Project Management - ABC Company

Project Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PRINCE 2........................................................................................................................................1
TASK...............................................................................................................................................2
Schedule......................................................................................................................................2
Critical Path Diagram..................................................................................................................5
.....................................................................................................................................................5
.....................................................................................................................................................5
Scope...........................................................................................................................................5
Requirements...............................................................................................................................6
Deliverables.................................................................................................................................7
Cost.............................................................................................................................................8
Time............................................................................................................................................9
Human Resource.........................................................................................................................9
Risk ..........................................................................................................................................10
Quality Control..........................................................................................................................10
Communication.........................................................................................................................10
CONCLUSION .............................................................................................................................11

INTRODUCTION
In the present scenario seeing the change taking place in each and every field it is
important for every company to adapt to these changes to run with the trends and the market.
ABC Company is planning to adopt new accounting software XERO for maintaining its
accounting records and transactions. The change is required because of the outdated manual
process of recording transactions was creating problems to maintain pace with immediate and
urgent financial and other requirements. By this research project, various factors that the
company has to consider and the possible challenges that the company is going to face as a result
of the change.
PRINCE 2
PRINCE2 is a structured method of project management and programme for practitioner
certificate. PRINCE 2deals with division of projects into stages that could be managed as well as
controlled. The program got worldwide acceptance including UK (Fleming and Koppelman,
2016). PRINCE 2 was created as per the standards of UK government especially with regard to
projects of Information systems. There are seven principles on which PRINCE2 is based.
Principles of PRINCE2 are defined as mindset that helps in aligning the project with the
methodology of PRINCE2. The principles are
 Continuous Business Justification- It deals with continuous updation of the project to
ensure its viability at every level.
 Learning from experience – maintaining projects logs and referring them frequently in
reference to current and previous projects for avoiding reinventing wheels.
 Defining Roles & Responsibilities – separating roles from individuals. Four levels of
roles are first corporate management, second project board, third project manager and
the fourth level is team level.
 Stages – bifurcating the projects between stages such as planning , updation of business
case and next stage planning.
 Managing by exception – aspects are defined for each objective of the project.
 Product Focus – focus is on defining and delivering the products meeting its quality
requirements (Harrison and Lock, 2017).
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 Change as per project requirement – PRINCE2 is developed as per environment, size,
importance, risk, time capability and complexity.
TASK
Considering the above principles of PRINCE2 the ABC is planning to adopt new
accounting method XERO for maintaining it accounting records through softwares changing
from the manual method.
Schedule
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Task Name Duration Start Finish Predecessors
Project planning phase 13 days Wed 7/31/19 Fri 8/16/19
Setup local planning 3 days Wed 7/31/19 Fri 8/2/19
Training documentation
strategy for new software 4 days Mon 8/5/19 Thu 8/8/19 2
Infrastructure and system
requirement 2 days Fri 8/9/19 Mon 8/12/19 3
Budget planning 2 days Tue 8/13/19 Wed 8/14/19 2,4
Data cleansing 2 days Thu 8/15/19 Fri 8/16/19 5,2
Project execution phase 19 days Mon 8/19/19 Thu 9/12/19
Process refinement 1 day Mon 8/19/19 Mon 8/19/19 6
Allocation of
responsibilities 2 days Tue 8/20/19 Wed 8/21/19 8
Update software 3 days Thu 8/22/19 Mon 8/26/19 8,9,5
Vendor involvement 4 days Tue 8/27/19 Fri 8/30/19 10
Data conversion phase 2 days Mon 9/2/19 Tue 9/3/19 11
Testing 2 days Wed 9/4/19 Thu 9/5/19 12,10,2,4
Training sessions for users 1 day Fri 9/6/19 Fri 9/6/19 13
Software build out 3 days Mon 9/9/19 Wed 9/11/19 14
Software configuration 1 day Thu 9/12/19 Thu 9/12/19 15
Project monitoring 7 days Fri 9/13/19 Mon 9/23/19
Continuous monitoring 5 days Fri 9/13/19 Thu 9/19/19 16,14
Completion of
documentation 2 days Fri 9/20/19 Mon 9/23/19 18
Project closure 1 day Tue 9/24/19 Tue 9/24/19
end of project 1 day Tue 9/24/19 Tue 9/24/19 19
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Critical Path Diagram
Scope
Scope is an important part of the project management. Project managers are responsible
for creating the scope statement laying down the proper plan for implementation of the Xero
software within the specified time and under its estimated costs. For implementing the new
software company will have to recruit new personnel’s who are comfortable with the software
and have expertise in maintaining records over the software’s. As per the requirements of the
business company will be able to maintain separate accounts enabling it to get statement as
required for the specific accounts (Kerzner, 2017). No doubt it will not be a easy task for the
managers to implement the new software’s at every location with the existing staff, as it will
require a complete switch from the manual to the technical world.
