The Background And Principles Of Project Management

Published Date: 02 Nov 2017

To understand the principles of project management, we must have a basic understanding of two techniques for analysis, how to plan, schedule, and control projects. These methods are the project evaluation and review technique and the critical path method, also termed as PERT and CPM. Since its start, Lenovo was doing very well at expanding their business worldwide. Initially other companies like HP and Dell were not posing any threat to Lenovo but with time they started growing and Lenovo had to come up with new strategies. Many changes were made to the business model and a project-focused approach was used and better strategies were planned.

The basic principles of project management in any business are quite the same and can be applied universally. First of all, we must know what type of business we are starting? Is this business feasible and will it be profitable? Projects should be chosen carefully. Customers are very important. Their needs need to be understood clearly and they must be well documented and apprehended. Significant changes could be made in the project management if the client’s demand so. A feasible plan must be designed which should have a clear presentation of the possibilities, time schedules, finances and methodologies for the project.

Communication is the key to project management and must not be under estimated in any case. Team leaders must be appointed and must be properly trained. Team work is crucial for the success of project management. Lenovo established Project Management Office (PMO), which was an efficient step towards the success of project management.

Repeated evaluation at regular intervals and to keep a track of the progress is also crucial in project management. Employers and the employees must all work as a team with their roles clearly defined so that there is a scope for development and people work according to the expectations and all issues are resolved as they arise. Monitoring the progress is of utmost importance and is an important principle in project management. Start point controls must be noted to keep a track record of the progress. All records must be kept safely. Any information or data must not be lost but kept safely and shared, if needed, only with the relevant personnel. Confidentiality must be the foremost priority.

During project management, there must be a test plan. It must be validated and verified so that the actual result could be planned well in advance. Technical errors during the test plan can be avoided during the project management.

Customers must be satisfied and that is one of the main goals of project management. The products like servers, devices for data storage, accessories for computers, printing products, projectors, digital products, computing services and mobile phones or any such things must guarantee client satisfaction. Then only the business will grow and would mean success of the project management.

One of the other main principles in project management is the proactive approach. The team must be aware of the potential hazards and issues that could cause a loss in the business. If it is predicted or felt by the team that some issue is being raised it is important that the team works towards it proactively and try to avid that loss.

How did the principles behind project management systems and procedures support the success of this project?

If the principles behind project management systems and procedures are strong and have good foundation, then it is quite evident that the project management would be a success. At Lenovo, the executive clearly knew what type of business they were running. They knew that the business was profitable. Customers must be satisfied and this would lead to the success of project management. During successful and efficient project management, the clients were put first. Lenovo established Project Management Office (PMO), which was an efficient step towards the success of project management. Lenovo did show an excellent example of teamwork when they didn’t designate PMO as an administrative facility. That helped them win the award for excellent team work. Lenovo was prepared to face the challenge from their competitors like HP and Dell. They did prioritisation which was the one of the main steps for the success of project management. The office was run by a professional team and this lead to the success of the company.

Repeated evaluation was done by Lenovo to keep a track of the progress. This was a crucial step by the Lenovo Company in project management. Employers and the employees worked as a team. Their roles were clearly defined. All records were kept safely. Monitoring was done adequately.

Customer’s satisfaction was one of the main goals of project management. The products like servers, digital products, accessories for computers, devices for data storage, printing products, projectors, computing services and mobile phones or any such things guaranteed client satisfaction. Strategic implementation was done at Lenovo which was also given financial help and these steps lead to the success of the business.

Identify the most appropriate organisational structure, roles and responsibilities of participants within a project like the one described in the case study support your reasons.

Lenovo has branch offices in 66 countries all over the world. The business is spread over in 166 countries and over 25,000 people all over the world have been employed by Lenovo. So, we can assess the massive scale of worldwide business Lenovo is running. So as one would imagine, company working at this large scale would need some form of organisational structure. This would tell us how the chain of command works within the organisation.

Most appropriate organisational structure is when the company is owned by shareholders. These people will find directors who would look after the company. The directors would employ managers who would run the business on daily basis.

