Project Management Principles: Energy Project Management in Australia

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AI Summary
This project management assignment analyzes energy storage, solar panel manufacturing, and electric vehicles in Australia, focusing on project management principles. It examines various organizations involved in these areas, including electric car companies, residential solar panel providers, and lithium-ion battery storage firms. The report covers project overview, project management information, budget estimations, staffing plans, and risk management. It includes a detailed project task schedule using a Gantt chart and explores project constraints, stakeholder analysis, and financial models like NPV, ROI, and payback periods. The assignment aims to demonstrate an understanding of project management methodologies and their application in the context of renewable energy projects, with a focus on providing energy solutions to Australia.
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Running head: PROJECT MANAGEMENT PRINCIPLES
Project Management Principles
Name of the student:
Name of the university:
Author Note
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1PROJECT MANAGEMENT PRINCIPLES
Executive summary
In this research focuses on energy storage, solar panel manufacturing and energy vehicles at
Australia are analyzed. Various organizations are analyzed here that could be focusing on electric
cars, residential photovoltaic panels, lithium-ion battery energy storage. Here project management
principles are considered. The project overview, project management information, estimation of
budgets and staffing plans are demonstrated in the study with a project task schedule.
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2PROJECT MANAGEMENT PRINCIPLES
Table of Contents
Introduction:..........................................................................................................................................4
1. Project overview:...............................................................................................................................4
1.1. Project summary:........................................................................................................................4
1.2. Purpose of this project:...............................................................................................................5
1.3. Project constraints:......................................................................................................................5
2. Project Management Information:.....................................................................................................6
2.1. Client information:......................................................................................................................6
2.2. Project organization:...................................................................................................................7
2.2.1. Organizational structure:.....................................................................................................7
2.3. Project stakeholders:...................................................................................................................7
3. Project Staffing Plan:.......................................................................................................................10
3.1. Human resource allocation:......................................................................................................10
3.2. Technical Resource allocation:.................................................................................................11
3.3. Resource Cost Estimate:...........................................................................................................11
4. Risk management plan:....................................................................................................................12
4.1. Risk management:....................................................................................................................12
4.1.1 Risk assessment matrix:......................................................................................................13
5. Project budget estimations:..............................................................................................................14
5.1. Project cost estimation:.............................................................................................................14
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3PROJECT MANAGEMENT PRINCIPLES
5.1.1. Cost model solution:..........................................................................................................14
5.1.2. Cost baseline estimation:...................................................................................................14
5.2. Project investment return solutions:.........................................................................................15
5.2.1 NPV, ROI and PAY Back Model:......................................................................................15
5.2.2. Net present value:..................................................................................................................15
5.2.3. Return On Investment (ROI):............................................................................................15
5.2.4 Payback Period:..................................................................................................................15
5.4.5. Communication quality:....................................................................................................16
6.0. Project task schedule:...................................................................................................................16
6.1. Detailed schedule:.....................................................................................................................16
6.1.1. Project Development Life-cycle:.......................................................................................16
6.1.2. Work Breakdown Structure:..............................................................................................18
6.1.3. Gantt Chart:.......................................................................................................................18
7. Conclusion:......................................................................................................................................19
8. Recommendations:..........................................................................................................................19
9. References:......................................................................................................................................20
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Introduction:
Project management is a composite task having multiple dimensions. The activity of
management has been very complicated. It has been depending on the class and type of the project.
The principles of project management has included disciplines of planning, managing, controlling,
leading, organizing for achieving specific aims.
The current age has witnessed the rise in demand of safer renewable energy sources. In order
to ensure that the world must not find itself in energy crisis, the effective way is to create energy
resources that must be renewable. Australia has comprised of abundance of energy resources. It has
been accounting about 2.5% of the total proven resources of the world. The nation has been showing
high diversity has per as non-renewable and renewable energy sources are considered.
The following report is created from the point of view of project managers. In this study
project management principle and the basic approved project charter is analyzed. It intends to
research a project to provide energy to Australia. The report demonstrates the project overview,
project management information, project staffing plan and the budget estimation. Lastly the project
task schedule is illustrated through a Gantt chart.
