Project Management Report: Cost, Schedule, Quality, and Scope

This report provides a comprehensive analysis of project management principles, focusing on cost, schedule, quality, and scope within the context of an expansion project for an Australian grocery store. The report examines control systems, identifies reasons for cost and time overruns, including labor issues, financing problems, and external environmental impacts. It also explores the roles of project teams and stakeholders, offering potential project management actions for success. The analysis incorporates project management software, Gantt charts, and the critical path method to illustrate the management of project activities, resource allocation, and the importance of quality control. The report concludes with recommendations for effective project management to meet stakeholder expectations and ensure long-term success, supported by academic sources, theories, and models.

PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
CONTROL SYSTEM- COST, SCHEDULE, QUALITY AND SCOPE.......................................1
Cost and schedule........................................................................................................................1
Scope and quality.........................................................................................................................4
REASONS OF COST AND TIME OVERRUNS...........................................................................5
Labour issue of cost and time overruns.......................................................................................5
Financing related issues...............................................................................................................6
Impact of external environment and suppliers or material..........................................................6
PROJECT TEAM AND COST AS WELL AS TIME OVERRUNS..............................................8
Poor skilled labour.......................................................................................................................8
Lack of communication between team........................................................................................8
Lack of coordination....................................................................................................................8
Project sponsor.............................................................................................................................9
RELATIONSHIP BETWEEN THE PROBLEMS YOU IDENTIFY IN (3) AND THE
STAKEHOLDERS NEEDS AND INFLUENCES.........................................................................9
External environment...................................................................................................................9
Suppliers....................................................................................................................................10
Team members...........................................................................................................................10
Customers and competitors........................................................................................................11
POTENTIAL PROJECT MANAGEMENT ACTIONS FOR PROJECT SUCCESS..................11
CONCLUSION..............................................................................................................................12
REFERENCES:.............................................................................................................................14

List of figures
Figure 1: Gantt chart of the expansion project................................................................................3
Figure 2: the Critical path of the expansion project........................................................................3
Figure 3: Project constraints............................................................................................................5
Figure 4: Conceptual framework of factors which overruns the cost and time of project.............7
Figure 5: Project stakeholders.......................................................................................................11

INTRODUCTION
The project management refers to the process of planning, managing, controlling and
executing the project pertaining specific issue related to the business (Stevenson and Hojati,
2007). This enables the corporation to determine the long-term success through meeting the
expectations of all related stakeholders (Kerzner and Kerzner, 2017). However, many IT and
construction project fails due to the issue of cost and time overruns. In this context, the
expansion plan has been prepared for Australian grocery store in the same country. For this
purpose, the plan has been reviewed in context control systems, the scope of the project and team
management. Furthermore, critical evaluation has been provided for the rationale behind cost and
time overruns with the incorporation of relevant academic sources, theories and models. Apart
from this, project management plan of the respective plan has been explained with the
application of project management software; critical path method and Gantt chart for the better
division of roles and responsibilities among team members.
CONTROL SYSTEM- COST, SCHEDULE, QUALITY AND SCOPE
There are several control systems which are used for the better project management that
involve cost, schedule, quality and scope so that project can be completed within these systems.
Cost and schedule
The cost is the indicator of the project that includes the cost control process which
reflects that cost should not be exceeded to the set standards because most of the time cost
overruns to the decided cost especially in case of construction and IT. In this context, the cost
can be distributed as per the requirements like planning, budgeting, funding and managing the
cost so that project can be finished in the decided budget. The cost and schedule of the current
expansion project will need approximately $77500 for completing different activities related to
the project including the activities market analysis, setting of objectives, resource allocation,
designing and implementation of the final project. All these activities are mentioned in the
below-given table (refer table 1). However, the cost control parameters can be used for the
projects so that cost can be minimized with the help of them. Cost can be controlled using
various techniques and approaches including keeping the cost on track, effective management of
time, proper planning of project budget and use of earned value etc (Aliverdi, Naeni and
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Salehipour, 2013). These tools will be helpful in controlling the cost by proper management of
all the project activities. Therefore, keen attention of management is requires to effectively
complete the project and increase the chances of its success.
