Fundamentals of Project Management Report - AF Plc. Case Study

This report provides a comprehensive analysis of a project management case study based on Automation Futures Company (AF Plc.), focusing on a railway contract. The report is divided into two parts: Part A presents a project management consultancy report, covering project definition, risk assessment, and the iron triangle parameters (cost, time, scope, and quality). It includes the creation of a risk register, network diagrams, Gantt charts, and budget calculations. Part B discusses the challenges encountered and provides reflections on the project. The analysis extends to earned value analysis (EVA), including computations and recommendations. The report uses MS Project to create network diagrams and Gantt charts, and it calculates the project budget and projected net profit. The report also compares planned versus actual progress, identifies a revised project completion date, and assesses the impact of delays on profitability. The report concludes with an Earned Value Analysis table and computations, providing insights into project performance and recommendations for improvement.

Fundamentals of Project
Management

Contents
EXECUTIVE SUMMARY.............................................................................................................3
Project definition and risks (Question 1).........................................................................................1
(a) Discussing the relative importance of the various iron triangle parameters..........................1
(b) Creating a risk register...........................................................................................................2
Planning and costs (Question 2)......................................................................................................5
(a) Preparing a network diagram showing the critical path.........................................................5
(b) Preparing a Gantt chart..........................................................................................................5
(c) Calculating project Budget and the projected Net profit for the contract..............................7
Managing progress and spending (Question 3)...............................................................................8
(a) Creating a TABLE comparing the planned progress against the actual progress values.......8
(b) Producing a revised Gantt chart and identifying the new completion date...........................9
Earned Value Analysis and Acceleration (Question 4).................................................................11
(a) Create an Earned Value Analysis table................................................................................11
(b) Earned Value Analysis computations..................................................................................12
(c) Recommendations................................................................................................................12
REFERENCES..............................................................................................................................14

EXECUTIVE SUMMARY
This project report is based on the case study of Automation Futures Company; where company
has a railway contract with its clients for one year. This project is discussed evaluate in two
parts; Part A and B. Part A covers consultancy Report categorised in four sections; gantt chart,
network diagram, EVA and risk register. On the other hand; Part B covers all the challenges
encountered by company throughout the module.

