Fundamentals of Project Management Consultancy Report Analysis

This report provides a comprehensive analysis of a project management consultancy scenario involving AF Plc. and TTF. It begins with an executive summary outlining the key objectives and constraints of project management. The introduction sets the stage by defining project management fundamentals and introduces the fictional case study of AF Plc., a project consultancy firm, tasked with developing a new engineering automation plant for TTF. The report is divided into two parts: the first part focuses on project management consultancy, including the analysis of iron triangle parameters (time, cost, scope, and quality), risk register creation, network diagram and Gantt chart preparation, project budgeting, and Earned Value Analysis. The second part presents a reflective essay, discussing challenges faced and characteristics of a good project manager. The report concludes with references and a call for action.

Fundamentals of project
management

Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................1
Project definition and risks (Question 1).........................................................................................1
(a) Discussing the relative importance of the various iron triangle parameters..........................1
(b) Creating a risk register...........................................................................................................3
Planning and costs (Question 2)......................................................................................................5
(a) Preparing a network diagram showing the critical path.........................................................5
(b) Preparing a Gantt chart..........................................................................................................6
(c) Calculating project Budget and the projected Net profit for the contract..............................8
Managing progress and spending (Question 3).............................................................................12
(a) Creating a TABLE comparing the planned progress against the actual progress values.....12
(b) Producing a revised Gantt chart and identifying the new completion date.........................13
Earned Value Analysis and Acceleration (Question 4).................................................................14
(a) Create an Earned Value Analysis table................................................................................14
(b) Earned Value Analysis computations..................................................................................15
(c) Recommendations................................................................................................................16
REFERENCES..............................................................................................................................17
PART B - REFLECTIVE ESSAY................................................................................................18
Reflective Essay.........................................................................................................................18

EXECUTIVE SUMMARY
Management of project is a practice that leads to start is a procedure considering initiating,
planning, executing, controlling and closing the probable task or project by attaining the
prominent goals and objectives with matching the specific success criteria. In terms of this, the
primary objective is to achieve all the prominent goals within the provided constraints.
Moreover, its primary constraints include scope, time, quality and budget.

INTRODUCTION
A fundamental of project management is the concept of basic phenomenon of managing and
controlling a project (Braunovic, Myshkin and Konchits, 2017). This concept acts as a process in
which a project manager plans, execute and then follow up the status of completion of the
project. In this report a fictional organisation is selected which AF Plc. This company is a project
consultancy organisation which provides services to other organisations. This company has
acquired to project of TTF organisation which is a train manufacturing company. TTF has
provided contract to AF Plc. to develop a new engineering automation plant.
This report is divided into two sections, in section one, triangle parameters of project
management are analysed along with development of risk register. Using the project information
of AF Plc. Gantt chart and network diagram is prepared along with a project budget. The analysis
of Earned value is also conducted in this report along with valid recommendations. In the second
part of this report, a reflection analysis is done which includes channellings faced in this module
along with identification of the 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
Iron triangle parameters are the constraints which shape a project. These parameters are
important to be identified by a project manager as these are the basis of evidencing success of the
project (Edwards, 2013). A visual representation of iron triangle parameters is given below from
which it is analysed that it is important to effectively control three parameters of cost, time and
scope otherwise the quality of the project will be impacted.
1

(Source: Iron triangle parameters, 2018)
All four parameters of iron triangle are assessed separately below:
Time – This is the most important parameter of project management which is based upon
the panned schedule of a project. Project manager analysis all the attributes in a project and then
combine them with project’s external factor; considering all this an estimated schedule is then
prepared (Kerzner, 2017). The reason behind the importance of this parameter is that it helps to
ensure completion of the project on time. In the current scenario, as a project manager of AF
Plc., it is important to ensure that the project of TTF is completed on time otherwise AF Plc. has
to pay penalty of 100k per day.
Cost – This parameter includes all the expenses which a company spends for the
completion of project. A project manager develops a budget in which estimation of these costs
are included. It is important to restrict the activities of the project under the planned budget only
otherwise project management company has to face situation of lower profit and even loss.
Scope – This constraint is related with features and functionality of the project. As the
project manager of AF Plc. all features of the new engineering automation plant has to be
planned effectively. This planning of scope is important as it provides a surety that all the
requirements of client are completed within the project (Kroenk and Auer, 2012).
Quality – This is the fourth parameter of project management which is effected by al the
constraints analysed above. Quality of a project is important to be maintained as it provides
2