Table 1: Cost and time management of the project
Task Name Duration Start Finish Predecessors
Analysis of market 25 days Mon 5/28/18 Fri 6/29/18
Collection of data 15 days Mon 7/2/18 Fri 7/20/18 1
Setting of targets 8 days Mon 7/23/18 Wed 8/1/18 1,2
Identify the location 25 days Mon 7/2/18 Fri 8/3/18 1
Preparing blueprint of the
project 22 days Thu 8/2/18 Fri 8/31/18 3
Finding the resources 20 days Mon 9/3/18 Fri 9/28/18 5
Prepare a team 12 days Mon 10/1/18 Tue 10/16/18 4,6
Resource distribution 15 days Mon 10/1/18 Fri 10/19/18 6
Assigning the duties 10 days Mon 10/22/18 Fri 11/2/18 7,8
Design of outlet 50 days Thu 8/2/18 Wed 10/10/18 3
Analyzing the work-in-
progress 15 days Thu 10/11/18 Wed 10/31/18 10
Changes in project 25 days Mon 11/5/18 Fri 12/7/18 9,11
Final implementation 15 days Mon 12/10/18 Fri 12/28/18 12
Schedule relates to the time of the projects that it should be completed on or before the
time so that cost cannot be overrun with excess use of time. For instance, the current project has
estimated time of 257 days that means the expansion process of the new food store should be
completed within more than 8 months. In this context, schedule serves as the control system for
which Gantt chart has been applied to present the overall cost structure as well as systematic
schedule associated with the expansion project of XYZ company (refer figure 1). It facilitate to
complete the project in given time span. In this regard, Atkinson (1999) asserted that if the
project will not be finished in the decided schedule then it will increase the cost of the project
because due to this extra manpower and other resources required. They further stated that cost
and schedule are the primary parameters of the project which are developed in the planning
phase so that it will be specified that where should be investing more. Owing to this, for the
current project critical path method has been used so that longest path of the project can be
discovered through which cost can be reduced to a great extent.
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Figure 1: Gantt chart of the expansion project
Figure 2: the Critical path of the expansion project
The above critical path reflects that expansion project will cover
1+2+3+5+6+8+9+12+13=155 days and cost worth $48500. This is because all marked activities
will be highly focused and the remaining activities will be covered along with the critical path.
This was helpful for the project manager to divide all the project activities effectively and
distribute the stipulated time in such a manner that cost will not overrun.
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Scope and quality
Quality and scope are also the important parameters of the project because it will identify
the quality standards that how a project is efficient. Quality is that thing which can be measured
at any stage of the project in work-in-progress and before final execution. In this regard, Fleming
and Koppelman (2016) stated that project’s total work scope is a major and difficult aspect
because, without complete determination of the scope, it is not possible that what is to be done in
the next stage. In scope, each and everything will be pre-decided that in this particular activity it
should be done at this time. Project scheduling and scope both are linked together because, with
the help of the time frame, it will be easy to define the scope that where the resources can be
engaged efficiently. The scope of the current project is to complete it in 8 months and start the
operation of the store in relatively less time. However, Kerzner and Kerzner (2017) argued that
to meet the scope and time of the projects there must be an increment in the budget or there
should be a decrement in the scope to attain the cost and time management. It reflects that scope
of the project is concerned with the management of time and budget so that according to this
scope can be perfectly defined and it will be helpful in attaining the expected cost.
There are different methods to measure the quality standards of the projects include
TQM, Quality cost matrix, Quality performance management system etc (Tmeemy, Rahman and
Harun, 2012). Further, Aoieong and et al., (2002) stated that completion of the project in the
timeline with quality standards is not an easy task and it is a big constraint for the construction
sites. Measurement of the quality cost is very difficult to act for the project's managers because it
requires a lot of extra costs. However, Schiffauerova and Thomson (2006) argued that due to
poor quality companies are not able to know about that what they have the loss and it happens to
mismanagement of the quality management. Because they have the assumption that quality
measurement is just a process and it takes more time and cost in the project so they do not an
emphasis on the quality assurance. Therefore, it indicates that quality is as important as other
control systems because the total cost of the project depends on its time and quality because both
run together. If there will be proper time then the project can be of expected quality.
