Project and Financial Management: Case Study Analysis, Term 1, 2018

This case study assignment analyzes project and financial management principles through the lens of two distinct scenarios. The first part examines Fletcher Construction's successful completion of the Sky Tower project, highlighting the importance of project management, logistical planning, and adhe...Read More

Running head: PROJECT AND FINANCIAL MANAGEMENT
DBN 609: Project and Financial Management
Term 1, 2018
Assessment 1: Case Study Assignment
Name of the student: [Please Fill]
Student ID: [Please Fill]
Lecturer’s name: [Please Fill]
Date: 28 February 2018

1PROJECT AND FINANCIAL MANAGEMENT
Table of Contents
Question 1........................................................................................................................................2
Answer to Question 1 a................................................................................................................2
Answer to Question 1 b...............................................................................................................2
Answer to Question 1 c................................................................................................................2
Answer to Question 1d................................................................................................................3
Question 2........................................................................................................................................3
Answer to Question 2 a................................................................................................................3
Answer to Question 2 b...............................................................................................................4
Answer to Question 2 c................................................................................................................4
Answer to Question 2 d...............................................................................................................4
Answer to Question 2 e................................................................................................................5
Answer to Question 2 f................................................................................................................5
Answer to Question 2 g...............................................................................................................6
Answer to Question 2 h...............................................................................................................6
Answer to Question 2 i................................................................................................................7
Answer to Question 2 j................................................................................................................7
Question 3........................................................................................................................................7
Answer to Question 3 a................................................................................................................7
Answer to Question 3 b...............................................................................................................7
Answer to Question 3 c................................................................................................................8
Question 4........................................................................................................................................8
Answer to Question 4 a................................................................................................................8
Answer to Question 4 c................................................................................................................9
References......................................................................................................................................12

2PROJECT AND FINANCIAL MANAGEMENT
Question 1
Answer to Question 1 a
Fletcher construction is one of the leading construction company of New Zealand which
completed the construction of Sky Tower in 1997. Sky Tower is considered as the 12th tallest
tower in the world and eventually taller than the Eiffel tower (Fletcherconstruction.co.nz 2018).
There were various obstacles involved in this project undertaken by Fletcher Construction in
terms of time, efficiency and the construction quality. However, the application of sound project
management helped to complete this impossible project in six months ahead of schedule.
Answer to Question 1 b
For building the 12th tallest tower, Fletcher Construction Company is required to appoint
a project manager to complete the project within estimated time phase and allotted budget. The
construction project manager is responsible to prepare the work division and activities for the
entire project team members to reduce the workload from them (Fletcherconstruction.co.nz
2018). Apart from this, not only in the project planning phase but also in the rest of the project
life cycle the project manager is responsible to control and monitor the project progress details.
The construction company needs a project manager to keep the project client and the service
provider within a loop for managing project risks.
Answer to Question 1 c
In order to overcome the logistical issues of the Fletcher construction project, some of the
fundamental project management responsibilities that should be adopted include material logistic
planning, logistical techniques etc. Fletcher should use constriction consolidation centre for
supply and distribution of construction raw materials. These kinds of centers serve efficient and
safe material flow to the construction sites from the service providers (Fletcherconstruction.co.nz
2018). The consolidation center can distribute raw materials to the construction sites on proper
time and accurate quality. It also contributes proper certainty to the supply approach with a
decreased number of deliveries to the construction site. The amount of raw material wastage also
minimized a lot with this strategy.

