Project Management: Planning and Execution

This assignment delves into the practical application of project management principles. Students analyze a detailed case study of the ACME Project, examining its organizational structure, work breakdown structure, network diagram, and change control procedures. The analysis requires applying knowledge of project planning, scheduling, risk management, and stakeholder communication.

Project Management
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................4
TASK 1- UNDERSTAND PROJECT MANAGEMENT PRINCIPLES (LO1)..................................4
(a)1.1 Main principles of the project management process.............................................................4
(b) 1.2 Success/failure criteria for ACME Project...........................................................................5
(C) 1.3. Explaining concept of time, cost and quality with the help of suitable examples..............5
(d) 1.4. Explaining ways of terminating Acme Project by including key elements and post-project
appraisal...........................................................................................................................................6
TASK 2 - BE ABLE TO MANAGE A PROJECT’S HUMAN RESOURCES (LO2)........................7
(a) 2.1 Roles and responsibilities of each of the participants..........................................................7
(b)2.1 Draw and explain a suitable organisational structure for the ACME Project.......................9
(c) 2.3 Identify the skills and qualities of leader for the ACME Project.........................................9
(d) 2.4 Specifying the human resource requirements for the ACME Project................................10
(e) 2.2 Work break down structure of ACME Project...................................................................10
TASK 3 - BE ABLE TO APPLY PROJECT PROCESSES AND PROCEDURES (LO3)................11
(a)3.1 Draw up network diagram, determine critical path for the project and final duration of the
project............................................................................................................................................11
(b)3.1/3.2 Effect of the delay and the action taken by project manager........................................12
(c) 3.1 Role of Gantt Chart and Resource Histogram in order to improve the management of
ACME Project................................................................................................................................12
(c) 3.2 Crash activities during ACME project in order to complete the project more quickly......13
(d) 3.2 Analysis of Cost and Time performance for AMCE project during its project life...........13
(e) 3.4 Ways to manage any changes which are likely to be required during the life of ACME
project............................................................................................................................................14
(f) 3.1 Ways of Project Closer........................................................................................................15
(g) 3.3/3.4 Evaluation of completed ACME project......................................................................16
CONCLUSION..................................................................................................................................17
REFERENCES...................................................................................................................................18
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Index of Tables
Table 1: Success/failure criteria for ACME Project.............................................................................5
Table 2: Roles and responsibilities of different ACME project team members ..................................7
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Illustration Index
Illustration 1: Organisational structure for the ACME Project.............................................................9
Illustration 2: Work break down structure of ACME Project.............................................................11
Illustration 3: Network diagram of ACME Project ............................................................................11
Illustration 4: Network diagram of ACME Project ...........................................................................13
Illustration 5: Project change control procedures for the existing plan..............................................15
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INTRODUCTION
Project management is a combination of diversified skills, techniques, knowledge and tools
which are needed to meet the requirements of a project plan. In other words, it can be said that it
includes a careful planning and well organized efforts to complete a project in a successful manner.
There are different phases which help in managing and implementing the project plan in a right
manner (Kerzner, 2013). The following research is related to project management and to understand
its role in business operation, ACME Products PLC case study has taken into consideration.
Company wants to construct a new building for manufacturing of plastic tableware which is used
for outdoor dining and picnics. Along with this, organization also wants to arrange a production
setup in new facility which will be integrated with other existing factories across the world in near
future (Meredith and Mantel, 2011). Objectives covered under the following study are related to
understand project management principles, managing human resources, analysing skills and
qualities required in project manager as well as identifying success and failure criteria for ACME
Project.
TASK 1- UNDERSTAND PROJECT MANAGEMENT PRINCIPLES (LO1)
(a) 1.1 Main principles of the project management process
There are seven principles of project management process that can be directly linked to life
cycle of ACME Project which are as follows: Success: It is hard to measure the success of a project without considering any criteria. It is
need to develop some key benchmarks that can help in defining the success of project plan.
For ACME Project, the success benchmarking for the following project has scope, quality
and relevance (Kshama, 2012). Commitment: The project manager and its team members should show commitment
towards the project. In the case of ACME Project, the project manager and its supportive
staff must be committed to achieve goal, scope, quality, time and cost of project plan.
 Tetrad-Trade off: This principle states that scope, quality, cost and time must be in balanced
state. For ACME Project, top managers’ work to achieve the objectives. It has required that
scope, quality, cost and time has to be at a balanced stage to accomplish success of project. Primary Communication channels: As per this principle, the project manager of ACME
Project should develop a single communication channels so that informatics about the
project can be easily communicated with team members as well as client (Hamel, 2008).