1. Project overview:
1.1. Project summary:
The manager of Department of Energy Resource at Australia has been working as the small
project team reviewing and analyzing various energy initiative that are implemented by various other
state governments at the nation. The managers have been following projects at Australia and are
approved by preliminary and unfinished project charter. Further the project manager has been
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5PROJECT MANAGEMENT PRINCIPLES
authorized for refining charter with extra information and create management plan. This has been
reflecting the kind of project management methodology, documentation and information. This has
been developed jointly by SA government to undertake the project.
1.2. Purpose of this project:
The purpose of the project for the project manager of Australia lies in the following facts.
To develop management plan that must reflect kind of project management methodology
To develop documentation and information that must be jointly developed and Australia to
plan the projects.
To develop and design commercially viable plan of project management reflecting PMBOK
or Project Management Body of Knowledge and current academic research that supports the
design.
To demonstrate the project team leadership and advanced understanding and application of
PMBOK knowledge and current developments
1.3. Project constraints:
In the current case, the constraints are categorized into two groups. The first one is the
constraint having lesser effect and the other one with higher effect. The situation has been containing
various relative lower effect constraints. However, only few or single has been effective. Here the
constraints with higher effect have been the root causes or core problems. The time is the prime
constraint (Kerzner and Kerzner 2017). It has been maintaining focus on people and management to
act and identify higher effect constraints. This is done by using the scare time in effective manner.
Further there have been two primary kinds of constraints. The first one is non-physical and the
second one is physical. Physical constraint has been like the physical capability of machine and it
has been rigid. In the present state it has the limit to its ability or throughput like demand level,
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6PROJECT MANAGEMENT PRINCIPLES
people, machines and materials. On the other hand, for the non-physical constraint has been the
product demand, corporate process, individual paradigm to look into the world (Schwalbe 2015).
The constraints have been the function of two variables. They are the demand and capacity. It has
been providing the reliable indicator of progress towards achieving the aim. They are categorized
into two kinds. They are external constraints and internal constraints.
The internal controls have been present within the system and have been more within control.
It has indicated the system has been unable to keep the demand up. The actions are needed to be
taken for eliminating those constraints. Further, the external constraints are to be seen outside the
system (Fleming and Koppelman 2016). They are less within control. It has indicated that system
has been slacking the ability to control every external constraint and various actions undertaken have
been merely minimizing the impact of undesirable outcomes instead of breaking those constraints.
2. Project Management Information:
2.1. Client information:
The client has been translating the necessities by the help of chartering to the project.
Further, they have been defining scope of the project to the project team and project managers.
Moreover, the client is also involved in the role of supervision. It is often accomplished with the help
of reviews of projects and various reports from project teams (Walker 2015). Further, they have been
depending on the complexity level of the project. Here the reviews have been varying in significant
way. Over the less complicated projects, those reviews have been conducted with a one-hour
meeting. This has included a one-page summary document from the client’s side that has been
serving as the report for the project progress. Over more complicated projects, full-day meetings
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7PROJECT MANAGEMENT PRINCIPLES
with the clients have been needed for the progress of the project to be understood fully (Verzuh
2015).
2.2. Project organization:
2.2.1. Organizational structure:
The organizational structure businesses dealing with energy resources at Australia, has been
creating abilities for project managers enabling strong managerial control of business. This has been
occurring despite the growth of international operations. The growth has increased challenges and
complexities. Here, for instance the global expansion has been needed wider set of considerations for
getting success to implement generic strategy (Turner 2016). This has been for competitive strategy
and various intensive strategies as per as the growth of the project is concerned. The structural
characteristics of the corporation have been helpful to maximize various top-level information of
manager. This has been related to challenges, empowering to react as per the situations. In this the
corporate structure has been supporting the vision and mission statements. This has been
emphasizing the global; leadership within automotive and markers of energy solutions.
2.3. Project stakeholders:
The business dealing with energy resources has comprised of corporate social liability
strategy that has been depending on the kind of business. For instance, the electric automobiles of
Australia have been largely seen as the answer to adverse effects of cars which has been using
internal combustion engines. The different stakeholders as per the prioritizations are illustrated
below.
