ASSIGNMENT

SURNAME AND INITIALS: DLODLO T

STUDENT NUMBER: 21420915

SUBJECT NAME: PROJECT MANAGEMENT III

SUBJECT CODE: POM 301

DATE: 2024-04-22
 TABLE OF CONTENTS
QUESTION 1 ............................................................................................................................................ 1
1.1 Introduction .................................................................................................................................. 1
1.1.1 RFP process from inception to conclusion with the contractor ................................................ 1
1.1.2 Conclusion .................................................................................................................................. 2
1.2 Introduction .................................................................................................................................. 3
1.2.1 Purpose ...................................................................................................................................... 3
1.2.2 Conclusion .................................................................................................................................. 4
QUESTION 2 ............................................................................................................................................ 5
2.1 Introduction .................................................................................................................................. 5
2.1.1 Steenbras Hydroelectric Plant Construction Project Risk Register ............................................ 5
2.1.2 Conclusion .................................................................................................................................. 6
2.2 IT risk categories that should considered at IT project planning stages and whenever you
identify IT risks .................................................................................................................................... 7
QUESTION 3 ............................................................................................................................................ 8
3.1 Determining values using the Day Zero method .......................................................................... 8
3.2 Calculations ................................................................................................................................... 8
REFERENCE LIST .................................................................................................................................... 11
QUESTION 1
1.1 Introduction
Due to uncertainties and the complex nature of projects, project managers should be
aware of various documentation and techniques that result in the successful execution
and completion of projects. In the field of project management, clear documentation
and effective communication remain as cornerstones for the successful execution of
projects. Among other tools that facilitate the successful execution of projects, a
request for proposal (RFP) cannot be spared without attention and recognition.
According to Dobson (2020), a request for proposal is a project’s formal document that
defines the project’s requirements, objectives and scope, soliciting contractors and
vendors who meet required qualifications to actively submit their proposals for bidding
and consideration.

1.1.1 RFP process from inception to conclusion with the contractor

Significantly, an RFP opens up competition and enables an array of proposals to be
considered by project managers, therefore, it is essential in determining the right
contractor that aligns with the project. The process for an RFP from inception to
conclusion with the contractor involves the following steps.
1.1.1.1. Project Identification
In practice, a company can have several projects that can be considered for the
identification of the most appropriate initiatives. In light of this, the project identification
stage requires the company to determine the need for a project depending on the
organisation’s objectives as well as the client’s requirements (Slevin and Pinto,
2021:36).
1.1.1.2. Project Selection
Upon identification of various projects, the company is responsible for the selection of
the best project. To effectively select the most appropriate project, the company should
consider the availability of resources, strategic alignment and feasibility of the projects
(Kloppenborg, 2020).
1.1.1.3. Project Charter
A project charter is roadmap that guides the project’s scope, budget, objectives and
responsibilities for approval from the project’s key stakeholders such as clients and
sponsors (Slevin and Pinto, 2021:36). In this stage, the company should develop its

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project charter that acts as a guideline and comprising of, but not limited to the
aforementioned components.
1.1.1.4. Outsourcing decision
This stage requires the company to decide on whether to outsource a project
depending on expertise, skills and internal capacity.
1.1.1.5. Request for Proposal
Following the decision to outsource, the company should develop a detailed request
for proposal document defining the project’s requirements, scope, objectives,
evaluation criteria and deliverables.
1.1.1.6. RFP send to Contractors
After the preparation of an RFP document, the company then distributes it to all
potential vendors and contractors soliciting them to submit their proposals for bidding
and consideration.
1.1.1.7. Vendor’s decision and creation of a proposal
Depending on their capacity and capabilities, vendors and contractors evaluate the
request for proposal from the company for them to make informed decisions (Turner,
2019:349). At this point, contractors should consider their financial stability and
resource availability.
1.1.1.8. Sending proposal to the client and Selection process
In the event that contractors meet the desired minimum requirements of the request
for proposal, they submit their proposals either to the project owner or client within the
stipulated deadlines (Dobson, 2020). The client, with the assistance of a scoring team,
goes through all proposals to ensure the selection of the most appropriate vendors
that meets the desired criteria.
1.1.1.9. Awarding the best contractor
Based on negotiations and agreements, the company or project owner then selects
the most appropriate contractor who have met the predefined evaluation criteria and
award him the contract.
1.1.1.10. Project Execution
The contractor who manages to grab the offer commences the project, adhering to the
terms of the contract awarded.
1.1.2 Conclusion
In conclusion, the complex nature of projects requires project managers to be aware
of various documentation and techniques that result in the successful execution and
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completion of projects. In the field of project management, clear documentation and
effective communication remain as cornerstones for the successful execution of
projects. Among other tools that facilitate the successful execution of projects, a
request for proposal (RFP) cannot be spared without attention and recognition
(Kloppenborg, 2020). A project’s RFP is a formal document that defines the project’s
requirements, objectives and scope, soliciting contractors and vendors who meet
required qualifications to actively submit their proposals for bidding and consideration.
By following the above process, the company determines the right contractor that
aligns with the project’s predefined requirements and goals.

