This project management case study examines the relocation of ABC Company's office from West End to Central London. It covers project initiation, team management, PRINCE2 methodology, risk management, and project success evaluation.
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PROJECT MANAGEMENT
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK...............................................................................................................................................1 Project initiation document..........................................................................................................1 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14
INTRODUCTION Project management is considered as method of organising activities in such manner so that requirements of task can be met (Tenera and LuĂs Carneiro, 2014). Present study is based on ABC Company; entity is planning to move office from West end to central London. In the existing location enterprise is unable to generate sales and current rent is too high that increases cost of business as well.The main objective of shifting from one place to other is to generate high revenues and increasing its number of consumers. Current assignment will prepare project initiation documents for this task. Furthermore, role of project manager will be explained. Report will justify project methodology and will prepare project plan for this office moving project. TASK Project initiation document Title of projectTo move office from West End of London to central London Business caseABCcompanyisplanningtomoveoffice premises from West End of London to Central London. The main agenda of moving to other location is to generate more revenues. ABC is working in furniture manufacturing industry, in centralLondontherearemanycorporate clients that buy manufactured furniture. Thus, movingtootherlocationcanincrease profitabilityofenterprisetogreatextent (Schwindt and Zimmermann, 2015). Purposeï·To generate revenues ï·To attract new corporate clients Estimated budgetEstimated budget for this moving office project isÂŁ10000. Explanation for estimated budgetABC is planning to move to other place in order to generate more revenues and attract more consumers towards the brand. For that 1
entity has estimated that it will complete the entire relocation project withinÂŁ11200. Planning cost-ÂŁ500 Buying new property-ÂŁ5000 Space design and furnishing cost-ÂŁ2000 Telecom expenditures-ÂŁ1500 Miscellaneous expenses-ÂŁ1000 Property solicitor and agent fees-ÂŁ1200 Project sponsorBoard of director Project managerMr. John Characteristics and Role of project manager Project manager (PM) is most important person in the project. Individual is responsible for overall success or failure of the Task. Role of project manager in this moving of office proposal are described as below: ï·Communicator:Projectmanagerplaystheroleofcommunicator,individualis responsible to circulating information so that all team members can understand mission of this proposal. Leader needs to have negotiation skill so that person can become able to accomplish this relocation project successfully (Lappe and Spang, 2014). ï·Integrity:This is another essential characteristic of project manager; individual has to ensure using correct words and actions. Person has to follow ethical practices so that no issues take place. In the current relocation of office proposal, manager has to set values and have to reward such team members those who maintain integrity significantly (Pinto, 2014). ï·Monitor/ Problem solver:PM needs to have problem solving skills; issue may take place any time. In such condition it is very important for the manager that to find out root cause of problem and find out best solution so that project can get accomplish within specified period of time. By handling issues significantly and taking brave decision officer can get positive results. Individual has to monitor activities time to time so that issues can be identified timely and can be resolved (Turner and Ledwith, 2018). 2
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ï·Task delegation:It is another most important characteristic of PM, individual has to allot work to all team members as per their capabilities and qualification. By this way they will be able to perform well and will be able to contribute well in accomplishing the organisational goal of ABC Company. PM needs to be able to judge skills of each team members so that task can be assigned to them accordingly (GemĂŒnden, 2015). ï·Empathy:Project manager is responsible for showing empathy towards team members. Many times work of all executives gets affected due to several reasons. In such condition PM has to ensure showing empathy rather than sympathy so that all people can handle such troubles effectively. Empathetic gestures enhance confidence of the person and motivate them to work well. ï·Motivator:Project manager is the most important person, individual has to motivate team members by giving them reward and recognition (Pitsis and et.al., 2014). This can help in making them happy. This is beneficial in making people positive and loyal towards the firm, by this way they will contribute well in accomplishing goal of business unit. ï·Team development skill and organiser: Project manager