Project Management & Planning: Key Characteristics, Budget & Risks

This report provides a comprehensive overview of project management, covering essential aspects such as project characteristics, scope statements, work breakdown structure (WBS), budgeting approaches, risk responses, and quality methods. It defines key characteristics of a project, including transparency, consistency, and flexibility, and explains the importance of a scope statement and WBS in project planning and execution. Different approaches to generate a project budget are discussed, emphasizing the importance of financial appraisal and cost considerations. The report also addresses risk management strategies, highlighting the need to identify and mitigate potential risks. Furthermore, it explores quality management methods, including project quality plans and monitoring plans, to ensure project success. The report also includes an executive summary of a project involving ABC Limited acquiring DEF, highlighting the importance of decision-making and effective work breakdown structures.

MANAGING PROJECTS

Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
TASK 2..............................................................................................................................................8
CONCLUSION.................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
The different procedural steps those are required in the management of the project in which
the required documents are being created so as to ensure the successful completion of the
project is referred to as the project planning. The documentation of the project includes the
definition of the required actions, preparation, integration and the coordination of the
additional plans with the proper execution, monitoring, controlling and the closing of the
project. The key characteristics of any project, its benefits and limitations along with the control
are described in this assignment.
The different activities that are being required to successfully manage the project within the
specified time and estimated budget are outlined in this report. The different competencies of
the project manager and the project management process are also analysed. The project
lifecycle is also defined for the successful completion of the project.

TASK 1
DEFINING THE KEY CHARACTERISTICS OF ANY PROJECT
Any project that is made is not only to do or make something rather than it is about achieving
some desired outcomes by the effective implementation of the system management approach.
There are some key characteristics of the projects which are depicted below-
Transparency- Clear and transparent communication about the cost and the deliverables with
the stakeholders and employees
Consistency- Use of the repetitive and consistent practices to deliver the quality project and
make the project a successful one
Temporary- Must has a specific start and the end time and must be terminated after it (Kerzner
and Kerzner, 2017)
Unique Deliverables- Must deliver some specific and unique service, product or desired results
Flexibility- Must be flexible enough to adapt any unique portfolios and can be changed
according to the needs
Communication Skills- Creation of a transparent and stable line of communication at different
levels of employees
Organization- Proper organization like the task prioritizing, resource allocation and estimating
budget
Problem Solving- Problem determination and taking effective steps to resolve them

Monitoring and Control- Observing the project phases and control the results
SCOPE STATEMENTS OF ANY PROJECT AND ROLE OF THE WORK BREAKDOWN STRUCTURE
The Scope Statement can be defined as the written confirmation of the results that the project
will produce at the end along with some of the assumptions which will be involved during the
project. The scope statement of a project include the following points-
Justification- Short description of the project need and outcomes
Product Scope Description- Products and services characteristics and desired result (Krähmer
and Strausz, 2011)
Acceptance Criteria- Prior conditions that must be met before delivering the project
Deliverables- Outcomes of a project like products and services
Project Exclusions- Excluded scope that will not be addressed in the project (Lewis, 2010)
Constraints- Limitations and the shortcomings of the project
Assumptions- Handling the uncertain information of the project
WORK BREAKDOWN STRUCTURE
The work breakdown structure helps in the management of the consistent planning and
effective execution of the project. The project is divided into smaller tasks within a fixed time
and cost. It reduced the complexities of the project and made the tasks independent and
measurable.

PLANNING A GANNT CHART AND IDENTIFICATION OF THE CRITICAL PATH
The plan of the project that is referred throughout its lifecycle is represented by the help of the
Project Gantt Chart and the Critical Path. Let us suppose that there are 6 tasks in the project
named from a to f and their precedence and the time duration required to complete it is
mentioned below-
TASKS TASK PRECEDENCE TIME DURATION
a - 5 days
b a 4 days
C b 2 days
d b 3 days
e c 5 days
f d 7 days
Work flow chart critical path
Critical path is – a-c-f and it will take 14 days to complete

GANTT CHART
1/6/2018 6/6/2018 10/6/2018 12/6/2018 15/6/2018 20/6/2018 27/6/2018
Task
A
TASK
B
TASK
C
TASK
D
TASK
E
TASK
F

