SIM335 Project Management Assessment 1: ABC Plc Acquisition of DEF Ltd

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Managing Projects
SIM 335 - Assessment

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TASK – 1
1a).
The following are the key characteristics that define a project
 Well-defined purpose, duration, or outcome – These aspects are defined
in the context of schedule, performance and cost requirements (Lock, 2017).
 Uniqueness – The projects focus on doing something new and different.
 Temporary Nature – A project is put together to achieve a goal within a
specific time frame and it ceases to exist after the goal is achieved (Lock,
2017).
 Functions across the organisational functions – A projects assimilate
elements and resources from different organisational functions to fulfil its skill
and knowledge requirements (Lock, 2017).
 Unfamiliarity – A project will involve unfamiliarity since it is trying to do
something new and different (Lock, 2017).
1b).
A Project Initiation Document or PID focuses on capturing and recording the
necessary information required to describe and plan a project correctly. It formulates
the basis of various decisions taken during the project regarding its progress and
execution. It includes details like project aims; plan to achieve the aim, and the
importance behind the need of achieving the aims along with a list of participants
and their designated responsibilities and roles (Aggestam-ca, 2010).
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2a).
A Scope Statement is a part of PID and it consists of Project objectives, key
deliverables, high-level needs, potential risks, key milestones, approval and review
of stakeholders, and assumptions and exclusions (Wysocki, 2011).
2b).
The WBS summarily defines the project scope statement and allows better control of
the project scope. It includes the project sub-tasks that together constitute the more
complex project tasks. These subtasks are easier to execute and keep track of by
allowing the simplification of the project execution and enhancing the efficiency of its
monitoring (Crawford, 2014).
3).
Gantt chart:
Tasks
/
Wee
ks
1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
a
b
c
d
e
f
Figure 1: Gantt chart
Source: (Authors Work)
According to the Gantt chart based on the given schedule, the project completes in
25 weeks.
Network Diagram:
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Figure 2: Network Diagram
Source: (Authors Work)
Critical Path:
It can be surmised from the network diagram that the project can be completed in the
following two different ways
1) Start – a –b- c – e – Finish; Total days – 22 weeks
2) Start – a – b – d – f – Finish; Total days – 25 weeks
Hence the critical path for this project will be Start-a-b-c-e-Finish which takes 22
weeks.
4).
A project budget can be generated by any of the following two approaches
Top-down Budgeting Approach – The top-down approach is focused on using the
collective experiences and judgement of the managers from the middle and top
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echelon of the business. Estimating the costs associated with major tasks is done for
identifying overall project costs (Meredith et al., 2017).
Bottom-Up Budgeting Approach – The basic tasks are identified by using Work
breakdown structure or action plan. The person responsible for managing and
executing the identified tasks supply the potential resource requirements and based
on this budgeting is done (Meredith et al., 2017).
5).
The Risk Response focuses on devising ways to counter and eliminate or reduce the
project risks that can arise due to the uncertain nature of the project and the use of
unfamiliar and new resources like equipment (Crawford, 2014; Meredith et al., 2017).
The following Risk Response strategies can be employed to counter and eliminate or
mitigate risks to a project
 Avoid – The risk will be eliminated when it’s avoided. This is done by
identifying the source/ causes of the risk and eliminating it (Crawford, 2014;
Meredith et al., 2017).
 Reduction – This strategy focuses on reducing the potential impact of the
common risks such as lack of experience in project staff, project manager’s
inexperience with a contractor, etc. (Crawford, 2014; Meredith et al., 2017).
 Mitigate –It is used for managing risks that cannot be avoided. It focuses on
reducing the potential of a risk event (Crawford, 2014; Meredith et al., 2017).
 Transfer – This involves transferring the risk to another party by way of
subcontracting such as through warranties, insurance, guarantees, etc.
 Acceptance – This strategy is employed in cases where the risk impact is low
or the potential of a low-risk event (Crawford, 2014; Meredith et al., 2017).
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6).
Project Evaluation, Monitoring and Control: This is a process that includes a
comparison of actual project performance with the initial plans to determine project
progress, variances and appropriate action to correct the deficiency. The various
aspects of the projects that are monitored include human resources, tasks,
equipment's, time, financials, materials, and technical or quality performance
(Nicholas and Steyn, 2017). The project monitoring is done through meetings with
project participants like suppliers; scheduling and updates on the Gantt charts;
monitoring project milestones, deliveries, and reports, and inspections and tests. The
project control cycle involves Planning, executing, checking, and corrective actions.
Planning includes planning project specifications, schedule, budget, resource, and
vendor contracts. Executing involves monitoring status, progress, and cost.
Checking involves evaluating current status, schedule and cost with planned ones.
Corrective actions include correcting variations from plan and re-planning whenever
necessary (Nicholas and Steyn, 2017).
