Project Management For Business
Project Management is one of the most crucial and important topics which all organizations lay stress on. Projects help in-depth analysis that is essential for firms to evaluate. Evaluation helps in asserting of decisions whether to invest in the particular project or not. There are various appraisal techniques that are applied in order to ensure whether a project is feasible or not. Further to analyze projects, the organizational structure of the entity is considered. In this assignment, Du Telecom and Huawei Technologies Company Limited after their collaboration and their project management are discussed. Du Telecom is keenly interested in investing a project. Further in this assignment, depth analysis in context with project and company operations.Here in the topic is about project assessment and viability which is essential for all firms.
P1: Background along with principles of management: (AC1.1, M1)
Project Management in simpler terms is stated as an entire process that involves planning of all necessary actions. The important principle that covers all roles of a project well is planning, execution along with controlling. Planning acts as a foundation of all necessary actions company might need to take in future. Second, comes in after planning is an execution of all plans. Thirdly comes controlling of all actions taken. Controlling is done through the help of proper monitoring. According to Tarasi et al. (2013, p.128) has clearly mentioned that project planning helps in identification of various resources that are essential for business. Proper planning helps in laying down a road map and even helps in proper decision taking.
Du Telecom at present is willing to invest in mutual projects. There are various principles that are essential for managing the projects well. At present company is looking forward to investing in two mutually projects. The projects require an investment of £200,000 in each. The cash flow that can be easily obtained from each of project is divided into seven years. The investment amounts along with returns of projects are widely distributed in these years. Further as per returns are concerned the cost along with capital is provided as 15% on each project. Projects viability can be well assured with help of various investment techniques. Management of company seems to critically evaluate the projects well based on the principles formed by a board. There are various principles that have been clearly identified by investment as well as finance department well such as a structure of a project, the phase that defines cash flows which from above projects is assumed for seven years. Apart from these basic guidelines, the evaluation of goals, transparency of projects is well analyzed. Then what are the risk that each project is involved needs to be assessed and decisions are taken accordingly.
There are various principles that have been clearly identified by investment as well as finance department well such as a structure of a project, the phase that defines cash flows which from above projects is assumed for seven years. Apart from these basic guidelines, the evaluation of goals, transparency of projects is well analyzed. Then what are the risk that each project is involved needs to be assessed and decisions are taken accordingly.
P2: Viability of Projects through appraisal techniques (AC1.2)
In order to clearly find out the viability of each project, there are various investment techniques that are applied well. These techniques help in taking decisions that can be based on practical grounds. In reference to investment that comes around £200,000 for each of the projects, the expected return rate that can be assumed is 15%.
On basis of above information, if Net Present Value Method is considered, then results can be like:
|Particulars||Years||Project A||Project B|
|Rate of return ||15%|| || |
Table 1: Calculation of Net Present Value Method
After reviewing above table well, it can be clearly seen that Project’s A Net Present Value comes around $46788.76 which is around £ 44050.99. On second project NPV comes approximately $33733.67 which comes around £ 31771.76. On results, hence it can be clearly seen that Project A has better results in comparison with Project B. As per NPV method is concerned whichever project reflects a higher value is better. This method shows present value of the investment as per today's date. Therefore, Class A since shows higher results seems to be a better option.
Another method that is considered appropriate by many is Payback method. Based on figures given above there is payback calculation done.
|Particulars||Years||Project A||Cumulative ||Project B||Cumulative amount|
|payback period || || ||5.2|| ||5.666667|
Table2: Calculation of Payback Period Method
From above table, it can be seen that both of projects payback periods comes closer to each other. On general context payback period state's cost of investments which will be paid back to the company on investment. Class 1 seems to a better option, as it takes less time on providing returns in reference with cost.