1.4- APPROACHES THAT EXISTS TO GENERATE A BUDGET FOR SPECIFIC PROJECT BUDGET
In order to determine the feasibility and the cost benefits of the projects, it is advised by the
Pinto that the project budget must be subjected to the financial appraisal. The cost of the
different tasks of the project are being emphasised in this and an expenditure plan within the
specific time frame and schedule are prepared in this approach. Some of the elements in
consideration while the project budget developments are as follows-
Direct Costs- It involves
 the different human resource that are required in the project i.e labour
 Equipment’s and the suppliers or the materials required
 Different travel expenses
 Programs and training for the workers
Indirect Costs
 Communication and it's equipment
 Office administration materials
 Insurance and security costs
Here the control variable is helpful in monitoring the successful implementation and operation
of the project, which helps in analysing the contingency funds that covers the risks of the
business projects (Zhao, et al. 2010). There is a work break down structure, evaluation
methods, financial management and control similar to the paybacks, earned value, net present
value and the rate that returns through the internet which supports the significant flow of the
cash in the project with appropriate budget distribution. One thing to be noted hers is that all
the information should be kept secret and shared only with the people who are trustworthy for
the welfare of the project’s success.
1.5 RISKS RESPONSES AND PROJECT MANAGEMENT
The projects consists of several uncertainties and risks, according to several scholars and
experts of the different industries the more number of the risks identified in the business gives

more opportunities to share the risks and find better solutions in the business projects (Burke,
2013). Different occurrence that requires risk management strategies and effective
management is termed as risks of the projects. Further there may have risks regarding the
scope of the projects, scheduling problems, resource availability or risks regarding the
technological advancements. While the responses that can be used in the risks are simple
avoidance, mitigation, transfer of the funds and risk solutions, acceptance of the project
variables etc.
1.6 QUALITY METHODS THAT ENSURES THE SUCCESS OF THE PROJECT
There are several techniques that can be used to reduce the risks like making an effective plan
that includes diverse range of the strategical options for the project owners.
1.6.1 PROJECT QUALITY PLAN
As a rule, if the procedures and exercises that create the expectations don't stick to their own
quality gauges (process quality guidelines), at that point there is a high likelihood that
expectations not meeting the conveyance quality norms. To address all the quality necessities,
principles and quality affirmation components in an undertaking, an archive called 'venture
quality arrangement' is created by the task group. This arrangement goes about as the quality
book of scriptures for the venture and every one of the partners of the undertaking should stick
to the task quality arrangement (Kloppenborg, et al. 2011). The project quality management
consists of responsibilities of the management, control over the designs, scope requirement,
testing and QA, defect management, etc.
1.6.2 MONITORING PLAN –
A task administration design is only an archive that can be utilized to manage the execution of a
venture. Indeed, even a decent arrangement is pointless except if it is appropriately executed.
Furthermore, execution can't be legitimately determined by the arrangement except if it is
checked precisely and the genuine execution is followed against the arrangement (Walliman,
2011). The monitoring plans should consist of the acquisition control planning, specific control,
document and file security. In addition, to this, there are several other tools for maintaining the
quality like inspections, control and flowcharts, checking sheets, flow charts etc. There is also a
good role of the project teams and power distribution in the projects.

TASK 2
2.0 EXECUTIVE SUMMARY
The current project report includes all the different stages steps, processes and risk
management techniques. The report has tried to show the relevance of the various acquisition
processes and its importance with an example of ABC limited. The report has shown the
companies notion to acquire a frozen food seller with its external team which has helped them
previously. It has been found that in the project development and planning stages the role of
the effective decisions making, making proper work breakdown is also necessary and should be
recommended.
2.1 INTRODUCTION
Project management is the task which involves several stages that are necessary to make a
business successful with the proper planning and strategic implementation. The report aims at
describing the acquisition process of a company and several risk assessment, monitoring and
administration practices involved in the projects.
2.2 PROJECT SCOPE STATEMENT
The current project is intended to create a deep insight of project management stages and
processes with the example of ABC acquiring DEF so that everyone can understand the future
scope of the mergers and the risks involved in between them. The notion of ABC to acquire the
DEF will be helpful in describing the several stages involved in the management of the project
(Mirza, et al. 2013). In addition to this, the project is also helpful in showing appropriate stages
of the risks management and project life cycle. The project is estimated to be cost around
$,150,000 with approx. 20% contingency in the project which is directly related to the time
duration of the project. Further, the project study is going to be helpful for the future
researchers so that they can make required modifications with the shortcomings of the project
if any.
2.3 WORK BREAKDOWN STRUCTURE/PROJECT LIFE CYCLE STAGES
Tasks/duration 1 month 2 month 3 month 4 month 5 month
Task 1
Task 2

