well a project is completed. If a project is completed in an effective manner than
there becomes a strong possibility of higher return. In the context of above company’s
project, the estimated benefit is around 65000 pounds.
Cost benefit analysis: PV of estimated benefit / PV of estimated cost
In the context of above project, there are below mentioned data on the basis of that value
of cost benefit analysis is computed in such manner-
Estimated cost 49985 Pounds
Estimated benefit 65000 pounds
Cost of capital 10%
PV of estimated cost:
49985/ (1+10%)
= 45440.91 Pounds
PV of estimated benefit:
65000/ (1+10%)

= 59090.91 Pounds
Cost benefit analysis: 59090.91/45440.91
= 1.30
On the basis of above done cost-benefit analysis, this can be find out that project will be
viable for above company. It is so because value of cost benefit analysis is positive and
they may generate higher revenues in upcoming time period.
 Stakeholder analysis: The term stakeholder analysis can be defined as a systematic
process of identifying all interested parties of a project along with their need for project
(Pollard, 2019). In this type of analysis, impact of each stakeholder on success of project
is evaluated in detailed manner. Herein, below a stakeholder analysis plan is prepared in
such manner that is as follows:
Name Department Internal/external Role/Impact Impact level
(High, medium
and low)
Stuart Broad Owner Internal The role of this
stakeholder is
to grant
permission to
start the
project. This
permission can
be given by
signing on
project charter
or document.
Higher

James
Anderson
Supplier External This
stakeholder has
a significant
role. It is so
because any
fluctuation in
prices of
equipment may
lead to
increased cost
of various
kinds of
operation of
this project.
Medium
Chris Woke Project
manager
Internal This
stakeholder is
one of the key
stakeholder.
The role of this
stakeholder is
to manage
overall
activities and
operations so
that project can
be finished in
less time along
with in limited
cost of
operations.
Higher
Ben Stokes Finance Internal This Medium

manager stakeholder
can affect to
success of
project. It is so
because
finance
manager has an
important role
to use available
financial
resources in a
manner so that
project can be
completed in
given time
period (Andres
Imaz, 2020).
Mark Wood Operation
manager
Internal This
stakeholder has
the role of
completing all
the tasks and
activities in a
proper manner
so that quality
of project can
be managed.
Along with this
stakeholder is
responsible to
keep an extra
Medium

sight of eye
over project’s
progress and
task
compilation.
James Trade
well
Labor union External This
stakeholder
can also impact
to project. It is
so because if
labor union
increase their
prices then
company may
face issue of
higher cost of
labor. Along
with any strike
by labor union
can also affect
to project’s
success.
Medium
 Risk- In completing a project, there can be a range of risks which need to addressed
during or before completing the project. Any delay in this process may lead to huge
financial loss to company or project. Basically, the term risk can be defined as possibility
of any unfavorable event that can affect progress of a project. In order to overcome from
risk in a project, managers prepare risk register.

Risk register is a form of document that categorize different types of risk in a sequence in
accordance of their impact (Poston and Richardson, 2019). Along with in this register
detailed information about strategies is mentioned so that risk can be reduced. In the
context of above project, below a risk register is prepared that is as follows:
Risk Department Possibility Impact Cause Strategy to
overcome
Higher cost Finance 4 5 This type of
risk can
evolve in
above
project due
to many
reasons.
Such as
sudden rise
in price of
material by
supplier or
failure of
any activity.
In order to
overcome this
type of risk, it
is essential
for project
manager to
acquire
needed
material from
a supplier
who is
offering
goods at
lower cost as
compared to
others. This
can be done
by doing
proper
comparative
analysis of
prices of
different
suppliers.
Delay in Operation 4 5 The reason This type of

project
finishing
of this risk
can be
ineffective
management
by project
management
or unskilled
employees
who may
take longer
time to
complete a
simple
activity.
risk can be
reduced or
overcome by
effective
management
of all kinds of
activities and
operations by
project
manager. In
order to do
so, it is
essential for
project
manager to
hire more
skilled and
qualified
employees so
that they can
finish the
project in less
cost and time.
Improper
utilization
of
resources
Operation 5 4 This type of
risk can
occur in
above
project due
to lack of
monitoring
over
In order to
overcome this
risk, it is
essential for
project
manager to
assure that
there is

project’s
activity and
tasks by
operational
manager.
Due to
which,
employees
may reduce
their
efficiency to
finish the
project or
usage of
available
financial
and non-
financial
resources.
proper
monitoring
over different
task and
activities by
operational
managers.
Accident
on site
Human
resource
4 4 In the
context of
above
project, this
type of risk
can raise
because of
different
reasons such
as technical
fault of a
machinery
This form of
risk can be
reducing by
doing health
insurance of
employees as
well as
assigning
employees for
different tasks
as per their
skills and

or unskilled
employees
to deal with
complex
machinery.
competencies.
Strike of
labor
Human
resource
4 5 The reason
of this type
of risk can
be influence
of leader of
labor union
or due to
rejection of
demand of
labors.
This type of
risk can be
overcome by
hiring the
employees on
a contract
basis so that
they cannot
do any kinds
of strike in
upcoming
time period.
From above mentioned table, this can be find out that these are some key risk which may
occur during completing this project. As well as project manager needs to aware from
these risks.
 Project execution challenges- These are kinds of challenges or issues which occur during
completing a project. It depends on manager of project that well he/she deal with these
issues in limited time period and without hampering to success of project. In the context
of above mentioned project, some key challenges which may occur during execution:
Lack of clear goals and success criteria- Clarity is one of the most critical criteria for the
project ’s success execution, and the absence of it may cause to many project
management problems (Sipes, 2019). One research reports states that about 39% of
project collapse due to lack of project preparation and a clearly established purpose. This

