Project Management a Strategic Planning Approach - Case Study Example

? Project Management AFFILIATION: Table of Contents Table of Contents 2 One Day Training Programme for Big Idea Limited 3 References 18 Appendix-I: Roles and responsibilities of project team 21 One Day Training Programme for Big Idea Limited Background of Project Our company, Project Management Ltd. (PML) has been approached by Big Ideas Ltd. for organising a one day training event for Level 3 Undergraduate students on Project Management where the main area of focus in this discipline is on understanding and learning application of MS Project software and Critical Path Analysis. Since the company lacks experience in managing such events so it has approached our consultancy firm to design the way in which such a training programme can be managed. Concept of Project Management (PM) and its strategy All over the world, most of PM practitioners prefer to use Project Management Board of Knowledge (PMBoK) and Projects In Controlled Environments (PRINCE2) methodologies as they are the standardized ones. According to PMI (2008), both methodologies suggest that the projects should get started with a Project Initiation phase that helps in identifying the main requirements of the owners. However, in case of Big Idea Ltd., preparing a Feasibility study or Business case is most appropriate which is the latest tool used by PM practitioners (Field & Keller, 2007). Business case is described by Gardiner (2005) as a tool that is standard in Project Management with the aim of providing analysis of three crucial features of projects i.e. managerial, technical and financial so that a solution can be derived in accordance with the customer’s set of requirements. Business case has been used by Project Management practitioners as it eases the management team in making sound decision in future about project related to its objectives and scope (Ali, Anbari, & Money, 2008). Since Project Initiation Phase is of utmost importance in every project, it is vital for the PM practitioner to ensure that this phase is properly worked out. According to Kerzner (2009) and Turner (2009), Project Initiation phase must have to two outputs; one is there should be an appointed Project Manager and second output is Project Initiation Document known as PID. While the process of initial project development is progressing and project objectives are being defined, PM practitioners identify two sets of factors that will be used for measurement of project’s success (Haas, 2006). According to PMI (2008), the first set of factors is made from the success criteria which comprise of dependents variable that will assess the successful project’s outcome i.e. time, quality and cost. While, second set of factors set comprise of success factors that consist of independent variables that have influence on success criteria’s successful achievement i.e. project assumptions and constraints. Figure 1: Project Life Cycle Source: Lock (2003) The project objective for Big Idea Ltd can be defined as: To design and prepare a one day UG Project Management Training Programme for Level 3 Undergraduate students to make them understand the application of Microsoft Project and Critical Path Analysis for delivery on 1st September 2012 with a maximum budget of ?40,000. When the project initiation phase ends and project is approved by the concerned authorities, the next phase of the project life is project development phase. Olsson and Magnussen (2007) and Shenhar (2008), the second phase of Project Life Cycle is the most crucial one as at this stage the project is either made or broken. At this stage, the project is refined as formation of project team takes place along with setting of various plans and activities for implementation, monitoring and control are completed. Project Development phase helps in setting the project boundaries and identification of details and requirements of the projects (Kwak, Anbari, 2008). Turner (2009) defined the second phase as the identification of activities that will allow operations of the conceptual phase’s activities. At the end of this phase, there are two outcomes or deliverables that are tangible i.e. The Project Team and Project Management Documentation (Patanakul, Iewwongcharoen, & Milosevic, 2010). The longest phase of project life cycle is its execution stage which comprises of various important activities such as allocating vital resources for planned activities execution, attaining the planned activities, monitoring, controlling and reporting on project’s success and making changes in project plan when such need arises and getting approval for a change request. The major output of implementation or execution stage comprise of project deliverables that were identified in the planning phase. The last stage of Project Life Cycle is