Project Management: Cost, Time and Quality - Report Example

Project Management in Business Table of Contents Overview 3 1a. 4 1b. 6 1c. 9 2a. 11 2b. 13 3a. 16 3b. 16 3c. 18 19 References 20 Overview A projectis described as a job or task undertaken with the aim of accomplishing certain specific purpose or developing products and services in accordance with the preferences of clients or customers. In the present day context, business scenario has changed owing to different factors that include advent of technology and globalisation. Organisations are identified to incorporate two important factors that include complexity and change. In this regard, organisations are required to conduct their operations on the basis of certain factors such as productivity, profitability, competitiveness and customer-centric. A project is a contemporary procedure based on which business activities are managed as well as accomplished. Subsequently, project management plays an important role in managing resources, workforce and tasks for better accomplishment of organisational objectives in a time and cost effective manner. In this regard, a project manager is entrusted with the responsibility of seeking that project activities are conducted in a desired manner. Project managers are required to possess skills and knowledge for conducting project operations systematically. Contextually, project managers are identified to follow a certain procedure for completing a project within a desired time and cost. The processes followed by managers are identified as ‘project management life cycle’ (Lewis, 2007; Method123 Ltd, 2003). From the case scenario, it has been identified that Info-support is a hardware and software company based in Bangalore. The company has been providing IT solution services to retail companies operating in Western European region. In addition, the company is recognised to provide help desk services to clients on 24- hour basis. The company has been successful in providing required services efficiently to the clients for time zone differences, as the clients are provided with problem solution at the time of need. It has been identified that the company has been facing problems due to inappropriate organisational structure. The company has been approached by Wal-Smart for conducting a retailing software project for installing an automated Management Information System (MIS) especially Transaction Processing System (TPS). In this regard, the assignment elaborates on the role and tasks of the project manager to perform the required project operations of Info-system to implement the TPS. 1a. In a project management, a project manager is an important individual entrusted with the responsibility of ensuring that project operations are conducted in an appropriate and systematic manner. A project manager is also accountable for ascertaining that objectives of a project are accomplished based on certain specifications that include time, quality standard and budget. In addition, a project manager ensures that resources needed and people associated in a project are managed effectively. In this manner, resources are required to be allocated as well as utilised, so that wastages can be minimised. Similarly, a cordial relationship should be maintained with people associated with a project in order to conduct proper operations as a team. A project manager is also responsible for ascertaining the phases of project management life cycle that include ‘initiation, planning, executing, controlling and closing’ are successfully followed (Haughey, 2011; Baars, 2006). In this regard, the project manager of Info-support is accountable for managing resources and staff needed for the retailing software project to devise TPS. Additionally, the project operations are to be completed on a desired time and in accordance with the desired project objectives. The budgetary and quality factors are also required to be considered, so that project operations are performed in a quantifiable way. In this context, the project manager will be responsible for defining scope, documentation, time estimation, budget planning, risk analysis and team leadership among others. Leadership is a vital consideration for a project manager for effective project management. Leadership is a skill of coordinating tasks to be performed by team members of a project for achieving objectives of a project efficiently. In this regard, a project manager is needed to possess transformational leadership theory, based on which, the operations are conducted in a coordinated manner. A project manager should possess traits relating to transformation leadership that include communication, visionary and planning among others. A project manager must also possess qualities of transformational leadership that can facilitate in conducting operations in a rationalised manner by motivating others. A transformation leader is needed to have team building capabilities. In addition, the skills essential in transformational leadership is relationship building, knowledgeable and understanding abilities (Givens, 2008). A project manager is needed to possess analytical skill with the intention of formulating as well as implementing strategies based on which project operations can be accomplished effectively. Communication skill is a vital quality of leadership, a project manager possessing an effective communication skill is able to convey plans and strategies based on which operations of a project are to be conducted (Kloppenborg, 2014; Pearson Education Ltd, 2012). In this respect, as a project manager of Info-support certain leadership qualities are important for managing the operations of the project successfully. In this regard, communication skill should be possessed, so that project activities are delegated to the team members effectively. Communication skill is also important for conveying to the team about the plans and objectives of the project, so that the members are able to perform their operations in a coordinated and cooperative manner. Communicating effectively with the team members will also assist in developing trust, confidence and commitment amid the team members. Analytical skills is essential for the project manager to identify and analyse risks and project scope based on which, appropriate strategies are formulated for conducting project operations effectively. Subsequently, the project manager based on these leadership skills is able to design an effective project management structure, selection and delegation of staff and ensures that the project is delivered on the basis of scope, quality, time and budget. 