Project Management for Business: Ramboll and Bergen University

This assignment analyzes project management principles through a case study of Ramboll, a consultancy firm, and its project with the University of Bergen. The report covers key aspects of project management, starting with background principles, project evaluation techniques like Net Present Value, ...Read More

Project management for
business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Background and principles of project management ..............................................................3
1.2 project evaluation techniques ................................................................................................4
1.3 Principle behind project management system and procedure................................................6
1.4 Key elements considered while terminating project..............................................................6
TASK 2............................................................................................................................................7
2.1 Identifying most appropriate organizational structure, roles and responsibilities.................7
2.2 Control and coordinating a project .......................................................................................7
2.3 Assess project leadership requirements and qualities ...........................................................8
2.4 Plan and specify human resources and requirement for a project.........................................9
TASK 3..........................................................................................................................................10
3.1 Preparing project plan and establishing ..............................................................................10
3.2 Applying project scheduling, estimation and control technique .......................................13
3.3 Methods used to measure project performance...................................................................13
3.4 Explain project change control procedures .........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Project management plays crucial role in every organization as through this it becomes
easy for every organization to carry out overall operations in effective manner. Further, it is well
known fact that for effective management of project different type of resources are required and
by considering each resource it is possible for business enterprise to carry out operations in
effective manner (Dey, Clegg and Bennett, 2010). Further, to appraise viability of each project it
is must for business enterprise to consider the investment appraisal techniques which are net
present value, internal rate of return, payback period etc. Such techniques are effective in every
possible manner and allow business to invest funds in right project. For conducting the present
study organization chosen is Ramboll which is one of the biggest consultancy firm based in
London. At present business has received contract from university of Bergen where firm has to
transform industrial building into functional one for its arts faculty. Various tasks have been
covered in the study which involves background and principles of project management,
appraising viability of project etc.
TASK 1
1.1 Background and principles of project management
With the advancement in technology new and advanced technology has came into
existence where every business enterprise has started to work with the advanced tools for its
betterment. Further, in development of different type of technologies business enterprise has to
indulge into different type of activities (Dorfman and Cather, 2012). Absence of project
management principles may have adverse impact on business and it may become difficult for
organization to perform better. Moreover, in past companies were not able to control project
cost. Therefore, to deal with all these major issues concept of project management has been
introduced and under this discipline large number of techniques are present which involves
PERT, CPM etc. Further, five principles of project management are present which are as
follows: Project planning process: It is considered as first most important principle of project
management which is associated with organizational growth. Further, in this stage scope
of project is determined which is determined by manager of the project. Further,
objectives are set and overall activities are decided which takes place in proper sequence.
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Therefore, this principle is considered to be most important (Fan, Thomas and
Anantatmula, 2014). Initiating process: This principle highlights that project is developed of various tasks
which are complex in nature. Further, in case if project is defined appropriately then it is
possible for managers to draft outline of project for its implementation. Apart from this
during its commencement permission has to be taken from government. Execution process: By complying with this principle it is possible for project manager to
carry out project in appropriate manner. Further, it is required to determine sequence of
the activities that are followed during the execution stage. Therefore, managers have to
consider different factors for conducting project in effective manner (Fowler, Lindahl and
Sköld, 2015). Monitoring and control: This stage is also regarded to be important where project
manager has to monitor each and every activity so as to know whether they are carried
out in proper sequence or not. Further, control measures are taken if project undertaken is
not carried out appropriately.
 Closing stage: It is the last principle where information linked with completion of project
is shared with top authorities of firm and this helps in knowing whether aims linked with
project have been accomplished or not.
1.2 project evaluation techniques
The investment appraisal techniques are calculated as follows. It assists corporation to
select the right project and accordingly take decision related to investment.
Table 1: Net present value method
Years Cash Inflow Present value of 4 %
Discounted
Cash Inflow @
4 %
1 180,000 0.96 173076.92
2 180,000 0.92 166420.12
3 180,000 0.89 160019.34
4 250,000 0.85 213701.05
5 250,000 0.82 205481.78
6 250,000 0.79 197578.63
Total Discounted Cash inflow 1116277.84
Less: Initial Investments 1000000.00
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Net Present value 116277.84
 Interpretation: Technique of net present value helps in knowing the value of the proposal
where initial investment is deducted from the present value of the cash flow and it
supports in knowing the net present value of the proposal (Kumaraswamy, 2011).