Communities The organization has been an automotive business directly satisfying concerns of
communities as the significant stakeholders. They have been determining the brand
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8PROJECT MANAGEMENT PRINCIPLES
image. Here, one of the primary interests of the stakeholder group has been to assure
that the nature of the environment has been protected and conserved. The electric
automotive product has been addressing those interests. Here, for instance, the
communities are been satisfied with the fact the fact that the products have been
environment friendly due to zero emissions. Moreover, the organization has been
satisfying communities as per as interest of stakeholder’s groups has been concerned
(Mir and Pinnington 2014). It has been taking advantages from the various advanced
technologies. The companies have been allowing other organizations and individuals
to utilize the patents. The corporate social responsibility strategy has been directly
taking advantaged of various communities that are interested in using or developing
various technologies. This has been emphasizing the organizations vision and mission
statements.
Customers They have been affecting the revenue and have been interested in reasonable pricing and
product quality. Provided with that significant effect, the organization has been providing
high priority to those stakeholders within their programs of social and corporate
responsibilities. Provided with that notable effect, organizations has been providing high
priority to those stakeholders within the programs of corporate social responsibilities (Mir
and Pinnington 2014). Here, for instance, apart from continuing to by the batteries, the
company has planned to manufacture their individual cells to make the electric automobiles
much flexible. Moreover, the businesses have been expanding the network to charge the
stations. The approach has been improving the convenience and customer experiences.
Moreover, the efforts of corporate social responsibilities have been assuring that has been
satisfying customer interest as a significant stakeholder team (Martinelli and Milosevic
2016).
Employees To design the corporate social responsibility strategy, the organization has believed that
their staffs have been the critical success factors with their automotive business. Since, the
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9PROJECT MANAGEMENT PRINCIPLES
stakeholders, T employees have been influencing the performance and productivity of. The
interests have included large compensations and notable career scopes. The company has
been efficiently satisfying those interests with the help of strategy of competitive
compensation (Nicholas and Steyn 2017). This has also included HR programs that are
designed for enhancing development of leadership and skills. Apart from this, the corporate
social responsibilities have been offering various learning experience with the help of
collaborative programs with various partner firms. Thus they have been satisfying
necessities of employees and theory stakeholders.
Shareholders
and investors
The early years have been depending on various series of funding from different investors.
The stakeholders have been vital to influence capitalization. The shareholders and investors
have been possessing interests in profitability and business growth. The corporate social
liability of the agency has been addressing those interests with the help of long-term
strategies aiming to transform automotive markets (Hornstein 2015). Here, the decision of
the company has been allowing other individuals and firms to utilize the patents of the
technology expected to raise the market demand of electric vehicles. Thus they have been
developing the opportunities of growth for automobile sales. Here, the environmental
friendliness and sustainability has been the ideals. They have been also in line with various
socio-cultural trends. In this way they have been supporting the growth of business
(Svejvig and Andersen 2015). Through considering profitability of current years, the
responsibility strategy has been satisfying the stakeholder and investor’s interest satisfying
the stakeholders of their business.
Governments The Company has been experiencing the impact of governmental actions. Here the
government of the stakeholder presenting opportunities, limits and perquisites to business.
Here the interest groups of the stakeholders have been including various legal compliances
and business contributions towards the financial growth (Serra and Kunc 2015). Having
plans for strategic global expansions and outstanding record of sustainability, the corporate
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10PROJECT MANAGEMENT PRINCIPLES
social liability of the strategy has been satisfying those interests.
3. Project Staffing Plan:
3.1. Human resource allocation:
There are two distinctive models to identify the human resource allocation in current
business part from various models that are to be formulated and theorized. On the basis of
explanation and definitions of every model, it is conducted that the soft model has been more
advisable that must be practiced by various organizations that have needed energy resources. This
must be under the service sector. On the other hand, the manufacturing sector can be using
“Michigan Model” of human resource allocation to raise the production (Sears et al. 2015). To plan
for human resources, the research should consider allocation of people to various jobs for longer
time periods. The allocations have been needing knowledge of various foreseen reductions and
expansions within operations and technological changes. This has been impacting the businesses.
