Uses Of A Sound Project Management Plan

Published Date: 02 Nov 2017

Project Objectives

Ahuja, Dozzi and Abourizk (1994) stated that there have four common objectives: time, cost, quality, and good will. A scope statement as one of the most critical part of a project plays a very important role in project management. It is an essential element of any project. Project managers use an effectively scope statement to help outline the results their project will produce and the terms and conditions under which they will perform their work. It can help the rest of the project flow along with minimal problems. It should include all these information such as justification, objectives, product scope description, product acceptance criteria and constraints.

Project Planning and Control

The purpose of the project plan is to provide important information required by stakeholder’s and project team members to define, execute, and close a project. The project management plan is the outline of the overall management approach for the project. It defined how the project is executed monitored and controlled" (PMI 2004). The project plan is the formal, approved main document used to manage and control the execution of the project, and guide a project toward successful completion. It is based on project requirements and established estimates.

The project control is a process that monitoring, measuring and reporting the performance of project activities, verifying the project is continuing within scope and controlling changes to the project scope.

Sub-components of a project plan

It can be seen from this definition that a project management plan provides a formal framework for executing, monitoring and controlling a project. A project management plan may be a summary or detailed and may be composed of one or more subsidiary management plans and other planning documents. (PMI 2008, p.443)

A sound comprehensive project management plan should include plans concerning the following nine project management areas:

project integration management

project scope management

project time management

project cost management

project quality management

project human resource management

project communications management

project risk management

project procurement management

The plan in each area takes care of a significant area of project management in order to ensure the project is delivered successfully. The nine areas of project management are closely interrelated with one another.

Interrelationships between sub-components of the project plan

These subcomponents are interrelated closely to achieve the goal of project success.

Project scope: basis of project management

The primary purpose of project scope management (Answers, 2012) is to ensure that all the required work and only the required work is performed to complete the project successfully.

Project scope management includes the following:

1. Collect requirements - it will determine the project scope.

2. Define scope - it is the basis for the project scope.

3. Create the work breakdown structure (WBS) - Decompose the project deliverables into smaller, more manageable work components.

4. Verify scope - Plan how the completed deliverables of the project will be accepted.

5. Control scope - Control changes to the project scope-only the approved changes to the scope should be implemented.

Balancing project quality, progress and cost

There may be contradiction between project quality and project progress, and project cost. In general, high project quality consumers more time and resources while lower quality leads to decrease in time and cost demands. Nevertheless, poor quality may also lead to increased input of time and resources due to rejected work that has to be done again. Therefore, a fine balance should be stricken between quality, cost and progress. As for project quality, the general rule is to do as per the project contract. The project design and construction should with every certainty meet the project requirements while excessively exceeding the project requirements is not allowed because it inflates cost and reduces project progress.

Project procurement influencing project progress

Project Procurement Management is the effective acquisition of goods and services from outside the performing organization to gain the maximum benefit for the organization in context to a project. In addition to that project procurement management also helps in maintaining good buyer-seller relationship.

Project risk management throughout the project

When planning a project, it is critically important to know what the key risks are, Hendrickson (2011) said that as safety during the construction project is also influenced by decisions made during the planning and design process. Because of safety can lead to costs increased and delays of project activities, at the end result in project delay. So as a good project manager should try to ensure that the job is done right the first time and no major accidents.

Uses of a sound project management plan

According to Maylor (2010) Gantt charts as a popular tool in planning and scheduling can enable a manager to initially schedule project activities and then monitor progress by comparing planned progress and actual progress. An activity is a task or closely related group of tasks whose performance contributes to completion of the overall project.

Portfolio project management is the process of turning a list of initiatives that come from a strategy into a prioritized collection of projects and programs that are funneled through a pipeline. The result is a process that benefits the organization and reduces pressure on the resources expected to deliver the goods. There are the bullets for effective project management (Corporate Education Group, 2012):

Leadership that embraces top-down direction and upward influence

Clear strategy and priorities

Constructive conflict leading to a common voice needed to implement the strategy

Open communication

Effective coordination

Down-the-line leadership with clear accountability and authority

Project management training and development for the project team

Software useful in project planning

Clough, R, Sears, G and Sears, S. (2000) Stated that computer applications have a major impact on project planning, schedule, and control. And computer with graphics capabilities, networks are drawn on the computer screen so one person developed the plan easy for others team member to see, understand. Such as Microsoft Office including Word, Project and Excel has been widely adopted in project planning.

Methods used in project planning

A methodology is a model which project managers employ for the design, planning, implementation and achievement of their project objectives. There are different project management methodologies to benefit different projects.

Part II Case Study: Home Interior Decoration Project

Backgrounds

Interior decoration is a practice that responds to changes in the economy, organization, technology, demographics, and business goals of an organization. Interior design concerns itself with more than just the visual or ambient enhancement of an interior space; it seeks to optimize and harmonize the uses to which the built environment will be put. Thus, in the words of the U.S. Bureau of Labor Statistics, it is "practical, aesthetic, and conducive to intended purposes, such as raising productivity, selling merchandise, or improving life style."

A Decoration company is the collection of interior design, budget, construction, materials in one of the professional design company. A Decoration company is to provide decoration of technical support for the relevant owners, including the provision of designers and decoration workers, from the professional design and reliability’s point of view, enterprise mechanism for customers to create a more warm and comfortable home and the establishment of the enterprise, the agency generally with profitability. Now Decoration Company is business model design and decoration combined.

