Project Management in

Business

Harun Rashid
ID: 9130290

Table of Contents
Introduction.................................................................................................................... 1
Task 1........................................................................................................................... 2
Background & principle of project management....................................................................2
Appraisal of viability of Golden Ltd................................................................................... 4
Principles behind project management system & procedure......................................................6
Key elements in terminating projects & post-project appraisals.................................................6
Task 2........................................................................................................................... 7
Organizational structure, roles & responsibility of participant...................................................7
Control & coordination of a project................................................................................... 8
Project leadership requirements & qualities.........................................................................9
Planning of human resources for Metro Cammell................................................................10
Task 3......................................................................................................................... 12
Project plan & project organization..................................................................................12
Scheduling, estimating & cost control techniques................................................................14
Measurement of project performance...............................................................................16
Change control procedures & evaluation of completed project................................................17
Conclusion................................................................................................................... 18
Bibliography................................................................................................................ 19

Introduction
Project management is the application of knowledge, skills & techniques in accomplishing
different types of project in the business. The significance of project management in the business
is unavoidable. Because it helps to reduce the overall cost for the organization, ensures the
proper implementation of methods & techniques in projects & provides support in the overall
process in the projects. It also underpins much of the economic activity in the organization. The
process of project management is quite versatile & can be adopted by any organization in any
type of projects. The main success of project management in different projects in the
organizations, is widely depends on the response to the changes & adaptability of the project
managers in adapting project management techniques.

Task 1
Background & principle of project management
The use of project management started when Pharaohs made the first pyramid back in 2570: BC.
Though, theres some contradiction in this theory but there are records that there was a manager
for each facing side of the pyramids. (Haughey, 2010 ). Later then, the concept of project
management was used in the construction process of The Great Wall of China. The Qin Dynasty
221 BC 206 BC) divided the labor force into three groups for the construction of The Great
Wall Of China. Then, In 1917 Henry Gantt invented the Gantt chart for the project management.
It bought a revolution the history of project management. The first project which was completed
by using Gantt chart is Hoover Dam Project back in 1931. (Haughey, 2010 )
In 1956, the American Association of Cost Engineers was established by some of the engineers.
This association was specialized in cost structure, planning & scheduling and cost estimation of
different type of project management.
Then 1957, The Critical Path Method was invented by DuPont Corporation. This method was
introduced to find the sequence time for project planning task. This became a revolution in the
history of project management.

(Haughey, 2010 )
Back in 1958, PERT analysis was introduced to the U.S. Polaris Project. The main task of PERT
analysis is to identify the minimum time of completing any task in the project of U.S. navy.

The ultimate success of project management is depend on the implementation of the principles of
project management in different projects. (Gilbert-Jamison, 2010 ) For example, Metro Cammell
are following the six principles of project management on their project. Those principles are as
follows:
The first principle is to decide the vision and mission of the project. Metro Cammell has
determine the vision & mission of their each project. The project manager of Metro
Cammell is incorporating the corporate activities to achieve the goals of the project.
The second objective is to determine the objective of the project. In the Metro Cammell,
the project manager determine the objective of managing the various skills & resources to
attain the goals of the project.
In this stage, the project manager determines how he/she will manage the resources
available for the project.
In this stage, the projct manager of Metro Cammell determines how he will implement
strategies for the execution of the project.
The project manager Metro Cammell should align with the different departments of the
project as he is trying to combine workers 7 resources from those different departments.
In the last step, the project manager of Metro Cammell have to measure the performance
of the employees in the project to determine the success of the project.
(Gilbert-Jamison, 2010 )

Appraisal of viability of Golden Ltd.

Capital budgeting tools can be a measurement technique to assess the viability of projects. By
using the tools of capital budgeting (IRR, NVP, Discounted cash flow, Payback Period,
Profitability Index), the viability of the different projects can be measured.(Cross, 2012) These
techniques basically focus on the availability of fund in the project, financial resources of the
project & etc. These can tools measure the effectiveness & the success of the projects. So a brief
discussion on these tools of appraisal techniques of project is as follows:
Payback period: payback period helps to calculate the number of years the project will
take to generate the amount of money which was initially invested for the project. The
decision will prefer the project which will take less time to recover the initial investment
for the project.(Cross, 2012) For example, if the project A of Golden Ltd. will take 5
years to recover initial investment & if the project B will take 4 years to recover the
investment then it will be profitable & less risky to invest in the project B.
Internal Rate of return: IRR is one the capital budgeting techniques used in the
measurement of viability of the projects. It calculates yield on investment by discounting
the present value of all cash flows in opposite to the sum of all cash outflows.(Cross,
2012) For example, if the IRR of Project A of Golden Ltd is greater than the Project B of
Golden Ltd. Then, the investment on project B will be more profitable than project A.
Though, IRR doesnt always gives the accurate results.
Profitability index: Profitability index is used to determine the relationship between the
costs & benefits of a project. Theres a specific ratio to determine the PI of the project.
(INVESTOPEDIA, n.d.) For example, if the PI for Project A of Golden Ltd is less than 1
& the PI for Project B is greater than 1. Then the investment on project B will be more
profitable. The ratio for PI is as follows:
PI =

PV of future cash flows

Initial investments

(INVESTOPEDIA, n.d.)

