Project Management

SID NO: 1031425/1

TABLE OF CONTENTS Contents Table of contents Purpose of Study 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 Introduction Objectives Safe Guard Controls Interdependency Management Process Scope Related Process Time Related Process Cost Related Process Resource Related Process Personnel Related Process Communication Risk Related Issues Learning from the project Opinion Forming Project Planning Progress Management Budget Creation Conclusion Page No 1 2 3-4 5 6±8 8 - 10 11 - 13 14 - 17 18 - 19 19 - 20 20 - 21 21-22 22 23 24 25 26 27 28 29



Project Management

SID NO: 1031425/1

Purpose of the study

The purpose of the Project management Audit was to identify and provide practical solutions and advice regarding the CCP project management issues. The

recommendations made in this report are tailored to provide guidance for the Cleveland callback 2010 project as it progresses and to help a series of domestic house owners¶ deal with the fires that took place during April 2010.


Time and Cost referred as the triple constraint. y y y y Stakeholders are person(s) who invested interest and possess influence towards the successful project. to lead and control the scope.0 Introduction A project can be described as a temporary effort to create a unique product or service which has a definite beginning and a definite end. service. Projects therefore. while involving constraints or deliverables known as Scope. involve some degree of decision making. should be managed. 3 . Projects may have certain characteristics that may include: Uniqueness of the project Projects are of a temporary timeframe Projects have a beginning and an end Projects that are successful meet the satisfaction of the stakeholders. time. practices. tools and techniques. Projects must be planned. monitored and controlled. ³A project is a temporary endeavor undertaken to create a unique product. or result´ (PMI. cost and risks of the project. Project Management involves the application of knowledge. principles. 2000). Projects include some degree of uniqueness and objectivity.Project Management SID NO: 1031425/1 1.

Project Management SID NO: 1031425/1 An example of the Triple Constraint (Stiffler 2009) 4 .

Project Management SID NO: 1031425/1 2. Organize visits from Fire Prevention Officers and replace faulty control units. y y Introducing a temporary call centre in response to the letter. as mentioned above. y Contact all upgraded household by letter giving explanation towards the control unit. the objectives does not include any responsibility and ownership defined. 5 . to any sort of cost and time is not mentioned.0 Objectives Projects. resulting in incompleteness of objectives and a disastrous start. contains objectives. The Introduction. The Cleveland Callback Project 2010 stated that their objectives were as follows: To identify the household within the United Kingdom that had been upgraded by xxx limited. y The Cleveland Callback Project (CCP) is not in accordance with planned projects in respect that.

high risk occurrence and weak conflict resolutions. absenteeism for contingency planning.0 Safeguards and Controls Project Characteristics In the Cleveland Callback Project (CCP). primarily established a Matrix structure which is defined as a group of people with similar skills pooled together to apportioned work. whereby.Project Management SID NO: 1031425/1 3. The CCP had poor Project management resulting in longer time in completion. The Fire Prevention Authority (FPA) department was defined as the owner of the project. The project was not clearly defined into processes. The project should have at least developed some degree of management phases for instance. p. phases or related tasks. the 4-D Model Project Management Phases (Maylor 3rd edition. the head of the FPA was nominated project director who dedicated very little time on the project.28) which comprises of: 6 .

analysis Who will be involved? and justification When can it finish? Deliver the project Control.decisionmaking and problem solving How should the project be managed on a day-to-day basis? start and Develop the process Assessment of How can the process be process.outcomes.changes for the future continually improved? 7 .leadership. goal definition Why is it to be done? Design the project Modeling and planning. How will it be done? estimating.Project Management SID NO: 1031425/1 Phase Define the project Key Issues Fundamental Questions Project and organizational What is to be done? Strategy.resource.

