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PCBU: New WHS Act

Unit Code & Name BSBPMG522 Undertake Project Work

Assessment Instructions: 

ƒ There are 10 tasks and questions in this assessment. You must answer all

Question 1: Choose the different categories to identify whether they are PCBU or not according to the new WH&S Act. Write “Yes” or “No” in the left column. (2 marks)

  • Individuals who carry out domestic work in their own home (e.g. domestic chores etc).
  • A builder (including principal contractors and sub-contractors) 
  • A government department or government agency 
  • A manufacturing business 
  • A nanny working in your home for your child.
  • Individual householders who engage persons to carry out ad hoc home maintenance and repairs or other domestic work, e.g. casual babysitters. 
  • An owner-driver of their own transport or courier business 
  • A school or college

Question 2: Risk Management Scenario.

Guy and Samantha are tenants at 11 Somerville Street, Belmore Heights, which is managed by Evansdale Real Estate. Their four-bedroom property has a swimming pool. The latch on the swimming pool gate does not always lock properly. They have a 3-year-old son who has managed to open the pool gate on a number of occasions. They also have a dog that went out of the gate sometimes. They have sent a letter to Evansdale Real Estate asking for the lock to be fixed. However the landlord is unwilling to pay for a locksmith to do this. Identify three risks from the scenario. List the potential risks of the scenario. How would you handle this situation if you are the real estate manager?

Question 3: Case Study of XYZ Airline’s project. (2 marks)

A project named as “Jetsmart” engineering parts management system is renamed “Dumbjet” by aircraft engineers because the system is so difficult to use. Failure to engage the engineers and suppliers who would be the eventual users of the system into the requirements and design processes resulted in a system that the engineers deemed to be unusable once it was launched. At the same time suppliers complained that the software system is slower than the old phone ordering method. For example, engineers order at 10:00 am and the suppliers would get the order at 3:00 pm. After just a few months in operation (during which time some staff refused to use it and unions threatened industrial action), the system is dumped. In one of the comments, the XYZ CEO is quoted in a local Magazine as having said “We wouldn’t ask them what their views on our software systems were. We’ll put in what we think is the appropriate for us”. 

  • Identify all the stakeholders of this project. 
  • Who are “us” and who are “them” in the case? 
  • What risk assessment should have XYZ Management done to avoid this failure?

Question 4: Match the following items to their descriptions (2 marks)

A) Stakeholder
Responsible for managing project activities
B) Customer
Person who work in the project
C) Consultant
Responsible for the technical ideas and advice
D) Project manager
Person involved in or affected by project activities
E) Project team member
People who will use the outcome of the project

Question 5: What are the 3 project control methods? Explain with examples and mention what type of organisations or projects might use each method. (2 marks)

Question 6: List Tuckman’s 5 stages of team development. Using your project as an example, explain how your team would adapt in each stage. (2 marks)

Question 7: Construct a “flow chart” for this college admission process. Use separate page if necessary. (4 marks)

 A. Student asks for college brochure, education costs and application form 

B. College send the details 

C. Student checks the cost and makes decision to go. If the cost was high, the student wouldn’t be interested 

D. The college receives application 

E. The college analyse the student’s documents and previous qualification 

F. The college makes the decision to accept the student 

G. The college sends offer letter 

H. The student sends the fees 

I. The student apply for a visa J

. The embassy makes a decision to give visa to the student as the student meets visa requirements 

K. The student gets the visa and purchase air ticket 

L. The student flies to the new country 

M. The student gets enrolled in the course

Question 8: Project Budget Calculation: (4 marks) A. You are investing in a coffee shop project with your friend in Sydney on 2013. Your first investment was $200,000. Your investment advisor has told you that if you get 20% of return from this, it would be a good investment project. The forecast for returns for the next 4 years are follows:

2014 = $30,000
2015 = $50,000
2016 = $55,000
2017 = $60,000

Calculate the Accounting Rate of Return for your coffee shop project. Considering your advisor’s advice, should you go with this project?

