Project Management Report: Impact of Schedule Changes & Cost Variance

This report provides an executive summary and detailed analysis of a project management case study centered around ProCon Services Australia and the Vella IT Office Fitouts project. The report examines the impact of schedule changes and cost variances due to the departure of the project manager and subsequent delays. It discusses four key elements: schedule variance, cost variance, the need for a new project manager, and the importance of a positive team environment. The report analyzes the project's initial schedule, actual progress, and financial spending, highlighting the effects of poor planning and leadership. Furthermore, it emphasizes the importance of gathering critical information, such as schedule plans and cost incurred, for effective project management. The report concludes with recommendations for hiring more labor, completing the first two floors, improving team dynamics, and adopting motivational strategies to enhance employee performance and project outcomes. This analysis is crucial for understanding the challenges of project management and implementing effective solutions.

PRINCIPLES OF PROJECT
MANAGEMENT

EXECUTIVE SUMMARY
The present has been based on project management that will describe on how overall
project is impacted due to change in schedule. Also, it described variance in cost due to delay in
projection. Moreover, in this report, it discussed the elements that impact on working and
behaviour of employees is also unregenerated. This shows the impact on project due and final
outcome. There are many things that is described in this report related to project management.
This would help to control effective management plan. Present plan would be based on
ProCon services Australia; this is a project management consultancy. ProCon already existed
with Vella IT office Fitouts of a medium rise office building in a Sydney suburb.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
DISCUSSION OF FOUR KEY ELEMENTS ................................................................................3
RECOMMENDATIONS ................................................................................................................1
CONCLUSION ...............................................................................................................................1
REFLECTION.................................................................................................................................1
REFERENCES................................................................................................................................2
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INTRODUCTION
Project management plan is the process or guideline that should be defined in the early
stage of a project that helps to accomplish the task or aims of the work. This would help to
control the effective management plan. Present plan would be based on ProCon services
Australia. The aim of this present project is to tracking the proper records of all functions and
building the team behaviour and team building among employees.
Project manager is the most important part in the project management to build-up the
team spirit and strength (Binder, 2016). The project manager of this company, Tony Faultier
suddenly left Fitouts and got engaged with another overseas company. Vella IT office needs to
take up the new project manager to manage work in effective manner or to implement project
plan in systematic manner for growth.
As per the analysis of the company situation. They fail to perform the project planning
due to unplanned structure of duties and goals. It is the responsibility of Vella IT Office fitouts
to accomplish work in proper and effective manner. Out off, which control the best possible
action plan and also holds the best possible manner. Such as
Overview of the project has defined that company needs to hire best project manager in
order to full fill the best management goals. Overall, activity including furnishings, plumbing,
electrical and data and telecom infrastructure. This functional task that helps to control the best
possible action plan or growth.
On the basis of my observation, Tony Faultier has left the office early while project was
still in progress (Budu, 2018). The main reason behind the failure of project is lack of project
execution, planning, lack of confidence between employees or workers. Improper strategies etc.
He was not a good leader at any level of point. This affected the overall activity where the plan
was supposed to start from 1st March and to be completed on 30 June.
But due to lack of coordination in planning, this project was started on 1st May. Due to
the late exception of process. Besides, the schedule states that work on the ground floor should
be completed, the ground floor 50% completed and second floor is also completed by 50%. It has
been found that ground floor was completed by only 75%, and 25% was still incomplete. Ground
floor was 25% completed as well as second floor. And top floor was completed by 50%. As per
the considering data so far, only $675k had been spent on the overall fitout.
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DISCUSSION OF FOUR KEY ELEMENTS
From the current scenario, it has been identified that project has been delayed by 2
months.. But the top floor was 50% completed which was ahead of the developed schedule
(Harrison and Lock, 2017).
Here, the total cost incurred was $675k which was not even half of the estimated budget,
that is, $1.2 million. Due to delay in project, there was a severe impact on schedule as well as
cost.
This can be analyzed by calculating the value of schedule variance that is as follows:-
Actual staring time Project initially started Variance
1st March 1st May 2 Months
From the above analysis, it was identified that there had been delayed by two months.
