project management unit IV case study

MBA 6931, Project Management Strategy and Tactics 1

Course Learning Outcomes for Unit IV Upon completion of this unit, students should be able to:

4. Outline project activity and risk taking in the project management process. 4.1 Describe the level of risk taking and the efforts to mitigate these risks within the project planning

process.

5. Analyze productive project scheduling techniques. 5.1 Explain the project planning and scheduling techniques used.

7. Evaluate key concepts in budget preparation and management.

7.1 Describe the theoretical aspects of budgeting.

Course/Unit Learning Outcomes

Learning Activity

4.1 Unit IV Lesson Chapter 6, pp. 187-217 Unit IV Case Study

5.1 Unit IV Lesson Chapter 6, pp. 187-217 Unit IV Case Study

7.1 Unit IV Lesson Chapter 7, pp. 233-246 Unit IV Case Study

Reading Assignment Chapter 6: Activity Planning: Traditional and Agile, pp. 187-217 Chapter 7: Budgeting and Risk Management, pp. 233-246

Unit Lesson Scope, time, and risk management are truly the crux of project management. These three concepts are clearly demonstrated as you review the “Beagle 2 Mars Probe a Planning Failure” project on page 188 of your textbook. Thinking about time alone, what could the project manager of this project have done differently? The entire culture of the project starts at the beginning. In other words, the initial project coordination and the project charter not only establish the goals but also clearly identify the scope of the project. Additionally, deliverables are agreed upon as well as resources to be used and the ultimate schedule that will drive the project. Budgets are presented as well as cost levels that need additional approvals before incurring. The risks not only need to be identified, but the procedures also need to be followed if these risks move toward becoming an issue within this project. At the end of the day, a comprehensive initial project meeting establishes a solid level of two-way communication between all stakeholders. The outcome from the initial project meeting and project charter should include the elements listed below.

1. Technical scope: Establishing a technical scope provides all stakeholders with an understanding of the depth of the project. Caution needs to be exercised in maintaining a fluid scope as the project moves through the stages of completion.

UNIT IV STUDY GUIDE

Budgeting, Costs, and Risk Planning

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2. Performance responsibility: Establishing exactly who is responsible for what parts of the project is crucial as members of the team are then able to prioritize their individual responsibilities. This is particularly important with projects that have sequenced responsibilities, which means that one person’s job is dependent upon another team member completing his or her job.

3. Delivery dates and budgets: Establishing due dates as well as budgets for all parts of the job ensures full understanding for all stakeholders. It is important to gain the buy-in of all stakeholders at the initial meeting.

4. Risk management group created: Risks associated with the project need to be understood by all stakeholders and reasonable methods to reduce the risks involved with projects (Meredith, Mantel, & Shafer, 2018).

Through the initial meeting, a project charter needs to be compiled. Basically, the project charter is a written document that defines the scope of the project signaling to the project manager that there is intent to complete this project. The following elements are typically included in the project charter:

 purpose, which is a short overview of the project;

 objectives, which are the project’s goals and their priorities;

 overview, which is a detailed description of the project that includes both the technical aspects as well as the managerial aspects;

 schedules, which will include all milestones;

 resources/budget, which documents all contractual items and the cost of monitoring the project;

 stakeholders, which is a full list of stakeholders;

 risk management plan, which is a list of potential challenges that might arise; and

 evaluation methods, which is a list of methods that will be used in evaluating the project and includes monitoring, collecting, storing, auditing, and evaluating the project.

On page 194 of your textbook, a case involving the United Kingdom’s Child Support Agency clearly demonstrates how the use of a project charter could have significantly decreased their issues (Meredith et al., 2018). Putting yourself in the shoes of a project manager, what would you recommend they do now? Once the project charter is compiled and the initial project meeting is held, the project managers work toward compiling the project plan. The primary purpose of the project plan is to document the plan and schedule, including the approved scope and cost, and to communicate this to all stakeholders. Typical segments included in the project plan include the areas listed below:

 concept evaluation,

 requirements identification,

 design,

 implementation,

 testing,

 integration,

 validation,

 customer testing and evaluation, and

 operations and maintenance. In compiling a project plan, a detailed work breakdown structure (WBS) is typically used. Meredith et al. (2018) define this as a hierarchical planning system. Basically, the WBS enables the project manager to break down the project into smaller components or manageable sections. Each section is then assigned to the appropriate individuals or team for completion along with budgets and timeframes for completion. This lends itself to the compilation of the entire project schedule. This also provides the framework for structure, measurement, and control of the project. The WBS leads to the compilation of the statement of work (SOW), which is the document that identifies specific duties, deliverables, and schedules as well as pricing. This is typically used when working with vendors providing certain tasks within the overall project. Another tool used quite frequently is the request for proposal (RFP). This document is a method of asking vendors to submit a proposal for completion of a task or a group of tasks. This is necessary when the project team does not have the technical expertise or other skills necessary to complete a certain segment of the project. Many times, this involves a bidding process, and price obviously has a significant impact. Other factors include delivery dates, the reputation of the vendor, the quality of service, specific skills of the vendor,