1b. In the retailing software project, the project manager is entrusted with the responsibility of seeking that MIS of Info-support is automated and in this regard, the company has initially planned to develop and implement TPS. The main elements that are considered in this project are time, scope, quality standard and cost. TPS to be developed in the project is required to be completed in a six-month time along with a budget of £500,000. In addition, the project is to be managed as well as delivered by Project Steering Board. The board will comprise three members with two members representing Info-support and one member representing Wal-Smart. In this regard, the project manager will be accountable for performing different tasks that include development of project management structure, staffing as well as recruitment of team members, and ascertain that project operations are performed and accomplished in a desired manner. The board members will meet on a monthly basis for reviewing the progress of the project. Moreover, the project manager and Chief Executive will meet on a monthly or quarterly basis for discussing the different aspects related to the project. Planning is an important stage in project management. In the development of a Project Work Plan, planning plays a vital role in strategizing different stages based on which project activities are required to be performed. The Project Work Plan of Info-support will comprise different factors that include project goals, project deliverables, project schedule and supporting plans. Based on these factors, the project manager will be facilitated with the opportunity of formulating as well as implementing effective measures based on which project operations can be conducted successfully. Project Breakdown Structure (PBS) is identified as a hierarchical structure based on which, products or deliverables are produced. It provides a detailed scenario of a product and its related physical components. On the other hand, Work Breakdown Structure (WBS) provides a hierarchical structure in relation to the activities of a project (Parker, n.d.). The PBS and WBS are expected to aid the project manager and the project team to have a better knowledge about the product as well as project activities to be conducted. The Project Work Plan has been provided hereunder. PBS has been provided hereunder. WBS has been depicted below. 1c. Viability of a project is determined on the basis of accomplishment of project objectives. At the time of ascertaining viability of a project, different factors are required to be considered that include time, manpower, quality and cost. These factors are important for determining the feasibility of a project. In this regard, the retailing software project of Info-support can be appraised in terms of viability of the basis of quality, scope, time and cost (Frigenti & Comninos, 2005). In terms of cost, the project manager have accomplished the project within desired cost or budget i.e. £500,000 to ascertain the viability of the project. In addition, the value of the project on the completion and accomplishment of the project’s objectives if exceeds the estimated costs will be feasible for better sustainability. Time is another important factor based on which viability of a project can be ascertained. In this respect, the viability of the retailing software project can be ascertained on the completion of the project within the desired project time or deadline. Subsequently, the completion of the project with the accomplishment of the project’s objectives within six months will ensure that the project is feasible. The viability of the project can also be ascertained on the account of retaining key team members associated with the project. In this regard, the project comprising three members for the project steering board that include two members and one member from Info-support and Wal-Smart respectively will ascertain that the project is viable on completion. In addition, the retention of other members conducting the activities of the project will also be liable for ascertaining the project’s viability. Correspondingly, retention of the team members will ensure the viability of the project, as the team members associated with the project are having adequate knowledge about the activities of the project and required skills to conduct the activities of the project effectively. For instance, departure of team members and recruitment of new members will hamper the work plan of the project, as providing training and information to the new members will delay the overall project status. Quality is also another vital concern for the viability of the project. In this context, the project on completion will have a developed TPS based on which data base system of the company will be enhanced. Contextually, the development of TPS will ascertain in performing budgetary operations in a timely manner. Additionally, the operations of the company can be improved in terms of quality and scope (Jones, 2007; Frigenti & Comninos, 2005). In addition, there are certain tools used for measuring the success and failure criteria of a project. These tools consist of scoring models and cost benefit analysis. In the retailing software project, the aforementioned tools will be used for measuring viability. Cost benefit analysis is a technique of comparing benefits and costs. Contextually, in this project, comparing costs and benefits will assist in ascertaining the viability of the project. Based on cost benefit analysis, if the value of cost benefit is estimated to be more than 1, and then the project is determined to be viable (Heldman & Mangano, 2009). Scoring models is also an effective method of determining viability of a project. In this project, the Project Steering Board will rate project on the basis of certain criteria. In this respect, weight will be provided on the basis of importance, where a high score will depict positive outcome. In this regard, the retailing software project having high score will ensure that the project is appropriate or viable (Heldman & Mangano, 2009). In this respect, the tools that include scoring models and cost benefit analysis will be used effectively in order to measure benefit and failure criteria. 