1.2 Introduction
Project management documentation views both the request for proposal and proposal
as essential documents that ensure the successful completion and execution of
projects within schedule and budget (Cooke, 2021). Depending on one’s viewpoint,
the two aforementioned formal documents foster the way for the commencement of
the project based on the contractor’s capacity and capabilities. This essay shall
compare and contrast the RFP and a proposal based on the purpose, initiator, content,
audience and timing.

1.2.1 Purpose
The core purpose of the request for proposal is to invite potential suppliers or vendors
to render a specific service towards project execution and completion whereas a
proposal responds to a request for proposal to pitch a service to the client.
1.2.1.1 Initiator
The request for proposal is usually initiated by an organisation or company that is
looking for the supply of materials, goods and services. In contradiction, a proposal is
initiated by the service provider responding to the request for proposal with the intent
to win the project or contract (PMI, 2019).
1.2.1.2 Content
The request for proposal contains the project’s detailed specifications, requirements,
goals and evaluation criteria that contractors must consider for them to submit
proposals. In contrast, the proposal defines the suggested solution, costs, timeline and

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approach to fulfil the requirements defined in the request for proposal and satisfy the
needs of the client.
1.2.1.3 Audience (direction of communication)
Initiated by the company looking for goods or services, the request for proposal is
directed towards to suppliers and contractors who meet the predetermined criteria for
them to render the required services or materials (Cooke, 2021). Conversely, the
direction of communication in a proposal is from the supplier or contractor to the
organisation looking for services or the supply of materials.
1.2.1.4 Timing
In terms of timing, the request for proposal is prepared at the beginning stage of the
project’s procurement process as it seeks to solicit potential contractors and suppliers
to handover their completed proposals (PMI, 2019). The submission of the proposal
response to a request for proposal within stipulated deadlines with the intent to grab
the project.

1.2.2 Conclusion
To sum up, project management documentation views both the request for proposal
and proposal as essential documents that ensure the successful completion and
execution of projects within schedule and budget. Depending on one’s viewpoint, the
two aforementioned formal documents foster the way for the commencement of the
project based on the contractor’s capacity and capabilities (Turner, 2019:349). From
the above discussion, key differences between a request for proposal and a proposal
were highlighted following the given criteria.

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 QUESTION 2
2.1 Introduction
Project risk management plays a crucial role in ensuring that risks are identified and
addresses before they become uncontrollable. On one end of the spectrum, project
risk can be defined as unexpected events, problems and uncertainties that pose an
impact on the resources, processes and technologies that are part of an undergoing
project. On the other end, project risk management refers to the entire process which
entails the identification and minimising of potential events and problems that impede
the successful execution and completion of projects (Cooke, 2021). With key reference
to the excerpt, it can be argued that the Steenbras project is prone to safety risks,
socio-economic, environmental and high costs. Below is a project risk register for the
Steenbras project indicating potential risks involved, effects, description, likelihood of
the risk’s occurrence, impact rating and responsible authority.

2.1.1 Steenbras Hydroelectric Plant Construction Project Risk Register

ID Risk Risk Risk’s effect Likelihood Impact Responsible
description of rating person
occurrence
1 Socio- The project is The High Medium Project
economic risk prone to the displacement Sponsor
displacement of people
of people leads to
when the alterations in
project their
commences. relationships
and way of
living. This
can also leads
to
landlessness,
insecurity and
psychological
stress.

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2 Safety risk The project is Water flows Low High Project
subjected to can result in Manager
water flows, floods. Floods
which if not damage
well managed, infrastructure,
can lead to property and
floods. threaten put
human life at
danger.
3 Environmental The project is Habitat Medium Low Project
risk prone to destruction Sponsor
alterations in results in
river reduced
ecosystems biodiversity,
and habitat thus, nature
destruction. to has reduced
the decline of ability to
biological sustain local
diversity and environments.
natural
ecosystems.
4 High costs The Steenbras High costs Medium High Project
Hydroelectric can lead to Manager
plant is unavailability
associated of resources
with high in time and
construction budget
costs. overruns.

