Project Management for Business: Viability and Control

This project management assignment provides a comprehensive overview of project management principles, including background and the application of various processes such as planning, organizing, staffing, and controlling activities to attain desired objectives. The assignment analyzes the viability of projects, developing success and failure criteria using methods like payback period and net present value. It explores organizational structures, roles, and responsibilities within a project, emphasizing control and coordination. Furthermore, it delves into project planning, scheduling, estimating, cost control techniques, and project change control procedures, culminating in an evaluation of the completed project. The document highlights key elements in terminating projects and conducting post-project appraisals, offering insights into effective project management practices and strategies.

Project Management For Business
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Contents
INTRODUCTION .............................................................................................................3
TASK 1.............................................................................................................................3
1.1 Background AND Principles of Project Management .............................................3
1.2 Appraise the Viability of Projects, developing Success/Fail Criteria ......................5
1.3 Principles behind Project Management Systems and Procedures .........................7
1.4 Key Elements involved in terminating projects and conducting Post Project
Appraisals. ................................................................................................................... 8
TASK 2.............................................................................................................................8
2.1 Most appropriate organizational structure, roles and responsibilities of participants
within a project..............................................................................................................8
2.2 Control and Coordinate a Project..........................................................................10
2.3 Project Leadership REQUIREMENTS and qualities ............................................10
2.4 Plan and Specify Human resources and requirements for a project ....................11
TASK 3........................................................................................................................... 12
3.1 Project Plans and establish the Project Organization ..........................................12
3.2 Project Scheduling, Estimating and Cost Control techniques...............................13
3.4 Explain Project Change Control Procedures, evaluate the completed project .....15
CONCLUSION............................................................................................................... 16
REFERENCE................................................................................................................. 17

INTRODUCTION
The project management is the key for managing the project and obtain the
desired outcome from the project. A project generally involves huge amount of the
resources and its failure very much affect the functioning of the business. So it is the
responsibility of the project manager to effectively conduct the project and attain the
desired outcome. The project manager effectively conduct planning, organizing staffing,
and controlling the activity to attain a desired objective. The primary objective of the
project manager is to obtain all the project goals within the allocated resources. The
project manager is responsible in effective handling the risk which are associated with
the project and helps in timely prevention of such risk. The project manager breaks
down the project into different activity to attain the desire outcome of the project. The
manger creates effective coordination between the various activities of the project and
facilitate effective communication between those who are related to the project.
TASK 1
1.1 Background AND Principles of Project Management
Project management is the application of various process such as planning, organizing
staffing, and controlling the activity to attain a desired objective. The project manager helps in
delivering unique outcome of the work and within the allocated time and budget. The project is
generally of the temporary nature to obtain a unique product, service or result. The project
management used his skills and competency to achieve the desired outcome in the planned way.
The primary objective of the project manager is to obtain all the project goals within the per-
determined allocated resources. The constraints which the project manager is required to
consider during the project are scope, time Quality and budget. For the success of the project the
project manager needs to apply following principle-
Project structure- The project manager needs to emphasize on three parameter which
are quality, resource and time. The project manager needs to set the desired goals while
designing the project structure. For effective handling of the task the project manager needs to
distribute the project into various parts and set the starting point and end point of each task. For
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the success of the project the manager needs to set the milestone and the corresponding cost and
result (Banal, 2012).
Defining phase-Many of the project faces problem in the defining stage because it is
disorganized due to involvement of the too many stakeholder. The successful defining is needs to
communicate to entire team at every step to attain the desired outcome from the project.
Goal setting- The project manager needs to set the goals which are to be attained from
the project and should communicate it to the various level of the organization. The goal setting
of the project is the complex task and needs to be set after the detail analyze. While framing the
goals of the project the manager needs to consider that the goals are specific, measurable and
ambitious. The project manager needs to check the goal should be realistic and time- bound.
Transparency-The project manage needs to make use of various tools to stay on track.
For this the project manager needs to review and report at each stage of the project. The manager
needs to regularly check that the work is completed within the allocated resources and as per the
set milestone (Banal, 2012).
Risk recognition- The manager needs to determine in advance the risk which may be
associated with the project and built an appropriate strategy to overcome and avoid such risk.
The early recognition of the risk helps the manger to avoid losses so the manger needs to
regularly analyze the risk which are associated with the work.
Managing project- It is difficult for the manager to identify the small risk which are
associated with the project. The manager needs to concentrate on the big risk and build a strategy
to avoid it to prevent failure of the project. The manger needs to regularly focus on the key areas
of the project and check that nothing goes wrong.
Responsibility of the project manager- It is the responsibility of the project manager to
communicate the goals and objective of the project among all the team and individual which are
associated with the project. The manager needs to regularly obtain the status of the various task
and needs to check that they are accomplished in the desired way. It is the responsibility of the
manager to handle the issue within the team and examine both internal as well external factor
which affect the project (Stewart, 2015).