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 Culture Environment: For achieving the success of project, management style should match
with the type of project plan. Similarly, project manager of ACME Project should develop a
suitable culture environment which can support his management style. Process: For any type of project, the process, policies and procedures must be clearly define
and must be in documentation format. It should also explain the roles and responsibilities of
project manager and its supportive team members. For ACME Project, a document should
be prepare which include method, policies and procedures as well as roles and
responsibilities of project manager and team members (Cicmil and et.al., 2006). Developed
guidelines will work as guide throughout the lifespan for whole project.
 Life cycle: It includes the four phase of a project which ensure a clear path and determine
important milestones in the project (Meredith and Belbin, 2011). This principle will help
ACME Project to create a clear picture on starting and finishing duration of project plan.
(b) 1.2 Success/failure criteria for ACME Project
Table 1: Success/failure criteria for ACME Project
Success criteria Failure criteria
Strong and visible leadership support of project
manager of ACME project
Poor leadership style of project manager of
ACME project
Committed project team members Lack of different resources such as human,
technology, financial etc.
Clear objectives and vision (Forsberg, Mooz
and Cotterman, 2005)
Undefined and unclear objectives and vision
Effective distribution of important information Lack of motivation
Support of top management of ACME project Poor support of top management of ACME
project (Pohl, 2010)
(C) 1.3. Explaining concept of time, cost and quality with the help of suitable examples
Time plays an important role to manage project operations in the firm. For example,
management of ACME can clearly define its objectives in order to design and process their
activities. This thing can help to design building for manufacturing of plastic items (Atkinson,
Crawford and Ward, 2006). As per the case, cleared objectives contribute effectively to decide time
frame for the completion of infrastructure development of building by dividing objectives into
specific time frame. This thing also helps ACME to manage quality and cost of its project.
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Cost aids company to find out estimated expenditure on any type of project. For example:
this concept can help management of ACME to identify approximate spending on the infrastructure
development of building by analysing the cost of raw materials like cement, wood and labour for
constructing building. Further, it monitors quality of materials and proper time frame to analyse
appropriate estimated cost because inflation rate, recession and demand of raw material also affect
its cost (Megginson, 2006). Proper estimated cost can also give specific idea to manage monetary
funds for the infrastructure development of building for the plastic production.
Quality also contributes an effective role to improve the efficiency and performance of
ACME project. For example: this concept can give better reliability to measure quality of materials
by comparing standard performance with the actual performance. It can help firm to improve
quality of project by providing proper guidance to make building (Aubry, Hobbs and Thuillier,
2007). Good quality can also aid ACME to complete the project within given time frame and
estimated cost.
(d) 1.4. Explaining ways of terminating Acme Project by including key elements and post-project
appraisal
There are many ways like extinction, addition, integration as well as starvation for
terminating project in the firm. Extinction- ACME has achieved its desired goals. On the other side, it can be stopped
because it is unsuccessful to execute the objectives of firm. Addition- If, a project of ACME has achieved its success then it will be end through formal
way. Employees worked for project, property and resources will be transferred to new
project from the terminated project (Hobbs, Aubry and Thuillier, 2008). Integration- In this part, if, project leads to major success then project outcomes are
integrated to the activities of clients. In addition to this, used resources of ACME will be
released and it will be given to parent organization. It is the common process to terminate a
project.
 Starvation- When management of ACME determines that project is unsuccessful or obsolete
then firm terminates project (Thiry and Deguire, 2007). Organization will take all the
resources from that project. Firm will not invest any money on this project.
Key elements for assess
 ACME organization will consider reducing technical reasons during project execution.
 Firm will measure that project cost should not higher than the profit.
 Management of ACME will also want customer support to fulfil its demand.
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 Firm will analyse project completion schedule in order to complete it in an appropriate time
frame (Huemann, Keegan and Turner, 2007).
 Reducing uncontrollable problems which will lead forcefully termination of the project of
ACME.
Key Elements involved in post project appraisal
There are many key elements which can be covered during post-project appraisal in the
organization.
Overall Project evaluation
 Did project fulfil all the goals and objectives which were decided by firm?
 Was the stakeholder complaints and feedback considered in a positive manner? Was project accomplished within a particular time frame and cost? (Crawford, 2005)
Quality of Deliverables
 ACME will analyse that stakeholder satisfaction on the quality will be appropriate or not.
