Project Management Concepts and Practices

This assignment delves into the fundamental principles of project management. It examines various project life cycle phases, risk management strategies, stakeholder engagement techniques, and the importance of effective team leadership. The text draws upon academic research and industry best practices to provide a comprehensive understanding of how projects are planned, executed, monitored, and controlled for optimal outcomes.

MANAGING
PROJECTS

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Characteristics of a project and its significance.......................................................................1
2. Scope management for managing a project............................................................................2
3. Gantt chart and identification of critical path using network diagram....................................2
4. Considerations for developing a project budget......................................................................4
5. Method to manage risk of the project.....................................................................................4
6. Quality method associated with the project............................................................................5
TASK 2............................................................................................................................................5
Introduction.................................................................................................................................5
Outline activities for installing new ERP system........................................................................5
Analysing skills and competencies required by project manager...............................................8
Project management process for the current project.................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Companies in the present era operates in an effective and well defined manner. Dividing
business operations into individual projects helps in attaining efficiency thus integrate the
business activities in an effective manner. Project management has become an integral part of the
management aspects as it help companies in attaining business objectives in a well defined
manner. The present study will focus on analysing different approaches adopted by the business
units to manage projects and attain predetermined objectives of the company. The case analysis
of Wroxham boat builders design has been evaluated in the study which will help in developing a
detailed and extensive idea regarding the subject.
1.Characteristics of a project and its significance
Andersen, Dysvik and Vaagaasar, (2009) defined project as a specific, finite activity that
produces an observable and measurable result under certain preset requirements. It helps in
attaining the business or project objectives in a definite manner. The principles of a project may
be defined as: Total quality management: This aspect focuses on managing quality aspects for every
activity of the project in order to minimize the chances of error and enhance usability of
the project in an effective manner (Chiu-Chi and et.al, 2013). The quality enhances the
chance of success of the project. It also helps in managing cost and time of the project by
minimizing the chances of errors at stage of operation itself. Risk management: Every project has certain risk associated with aspects such as time,
cost material, human resource, systematic, unsystematic risks etc. A successful project
demands effective management of risk to minimize the chance of failure. Inventory management: Every project has to deal with the limitation of availability of
resources in the market. Inventory management focuses on managing raw material and
finished products in an effective manner to carry out smooth process of the project
(Darren, 2012). Optimum allocation of resources: Project has to operate with limited availability of
resources thus optimum utilization of limited resources is significant to attain effective
and well defined results for the business.
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 Scheduling: Project is a time bound business activity which demands effective
scheduling and planning for completing the overall action in a limited time frame. This
helps in effective management of operations and effective achievement of goals for the
business unit.
2. Scope management for managing a project
Project scope management focuses on determining project boundaries which helps in
defining different phases of the project to ascertain completion of the project in the prescribed
life span. Scope management involves the following aspects for a project:
Justifications Analysing organizational issue and possible measures to resolve the
issue as a specified project (Kerzner, 2013).
Scope description of the
project
Specifying project outcomes while defining the characteristics and
features of product or service
Acceptance criteria The essential situations to be attained before analysing project
deliverables
Project exclusions Specifically analysing the aspects which the project will not cover
Deliverables Project deliverable which will be attained after completion.
Assumptions Standards undertaken for addressing uncertainty of information in
order to plan the activities efficiently (Burke, 2013).
Constraints Unavoidable boundaries which may reduce the efficiency of project to
achieve the deliverables
3. Gantt chart and identification of critical path using network diagram
Task Mode Task Name Duration Start Finish Predecessors
Auto
Scheduled A 4 days Mon 08-08-16 Thu 11-08-16
Auto
Scheduled B 6 days Mon 08-08-16 Mon 15-08-16
2

Auto
Scheduled C 6 days Fri 12-08-16 Fri 19-08-16 1
Auto
Scheduled D 2 days Tue 16-08-16 Wed 17-08-16 2
Auto
Scheduled E 5 days Tue 16-08-16 Mon 22-08-16 2
Auto
Scheduled F 8 days Mon 22-08-16 Wed 31-08-16 3
Critical path Critical path calculation Critical duration
A+C+F 1+3+6 18 Days
3