Further, NPV of present project is high and positive too. Therefore, investing in this
project is feasible for firm.
Payback Period
Years Cash Inflow Cumulative frequency
1 180,000 180000.00
2 180,000 360000.00
3 180,000 540000.00
4 250,000 790000.00
5 250,000 1040000.00
6 250,000 1290000.00
Payback period in years
4.20 years
 Interpretation: Payback period supports in knowing the time period in which entire
amount of investment can be recovered (Garon, 2006). Through applicability of this
technique it has been found that amount of investment can be recovered in 4.20 years.
Further, it is representing that proposal considered will be profitable for company.
Therefore, it can be said that investment proposal is feasible for Ramboll.
Years Cash Inflow
1 180000
2 180000
3 180000
4 250000
5 250000
6 250000
Average investment 215000
Average initiative
investment 500000
ARR 43
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 Interpretation: Technique of average rate of return helps in knowing the average return
which proposal can easily earn on the invested amount. Further, by applying this tool it
has been found that projects are having good return. Therefore, by investing funds it is
possible to earn higher profits. Under this, accounting rater of return for corporation is
43% hence project will be accepted as it provides appropriate rate of return.
Reason for success of project Appropriate planning: This factor plays very important role in the success of the project
and through this it is possible to accomplish main objective of the proposal by carrying
out planned activities in proper manner (Levy, 2009).
 Effective teamwork: Every project is made up of complex activities and to carry out
range of activities proper teamwork is necessary. It can enhance coordination and can
build trust. Therefore, good teamwork is the key to success of firm.
Causes of failure
 Vagueness in aims: Sometime it may be possible that presence of vagueness associated
with team objectives. Further, it is possible that objectives of team may deviate from
actual path and before implementing any project it is necessary that aims must be quite
clear.
1.3 Principle behind project management system and procedure
Project management system is composed of large number of principles and is associated
with resource allocation so that it can provide base in implementation of project in proper
manner. Some of the key principles are as follows:
 Principles of project management states that all the tasks associated with project must be
implemented in appropriate manner. Further, no issues may come from client’s side.
 All the crucial resources such as financial, human etc must be allocated in appropriate
manner so that they can be utilized in efficient manner (Olsson, 2008).
 Further, as per project management system it is the duty of project management team to
focus on quality of work and cost reduction.
So, these are some of the most important principles of project management system and
procedure on which success and failure of entire project depends.
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1.4 Key elements considered while terminating project
At the time of terminating any specific project large numbers of factors are considered
which are as follows:
 In case when termination takes place naturally then the major cause can be natural
disaster such as infrastructure is destroyed. Therefore, occurrence of natural disaster can
be one of the main reasons behind termination (Shelley, 2015). Project can be terminated due to some other reasons also as many time it is possible that
cost of project increases due to rise in cost. Further, ineffective skills may prevent
employees from carrying out project in appropriate manner and it can act as hurdle during
implementation phase. So, these can be some of the possible reasons behind termination.
All these reasons can be considered by Ramboll so that project undertaken may not be
terminated.
Post project appraisal
After project is completed then appraisal takes place. Further, various techniques are
present such as variance analysis. By considering this method actual results are compared with
projected one. Positive variance shows favorable results and vice versa. Therefore, it is the first
and foremost duty of management to take corrective actions if project is representing negative
variance.
TASK 2
2.1 Identifying most appropriate organizational structure, roles and responsibilities
One of the most effective organizational structures is functional one which is applicable
in case of Ramboll. Further, separate departments are present where tasks of similar nature are
grouped in single department. Further, managers of every department reports to top managers
which is associated with the performance given by different departments during implementation.
It supports in proper management of project (Hobbs, 2009). In case of Ramboll, crucial roles are
project manager, construction manager, quality analyst, architecture and designer. Roles and
responsibilities are discussed below:
Project manager
Role
 To lead the department managers and giving order for implementation of the project in
effective manner
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 To provide training among workforce
 To coordinate with team members and allocate resources among them
 The project manager will perform all the task related to planning, implementations
 Project manager will initiative the project and will wind up the same with appropriate
procedure
 Project manager ensure quality of product and services and communicate the same
among team working on project
Responsibilities
 Ensuring completion of project on time
 Identifying whether project is carrying out step by step or not
 Resolve conflicts taking place in team
 Monitor the process of project implementation and take immediate actions, if necessary.