P3: Explanation of Principles and Procedures: (AC1.3, M1)
There are various principles and procedures involved in the management of projects. The above-stated organization clearly has defined some broad principles. Velasquez and Bonham (2015, p.421) has clearly written that the principles are categorized as the commitment which describes mutual commitment that is important to the understanding of various activities along with risks that are involved in each project. Another principle that is relevant is the success, as it helps in measuring the feasibility of project well. This principle as designed by management clearly focuses on quality, the cost that is involved in projects. Apart from costs, its efficiency level is well defined in terms of returns. This principle helps in measurements of various aspects. Further one important principle that is given well by Finance Manager well is that all important factors cost, scope, quality, time must lie within equilibrium. Then comes into role play is strategy principle which describes well the sequential activities. This sequential refers to the order in which activities needs to take place (Marcelino-Sádaba et al. 2014, p.330). Lastly, important is control principle which portrays well areas such as managing of entire projects, followed by technology with an importance of employees involved in it (Telecommunications, d. 2017).
P4: Key Elements: (AC1.4, M2)
There are plentiful reasons that lie behind the termination of a project. Important key elements that are held responsible are firstly expensive. The expense is one of the important criteria. For example, if there is the consideration that in order to proceed further with any of the above two stated Projects, a company is bearing expenses that are beyond its control. Then there are hike chances of termination. Another major aspect that is considered well is the control of the project is any company fails to completely manage it (Aminbakhsh et al. 2013, p.100). There are thousands of both minor and major issues that any company needs to deal with like operations, management, employees. The top level management feels that it is not able to control well then might take actions to terminate. Many times despite everything going smooth there are chances that corporation might get better project or opportunity. Therefore it might stop a present project and switch it to a new one. This switch is ideally done on various parameters such as time consumption, resources, energy and its utilization.
P5: Identification of structure: (AC2.1, M3):
Apart from capital and land requirements, there are employees that are required by entities especially as projects are concerned. Project organization represents a structure which embroils well coordination that is followed clearly by an implementation of designed actions in reference to a project. It ultimately helps in creating an environment which fosters interactions well among team members. Camisón and Villar-López (2014, p.2892) have written well that the team members are divided as per skills, techniques, roles and responsibilities. It is well covered by the organizational structure which an entity follows. Mainly this structure is divided into three types such as functional, divisional and matrix. Within a project, there also covers various roles and responsibilities that are supposed to be duly performed by individuals. The main important roles such as administrator, control service operators, leaders, managers. Administrators are there to control and all operations that are performed till date or going to perform are recorded and checked as for whether these are going on track as desired earlier.
P6: Coordination and Control: (AC2.2, M3):
As a project Manager, there are various roles that need to be fulfilled well. The sole role involves is controlling in addition to coordinating of a project. Projects are initially controlled with help of preparing the budget. A budget helps in distribution of capital in various subheads. For example, production, marketing, sales, human resources all are various categories and accordingly capital is divided. In addition to budget, I will make sure of proper control on projects. Control can be easily done by making regular visits to production site as in at least on weekly basis.
Apart from regular visits, a check of all operation related activities will be monitored well. Further timely audit as it covers detail check of all minute activities is always considered an important step. Internal auditing if done frequently as desired such as monthly, quarterly annually helps in control of all inflows, outflows that are held in an entity in an account of the project. Along with employees working within the project, there working parameters and work performed by them will be even monitored well. All these steps help in controlling project well and meeting up deadlines.
P7: Project Assessment: (AC2.3, M3):
Further, for successful continuance of project there involves the role of project leader. The leader is assigned as it is considered as one of the most primary steps. On general context, a leader is assigned various roles. Those pupils are looked and hired as ones which have to fulfill criteria as entire project success depends on these. Since, the corporation chosen above is willing to invest a huge amount of capital in above given mutually exclusive projects. In return for success, it has sorted out some of its characteristic of a leader (Handley and Benton, 2013, p.110).