Critical path can be defined as a longest path and minimum duration of the project which
is required to complete this project in effective manner. Critical path for this project is 18 days.
So, organization will complete this project in 18 days.
4. Considerations for developing a project budget
Project budget defines the financial requirement of the overall activities of the project. In
order to develop an effective budget for the project manager need to carefully analyse and design
the budgeting process for the business unit. The very initial stage of budgeting is to specify the
activities undertaken for the project. This will help in analysing scope of the budget (Schwalbe,
2015). On the basis of mentioned activities project planning and resource requirement will be
forecasted. The next stage will be to analyse the present availability of finance. All the
mentioned preliminary measures will help in evaluating the current and future need of finance to
successfully complete the project. The next stage of the budgeting will be to analyse the sources
of finance, forecast the future market trends to evaluate the cost aspects and finally to execute the
budget as per the plan.
5. Method to manage risk of the project
Illustration 1: Risk register sample
(Source: Stibel, 2011)
4

Risk management is one of the crucial and most significant aspect of managing
organisational risk and developing effective and well defined results for the business. Different
measures of risk management can be effectively adopted in the project for attaining effective and
well defined results for the business unit (Pemsel and Wiewiora, 2013). Managing a risk register
is one of the significant and effective risk management strategy which helps the business unit or
project in effectively analysing the possible risks for the projects and develop well defined
measures to mitigate the mentioned risks as well. This strategy adopts a quantitative measure to
calculate the risk and develop effective measures to mitigate the same.
6. Quality method associated with the project
Quality audit is a significant and most crucial aspect of project management. Managing
qualitative measures for the project management plays a significant role within the market. The
most effective means of quality management aspect for the project will be total quality
management method. TQM is an effective method to evaluate, monitor and control the project
activities and attain effective and well defined results for the project. The stated measure focuses
on evaluating every activity of the project to manage and maintain the quality standards. The
actions are immediately undertaken if the outcomes at every stage is not as per the standards.
This measures helps in controlling the chances of error for the projects thus cost and efficiency
of the project is enhanced in the process.
TASK 2
Introduction
The case scenario mentions that Wroxham boat builders is a well established firm
operating effectively within the economy. The stability in the market was high and the
organisation was able to maintain a balance between the demand and supply aspects for the
business. The company was operating in the closed market in the past however liberating trade
barriers has posed significant challenge for the business unit. The case analysis reveals that open
trade policies for the business unit has created a significant impact on the organizational
operations of the company (Beringer, Jonas and Kock, 2013). The company is focusing on
managing the demand and supply aspects within the market. The company is presently focusing
on adopting ERP system in order to develop a global position in the economy. The budget of the
business is 750,000 pounds which will be effective for the business in enhancing the new system
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of management. The study will focus on analysing different stages of project planning such as
initiation, planning, execution, monitoring and control and closing, etc. The sated stages will
help in developing an effective and well defined approaches of project management.
Outline activities for installing new ERP system
Task Name Duration Start Finish Predec
essors
Resour
ce
Names
Cost
ERP project 8 wks Mon 08-
08-16
Fri 30-09-
16
£75,00
0.00
Evaluating internal business operations 1 wk Mon 08-
08-16
Fri 12-08-
16
Project
assista
nt
£1,600
.00
Conducting market research 1 wk Mon 08-
08-16
Fri 12-08-
16
Project
manag
er
£2,800
.00
Undertaking competitive analysis 1 wk Mon 15-
08-16
Fri 19-08-
16 3
Project
assista
nt
£1,600
.00
Analysing ERP system 1 wk Mon 22-
08-16
Fri 26-08-
16 2,4
Project
manag
er,Tec
hnical
assista
nt
£4,800
.00
Analysing resource requirements 1 wk Mon 22-
08-16
Fri 26-08-
16 4
Finana
ce
head
£2,000
.00
Budget analysis 1 wk Mon 29-
08-16
Fri 02-09-
16 6
Finana
ce
head
£2,000
.00
Software installation 1 wk Mon 05- Fri 09-09- 5,7 Project £3,600
6