INTRODUCTION
Project management is the concept of managing and controlling a project from its initial
point of planning to the end point of following up (Chatterji and Fabrizio, 2014). The main aim
of this report is to build an understanding regarding project management and its techniques. For
this purpose, the case study of AF Plc. is selected. AF Plc. is a fictitious company which is
engaged in the operations of business consultancy. This company has taken the project of TTF
ltd which is a train manufacturing company. The project is related to new engineering
automation plant.
This report is divided into two parts. In the first part of this report, iron triangle is
explained along with project management using Gantt charts, network diagrams and timescales.
In this section, overall planned budget for this project is also prepared along with earned value
analysis. In the second part of this report, a reflection is developed using challenges encountered
throughout the Module, difficulties producing the assessment, clear personal development goals
and defining characteristics of a Good Project Manager.
PART A - PROJECT MANAGEMENT CONSULTANCY REPORT
Project definition and risks (Question 1)
(a) Discussing the relative importance of the various iron triangle parameters
The iron triangle is the project management supporting constraints which helps a project
manager to manage all the aspects of a project (Heagney, 2016). There are four parameter of this
iron triangle which are cost, time and scope (triangle sides) and quality (triangle area). All these
parameters are important for a project manager to understand so that project can be suitably
planned. All these parameters are analysed elbow:
Cost – This is the financial constraint of project management which allows a project
manager to develop a budget for overall project. In this parameter, all the costs which can be
incurred during the completion of the project are included (Kerzner, 2017). These costs include
both variable and fixed costs. Mainly these costs are incurred in a project in order to satisfy the
needs of the resources; these resources are equipment for the project, material and skilled
employees for the project. This parameter is highly important for a successful project
management as it helps in limiting the spending limit of the project manager. This constraint also
helps in providing the information about which alternative of supplier is better. Using this
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parameter, the scope of negotiation also expands. This parameter ensures that there will be
project manager company receives a suitable amount of profit.
Time – This is the scheduling parameter of the project management according to which
each task in the project is allotted a certain time in which that activity must be completed in order
to the project in planned time (Larson and Gray, 2013). As a project manager of AF Plc. for the
project of new engineering automation plant, the time constraint will be controlled and managed
using Gantt chart, timescales and network diagram which will be developed from Microsoft
Project application. The parameter of time is important as it helps in restricting the time limit so
that no penalty can be charged for delayed project. Also, this constraint helps in analysing the
chances due to which project can be delayed.
Scope – This is the third constraint and third side of the triangle. This parameter provides
the scope of a project by defining the objectives of the project and the resources which will be
required for the completion of these objectives (Larson and Gray, 2011). As a project manager of
AF Plc., the objective for the project of new engineering automation plant is to complete the
project in budgeted amount and planned schedule so that bonus for early completion of work can
be gained.
Quality – This is the last constraint of project management which defines the level of
quality of the delivered project as per the requirement of client (Leach, 2014). In the case of AF
Plc., this parameter is even more important as if the project of automation plant resulted in any
faults within the last weeks of the completion date then AF Plc. has to pay for damages which
can impact project’s profits.
All the parameters analysed above are related with each other as in absence of one
parameter, the whole project will break down (Burke, 2013).
(b) Creating a risk register
AF Plc. is currently engaged in a large scale project of TTF Plc. in which various risks can
be faced. In order to ensure that all risks are pre identified and there will be no contingencies, a
risk register comprising 7 estimated risks is developed below:
Name of the risk Causes of the
risk
Probability of
the risk
occurrence
Impact of the
risk
Actions for
mitigation
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Lack of financial
resources
This risk can
occur due to
high prices of
raw materials
and high labour
rates (Levitt,
2011).
Low High Raw materials
suppliers and
labour will be
procured on
contract basis so
that risk of high
costs in future
can be
eliminated.
Lack of raw
material
This risk can
occur due to
more wastage of
raw material
than expected.
High Low For this risk, AF
Plc. can create
reserves for raw
material which
can be used in
the case of
contingencies.
Negligence of
employees
Internal and
external
distractions can
create
negligence of
employees
Medium Medium This risk can be
mitigated by
appointing
supervisor for
each activity
which can
control the
employees
(Marchewka,
2016).
Strike of labours This risk can be
caused due to
decisions of
trade union and
Low High AF Plc. will
procure labours
using contracts
so that no such
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high labour rate
demand.
contingency can
occur.
Communication
issues
This risk can be
faced due to
technical errors
in network.
High Low An additional
employee will be
appointed who
will ensure
proper
communication
through the
project.
Natural disaster This risk can be
caused due to
environment
changes
Low High AF Plc. can
develop reserves
for such
contingency
(Pinto, 2013).
Accident at site Due to
negligence of
employees and
technical issues
in machinery
(Ojiako and
et.al, 2011).
Low High AF Plc. can
procure health
insurance of
each of the
employee and
also make sure
medical facilities
at site.
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Planning and costs (Question 2)
(a) Preparing a network diagram showing the critical path
Using software application of MS Project, network diagram of AF Plc.’s project is
developed. The network diagram which is developed shows a path marked with pink which is
ctitical path that is the fastest method to complete the project and it involves all the critical tasks.
Critical paths cannot has a float, but in this case non critical paths also does not have any float
time as there is no difference between late and early finish time (Portny, 2017).
(b) Preparing a Gantt chart
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From the above Gantt chart and timescales, it has been seen that if the new engineering
automation project is strated at 8 July, 2019 then it will end at 14 August 2020. In this period
christmas breaks are not included as chritmas breaks were not allowed to contract labour.
(c) Calculating project Budget and the projected Net profit for the contract
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Working notes:
Bonus for early completion: Amount in pounds
Number of days of early completion 42
Bonus for each day of early completion 50000
Total bonus 2100000
Using all the activities, a budget for TTF’s project is developed which includes all fixed
expenses. It has been assumed that all the cost expenses in procuring the employees of contract
labour and external PM team are included in these fixed costs. As the planned project will be
completed on time, AF will be entitled to receive a bonus. The total profit for this project is
budgeted as 13.85 million. The components which can delay the work and impact the net profit
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of this project is Manufacture Automation equipment as it is a critical task and delaying of this
project will result into delay of entire project.
Managing progress and spending (Question 3)
(a) Creating a TABLE comparing the planned progress against the actual progress values
Gantt chart having only tasks and % complete columns:
Comparison table:
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