B. You are planning to buy a delivery van for your postal business contract which is worth $60,000 and you expect to earn $7000 for the next six years. You will sell your van after six years because your business contract will finish after six years. The salvage value of your van at that time will be $17,000. Calculate the payback period. Find how much your profit/loss in this investment is.

Question 9: Solve these two “project cases”. (2 marks)

1) You are the project manager and have contracted with a service provider to develop a complicated software solution. This software is necessary to control the machinery equipment which your project team will develop. It is a lump-sum contract with additional incentives for meeting predefined schedule targets. The payment schedule and incentives are as follows: 

  • 10% with order 
  • 20% after submission of prototype (+ 5% if delivered one week early) 
  • 50% after product delivery (+ 5 % if delivered one week early) 
  • 20% after final product acceptance (+ 5 % if delivered one week early) 

Yesterday the company submitted the prototype to your project team. This was 2 weeks after the scheduled delivery date and 3 weeks after the date necessary to qualify for the incentive payment. This morning, the manager of the contractor approached you to ask for changes to the payment schedule. They found that their initial work and costs were much higher than originally expected and they now wish to increase the second payment to 30% and reduce the final payment to 10%. During the discussion you got the impression that the company is in serious financial trouble. 

Which of the following might be the most appropriate initial step? 

a) Offer to pay 25% now and to reduce the final payment down to 15%. 

b) Point out that the contractor is not in a position to demand a change to the contract. 

c) Demand an urgent meeting with the seller. d) Revisit the planning processes of project risk management to understand the upcoming risks in conjunction with the seller before any further decisions are made. 2) At XYZ Project., the hourly wage for semi-skilled workers is $14.00. The annual audit shows that fringe benefits cost 30% of basic wages, and that overhead costs are 60% of wages plus fringe benefits. What is the "loaded" hourly wage for a semi-skilled worker at XYZ Project? a) $27.14 b) $28.96 c) $30.03 d) $29.12



Answer

Question 1

The details of whether the following categories are PCBU or not according to the new WH&S act are listed in the following table. PCBU stands for “Person Conducting a Business or Undertaking’.  

DescriptionYes/No
Individuals who carry out domestic work in their own home (e.g. domestic chores etc.No
A builder (including principal contractors and sub-contractors)Yes 
A government department or government agencyNo
A manufacturing businessNo
A nanny working in your home for your child.No 
Individual householders who engage persons to carry out ad hoc home maintenance and repairs or other domestic work, e.g. casual babysitters.Yes 
An owner-driver of their own transport or courier businessYes 
A school or collegeNo 

Question 2 

The risks from the given scenario are, 

  1. The 3 year old son of Guy and Samantha may fell into the pool accidentally while playing. 
  2. The dog may went out of the gate and fell into the pool. 
  3. There may be security issues. Like someone may break into the house from that broken gate. 

The risk matrix based on the identified risks are, 

Frequency CONSEQUENCE

Insignificant outcome Minor outcome Moderate outcomeMajor outcomeCatastrophic outcome 
Almost certain




Likely 



Risk 1 
As the baby does not know swimming.
Possibly


Risk 2
As the dog may manage to swim. 
Risk 3
As it has catastrophic consequences like robbery, murder etc. 
Unlikely




Rare





Being a real estate manager, I would handle this situation promptly and after the initial investigation I’d either fix the issue or I’d request the tenant to fix the issue by themselves and to adjust the expense with the rent later. 

Question 3 

The stakeholders of the project are, 

  • The aircraft engineers 
  • Suppliers who are also the end users 
  • Staffs who use the system to place orders. They are likely to be the engineers 

In this case, ‘Us’ is the CEO of XYZ Airline. And ‘them’ is the suppliers who refused to use the system and the unions threated industrial action. 

XYZ could have done the following risk assessment to avoid the failure, 

  • Checking the requirements of the system
  • Talking to the stakeholders to understand what they want from the new system 
  • Quality control during the development and testing process. It would reveal the issue of late ordering during the testing phase and the system could be fixed. 
  • Taking some suitable risk management strategies and continuously monitoring the status of the risks and to keep checking whether there is any new risk raising from the project. 