 Organization will measure that all the deliverable quality are actual as per the document in
order to complete requirements (Pohl, 2010).
Key Accomplishment
 Meeting on the project strength like team work, efficient ways of instrument utilization and
other positive accomplishments.
Future Consideration
 Discussion of future activities which will be considered regarding the project (Larson and
Gray, 2011)
 Discussion of any project maintenance process which will need to manage in a proper way.
In addition to this, management of ACME can also emphasize on sharing the experience of
individuals, opportunities for the improvement and best practices for managing the future projects.
TASK 2 - BE ABLE TO MANAGE A PROJECT’S HUMAN RESOURCES
(LO2)
(a) 2.1 Roles and responsibilities of each of the participants
There are many personnel involved in ACME Project which are as follows.
Table 2: Roles and responsibilities of different ACME project team members
Project Role Responsibilities
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Project Manager
Person is liable for establishing
conjunction with the Project Sponsor.
He assures that project is given to
client in an agreed time. He also
manages monetary funds’ to achieve
proper quality standard in the project.
 Managing and directing the project team
members of ACME project
 Recruiting project employees and consultants.
 Managing relations with team members for the
better coordination to continue project work.
 Complete project planning and control (Barry,
2015).
 Measure project progress and performance.
 Determining team training needs of team
members of ACME project.
Project Team Members
Staff members play an important role
to give effective efforts in ACME
project at all the stages. Every
individual is responsible to manage
specific work in the firm.
 Give functional expertise in management
process of ACME project
 Work with co-associates to assure that project
has completed its needs or not.
 Measurement of present and future processes
regarding ACME project (Javidan and et.al.,
2006).
 Analysing information needs of the project
Project Sponsor
He is the person who select others
members to deliver the project. They
can be a senior member of staff in a
specific area. Result of project also
affects the project Spencer. He is
responsible from the initiation to
completion of the project. He
supervises that project is actively
reviewed or not.
 Work as a supporter in ACME project
 Project sponsor is accountable for the outcomes
of planned project.
 Take core organisational decisions for
development of ACME project (De Reyck and
et.al., 2005).
 Analysing the availability of essential resources
for staff members.
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Project Board
It is a group of management grade
employees who are responsible for
overseeing the progress and
performance of ACME project. They
also react on any strategic problems.
 Finalization of strategies, execution plan and
project scope of ACME project
 Sort out the project issues.
 Prioritization of project goals and objectives of
ACME project (Elo and Kyngäs, 2008).
(b) 2.1 Drawing and explaining a suitable organisational structure for the ACME Project
As per the case study, management of ACME can use hierarchical organisation structure for
ACME project. This structure is appropriate for firm because authority of person can be defined in a
systematic way which helps to improve the efficiency in the project work.
As per the above diagram, Project Board is top authority which prioritizes and designs all
strategies for handling the ACME project. They help in executing the plan which contribute role for
development of the building. Project Sponsor is also liable to analyse that project are implemented
in a proper manner. He also guides the project manager and team members in order to complete
construction of building (Cicmil and et.al., 2006.). In addition to this, he also manages project
operations and identifies its progress and performance. It reports to project sponsor and Board
regarding activities of ACME project. Team members help the firm to complete their assigned
responsibilities in a systematic manner in the project.
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Illustration 1: Organisational structure for the ACME Project

(c) 2.3 Identifying the skills and qualities of leader for ACME Project
Leader or manager should have appropriate skill and qualities to lead ACME project which
are as follows: Communication skills- It is essential for leader to interact with the team members in the
firm. This skill also help manager to share the goals and objectives of project with
employees in order complete them in specific time frame in the firm. Coordinating skills- This quality also contribute towards effective role for leader of ACME
to share work load with team members to complete in a systematic manner. This skill also
helps the firm to increase its efficiency and performance in the market (Kerzner, 2013).
 Problem solving skills- This ability also aids the leader to solve problem of team members of
ACME project. This skill will help the ACME to reduce the risk regarding work and it
provides appropriate direction to finish the job.
(d) 2.4 Specifying human resource requirements for the ACME Project
ACME Organisation needs many human resources like project manager, team members,
quality analyst, architect and human resource manager to complete project in optimistic manner.
Work of Project manager is to manage project operations in appropriate way. He analyses the
current status of project and report to the top authorities in the ACME (Meredith and Mantel, 2011).
Further, team members of firm give their efforts on the specific work to manage project operations
which are assigned by project manager of ACME. Work of quality analyst is to check proper quality
standards of raw material, woods and other resources which are used in the construction of building.