closure in which activities related to closure are concentrating on clients final and formal acceptance of project deliverables along with disengagement of project team and complete and final closure of project’s activities are completed (Field & Keller, 2007). Afterwards, audit of the project is done to indicate the project’s success along with achievement of desired objectives in accordance with set budget; lessons are also learnt with the aim of providing company information so that same steps can be applied in other organisations of similar structures (Lifecycle Project, 2012; Westland, 2007). Project Scope Bedner (2012) and Gustafsson and Salo (2005) identified project scope and defined it as an element of subsequent management that is one of the vital tools and techniques used in project management for ensuring success of project. Project scope is mainly done in implementation phase of Project Life Cycle; the project scope integrates project objectives with work package identified in the Work Breakdown Structure (WBS). The main aim of project scope is to provide clear limitations of project boundaries i.e. the things that need to be included and that need to be excluded from the specific project (PMI, 2008). The main tool used in Project Scope is WBS as it is a mechanism that breaks down project into smaller work packages so that project scope is clearly identified along with project activities (Gray & Larson, 2010; Whitty, 2005). Hence, WBS assists in identification of project scope and its schedule along with scope control elements during the execution of project. According to Gardiner (2005) and PMI (2008), the WBS can be either product based or Project Life Cycle based; it depends on the best practices of PM in any particular industry. For Big Ideas Ltd., product based WBS will tend to work more appropriately as the work packages will be identified on finished product level. Figure 2: Work Breakdown Structure   WBS helped in identifying the work packages for the project; keeping the work packages and Project objectives in mind, Project Scope can be described as developing project documentation, preparing a marketing campaign for promotion and sale of training programme, developing curricular for training sessions accompanies with handbooks and lectures, developing the schedule for event day and arranging for refreshments for trainers. Having in mind the identified work packages from the Work Breakdown Structure and the Project objectives, the Scope of the Project is to: develop project documentation, develop curricula for the training accompanied with Lecturers and handbooks, prepare a marketing campaign to promote and sale the event, develop the event day schedule and arrange for food and beverages.  The outline of training programme content has been developed by taking help from Project Learning Net (2011) and the main themes that will be covered in the training day are shown in the table: Table 1: Outline of Training Programme content 1 Preliminaries of the project – Getting started with Microsoft Project 2 Planning out the work and Project Planning Techniques – creation, organisation and planning of the project’s outline 3 Using critical path to review project’s schedule 4 Providing help to people and managing costs 5 External influences management 6 View, analysis and reporting of the project plan 7 Optimisation of plan and people 8 Plan’s progression 9 Discussions and case study presentations The themes of the training programme will be covered in four sessions with timing of two hours each. There will be two refreshment and tea breaks of fifteen minutes each and one break for lunch of sixty minutes during the training day. Team for project and its structure Work Breakdown Structure helps in developing a clear understanding about the project activities that assist in appropriate division of responsibilities (Mitchell & Nault, 2007; Walker et al., 2008). Hence, WBS helps in proper creation of project management team structure. Figure 3: Project Management Team Structure Since the project organisation is task based so the structure is developed in accordance with it and project team has been divided into groups that cover particular work packages of the project. The relationship of reporting is bottom up. Project team composition will vary in accordance with Project Life Cycle phases; during planning phase, team will have only task leader, in implementation and closure phases, project team will be expanded into each work packages that will include all representatives from contractors such as venue provider, caterer and marketing agency and contracted lecturers as well. Communication Plan of team The communication of the Project team will be done in following three ways so that project progress is properly monitored: 1. Meetings with team members – Meeting agenda will be distributed by the Project Manager two days ahead of the scheduled meeting and all participants are assumed to have reviewed the agenda before the meeting. It will be important that meeting timings are properly followed and timekeeper will record the duration of the meetings. All participants will have to be punctual and cell phones need to be turned off or kept on silent mode. Minutes of the meeting will be distributed within 24 hours of meeting completion. 