09-16 16
assista
nt,Tec
hnical
assista
nt
.00
Developing training 1 wk Mon 12-
09-16
Fri 16-09-
16 8
Project
assista
nt
£1,600
.00
implementing the system 1 wk Mon 19-
09-16
Fri 23-09-
16 9
Project
assista
nt,Tec
hnical
assista
nt ,Ne
w ERP
system
[1]
£52,20
0.00
Testing system in the business process 0.5 wks Mon 26-
09-16
Wed 28-
09-16 10
Project
manag
er
£1,400
.00
project closure 0.5 wks Wed 28-
09-16
Fri 30-09-
16 11
Project
manag
er
£1,400
.00
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The above analysis develops a clear and well defined analysis of the project issues and
management aspects that the mentioned project will undertake in order to attain effective and
well defined results for the business unit. It will help the company in creating a significant
impact on the current business operations. Wroxham boat builders will implement the mentioned
activities in order to effectively manage the business operations and attain high and effective
growth aspects for the company. The detailed analysis of activities, resources and cost has been
undertaken in the analysis. The study evaluated a well defined approach about the project
schedule and time associated with the activities.
Analysing skills and competencies required by project manager
Project management aspect is crucial for attaining the needs and demands of the
company. Project manager plays a significant role in attaining project activities and functions for
the business unit. The given case mentions a well defined analysis of the organisational issues
faced by Wroxham boat builders. The organisation has developed a significant and well defined
position within the economy. Project manager of the organisation is presently focusing on
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developing a competitive position for the business unit by developing an advanced system of
project analysis and demand and supply management. Project manager of Wroxham boat
builders needs to create unique set of skills and competencies to manage the project and attain
effective and well defined results for the business unit. The skills and competencies required by
project manager are discussed henceforth. Business literacy: it is analysed as the ability to understand the line of business, to take
the business vision and translate it into the project vision (Teller, Kock and Gemünden,
2014). A project manager needs to effectively manage and deal with the business
activities as per the industry requirements and norms. Business literacy helps the project
manager in attaining high level of competency and growth aspects for dealing with
project problems and resolving them in an effective manner. Wroxham boat builders is
focusing on implementing the new ERP system in the company. In order to effectively
manage the operational aspects of the project business literacy is significant for the
manager. Corporate procedures: Project manager is a person who focuses on developing and
implementing an entire new project or process for the business unit (Meng, 2012).
Developing ability to understand corporate policies helps the project manager in
developing tools and techniques to deal with the same. It helps the company in creating a
significant growth impact within the economy. Communication: Lack of effective and well defined communication may hinder the
effectiveness of the project and create an insignificant impact on business growth and
development. Effective communication helps the manager in developing a clear set of
rules and responsibilities for the associated parties and attain well defined results for the
process. Thus, the project manager for ERP system will need to develop effective and
well defined communication (Verbal, non verbal or written) to attain the business
objective efficiently. Financial efficiency: Every project has a definite constraint of time span and budget
limit. A project manager is thus expected to work effectively in limitation regarding
resources and finance requirements. Lack of financial efficiency may lead in exceeding
the project budget which in-turn may become a significant factor for project failure (Too
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and Weaver, 2014). Thus, this skill helps the project manager to link between operational
aspects and financial management of the project. Leadership: A project manager needs to lead the operations, motivate employees and
develop a positive zeal within them to attain the business objectives. It creates an
effective impact on project attainment for the stated process. For the current case
effective leadership will help in analysing the different aspects of the project to attain the
project objective in an effective manner. Negotiation: A project in an effective integration of different activities and processes
which helps in attaining well defined objectives of the company. Negotiation skills help
the project manager in attaining business objectives of the company and develop a
positive relation with different parties such as creditors, suppliers and technical support
as well. This skill is significant for attaining a win-win situation for the business. Problem solving: Every project has to deal with different problems and issues which may
create an ineffective impact on business growth and development (Darren, 2012). A
project manager of the business unit needs to have the problem solving skills in order to
resolve the business issue in a well defined manner. Strategic Thinking: A project manager need to adopt strategic thinking process for the
business growth as it creates an effective and well defined impact on overall success and
development of the project. This aspect of project management helps the company in
attaining the business objective in a strategic manner.
 Team building: Project management is a team approach for the company. Project
manager must adopt effective team building approach in order to attain a collaborative
approach for attaining business objective and evaluate effective business results for the
organisation. This will help the company in attaining the organisational results in an
effective manner.
Project management process for the current project
Project Management is the process of working in a peculiar manner with a team in order
to achieve specific objectives and success in a specific manner. The company has decided to
undertake the project in the five phases a project life cycle is comprised of.
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Project Life Cycle Management shall assist the company in narrowing down the focus of
the project and align the objectives in a proper manner and lastly, finishing the same within the
stipulated time and budget. The following phases shall be undertaken by the company: Initiation: This marks the beginning of the project by providing the overview of the
project and the appropriate strategies to be undertaken to achieve the desired goals. At
this stage the goals are determined and potential ways to realize the same are ascertained.
The determined goal of the company is to achieve a global position in the market and for
the same the approach of ERP system has been adopted. In order to implement the ERP
system efficiently the company shall give an overview of the approach to be implemented
followed by which specific strategies for effective implementation shall be ascertained
and elaborated upon (Walker, 2015). The company shall be required to appoint a Project
manger on the basis of his/her experience and skills pertaining to the project and the
approach of ERP system. Planning: This phase witnesses further development of the project solutions determined
by at the first stage. Various steps to meet the project objective are identified and
discussed, followed by a detailed planning to undertake the same. Specific tasks are
identified along with the appropriate resources and strategy to procure each of them is
ascertained. The planning as to how the project shall be undertaken, in which all steps
and who all shall be involved to undertake the same is declared at this stage (Teller,
Kock and Gemünden, 2014). The company shall assure the planning process succeeded
by documenting the whole plan with the set targets, available resources and the control
measures which shall be required during the execution process. The project manager shall
determine the specific tasks to be undertaken by specific individuals or teams and which
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Illustration 2: Phases of Project Management
Source: Methods 123 - Project Life cycle, 2015