Firstly, personal along with professional integrity is well looked upon. It refers to those skills which are essential such as if there technology related project then it is essential for an individual of the same field. Then most considered one is the organization of all data in proper order. Organization of data clearly represents the monitoring, benchmarking of all relevant information. It helps in assessments and finding out any flaws which are ongoing while continuing projects. Another important quality that is looked is budget preparation. According to Nundy et al. (2014, p.270) have clearly written that preparing of budget helps in an estimation of all expenses and incomes that have already incurred till date or might incur in near future date. This helps in an accurate diversification of all actions and monetary figures that are important.
P8: Planning: (AC2.4)
Crosby and Henneberry (2016, p.1430) have very well mentioned that human resources are referred as a backbone in running of each project. Therefore there are certain agencies that are responsible for recruiting skilled workforce. Agencies like employment specialized ones, supervisory search entities and within house recruiters. All in together helps in recruiting right amount and as per requirements stated by an entity. There is always a high necessity of diversifies folks. Diversified folks are defined as those who are talented and as per requirements that are indispensable. For example, there is need of the manager that helps in managing of resources along with managing of operations. Operations likely cover well all major and minor issues that are considered relevant. Then there is the requirement of individuals such as production head which sees production requirements that monitor and checks of production levels.
Apart from marketing, sales, human resources all individuals and their work are distributed as per their skills set. However, when projects in all are considered there are representatives of same that are named as project managers. Therefore, above chosen entity needs to hire and recruit a responsible person that will be held responsible solely for success along with a failure of a project. Incompetence with its success, there are various leadership styles that are applied and considered relevant Upton et al. (2015, p.900). The important ones or that is important as per organizational structure is task oriented. This style describes all decisions to be taken as per feasibility of the project is concerned.
P9: Project Plan: (AC3.1, D1)
Project Plan is prepared so it provides guidelines about how the project needs to begin and continue further. Ideally a project plan comprise of segregation of various activities (Taylor et al. 2013, p.52). Along with various activities division a prepared plan even states well responsible person for that particular task. Then the plan covers well tenure of activities and status. Thus, management on review of a plan can always have a clear idea of work and its status.
|Company Name :||Du Telecom & Huawei|| || || || || |
|Project Name :||XYZ|| || || || || |
|Project Manager||Mr. PQR|| || || || || |
|Start Date :||February. 15. 2017|| || || || || |
|End Date:||August.10.2017|| || || || || |
|Progress Position||10%|| || || || || |
| || || || || || || |
|S.no.||Task||Responsible Person||Start Date ||End Date||Days||Status|
|1||Discussion Meeting||Mr. Alex||1-Feb||2-Feb||2||Complete|
|2||Objectives &Plans||Miss. Disousa||2-Feb||3-Feb||2||Complete|
| || || || || || || |
| ||Initials|| || || || || |
| ||Details||Mr. PQR|| || || || |
| ||Finance||Miss Disousa|| || || || |
| ||Marketing||Mrs. Jacob|| || || || |
| ||Production||Miss. Monica|| || || || |
| ||Staffing||Mr. Frank|| || || || |
| || || || || || || |
| ||Finance|| || || || || |
| ||Capital||Miss Disousa||15-Feb||20-Feb||5||Complete|
| ||Loans||Mr.Disousa||17-Feb||28-Feb||11||In Progress|
| ||Assets Purchase||Miss. Alex||28-Feb||5-Mar||6||Pending|
| ||Working Capital ||Mrs. DEF||16-Feb||17-Feb||2||Complete|
| || || || || || || |
| ||Marketing||Mrs. Jacob|| || || || |
| ||Research &Development|| ||8-Mar||8-Apr||30||Not started|
| ||Advertisement|| ||1-Aug||10-Aug||10||Due|
| || || || || || || |
| ||Production||Miss. Monica|| || || || |
| ||Raw Materials||Mr. A||25-Feb||28-Feb||3||Not started|
| ||Testing||Mr. B||28-Feb||10-Mar||10||Due|
| ||Hardware||Mr. C&D||12-Mar||15-Mar||3||Due|
| ||Software||Mrs. EFC||15-Feb||25-Feb||10||In Progress|
| || || || || || || |
| ||Staffing||Mr. Frank||15-Feb||25-Mar||38||In Progress|
| ||Recruitment|| ||1-Mar||30-Mar||29||Due|
Table3: Project Plan
On reviewing above table it can be seen that the above chosen firm has segregated well its activities. The main core activity which is essential for completion of project is Finance, marketing, staffing and Production. Thus in above plan all details with respect to all core activities are clearly given. Further status of tasks, status and person responsible for each activity is properly embroiled.