2. Email co-ordination – Every email regarding the project will be formal, free of any kind of errors and provide brief communication. Emails will be shared with concerned participants of Big Idea Ltd. project. All attachments have to be in any one of the software suite programs standard in the organisation and should adhere to existing formats of company. In case of any issue being raised, then through email issue should be discussed with brief background on it and recommend a solution for rectifying the issue. The Project Manager should be included on any email pertaining to the Big Idea Ltd. Project. 3. Informal Communication – Informal communication is vital for every project and if any issues or updates arise from such communication between team members then they should be communicated to the Project Manager so that right action can be taken. Roles and Responsibilities of Team Member: The team members will be selected on the basis of their expertise in the field. On the whole, there are four team members that need to be selected i.e. Team Leader (Marketing), Team Leader (Curricula), Team Leader (Marketing Agency) and Team Leader (Event Day). The criteria for selection will comprise of years of experience in the field, expertise for given position, qualification of each person and ability to handle large scale projects. The fifth most important body is Project Body that comprises of Project Sponsor, Stakeholders and Project Owner; Project Manager is also part of the Project Board. In Appendix-I, roles and responsibilities of each team members are defined and the Project Manager will ensure that tasks are completed on time by providing relevant details in each meeting to review the progress. In order to ensure that tasks are completed on time, communication plan will be effectively followed along with project schedule. The main stakeholders of the project are Project manager, Project Owner i.e. Big Ideas Ltd., team members, Project Sponsor, students and suppliers and contractors. With each stakeholder, communication will be done in the form of meetings which will be held once a week and other source of communication will be through email so that any issues are tackled as soon as possible. Project Management Plan Project Management Plan is important for documentation of actions that are necessary for defining, preparing, integrating and co-ordinating all supplementary plans (PMI, 2008). There are two purposes of Project Management Plan; first, it serves as a source of communication about project’s intentions and secondly, provides assistance in controlling the project during its implementation phase. According to PMI (2008), Project Management Plan comprises of following elements: 1. Project Schedule 2. Project Quality Plan 3. Project Budget with resource analysis 4. Project Risk Management Plan 5. Project Communications Plan The two key Project Constraints are the maximum budget for project is ?40,000 and training day is scheduled to be held on September 1st, 2012. Some key project assumptions for the project are: 1. In preparation phase, allocated resources are made available. 2. Fee of the project team is about 10% of the maximum cost of project. 3. On training day, there will be four training session each having duration of two hours; one will be covered by an Academic Lecturer and three by field practitioners. The lecturer will be contracted for preparation and review of training material to be incorporated in handbook. 4. Promotion agency will be contracted for promotional plan which will comprise of social media coverage, radio ads, online banners, leaflets, posters along with handbook printing and welcome pack. The project budget is estimated to be as follows: Table 2: Project Estimated Budget Project Management ?4,000 Sales fees ?800 Practitioners ?1,200 Venue ?2,000 Promotional and Printed Material ?22,000 Catering ?3,000 Academic Lecturer (Contract) ?3,000 Promotional Plan and Agency Fee ?4,000 Total ?40,000 Project Schedule With the help of WBS, further project schedule can be developed. Project Schedule helps in forecasting both time and cost for completing the project deliverables on time. The step is required for finalisation of resources, budget and schedule of the project (Gray & Larson, 2010). It provides the baseline for monitoring future projects. There are two approaches in estimation