Principles of Project Management for ProCon Services Australia

Running head: PRINCIPLES OF PROJECT MANAGEMENT
PRINCIPLES OF PROJECT MANAGEMENT
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1PRINCIPLES OF PROJECT MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Current status of project.........................................................................................................2
Cost variance......................................................................................................................3
Schedule Variance..............................................................................................................3
Additional information required by new project manager.....................................................4
Organizational Zoo Model.....................................................................................................5
Existing team environment....................................................................................................5
Conclusion..................................................................................................................................6
Recommendation........................................................................................................................7
Reflection...................................................................................................................................7
References..................................................................................................................................9

2PRINCIPLES OF PROJECT MANAGEMENT
Introduction
The following report reflects on ProCon Services Australia, which is a project
management consultancy (Schwalbe, 2015). This particular organization has been engaged
by Vella IT offices Fitouts, who is mainly undertaking a large number of fit outs of medium
size office buildings in Sydney suburb. This particular work has been done by team of
company staff and contractor which is led by project manager. The given fit out has been
completed and the project manager, Tony faultier has just left the organization suddenly.
After leaving the organization the project manager has move to overseas taking up good
position in another organization (Fleming and Koppelman, 2016). The report mainly deals
with finding some of the ways which can be used for investigating the present status of the
given project along with determination of corrective method which is required. It is mainly
inclusive of providing certain number of advices for replacing project manager along with
increasing the performance of project team (Kucharska, and Kowalczyk, 2016).
In the coming pages the current status of the project which is inclusive of cost
variance and schedule variance has been discussed in details. After that various additional
information which is required by new project manager has been discussed in details. An idea
has been provided regarding the organizational Zoo model has been discussed in details. An
analysis has been done regarding the existing team environment of this organization. Apart
from this, in the end part of report a list of recommendation along with reflection has been
provided.
Discussion
Current status of project
The building generally comprises of four levels and has been designed for housing
around 200 people (Walker, 2015). The floor has been designed in such a way that each floor

3PRINCIPLES OF PROJECT MANAGEMENT
can easily accommodate 50 people only. Each floor comes up with 500-meter square area for
office. Vella Office Fit out is in charge of the entire fit out like furnishing, plumbing,
electrical and data along with telecom infrastructure (Heagney, 2016). The ultimate goal of
this project is to provide accommodation to 200 staff members of Ferrari software which is
computer software company which needs to be relocated into the given building.
Cost variance
A standard cost variance can be easily defined as the difference between baseline cost
and actual cost (Verzuh, 2015). The variance is mainly used for monitoring the total value of
cost which is incurred by a given. It is the duty of management to take responsibility when a
material negative variance is incurred. The standard from which variance can be calculated is
mainly derived in large number of ways (Marcelino-Sádaba et al., 2014). A standard kind of
cost variance is mainly used if the standard product is not baseline. There are many types of
standard cost variance like fixed overhead spending invariance, labour rate variance,
purchase price variance and lastly variable overhead spending variance (Binder, 2016). The
total fit out of the budget is around 1.2 million dollars and till now 675 thousand dollars has
been spending.
Schedule Variance
Schedule variance can be easily calculated by subtracting budget cost of work
schedule from budget cost of work performed (Eastman, 2018). Budget cost of work
performed generally measures the total budget of the entire project. Schedule variance
percentage in project management KPI mainly provides an idea regarding how much the
manager stick to the terms of percentage (de Carvalho et al., 2015). This particular variance
mainly provides an idea regarding how much work in percentage of how much extra work
needed for excess budget (Dong and Ng, 2015). The original plan for completion was around