a project manager was not in existence which allowed lack of authority and responsibility for managing the project. Strategic Processes The CCP did not construct any sort of planning documents. Presently. the project director had not accomplish any form of charter documents. baseline plan or work breakdown structure.0 Interdependency Management Process General The Project is presently being managed by the head of the Fire Prevention Authority known as the Project Director. The project director possesses little skills and knowledge about project management. The stakeholders also ignored their responsibility which greatly assisted to a damaging impact on the project 8 . 4. time and cost which resulted in poor quality project management.Project Management SID NO: 1031425/1 Quality in Project Management Processes The CCP had no fundamental planning with respect to scope. therefore the stakeholders in the project did not distinguish any status of the project until the project was in devastation. This illustrates that the project was not being managed efficiently and effectively.

therefore the second meeting was then held on the 6th August in which the director of information management attended which led to another time extension. Due to the dissatisfaction of the stakeholders. the result of the first meeting led into an extension in the weekly working hours of the Information consultants from a forty hour week into a sixty hour week. continually being extended in time and cost rather than organized. 9 . the project director felt no need to panic and displayed lack of control to this extension.Project Management SID NO: 1031425/1 Interaction Management The interaction associated with the CCP was seldom and altered attendance was present. the director of the Fire Prevention Authority hired a project manager to conduct the project. This point of the project. the Stakeholders was getting more involved due to their unsatisfaction to the CCP. It was understood and expected without planning the project would be scattered. after numerous changes in the go ±live date and additional unexpected cost incurred. However. which was attended by the IT support manager. The first meeting occurred approximately one month later than the start date which was 4th May 2010. Change Management The CCP needed to implement change with immediate effect with regards to managing the project. Risk management teams and higher degree of project communication should have been implemented with immediate effect.

The project manager must also meet the stakeholder¶s expectations.Project Management SID NO: 1031425/1 The Project manager is responsible for planning. The project manager requested the project plan in the CCP from the project director which was not even created at this late stage in the project. and controlling the project with some background knowledge and standard for example The Project Management Body of Knowledge(PMBOK). McKinsey McKinsey 7-S FRAMEWORK ted f M Structure Strategy Systems Stakeholders Skills Style/ Culture Staff 10 . directing. or Projects In Controlled Environment(PRINCE2) to manage the project successfully. organizing. budgeting. Therefore. the Project manager had to implement tools and techniques such as Work breakdown structures and critical path analysis.

11 . Activity Definition The project director was not communicating on a regular basis with the persons involved with the activities of the project. Jeremy and Taz. The project director did not even establish any contingency plans towards the CCP resulting in unexpected changes and further complexity. the call centre Supervisor Basil and the Project Administrator.Project Management SID NO: 1031425/1 5. Project Scope Management allows processes required to ensure that the project includes only work required for a successful project.0 Scope Related Process General The Cleveland Callback Project (CCP) scope was to upgrade all household with faulty control units using an Information Technology approach to source and configure all data relating to the persons affected with defective control units. Sandy. Scope Development and Control The CCP had a general scope in what they wanted to be done but no formal processes were established to ensure the project was operating successfully. The persons recruited in the CCP were two Information technology consultants.

´ ensuring that enough. but only enough.formal acceptance of completed project deliverables Scope Control. work is undertaken to deliver the project¶s purpose successfully. the project manager would therefore have to introduce these inputs together with expert judgment and standards to create the scope management plan.Project Management SID NO: 1031425/1 The project manager asked for the project plan which was informally given in a raw data format.´ The project manager should therefore introduce a Scope management plan that will develop the detailed project scope and work breakdown structure with the careful use of factors and tools and techniques. more managerial components. The CCP had no charter.control changes to the project scope. y y y Turner (1996) defines project scope management as. or plan.Develop project scope Create work breakdown structure. When this is done the project manager would then be able to construct a work breakdown structure so that clearer responsibility and accuracy would be defined resulting in the scope baseline. 12 . y y Scope Verification.subdividing the project deliverables into smaller. The CCP should have had proper scope management which according to PMBOK includes: Scope Planning-plan and define the project scope Scope Definition.