satisfaction to the client. In the case of AF Plc., quality parameter is even more important as AF
Plc. is obliged to pay any maintenance fees which have occurred due to faults in plant to TTF
Plc.
All the parameters which are analysed above are related to each other. In the case where
time of the project is fluctuation, it has to be controlled by other two parameters of scope and
cost (Leach, 2014). It is important to balance these three constraints of project management
otherwise quality of the project is impacted negatively.
(b) Creating a risk register
Risk is an uncertain situation which can occur in a project due to both internal and external
factors (Lussier, 2011). In order to control and manage these risks by a project manager, it is
important to primarily identify all the risks which can occur at the time of executing a project. As
a project manager of AF Plc. a total of 8 risks are identified which can occur at the end of
executing new engineering automation plant project. These risks are identified and recorded
using a risk register.
Risk Risk
occurrence
probability
Estimated
risks impact
Causes of the risks Mitigation actions for
the risks
Damage of
equipment
High Medium Equipment at the
plant site can be
damaged due to
negligence of
engineers and
supervisors
In order to mitigate
this risk, AF Ltd.
should keep buffer
stock of equipment so
that no time should be
wasted due to damage
of equipment.
Theft of
equipment
High Medium This risk can be
caused due to
negligence of
supervisor and lack
of security.
AF Plc. must install
security cameras at the
plant site so that
equipment and staff
both can be protected
(Nicholas and Steyn,
3

2017).
Shortage of
labour
Low High This risk can occur
due to absenteeism of
labour.
AF Plc. should hire
workers through a
contract labour so that
that contracted
company can be held
liable for adequate
labour force.
Shortage of raw
material
Medium Low Wastage of raw
material
A separate supervisor
will be allotted who
will work to ensure
raw material re order
on time.
Shortage of
financial
resources
Low High This risk can occur
due to various causes
which are theft of
money, usage of
additional labour or
raw material,
contingent expenses
and many more.
If this risk occur, it
will high impact AF
Plc.’s project of TTF.
To mitigate this risk,
AF Plc. must develop
reserves which can be
used for contingent
situations (Peterso and
et.al., 2011).
Safety hazard
which lead to
labour accidents
Low Medium Negligence of
employees and
technical
malfunctioning.
Every employee must
have an insurance
policy for workplace
accidents.
Change in
political policies
Low High Political and
economic situations
in business
environment
AF Plc. must acquire a
license for their
project so that no
issues can impact this
4

(Reschke and
Schelle, 2013).
project. For any other
contingent situation,
reserves of time and
finances can be
developed.
Natural calamity Low High This risk can be
caused due to
environmental
change which can
result into
earthquake, flood,
heavy rains and many
more.
In order to mitigate
this risk, AF Plc.
should procure an
insurance against
natural calamity. Also
this company should
include a clause in
their contract with
TTF Plc. that any
damage and delay due
to natural calamities
will not be suffered by
AF Plc.
Planning and costs (Question 2)
(a) Preparing a network diagram showing the critical path
AF Plc. has contracted with TTF Plc. for developing their automation plant. For this
project, it is important for AF Plc. to develop a network diagram from which they can identify a
critical path. It must be considered that critical path is a path having all critical activities which
are crucial to be completed on time in a project and delay in any of these activities will surely
result in delay of the entire project.
(Shimizu, 2012)
5