Here, in this ground-stone of investigation, various planning are to done to shift staffs within the
organizations. They must lying off and has been cutting back various staffs and retraining current
employees (Joslin and Müller 2015). Various factors that are needed to be considered are the present
level of employee knowledge, abilities and skills within organizations and estimated vacancies. The
later one has been originating from sick leaves, transfers, promotions, discharge and retirements.
Thus, in summary it can be said that HR plan has been providing the path for future. They
must determine where the employees have been likely to be obtained while the employees are
needed and what development and training the employees should have. Hence, various HR activities
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11PROJECT MANAGEMENT PRINCIPLES
has been aligned with general strategy of business and overall HR strategy for supporting business
aims.
3.2. Technical Resource allocation:
The businesses have been searching for detailed-oriented projects to drive developments
around the entire company. The task position has been involving data analysis and managing
projects for achieving various quantifiable improvements. Firstly, the technical resources must
include cost analysis. Here data and leading projects is involved to decrease the costs through
characterizing scrap wastes, reducing overhead expenses and warranting opportunities (Newton,
Greenberg and See 2017). Here, the projects must be including engagement of various key cross-
functional stakeholders for eliminating wastes and then driving developments. Possessing the
primary economic background would be helpful to educate team members on quantifying results and
costs. The second one is quality and productivity. Here working with cross-functional teams has
been assuring process improvement and equipments projects that are on track to eradicate tracks
(Too and Weaver 2014). Further, they must assure that dependencies get highlighted and the risks
and roadblocks might stand on the way. Moreover, understanding the process has been starting to
completion for strategizing the place o allocate resources properly and the things needed by action
owners.
3.3. Resource Cost Estimate:
The resource cost estimation the resources has been done through many ways. The first one
is estimate planning. They need to construct estimate planning that must include work breakdown to
various estimated packages, delegating the responsibilities of delegating at both external and internal
level. Further, they must also track progress against those plans. The next one is material take offs.
They must perform various material takeoffs from various 3D models and 2D drawings for
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12PROJECT MANAGEMENT PRINCIPLES
validating the contractors and designing the proposed quantities (de Carvalho, Patah and de Souza
Bido 2015). For cost estimation high level of ROM or “Rough-order-of-magnitude” must be
developed. This must be to definitive and bottom-up estimation. An estimate meetings and working
closely must be conducted with primary stakeholders including construction management,
procurement, scheduling and engineering for aligning the estimations with execution plan and
develop the complete accuracy of that estimate. The entire scope coverage of the estimates must be
assured, the potential for the expected growth must be identified and allowances must be assured that
must be properly used (Marcelino-Sádaba et al. 2014).
The estimations must be converted to primary unit rates and the industry benchmarks must be
validated with internal historical rates. For risk analysis, the key stakeholders must be worked with
and then the contingency development process must be performed. The quality review must be done
over works submitted and prepared by others assuring accuracy and completeness. As per as process
development is concerned the continued development must be supported for the estimated processes
and systems. Estimating benchmarks, metrics and systems must be developed for allowing cost
standardization utilized by different stakeholders. This must be done for budgetary and planning
purposes for the early design stages (Chih and Zwikael 2015). For performance tracking, the
estimated performance must be summarized and tracked with various other functions of project
controls and finance groups. Ad-hoc cost studies must be done that should enable fast decision-
making on the basis of return rate and payback. Lastly, they must also include other works required
for supporting the project delivery successfully.
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4. Risk management plan:
4.1. Risk management:
The usage of insurance of political risks and various other kinds of guarantee has been
restricted for renewable. The causes have included high costs. Complicated application procedures,
preference of huge projects, restricted coverage and lack of awareness of the tools available, longer
times of processing and stringent criteria for eligibility (Portny 2017). The project developers should
secure guarantee of partial risks. However, only the lenders have been covered and only as the
offtaker are state-owned. The organizations have been varying in currency usage various hedging
tools. Hence, agencies must keep in mind that it has not always meant purchasing of instruments of
some type. Here, for instance the PPA has been helping the management of risks of currency
fluctuations, rise of interest rates and curtailments. The geographically diversified portfolio of
projects has been decreased to reduce the political risks of the developers (Conforto et al. 2014). On
the other hand, partnerships with various local strategies and companies have been rising with the
local buying. It has been alleviating risks of various disputes over ownership of land. At many times
risk mitigations has been mostly out of hands of developers.