has to behave life leader and have to form a strong team (Nusslein and et.al., 2016). This can help in increasing coordination among all employees and they all will work together in order to get positive outcome. Project officer has to understand capabilities and style of working of each individual that may help in finishing it on time with required quality. Individual has to organise activities smoothly and in systematic manner. ï·Risk management: PM has duty to manage risk and minimise consequences of these constrains. Individual has to make contingency plan so that issues can be avoided and benefits can be strengthen (RolstadĂ„s and et.al., 2014). Composition andmanagement of teams A project cannot be completed without strong team members. People works together in order to achieve a common goal. In the existing proposal of moving office in Central London is the big task and for accomplishing it efficiently PM is required to compose and manage team well.In order to form a strong team, management is required to identify number of people require in project and skill that needs to have within them (Floricel and et.al., 2014). Individual 3
has to recruit people by considering actual vision of ABC firm and accordingly they have hire people in this proposal. Team membersRoleSkills/ Knowledge Project managerPM is responsible for making plan,organisingactivities, monitoringalltasksand controlling over activities. Communication skill Leading/ managing abilities Monitoring capabilities Finance executiveIndividual is responsible for allocating funds and keeping recordofallfinancial transactions. This supports in controlling over unnecessary expendituresandmanaging flowofcashwell(The Advantages of the PRINCE2 Methodology, 2016). Technical skill Goodknowledgeof accounting standards DesignerPersonmustbeableto performdesigningand architectureworkinnew office so that new premises can be utilised properly. Designing skills Technical executiveTechnicalexecutiveis responsibleforperforming technicaltasksuchasIT installation,completing electric work etc. Technical skill LabourTheyareresponsiblefor relocationoffurnitureand other equipments (5 Ways To MeasureProjectSuccess, 2015) Knowledge of same work 4
Project manager in this moving office project needs to have excellent analytical and organising skills. Apart from this, it is also essential to have technically sound so that all the task can be performed and managed well.There are many people those who work together in this relocation proposal thus, it is essential that they all work together and perform their work significantly. In order to manage all team members well, PM has to clarify the role and responsibility of all team members (Project Monitoring and Control,2018). Individual has to make them understand what they are supposed to perform and for what they are accountable. This can support in minimising issues and managing all tasks significantly. One they all are allotted their role then individual has to set individual goal and have to make them aware with organisational vision. This can help in managing team members well and aligning their work. PM has to monitor progress and performance of each person. Furthermore, team management can be done by PM of ABC Company by motivating people by giving intrinsic and extrinsic rewards. This can boost people and can support in making them loyal. In addition, giving timely training and raising their skills is the way that can assist in managing human resources well (Tenera and LuĂs Carneiro, 2014). Project methodology Choosing correct methodology is essential for completing a project successfully. Prince 2methodology is considered as essential and most effective tool that emphasis on clear division of activities into manageable stages. This is the best way to schedule activities and complete it within specified period of time. Prince 2 methodology is the most effective process based approach that concentrates on controlling over entire proposal and meeting the actual goal (Pitsis and et.al., 2014).It emphasises more on clear planning. There are seven major principals of these methods: ï·Project must be justifying business objectives. The entire project plan must have realistic benefits and cost assessment. In the preset project of moving office from one place to other PM has to ensure that this relocation gives necessary benefit to ABC Company and help in increasing its revenues (Nusslein and et.al., 2016). ï·Team members have to improve their knowledge from every stage; they have to learn new things that can support them in their future work. 5
