Project Planning and Control - Essay Example

Project Planning and Control Introduction Many people regard management and leadership as quite distinct, while others see quite close linkages between them. Management is a process that primarily depends upon the competencies and skills of the people who comprise the team assigned to plan and execute a project. Leadership and motivation are essential catalysts in the successful implementation of a project. As Pottruck and Pearce (2001, p.87) said: “Today leadership is personal and it is public. A leader’s actions and words – and the relationship between the two – are the primary tools of inspiration.” This paper attempts to study the essential features of project management as a discipline, and to discuss how a good project manager needs to be an effective leader. The learning outcomes are analysed in the light of two sample projects – the first is a project to construct a new office building, and the second a consultancy project to restructure the organisation of a university. Project Management Organisations in general and business or industry in particular need to identify, plan, and execute a variety of projects in order to achieve their short-term and long-term goals of delivering products or services. Project management has evolved over the years, and perfected as a specialised management discipline that seeks to effectively plan, coordinate and control a range of complex organisational activities with a view to succeed by meeting the objectives. As Paul C. Tinnerillo (1999, p. xi) noted, “effective project management is a formidable effort, and . . . it is frequently shrouded with perceptions rather than viewed as a set of adjacent management principles.” Project management as a concept and practice is believed to have first started in the space program of the United States towards the beginning of the 1960s. Gradually it developed and was quickly adopted by industries, government agencies and the military. Today at the beginning of the new millennium, we find the principles and practice of project management widely applied to a range of managerial disciplines that cover production, marketing, construction, innovation, and programme management in general. Definition Project management may be defined as the sum total of the functions of conceiving, formulating, scheduling, implementing, supervising, controlling, and reviewing a project with the objective of completing it on time according to specifications and budget. Marion Haynes (2002, p.3) describes project management in the following words: Project management focuses on a project. A project is an undertaking that has a beginning and an end, and is carried out to meet established goals within cost, schedule, and quality objectives. Project management brings together and optimises the resources necessary to successfully complete the project. These resources include the skills, talents, and cooperative efforts of a team of people; facilities, tools, and equipment; information, systems, and techniques; and money. Newman, Warren, and McGill defined a project and its value as “simply a cluster of activities that is relatively separate and clear-cut. Building a plant, designing a new package, soliciting gifts of $500,000 for a men’s dormitory are examples. A project typically has a distinct mission and a clear terminating point” (Cleland & Ireland, 2002, p.4). The multifarious tasks within an organisation get simpler and more amenable to effective execution when they are broken up into separate projects that are distinct and specific in terms of cost, time frame, activities, and the project team. As such it is most often likely that a given project remains as a part of a larger organisational project with a longer time frame. Characteristics Project management consists in the successful utilisation of a family of systems and a set of modern scientific management techniques and tools that together work towards attainment of the project goals. With the rapid changes in the industrial and business environment marked by fierce competition, technological growth and market sophistication, the nature and content of projects have become increasingly complex. This calls for effective, efficient, and scientific project management in order to emerge as a winner. A well-managed project is characterised by the following, among other things: Good planning and project formulation Identification and assignment of the Project Team Allocation of resources Scheduling and time management Implementation and coordination Evaluation and Review Quality management Effective management of change Leadership and Motivation All organisations, both small and large, have specific goals to achieve in tune with their vision and mission, and use people and resources to work towards implementing various tasks. While managers in permanent organisations usually have the facility to utilize available resources almost all the time, project managers need to use limited resources on a temporary basis within a given time frame. This happens because a project primarily focuses on a program or venture that has a predetermined life span. When several projects run concurrently, such sharing of limited resources has the potential to generate conflicts that need to be resolved through skilful discussions and negotiations. Management Process According to Allen and Gilmore, management “is the collective effort of every manager in a given organisation acting toward achieving that organisation’s goals” (2004, p.2-3). In case of a specific project, the efforts of management are directed towards the project goals. While a manager is “a person who gets things done through other people” (2004) by utilising a combination of resources according to a plan within the targeted time, he/she is responsible to ensure that the activities necessary to attain the project goals are effectively carried out. Theories of Management Theories of management in general identify five main functions of management: planning, organising, staffing, leading, and controlling (Allen & Gilmore, 2004). Planning as a process primarily involves appraisal and decision-making relating to the goals of the organisation or a project. It gives a focus and shape to the ideas to be implemented, and the activities to be performed, and identifies the cost, time, and