Apart from this, other managers like quality analysis provide detail information related to quality
to project manager. In the same way architecture prepare layout of the project and accordingly
suggest the structure. In addition to design complete the work of finishing such as decoration.
Similarly, adoption of function structure will assist all managers of RAMBOLL to work with
integration. It leads to reduce overall time taken in completion of project and deliver better
quality of services to client. Thus, all responsible managers will provide guideline to employees
working under them and support successful completion of project.
2.2 Control and coordinating a project
Different methods are present which are undertaken during project implementation phase.
Such techniques are as follows: Gantt chart: it helps in knowing the proper sequence in which activities of project are
carried out by the project team. Further, it supports in knowing the time period in which
entire project can be completed easily and in appropriate manner (Leach, 2014).
 WBS: Work breakdown structure is an effective technique where entire proposal is
segregated into different parts. Further, it supports in knowing whether entire project is
being carried out as per plan and is implemented properly. By undertaking this tool key
resources such as financial, human can be used in appropriate manner. Moreover, through
this Ramboll can utilize all the resources in effective manner.
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2.3 Assess project leadership requirements and qualities
Different roles and responsibilities have to be carried out by individuals as per nature of
project and it supports in accomplishment of desired aims (Saadé, Dong and Wan, 2015).
Considering the present scenario Ramboll has undertaken the project of renovation of university
building of Bergen, Norway. Therefore, to carry out project in appropriate manner project
manager should have unique qualities which are as follows: Time management: It is the first and foremost duty of project leader of Ramboll to
schedule all the activities in accordance with proper time. Further, it is required to ensure
that project can be completed on time. Duration of the entire project is from
28thSeptember 2015 to 8thof January 2016. Resource planner: Project leader must be efficient enough in planning for the key
resources and main stress must be on optimum utilization. Through this entire project
associated with renovation can be carried out in appropriate manner. Planning and defining scope: Before implementing project leader must plan all the
activities in proper sequence as per requirement (Turner, 2014). Further, defining scope
of the project is also must. As per the present case project leader must plan for the
renovation and can define the scope so that all the objectives can be accomplished easily
as per plan.
 Risk analysis: It is well known fact that every project is adversely affected due to risk
associated with it. Further, project leader has to determine risks in advance and must take
corrective actions for the same. By dealing with all the risk linked with renovation project
efficiency of the entire project can be enhanced easily.
Therefore, these are some of the key skills required by project leader so that
implementation of project is easy and it is for the betterment of the company.
2.4 Plan and specify human resources and requirement for a project
For successful implementation of project associated with renovation different type of
resources are required which are as follows:
Human resource
PERSONNEL RESOURCES
Roles Names
Project Manager Anubhav
Architecture Insiya
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Construction manager and Team Tanu
Designer Pushpa
Quality Analyst Nivadit
Financial resource
FINANCIAL RESOURCES
Resources Estimated costs (£000)
Personnel Resources 220
Equipment costs 480
Total 700
Equipments
EQUIPMENT RESOURCES
Equipment’s Estimated Costs (£000)
Construction materials 200
Computers and software’s 150
New furniture’s 30
Office supplies 20
Total 400
Responsibility assignment matrix of the University building project
WBS element Project
team
membe
rs
R-Responsible
A- Accountable
C-Consulted
I-Informed
Anubhav
[Project
Manager]
Insiya
[Architecture
]
Tanu
[Constructor
manager]
Pushpa
[Designer ]
Nivadit
[Quality
Analyst]
1.1
Determination of
project aim and
objectives
R A C C
1.2 Planning of
Project
R I C R A
1.2.1 Designing of R C I A
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entire renovation
project
1.3 Implementing
the planned
strategies
R I
1.3.1
Accumulation of
essential resources
R I A I
1.3.2 Application
of project plan
R A A
1.3.3 Renovation
of building
R C I R I
1.4 Controlling
the project
R A R I
1.4.1 Monitoring
the activities
R A C I R
1.4.2 Measuring
the performance
R C A I R
1.4.3 Execution
1.4.4 Project
closer
R I
From the above responsibility assigned matrix it can be said that project manager of the
company named Ramboll has assigned roles and responsibilities to every individual associated
with the project. Further, each and every member has its own significance in carrying out the
renovation tasks in proper manner. Apart from this, with the help of above table it has been
identified that project manager is responsible for each and every activity.