Five key functions of management are: planning, organising, commanding, co-ordinating and controlling. At Lenovo, the Managing Director would have the main role of running the business. His job would be to set the targets and monitor the progress of the company. The Distribution Manager would be appointed for moving the products in and out of the production house. He would supervise the drivers and look after the transport.

The Production Manager would ensure that the workflow is continuous and smooth and production is streamlined. His job role would also be to get the employees who would do the labour or the work for the company. The Sales Manager would ensure that he makes contact with customers and gets orders. Lenovo’s Accountant would control all the financial transactions at the business and he would be responsible to produce clear financial and accounts reports.

Organisation structures:

Marketing department will ensure that they do the research and planning about marketing. Customer services department will look at the needs of various clients. Human resources department main role is to recruit and select new staff for the jobs available and motivate the staff members. Administration staff would keep proper records and data safely. Information Technology department will help the staff with any technical issues and provide help and training if needed.

Use appropriate methods to identify project leadership requirements and qualities that would be required for the structure identified above.

To ensure that the project is being run successfully, it is essential that all the requirements of all stakeholders are clearly defined and understood properly. The project leader must be aware of the requirements of the project and the business, requirements of the product and the process being used to achieve the end product. In my opinion, project leadership requirements necessitate that ample time and money must be invested for a project to be successful. If different approach is being used to identify the needs and defining the requirements of the business project, then it may lead to failure in the project management. Project leadership requirements demand that that the leader of the project must have the essential qualities that would ensure that the project is running successfully.

It is essential that the project manager must have clear vision about the future and how to do the things in the future. It is also vital that the team manager can easily convey this vision to his team. Then the team will start feeling motivated and as a part of the project. Project leader must have good communication skills. In my view, communication is one of the important skills a project leader must possess. How to persuade the clients and negotiate with them will depend upon the communication skills.

Knowledge and skill are also important attributes. A project leader must know what the objectives of the business are and be able to motivate and provide guidance to the team. Project leader must be approachable. This would help the team members so that if they want to report something or discuss something they can talk to the project leader. It is vital that the project leader motivates everyone in the team. If the work of the team is appreciated, motivation can be provided in this way very easily. A project leader must be able to delegate the work efficiently and ensure that all individuals are working as a team. The project leader must be able to solve the problems efficiently and use appropriate strategies to run the project.

References:

The Principles of Project Management, M. Williams, Oreilly & Associates Incorporated, 2008

The Future of Business: The Essentials, L. J. Gitman, C. D. McDaniel, Cengage Learning, 29 Oct 2008

Project Leadership, T. J. Kloppenborg, A. Shriberg, J. Venkatraman, Management Concepts, 1 Apr 2003

Task 2

Electronic Ltd. has developed a proposal for introducing a new computerised office system that will improve word processing and inter-office communications their company. Contained in the proposal is a list of activities that must be accomplished to complete the new office system project. You have been appointed as the project manager.

Project Information about the activities is shown below.

Activity

Description

Immediate

Predecessor

Time (weeks)

Normal Crash

Cost ($000’s)

Normal Crash

A

Plan needs

-

12

10

13

17

B

Order equipment

A

10

8

112

115

C

Install equipment

B

12

9

110

116

D

Setup training lab

A

9

8

14

15

E

Conduct training

D

12

10

15

17.5

F

Test system

C,E

5

5

16

16

Required

Based on the scenario complete a project initiation document including success and failure criteria.

PID would be the main document which includes all the key information which is required to run any project in a proper way. It is essential that it is shared with all the stakeholders. It gives a clear definition to all the main parts of the project and is he strong base for the management. If the Project Initiation Document is well made then it is easier for everyone in the team to understand which way the business is going and what needs to be done. It should define the project and make it clear that what are the roles and responsibilities of the participants in the project. A Project Initiation Document should be used to get funding, if needed. And it must justify the project.

A Project Initiation Document must normally contain these:

Main goals, the scope, project organization, business case and constraints.

A. PURPOSE OF THE PROJECT

New computerised office system which would focus on inter-office communications and improved word processing.

B. BACKGROUND

The need was felt that the system needs to be changed so that there is improvement in word processing and communications.

