SIM 335 Managing Projects: Concrete Masonry Corporation Analysis

This document presents a detailed solution to a case study involving the Concrete Masonry Corporation and their project to transport pre-stressed concrete assembly machines to Eastern Europe. The solution covers various aspects of project management, including an explanation of the four stages of the project life cycle (conceptualization, planning, execution, and closure), a discussion of project scope and its importance, and the plotting of AON project network diagrams with critical paths and durations for three different projects. It also defines cost appraisal methods such as NPV and payback, identifies and assesses three major risks (technical, execution, and contractual/legal), and outlines the purpose of quality audits and project monitoring and evaluation (M&E). The case study analysis includes a situation summary, conceptualization (project scope, team structure, milestones), planning and execution (project priorities, work breakdown structure, monitoring and control), cost appraisal, risk management, and closure considerations. The document emphasizes the importance of quality management and continuous improvement throughout the project lifecycle.

SIM 335 - MANAGING PROJECTS
Lecturer: Yannis Smirnis
Student: Nguyen Minh Sang

TABLE OF CONTENT
TASK 1. THEORIES 3
1. List and explain the four (4) stages of the Project Life Cycle, and discuss their
importance. 3
2. Describe and explain the importance of the project scope 3
a. What is the scope of a project and why is it essential 3
b. How would you define the scope of the concrete Masonery Corporation case
study? 4
3. Plot out an AON project network diagram for three projects and show their critical
paths and durations 4
a. Project A 4
b. Project B 4
c. Project C 5
4. Define the following cost appraisal methods and describe their benefits. 5
a. NPV 5
b. Payback 5
5. Identify three risks and how you would have assessed and managed these risks on
the Project in Task 2 6
6. Outline and explain the purpose of Quality audits. Identify the reasons why such
methods (Project evaluation, Monitoring and Control) would you introduce to ensure this
Task 2, ProjectProject (Concrete Masonry Corporation), is completed successfully 6
a. Quality audit 7
b. Project monitoring and evaluation (M&E) 7
TASK 2. CASE STUDY 8
1. Situation summary 8
a. Situation summary 8
b. Project life cycle 8
2. Conceptualization 9
a. Project scope 9
b. Project team's structure 9
c. Major milestones 10
3. Planning and execution 11
a. Project priorities and trade-offs 11
b. Work Breakdown Structure 12
c. Monitoring and control 13
Project monitoring 13
Project quality management 13
d. Cost appraisal 14
e. Risk management 15
4. Closure 16
REFERENCE 17
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TASK 1. THEORIES
1. List and explain the four (4) stages of the Project Life Cycle, and
discuss their importance.
The project life cycle describes the stages in a project's life. It consists of 4 stages that are
usually known as (1) conceptualization, (2) planning, (3) execution, and (4) closure.
● Conceptualization: as the name suggests, this stage involves clarifying the aims and
basic requirements for a project. The project's scope, relevant resources (personnel,
budget, technologies, etc.), major milestones, and key stakeholders are defined.
● Planning: in this stage, the project's specifications, schematics, timelines, and other
detailed plans are generated. The project components are broken down to form work
packages, individual tasks are allocated, and the procedure all the way to completion
is explicitly defined.
● Execution: in this stage, the plan is executed and the work packages are done. The
project managers in this stage follow the process, tracking the completions of the
tasks, to ensure that they are in conformity with the plan.
● Closure: this stage happens when the completed project is given to the client, the
resources are released to their initial positions, and the project is closed. The project
managers also need to produce a report including justification of the results, the
lessons learned, and the recommendations for future projects.
Each stage of the project life cycle serves a different purpose with different importance. The
first stage allows the organization to make sure that a project is suitable and attainable. The
second and third stages create a scientific and systematic plan to control and follow the
project. Finally, the last stage ensures the project’s results are acceptable and provides
invaluable insights for future uses.
2. Describe and explain the importance of the project scope
a. What is the scope of a project and why is it essential
The project scope refers to every aspect of a project, including both work content and
outcomes to be achieved. Project Scope Management is the process to guarantee that the
project contains only the necessary work (PMI, 2017). It is important to note that the word
used here is “necessary”, meaning that there can be unforeseen situations and unplanned
work is required. Surprises occur, and project scope management manages scope
modifications to ensure that the project remains on schedule and within budget (PMI, n.d.).