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TASK 3
3.1 Preparing project plan and establishing
Task
Mode Task Name Duration Start Finish Predecessors
1 Construction project of
RAMBOLL company 75 days Mon 9/28/15 Fri 1/8/16
1.1 Assessing aims and
objectives of the project 5 days Mon 9/28/15 Fri 10/2/15
1.2 Preparing Plan for the
project 10 days Mon 10/5/15 Fri 10/16/15
1.2.1
Designing entire
range of renovation
project
10 days Mon 10/5/15 Fri 10/16/15 2
1.3 Implementation of the
planned strategies 35 days Mon 10/19/15 Fri 12/4/15
1.3.1 Gathering the key
resources 15 days Mon 10/19/15 Fri 11/6/15 4
1.3.2 Application of
RAMBOLL Project plan 10 days Mon 10/19/15 Fri 10/30/15 4
1.3.3 Renovation of
Building 20 days Mon 11/9/15 Fri 12/4/15 6
1.4 Controlling project 25 days Mon 12/7/15 Fri 1/8/16
1.4.1 Monitoring all the
activities 5 days Mon 12/7/15 Fri 12/11/15 8,7
1.4.2 Performance
measurement 5 days Mon 12/14/15 Fri 12/18/15 10
1.4.3 Execution 8 days Mon 12/21/15 Wed 12/30/15 10,11
1.4.4 Project closure 7 days Thu 12/31/15 Fri 1/8/16 12
Gantt chart
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Network diagram
After applying project management tool, scheduling of the renovation project has been
carried out in proper manner. Further, with the help of Gantt chart proper information has been
delivered linked with start and finish date of the project. Apart from this network diagram has
supported in knowing the range of activities along with project flows. As per the case provided
RAMBOLL has developed proper project plan with the motive of renovation. Further, the
estimated time period for project completion is 90 days or 3 months. Further, project will start
from 28th Sep 2015 to 8th Jan 2016. Critical path for the project is 2-4-6-8-10-11-12-13 which is
75 days. So, this time period of 75 days is required by project manager to carry out project in
appropriate manner.
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3.2 Applying project scheduling, estimation and control technique
Project scheduling is regarded as the basic term of milestone, project listing and tasks
which are required for project (Chandler and Arizona, 2013). Further, it is the responsibility of
project manager to define proper tasks so that scheduling can be carried out. Different effective
ways are present with the help of which project manager can measure project cost which is
necessary when carrying out entire project such as crashing and PERT.
PERT and crashing
They are regarded as statistical tool which supports in knowing the key tasks associated
with the project. Further, it provides idea regarding the time period in which project can be
completed. On the other hand, crashing is also effective technique which highlights extra
expenditure through which time required for completion of project can be reduced. Here, crash
time is minimized with active efforts of project manager. However, this tends to incur extra cost
but aid to finish the time on right time. It proves to be effective to utilize limited financial and
physical resources of corporation. Crashing is the technique of PERT through which
management find scope to reduce or merge two or more activities into single one. Apart from
this, PERT is the effective techniques wherein flow chart of all project activities is prepared align
with time line. It provides support to project manager in allocating resources and other task to all
memebe4rsa associated with project. In addition to this, Gantt chart and work break down
structure are effective methods that leads to control cost as well as time
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The above mentioned diagram is showing work break down structure so that accordingly
project will be completed in stipulated time span.
3.3 Methods used to measure project performance
Through project management cycle it is possible to modify and maintain the data
associated with assets of project in proper manner. Further, through this cycle RAMBOLL has
determined different resources which are required for undertaking the project and it takes into
consideration equipment, human resource etc. Further, through this cycle objectives of the
project can be known and they are effective enough of comparing actual performance against the
aims set.
Two effective techniques are present through which performance of project can be
measured and they are as follows: Earned value analysis: This technique assists in knowing the time required for
completion of project and the expected cost of overall project. Further, main advantage of
adopting this method is that it assists in analyzing the entire project at different
parameters (Methods of project evaluation. 2015). This aspect helps project manager to
analyze that whether all pre-defined criteria are met or not. Thus, mainly it considers
three aspects such as cost, time and work to be done. It can be critically evaluated that
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earned value analysis does not lay emphasis on quality aspect. Thus project manager can
take actions in the same manner.