C. PROJECT DEFINITION

PROJECT OBJECTIVES

The objectives would be to increase the productivity by using better computerised office system. It would need initial training but will increase the communication and word processing.

PROJECT SCOPE

Ordering equipment and installing equipment would be required and lot of management and planning would be needed for these tasks.

CONSTRAINTS

Setting up a training lab and providing the training is something which needs to be looked in to in further detail. There may be financial considerations. Time factor also needs to be considered.

D. INITIAL BUSINESS PLAN

First of all the needs must be planned. Team meetings and discussions with adequate communication at all levels would be the key.

E. ORGANISATION STRUCTURE OF THE PROJECT

Electronic Ltd. Will decide the roles, job descriptions and main responsibilities. The structure of the team and who will take the decisions would be finalised.

F. COMMUNICATION PLAN

All staff members would be involved in the meetings and discussions. Good communication would be the key to the success of the project.

G. PROJECT QUALITY PLAN

Quality delivered must be up to the levels of expectations and there must be control and audit processes in place.

H. PROJECT TOLERANCES

The amount of deviation that would be accepted must be defined. The goals and targets must be set.

I. PROJECT CONTROLS

Highlighting of the reports would be done during the project management. Reporting and monitoring systems would be used as project controls.

J. EXCEPTION PROCESS

As agreed, the tolerance levels would be set which defines any deviance from the set targets but if there would be any exceptions, then these must be defined.

K. INITIAL RISK LOG

Initial Risk Log would be prepared after full initial risk assessment.

L. CONTINGENCY PLANS

What measures would be taken in case there are some consequences due to the expected risks during the project.

M. FILING STRUCTURE

It is essential that a mechanism is developed that would help to ascertain that how the records will be kept and how the data would be filed and managed.

What control and co-ordination measures should be in place for a project like this?

At Electronic Ltd., targets and plans must be established properly, the performance of the business must be measured adequately. It is essential that the actual performance is measured against what was projected. And also what steps need to be taken to rectify the situation. These would be the main issues under the control measures.

All the work being done in various departments needs to be co-ordinated well. It is the duty of the project leader to ensure that all activities are interlinked and it all fits together. Content and quality of the work done, how long it takes to get the work done and what are the costs involved, all of these issues need to be co-ordinated.

Indicate the communication channels

Many communication channels could be used during this project or anywhere in the business. Most commonly used communication channels are conversations over the landline telephones, mobile phones, text messaging on mobile phones, letters, brochures, electronic mail, videos sent as electronic mail, videoconferencing, and meetings which are done face-to-face. Telephones are convenient but rarely there is a recording facility. The conversations might not be noted down and could be easily forgotten. Text messages are more reliable but can be easily misunderstood. Letters are more professional communication channels but then there may be significant delay in posting and receiving the letters. Email is now fast growing method of communication and is being widely used because it is quick, even video files can be shared and the data can be saved electronically. Video conferencing is also gaining popularity as people can chat to each other and see each other even they are in different parts of the world. If people are nearby then it is best to meet them personally and have a face-to-face meeting and discuss the business options further.

Show the network for the project.

We need to design a network for the project that would help us to define the project's path and also determine the tasks to be completed in an orderly manner. It should look at the relationship between various activities in the project and also determine the dependencies. The network diagram we would design would set up simultaneous tasks and we a valuable tool during the management of the product. A network diagram would help a business to monitor their project. It tells us if they are on time, ahead of time or behind the scheduled time. It would help us to establish benchmarks or deliverables. A network diagram would help us to ensure that the tasks are completed. It depicts a broad overlook of the path of the project.

Develop an activity schedule for the project.

Tasks

Weeks

Start

Finish

Cost

$ 000

Assignments

Notes

Plan needs

12

01.04.2013

01.07.2013

13

Names

Meetings

Order equipment

10

01.07.2013

15.09.2013

112

Names

Talk to supplier

Install equipment

12

15.09.2013

15.12.2013

110

Names

Discuss with engineer

Setup training lab

9

15.12.2013

21.02.2014

14

Names

Cost negotiation

Conduct training

12

21.02.2014

21.05.2014

15

Names

Trainer to be employed

Test system

5

21.05.2014

28.06.2014

16

Names

Final test

What are the critical path activities, and what is the expected project completion time?

