MGT5IPM: Governance Planning & Execution of East Timor Solar Plant

This report provides a comprehensive overview of project governance for the East Timor Solar Plant project. It recommends Earned Value Analysis (EVA) for cost and schedule tracking, justifying its selection by highlighting its ability to integrate time, cost, and scope considerations. The report discusses the advantages and risks of EVA compared to other methods like forecasting and performance reviews. It outlines the format and structure of project reports for various stakeholders, including the Project Manager, Governance Board, CEO, and Board, emphasizing the importance of accurate data and secure information sharing via SharePoint. The document also details the frequency and attendees of Project Governance Board Meetings and includes a discussion of risk management, referencing relevant literature and methodologies. Desklib provides access to similar project management resources and solved assignments for students.

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East Timor Solar Plant
Project Governance
9/20/2018

Project Governance
Table of Contents
Cost & Schedule Tracking.....................................................................................................................2
Recommended Methodology.............................................................................................................2
Justification for Selection..................................................................................................................2
Advantages & Risks of Selected & Rejected Methods......................................................................2
Format & Structure of the Project Reports............................................................................................3
Project Governance Board Meetings.....................................................................................................3
Format & Structure of the CEO & Board Project Reports.....................................................................4
References.............................................................................................................................................6
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Project Governance
Executive Summary
Project Governance is one of the essential activities that must be carried out in a project. The
Project Governance details for East Timor Solar Plant have been included in the report.
Monitoring and control of the project costs is extremely necessary and the report includes the
recommendation on the methodology that shall be used for the task. The methodology that
has been recommended for tracking the project costs and schedule is Earned Value Analysis
(EVA). The advantages and drawbacks of the method along with other methods have been
included in the report. Format and structure of the project report, CEO & Board reports are
also included in the report along with the details on the meetings with the Governance Board.
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Project Governance
Cost & Schedule Tracking
Recommended Methodology
The methodology that has been recommended for tracking the project costs and schedule is
Earned Value Analysis (EVA). It is a mathematical approach that is used to track the project
performance by comparing the actual values with the estimated ones. The estimated schedule
for the project is a total of 47 days. There is a duration allotted to each of the project activities
and phases. The total budget estimated for the project is $200,000.
In the Earned Value Analysis and Management, the planned value (PV) of the project will be
the estimated costs for the project. The Actual Cost (AC) of the project will be determined
along with the determination of Earned Value (EV) (Waris, Khamidi and Idrus, 2012). EV is
the value of the work that is actually performed. Cost Variance (CV) will be calculated from
the values of EV and AC as EV-AC. The Schedule Variance will be calculated as EV-PV.
The negative values of cost and schedule variance will indicate that the project is over budget
and behind schedule respectively. This will allow the filling of the gaps, if any and will make
sure that the costs and schedule is kept on track.
Justification for Selection
The method has been selected as it will allow the project to be kept on track by including the
values of time, cost, and scope. The gaps will be identified at regular intervals which will
allow the improvements to be made in the project. The Project Management will be required
to track the values of CV and SV at regular intervals which will ensure continuous
improvement in the project and will result in cost and schedule control (Wang, He and Zhao,
2014).
Advantages & Risks of Selected & Rejected Methods
Earned Value Analysis (EVA) has various advantages as it allows the project to be kept on
track by including the values of time, cost, and scope. The gaps are identified at regular
intervals which allow the improvements to be made in the project. The Project Management
is required to track the values of CV and SV at regular intervals which ensures continuous
improvement in the project and will result in cost and schedule control (Bovteev and
Petrochenko, 2015). Quality is not a parameter that is taken in to consideration while