3PROJECT AND FINANCIAL MANAGEMENT
Answer to Question 1d
In order to accomplish any project, towards measurable success it is necessary for the
project manager to maintain the project triple constraints in terms of quality, schedule and cost.
In order to build the Sky tower in Auckland the estimated budget was $69 Million and after the
completion of the construction it is found that there was no huge variation between the actual
cost and planned cost (Fletcherconstruction.co.nz 2018). Not only this but also it was founded as
the lowest cost maintaining towers all over the world. According to the background of the
project it has been found that the project was completed within estimated schedule that is on
February, 1994. Besides this, the quality of the construction was very much appreciable as it was
328 m tall and it has 200km/hour wind and 8.0 magnitude earthquake resistance ability
(Fletcherconstruction.co.nz 2018). Additionally, in last 100 years, it was founded as the lowest
cost maintenance rating buildings in the world which implies tits high quality.
Question 2
Answer to Question 2 a
The network diagram being drawn from the given activities for the project to re-launch
Omega Z is depicted as below:
Figure 1: Network diagram for the project
(Source: Created by Author)

4PROJECT AND FINANCIAL MANAGEMENT
Answer to Question 2 b
The calculation of Earliest Start Time (EST) for each and every activity is shown as
below:
Activity Description Earliest Start Time (EST)
A Understand the
Problem
= 0 (As it is the beginning activity)
B Research Solutions = 4 (EF of Activity A)
C Allocate Resources = 10 (ES + Duration of Activity A = EF of Activity B)
D Protyping = 10 (ES + Duration of Activity A = EF of Activity B)
E Machining = 14 (ES + Duration of Activity C = EF of Activity C)
F Testing = 14 (ES + Duration of Activity C = EF of Activity C)
G Manufacturing = 24 (ES of Activity E/F + Duration of Activity E/F = EF of
Activity E/F as both have the same values)
Note: ES  Early Start and EF  Early Finish
Answer to Question 2 c
The calculation of Latest Start Time (LST) for each and every activity is shown as below:
Activity Description Latest Start Time (LST)
A Understand the
Problem
= 0
(LF of Activity = LS of Activity B – Duration of
Activity A)
B Research Solutions = 4 (LF – Duration of Activity B)
C Allocate Resources = 10 (LF – Duration of Activity C)
D Protyping = 14 (LF – Duration of Activity D)
E Machining = 14 (LF – Duration of Activity E)
F Testing = 14 (LF – Duration of Activity F)
G Manufacturing = 24 (LF – Duration of Activity G)
Note: LS  Latest Start and LF  Latest Finish

5PROJECT AND FINANCIAL MANAGEMENT
Answer to Question 2 d
The calculation of Earliest Finish Time (EFT) for each and every activity is shown as
below:
Activity Description Earliest Finish Time (EFT)
A Understand the Problem = 4 (ES + Duration of Activity A)
B Research Solutions = 10 (ES + Duration of Activity B )
C Allocate Resources = 14 (ES + Duration of Activity C)
D Protyping = 20 (ES + Duration of Activity D)
E Machining = 24 (ES + Duration of Activity E)
F Testing = 24 (ES + Duration of Activity F)
G Manufacturing = 29 (ES + Duration of Activity G)
Note: ES  Early Start and EF  Early Finish
Answer to Question 2 e
The calculation of Latest Finish Time (LFT) for each and every activity is shown as
below:
Activity Description Latest Finish Time (LFT)
A Understand the Problem = 4 (LS of Activity B – Duration of Activity A)
B Research Solutions = 10 (LS of Activity C as it has the lowest value)
C Allocate Resources = 14 (LS of Activity E/F)
D Protyping = 24 (LS of Activity G)
E Machining = 24 (LS of Activity G)
F Testing = 24 (LS of Activity G)
G Manufacturing = 29 (EF of Activity G = Late Finish of Activity G)
Note: LS  Latest Start and LF  Latest Finish
Answer to Question 2 f
The calculation of Slack Times for each and every activity is shown as below:
Activity Description Slack Times = (LS – ES)
A Understand the Problem 0 – 0 = 0