4.1.1 Risk assessment matrix:
Development and financing:
Drilling and exploration
Permitting
Public acceptance
Land
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14PROJECT MANAGEMENT PRINCIPLES
Political:
Economic and financial
Contract liability
Equipment and technology
Grid access
Overruns
Operations fuels
5. Project budget estimations:
5.1. Project cost estimation:
5.1.1. Cost model solution:
The cost modeling demands must be tapped to proper experts directly, engaging them in
collaborative process. They must be provided with resources and tools to create various libraries of
different reusable intelligences (Crawford 2014).
5.1.2. Cost baseline estimation:
As it comes to computing the entire cost of project has been the estimations that are to be
done before. As the project schedule gets approved and ready, the bottom-up process must be
utilized for every tasks of the project to the detailed cost estimation. Thus, the complete cost of every
important phase and the complete project is calculated (Badewi 2016). The costs determined initially
of every planned task have been turning into the estimated budget. To perform the cost analysis as
per PMBOK, the baseline of cost has been regarded as the time-phases budget. This is utilized as the
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15PROJECT MANAGEMENT PRINCIPLES
basis against which the controlling, monitoring and measuring of cost performance of the entire
project takes place.
5.1.3. Setting the budget for the project:
Costs Resources needed Justification Amoun
t
Direct costs Acquiring
equipments
and land,
and
stakeholder
consultatio
n and
assignment
of duties.
facilities,
equipment,
land,
government,
suppliers,
society
For the current project
social and environmental
effects are present. Hence
the consultation would not
be just a single
conversation. It would be
a set of opportunities for
creating the understanding
about the project. This
should be among those it
would be affecting or
attracting to learn how the
external parties have been
viewing the project. This
also includes mitigation
measures, opportunities,
impacts and risks.
15
million
AUD
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Installation
of Lithium
oil battery.
Crude oil,
electricity
This installation of a grid-
scale storage system
would be sustainable in
nature. It would be also
helpful to avoid various
power shortages and
decrease frequency of
intermittencies. They
should also helpful to
control peak load for
improving reliability of
electrical infrastructure of
Australia.
20
million
AUD
Supply and
installation
of power
system to
the
households.
Electricity,
water power,
coal
A home energy audit must
be conducted here that is
helpful to understand
where the loosing of
energy has been taking
place. It would also
determine the steps to
improve the efficiency of
home. Various electronics
and appliances are to be
100
million
AUD
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17PROJECT MANAGEMENT PRINCIPLES
used effectively
considering the high
effective products.
Commissionin
g of the
project
10
million
AUD
Administratio
n costs
5
million
AUD
Overall cost of
project
150
million
AUD
5.2. Project investment return solutions:
5.2.1 NPV, ROI and PAY Back Model:
The regular variance assessment has been helping project managers to find the status of
project budget and then adjust various aspects. This includes materials, resources and project plans.
5.2.2. Net present value:
It is the financial tool using project costs and returns in due time. This is to determine
whether the project has been making positive return (Eskerod, Huemann and Savage 2015).
5.2.3. Return On Investment (ROI):
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18PROJECT MANAGEMENT PRINCIPLES
It is the indicator utilized for measuring financial loss and gain of projects related to costs. It
is typically used for finding out whether the project has been yielding positive payback and having
value for business.
5.2.4 Payback Period:
It is the duration of time needed to recover cost of investment. It ignores time value of
money, discounted flow of cash and so on (Caniëls and Bakens 2015).
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5.4.5. Communication quality:
The quality of the current project has been depending on the written strategy to get proper
data about stakeholders at correct time. Every stakeholder has been possessing distinct necessities
for information as they have been participating in the project are various methods. As per as
effective communication quality is concerned there has been two methods to perform that (Papke-
Shields and Boyer-Wright 2017). The first one is coordination and they need to deliver data such
that team members have been able to perform tasks together. The next one is responsibility, where
every team member has needed to know what is needed to do in their project.