Task 3
Task 4
Task 5
2.4 PROJECT BUDGET
The undertaking spending plan is a nitty-gritty gauge of the considerable number of costs
required to finish extending assignments. It is considerably nitty gritty than the abnormal state
spending plan created in the Initiate Stage. The run of the mill spending plan determines costs
for staff work, materials acquisition, progressing working expenses and other direct costs, for
example, travel or preparing (Meredith, et al. 2011). The details of the project tell about the
sponsors involved and how much the project actually costs. in this stage of the project
development and management, the people involved in the case of ABC are its project manager,
sponsor and the core team members of the company.
2.5 CHARACTERISTICS OF THE PROJECT MANAGER (SKILLS AND COMPETENCIES)
For the big projects like the acquisition of the DEF by ABC has to be under the safe hands of an
effective project manager and its skilful team members. Generally, for the teams in the
projects, the staff is selected specially by the upper authorities and the board of directors of the
companies and same is the case with the ABC group (Kelley, et al. 2010).
In addition to this, the skills and firm competencies of the managers is also an essential need in
the project management tasks so that they can be managed effectively and settled with
appropriate needs and solutions (Saunders and Lewis, 2012). An effective manager has the
guts, vision, empathy, integrity, motivation, knowledge, excellence, managerial skills,
communication and relations with the effective problem-solving skills and many more. The
project manager of the ABC is selected on some of these factors and the experience he has in
the industry to serve people and make a simple project a high-profile tasks for the employees of
the company. In addition to this the manager should provide a focused directions to its team
members, have the ability to manage the resources with collaboratively working with the
people and eventually achieve the best results (Anantatmula, 2010).
2.6 PROJECT SCOPE STATEMENT

The project of the ABC group consists of several deliverables and all the essential actions that
must be included in any business deal and further accomplish all the goals and objectives of the
business. the scope statement of the current project consists of well developed documents and
proper structure with the effective team leads and manager. The statement is also helpful in
estimating the time required, costs involved, acceptance criteria, risks associated and many
more characteristics that can be helpful in understanding the details of the project. In addition
to this the scope statement may vary in running projects as the requirements with the delayed
projects generally got changed.
2.7 PHASES OF THE PROJECT MANAGEMENT
There are basically five phases of the project development cycle which are also included in the
project of ABC Ltd.
2.7.1 PROJECT INITIATION – in this stage the idea of the project has been came to know in
front of the people. The project initiation stages involve attracting the sponsors which helps in
defining the particular vision of the project and direct the company towards their goals and
objectives of the project.
2.7.2 PROJECT PLANNING – only after creating the final project plan, one can justify it to the
upper management and implement it in practice. Hence the next stages is to plan the project
and its every small stage so that there is no chance of any error in the project plan. Nowadays
the project plans are made in accordance to the technological availability, resources available
and the skills of the people (Lock, 2017). The project planning phase includes the financial plan
in ABC, resource plan, risks plan, staffing concerns, quality plan, communication and delivery
plan, and review plans etc.
2.7.3 EXECUTION PHASE – here the plans of the project actually got implemented in the
desired areas of the plotted regions. Here the actual resources of the company are spent
practically on other factors so that they can achieve the objectives. The execution phase is one
of the most important phase in the project development and implementation as it gives the
actual results from the project.
2.7.4 MONITORING AND CONTROL – every project or system after implementation requires
proper monitoring and evaluation with proper analysis of the tasks. In the ABC the monitoring