Once the project manager establishes a work breakdown structure the activities should be in accordance with the plan.Project Management SID NO: 1031425/1 Activity Control In the CCP the activities carried out were not in any sort of planned document and have not been reviewed and communicated with the neither the project director nor the stakeholders. The Project manager should generally communicate and collect feedback in order to verify and update the project plan with the necessary scope changes. 13 .

would be a suggestive diagram to construct. Activity dependency planning Activity is considered a work element that consumes time and resources.0 Time Related Processes General Time is an important deliverable to consider when executing a project.´ the Cleveland Callback Project (CCP) has acknowledged that there is Analogous estimating known as top-down estimating which means using the actual duration of a previous. critical path and lead/lag time. It was mentioned that. The project has to take into account all activities. When the project manager requested the project plan the two Information technology consultants did not have such proper planning process and gave the following information: y y y y y y y y y Requirement Analysis ± 8 days Detailed design ± 5 days Interface study ± 15 days Data configuration ± 30 days Prototyping-20 days Call centre reviews ± 10days Implementation -8 days System testing -5days Call centre training ± 5 days The CCP did not construct any sort of network diagram to display the relationship of the activities mentioned above. float. Senor personnel from the fire prevention authority who did not have any sort of Information Technology background knowledge assumed that three to four month period would be sufficient time to prepare before the go-live date. which uses nodes to represent activities and arrows to represent the dependencies. predecessors. ³time was of the essence. milestones. no loops or hangers. The project manager should introduce some sort of network diagram to illustrate the starting and end point. updated information and determine the critical path.Project Management SID NO: 1031425/1 6. The CCP does not have a clear timetable but an assumption of the time taken to complete specific activities. The Precedence diagramming method. similar activity as the basis for estimating the duration of a future activity. Tuesday 31 August 2010. 14 .

Project Management SID NO: 1031425/1 An example of precedence diagram method 15 .

& 50% of T Data configuration ± J & S Prototyping-T & B Call centre reviews ± J. The working hours were extended as mentioned earlier as a technique to reduce the time duration.S Done Done Done 40% Completed 50% Completed Not yet started Not yet started Not yet started Not yet started The estimation of duration of the CCP has not been formally linked to any sort of project resource planning.T. Note also that due to ³time was of the essence´ quality practice was lacking from the project.B.B. 16 .S Implementation ±T System testing ±J.Project Management SID NO: 1031425/1 Estimation of duration Activity resource estimating involved what persons equipment and material and what quantities of each resource would be used and when each resource will be available to perform project activities. which as mentioned earlier was absent from the CCP.B.S Call centre training ± J. when the project manager asked who worked on what activities the information was scribbled down and handed over (the letters signify initials): Status of activity y y y y y y y y y Requirement Analysis ± J & T Detailed design ± T Interface study ± 50% of J.T. The responsibility of the activities should be identified from the work breakdown structure. A fast tracking could have been used which carry out activities in parallel. However.

and then developing durations for input to schedules. However. information on project scope and resources. the CCP did not proceed in that manner resulting in revised and unexpected changes.Project Management SID NO: 1031425/1 Schedule Development The format of the project schedule was poorly and informally done. Schedule Control What if the CCP had originally developed planning procedures with work breakdown structures and network diagrams? Then the stakeholders would have realized changes and updates before unexpected time extensions and would have formally noted these changes before implementation and prepare contingency or response plans. The project manager should introduce activity duration estimating. that take into account. or lead time towards the project. not showing any key events relating to milestones. 17 . also the project manager should construct this network diagram and paying attention that there is a lead time of 8 days relating to Implementation. critical activities. The original go-live date was scheduled to be Tuesday 31 August then changed to Monday 11 October and yet this date was still to be confirmed.

Cost budgeting is the allocation of the cost estimates to individual project activities. also cost incurred would have been controlled throughout the project rather than relying on the financial statement expenditure showing under cost estimation of the project.000 that was not formally documented and linked to any specific activities. Budgeting What if a budget had been done in the CCP? Then specific cost would have been allocated to specific activities and act as a managerial baseline also. This shows an analogous approach which means the finance director acted as a form of expert judgment to estimate the cost. Additionally the Budget did not take into consideration any risk relating to cost. 18 . There was no formal documentation to manage cost in the Cleveland Callback Project (CCP).Project Management SID NO: 1031425/1 7. additional cost incurred to purchase higher quality desktop PCs would have been noted earlier in the project. All team members would have consulted and knew about the original budget cost.0 Cost related Processes General Cost estimating is referred to determining the cost of human and material resources needed to complete project activities. the finance director considered a total project budget cost of 150. Cost Estimation In the CCP.