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TASK – 2: REPORT
Executive Summary
The report focuses on the various aspects of a project planning, implementation and
termination in the context of the proposed takeover of DEF Ltd. by ABC Plc. It will
include the details regarding the activities that ensure that a project is managed
successfully and it is executed within budget and on time. It will describe the
competencies and skills necessary for a project manager and the project
management process. The report will also consider aspects of concerns,
administration, leadership, product life cycle stages, and processes. Lastly, the
report will explore the problems associated with the lifecycle management of a major
acquisition project.
Introduction
A project is executed by an organisation to achieve specific goals (Heagney, 2016).
In the current context, the goal is the acquisition of DEF Ltd., a high street frozen
food retailer by ABC Plc, a large scale UK based retailer of food and drinks. ABC has
a history of successful acquisitions and merger but the success of the acquisition of
DEF Ltd. will be defined by the success of the proposed acquisition project. The
report will focus on various aspects of the project that are a necessity for its
successful implementation to facilitate the company’s decision of conducting the
acquisition project management in-house or outsource it.
Project Purpose
A project can be defined as an activity focused on achieving a specified and well-
defined objective or purpose. The project management focuses on predicting the
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potential issues and risks counter them by planning, organising, and controlling
activities that ensure that the project goals are achieved in the specified time frame
in spite of the identified risks and issues (Heagney, 2016). The purpose of the
current project is to incorporate the acquisition of DEF Ltd. by ABC Plc successfully
on time.
Project Scope
The scope of a project is an important document that's necessary for its effective
implementation. Project Scope is a part of the project planning process and it
includes identifying and documenting various aspects of the projects including the
goals, schedule, deliverables, tasks, features, and costs (Lock, 2017). It provides
details of things that need to be done to complete the project successfully. The
documentation that consists of the project scope is known as the scope statement or
the statement of work which describes project boundaries or limitations, determine
and allocates the team members responsibilities and roles, and creating the process
through which the finished work can be checked and approved. The Project Scope
document helps the project team by guiding them regarding project change requests
and helping them remain focused on the project and the designated tasks. A project
scope facilitates the stakeholders understanding of the project while providing the
managers with a road map for scheduling work, assigning tasks and budgeting
(Lock, 2017).
Project Scheduling
Project scheduling is an instrument of connecting the project tasks and sub-tasks
with the organisational resources and assigning a time frame for the completion of
assigned tasks and sub-tasks (Heagney, 2016). A project schedule is a document
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that communicates the tasks to be performed along with their order and the
designated time frame. The project scheduling involves considers various project
tasks and sub-tasks as well as their start and end dates along with the availability
schedule of the project team to create an effective project schedule. Many
scheduling tools are used during a project such as milestone schedules, project
schedules, work breakdown structure and Gantt chart. These tools not only facilitate
the scheduling of the project but also facilitate the monitoring of the project progress
and controlling the project flow (Heagney, 2016).
Project Benefit
The 'Project Benefit' highlight the benefits of successful project delivery. The
achievement of the project benefits is the parameter through which the success of a
project can be measured. The project benefits can be categorised as Quantitative
and Qualitative benefits (Heagney, 2016). The project benefits for the acquisition
project can be strengthening of the ABC PLCs portfolio due to the addition of frozen
food retailing. Another benefit can be access to a new customer base that can
contribute towards enhancement of its customer base. The enhanced revenue and
profitability can be other benefits of this acquisition project.
Work Breakdown Structure
The Work Breakdown structure is the basis of a project schedule. It indicates the
project tasks divided into the simpler and achievable sub-tasks or deliverables. It
allows the project manager and team to graphically represent the project tasks or
visually represent the project task into manageable parts. The work breakdown
structure is created by the project team after the identification of major deliverables
which are then divided into sub deliverables. The division of a task is done to ensure
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that the final divided deliverable will be achievable by a single person (Harrison and
Lock, 2017).
Figure 1: An example of the Work Breakdown Structure of an Acquisition Project
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Source: (Stakeholdermap, 2019)
Skills and Competencies of a Project Manager
A project manager is responsible for handling a variety of activities and operation
daily irrespective of the industry to which they belong. Every project irrespective of its
size and scale is made-up of several cross-functional activities that are required to
be executed within defined time frames and budget. A project manager acts as a
change agent within the project team that consists of individuals with diverse
backgrounds and skills and handling different roles. Hence a project manager is
expected to have a variety of skills and competencies that supports them in
completing the project successfully. There are certain skills and competencies that
need to be possessed by a project manager to succeed in their endeavour. These
include competencies like Leadership, negotiation skills, communication skills, risk
management, and planning and organising skills.
Communication Skills: Experts consider that a major part of the project
management and implementation is communication. Effective communication
defines the efficiency of the project team as well as the success of the project. The
role of a project manager involves communicating with a myriad set of people
including the project team, sponsors, and other stakeholders of the project while
employing different styles of communication with every other group. An effective
project manager needs to be concise and clear communicators with a command of
both verbal and written communication (Crawford and Nahmias, 2010).
Risk Management: The proficiency in identifying and managing risks is a significant
competency for a project manager. The project success is threatened by potential
risks and identifying them and responding to them ensures project success. The
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