6PROJECT AND FINANCIAL MANAGEMENT
B Research Solutions 4 – 4 = 0
C Allocate Resources 10 – 10 = 0
D Protyping 14 – 10 = 4
E Machining 14 – 14 = 0
F Testing 14 – 14 = 0
G Manufacturing 24 – 24 =0
Note: LS  Latest start and ES  Early Start
Answer to Question 2 g
The network diagram that has been drawn by calculating the slack times for each and
every activity is presented as below:
Figure 2: Critical path method Network diagram
(Source: Created by Author)
There are two critical path for the re-launch of Omega Z as provided below:
ABCEG
ABCFG
Answer to Question 2 h
The critical path duration for both the determined paths is same as illustrated below:
ABCEG = (4+6+4+10+5) weeks = 29 weeks

7PROJECT AND FINANCIAL MANAGEMENT
ABCFG = (4+6+4+10+5) weeks = 29 weeks
Hence, it has been found that the critical path duration for the re-launch of Omega Z is 29
weeks.
Answer to Question 2 i
The Gantt chart that has been developed for assisting management of XYZ Ltd to
relaunch Omega Z is presented as below:
Figure 3: Gantt chart for the Omega Z relaunch project
(Source: Created by Author)
Answer to Question 2 j
The expected end date of the project for ensuring the efficient provision to relaunch
Omega Z is 01 August 2018. It has been derived assuming that the project will start on 11
January 2018.
Question 3
Answer to Question 3 a
According to the provided case study, project manager is not efficient enough to conduct
the risk management effectively. This fact is evident from the excerpt of meeting between
Project Manager and Project Sponsor, the Project manager has mentioned that the risk events
may go away with time. The project manager has identified 100 risk events however, the plan for
risk management have not been developed. The project manager has put forward a work
breakdown structure as the project management methodology used by Norfolk & Chance does
not include any risk management plan. Further, the categorization of risks have not been done so

8PROJECT AND FINANCIAL MANAGEMENT
it can be said that the project manager is not performing effectively in risk management for the
project.
Answer to Question 3 b
The large number of risks identified by the project manager in the provided case study
can be managed effectively by developing a suitable risk management plan. The project manager
must understand and adapt the methodology for project management used by Norfolk & Chance
to effectively manage the identified risks. The project manager must categorize the identified
risks according to their probability and impact so that the suitable management strategy can be
implemented.
Answer to Question 3 c
A comprehensive risk management plan can be included in the second phase that is
Detailed Planning phase of the project management methodology used by Norfolk & Chance
Ltd. This phase is appropriate to implement the planning of risk management as it will involve
all the planning activities that are required to successfully execute the project. The detailed
planning phase will comprise of determining the activities and assigning roles to project
members hence it will be the suitable phase to implement risk management planning. This phase
will help the project manager to better understand the probability and impact that will occur on
the project due to the identified risks.
Question 4
Answer to Question 4 a
The risk total for the major risk factors that have been identified in context to the case
study of Norfolk & Hope Ltd is presented as below:
Risk
# Identified Risk Factors
Probabilit
y
Impac
t
Risk Total
(Probability x
Impact)
1 Communication Misunderstandings 4.5 5.0 22.50
2
Cultural Differences in Work
Expectations 4.5 4.0 18.00
3 Cultural Perceptions 2.5 4.5 11.25

9PROJECT AND FINANCIAL MANAGEMENT
4 Multicultural Team Dynamics 4.0 3.5 14.00
5 Issues in Virtual Relationship Building 2.5 3.5 8.75
6 Time Zone Differences 3.5 2.5 8.75
7 Differences in Technologies 2.5 2.0 5.00
Total 88.25
Hence, the total risk has been calculated as 88.25 for the provided seven risk factors
identified in Norfolk & Hope Ltd.
Answer to Question 4 c
The risks that impact the successful leading of new projects for Norfolk & Hope Ltd can
be categorized as described below:
Mitigate: This action will reduce the impact with the help of intermediate steps.
Avoid: In this action, plans can be changed for eliminating the problem.
Transfer: This action means that the risk can be outsourced to third party for managing
the outcomes.
Accept: This action means accepting of the risks that may eventually have negative
impact on the project.
Risk # Identified Risk Factors Category
1 Communication Misunderstandings Mitigate
2 Cultural Differences in Work Expectations Accept
3 Cultural Perceptions Accept
4 Multicultural Team Dynamics Accept
5 Issues in Virtual Relationship Building Transfer
6 Time Zone Differences Accept
7 Differences in Technologies Avoid

