Project Management Cycle Plan for Construction Project

Project Management
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Table of Contents
Introduction...........................................................................................................................................4
Task 1....................................................................................................................................................5
a) Prepare a brief Project Management Cycle plan, to cover the aspects of Initiation, planning,
execution, monitoring & controlling and closing of the project (construction of the building. (1.1)
..........................................................................................................................................................5
b) As an associate, you are required to develop the success and failure criteria for the proposed
project and appraise its viability by using relevant investment appraisal techniques e.g. NPV and
IRR considering the following future cash flows: (1.2). Consider the interest rate to be 5%..........7
c) Define Resources Management and what categories of resources are required for the
construction of the building. Explain the principles behind setting up the systems and procedures
for efficient resource management. (1.3)..........................................................................................9
d) Explain the key stages involved in the process of closing down the project and conducting post
post-project appraisals. (1.4)...........................................................................................................11
Task 2..................................................................................................................................................13
a) Identify the most appropriate organisational structure, roles and responsibilities of participants
within the project. (2.1)...................................................................................................................13
b) Using the project highlighted in the scenario, describe the techniques that can be used in
controlling and coordinating a project. (2.2)..................................................................................15
c) Using the project highlighted in the scenario, assess project leadership requirements and
qualities including the role of the project manager and qualities expected of him. (2.3)...............17
d) Plan and specify human resources and requirements for the project given in the scenario. (2.4)
........................................................................................................................................................19
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TASK 3...............................................................................................................................................21
a) Prepare a detailed project plan which covers the aspects of costs, scope, quality, time, human
resources requirements, communication, risk management and stakeholder’s analysis (interests
and priorities). (3.1)........................................................................................................................21
b) Explain how Scheduling, Estimation and Cost control techniques are applied in projects and
apply the appropriate project scheduling tools to plan the project activities so as to minimise the
time and costs of the project. (3.2)..................................................................................................23
c) Analyse the performance of the project assessing performance indicators and choose the
methods that are more appropriate to measure project performance by discussing their advantages
and disadvantages. (3.3)..................................................................................................................26
d) Explain the change control procedure for evaluating your project at its completion. (3.4).......28
Conclusion..........................................................................................................................................30
References...........................................................................................................................................31
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Introduction
The report has been prepared to discuss in detail the project assigned by the London School of
Science and Technology to the Sraymax-London Builder Ltd. Sarymax Ltd. is to refurbish an
ancient industrial location. The company is to refurbish the building within six months of time
duration. The company has provided within the contract a time period of five years as maintenance.
The total cost that is estimated in the process of this project is estimated to be £1,500,000. The
project will describe and discuss in detail the project plan cycle for the project. The report will focus
on the descriptions of the human resource requirements, the discussion over the end results of the
project. The report will present with a detailed explanation of various aspects of the project such as
human resource management, role and responsibilities of the project manager etc. The report will
depict an understanding of the project organisation structure and project performance evaluation.
The report will apply the techniques of Gantt chart, Pert, and Histogram to further amplify and
describe the scope, time, human resource requirements, and the cost control techniques for the
project.
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Task 1
a) Prepare a brief Project Management Cycle plan, to cover the aspects of Initiation, planning,
execution, monitoring & controlling and closing of the project (construction of the building.
(1.1)
Project Management Cycle Plan is comprehended and data-based plan which is adopted by the
organisation to execute the construction of the new building. The cycle consists of various stages
such as initiation, planning, execution, monitoring, controlling and closing of the project. All these
stages occur in the process of a project. For Sraymax to construct the new building the following
project management cycle plan has been adopted.
(Figure 1: Project Management Cycle Plan)
(Source: Kerzner and Saladis, 2017).
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The Initiation Phase the committee is required to gather the case of the project. The committee
fetches the details about the project and then does a study over the project in order to execute the
project. The next step is to establish a project charter to define and estimate the various activities
and stages to be incorporated into the project cycle (Melchers and Beck, 2017).
The Project Planning Phase at this stage of the project the committee is to plan out the execution
of the project. The resource body identifies the needs and requirements of the project to accumulate
enough data and resources to accomplish the project. In this stage, various plans such as finance
plan, human resource plan, quality plan, risk plan, acceptance plan, communication plan, estimate
plan etc. are built and information necessary is gathered.
The Execution and Monitoring Phase in the execution phase of the project management cycle
plan it is to be considered the monitoring and controlling activities are executed. The committee
identifies the deliverables and the expected outcomes. Next is to prepare and formulate the time
management to access the duration of time that is to be required to complete the project (Kerzner
and Saladis., 2017). The cost management is to be accessed to determine the costs that will be
incurred in the project to furnish the results. The committee is then to forecast and prepare the risk,
procurement and change plans to effectively progress the construction work.
The Closing and Controlling Phase is the last phase of the project management plan cycle. In this
stage, the controlling and closing activities of the project are carried out. The committee is required
to furnish the last detailing of the project and hand over the property to the client. Project closure is
performed wherein all the last activities are executed. The project is completed and is checked if the
results that are achieved are in accordance with the desired outcomes and results.
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b) As an associate, you are required to develop the success and failure criteria for the
proposed project and appraise its viability by using relevant investment appraisal techniques
e.g. NPV and IRR considering the following future cash flows: (1.2). Consider the interest rate
to be 5%
It can be stated that if the Total of PV of cash flow is less than the initial outlay then the project is
not viable. It can also be said that proposed project is not appropriate and profitable for the company
if the PV of cash flow is less than an expenditure made.
Since the PV of Cash flow (£1993.63) is greater than Initial outlay (£1500) the project is viable and
profitable for the company.
IRR is also useful for the determination of the viability of the project.
It can be stated that @ 19.86 the PV of the cash flow will be equal to the initial outlay.
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Using Interpolation,
IRR= R1+ NPV1 *(R2-R1)
NPV1-NPV2
= 5+ 493.63 *(20-5)
493.63-(-4.43)
= 19.86 %
The project must be accepted because the IRR is higher and there is a positive NPV of the cash
flows. The higher a project’s IRR the more profitable is for the company.
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