Due to this, the activities that were planned further got also impacted and delayed. This was the
main reason why completion of project has not been done in given time.
In every project, cost and schedule are interrelated to each other. This means that change
in one will automatically impact other (Heldman, 2018). Now, along with schedule, cost
variance must also be evaluated.
In context to the above project, the total budget was $1.2million. But only $675K was
utilized.
Thus, the difference calculated was:
$1.2M- $675k= $525k.
Therefore, it is stated that overall budget has not been utilized. This hampered the project
as well as the completion time. Also, it was evaluated that budget had not been utilized in proper
way. This means till schedule date, budget spent was low as compared to actual spending
(Walker, 2015).
Task Name Duration Start Finish
Planning 10 days Mon 9/24/18 Fri 10/5/18
Development of Project
Initiation Document 5 days Mon 9/24/18 Fri 9/28/18
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Determining resources
of project 2 days Mon 10/1/18 Tue 10/2/18
Formulation of goals
and objectives 2 days Mon 10/1/18 Tue 10/2/18
Setting deadlines 3 days Wed 10/3/18 Fri 10/5/18
Develop 4 days Mon 10/8/18 Thu 10/11/18
Conducting meeting 2 days Mon 10/8/18 Tue 10/9/18
Collection of data 2 days Wed 10/10/18 Thu 10/11/18
Evaluate 5 days Wed 10/10/18 Tue 10/16/18
Monitoring and control
of project 3 days Fri 10/12/18 Tue 10/16/18
Checking of quality 2 days Wed 10/10/18 Thu 10/11/18
Closure 3 days Wed 10/17/18 Fri 10/19/18
Evaluation of project 1 day Wed 10/17/18 Wed 10/17/18
Areas of modification 2 days Thu 10/18/18 Fri 10/19/18
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Figure 1: Network diagram
The new project manager has been appointed and is in charge of whole project. So, he
requires the entire information related to project. It is important for manager to gather and collect
more information about project so it becomes easy to plan for further activities and completing
project in given (Kerzner and Kerzner, 2017). Moreover, it will help manager in allocating
resources and assigning task to employees. Besides this, info will give an insight to manager
about in which part of building is lacking behind and what improvement can be done and how
work can be process in regular time interval.
In order to analyze the status of project briefly additional requirement or information is
described below:-
Schedule plan- The manager requires this in order to get time plan of overall project.
This information will help in finding out how activities was schedule and what next thing has to
be done. Furthermore, it will give an insight to manager that how many workers was involved in
completing one phase and what roles they were assigned.
Cost incurred- This is the most crucial information that is required by manager. With
this manager will be get a brief overview that how much cost has incurred and what was the
required one. Along with this, manager will be able to analyze in which floor cost has incurred
and where it is utilized (Kerzner, 2018). By using this information manager will be able to
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allocate and distribute the remaining budget as per schedule. It will also be useful in comparing
the cost with actual time.
Time involved- it is another important information that is required by manager. Here, he
or she will be able to compare the actual time with schedule. Moreover, it will make it easy in
developing the further activities (Verzuh, 2015).
Organizational Zoo model
As per the policy of Vella IT Office, Tony Faultier was the project manager who recently
left office in middle of this project. Due to which, many issues or challenges was arrived. As per
the model of organizational behavior. It always needs to introduce new motivational activities for
employees. On the contrary, employees always looking for good guidance or level of work
which means they need a good working environment or subordinates. As per the observation
process. Vella IT Office outfits require introducing or to implement the needs of good behavioral
theories (Klein, Davis and Kridli, 2015).
As per the findings and observations, Tony was quite belligerent in nature. Who always
instruct to others with wrong intention. Due to lack of leadership, or managerial performance
goals. Leaders are not effectively work on the projects. As per the organizational Zoo behavioral
model. Company needs to motivate their employees in order to attract their work willingness and
growth. He is quite annoying person who always implement their own policies and rules. Every
organization required to be appoint the best leadership growth that helps to keep the best possible
action plan.
Apart from that, theory also helps to identify the management effective learning goals to
become the best performing manner (Marchewka, 2014). Leaders always needs to required the
best confidence level and growth oriented level. Leadership goals are the best source full
challenge for the company that needs to be performed in good manner.
