Project Management: Project Selection, FID, and Quality Planning

This report addresses two key questions in project management. The first explores the important factors for evaluating project opportunities when resources are constrained, focusing on elements relevant to making a Financial Investment Decision (FID), such as financial stability and investment objectives. The second question delves into the relationship between quality, time, and cost within the 'Iron Triangle' model, discussing whether strictly stipulated quality specifications are beneficial or lead to uncertainty and scope change orders. The report emphasizes the importance of balancing cost, time, and scope for project success and highlights the role of quality planning in setting project standards, defining scope, and controlling costs.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student
Name of the University
Author Note:

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Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
References........................................................................................................................................4

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Answer to Question 1
Most of the project around the globe comes with three traditional constraints that are cost,
time and scope. These three factors are known to be triple constraint which is represented by
triangle. Each of the triangles comes up with vertices along with time in central theme. It is the
duty of the project manager to deliver the project within the given budget and time (Kerzner and
Kerzner 2017). Project needs to meet the given scope along with customer quality needs. The
triangle was given by project manager in diamond shape which comprises of scope, time, quality
and cost.
Cost: All the given project comes up with a finite budget where customer is very focused
on spending huge amount of time for delivery new product and service (Al-Tmeemy and Al
Bassam 2018). If the individual can reduce the project cost, then they need to reduce the scope
and increase the overall time.
Time: Time is Money where the commodity can slip away in easy away. Project comes
up with deadline for its delivery (Schwalbe 2015). There are some instances when the project
time is reduced then project manager needs to increase the overall cost and reduce the scope.
Scope: There are many instances when the project may fail on this particular parameter
because the project is not completely defined right from the beginning (Samset and Volden
2016). At the instance of increasing the project time, the individual needs to either increase the
cost or overall time of the project.
In the domain of project management, FID stands for Final Investment Decision. It can
be defined as a point where the project can go ahead. At the time of project execution phase, big
company aims to spend huge amount of money on construction project. For reaching FID, the
project needs to have wide range of contracts that permits in place (Lock 2017). It permits the

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place which is allowed for proper structure for investment. It is mainly with the terms with
finance providers. Project managers need to take into account five important aspect before
decision making like
Making right use of Money: Project Manager needs to make use of money so that they
can financially stable.
Reason to Invest: Project Manager needs to have idea with respect to the overall
objective of investing (Lock 2017). Investor needs to look for multiply their grain quick way and
very much willing to take much higher risk.
Answer to Question 2
Project Management Triangle is known to be a valuable tool which is needed for
providing priority and decision making. It is mainly used as a throwaway tool that is completely
based on training courses. Previously, it was a triangle that comprises of three important
parameters which come up with central theme for customer expectation (Samset and Volden
2016). The three constraints is all about balancing each of the constraints so that a successful
conclusion can be reached. If scope is cut, reduced quality then the scheduled is completely
pushed to cheaper resource that can be found. The most significant kind of constraint in this
aspect is cost. Overall increase in cost as more and more parameters are included in the project
can result in deadline issues. Some of the latest features of the project are completely put into
action for overall reduction in the delivery time (Schwalbe 2015). Both schedule and budget
result in increase in pushing of the final date of the delivery. As a result, more and more people
are added to reduce any kind of disruption of the project schedule. This will ultimately result in
increase in overall cost of the project. The biggest parameter that is taken into is scope.

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In quality planning of project, the project manager aims to set up some standard for the
project for its overall success (Al-Tmeemy and Al Bassam 2018). Manager needs to have an idea
regarding the quality planning with rest of project planning as it influences the cost, scheduling,
and other associated factors.
Setting up standards: Quality planning is needed for determining the current ongoing
objective that needs to be measured (Joslin and Müller 2015). Scope of the project depends on
deliverables and process for which the project manager is completely responsible.
SMART Benchmarks: With respect to short-term project, quality plan needs to be taken
into account (Kerzner and Kerzner 2017). The points are considered to be useful for identifying
the overall progress of previous project.
Delegates responsibility: Quality plan in specific does not need to be details about the
overall benchmark and responsible for meeting it. Stakeholder of the project comes up with
authority of meeting it completely.
Control of Cost: The biggest reason for overall quality planning is its impact on overall
cost (Joslin and Müller 2015). By the help of cost-benefit analysis, it can determine the overall
incremental improvement in the bottom line of the project.

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References
Al-Tmeemy, S. and Al Bassam, B., 2018. An empirical analysis of the relationship between cost
of control activities and project management success. In MATEC Web of Conferences (Vol. 162,
p. 02036). EDP Sciences.
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and
project success in different project governance contexts. International Journal of Project
Management, 33(6), pp.1377-1392.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lock, D., 2017. The essentials of project management. Routledge.
Samset, K. and Volden, G.H., 2016. Front-end definition of projects: Ten paradoxes and some
reflections regarding project management and project governance. International Journal of
Project Management, 34(2), pp.297-313.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.