is therefore critical for a project manager to create a goal to measure project success by
the setting up of benchmarks and quality control. Like in the context of above mentioned
project, this type of issue can occur because of lack of clarity of goals and criteria for
measuring performance. Due to this issue, there can be a lot of obstacles which may lead
to failure of project.
How to deal: Popular goal-setting strategies such as SMART and CLEAR can help
project managers of above project to achieve a set of relevant objectives from the
initiation of the project.
Lack of communication: Effective communication among team members is vitally
essential for a good project. To insure that parties are active in the project, managers need
to provide and prompt open communication. In the absence of proper communication
among different parties of project, there can be a range of issues. Such as employees will
not be able to share information about succession of project as well as daily updates.
Miscommunication is often series for project teams because it impacts coordination. This
will create disagreements between members of the team that may possibly interrupt the
project. In the context of XYZ plc’s project, this type of risk can occur due to lack of
interaction between managers and employees.
How to deal: In the aspect of above project, this challenge can be overcome by use of
different software to do proper communication. Such as manager can use email system
for making communication with their employees. By help of this, the manager of above
project will be in touch with project’s progress along with issues which are faced by
employees.
Inadequate risk management: It is also a key challenge which can occur in companies’
project because of ineffective risk management process adopted by managers (Pranzini,
Cinelli and Anfuso, 2020). Eventually, this is essential for project manager to address all
types of risk along with implementation of suitable strategies so that risk can minimize.
In the context of above company’s project this risk can occur because of ignorance of

identified risk by project manager. As well as this issue can also evolve in above project
because of ineffective strategies.
How to deal- In order to overcome from this issue, it is necessary for project manager to
deal with all recognized risk in an equal manner. They cannot underestimate any type of
risk because any delay may lead to negative impact on project. As well as project
manager should prepare effective strategies in order to deal with each recognized risk.
Budgeting issue- Majority of managers of project, consider budgeting issue as one of the
main hurdle. Due to wrong estimation of expenses about a project may lead to a range of
obstacles related to financial resources (France-Mensah and O’Brien, 2019). In the case
when estimation of income and expenses is underestimated than it may lead to lack of
financial resources for completing a project. While if projection of expenses is
overestimated than it may become cause of higher costly project. Such as in the context
of above company, this kinds of issue may arise during execution of their project. They
may issue of wrong estimation of their expenses.
How to deal- This type of issue can be overcome by doing estimation of income and
expenses as per the proper research of past financial data. Such as in regards to above
company’s project, their manager has to hire any financial expert to make accurate
projection of estimated expenses that may occur during execution of project.
CONCLUSION
On the basis of above project report this can be concluded that it is essential for each type
pf projects to rely on project management plan. This is so because under it, detailed information
about each and every aspect is mentioned related to project that makes possible to achieve
predetermined outcome. The report concludes about a project that is about upgrading a business
in IT and launching a cloud based system. For this objective a detailed project management plan
is prepared that involves information related to cost-benefit analysis, time, risk analysis and
stakeholder analysis. These all types of information can be useful for managers during
execution.

REFERENCES
Books and journal:
Lippi, G. and Mattiuzzi, C., 2019. Project management in laboratory medicine. Journal of
medical biochemistry, 38(4), pp.401-406.
Fleming, Q.W., 2019, January. Project procurement management: contracting, subcontracting,
teaming. Project Management Institute.
Alnaggar, A. and Pitt, M., 2019. Towards a conceptual framework to manage BIM/COBie asset
data using a standard project management methodology. Journal of Facilities
Management.
Pollard, C.E., 2019. Lessons learned from client projects in an undergraduate project
management course. Journal of Information Systems Education, 23(3), p.3.
Poston, R.S. and Richardson, S.M., 2019. Designing an academic project management program:
A collaboration between a university and a PMI chapter. Journal of Information Systems
Education, 22(1), p.6.
Sipes, C., 2019. Project Management for the Advanced Practice Nurse Second Edition. Springer
Publishing Company.
Pranzini, E., Cinelli, I., Cipriani, L.E. and Anfuso, G., 2020. An integrated coastal sediment
management plan: The example of the Tuscany Region (Italy). Journal of Marine
Science and Engineering, 8(1), p.33.
France-Mensah, J. and O’Brien, W.J., 2019. Developing a sustainable pavement management
plan: Tradeoffs in road condition, user costs, and greenhouse gas emissions. Journal of
Management in Engineering, 35(3), p.04019005.
Suopajärvi, L. and Kantola, A., 2020. The social impact management plan as a tool for local
planning: Case study: Mining in Northern Finland. Land Use Policy, 93, p.104046.
Andres Imaz, A., 2020. Project management plan definition for the implementation of a
European Railway Traffic Management System in Australia (Master's thesis, Universitat
Politècnica de Catalunya).