Organization Chart for Project Management

In order to successfully implement the project, the Project Managerial Division is set up to take charge of the overall management of the project. The organization chart of the Division is given as below:

Project Manager

Operation Manager

Cost Manager

Design Manager

Project Engineer-in-chief

Construction Manager

Communication Manager

Site Engineer

Site Manager

Material Department

HSE Manager

Coordinator

QA/QC

Logistics & Coordinator

Site Engineer/Supervisor

Figure 1: The organization chart of the Division

Source: The author

Project Scope Statement

Project B include Structural renovation Housing and improve, complement and perfect the function of family life, doors and windows to buy and install, space partition and cabinets, display cabinets and decoration materials and furniture purchase and installation. Construction date is from Oct, 1 2012 to Dec, 12 2012.

Work breakdown structure (WBS)

WBS clearly defines the scope of work that the contractor is supposed to carry out and deliver, thus forming the basis for project monitoring and control. According to Ahuja, Dozzi and Abourizk (1994) work breakdown structure as the most fundamental technique that been used for planning and managing a project. It is a key to successful project management. And according to Gardiner (2005) that it was an important communication tool in the planning phase of the project. Maylor (2010) stated that Work breakdown structure (WBS) as an initial planning tool that is needed to develop a list of activities, activity sequences, and realistic budget. Lock (2004) also stated that WBS should be the starting point for estimating the direct costs of the project, and the detail list of project tasks can be developed from it.

This is WBS structure of project B below:

Design and consultation stage

Collect information on site

Design

Determine the construction plan and the start time

Signing and determine the start time

Water and electricity construction phase

Concealed work

Sanitary ware, kitchen equipment installation

Wood floor processing

Wallpaper processing

Other equipment installation

House-cleaning

Electrical appliances, furniture placement

Figure 2: WBS structure of project B

Source: The author

Activity Sequence

Once the project WBS is prepared and approved by the Owner, a project process schedule can be developed on the basis of the approved WBS.

Steps in developing an activity sequence

Developing a solid activity sequence usually includes three major steps: recognizing and defining an activity, estimate the duration and resource requirements of the activity and sequencing activities defined (Greene & Stellman 2007, pp.215~218). The activities may connect with each other by output. For example, the output of one activity is the input of another activity. Such activities have a strong linearly logical connection with each other. Nevertheless, there are activities that can be carried out at the same time.

Project Progress Plan (activity sequence)

The specific project plan is given below. Project Progress Plan (Gantt chart):

Figure 3: Initial Work Network of Site Preparation

Source: The author

Figure4 :Crashing Work Network of Site Preparation

Source: The author

Figure 5:Put Buffer into Work Network of Site Preparation

Source: The author

Cost estimate

The basis of cost estimate is the approved WBS. The basic method for cost estimate is as follows: first the cost of each item is estimated; then total cost is obtained by adding the cost of each item.

Usually, the cost of each item includes the following four types of cost: equipment and material cost, construction cost, design fees and management overheads. Equipment and material cost and construction cost are subject to the market conditions. Nowadays, the prices of almost all kinds of raw materials are going up, which results in an increase in equipment and material cost as well as construction cost. Design fees and management overheads are relatively stable. Design fees are charged as per the work amount in the Urea Project while management overheads are charged according to the complexity and duration of the project as well as the price levels at the construction site. The budget of project B below shows:

Figure 6: the budget of project B

Source: The author

Control Methods

Computer Application in Project Planning and Control

Project management plan is the basis of project control and correction in case of deviation. Four major control areas is quality, progress, cost and scope, among which scope is the most fundamental because variations in project scope inevitably lead to changes in project cost or project progress. Therefore, change in project scope is usually subject to review and approval by the project manager or even the senior management of the contractor (Reiss 2004, pp.31~35).

Project B also use computer as there major way to do the project planning and control. All the Gantt chart, bar chart, s curve, etc. and progress chart done through the special software, it helps to make the work easy and more flexible.

Critical path method

The critical path is the sequence of activities that takes the longest time to complete. Any delay to an activity in the critical path will cause delays to the overall project. And according to Gardiner (2005) that it is important that to know which activities lay on the critical path and these are the activities that are most likely to cause a delay to the project schedule.

Critical path method is based on mathematical calculations and it is used for scheduling project activities. The critical path method is for the critical activities of a program or a project are identified. These are the activities that have a direct impact on the completion date of the project. It offers a visual representation of the project activities. We can see the time to complete the tasks and the overall project and tracking of critical activities.

In the project B, We monitor the project construction schedule using Critical Path Network software. This program identifies time intensive aspects of the work and identifies Crucial Task durations and sequences that affect final completion. Critical path identification is required for any project-planning phase. We updated contently with actual information when the project progresses in order to refine the activity length / project duration predictions.

Risk Management

Risk management need implemented throughout all stages of project life, not only in the planning stage. The approach for managing risks for the project includes a methodical process by which the project team identifies, scores, and ranks the various risks.

A risk is an event or condition that, if it occurs, could have a positive or negative effect on a project’s objectives. Risk Management is the process of identifying, assessing, responding to, monitoring, and reporting risks. This Risk Management Plan defines how risks associated with the Project B project will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored throughout the lifecycle of the project and provides templates and practices for recording and prioritizing risks.

In project B, we take one of the following approaches will be selected to address it:

• Avoid – eliminate the threat by eliminating the cause

• Mitigate – Identify ways to reduce the probability or the impact of the risk

• Accept – Nothing will be done

• Transfer – Make another party responsible for the risk (buy insurance, outsourcing, etc.

Conclusion

In conclusion, Part II uses the example of the Project B to demonstrate the theory of project management plan presented in Part I. Part II presents various project management tools including the project scope statement, WBS, project process schedule(activity sequence), and project cost estimate, project risk management, to shed light on what are given in Part I. From above analysis and case study, it is safe to conclude that the project mange the project management plan is the cornerstone to achieving project success.