In Vella Office Fitouts some employees were aware about this situation that work is not
completed on time or improper, they already told Tony about the all situation but he does not
make any efforts to improvise it.. Due to which chances of accident leakage might have a
possibility (Larson and Gray, 2015). Overall, Tony was not the good manager for the company
due to many reasons which has been observed by employees or company performance level.
This situation created negative environment at work place and also on the output performance.
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Organization required to adopt leadership behavioral theory to recruit new productive
manager (Larson and et.al., 2014). Institution needs to hire manager as per set qualities like he
can inspire about shared vision to control the best leading goals. Inspired leader will always be
divine by good things.
Team Environment
It is the another form of element that consist with the projects. As per the observation or
leading goals. That makes the environment goals, company required to modify the changes in the
working environment (Meredith and et.al., 2016). Team environment is very much necessary or
focusing matter of fact. That contains the better opportunity and goals. Apart from that, team
environment is essential for employees to perform different task and goals. Team define by its
composition, culture, and goals. This would also help to make the good impact on the working
employees. This also helps to make the good team building and performance task (Larson and
Gray, 2015). Vella IT Office required to adopt required productive environment that affect the
business into possible manner. Such as get into the right mindset. Get into the right mindset this
also helps to make the effective team building. This helps to make the cooperative environment
within the organization. Vella IT Office also needs to acquire better working environment in
order to minimize the working task or process that able the good goals and process. Motivated
employees gives their best performance into the project execution. Besides, demotivated
employees are more lethargic and unconscious about its work. This work become more effective
and leading resourceful goals that helps to connect the long term process (Rolstadås and et.al.,
2014). On the basis of analysis, Vella IT Office is highly required the best level of motivational
strategy or motivational models for their employees motivation.
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RECOMMENDATIONS
There are several recommendations that can be given.
These are as follows:-
1. The project manager can hire more labor to complete project on time. By this, he can
distribute activities in effective way (Marchewka, 2014).
2. The manager can finish the first two floors work and then proceed with further because most
of the part in ground and first floors are completed.
Thus, it will be easy to complete the project in given time (Sears and et.al., 2015).
CONCLUSION
From the report, it is concluded that a project can be highly impacted by delay in time. It
has led to rise in cost. Moreover, it is necessary for project manager to gather useful information
about project so that it can be completed in given time frame. Moreover, it is concluded that
leaving of project manager impact project to a great extent. It has also led to rise in cost. The
behavior of manager as well as team member has influenced overall project.
REFLECTION
From the above report, I analyzed that project cost and time are interrelated to each other.
Any change in one will create impact on others (Newton, 2015). Also, I evaluated that there
occurs a variance in cost and schedule if there is delay in project. I also noticed that project plan
and documentation are very necessary to develop. This is because it gives an overview of how
entire project will be completed (Rolstadås and et.al., 2014). The schedule help staff to perform
their roles in given time. I noticed that manager is responsible for leading a project. So, he has to
perform all roles starting from developing project plan till completion (Sánchez, 2015).
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REFERENCES
Books and Journals
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across borders. Routledge.
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Project Management. International Journal of Information and Communication
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Routledge.
Heldman, K., 2018. Project management jumpstart. John Wiley & Sons.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
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& Sons.
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Undergraduate Business School Course to Learn Principles of Project Management and
Leadership Skills. Journal of the Midwest Association for Information Systems. pp.53-66.
Larson, E. W. and Gray, C. F., 2015. A Guide to the Project Management Body of Knowledge:
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management approach. International journal of managing projects in business. 7(4).
pp.638-660.
Sánchez, M. A., 2015. Integrating sustainability issues into project management. Journal of
Cleaner Production. 96. pp.319-330.
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Sears, S. K., and et.al., 2015. Construction project management. John Wiley & Sons.
Silvius, A. J. and Schipper, R. P., 2014. Sustainability in project management: A literature
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Turner, R., 2016. Gower handbook of project management. Routledge.
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Walker, A., 2015. Project management in construction. John Wiley & Sons.
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