Project success- The success of the project is obtained when the outcome of the project
matches with the pre determine desired outcome. The success is obtained when the project the
deliverable is complete and as per the standard and within the allocated time and budget.
1.2 Appraise the Viability of Projects, developing Success/Fail Criteria
Payback period- The payback period will help the manager in determining the
time within which the business will recover the cost of the investment. This helps the
manager in determining when the investment will attain the break-even point and
provide the positive result. The investment which is having the longer payback period is
not desired for the business. This major drawback of this method is that it doesn’t
consider the rate of interest. For calculating the payback period the investment is divide
by the annual cash saving.
Year Cash inflow in £ Cumulative
1 110000 110000
2 110000 220000
3 110000 330000
4 150000 480000
5 150000 630000
6 150000 780000
total 780000 780000
Payback of project A- The payback period of the first project is 3.46 years
Payback of project B- The payback period of the second project is 4.13 years
So from the above study it may be conclude that the project A is more feasible as it has
the shorter payback period as compared to the second project. The company can
recover its investment much faster in the project A as compared to project B. But this
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method has certain limitation that it doesn’t consider the rate of the interest while
calculating the cash flow (Lippi, & vim, 2016).
Net present value- The net present value is the difference between present value of
inflow and the present value of the outflow. This method is more appropriate because it
consider the rate of interest on investment while deciding the project. This method
consider that the time of cash flow affects the decision of investing in the project. The
NPV value needs to be positive in order to attain good return from investment. The NPV
can be calculated by using the following formula-
Where-
-C0 = initial investment
C = cash flow
r= discount rate
T = time
Year Net flow (£) Discount NPV (£)
1 110000 0.961 105710
2 110000 0.924 101640
3 110000 0.888 97680
4 150000 0.854 128100
5 150000 0.821 123150
6 150000 0.790 118500
total 780000 674780
The both the project are having positive NPV so the company can choose any of
the project. But the investment is quickly recovered in the first project as compared to

second project so the management needs to consider the first project as per the cost
(Demeulemeester, Kolisch & Salo, 2013).
1.3 Principles behind Project Management Systems and Procedures
Managing the project is the complex activity and involves many aspects and
many things to attain the outcome of the project. The manger needs to create the
system which facilitate in determining the project task, create a schedule, assign
resources, and identify the issues related to the project. The project management
system helps the manager in planning, organizing and managing different activity of the
project. The project management system moves through various phases which are-
Initiating the project- The first step of the manager is to plan the activity of the
project by understanding the size, scope and complexity of the process and the
procedure to be followed during the project. The project manager needs to determine
the resources which are required during the project and build effective coordination
between them (Kolesnikova, 2015).
Project planning- The planning of the project helps the manager to distribute the
task and assigning the resources to each activity. During the planning of the project the
manager needs to determine scope and feasibility of the research and break down the
work in smaller task. This will help the manager in building effective control over the
research. The manager in his plan needs to set the standards of the outcome of the
research and build effective communication with all the unit.
Project execution- The manger after planning the process needs to emphasize
on executing the project. While execution the manager faces many issue so the manger
needs to handle all these issues to attain the objective of the research. The project
manager needs to check that each of the activity is executed as per the plan and there
is no deviation from the set standards. The manger needs to maintain the manager
workbook and regularly communicate the project status (Morris, 2013).
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Closing down- The final phase of the project is to bring project to end and attain
the desired result. The project can be conclude with natural or unnatural termination.
The natural termination is when the objective of the project is met on the other hand
unnatural termination occur when the work is stopped due to certain reason (Ziek &
Anderson, 2015).
1.4 Key Elements involved in terminating projects and conducting Post Project Appraisals.
The final phase of the project is to terminate the project and starts after the
project is completed and involves action which are required for termination of the
project. The proper termination helps in identifying the experienced gain on the project
and helps in future improvement of the performance. The termination generally includes
filling project document and conducting post project evaluation to identify the efficiency
by which the project is executed. The data collected from the project will also help the
manger in future handling of the similar projects.
The post project appraisal helps in determining the extent to which the project
meets the budget, time table, and the key outcome of the project. The project appraisal
involves comparing the cost of the budget with the predetermined set budget. The
manger also check that all the task are attained within the allocated time and if not than
the reason of the variance. The appraisal procedure also include the level to which the
deliverable has met the expectation of the management. It also includes the lesson
learned from the current project and how it can be used in the future project (Argirova &
Ivanov, 2015).
TASK 2
2.1 Most appropriate organizational structure, roles and responsibilities of participants within a
project
The manager needs to build the organizational structure where there is effective
coordination between various activity and good communication within the organization.
The organizational structure provides the ways to accomplish different goals and can
also hinder or help in accomplishing these goals. The Manger can be chose both formal
and informal structure as per the requirement of the business. The A2Z Company is