In addition to this, architect of ACME helps to make layout and design building as per client the
requirement (Hamel, 2008). He also monitors on construction work in order to check that work is
being completed in appropriate manner or not. Further, human resource manager of ACME allocate
required human and other resources which are necessary for construction of building.
(e) 2.2 Work break down structure of ACME Project
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Illustration 2: Work break down structure of ACME Project
TASK 3 - BE ABLE TO APPLY PROJECT PROCESSES AND PROCEDURES
(LO3)
(a) 3.1 Drawing network diagram, determining critical path for the project and final duration of the
project
Critical task: Tasks which are not affecting by any kind of delay S, A, B, D, F, H, K, L.
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Illustration 3: Network diagram of ACME Project

Critical path: Path that connects all critical task → Path SABDFHKL
Project duration: Sum of all the duration of the critical tasks: S+A+B+D+F+H+K+L = 72 weeks
(b)3.1/3.2 Effect of the delay and the action taken by project manager
As per the given scenario, construction of the production machinery will take longer time than
planned eight weeks. In this situation, its project manager’s responsibilities are to inform about the
consequences of delay. The answer of project manager should be the construction of production
machinery which will start after 23 weeks due to some reason (Cicmil and et.al., 2006). But this
activity is not coming under critical path and not affecting the entire project. So this work can be
delayed by more eight weeks without any issue.
On the other hand, delay in supplying of raw materials is by 6 weeks because of flood. The
impact of this delay on entire project is the whole work which will delay and take it more time to
complete it. But after developing network diagram, it has been found that delay in supply of raw
material and construction of the production machinery are not coming under critical path (Meredith
Belbin, 2011). Therefore, it will not affect the entire project plan.
(c) 3.1 Role of Gantt Chart and Resource Histogram in order to improve the management of ACME
Project
Gantt Chart: It is the most common technique of project management to define the activities of a
project with respect to time. The left side of chart is consisting of the list of tasks and on top side, a
time scale is given (Nishadha, 2012). In Gantt Chart, each and every activity of a project plan is
defined by a bar. The length of bar has shown a start and end time as well as duration. In the case
of ACME Project, the project manager can use this tool to improve management of project plan in
right manner. For example, all the activities of ACME project plan has drawn on Gantt Chart over
the time scale. With the help of this, project manager can track movement of every task and
compare it with the estimated duration (Forsberg, Mooz and Cotterman, 2005). If there is any delay
created in any activity then other tasks can be managed according to it.
Resource Histogram: It is used by project manager to give visual presentation of utilization of
different resources in a chart form with the time scale. It is a bar chart which is used for showing the
particular amount of time that a specific resource is scheduled to be worked for predetermining the
time period. For example, in ACME Project, the four major human resources have used: project
manager, project sponsor, team members and project board (Pohl, 2010). The above figure shows
that every member of this project has scheduled to be worked for specific time duration. With the
help of this, it can be easy to determine that whether the human resources are over utilized,
underutilized or effectively utilized.
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Therefore, by using Gantt Chart and Resource Histogram, it can be easy to improve
management of ACME project.
(c) 3.2 Crash activities during ACME project in order to complete the project more quickly
With help of above network diagram of ACME project plan, it can be easily analysed that
the activities which are not coming under the critical path will not affect the whole project. The
tasks G, C, E, I and J are not coming under critical path and they can be cancelled out. For this, the
slack time of these activities has required to reduced and bring it out at zero. By doing this, the
project will be finished more quickly as compared to the given time duration.
(d) 3.2 Analysis of Cost and Time performance for AMCE project during its project life
For analysing cost and time performance of ACME project during its project life, some
methods are as follows:
Cost Performance Index (CPI): It helps in analysing the efficiency of the cost used by a project. It
is measuring the value of completed work by comparing with actual cost which has spent on
project. In the case of ACME project, suppose the project has to complete within 12 months and
estimated cost for this is $100000. After six month, $60000 has been spent. In the review, it has
found that only 50% of the work has been done. From the calculation of CPI, it is determined that
value of CPI is 0.67 which is less than one (Atkinson, Crawford and Ward, 2006). It is denoted that
ACME project is over budgeted. Therefore, with the help of CPI, cost performance of project can
be measure.
Time Performance: To measure the performance of ACME project during its entire project life, the
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Illustration 4: Network diagram of ACME Project

project manager can compare it with actual time duration with the estimated time span. For
example, at time of preparing the requirement statement, estimated time of this activity is 8 weeks.