performing the EVA which is one of the risks associated with this method.
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Project Governance
There are other methods that may also be used to track the costs and schedule, such as
Forecasting and Performance Reviews. The two methods do not provide a wholesome view
of the project and may be based on a specific viewpoint or project area. The accuracy of the
results may not be high. They may be successful for non-complex projects with small project
teams.
Format & Structure of the Project Reports
The Project Manager, project team, and the Governance Board shall be provided with the
project reports as status reports, project risks reports, project plan, cost & schedule
monitoring reports, change reports, and closure reports. These reports shall have a defined
structure and format.
The data sets that are used and presented in these reports shall be the actual values associated
with the project. This will provide these entities to have a clear understanding of the project
progress (Aliza, Stephen and Bambang, 2011).
The reports shall have the mandatory sections as
 Title of the Report
 Date & Time
 Prepared By
 Purpose of the Report
 Objectives of the Report
 Contents of the Report – Latest figures and values
 Actions Proposed
These reports shall be uploaded on the SharePoint location and the contents shall be protected
so that the information included in the report does not get exposed to the unauthorized
entities.
Project Governance Board Meetings
The Project Governance Board Meetings shall be carried out at a weekly basis. The Project
Manager must facilitate these meetings and shall send out an invitation in advance. The
attendees of the Project Governance Board Meetings shall be CEO, Project Sponsor, Senior
Auditor, Senior Project Manager, Project Manager, Program Director, and Business Analyst.
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Project Governance
These entities have been selected as the attendees of the meeting as they will be required to
be provided with the project status and the set of conflicts. They will have the authority to
take decisions for the project, recommend the changes to be made, and resolve the project
conflicts.
The frequency of the meeting has been selected weekly because the entities will be involved
in other projects as well and the changes recommended will be performed by the members of
the project team in a week’s time.
Format & Structure of the CEO & Board Project Reports
The CEO of the organization and the Board shall be provided with the project reports as
weekly status reports, detailed project plan, project conflicts report, performance reports, and
project completion report. Any of the urgent risks and issues shall also be reported to these
entities. The marketing report, energy consumption report, and environment sustainability
report will also be submitted to these entities (Muller et al., 2016).
The data sets that are used and presented in these reports shall be the actual values associated
with the project. This will provide the CEO and Board to make decisions and
recommendations as per the details shared. The actual values will be needed as they will be
required to be provided with the project status and the set of conflicts. They will have the
authority to take decisions for the project, recommend the changes to be made, and resolve
the project conflicts (Biesenthal and Wilden, 2016).
The reports shall be developed using the standard template followed by the organization and
must include the following sections.
 Title of the Report
 Date & Time
 Prepared By
 Purpose of the Report
 Objectives of the Report
 Contents of the Report – Latest figures and values
 Actions Proposed
There shall be use of graphical elements, such as charts and figures that must be done to
enhance the level of understanding. These reports shall be uploaded on the SharePoint
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Project Governance
location and the contents shall be protected so that the information included in the report does
not get exposed to the unauthorized entities.
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Project Governance
References
Aliza, A., Stephen, K. and Bambang, T. (2011). The Importance of Project Governance
Framework in Project Procurement Planning. Procedia Engineering, 14, pp.1929-1937.
Biesenthal, C. and Wilden, R. (2016). Multi-level project governance: Trends and
opportunities. [online] Available at: http://dx.doi.org/10.1016/j.ijproman.2014.06.005 0263-
7863/$36.00/© 2014 Elsevier Ltd. APM and IPMA [Accessed 20 Sep. 2018].
Bovteev, S. and Petrochenko, M. (2015). Method “Earned Value Management†for
Timescale Controlling in Construction Projects. Applied Mechanics and Materials, 725-726,
pp.1025-1030.
Muller, R., Zhai, L., Wang, A. and Shao, J. (2016). A framework for governance of projects:
Governmentality, governance structure and projectification. International Journal of Project
Management, 34(6), pp.957-969.
Wang, W., He, E. and Zhao, Y. (2014). Earned Value Analysis Application in Project
Management. Advanced Materials Research, 971-973, pp.2494-2497.
Waris, M., Khamidi, M. and Idrus, A. (2012). The Cost Monitoring of Construction Projects
through Earned Value Analysis. Journal of Construction Engineering and Project
Management, 2(4), pp.42-45.
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