resources framework. Organising refers to the pooling and preparation of resources, both human and material, required to translate the plans into reality. The jobs that need to be done are identified, tasks determined, and the reporting relationships established. Staffing involves the function of getting the right people to do the right jobs. The structure of the team, along with the team leader, is spelled out. Recruitment, selection, and training are important ingredients of the staffing function. Leading is a key function that looks for ways and means to influence and motivate people with a view to facilitating coordinated activities so that each team member achieves his specific targets on time, culminating in achievement of the overall goals of the organisation or project. Controlling primarily involves guidance, direction, and monitoring of activities, apart from trouble-shooting, course correction, quality control, and management of change. A project is a “combination of organisational resources pulled together to create something that did not previously exist and that will provide a perfect capability in the design and execution of organisational strategies” (Cleland & Ireland, 2002, p.4). While designing a project, it is necessary to understand the manner in which the project outcomes can contribute towards the formulation and implementation of organisational strategies. Strategy is anchored in the future and growth of an organisation, and is concerned with several internal and external factors including the competitive environment. Strategic management is based on the vision, mission, objectives, and goals of the organisation, and works through structures, programs, projects, and plans within the framework of the organisational design. Since “project management and strategic management are highly interdependent” (2002), it is also necessary to understand the benefits and technical performance capabilities that a specific project will bring to the organisation. Cleland & Ireland explain the process of this relationship through the diagram given above. Project Life Cycle Every project has a predetermined life with several milestones for targeted completion of each activity. “Projects have a distinct life cycle, starting with an idea and progressing through design, engineering, and manufacturing or construction, through use by a project owner” (Cleland & Ireland, 2002, p.4). A project must successfully move through different phases of key activities in order to reach completion. Marion Haynes (2002, p.4) identifies four main phases of a project life cycle: conceiving and defining the project; planning and formulating it; executing the project; completion and review. Planning and Control Planning is the starting point for any project. It basically consists in a critical appraisal of the concept and objectives of the project, its feasibility, availability and cost of necessary resources, the time available, and alternative plans. Appraisal must cover several aspects such as technical, commercial, financial, organisational, personnel, and managerial. Each of these parameters would be examined on a SWOT (strengths, weaknesses, opportunities, threats) grid. Technical appraisal would look at the scale of planned operations as well as the technology to be inducted, and other essentials such as a suitable location, external and internal threats, if any. Commercial appraisal would examine the demand-supply scenario, marketing and sales options, etc. Financial evaluation would consider the extent, source, availability, and management of funds required to design, develop, and execute the project. Organisational appraisal is concerned with the structure of the Project Team and support services, reporting relationships, the hierarchy, etc. Personnel and managerial appraisals would assess staff issues, leadership, and motivational aspects that could impact completion of the project. Proper planning, scheduling, and control is essential for the implementation of a project in accordance with the originally conceived project plan that is set to a fixed time frame. Control over the implementation of a project is primarily exercised by the Project Manager through periodic review on a weekly, monthly or half-yearly basis, depending upon the life cycle of the project. One of the major skills required of a Project Manager is to have effective communication and coordination skills. Several tools and techniques are available to systematically plan and monitor the progress of different activities that constitute a project, and to ensure that bottlenecks are removed such that the time target is maintained. These include PERT, CPM, and Gantt chart, among others. These are briefly explained below: PERT Program Evaluation and Review Technique (PERT) is a powerful tool that is widely used in project management scheduling and monitoring, and review. This technique that uses network diagrams of various activities and their linkages within a time frame was first used in the late 1950s. By using PERT for analysis, a Project Manager would be able to see how each task is progressing in relation to other tasks. As Mingus (1999, p.7) noted, “the only way to keep projects on time and budget, and to better plan the next project, is to communicate the project, revise the project, and track the actual progress of the tasks in the plan. These are critical yet commonly neglected steps in project planning.” As an effective tool, PERT basically breaks a project down into “measurable tasks” or “work breakdown structures (WBS)” in order to “organise the project into various deliverable or summary reporting levels” (1999, p.4). Another concept used in PERT is that of ‘baselines’. “A baseline is a static view of the plan at a given point. This view is used to help administrators compare the actual times and cost of a project to the original estimates for the times and costs” (1999, p.7). CPM A critical path consists of a series of tasks that show the longest distance from the start of a project to its end. They become critical as any overruns in the time factor is bound to affect the entire scheduling and actual duration of the project. Certain tasks may have slack time, meaning to say that they may take longer than the time actually scheduled without impacting the overall deadlines of the project. Often