The IT support manager who had no system development experience required that the consultants report to him rather than the project director. 19 . one of the consultants had no prior fire service or call centre experience which may arise in risk of the project. Resource Planning The CCP had encountered resourcing issues due to the lack of planning. managed or maintained in respect to high cost risk of the project. the IT support manager used a top down approach to recruit the two IT consultants based upon a reputable contract recruitment agency. The cost was not reviewed.450. no one paid attention.0 Resource Related Processes.Project Management SID NO: 1031425/1 Cost Control When notified from the financial statement that expenditure was already 142. 8. causing high risks to occur. General A resource plan has not been implemented. However.

then motivating the staff would have improved. What if the project director showed strong leadership skills. a call centre supervisor and the project administrator. The project does not consider the fire and rescue personnel in respect to salary improvement cost. Team Development A project team is members who usually belong to different groups. 20 .0 Personnel Related Processes General The CCP had established an Organizational structure (appendix 1) but does not relate proper communication relationships between the project participants. size and local condition to the CCP. responsibility and job description documented. The IT support manager rather than the project director were involved in the additional recruitment. In the CCP the project team that comprise of the stakeholders. project manager. Staff Allocation There were no criteria prepared in concern with knowledge and experience to recruit additional staff for instance the IT consultants as mentioned previously. The organizational structure does not have a define authority. the fire and rescue personnel assisted full time or part time to the project along with the IT consultants. functions and are assigned to activities relating to the same project.Project Management SID NO: 1031425/1 9. The structure does not take into consideration the project scope.

update and retrieve any information. hence no project progress reports were established or communicated. Similarly. collecting. The responsibility was not given to anyone in particular to file.0 Communication Related Processes General The CCP had not consisted of any communication plan. Information Management The CCP prepares information when the finance directors request it. classifying and distributing information is not in any arranged and timely intervals.Project Management SID NO: 1031425/1 Turner (1996) included factors with motivation: y y y y y Purpose. resulting in the misplacement of any information. It was noted that Taz and Jeremy worked in the same office and yet both were unaware of certain issues. The project did not even have planned meeting agendas and again was not communicated so the attendance of the meetings varied. 21 . The information is not prepared on a timely interval.people believe in the importance of their work Proactivity ± people manage their own career development Profit sharing ± people share in the entrepreneurial culture Progression ± people value the opportunity to learn new things Professional recognition ± people want to be acknowledged for their contribution. 10.

Communication strategies would have to now be introduced and monitored to ensure effective communication.Project Management SID NO: 1031425/1 Communication Control The CCP was not monitored in the early and critical stages in the project. poor allocation of time. the organization must be committed to addressing risk management throughout the project. has a positive or negative effect on a project objective.0 Risk Related Processes A project risk is ³an uncertain event or condition that. Risk Control The project plan does not consist of any contingency plan. 11. however very late in the project as mentioned earlier a project director was hired at a very late stage in the project. tools and data sources. cost. Roles and responsibilities should be specifically assigned to individuals. as the risk occurs it is being addressed and decisions are made upon the occurrence of the risk. and resources the CCP is exposed to project management risks. The project should have a risk management plan with proper approaches. 22 . Due to lack of planning. The CCP involves numerous unknown risks which cannot be managed. if it occurs.´ (PMBOK 2004) There has been no probability or impact of risk assessment to determine the risk value of the project. Significant risk on the CCP would be unrealistic deadlines and resource constraints.

updated or retrieved from the CCP. monitoring or controlling the CCP. organizing. As mentioned the project was not completed but it is observed that the finance director was unsatisfied mainly because the expenditure was not within the budget and the project was not accounted for accurately.Project Management SID NO: 1031425/1 12. 13 . The project does not meet its objectives. for planning. There is excessive time delays and overspending. The project scope does not match the project objectives. The project team skills do not match the project requirements.0 Opinion Forming Seriously deficient There were not any project management processes existing.0 Learning from the project At the project had not yet been closed but the organization did not have any documented information stored. 23 .