P10: Project Scheduling and various techniques: (AC3.2, D1):
On simpler project scheduling is stated as a tool that helps in communicating well the priorities of all tasks. It is usually helpful as it helps in identifying all resources, costs that are necessary to continue and thus to complete the project successfully (Hwang and Ng, 2013, p.279). There are various techniques that are specialized and considered helpful. One of the most popular and commonly used techniques by many companies is mile stone. Mile stone represented through charts are responsible in allocating activities as per time. This helps in identification of time along with creating a pressure on completing al in respect with time. Another method well followed by entities is Gantt chart. Marcelino-Sádaba et al. (2014, p.330) has mentioned that in general context Gantt chart it is a representation of activities with help of horizontal bar or through line charts. The above selected entity in order to complete its projects takes well use of relevant methods. Further, the corporate uses well various techniques that help in controlling cost of all expenses. The main important ones are budget preparation, scheduling, earned value and base value.
P11: Analysis of methods: (AC3.3)
The selected entity has very well made use of mile stone method as in measuring performance of all activities that is incorporated with in a project. There is division of all core activities initially which comprise of entire functioning of business. With this method there is a proper track of all performance that needs to be done as desired. The board or higher level can easily identify whether activities are in track or not. Further the business has even well applied Check point report. According to Xiong et al. (2014, p.485) this kind of report is easily prepared by the responsible persons that are chosen by management. The most common terms used for folks to describe in this category are named as team leaders, managers. The designated persons ultimately with their reports both weekly, monthly quarterly and annually ultimately present all their information to project manager.
P12: Explanation and Evaluation: (AC3.4, D3):
The selected entity has very well used various methods in order to continue with its projects in recent past. According to Pemsel and Wiewiora (2013, p.35) these methods are nothing but a clear cut framework of ideas that helps in establishing a view about the parameters a company functions. Apart from parameters the company ethics, raw materials it uses, creditability, its contacts all are very well considered. Apart from follow up of completion of projects there is also a need of change control. Change control is considered as an important aspect that is essential for successful completion of project. The projects which an entity or business choose to work upon usually takes time to compete. These are completely based on future perspectives; therefore there can be hike chances that there might face various changes. For example, a change can be in peoples demand, taste, preference, choices. With changing time in addition with change in pupils there can be changes in resources too. Therefore change control process is mandatory and needs to be applied.
It is subdivided into various parts. Hansen et al. (2013, p.425) has well written that firstly, proposing the change is sorted out well in front of all members of board. Secondly comes preparing a summary well, thirdly comes role of decision making. After decision making there is implementation of valid and practical decisions. Lastly, closing well with the changes made and proceeding further is preferred activity by any enterprise.
The organization stated has very well used a creative thinking that helps in controlling and studying all factors that are considered as relevant with project. Its creativity can be easily seen the concerned department has very well use its resources. For example they have used their unused space, for operations of new project after making necessary modifications and changes. Further the company has also has undergone use of its current technology such as software’s which already exists within company. These steps taken has led effective cost saving. Thus leads to enhancement of productivity.
It is concluded that project planning is one of the most important and crucial step that any entity willing to invest in a particular project undergoes. In this assignment, above the company mentioned is considering projects for enhancing its productivity is covered. There are various parameters methods that justify the use and importance and helps in decision taking in between mutually exclusive projects. It is thus concluded that since investing in a project is a huge decisions and must only be considered after in depth research and use of proper investment methods.