Question 4

The matching of the rows is given below. The left column contains the terms and the right column contains the descriptions of the terms. 

  1. Stakeholder 
Person involved in or affected by project activities
  1. Customer
People who will use the outcome of the project
  1. Consultant 
Responsible for the technical ideas and advice
  1. Project Manager 
Responsible for managing project activities
  1. Project Team Member 
Person who work in the project


Question 5

Project management helps to bridge the gap between a project plan and the actual implementation of the plan. The purpose of project controls is to collect, analyze, and use data from the project management activities in order to make predictions about the outcome of the project. It also helps to understand the impact of time and cost constraints on the project. The formats of the data share and communication must follow standard procedure and format used for decision making and effective project management. The three project control methods are described below. 

  1. Cybernetic Control 

Cybernetic control is one of the widely used project control method. It is focused on the inputs and outputs of a project. Milestones are set across a project schedule to track the outputs during a project life cycle. Project inputs must help the process to generate the outputs and meet the deadlines specified in the milestones. During a project life cycle, project manager tracks the milestones to understand the project progress. If any outcome fails to meet a milestone, then investigation begins and suitable action is taken. It also helps to track whether the standards of an outcome have met or not at a milestone. 

This is suitable for project where the requirements are clearly defined. For example, a project on setting up a restaurant can follow this kind of project control. Simplicity is the major benefit of the approach. However, it may lack standardization.  

  1. Decision Based Control 

The project control methods works on a decision making system to make a go/no go decision. It requires a project to meet or fulfill certain preconditions before undertaking a task. It can be applied on a partial area of the project schedule. Hence, the project is suitable for such ones where there are dependencies between tasks. 

  1. Post-Performance Analysis Control 

The controls are applied once the project is completed. Instead of focusing on what happened, the approach is to focus on making sure that there won’t be any such practices in future. This is suitable for project like building, home improvement etc. 

Question 6

Tuckman’s 5 stages of team development have been described below in the context of the current project team building. 

The stages are, 

  1. Forming Stage

This is the initial stage of team building. The team members are introduced with each other and they can have a discussion on the project goal, schedule, rules and the skills, background, interests etc. 

In the current project, the project manager was responsible to form the project team. 

  1. Storming stage

During this phase, there may be conflicts among the team members. Hence, resolution requirement is very high. During such conflicting stage it is necessary to avoid confusion. 

The storming phase was when the team members had some hot discussion on the roles and responsibilities. 

  1. Norming Stage 

The team member start noticing the strength of other team members. Hence, they start to settle down for the project. Once the storming phase is high, the team members settle done. 

  1. Performing Stage 

The team members performs their roles and fulfill the responsibilities. In the current project, the team members performed their roles in a satisfactory y way. 

  1. Adjourning Stage 

After completion of the project, the team members separate. Once the project will be completed, it will release the team members.

Question 7

The flowchart is given below. 

flowchart

Question 8

  1. From the given information, 

The average profit is = $(30000+50000+55000+60000)/4=$48750

The annual investment is, $200,000. 

Hence, the accounting rate of return is, $48750/$200000=24.4%

The advisor said 20% return per year, and the accounting rate of return is more than that. Hence, it is advisable to undertake the project. 

  1. It is, 

Payback period = Investment/Annual cash inflow=60000/7000=8.57 years


Question 9

  1. As the company is in serious financial trouble but the project has already started so a suitable initial step would be, 

D) Revisit the planning processes of project risk management to understand the upcoming risk in conjunction with the seller before any further decisions are made. 

2.  The loaded hourly wage is D) $29.12 

Question 10

The network diagram is given below. 

Network Diagram

There are four alternative paths. 

Path 1, AàDàHàJàL , duration is, 76 days

Path 1, BàEàIàJàL, duration is 78 days

Path 1, BàFàKà L, duration is, 50 days

Path 1, CàGààL, duration is, 50 days

The critical path is highlighted in red.

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