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ï·Most essential principle of price 2 methodology is that each team members must be clear with their role and responsibilities. PM has to make all aware with their duties and all have to perform it well in order to accomplish the project objective. ï·Project managers have to break entire task into manageable sub activities, proper planning in each phase can help in minimising issues (Floricel and et.al., 2014). ï·Board members cannot closely monitor each activity thus; they have set some necessary baseline requirements such as cost, time, quality, scope etc. so that PM can manage the entire proposal accordingly. If there is any kind of issue then project manager has full power to make changes in existing plan in order to bring it back on track. ï·Quality isthe mostessentialpart of project;PM hasto take support of quality measurement tools can have to ensure quality of work. Deliverables are needed to be checked timely, this can support in meeting the actual goal (The Advantages of the PRINCE2 Methodology, 2016). ï·It can be tailored for meeting the requirements. Use of prince 2 methodologies in this moving office project has supported PM in analysing improvement areas and making necessary changes time to time so that this project can be completed within specified period. Shifting office is not an easy task and PM has to make changes many times according to each situation (RolstadĂ„s and et.al., 2014). This prince2methodologyaidsinidentifyingflawsandmakingcorrectionssothatoverall organisational goal can be obtained. Project management plan Task NameDurationStartFinishPredecessors Pre-planning22 daysThu 10/18/18Fri 11/16/18 senior management approval5 daysThu 10/18/18Wed 10/24/18 assign internal manager for coordinating office relocation7 daysThu 10/25/18Fri 11/2/182 review lease document2 daysMon 11/5/18Tue 11/6/183 define requirements of relocations3 daysWed 11/7/18Fri 11/9/183,4 estimate budget5 daysMon 11/12/18Fri 11/16/185 selection of new office35 daysMon 11/19/18Fri 1/4/19 property consultant2 daysMon 11/19/18Tue 11/20/186 deal with property agent2 daysWed 11/21/18Thu 11/22/188 6
shortlisted business space3 daysFri 11/23/18Tue 11/27/188,9,4 cost analysis10 daysWed 11/28/18Tue 12/11/1810,8 final selection of best location2 daysWed 12/12/18Thu 12/13/1811 Lease documentation6 daysFri 12/14/18Fri 12/21/1812 solicitor approval8 daysMon 12/24/18Wed 1/2/1913 lease sign2 daysThu 1/3/19Fri 1/4/1914,13 space design and furnishing35 daysMon 1/7/19Fri 2/22/19 interior design15 daysMon 1/7/19Fri 1/25/1915 start renovation10 daysMon 1/28/19Fri 2/8/1917 set-up weekly progress8 daysMon 2/11/19Wed 2/20/1918 arrange site visit2 daysThu 2/21/19Fri 2/22/1919 IT and telecoms requirements17 daysMon 2/25/19Tue 3/19/19 arrange hardware software3 daysMon 2/25/19Wed 2/27/1920 installation of equipments14 daysThu 2/28/19Tue 3/19/1922,17 Physical relocation9 daysWed 3/20/19Mon 4/1/19 confirm relocation date5 daysWed 3/20/19Tue 3/26/1923 interview removal company2 daysWed 3/27/19Thu 3/28/1925 set move date1 dayFri 3/29/19Fri 3/29/1926,25 communication with stakeholders1 dayMon 4/1/19Mon 4/1/1927 final set up18 daysTue 4/2/19Thu 4/25/19 take inventory in new office8 daysTue 4/2/19Thu 4/11/1928 start working by allocating work to staff8 daysFri 4/12/19Tue 4/23/1930 end of project2 daysWed 4/24/19Thu 4/25/1931 7
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Major risk There are many risk associated with this moving office project, these are described as below: RiskDescriptionProbabilityImpact Human resource riskItispossiblethat shifting or relocation createsissueamong existingemployees and they leave their job(GemĂŒnden, LowHigh 9
2015). Financial riskRelocationofABC officemayincrease financialburdenon business unit and it is possible that it goes over budget. HighHigh Technical riskDuringshiftingnew installationwillbe required, at that time technical issues might takeplacethatmay affectentireproject badly(Turnerand Ledwith, 2018). moderatemoderate Scope riskABCisplanningto generatemoresales by shifting office but itmaybepossible that in new place it fails to attract buyers andlooseexisting consumers as well. ModerateHigh Scheduling riskImproperscheduling orsubdivisioncan createissueand projectwillnotget completed on time. ModerateModerate 10
Measures to control monitor the risk and quality Risk management plan is helpful tool that supports PM in managing constrain and minimising its adverse effects (Schwindt and Zimmermann, 2015). There are various methods to control and monitor these risks. Risk reassessment It is the process that can be implemented by PM of moving office project, in this technique individual can first identify risk that may affect the overall success of this project. Once issues are being identified then manager can find out best solution to deal with it. Next step is to evaluate the current risk. In this stage individual can evaluate the consequences of this constrain; this will help in identifying severity of such problems (5 Ways To Measure Project Success,2015). Furthermore, PM can evaluate the risk management plan and can ensure to what extent existing plan is able to handle such consequences. Riskmanagerhastoimplementeffectiveriskcontrolprocessandhavetotake appropriate action so that such issues can be avoided. PM is responsible for monitoring and controlling over constrains. This is the process that aid in finding the potential risk and monitoring residual risks. Controlling process help manager of this project in finding solution to manage such dangers and encourage stakeholders to give optimise response towards such constrains (Project Monitoring and Control,2018). During planning process PM identify risks and prepare risk register, accordingly individual prepare contingency plan so that project can deal with such issues efficiently. Risk response owner has to create risk report and have to take necessary decision in order to minimise adverse effects of such problems. In present study PM of office moving project performs qualitative risk analysis process; by this way individual prioritise risks and take necessary action to resolve such issues. In order to monitor entire project, manager has to review each activity and have to measure it against set criteria (Floricel and et.al., 2014). Individual has to ensure whether project has become able to meet cost, quality and time parameters or not. Quality control measurements 11