i.e. micro (bottom-up) and macro (top-down). Macro approach is suited for situations in which strategic decision is to be made; while, micro is appropriate when time and cost are major constraints. In Big Idea Ltd., micro approach will be applied. When the activities are planned out with their timing, next thing is creation of a critical path with detailed information about critical activities which are those activities that if delayed can cause the whole project to get delayed. Figure 4: Project Representation in the form of Gantt Chart Project Control and Monitoring According to Hajjaji, Denton and Jackson (2010), the Project Management Control tools can be divided into following two categories: 1. Actual versus baseline activity and requirements – Control and monitoring is placed on project participants’ performance and output quality. Here, monitoring of milestones is vital control mechanism that is determined by Project Manager. 2. Actual versus baseline project cost – Controlling project cost is other vital project tool that is used for project’s performance controlling in comparison with initial allocated resources and costs. In order to ensure that project control is properly done, Project Responsibility Matrix is designed that ensure that milestones and deliverables developed have been achieved and that all changes in them have been done after approval from all participants who are responsible for that particular milestone and deliverable. Project Management Training Curricula Event Day Marketing Project Manager A I,R,S I,A,R I,R,S Team leader (Marketing) I I I A Team leader (Curricula) I A I I Team leader (Venue and Catering) I I I,A I Marketing Agency I I A,I A,I Project Owner R,S R,S R,S R,S P = Participant A= Accountable for task R= Review required I = Input required S = Sign off required Risk Register outline for project According to Turner (2009), in Project Management, risk identification and its categorization is crucial so that projects are successfully completed on time. Risk register allows easy categorization or risks and evaluating their impact on project objectives and whether company has control on them or not. Once risk ownership and impact is decided, mitigation tactics can be developed easily (Cox, 2008; PMI, 2008). Figure 5: Risk Register Log No Risk Category Risk event Impact (description) Impact on project schedule Impact on project cost Likelihood 1 Lecturers No adequate Lecturers are recruited on time; Lecturers cancel before the event; Lecturer gets sick or otherwise is prohibited to participate The training cannot be realized at the scheduled day High High 0.5 2 Printer An ambitious schedule for printing of the handbook. Financial problems. Printer lost key people and cannot deliver the handbook because of financial problems. The handbook will not be ready for the training Low Medium 0.5 3 Venue Electricity shortage; Equipment failure The training cannot be realized at the scheduled day High High 0.1 4 Caterer Financial problems; Delivery problems Quality and H&S problems Launch and beverages will not be served at the event. Low Low 0.2 5 Marketing Agency Financial and or staff related Problems The Promotional plan will not be ready on time. Low Medium 0.1 In the case of Big Idea Ltd. project, risk can be avoided by transferring the risk of the contractors by developing contractual agreements in a way that there should be some financial penalties and incentives for the contractual agreements as well. Conclusion In order to successfully executing the project, following are the key elements that need to be performed by project manager: 1. Development of detailed project documentation with explanation about project specification and quality expectations for the deliverables and milestones. 2. Responsible for facilitating work package definition, sequencing, and estimating duration and resources with the project team. 3. Create the project schedule using MS Project 2007 and validate the schedule with the project team, stakeholders, and the project sponsor. 4. Obtain schedule approval from the project sponsor and baseline the schedule. 5. Risk mitigation strategies need to be developed so that risks can be taken care and avoided as well so that project gets completed according to the schedule. 6. Project team needs to be carefully developed so that there are appropriate people for the project. 7. Communication plan, reporting procedure, task allocation and responsibility for each task needs to be well-planned out and co-ordinated so that there are no problems in project execution. 