The project of implementing new softwares has a very wide scope as it is the need of the
changing world. As the world is moving towards the technological advancements it is important
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for the adopt these changes. The new software will make the recording of the accounting
transactions easy and simple. The company will not have to maintain different accounts on the
manual basis and maintain large and heavy registers for recording the transactions. The switch to
software will reduce the work of employees and the employees will be able to make entries with
the immediate effect as the transaction occurs. The adoption is good as the change will help the
project manager to maintain records as per per the announcements made for the future by UK
government.
The company will be able to address its reports on an annual basis within the specified
time. The software will help the company to catch any errors which have occurred while
recording the transactions immediately (Kerzner, 2019). As a result the company will be able to
maintain more accuracy in its accounting records and more reliability compared to the manual
system.
Requirements
The ABC Ltd. will be required to undertake several steps to successfully implement the
project. Professional, technology and training of the new software are the essential elements
through which implementation of the new software will be successful. For attaining the success
in the project of change, project manager will be required to arrange for all the above three
elements.
Professionals
For implementation of the new process the company will be required to recruit
professional who are capable of doing work on the new software. For having efficient
professionals, company will be required to conduct interviews. The accuracy in recoding the
transactions is important as it will reflects the accounting records of company like sales,
purchases, expenses etc. and a mistake in that can create differences in the balance. Therefore it
is important to have the company to have professional for performance of the task. Professional
can coordinate with the existing employees to transfer the records from manual registers to the
computers. New professionals will be required to for starting the new work on the project with
accuracy and to verify the work records for their accuracy.
Technology
Implementation of new methodology of recording transactions is going to be a complex
project for the managers of the company. As the company is moving from the manual method to
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digital method it will require number of computers for recording the transactions for many
people in each department and at every branch of the company. For recording the transaction
company will have to the latest version of the XERO software. The company will also be
required to get licencing permissions for the software’s. The company will have to maintain
networking channel for which it will require servers and other necessary equipment’s. All the
above mentioned things are the essential necessities for implementation of the new process
(Meredith Mantel Jr and Shafer, 2017).
Monetary Requirements
Every company requires monetary funds for bringing and implementing a new change. If
the ABC does not have necessary funds than it will not be able to implement the new accounting
process. The managers will require funds at each and every stage of the implementation . It will
require funds for purchasing the softwares , new computers networking systems, for obtaining
licence, employing new professionals , payments for the training of the existing staff for working
on the software. For meeting all these expenses company will be required to have monetary
funds. The availability of the funds will enable the company to complete the process within time
and with effectiveness. Lack of funds will extend the process and the company may suffer with
the errors in the recording process. There are many sources through which company can avail
monetary support like loan from banks and other financial institutions for meeting its monetary
requirements for the project. Therefore funds is the most important factor without which a
change in the process from manual to computerised system cannot be implemented successfully
(Schwalbe, 2015).
Deliverables
In the updating process the first deliverable of the process would be accuracy the
company would be delivering more accuracy in the accounts and in the preparation of the
financial statements. The company with the computerised software will be able to identify and
detect the defects in the current transactions as well as from the previous records which can
needs to be rectified. The accurate information will project the right position to the outsider
(Sears and et.al., 2015).
Project manager cannot implement the change if does not give the effective deliverables
of the new process. The software will be making the large and typical process of recording the
accounting transaction much easier and concise and precise as a result the company would be
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able to deliver the required information about the related account without messing up with the
big heavy registers. It will be possible for the company to timely update its accounting records.
The company will be able to update with new scenarios as and when required like the
implementation of the new taxation system and the new methods of recording the accounts as are
given by the government from time to time.
With the help of computerised system of accounting the company will be able to have
remote access over its accounting records. The company will be able to have access over its
accounts from anywhere through the help of networks. Employees will not be required to carry
bulky books everywhere (Turner, 2016). The company will be able to maintain a uniform
accounting base over all its branches and offices. The most importantly, it will make the
operations transparent and the stakeholders and shareholders would be able to know and check
the position of the company to make decisions.
Cost
For implementing the process, the company will be required to incur n number of
expenses. The overall budgeted cost of the project is proposed to be GBP 3000. The budget is
made by the expert keeping in view the structure and other necessary things required for the
project. The project manager has to make all the arrangements for the project keeping in view the
given budget.