After the implementation of plan, it was found that the following tasks have taken 6 weeks. From
the comparison of actual and estimated time, it has found that preparing the requirement statement
was completed before 2 weeks from scheduled duration. It was defined as per the time performance
of project (Megginson, 2006).
Therefore, CPI and Time Performance method helps in analysing the cost and time
performance for ACME project during its project life.
(e) 3.4 Ways to manage any changes which are likely to be required during the life of ACME
project
In ACME project, it is require managing the changes during project life cycle. In this
context, Project Change Control Method is more appropriate which is as follows:
 First step is monitoring of entire ACME project work and notice the issues which are
occurring during implementation of plan. Along with this, the impacts of problems on
project plan have also analysed.
 Second stages are enlisting the changes by creating the change request and send it to Change
Control Board (CCB) which is prepared by project manager (Aubry, Hobbs and Thuillier,
2007).
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Illustration 5: Project change control procedures for the existing plan
(Source: Manage changes in your project, 2012)
 CCB panel has evaluated the change requests and take the decisions to approve or reject the
modifications in ACME Project. It is an integrated change control phase. If the request is
approved then it will send to further action otherwise no modifications will be done in
project.
 Next stage is directing and managing execution of changes where the project manager has to
start analyzing the changes and give instructions to team members about new modifications
in existing ACME project plan (Hobbs, Aubry and Thuillier, 2008).
 Last step is implementation of changes in which project manager has implemented new
modifications and that will contain extra cost as well as it will increase budget of ACME
project.
(f) 3.1 Ways of Project Closer
There are three ways of project closer which will be used by project manager of ACME
project at different time that are as follows: Addition: When ACME project will complete and considered as a formal part of ACME
Product PLC, at that time project manager will close the project. It will be done after the
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completion of entire project when it is to be handover to the client. For closing out the
project, the manager will transfer project team members, equipments, property and other
resources to new building of ACME Product PLC (Thiry and Deguire, 2007). Integration: When ACME Project is viewed as an integral part of ACME Product PLC then
project manager will use integration project closer method. Under this, the resources which
have been used during the project will be releases and distributes in main ACME Product
PLC Company.
 Starvation: When the project manager thinks that the risk factors have increased with time
then it will affect the entire project in very negative manner. Then, he will take decision to
close out ACME Project. In this process, first plan will terminate by decrease budget and
release all the resources. After this, ACME Product PLC will stop more investment of
project plan in future (Huemann, Keegan and Turner, 2007).
Once the project manager of ACME Project has completed his own work, the ACME
Product PLC can open its new building and start the production of plastic tableware. Company will
integrate new facility with existing plant around the world to manage the production process and
other business activities.
(g) 3.3/3.4 Evaluation of completed ACME project
The evaluation of completed project is needed to determine the loopholes and check whether
the work is able to deliver the expected outcomes or not in right way. In the case of ACME Project,
the project manager will require to evaluate the completed project (Crawford, 2005). For this, the
Key Performance Indicators (KPI) will be developed such as outcomes, utilization of resources,
time and cost performance etc. For example, by comparing the estimated budget and actual
spending over the ACME Project, the evaluation of accomplished project will be done. If project
plan will finish within an estimated budget and able to deliver expected outcomes then it cost
performance will count in a success criteria otherwise in failure benchmarking (Larson and Gray,
2011). Therefore, by such types of ways, project manager will evaluate the completed project and
take decision according to it. On the other hand, there are some methods that will be used by project
manager to evaluate completed ACME project which are as follows:
Budgeted cost for work scheduled: Under this method, project manager will compare estimated
budget with spending at each and every step of project plan. Over or under budget spent will
help in measuring the performance of ACME Project.
Budgeted cost for work performed: It is a budgeted cost of work which has actually completed in
carrying out a scheduled task during a give time duration. For ACME Project, the actual time
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taken to complete each activity of plan will be compared with estimated time duration by
including spending of budget (Cicmil and et.al., 2006). The outcome of comparison will help in
measuring the performance of ACME project.
CONCLUSION
From the above research, it has been concluded that there are some criteria for ACME
Project which defines success and failure of aspects of project. Time, cost and quality are some
objectives which have been used to design project management systems and process for proposed
project. Project manager, project board, project sponsor and project team members have different
duties and responsibilities while working on ACME Project. Gantt chart and Resources Histogram
are used by project manager to improve management of proposed project plan. It is important to
evaluate the complete project to measure the performance of ACME Project.
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