8. Team members need to be pushed again and again so that they complete the tasks on time and project schedule is properly followed. References Ali, A. S. B., Anbari, F. T. and Money, W. H., 2008. Impact of organisational and project factors on acceptance and usage of project management software and perceived project success. Project Management Journal, 39(2), pp. 5-33. Bedner, J.A., 2012. Project Management. [Online] Available at: http://www.inf.ed.ac.uk/teaching/courses/sapm/2011-2012/slides/projman_4up.pdf [Accessed 9 August 2012] Cox, L. A., 2008. What’s wrong with risk matrices? Risk Analysis, 28, pp. 497-512. Field, M. and Keller, L., 2007. Project Management. London: Thompson Learning. Gardiner, P., 2005. Project management: A strategic planning approach. Basingstoke, UK: Palgrave Macmillan. Gray, F. and Larson, W.E., 2010. Project Management. 4th ed. US: McGraw-Hill Higher Education. Gustafsson, J. and Salo, A., 2005. Contingent portfolio programming for the management of risky projects. Operations Research, 53(6), pp. 895-946. Hajjaji, M., Denton, P. and Jackson, S., 2010. The effectiveness of using project management tools and techniques for delivering projects. [Online] Available at: http://www2.hud.ac.uk/ce/research/conference/additional-papers/Additpaper-7-M-Hajjaji.pdf [Accessed 9 August 2012] Haas, M.R., 2006. Knowledge gathering, team capabilities, and project performance in challenging work environments. Management Sciences, 52(8), pp. 1170-1184. Kerzner, H., 2009. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 10th ed. Hoboken, NJ: John Wiley and Sons. Kwak, Y.H. and Anbari, F.T., 2008. Impact on project management of allied disciplines, Trends and future of project management practices and research. Newton Square, PA: Project Management Institute. Lifecycle Project, 2012. Lifecycle Project Management Approach. [Online] Available at: http://www.alterspark.com/project-management-approach [Accessed 9 August 2010] Lock, D., 2003. Project Management. 8th ed. England: Gower Published Ltd. Mitchell, V.L. and Nault, B.R., 2007. Cooperative planning, uncertainty, and managerial control in concurrent design. Management Sciences, 53(3), pp. 375-389. Olsson, N. and Magnussen, O., 2007. Flexibility at Different Stages in the Life Cycle of Projects: An Empirical Illustration of the “Freedom to Maneuver”. Project Management Journal, 38(4), pp. 25-32. Patanakul, P., Iewwongcharoen, B. and Milosevic, D., 2010. An empirical study on the use of project management tools and techniques across project life-cycle and their impact on project success. Journal of General Management, 35(3), pp. 41-65. PMI, 2008. A guide to the Project management Body of Knowledge (PMBOK Guide). 4th ed. Atlanta: PMI. Project Learning Net, 2011. Project mentor Learning Content. [Online] Available at: http://www.projectlearning.net/pdf/Project_Mentor_Learning_Content.pdf [Accessed 8 August 2012] Shenhar, A. J., 2008. Unleashing the power of project management. Industrial Management, 50(1), pp. 14. Turner, J.R., 2009. The handbook of project-based management: leading strategic change in organisations. 3rd ed. US: McGraw-Hill Professional. Walker, D.H.T., Cicmil, S., Thomas, J., Anbari, F.T. and Bredillet, C., (2008). Collaborative academic/practitioner research in project management: theory and models. International Journal of Project Management, 1(1), pp. 17-32. Westland, J., 2007. The Project Management Life Cycle. [Online] Available at: http://www.maxwideman.com/papers/life_cycle/life_cycle.pdf [Accessed 9 August 2012] Whitty, S. J., 2005. A memetic paradigm of project management. International Journal of Project Management, 23, pp. 575-583. Appendix-I: Roles and responsibilities of project team Role Responsibilities Participant(s) Project Sponsor Ultimate decision-maker and tie-breaker Provide project oversight and guidance Review/approve some project elements XYZ Project Board Commits department resources Approves major funding and resource allocation strategies, and significant changes to funding/resource allocation Resolves conflicts and issues Provides direction to the Project Manager Review project deliverables XYZ Project Manager Manages project in accordance to the project plan Serves as liaison to the Project Board Receive guidance from Project Board Supervises consultants Supervise vendor(s) Provide overall project direction Direct/lead team members toward project objectives Handle problem resolution Manages the project budget XYZ Project Participants (Team Leaders) Understand the user needs and business processes of their area Act as consumer advocate in representing their area Communicate project goals, status and progress throughout the project to personnel in their area Review and approve project deliverables Creates or helps create work products Coordinates participation of work groups, individuals and stakeholders Provide knowledge and recommendations Helps identify and remove project barriers Assure quality of products that will meet the project goals and objectives Identify risks and issues and help in resolutions XYZ XYZ XYZ XYZ Read More