Critical path activities can be explained as the tasks in a project that must start and finish well in time. This would be needed for the successful completion of the task on time. If a critical path activity is delayed, it means that the project will be running late and finish later than the scheduled time. Unless some of the activities planned in the future take less time than the normal. Critical path activities include planning of the needs, ordering of the equipment. If these are delayed then it would cause delay in the project. Installation of the equipment is also a critical path activity. Setting up a training lab and conducting training is also a crucial step in the project management. Test system cannot be overemphasised as one of the critical path activities. The expected project completion time is around sixty weeks.

Assume that you were asked to complete the project in 6 months or 28 weeks. What crashing decisions would be recommended to meet the desired completion time at the least possible cost? Work through the network, and attempt to make the crashing decisions by inspection.

Crashing decisions can be quite difficult to make. Because it means we are looking at finishing a project earlier than the scheduled time, which is not an easy task. At least one of the constraints like cost or the quality will have to be compromised in such cases. If the quality drops, then the customers will not be happy and the product might not do so well in the market. So it becomes quite necessary that the cost is the most significant parameter which could be worked upon.

Planning of the needs could be minimised from normal 12 weeks to 6 weeks. Ordering of the equipment could be allocated 6 weeks rather than 10 weeks. Installation of the equipment could be quickened to 8 weeks rather than 12 weeks. The setup of a training lab could be assigned time schedule of 3 weeks rather than normal 9 weeks. Training should be conducted for 5 weeks and that would help to save the overall time for the project completion.

Develop an activity schedule for the crashed project.

Tasks

Weeks

Start

Finish

Cost

$ 000

Assignments

Notes

Plan needs

6

01.04.2013

15.05.2013

20

Names

Meetings, cost implications

Order equipment

6

15.05.2013

01.06.2013

118

Names

Talk to supplier, cost to be decided

Install equipment

8

01.06.2013

01.08.2013

118

Names

Discuss with engineer, cost could be an issue

Setup training lab

3

01.08.2013

21.08.2013

16

Names

Cost negotiation

Conduct training

5

21.08.2014

01.09.2013

19

Names

Trainer to be employed, time is limited

Test system

5

01.09.2013

07.10.2013

16

Names

Final test

What is the added project cost to meet the 6-month completion time? State any assumptions made.

Planning of the needs was cut in time from 12 weeks to 6 weeks. In my opinion the cost would go up from $ 13, 000 to around $ 20,000. Ordering of the equipment was reduced to 6 weeks rather than 10 weeks so the cost might go up to $ 118, 000. Installation of the equipment could be quickened to 8 weeks rather than 12 weeks. Cost might go up to $ 118, 000. The setup of a training lab could be assigned time schedule of 3 weeks rather than normal 9 weeks that might raise the cost to $ 16, 000. Training should be conducted for 5 weeks and that would help to save the overall time for the project completion. But that might mean the cost rising up to $ 19, 000. These are all based on assumptions as the actual cost may vary according to the circumstances and many other factors.

Develop and a success/failure criteria.

A project is mainly undertaken to achieve the goals and further the aims of business. The processes like planning the needs, ordering the equipment and then installing them or setting up of a training lab and then conducting the training, all these processes will not be undertaken in isolation. Various stakeholders would be involved and they would be interacting. They all will have their own agendas and opinions and would need to meet and discuss their concerns. The project success or failure cannot be simply judges on the basis of how well or how badly any project was managed. Nor it can be classes successful if it finished well in time. Basically one of the main criteria for a project to be successful is that the commitment of the team involved in the project must match the commitment of the customers in the end. This is only possible if all the processes which are involved are well understood by all the stakeholders and team members. This would ensure that the information flows efficiently.

The reasons for failure of the project could be unrealistic expectations or sometimes when the requirements not clearly defined. Poor communications could have disastrous consequences. Failure to anticipate any mishaps and then inability to manage change could be some of the reasons. Lack of leadership could be a significant criteria for failure in any project.