 Gantt chart: It is considered as one of the most effective approach of evaluating project
and with the help of this method it is possible for project manager of RAMBOLL to
know the progress of the tasks as per their deadline. With the help of Gantt chart clearly
link is shown among different project activities. It assists project managers that which
activities will be started at first and which will be end up. This leads to eliminate or
merge two or more activities thereby overall time taken to implement project can be
reduced to a great extent.
Considering the present project technique of Earned value analysis can be applied by
manager of RAMBOLL to complete the project on time and as per cost. This proves to be
effective in assessing cost and time require to implement a specific project. It enables
corporation to analyze values and accordingly select the right project for achiveing long as well
as short term objectives.
3.4 Explain project change control procedures
The following diagram is showing information related to change control. This structural
process helps project manager to assess the change and according bring modification in the
process of project completion-
(Source: The Change Control Process, 2016)
Project change control procedure considers series of stages which are as follows:
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Illustration 1: Change control process

 Identification of issues- In the first stage manager of RAMBOLL should determine
change request by knowing the reason which are affecting entire range of activities. The
issue can be related to time management, use of resources and other related. Assessing problem-In the second stage manager should determine suitability of change
request so that duration of project can be known (Shelley, 2015) Under this stage
problem is assess properly and causes behind the same will be identified with presence of
project manager. Approval of change request-In the third stage analysis of change request must be
undertaken so that its impact can be known. According to the third process project
manager approve change request and work upon the same in order to complete all
activities in an effectual manner. Implementing change After analyzing the change request it must be sent to the board of
directors for approval. At this stages, project manager will actual implement change. For
example if there was issue related to time management then more people will be added to
a project activity.
 Follow up-In the last stage closure process must be undertaken so that expected
outcomes can be offered to clients. After implementation of change, management of
corporation continuously follow up on project activities in order to avoid occurrence of
such kind of issues.
CONCLUSION
The entire study being carried out has supported in knowing the significance of project
management. Further, through project management tools such as PERT, Gantt chart it is possible
to carry out the entire project in appropriate manner. Further, project of renovation can be carried
out in appropriate manner by considering all the activities as per plan and they can support in
accomplishing long term goals along with objectives. Apart from this, for measuring project
performance technique such as earned value analysis is effective and overall effectiveness of the
proposal can be known easily through this.
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REFERENCES
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Dorfman, M. S. and Cather, D., 2012. Introduction to risk management and insurance. Pearson
Higher Ed.
Fan, Y., Thomas, M. and Anantatmula, V., 2014. A Longitudinal Study of the Required Skills of
Project Managers. The Journal of Modern Project Management. 1(3).
Fowler, N., Lindahl, M. and Sköld, D., 2015. The projectification of university research: A study
of resistance and accommodation of project management tools & techniques. International
Journal of Managing Projects in Business. 8(1). pp.9–32.
Garon, S., 2006. Space project management lessons learned: a powerful tool for success. Journal
of Knowledge Management. 10(2). pp.103–112.
Hobbs, P., 2009. Project Management. Dorling Kindersley Limited.
Kumaraswamy, M., 2011. Editorial: integrating infrastructure project management with its built
asset management. Built Environment Project and Asset Management. 1(1). pp.5 – 13.
Leach, L. P., 2014. Critical chain project management. Artech House.
Levy, B., 2009. Legal Project Management: Control Costs, Meet Schedules. Manage Risks, and
Maintain Sanity.
Olsson, R., 2008. Risk management in a multi‐project environment: An approach to manage
portfolio risks. International Journal of Quality and Reliability Management. 25(1). pp. 60
– 71.
Saadé, R. G., Dong, H. and Wan, J., 2015. Factors of Project Manager Success. IJIKM, 10.
pp.12-15.
Shelley, A.W., 2015. Project management and leadership education facilitated as projects.
International Journal of Managing Projects in Business. 8(3). pp. 478 – 490.
Turner, J. R., 2014. The handbook of project-based management (Vol. 92). McGraw-hill.
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<https://www.chandleraz.gov/Content/PM000PMMethodologyGDE.pdf>. [Accessed on
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Methods of project evaluation. 2015. [PDF]. Available through:
<http://ocw.mit.edu/courses/nuclear-engineering/22-812j-managing-nuclear-technology-
spring-2004/lecture-notes/lec09slides.pdf>. [Accessed on 28th Dec 2015].
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<http://pm-foundations.com/2011/06/16/pm-foundations-%E2%80%93-the-change-
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