Using the software application of Microsoft Project, a network diagram is developed in
which critical path is highlighted. Float is a concept of project management which presents the
difference between Early strat time or Early finish time and Late start time or Late finish time.
The non critical activities of this project does not have a different late and early dates due to
which there is no float.
(b) Preparing a Gantt chart
Gantt chart is a presentable way of recording expected time of the each activity of a
project. This tool of Gantt chart is used for the project of automation plant from which it has
been identified that this project is expected to be completed on 14 August 2020. This expected
date is restricted to the constraints provided and any change in the activities or external factors
can create a variation in this completion date.
Task
Name Notes Duration Start Finish Predecessors
PI Project Initiation 1 wk Mon 08-
07-19
Fri 12-07-
19
A Commission Design of Factory 3 wks Mon 15-
07-19
Fri 02-08-
19 1
B Commission outline Design of Automation
Equipment 2 wks Mon 15-
07-19
Fri 26-07-
19 1
C Commission outline Design - Inverter Product 1 wk Mon 15-
07-19
Fri 19-07-
19 1
D Detailed design of Factory 8 wks Mon 05-
08-19
Fri 27-09-
19 2
E Detailed design of Automation Equipment and
Inverter Product 8 wks Mon 29-
07-19
Fri 20-09-
19 3,4
F Commission and develop Software for
Automation equipment and Inverter Product 10 wks Mon 23-
09-19
Fri 29-11-
19 6
G Manufacture Automation equipment 10 wks Mon 23-
09-19
Fri 29-11-
19 6
6

H Manufacture Modular Factory Units 9 wks Mon 30-
09-19
Fri 29-11-
19 5,6
I Transport and Construct Modular Factory on
site in Germany 8 wks Mon 02-
12-19
Fri 24-01-
20 9
J Test Automation equipment 6 wks Mon 02-
12-19
Fri 10-01-
20 7,8
K Transport Automation equipment to New
Factory 4 wks Mon 13-
01-20
Fri 07-02-
20 11
L Install Automation equipment in New Factory 6 wks Mon 10-
02-20
Fri 20-03-
20 10,12
M Install Software for Automation equipment 4 wks Mon 23-
03-20
Fri 17-04-
20 13
N Install software for Inverter Product Line 5 wks Mon 20-
04-20
Fri 22-05-
20 7,14
O Test Inverter Production line 6 wks Mon 25-
05-20
Fri 03-07-
20 14,15
P Handover and Train TTF engineers in
Automation process and Product production 6 wks Mon 06-
07-20
Fri 14-08-
20 16
PC Project Close out 0 wks Fri 14-
08-20
Fri 14-08-
20 17
7

(c) Calculating project Budget and the projected Net profit for the contract
A budget is a financial document which is used to identify the expected costs and expected
profit which an organisation can earn after completion of their business activities (Silvius. and
Schipper, 2014). In the present case, a budget for AF Plc.’s new project is developed in which
both fixed and variable costs are considered.
Fixed
cost Variable costs
Partic
ulars
Number
of
engineers
Numbe
r of
Product
ion/Tec
hnician
Total
week
s
Days
/week
Hrs Engineer
cost £/h
Staff
cost
£/h
Total
cost
for
Staff
Total
cost
of
Engin
eers
Total
cost
(B+C
) £
8

staff (B) (C)
Initial
invest
ment
58.5
X 0.2 0 0 1 0 0 0 0 0 0 0.00
A 2.8 10 5 3 5 8 69 39 £23,4
00
£82,8
00
£106,
200
B 1.6 10 5 2 5 8 69 39 £15,6
00
£55,2
00
£70,8
00
C 1.5 10 5 1 5 8 69 39 £7,80
0
£27,6
00
£35,4
00
D 3.8 10 5 8 5 8 69 39 £62,4
00
£220,
800
£283,
200
E 5.4 20 10 8 5 8 69 39 £124,
800
£441,
600
£566,
400
F 3.4 10 5 10 5 8 69 39 £78,0
00
£276,
000
£354,
000
G 6.5 20 50 10 5 8 69 39 £200,
000
H 4 30 40 9 5 8 69 39 £561,
600
£745,
200
£1,30
6,800
I 3.5 10 60 8 5 8 69 39 £748,
800
£220,
800
£969,
600
J 2.2 8 20 6 5 8 69 39 £187,
200
£132,
480
£319,
680
K 2.5 10 5 4 5 8 69 39 £31,2
00
£110,
400
£141,
600
L 3.1 25 50 6 5 8 69 39 £468,
000
£414,
000
£882,
000
M 2.2 10 5 4 5 8 69 39 £31,2 £110, £141,
9