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REASONS OF COST AND TIME OVERRUNS
Cost and time both are the main part of the project that without the estimation of both
these factors projects cannot be completed on the time or before time then ultimately, it cost and
time will overrun. There are several reasons that lead to cost and time overrun include the wrong
estimation of the cost at the initial stage, planning, design and scope of the project are not in a
proper manner etc. (Olawale and Sun, 2010). These are explained as follows-
Labour issue of cost and time overruns
Meredith and Mantel (2011) stated that availability of skilled workers along with high
labor cost also a direct impact on the project completion. This is because although business will
incur the high cost of labor their skillfulness would be effective for successful completion of the
project. However, Smith and Wong (2016) mentioned that the material which is used for the
project is of less quantity at project site and supplier also having the material out of stock. This
tends to affect the cost as well as time completion for the project (refer figure 3). So it will
increase the cost of the project because more time will require and for that labor will also charge
the extra amount for the excess use of time. Therefore, it reveals that cost and schedule are the
major parameters of the projects because cost depends on the completion of the project on time
or before. If the project gets delay then it turns to increment in the total cost.
Figure 3: Project constraints
(Source: Schwalbe, 2015)
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Financing related issues
Doloi and et al., (2012) stated that time and cost increases during project due to not
proper financing of the completed work, changes in the site meanwhile, availability of material is
less and management with the contractor is poor. These are the main factors which lead the extra
cost and time for the project during work-in-progress. However, Haseeb, Bibi and Rabbani,
(2011) argued that there other factors which have a higher contribution to the delay of the
projects like natural disaster flood and earthquake. By considering the impact of external
environment and suppliers related issues, the expansion project was backed by advanced
payment for suppliers for the security of availing quality material. The material was supplied on
the contract basis of along with prior communication related to quality. On the other hand,
Alinaitwe, Apolot and Tindiwensi (2013) asserted that delay in payments to the worker,
suppliers, poor inspection; political insecurity and the high cost of the capital are the major
reasons that increase the cost. Because when the suppliers will not get the payments on the time
then they will stretch the project life. Thus, long-term contracts with suppliers along with the
communication about the quality of material facilitate successful project deliveries.
Impact of external environment and suppliers or material
Several studies mentioned that cost and time of the project overruns because there are
fluctuations in the changes in designs, risk and uncertainty with running projects, the price of
materials, inaccurate predictions regarding estimations and requirement of extra work etc.
(Frimpong, Oluwoye and Crawford, 2003; Sambasivan and Soon, 2007; Smith and Wong, 2016).
In this context, Koushki and Kartam (2004) asserted that unreliable sources of materials,
accidents on site, unskilled labor, not timely payment to material supplier and mismanagement of
the finance to the entire project. It is not applicable for the quality projects because it shows that
inefficiency in the task and process. However, Rahman and et al., (2013) argued that there is a
relationship between time and cost because when the project takes more time to complete then it
ultimately increases the cost. The extra time required for the project to improve the quality and
standardization so that more money will be needed for that extra time and the involvement of the
labor as well as other factors. Therefore, it reveals that cost and time of the projected increase
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due to lack of proper time management, low quality of material, unskilled workers lead to
overrun.