Having a well-established scope brings many benefits to the project management team. One
of the most obvious benefits is that a good scope enhances project understanding through
visualization (Indeed, 2023). This visualization helps the team to engage, plan, control, and
track a project easier.
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● Engage: a well-defined scope allows the project’s general understanding to every
team member. They would understand the workflow, their roles and contributions, and
the importance of their jobs, leading to higher engagement.
● Plan: a good scope also sets out clear result expectations and boundaries, thus making
planning easier. Project managers can base on the scope to design the plans that are
effective, in budget, measurable, attainable, and more.
● Control: with such a scope, project managers can always control projects easier by
comparing if any activity is out of boundary or does not meet requirements. They can
also based on the scope to make plans and execute necessary alterations.
● Track: finally, a good visualization of the project allows project managers to be fully
aware of the project progress. They will know what activities are on time and are late
so adjustments can be made.
b. How would you define the scope of the concrete Masonery Corporation case
study?
Please refer to the TASK 2: CASE STUDY of this report.
3. Plot out an AON project network diagram for three projects and
show their critical paths and durations
a. Project A
The duration of the project is 32 days, and the critical path is A - B - D - G - I - K - L
b. Project B
The duration of the project is 28 days, and the critical path is A - C - F - H - J - K - L
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c. Project C
The duration of the project is 25 days, and the critical path is A - B - C - F - H - J - K
4. Define the following cost appraisal methods and describe their
benefits.
a. NPV
Net present value aims to calculate the total tradeoff between the value a project brings and
the value it requires to be done. It does this by taking the difference between the total inflow
(benefits) and total outflow (resources requested) of a project, and all amounts are discounted
to the present. A positive difference means the project generates more benefits and is worth
being implemented, and vice versa. The NPV formula is:
● initial investment required for the project𝐼0
● net cash flow (positive or negative) in period t𝐹𝑡
● required rate of return𝑟
● inflation rate during the period𝑃𝑡
The NPV method provides multiple advantages to initial project evaluations. First, it
considers the discounted rate of future cash flows, making the numbers and the calculation
relevant enough to be used in the present. Second, it provides concise information about a
project’s trade offs so that decisions are made easier. It also simplifies the project evaluation
method since every benefit or disadvantage is calculated as a monetary value. This makes the
continuous computation of a project’s NPV more convenient in case of irregularities.
b. Payback
Payback method can somewhat be understood as a “break even” method because it estimates
the amount of time a project needs to recover the initial investment. This makes project
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comparison easy because given the knowledge about time value of money, organizations
should choose the projects that have shorter payback time.
The payback method provides project managers with some important benefits. First, the
payback method is easy to compute and use, even for non-professional project managers,
hence it may be suitable for small and simple projects. Like the NPV, this method also gives
the users a quick but adequate view about a project’s liquidity, that means for how long
investments can be taken back. Project managers can base on this result and the
organization’s financial requirements to reduce financial problems. For example, even if
project A brings better benefits in the long run, the payback period of project B is shorter, and
the company is having maturing debts, then project B can be chosen.
5. Identify three risks and how you would have assessed and managed
these risks on the Project in Task 2
The three major risks that will be assessed in the case study (TASK 2) are:
● Technical risk
● Execution risk
● Contractual or legal risk
6. Outline and explain the purpose of Quality audits. Identify the
reasons why such methods (Project evaluation, Monitoring and Control)
would you introduce to ensure this Task 2, ProjectProject (Concrete
Masonry Corporation), is completed successfully
Quality management is an important factor of any project (Chugh, 2023). A well-established
management plan ensures that a project team consistently provides high-quality products and
services while saving resources. (Adobe, 2022). The PMBOK suggests that a complete
quality management system should include 3 components. They are plan quality, quality
assurance, and quality control (PMI, 2017).