indulged in construction business and the most suitable organizational structure for it is
project organization structure. In this type of structure the project manager has the sole
authority can control the unit. This helps in building effective communication within the
organization and facilitate the top level manager in decision making in relation to the
business. The A2Z Company can choose this structure as it facilitate the creation of the
project management experts which effectively handle there part of the work. This
structure also facilitate quick response from the various unit of the business and is less
complex as compared to other structure (Robichaud & Anantatmula, 2011).
The project manager is responsible for executing task and check that the work is
completed in time. The manager plan the project with the team and manages the team
in performing the project activity. The executor sponsor is the manager who
demonstrate interest in the outcome of the project and is responsible for spending
authority and resources for the project. The project sponsor is the top level manager for
the project and will examine that the project goals are being accomplished and is the
ultimate decision maker of the project. The project sponsor helps the manger in
handling various issues, problems and helps in removing conflict.
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2.2 Control and Coordinate a Project
The manager uses the control to compare the progress and helps in identifying
the deviation from the set standard and also provide measures to control the deviation.
The manager of A2Z needs to regularly check the outcome of the research and check
that the work is being conducted as per the set standard. For effective execution of the
work the manger needs to build coordination between various activities of the project.
This can be attained by creating effective communication between the various units of
A2Z Company. If the manager of the A2Z company timely ascertain the risk than it can
prevent the company from future loss. The manager can use various measure to build
control over the project such as configuration control, design control, trend monitor,
document control acquisition control and specification control. The manager of A2Z
Company has used trend monitoring to control the project. The project manager is
regularly monitoring the process of the task with cost, schedules and resources needed
against those planned. This help in identifying the deviation from the any of the set
standards and helps in timely handling the risk which are associated with the project
(Mir & Pinnington, 2014).
2.3 Project Leadership REQUIREMENTS and qualities
The effective leadership plays a key role in the success of the project. The
manager of the A2Z Company will appoint a project leader who will lead his team in
accomplishing work and guide them in relation to the work. They helps to provide
effective communication between employees and the manger and helps in avoiding
conflicts. They helps in guiding employee towards attaining organizational goals and
objective. A good leader helps in motivating the employee towards the work and
maintain the good relationship with them. The leaders also guide the employee in their
work and help in improving the outcome of their work (Mir & Pinnington, 2014).
2.4 Plan and Specify Human resources and requirements for a project
The project manager of the A2Z Company needs to hire more resources for
constructing the extra floor as the current capacity of the company is not enough to
meet the increase in the workload of the company. For the project the manger will hire

new architecture who will help in designing the layout of the building and a resource
manager who will be responsible for the availability of the resources at the workplace.
The manager will breakdown the project in different activity and allocate the task to
various team. The company needs to hire engineer, architecture, interior designer and
various other unit to handle the increased demand.
The manager of the A2Z company needs to effectively handle all the human
resources which are required for the project. As the company doesn’t has the employee
which are required for the new project so the manager needs to plan the human
resources which will be required for the new project. On the basis of the requirement the
company needs to hire the appropriate resources. The company also require to provide
adequate training to the workforce in relation to the work. The Manager is then required
to manage the employee by allocating the task on the basis of skills and competency of
the employees (Lloyd , French & Crawford, 2016).
The manager has break down the activity of the project in various part for
programming , cost planning, and monitoring or controlling the project. This the
complete representative of the detail project scope statement that specify the work to be
accomplished by the project. This helps in assessing the stakeholder in viewing the end
product of the project and helps in estimating, scheduling and tracking the lowest level
of the activity of the WBS.
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TASK 3
3.1 Project Plans and establish the Project Organization
Project Plan
Description activity Preceding
activity
Days
Arrange materials A - 2
Build walls (prepare skeleton) B A 10
Roof filling (Concrete filling) C B 10
Fixing windows D C 4
Flooring E C 3
Wiring F E 4
Plaster G F 5
Fixing doors H F 4
Paint I G 5