shall further prepare an appropriate schedule of the work to be done along with an
estimate of costs that shall be incurred. Implementation or Execution: This phase marks the motion of the project and shifts the
workload from the office table to the practical field. It is important to establish a control
and monitoring system to for a smooth and efficient progress of the project. A well
functional communication system is also adopted as various minute information and
messages are required to be transferred among the project team. Individuals or teams are
undertaking the assigned tasks, under continuous monitoring and timely reporting in the
team meetings (Kerzner, 2013). All this information is gathered by the project manager to
determine the progress of the project and determine if any loopholes exist in the system.
The company shall undertake all the strategies and plans it has formulated for the
implementation of the ERP system. The company shall also prepare regular status reports
in terms of the cost incurred, schedule being followed, work completed and the quality of
the deliverables.
 Closing Phase: At this stage emphasis is on the release of the final product in a timely
fashion. The completion phase requires the termination of the contracts with the supplier,
communicating the final closure to all the stakeholders who shall have interest in the
ongoing of the project (Beringer, Jonas and Kock, 2013). At the last the manager or the
concerned person shall evaluate the whole process to determine various aspects related to
what went wrong and reason behind the same. This enables the organization to improve
on the mistakes and attain greater efficiency. The company on the complete
implementation of the ERP system shall analyse the whole process it has undertaken to
document the same for future reference and inform all the stakeholders of the company
about the successful implementation.
CONCLUSION
The overall analysis of the project develops a clear and well defined analysis about
different aspects of project management and measures business must undertake to enhance the
success of the project. The overall study developed an in-depth analysis of different aspects of
project management tools and strategies demanded to manage the same.
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REFERENCES
Books and journals
Andersen, S. E., Dysvik, A. and Vaagaasar, L. A., 2009. Organizational rationality and project
management. International Journal of Managing Projects in Business. 2(4). pp.479 –
498.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project Management.
31(6). pp.830-846.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.
Chiu-Chi, W. and et.al, 2013. Assignment of project members considering capability and
personality balance. Kybernetes. 42(7).Pp.1016 - 1028.
Darren, D., 2012. The nature of project management: A reflection on The Anatomy of Major
Projects by Morris and Hough. International Journal of Managing Projects in Business.
5(4). Pp. 643 – 660.
Kerzner, H. R., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Meng, X., 2012. The effect of relationship management on project performance in
construction. International journal of project management. 30(2). pp. 188-198.
Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-
based organisations. International Journal of Project Management. 31(1). pp. 31-42.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Teller, J., Kock, A. and Gemünden, H.G., 2014. Risk management in project portfolios is more
than managing project risks: a contingency perspective on risk management. Project
Management Journal. 45(4). pp.67-80.
Too, E. G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management. 32(8).
pp. 1382-1394.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Online
Managing a project team, 2015. [Online]. Available through: <
http://www.businessperform.com/project-management/project_team_management.html>.
[Accessed on 6th August 2016].
Stibel, J., 2011. 5 Small Business Tips for an Uncertain Economic Climate. [Online]. Available
through: < http://mashable.com/2011/09/08/economic-instability-small-business/>.
[Accessed on 6th August 2016].
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