2.1.2 Conclusion

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In summation, project risk management plays a crucial role in ensuring that risks are
identified and addresses before they become uncontrollable. Project risk management
refers to the entire process which entails the identification and minimising of potential
events and problems that impede the successful execution and completion of projects.
Thus, project managers need to be equipped with adequate knowledge and skills
related to project risk management to ensure the successful completion of their
projects (PMI, 2019). Empirically, the Steenbras project risk register above highlights
potential risks their effects, description, likelihood of the risk’s occurrence, impact
rating and responsible authority.

2.2 IT risk categories that should considered at IT project planning stages and
whenever you identify IT risks
The main information technology (IT) risk categories that should be considered in the
planning stages and during the lifespan of the Steenbras Project include design flaws,
technical obsolescence, changes in technical regulations, data privacy risks,
compliance risks and limited access to IT systems which can lead to reduced
productivity.

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QUESTION 3

3.1 Determining values using the Day Zero method

(a) C1 = 17 + 11
= 22 weeks

(b) D1 = 33 – 21
= 12 weeks

(c) E1 = 33 weeks

(d) E2 = 33 + 10
= 43 weeks

(e) F2 = 43 + 5
= 48 weeks
(f) The critical path is the path with the maximum number of days from the start to
the completion of a project. The critical path is A-D-E-F.
(g) Number of weeks for the critical path = 12 + 21 + 10 + 5
= 48 weeks
3.2 Calculations
(a) Cost variance (CV)
CV gauges the performance of Mega IT project in terms of costs.
Cost variance = BCWP – ACWP
A = (% of completion × Project budget) – ACWP
= (51% × 110) – 77
= -20,9
B = (% of completion × Project budget) – ACWP
= (39% × 117) – 67
= -21,37
(b) Schedule variance (SV)
SV gauges the performance of Mega IT project in terms of schedule.
Schedule Variance = BCWP – BCWS

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 A = (51% × 110) – 54
= 2,1
B = (39% × 117) – 43
= 2,63
(c) Schedule performance index (SPI)
SPI gauges the efficiency of time utilisation on Mega IT project.
𝐸𝑎𝑟𝑛𝑒𝑑 𝑉𝑎𝑙𝑢𝑒 (𝐸𝑉)
Schedule performance index = 𝐵𝐶𝑊𝑆
(% 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 × Task budget)
A = 𝐵𝐶𝑊𝑆
(51% ×110)
= 54

= 1,04
(% 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 × Task budget)
B = 𝐵𝐶𝑊𝑆
(39% ×117)
= 43

= 1,06

(d) Cost performance index (CPI)

CPI gauges the efficiency of Mega IT project in terms of cost utilisation.
𝐸𝑎𝑟𝑛𝑒𝑑 𝑉𝑎𝑙𝑢𝑒
Cost performance index = 𝐴𝐶𝑊𝑃
(% 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 × Task budget)
A = 𝐴𝐶𝑊𝑃
(51% ×110)
= 77

= 0,73
(% 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑒 × Task budget)
B = 𝐴𝐶𝑊𝑃
(39% ×117)
= 67

= 0,68
(e) Forecasted cost at completion (FCAC) using Method 1
(𝐵𝐶𝐴𝐶)
Forecasted cost at completion = 𝐶𝑃𝐼
110
A = 0,73

= 150,68
117
B = 𝑜,68

= 172,06

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Total FCAC of phase 1 = 150,68 + 172,06
= 322,71

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REFERENCE LIST
Cooke, H. S. (2021). The Importance of Risk Management Plans in Project
Management. INFO WORKS.
Dobson, M. S. (2020). Successful Project Management. 7th Ed. How to Complete
Projects on Time, on Budget and on Target. American Management Association.
Gido, J Clement JP & Baker R .2022.Successful Project Management in South Africa
2nd edition: Cengage.
Project Management III POM 2024 01 study guide. Krugersdorp: STADIO.
Kloppenborg, T. J. (2020). Contemporary Project Management. 10th Edition. Cengage
Learning.
Slevin, D. P., & Pinto, J. K. (2021). Balancing strategies and tactics in project
management. Sloan Management Review, 29(1), 33 – 41.
Turner, J. R. (2019). Five necessary conditions for project success. International
Journal of Project Management, 5(22), 349 – 350.
PMI. (2019). What is project management? USA: Project Management Institute, Inc.

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