● Plan means identifying quality requirements and documenting how compliance is met
● Control means implementing, monitoring, and recording the results of the “plan”
● Assurance” suggests auditing the “plan” and the information gathered from “control”
to ensure the use of suitable quality standards and operational criteria
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a. Quality audit
Quality audit is a tool used in quality assurance (PMI, 2017). It examines and documents
systematically and independently (may be conducted by a third party) a project’s quality
management system and makes sure that this system provides acceptable results. Quality
audit also facilitates positive changes to project implementation. If properly used, it provides
project managers with the following advantages:
● Identify the good (best) and bad practices of quality management
● Identify gaps in the implementation of the quality “plan”
● Share and apply practices proven to be successful in similar projects or organizations
● Proactively improve the project’s processes and ensure continuous improvement
b. Project monitoring and evaluation (M&E)
Monitoring is the frequent observation and recording of actions taking place. It is the practice
of regularly gathering information on all parts of the undertaking project. Evaluation means
from the data gathered, judgements are made regarding the efficiency and effectiveness of the
activities taking place in that project (Otieno, 2000).
M&E, besides ensuring the conformance of a project, can be used to outline paths to initiate
change at various levels. Project managers are shown efficiencies and deficiencies by
tracking progress against specified objectives and determining what changes should be made
to a project. M&E, thus, articulates the various external and internal factors that can influence
project results and aids in responsibility, evaluation, and effective decision making (Muyuka,
2015).
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TASK 2. CASE STUDY
1. Situation summary
a. Situation summary
The Concrete Masonry Corporation is a company changing to survive in a dynamic market.
Thanks to globalization, the company now wants to seek business opportunities in areas that
previously it could not due to geological disadvantages.
The first step to competition is transporting 8 pre-stressed concrete assembly machines and
related equipment to eastern Europe. The site and means of transport have been selected, but
details about the weather conditions nor associated laws are yet to be known. The appointed
project manager is Kevin Lewis, an engineer with enough technical expertise to handle
machine installation. He is also given a team of 5 dedicated and competent assistants to work
on the project. It is expected that the project will take 6 months and a budget of £900,000.
b. Project life cycle
The project life cycle allows an organization to determine a project's timeline and needs,
concentrating on when, what and how resources are needed. It is also a useful tool for
visualizing the activities and the challenges arising throughout the course of a project (Pinto,
2015, p.14). Figure 1 demonstrates the life cycle of The Concrete Masonry Corporation’s
transferring project.
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2. Conceptualization
a. Project scope
What included in the scope are identification of the workflow and detailed works, required
resources, outputs, and expected output qualities (Pinto, 2015, p.146). The scope of a project
is the necessary work to produce a project's deliverables (PMI, n.d.).
The scope of a project is usually briefed and documented in what is called a “scope
statement" (Lutkevich, 2021). This statement should include the project's objectives,
deliverables and their standard, major milestones, costs, and timelines. Below is a brief scope
of the project from which Kevin Lewis should dig deeper.
● Objectives: Transferring 8 (eight) pre-stressed concrete assembly machine and
ancillary equipment to a selected site in eastern Europe
● Personnel: Kevin Lewis as the project manager and 5 internal assistants
● Cost: £900,000 (budget)
● Timeline: 6 months (October 2022 through March 2023)
● Deliverables: All equipments being successfully transfer to the site, a final report, a
project closure statement
● Scope of work: (1) Transport the equipment from the warehouse to the loading port,
then to the discharging port and to the selected site. (2) Do customs clearance at both
ports. (3) Preview, project, and suggest solutions for other legal issues. (4) Work with
the carriers, the authorities, and others involved. (5) Check the equipment in advance
and after the delivery to make sure their conditions remain the same. (6) Other tasks
related to transportation.
● Not scope of work: (1) Installation of the equipment at the selected site. (2) Facilitate
the buildings at the site. (3) Other issues arise after the project closure statement has
been confirmed by higher managers.
b. Project team's structure
The project team is made up of 6 people from the organization. A team structure should be
made prior to the project's start to define the members' roles and responsibilities. The figure
illustrates the team members and what they should be responsible for.