2a. Organisational structure is a plan based on which units or departments of an organisation are developed, so that business operations are conducted in an appropriate and systematic manner. In addition, organisational structure ensures that employees of an organisation are able to conduct their operations in accordance with organisational objectives. There are different organisational structures based on which departments of organisations are framed. The most common forms of organisational structures include functional organisation, project organisation and matrix organisation. In a functional organisation, the members are grouped on the basis of their function and competency. In this type of organisation, members in each department are recognised to be sharing common knowledge, expertise and responsibility. Subsequently, segregating each department in accordance with the expertise of the employees assists in sharing information effectively. Functional organisational structure is identified to have an advantage of managing resources in an efficient manner. However, in this type of organisational structure, special needs of a client cannot be met effectively owing to fact that different departments are having different interests and goals (Heldman, 2013; Meredith & Mantel, 2011). In a project organisation, team members are grouped on the basis of mission. Experts are grouped for accomplishing a desired mission based on a predetermined budget and timetable. In this type of organisation, the team members are accountable for performing their assigned tasks and report to project managers. The main advantage of project organisation is that the team members are focused on the mission or objectives of an organisation. In project organisation, pooling of resources is not conducted in an effective manner (Heldman, 2013; Highsmith, 2009). A matrix organisation is identified to be a combination of functional and project organisation. In this type of organisation, the strengths of functional and project organisations are used to develop a structure, so that operations are performed with better effectiveness (Heldman, 2013; Kuprenas, 2003). In this respect, the organisational structure that can be adopted by Info-support will be matrix organisational structure. The company with the assistance of matrix organisation will be facilitated with the opportunity of ascertaining that business operations are performed systematically. In this regard, a hierarchical structure will be followed where the employees will have to report to the project manager and the project manager will be liable to discuss the progress report with the Project Steering Board and Chief Executive of the company. The implementation of matrix organisational structure will also aid in having a better balance of power. The organisational structure of Info-support is depicted below. The members of Info-support and Wal-Smart will be liable for ascertaining that project activities are conducted in accordance with the objectives of Info-support. In this regard, the members are entrusted with the responsibility of seeking that activities of the retailing software project are performed based on the objectives of this project. The project manager will be responsible for planning and making strategies on the basis of which activities of the project are to be conducted. In addition, the project manager is responsible for reviewing the progress of the project in order to ascertain that the project is completed within desired timeframe and cost. Chief executive of the company will be liable for administering and supporting project manager to conduct operations in an effective manner. Chief executive will also be accountable for approving budget required for the project. 2b. In the present complex business scenario, organisations are required to ensure that project activities are to be conducted by the members as a team. For the development of a team, it is essential to ascertain that right individuals are selected. The selected individuals are also needed to possess positive attitude for others and have shared interest as well as commitments. Subsequently, Tuckman’s model and Gersick’s model are important team development theories based on which, teamwork in needed to be coordinated. In Tuckman’s model, four important factors include ‘forming, storming, norming and performing’. In forming, the members are grouped to perform a task. During storming, the members develop personality and structure, which lead to hostile behaviour. Group cohesion is developed in the norming phase and finally, the members are required to develop shared values to conduct a particular activity, which is identified as performing. In this respect, the team members of the retailing software project need to posses positive attitude and values for performing operations with the aim of accomplishing common objectives (Adnan & et. al., 2013; Meier, 2008; Zeitoun, 2005; Packendorff, 1995). Based on Tuckman’s model, a team is bestowed with common objectives as well as mission to perform. In this regard, team roles are to ensure that operations of a project are performed in a better communicated as well as committed manner. The role of a team is to build members with collaborative spirit and having winning attitudes, so that the objectives of a project are accomplished with harmony and efficiently. In this regard, team roles of the retailing software