0 Project Planning Refer to Section B Gantt Chart on next page.Project Management SID NO: 1031425/1 14. 24 .

25 . 2010.0 Progress management Refer to Section C Gantt chart part 1 on next page Refer to section C Gantt chart part 2 on next page Tactical options to meet the expected go live date 11th October 2010: Based on Task allocated. The outcome of what-if simulations can be used to assess the feasibility of the schedule under adverse conditions. However. It is crucial that management make use of five days from the eight leaving three days for risk occurrence. five days was required to satisfy the objective date.Project Management SID NO: 1031425/1 15. A last resort solution could be Fast-tracking the CCP which entails doing activities in parallel that would be done in sequence. Lead time can be develop when a task can start earlier then expected. then the objective time would have been achieved. Considering that the finish date was 15th October 2010. However. In order to rectify this problem it is necessary that the usage of the eight days lead time utilized. and in preparing contingency/response plans to overcome the impact of the unexpected situation. the chances of meeting the 11thOctober 2010 was crucial therefore. Another tactical option that may be used to bring the expected go-live date to the 11th October 2010 is to practice stimulation which involves calculating multiple project durations with different sets of activity assumption. as a contingency plan the use of the lead time could be a suggested option in meeting the go live date to 11th October. This was due to insufficient planning and lack of a work breakdown structure. Referring to the Gantt chart. and duration of activities the finishes dated was not met on 11th October 2010 but rather on the 15th October 2010. What if the CCP had engaged in proper time scheduling. a lead of eight days was discovered. Alternatively. as mentioned earlier Fast-tracking should be used as a last resort resulting in rework and increase risk.

Project Management SID NO: 1031425/1 16. Whereas. y To establish the resources required and the resulting schedule. In the CCP the type of cost estimating used Analogous also known as top down estimating which implies that the actual cost of a previous similar project is used as a basis for estimating the cost of the current period. However. cost budgeting is allocating the cost estimates to individual project activities. with estimating the CCP limitations were encountered: y y y y Lack of information Inexperienced estimators Changes in project during implementation Psychological factors 26 . An estimate was done (see Budgets reports) for the following reasons: y y y y To evaluate a project¶s cost and time before authorization To provide a basis for project tracking To establish a managerial baseline To provide the project manager with a tool to assess planned versus actual expectations. This type of estimating us used in the early stages of the project normally at this time the detailed information is limited.0 Budget creation Refer to Section D Report on next page Refer to Section E Report on next page The cost of human and material resources needed to complete project activities is known as cost estimating.

meaning scope. With proper controls and regular monitoring the project would have been successfully completed. 27 . time and cost would have been clarified and required updates to the project would have been adjusted before certain risk had occurred. If a work breakdown structure was developed then the triple constraints.0 Conclusion The CCP should have initially chartered the project.Project Management SID NO: 1031425/1 17. giving an idea of expectations that would enable management to meet the required objectives.

. (1996). Project Management. time and quality: two best guesses and a phenomenon. & Graham R.htm Cited 16th December 2010 28 . Scheduling and Controlling¶ 9th Edition John Wiley and Sons Inc. Harvey Maylor (2005) Project Management 3rd edition.Project Management SID NO: 1031425/1 Bibliography Atkinson. The Project Manager¶s MBA. (2001). 9th ed.wikipedia. R (1999). Project Management: A Systems approach to Planning. Lock D. (2007).org/wiki/Project_management Cited: 10th December 2010 All about Project Management Website: http://managementhelp. Gower. Aldershot ISO 10006:1997(E) Quality Management ± Guidelines to quality in Project Management Websites Sources Project Management Website: http://en. John Wiley & sons Inc. Project Management: Cost. Cohen. it¶s tome to accept other success criteria. FT/Prentice Hall Kerzner H.

Project Management SID NO: 1031425/1 29 .