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By applying quality control tools PM of office moving project can be able to ensure the quality. Updating quality baseline and reviewing quality time to time is the process that ca support PM of this project in controlling over quality risk. Cause analysis is the tool that is applied for the project in order to manage quality aspects (Tenera and LuĂs Carneiro, 2014). Control schedule and control cost By applying earned value management PM of relocation office project can calculate cost performance index and schedule performance index. This will help in measuring cost and defining the success rate. This will be beneficial in controlling over cost and monitoring entire project (Nusslein and et.al., 2016). Evaluate project success and failure It is essential to evaluate the actual success/ failure rate of the project plan. In the existing project of relocation of ABC office from one place to other has been successful. Evaluation can be done on various parameters: Scheduling: The actual finishing date of this task was assumed 24thApril2019 and it has been completed near to that date (The Advantages of the PRINCE2 Methodology, 2016). That means scheduling was proper and PM has lead this proposal successfully. Quality:That is another evaluation parameter, the existing project has meet standard and have been successfully shifted to other location as per set quality plan. Cost:The relocation of ABC project has been completed within set budget.PM has controlled over entire process and has minimised unnecessary cost (Project Monitoring and Control,2018). This has helped in accomplishing it within set budget. Scope:The main agenda of this relocation was o generate more sales and attract new corporate customers. By shifting to central London ABC has become able to make connection with many other corporate clients that has helped the firm in boosting sales (Nusslein and et.al., 2016). From the delivery of the project, PM has learned many things. Individual has developed understanding about such kind of shifting projects. I have developed my team management skills and have improved my knowledge about team working. Earlier to that I was not having good knowledge of technologies but this project has raised my technical knowledge as well. CONCLUSION From the above study it can be concluded that in order to accomplish project successfully, PM is required to schedule task properly and have to control over each activity properly. 12
Effective scheduling and proper monitoring supports in meeting the quality standards and completing the task within set budget. Prince 2 methodology is helpful in making continuous improvement in project plan and meting the overall goal of organisation. 13
REFERENCES Books and Journals Floricel, S., Bonneau, C., Aubry, M. and Sergi, V., 2014. Extending project management research: Insights from social theories.International Journal of Project Management. 32(7). pp.1091-1107. GemĂŒnden, H. G., 2015. Success factors of global new product development programs, the definitionofprojectsuccess,knowledgesharing,andspecialissuesofproject management journalÂź.Project management journal.46(1). pp.2-11. Lappe, M. and Spang, K., 2014. Investments in project management are profitable: A case study- based analysis of the relationship between the costs and benefits of project management. International Journal of Project Management.32(4). pp.603-612. Nusslein, K., Parkash Dhankher, O., Xing, B., Smith-Doerr, L., Sacco, T., Maathuis, F., Pareek, A., Vara Prasad, P.V., Botha Stellenbosch, A.M., Foyer, C.H. and Kunert, K., 2016. Project management: Food security needs social-science input.Nature.535(7610).pp.37- 37. Pinto, J. K., 2014. Project management, governance, and the normalization of deviance. International Journal of Project Management.32(3). pp.376-387. Pitsis, T.S., Sankaran, S., Gudergan, S. and Clegg, S.R., 2014. Governing projects under complexity: theory and practice in project management.International Journal of Project Management.32(8). pp.1285-1290. RolstadĂ„s, A., Tommelein, I., Morten Schiefloe, P. and Ballard, G., 2014. Understanding project success through analysis of project management approach.International journal of managing projects in business.7(4). pp.638-660. Schwindt, C. and Zimmermann, J., 2015. Handbook on Project Management and Scheduling Vol. 1.Cham: Springer International Publishing. Tenera, A. M. B. R. and LuĂs Carneiro, P., 2014. A Lean Six Sigma (LSS) project management improvement model.SELECTED PAPERS FROM THE 27TH IPMA (INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION). pp.912-920. Turner, R. and Ledwith, A., 2018. Project Management in Small to MediumâSized Enterprises: Fitting the Practices to the Needs of the Firm to Deliver Benefit.Journal of Small Business Management.56(3). pp.475-493. 14