Cost of buying computers and other equipment’s
The cost of purchasing the computers, softwares and other other requirements are
estimated to cover almost 60% of the budgeted forecast which is GBP 1600. Within this budget
company will have to buy Xero software, computers, licence, networking systems and other
related equipments for its installation. For this the company will be required to bear a costs
around GBP 1600. Costing of the computers may vary around 10% as the latest version
compatible with the software will be installed.
Cost of professional
The ABC Ltd will be required to recruit professional for working on the new softwares.
This would be completely new process therefore will charge high than the actual rates. It will
cost around 20% of the entire budget. The company will also be requiring experienced
professionals to verify and check the accuracy of the recorded transactions so that they can
prepare the financial statements of the company showing the true and accurate position. As the
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financial statements plays a very important part in decision making process for everyone who is
associated with the company.
Cost of training
along with the cost of purchasing and recruiting professionals company will also be
required to incur training expenses (Verzuh, 2015). The company will be required to pay for the
training sessions giving the knowledge of the software and the ways to work with new software.
Company will also be required to train the existing employees to make them comfortable with
new software as the company cannot remove the employees who are working for the company
from years. The company would be incurring the remaining 20% of the cost on the trainings and
development of the staff.
Time
The project manager are required to present a planned proposal along inclusive of the
time within which it will be effectively implemented. The managers of the company will have
to lay down the proposed scheduling and the timing for each step within which it will be
completed. Timing is important aspect in a project management as the project will lose its
importance if not achieved within the target and extension beyond the time limits will also
increase the budgeted costing of the project. The project is estimated to implement over its all
branches and offices within 41days and up to the maximum in seven months after which costing
of the project will increase by 15 %.
Human Resource
Human resource are the important assets of every enterprise and therefore it is necessary
for the company to consider them at the first before bringing or implementing any change. For
effective adoption of the computerised method of accounting the ABC Ltd. will require
additional professional for making the adoption of the software a success.
Professional who have the knowledge about the accounts and know how to operate the
software for recording the transactions accurately. Professional are necessary as they will
eliminate the chances of error to the minimum on their own. The company will also require
professional auditors to check the accuracy of the transactions and the accounting records and
will help to identify any mistake in compliance with mandatory standards. The professional will
also be required to prepare the financial statements of the company which are to be made
available for public references. Software experts who will make necessary updates in the
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software as and when required and as per new regulations given by the government from time to
time.
Risk
Implementation of the new will bring various benefits to the company in the long run but
at the same time there are various risks factor which the company may face when implementing
a change.
Monetary Risk – the company may face monetary risks if the managers will not be able to
implement the change effectively. The extension of the time frame can increase the project
costing. The company may not be able to arrange funds for the implementation of the project or
the funds arranged are not sufficient.
Human Risk – The major risk which is associated with the change is related to the human
resource of the company. Employees may not accept the changed accounting process there could
be various reasons for the resistance of the process or the professional might not coordinate with
the existing employees which can make the process difficult for the managers to implement. The
trustworthy employees of the company might leave the company because of the changed process.
Legal Risk – The change of the process was implemented because of the mandatory
requirements of the government. The process is almost new for the company so the default in
compliance with any of the procedure can lead to legal fines and penalties for the company.
Quality Control
With the implementation of the new process managers should ensure that the quality is
not sacrificed with the project
Company can use the method of Six Sigma for maintaining the quality.
Quality over here means that the records are maintained properly as per the specific
requirements of the company. Company can use six sigma for quality as the accounts are to be
maintained without any mistake and errors. Company can have the proper audit of the accounts
at timely intervals so the the mistake and process could be rectified and changed on time. This
will help the company to maintain quality of the accounting records.
Communication
Communication plays an important part in each and every stage of the project
management from the initial beginning to the end procedures. The managers should ensure that
the change is explained and properly communicated with the employees. The company will have
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to explain the benefits and mandatory requirements because of which the change is implemented
this will reduce the chances of resistance.
CONCLUSION
Carrying the above report it can be concluded that the company for implementation of the
new accounting process from manual to the computerised system will required to consider
various factors. It will have to prepare Forecasted budget for the project within which it will
make necessary arrangement for the process. Along with the change it will have to incur costs
for professionals equipment’s etc.. So the change is important for complying with of the
government.
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REFERENCES
Books and Journals
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sears, S.K. and et.al., 2015. Construction project management. John Wiley & Sons.
Turner, R., 2016. Gower handbook of project management. Routledge.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
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