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and matching overall goals of the project. Companies also request information to include vendor information and history, financial information, and customer references. Securing this additional information can reduce the overall risk of hiring vendors. Advancements in technology have enabled the RFP process to become incredibly efficient and streamlined both in the administration of the process as well as the execution of the system. Within the scope of project management is the management of human resources. This involves identifying the number of people necessary to complete a task and the appropriate skill set of each. The responsibility assignment matrix (RACI) is typically used for this. The RACI takes into account actions such as responsibility, accountability (approval), required consultations, and necessary communications. This matrix identifies skill sets that are necessary as well as managerial needs within the process. There are many software programs utilized to expedite the planning and tracking of the project plan, which include commercial software such as Smartsheet, Webdam, Mavenlink, dapulse, Wrike, Workzone, Asana, Workfront, LiquidPlanner and RoboHead to name a few. All include different levels of collaboration, idea management, portfolio management, requirements management, resource management, task management, and finally measurement/evaluation. Another area of significant concern is that of project risk and the subsequent management of that risk. Project risk management includes the identification of the risks involved with the project, analysis of these risks, the planning of the response, and, finally, the controlling of the risks. There is a series of qualitative and quantitative risk analyses that lend themselves to project managers planning responses to risks and finally monitoring and controlling for these risks. While the natural tendency is to reduce risk, it is inevitable as organizations change and priorities within each of the projects change. Managing these changes while maintaining deadlines and budgets is the challenge. The estimation of costs is clearly one of the challenges that is difficult to control within the project plan. Budgets are used to communicate the acceptable costs based upon company policy and/or the agreed upon costs. An approved budget acts as an approval to allocate certain resources to the project. This, of course, requires estimates of required resources, which is challenged as the organization, priorities, costs, and resource availability change. Budgeting within a project management function is a clearly identified skill within the project management function. There are several clear budgeting techniques and many iterations of this process as well. The top- down budgeting strategy relies on the experiences and opinions of managers in middle-upper-level managerial roles. Conversely, the bottom-up budgeting processes are constructed based on the WBS with the people actually doing the work and providing the input. A common iterative is the negotiation in action method, which resembles somewhat of a compromise between the top-down and bottom-up processes. This method utilizes the WBS while also taking into consideration the managerial wisdom and expertise. Additionally, through the use of the WBS, the individual who is actually responsible for the task is compiling budgetary input. In summary, the project charter establishes the culture and initial format processes. The details within the project plan ensure that all stakeholders understand the agreed upon procedures. Investing time in the compilation of these documents and processes will ensure a project that runs smoothly and fulfills the mission of the project.

Reference Meredith, J. R., Mantel, S. J., Jr., & Shafer, S. M. (2018). Project management: A strategic managerial

approach (10th ed.). Hoboken, NJ: Wiley.

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Suggested Reading In order to access the following resources, click the links below. The paper below addresses why projects tend to exceed planned timelines and budgets. The paper identifies that potential project risks are insufficiently reflected in anticipation of project success. The paper also researches how risk assessment relates to overall anticipated project success and how overconfidence on the part of project managers influences such assessments. Fabricius G., & Büttgen, M. (2015). Project managers' overconfidence: How is risk reflected in anticipated

project success? Business Research, 8(2), 239–263. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=111505261&site=ehost-live&scope=site

The book review below discusses how work breakdown structure (WBS) has emerged as a foundational concept and tool in project management. It further discusses how it is an enabler that ensures clear definition and communication of project scope while performing a critical role as a monitoring and controlling tool. Indelicato, G. (2010). Work breakdown structures: The foundation for project management excellence

[Review of the book Work breakdown structures: The foundation for project management excellence, by E. S. Norman, S. A. Brotherton, & R. T. Fried]. Project Management Journal, 41(3), 101. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=51313149&site=ehost-live&scope=site

This article abstract discusses the challenges associated with controlling project costs and maintaining budgetary responsibilities. This could in part be due to project complexities and constantly changing priorities. Sridarran, P., Keraminiyage, K., & Herszon, L. (2017). Improving the cost estimates of complex projects in the

project-based industries. Built Environment Project and Asset Management, 7(2), 173–184. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=https://libraryresources.columbia southern.edu/login?url=https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1895032608?accountid=33337