10PROJECT AND FINANCIAL MANAGEMENT
The identified risk factors can be managed for the success of new projects for the
company by the following strategies:
Risk #
Identified Risk
Factors Management Strategy
1
Communication
Misunderstandings
In order to mitigate the issues of communication
misunderstanding, the project manager and project team
members should use open communication (Portny 2017).
Through this approach the project team members will be
able to share their ideas and views with the rest of the team
members (Kerzner and Kerzner 2017).
2
Cultural Differences in
Work Expectations
For avoiding the cross cultural difference in the workplace,
immediate just after opening the organizational issues
should be addressed. Besides communication skills listening
skill must be improved to recognize and respect the personal
difference (Leach 2014). Additionally, the members should
try to open new things by promoting appreciation of cultural
differences.
3 Cultural Perceptions
For managing the issues of cultural perception, the cultural
differences should be ignored and simultaneously helpful
steps in relation with the foreign culture should be adopted
(Heagney 2016).
4
Multicultural Team
Dynamics
For managing the issues of multicultural team dynamics, the
stereotypes should be avoided for allowing proper
preparation timing and monitoring the team dynamics.
5 Issues in Virtual
Relationship Building
The problems of virtual relationship can be resolved with
sharing and rotating the power through the usage of
predictable communication approach (Mubarak 2015). Not
only should this but the project manager build interpersonal

11PROJECT AND FINANCIAL MANAGEMENT
trust among the project team members.
6
Time Zone
Differences
For resolving the issues of time zone differences the
company should set their expected outcome at an early
stage. In addition to this, all the project team members
should use common communication tools so that they could
stay on same page (Kendrick 2015). According to the need
the schedule of the members should be shifted.
7
Differences in
Technologies
The project manager should hire experienced experts who
are familiar with the advanced technologies, its operation
and functionalities (Muriana and Vizzini 2017). In order to
combat the issues of differences in technologies proper
collaboration tools along with proper technical training and
development approaches are need to be organized by the
executive project managers.

12PROJECT AND FINANCIAL MANAGEMENT
References
Crawford, J.K., 2014. Project management maturity model. CRC Press.
Fletcherconstruction.co.nz. (2018). Sky Tower: Fletcher Construction. [Online] Available at:
http://www.fletcherconstruction.co.nz/projects/commercial/sky-tower [Accessed 28 Feb. 2018].
Heagney, J., 2016. Fundamentals of project management. AMACOM Div American Mgmt
Assn.
Kendrick, T., 2015. Identifying and managing project risk: essential tools for failure-proofing
your project. AMACOM Div American Mgmt Assn.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring
and monitoring project performance. John Wiley & Sons.
Leach, L.P., 2014. Critical chain project management. Artech House.
Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques
for the practicing project manager. John Wiley & Sons.
Moran, A., 2014. Project Risk Management. In Agile Risk Management (pp. 17-32). Springer,
Cham.
Mubarak, S.A., 2015. Construction project scheduling and control. John Wiley & Sons.
Muriana, C. and Vizzini, G., 2017. Project risk management: A deterministic quantitative
technique for assessment and mitigation. International Journal of Project Management, 35(3),
pp.320-340.
Newton, R., 2016. Project management step by step: how to plan and manage a highly
successful project. Pearson UK.
Portny, S.E., 2017. Project management for dummies. John Wiley & Sons.
Turner, R., 2016. Gower handbook of project management. Routledge.

13PROJECT AND FINANCIAL MANAGEMENT