Furniture J I 8
Gantt chart: -
3.2 Project Scheduling, Estimating and Cost Control techniques
Project manager of the organization prepares planning including scheduling of
processes to accomplish different tasks in fixed timing. Therefore, various processes
and project activities are implemented in fixed deciding time. In addition to this, cost
incurred on each process is also determined on the basis of which further planning can
be obtained. However, segmenting work among several team members is also
presented as per their working abilities. Moreover, planning for accomplishing tasks and
different segments also defined in adequate time frame. In this regard, svereal ideas
and estimations are obtained as per which planning scheduling and varieties of decision
making process can be implemented efficiently. Along with this, various techniques are
applied for cost effectiveness and deciding pricing and scheduling to accomplish any
task to conduct programs. Apart from this, different methods are used for getting
effective coordination of each member towards job performance. Therefore, projecting
can be accomplished in proper timing and costing. Including this, excess of materials
and pricing can be managed. In accordance to this, it is useful for optimum utilization of
resources and fund at high level. Hence, planning procedure for projecting including
time scheduling and cost determination can be understood as below:-
Planning Activities Time frame Cost
Analyzing current
situation and
resources available
at workplace
Recognizing
financial tools and
business operations
for projecting
1-2 weeks 150
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Preparing strategies On the basis of
current situation,
preparing planning
procedure to follow
on
1 week 100
Implementing action
plans
By segmenting work
among employees,
organizing and
developing activities
of the organization
for implementation
2-3 weeks 250
Evaluating activities Under this activity,
analyzing
performance of
employees and
organization is
obtained.
2 weeks 100
Therefore, project planning and scheduling above mentioned activities to reach
out goals in proper timing and incurring cost effectively. It is useful for resource and cost
allocation. Including this, different ideas are generated to gain optimum utilization of
resources and fund at high level.
Cost control techniques:- As per critical analysis, control over excess of pricing
is determined. However, different techniques are applied, some of them can be
expressed as follows:-
Economic order quantity (EOQ):- It is one of the best tool to utilize cost and
resources efficiently. Therefore, economic order quantity is useful for setting price and
quantity of resources to flow in adequate manner. Therefore, on the basis of this term,
different ideas are generated to allocate resoucres and fund efficiently.
Just in time (JIT):- Under this tool, projecting can be done in proper scheduling
and deciding timing. Therefore, high level of project can be accomplished in segmented
time such as; differentiating process in proper timing to meet small goals effectively. In
this regard, it is considered as smart idea for completion of any project with effective

scheduling. However, just in time is best tool for project accomplishment and incraesing
efficiency of organization at high level.
3.3 Methods used to measure project performance
The performance of the project is generally measured by the effectiveness with
which it has obtained the desired outcome of the project. The performance is evaluated
by comparing it with the pre- determined standard and identifying the deviation from the
standard. Measuring the project performance during the project will help in providing the
ways to improve your process and procedure in the future project. The performance of
the project can be measured by the following ways-
Planned value-The manger can measure the performance of the project by
comparing the actual cost with the panned cost and find the deviation. The completion
of the project is not the only measure of the success. The success of the project is
determined if the desired outcome is achieved within the allocated resources. The
comparison can be made by comparing you’re spending on the project with the
percentage of the work completed. It helps in early identification that the work is not
attained within the allocated resources and there is certain problem with the process.
Cost performance and cost variance-The performance of the project can be
made by comparing what was your spent with the planned cost. The actual cost is
subtracted from the planned value to identify the variance in the performance. This help
the manager in timely identifying the problem and take the appropriate measures to
control it. The manager needs to consider the reason for such variance while planning
the future activity of the business.
3.4 Explain Project Change Control Procedures, evaluate the completed project
Under this process, project manager of the organization evaluates all activities
implemented in projecting. In accordance to this, procedures are applied to compare
standard and actual work performance. Including this, team members performance and
organizational structure is evaluated critically. Therefore, changes in cost cost
procedures and timing for completion of task is determined. In this regard, project
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planning and different ideas are generated to reduce excess of waste material and
implementing further action plans to create balance and bridge the gap between actual
and standard position for completion of project.
CONCLUSION
So it may be concluded from the above study that the project management is the
key for the success of the project. The proper planning of the work helps the manger to
avoid the risk which are associated with the project. They helps in timely identifying the
risk and provide appropriate measures to avoid such risk. The breaking of the project
into various task help in building coordination between the various activities and attain
the desire outcome from the project.

REFERENCE
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project management system", Trudy Odesskogo Politehničeskogo Universiteta, vol.
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Lippe, S. & vom Brocke, J. 2016, "Situational Project Management for Collaborative
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Project Management, vol. 32, no. 2, pp. 202-217.
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Perspective", Project Management Journal, vol. 44, no. 5, pp. 6-23.
Olofsdotter, G., Randevåg, L., Fakulteten för humanvetenskap, Avdelningen för
samhällsvetenskap, Mittuniversitetet & Avdelningen för utbildningsvetenskap 2016,
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but she", Gender in Management: An International Journal, vol. 31, no. 2, pp. 134-153.
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