project are to ensure that activities of the project are accomplished within desired cost, quality and cost. Thus, the main role of the project team is to deliver the project successfully (Lohiya, 2012, Atkinson, 1999). Gersick’s model signifies that team members are needed to conduct their activities within desired timeframe as well as deadlines. The members working with a common purpose are identified to have revolutionary changes, which in turn improves group cohesion amid members (Adnan & et. al., 2013). In a project team, motivation is identified as an important factor for ensuring that activities of a project are conducted with harmony. Motivation amid team members can be developed on the basis of certain aspects that include trust, communication and relationship. In this regard, the project team of the retailing software project is needed to be motivated through effective communication. The project manager is required to communicate to the team members about the resources, time and information that are relevant with the activities of the project. Subsequently, the team members will be able to conduct their operations with coordination, trust and active participation (Al-Harbi, 2001). In this respect, project manager will be able to build an effective relationship amid team members. Building of a team also ensures that diverse talent individuals are recruited, who assist in conducting the operations with better competitiveness. Thus, there is a need for team building in order to ascertain that operations of the project are conducted effectively (Medinschi & Colta, 2009; Petty, 2009). 3a. Project Activity chart has been provided hereunder. 3b. Project performance measure appropriate for the info-support project is budget estimation. Budget estimation will provide adequate information in relation to costs that are associated with the development and implementation of the project relation to MIS. Total Cost of the Project (Budget) From the above budget details, it can be comprehended that the company with the budget of around £500,000 for completing the project in an effective manner. Based on the budgetary estimation, it can be comprehended that the company on the completion of the project will be able to have adequate profit margin. In addition, the cost of the project is estimated to be less that the cash available for the commencement of the project. As can be observed from the above-depicted table for the budget planned, the expenses are assumed to be fixed for the continuous six months period. In addition, the income is assumed to take a leap in the next months of the plan implementation, i.e. from month 2 to the later months. With the loaned amount to be repaid, the project will have to bear a certain degree of liability that would make it more important to maintain constancy in the cash flow structure. 3c. On the completion of the project, it can be ascertained that the project manager with the assistance of competent team members and appropriate allocation of resources has been able to complete the retailing software project with the desired timetable. In addition, the project manager possessing leadership skills has been able to ensure that the team members perform their desired activities in accordance with the objectives of the project. In this respect, the project manager has been able to ascertain that the team members conduct their required tasks in a motivated and committed manner. Project Completion Report 1. General Project Information Description Project Name Retailing Software Project Project Description Development of Transaction Processing Report (TPR) Project Manager Project Sponsor Baseline Actual Variance % Variance Start Date August 2014 August 2014 0 0 Finish Date January 2014 January 2014 0 0 Budget £500,000 £500,000 0 0 2. Management Effectiveness The project manager on the basis of competency level and leadership skill has been able to complete the project by developing TPS for Info-support. The project manager has faced challenges mainly in terms of resource management that include materials and human resources. In this regard, leadership skill of the project manager has led to the development of motivation, commitment and common values. 3. Lessons Learnt During the project execution phase, the project manager has been identified to be facing issues of managing resources. In this regard, the development of matrix organisational structure has assisted in managing resources successfully. In addition, matrix organisation has ensured that the team members are able to conduct their operations with a common purpose or objective. 4. Administrative Closure The retailing software project has been transferred to Info-support on the completion date on the required budget, time, scope and quality. In addition, the company on the delivery of the project will be able to conduct database management services in an effective manner. The company will also be able to develop other management information systems successfully. 5. Contract Closure In the project closure phase, different activities are performed. In this regard, the project manager at the time of project closure stage would perform activities that include transfer deliverables, finalise documentation, analyse project and reallocation of resources. References Adnan, A. & et. al., 2013. Group Development: Theory and Practice. Middle-East Journal of Scientific Research, Vol. 16, No. 10, pp. 1428-1435. Al-Harbi, K. M. A., 2001. Application of the AHP in Project Management. International Journal of Project Management, Vol. 19, pp. 19-27. Atkinson, R., 1999. Project Management: Cost, Time and Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria. International Journal of Project Management Vol. 17, No. 6, pp. 337-342. Baars, W., 2006. Project Management Handbook. DANS - Data Archiving and Networked Services. Medinschi, S. & Colta, S. A., 2009. The Importance of Team Building for the Success of a Project. TIBISCUS, pp. 224-231. Frigenti, E. & Comninos, D., 2005. Practice of Project Management. 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