PERT and CPM are combined to schedule, review, and control project implementation. GANTT Chart A Gantt chart actually forms the basis for PERT. In this method, a project is broken down into different activities, and the time taken by each is represented in the form of a horizontal bar, or schedule. Time or calendar forms the x-axis, while different activities form the y-axis. Project Manager: Leadership Skills “Except for a few people who report directly to him, the Project Manager manages resources indirectly. Essentially the Project Manager is managing information and utilising systems to achieve the project objectives” (Ahuja, Dozzi, & AbouRizk, 1994). A Project Manager must have conceptual, technical, and organisational skills, apart from people management capabilities. Among other things, he/she must have: Professional knowledge and skills relating to the project domain Technical knowledge Leadership traits and motivational attributes Effective communication skills (both oral and written) Coordination skills and ability to integrate the team Managerial experience and abilities Bernard M. Bass identifies successful leaders as “capable of providing vision and a sense of mission by instilling pride and gaining the respect and trust of followers. These leaders communicate high expectations to followers and promote intelligence, rationality, and careful problem solving. In addition they treat each employee individually and give personal attention through coaching and advising.” (Allen & Gilmore, 2004, p.128). Management of Change A project manager also needs to have the ability to anticipate and provide for unexpected changes in the environment, and other aspects of project implementation such as time, cost, and resources. These skills are also needed to innovate and excel in project management to beat competition. Cleland and Ireland (2002, p.19) cite the example of Chrysler Corporation where decentralisation and an enabling environment that promotes creativity and innovation are the hallmarks of project management. When the company needs to design a new car, it selects a Project Team of about 700 staff drawn from different disciplines. The Team leader and members work directly and independently although they may occasionally consult a corporate Vice President who acts merely as a ‘godfather’. The Project Team is virtually given a free rein and let loose to conceive, design, and develop the model of a new car. It was observed that such a novel method of project management reduced the time taken for design and development by half. Kanter (1983, p.181) made an apt observation in this regard: “An innovating organisation needs a work force at all levels that has not become so stuck in the rhythm of routine jobs that it cannot easily adapt to a new drumbeat.” Project One The objective of this project is to construct a new office building. It is assumed that the project duration is six months. The resources required include construction materials such as bricks, cement, steel and structural, air-conditioning, fittings and fixtures, etc. The team would comprise of a Project Manager, Project Engineer, Purchase Manager, Work Supervisor, and an Administrative Associate who also looks after stores and inventory management. A PERT/CPM chart will be prepared to schedule, implement, review, and control the project. Project Two The objective of this consultancy project is to restructure the organisation of a university. This will be planned by analysing the existing structure, examining the current and future needs, and preparing a plan to remodel the institutional structure on modern lines. Modern management techniques display a clear tendency towards a flat and decentralised organisational structure with less of bureaucratic mechanisms and more or creative freedom and scope for innovation. Naisbitt and Aburdene (1985, p.49) observed in their path-breaking book Re-inventing the Corporation: “The hierarchical structure where everyone has a superior and everyone has an inferior surely is corrupting of the human spirit – no matter how well it served us during the industrial period.” The University will therefore have a simplified and less bureaucratic structure, with each department being autonomous, headed by a Dean and comprising of Professors, Readers, and Lecturers, each handling an area of specialisation within the same branch of study. Another parallel stream will comprise the administrative wing, headed by a Chief Administrator, and assisted by a Finance Officer, a Procurement and Stores Officer, a Personnel Officer, and a Public Relations Officer. Summary Project management has evolved as a scientific management discipline that begins with a plan and schedule, progresses through monitoring and review, and completes the tasks within the allocated resources and time frame. It takes a lot of managerial, leadership and motivational skills for a Project Manager to successfully implement a project. References Ahuja, H.N., Dozzi, S.P., & AbouRizk (1994). Project Management: Techniques in planning and controlling construction projects. New York: John Wiley & Sons, p. 1. Allen, W.R., & Gilmore, H.L. (2004, p.3). What is a manager? What Managers Do. American Management Association (e.approach). Retrieved December 15, 2005, from www.flexstudy.com ---. (2004, p.128). Understanding leadership. What Managers Do. American Management Association (e.approach). Retrieved December 15, 2005, from www.flexstudy.com Cleland, D.L., & Ireland, L.R. (2002). Project Management. New York: McGraw-Hill. Haynes, M.E. (2002). What is project management? Project Management: Practical tools for success. Canada: Crisp Publications. Kanter, R.M. (1984). The Change Masters. New York: Simon & Schuster, 181. Miller, H.W. (1999). Project Management: a structured framework. Project Management: Best Practices. Ed. Paul C. Tinnerillo. Florida: CRC Press, 23-24. Mingus, N.B. (1999). Project management essentials: Seven steps for highly effective project management. Project Management: Best Practices. Ed. Paul C. Tinnerillo. Florida: CRC Press, 4. Naisbitt, J., & Aburdene, P. (1985). Re-inventing the Corporation. New York: Warner, 49. Pottruck, D.S., & Pearce, T. (2001). Clicks and Mortar. San Francisco: Jossey-Bass, 87. Tinnerillo, P.C. (1999). Project Management: Best Practices. Florida: CRC Press. Read More