6.0. Project task schedule:
6.1. Detailed schedule:
6.1.1. Project Development Life-cycle:
Task Name Duration Start Finish Predecessors
Building the Business Case 22 days Thu 4/26/18 Fri
5/25/18
Identification of
comprehensive list of
benefits
15 days Thu 4/26/18 Wed
5/16/18
Identification of risks and
strategies to mitigate them
7 days Thu 5/17/18 Fri
5/25/18
2
Implementing the project 8 days Mon 5/28/18 Wed 3
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20PROJECT MANAGEMENT PRINCIPLES
6/6/18
Developing detailed project
implementation
58 days Tue 6/12/18 Thu
8/30/18
4
Choosing appropriate
equipment and suppliers
6 days Thu 6/7/18 Thu
6/14/18
Securing finance 8 days Fri 6/15/18 Tue
6/26/18
6
Undertaking installation
works on Project
Implementation Plan
10 days Wed 6/27/18 Tue
7/10/18
7
Monitoring the energy
saving plan and verification
10 days Wed 7/11/18 Tue
7/24/18
8
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21PROJECT MANAGEMENT PRINCIPLES
6.1.2. Work Breakdown Structure:
Figure 1: “Work Break-Down Structure for current project”
(Source: Created by Author)
6.1.3. Gantt Chart:
Figure 2: “Gantt Chart for the project”
(Source: Created by Author)
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7. Conclusion:
The above project is helpful for project manager at Australia to undertake progress form
basic project charter and different feedbacks received. The assessment is helpful to identify the
potential energy resources and understand the factors such future of energy at Australia. This is
helpful to extend the current project of to revised charter and primary management plan. Thus has
progress can be made and a preliminary project charter can be presented on the basis of energy
resources at Australia. This is useful to fix various electricity problems in Australia.
8. Recommendations:
Project manager of must consider the following suggestions.
Electrification of huge scale economy such as heating and transport at Australia.
Decentralization spurred by sharp decline in cost of distributed energy resources such as
distributed storages, demanding energy efficiency and flexibility.
Digitalization of grid with smart metering, sensors, automation and other network
technologies with the rise of Intent of Things and surging power consuming of connected
devices at the nation.
Improving material properties and capabilities of design such that the structure withstands
larger stress and similar level for much longer time.
Lowering operating stress levels through altering configuration and structural designs.
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23PROJECT MANAGEMENT PRINCIPLES
9. References:
Badewi, A., 2016. The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance framework.
International Journal of Project Management, 34(4), pp.761-778.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Caniëls, M.C. and Bakens, R.J., 2015. Project Management Information Systems in a Multi-Project
Environment. In Handbook on Project Management and Scheduling Vol. 2 (pp. 1355-1383).
Springer, Cham.
Chih, Y.Y. and Zwikael, O., 2015. Project benefit management: A conceptual framework of target
benefit formulation. International Journal of Project Management, 33(2), pp.352-362.
Conforto, E.C., Salum, F., Amaral, D.C., da Silva, S.L. and de Almeida, L.F.M., 2014. Can agile
project management be adopted by industries other than software development?. Project
Management Journal, 45(3), pp.21-34.
Crawford, J.K., 2014. Project management maturity model. CRC Press.
de Carvalho, M.M., Patah, L.A. and de Souza Bido, D., 2015. Project management and its effects on
project success: Cross-country and cross-industry comparisons. International Journal of Project
Management, 33(7), pp.1509-1522.
Eskerod, P., Huemann, M. and Savage, G., 2015. Project stakeholder management—past and
present. Project Management Journal, 46(6), pp.6-14.
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24PROJECT MANAGEMENT PRINCIPLES
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project
Management Institute.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and
project success in different project governance contexts. International Journal of Project
Management, 33(6), pp.1377-1392.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014. Project risk
management methodology for small firms. International journal of project management, 32(2),
pp.327-340.
Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for
the practicing project manager. John Wiley & Sons.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project
management performance and project success. International journal of project management, 32(2),
pp.202-217.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project
management performance and project success. International journal of project management, 32(2),
pp.202-217.
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