Yet, the project got delayed by 170 days due to the political pressure and selection of
wrong suppliers. Although, it was assessed that external environment is favorable still less
focuses was laid on the contemporary issue through which it was hard to continue with the
project. On the other hand, the issue of suppliers was prominent which created barriers to the
completion of the project at the time. At this juncture, the project manager has to return the low-
quality material suppliers by suppliers and then out of stock was the major issue through which
project got delayed. With the persistent issue in the project, late the decision of selection of new
supplier was taken. This already consumed huge time and cost and accordingly project got
delayed. Further, for the urgent projects, more expenses and higher skilled labor needed and that
will overrun the overall cost (Sambasivan and Soon, 2007). Moreover, Olawale and Sun (2010)
asserted that the experts associated with decided the cost also matters because their ability to
anticipate the uncertainties reveals how realistic the cost has been set. Therefore, it is crucial to
focus on the quality of raw material and other related aspects which affect the overall project
performance.
Figure 4: Conceptual framework of factors which overruns the cost and time of project
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(Source: Researcher’s own made)
PROJECT TEAM AND COST AS WELL AS TIME OVERRUNS
Project execution team held the project from start to the end process and they will
perform all the activities as per the expectations as well as requirements. The reason through
which project team can be held responsible is explained as follows-
Poor skilled labor
The project team which is not selected on the basis of requirement of skills and attribute
may be responsible for the cost and time overruns (Pich, Loch and Meyer, 2002). This is because
they decide that where should be invested, prepare the budget, determine the schedule and
provide the resources for the completion of the project (San Cristóbal, 2017). By considering the
importance of skilled labor, the project manager in the current expansion selected its team on the
basis of their expertise. For instance, qualified architectures were selected who can design the
layout of the store effectively. Apart from this other supportive team like a coordinator, resources
providers and motivators were decided through which all project activities can be completed
within the stipulated time span.
Lack of communication between team
Akal, Maaty and Hamrawy (2017) stated that lack of communication among all team
members is the main cause for the overruns of the project cost. Because when the all team
without the proper interaction perform the task regarding material handling, time, use of finance
as per the need etc. then there can be mismanagement with all activities. However, Baiden, Price
and Dainty (2006) argued that project team comprise the various participants from the different
organizations and bring them together for the effective working. So that objectives of the
projects can be achieved that cost remains under the expectations and less time can be used.
Lack of coordination
The lack of coordination was the issue in the expansion project because project manager
did not get time to interact with the suppliers in an advance. This causes the serious issue and
poor quality raw material was delivered through which project got delayed. In this context,
Frimpong, Oluwoye and Crawford (2003) mentioned that lack of understating in all team
members leads the poor performance of the project and cost overruns because the ability of
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management and responsibility is not properly assigned to all of them. However, if the project
team is technically competent then it can be able to manage the scope of the project, estimation
of the project activity time in real, monitoring of the project at the execution stage of the project.
So that cost and time of the project can be under the decided criteria (Doloi, 2012). It reveals that
poor performance of the project teams is responsible for the increment of the cost but on contrary
if the team will include the technically qualified people then the time and cost both can be
reduced.
Project sponsor
Guide (2015) asserted that project sponsor also plays an important role by providing the
fund at the time. The issue related to delay in payment can also affect the time schedule of the
project. Yet, the current expansion project did not face any such issue because the project
sponsor remained cooperative by providing the overall fund in an advance. Therefore, it
indicates that execution team and project sponsor all responsible for the overruns of the cost and
time because they are those people who decide each and everything regarding project from
commencement to completion.
RELATIONSHIP BETWEEN THE PROBLEMS YOU IDENTIFY IN (3) AND THE
STAKEHOLDERS NEEDS AND INFLUENCES
There are several stakeholders associated with the project including team, client,
competitors, government and suppliers etc. who contribute towards the success of the project in
the direct or indirect manner. It is the major responsibility of project manager to understand the
key requirement of different stakeholders and meet the same with the application of stuiable
strategies. It is because project is related to only client but several others parties who have direct
or indirect interest in the same. These are explained as follows-
External environment
As noticed in the third part the external environment was the threat for the expansion
project through which project cost and time overruns. At this juncture, the influence of
government could have been anticipated by the project team. It is because uncertainty related to
political environment disturbs the related activities of the project to a great extent. In this
context, Maylor, Vidgen and Carver (2008) asserted that improper analysis of environment affect
the project success as major uncertainties are associated with it. For this purpose, it is important
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