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c. Major milestones
The major milestones in this project are developed and plotted in an AON network diagram
to identify their dependencies. This is a form of precedence diagramming that employs boxes
and arrows to represent scheduling activities in a logical succession. Each node is tagged with
a letter that corresponds to a project activity on the schedule. It allows the project team to
visually track progress and assess the impact of completing tasks early or late. A report by
Yanita et al. (2020) showed that AON network diagram increases project efficiency by 35%.
To complete the project successfully, the team must sit together to discuss and break down
the project into component activities. These are the actual milestones that can be used to
measure the project progress realistically. The table suggests a set of major milestones for the
project.
Tasks description Precedent Time
A Hold meetings to clarify the project's scope - 3d
B Visit the selected site to
- examine its weather conditions during the planned shipment
- meet the local authorities for legal instructions on the
shipment
A 2d
C Work with the authorities for legal instructions on exporting A 10d
D Summarize and document the requirements (technical,
financial, etc.)
B,C 5d
E Hold meetings to require the allocations of these resources D 10d
F Contact the forwarding party (carriers) and make contracts E 7d
G Check and document the equipment conditions (1st) E 2d
H Truck the equipment to the loading port & do customs G 5d
I Check and document the equipment conditions (2nd) H 2d
J The vessel (ship) departs I 40d
K The vessel arrive, check and document the equipment
conditions (3rd)
J 2d
L Do customs clearance in the discharging port I 2d
M Truck the equipment to the selected site K,L 10d
N Check and document the equipment conditions (4th) M 2d
O Project report and project closure statement N 7d
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The figure demonstrates a diagram developed from the milestones that is useful in project
monitoring. The critical path of the project is A-C-D-E-F-I J-K-M-N-O, and the expected
duration for the project is 103 days.
3. Planning and execution
a. Project priorities and trade-offs
To judge the priorities of a project, we need to understand 2
things, its constraints and why the project is important.
The most common model to evaluate a project quality is the
triple constraints model. It includes the factor of Cost, Scope
of work, and Time. Simply understanding, if a team wants to
complete a project faster (time), they can either reduce the
scope of work or spend more, or make adjustments to both of
them. Project managers have to carefully calculate, plan, and
execute plans to find the “harmonious point”, the point where all factors are reasonably dealt
with, and all stakeholders are somewhat satisfied (Ecampusontario, n.d.). They have to
manage the constraints in a way that is most suitable to the organization’s wills.
Judging the current situation at The Concrete Masonry Corporation, it is worth noting that
this project is an effort to change and survive. The company was “forced to bid on jobs
previously thought to be out of their geographical area”. Because of this, the project’s scope
of work is the most important, followed by time, and then cost.
The transporting of these machines to the site (scope) is most important to the business’s
survival because it creates a competitive advantage. The cost of transportation is significantly
reduced, and the company will also have a stable and affordable supply for sales. This project
should proceed soon because competitor companies may be on their way, and there may be
some delays in the timelines. Money is really the least important factor here, the company
should consider paying reasonably more to get the work done if needed.
In summary, when making trade-off decisions, Kevin Lewis and his team should bear in mind
that their ultimate goal is completing the scope of work. The second factor to be focused on is
time, and the third is cost. That means when the scope of work is threatened and either money
or time can be used as a solution, it should be money.
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b. Work Breakdown Structure
The PMBOK (PMI, 2017) defines Work breakdown structure (WBS) as “a deliverable-
oriented hierarchical decomposition of the work to be executed by the project team to
accomplish the project objectives and create the required deliverables”. It helps create an
objective, reasonable assessment of the resources necessary and gives a framework for
assigning tasks and responsibilities to employees (Organ, Bottorff, and Watts, 2022).
To implement this project successfully, the team should based on the AON network diagram
to create a WBS containing the detailed activities of each phase. The project managers can
also use this WBS as a reference to monitor project progress. This, especially, is important to
the assistant being in charge of specialized tasks. They should be the main contributor in the
building of their specific tasks’ WBS.
The figure below illustrates a potential WBS for the activity F (contact the forwarding parties
and make a contract). As we see, the activity F is divided into smaller jobs, and those jobs are
divided further all the way until the tasks are specific and understandable.
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