Golden Ltd can use the Profitability Index & the IRR techniques to measure the viability of
given two projects.

Here we can see that, NPV for project A is -90,793.60. On the other hand the NPV for project B
is $45000. So, we can say that investing on project B will be more profitable.
Golden Ltd can also use the payback period method to assess the viability of the projects. The
implementation of payback period in these projects as follows:

Here, payback period for Project A = 6+ 30000/40000= 6.75 years. On the other hand, payback
period for project B = 5+ 40000/25000= 6.6 years.
So, the payback period for project B is less than the payback period of project A It means that
project B will recover the initial investment more quickly than project A.

Principles behind project management system & procedure

There is a huge number of project management systems & procedures for the organizations. For
an effective implementation of project management system, project managers must follows some
principles. The main purpose of project management is to ensure success in the scheduling,
planning & cost structure of the project. (Instantiated, 2012 ). The principles of project
management system are as follows:
Implementation of project common language which will improve the communication
between the project workers.
Increase the ownership & strategic alignment of the projects.
Implementation of flexible procedures which will be effective for the project.
Improve skills, enhance knowledge & develop the interpersonal skill among the project
employees
Tailoring the project procedures which will meet the budget time for the project
Secure higher peer group credibility in the workplace. (ProJen, 2010 )

Key elements in terminating projects & post-project appraisals

It is very important to take correct decisions in terminating projects. Because, it will ensure the
best use of resources to the best project. If correct decision is not taken in terminating project
then all the effort might be given to a project which will be not so profitable for the organization.
Theres some key elements in terminating projects. Those are as follows:

Proper organization of paper & documents

All the payments must be cleared
All the project issues must be measured
Inform everyone about the termination
Inform the clients & suppliers about the output of the project

Task 2
Organizational structure, roles & responsibility of participant
It is very important in organizations to make good relationships with internal & external people.
As the case scenario is based on construction of new tunnels. In the construction area, it is more
crucial because of having so many departments & so many people. (CIEM, 2011 ).
To ensure proper management in the projects, there has to proper identification of roles &
responsibilities of employees. Otherwise it will be difficult to maintain effectiveness in the
workplace.
There are four types of organizational structure can be seen in the projects or organizations.
Those are:

Flat organizational structure

Functional organizational structure
Product organizational structure
Geographic organizational structure. (Suttle, 2012 )

After analyzing the case scenario, it can be said that it is a functional organizational structure
project. In these type of organizations, tasks are divided into different departments & those
departments can operate independently according to the need of the project. This type of
structure is centered on job activities. (Suttle, 2012 ).
The roles & responsibility of different members of Metro Cammell is explained as follows:
Position of members
Project sponsor

Responsibilities of members
Approving the project, provide resources needed for the

Project manager
Consultant
Document supervisor
Chief civil engineer
Chief Engineer

project& owns the project.

Will be responsible for the successful completion of the project
Will provide instruction to other employees
Will ensure the proper documentation of the project
Will be responsible for the planning of the tunnel
Will be responsible for operating the machines in the

Accounting officer

construction site.
Will be responsible for the keeping records of all costs in the
construction site.

Store keeper

Will be responsible for keeping records of all machineries &

IT officer

other equipment
Will be responsible for providing internet & other IT-based
facilities in the construction site.

Control & coordination of a project

The success of the project widely depends on the planning of the project. But, to retain that
success, project managers need to have the control & coordination over the projects resources &
other factors.
To have control over the resources of project can ensure the proper implementation of project
within the budget, in time. (Bert Markgra, n.d.). If theres no control over the project, then the
cost will increase. Which will eventually hampers the success of the project.
Project managers can use some tools & techniques to have the control over the project &
coordination among the departments of a project. Those are as follows:

Tracking features
Evaluation of tasks
Cost monitoring
WBS or work breakdown structure
PERT analysis
Gantt chart
Critical path analysis

By using these techniques, the project manager of Metro Cammell can ensure the proper control
over the project of new tunnel construction.

Project leadership requirements & qualities

The success of the project depends on the leadership attributes of the project manager. It is a
must to have some leadership skills & qualities in the project manager. A good project manager
will always try to improve & enhance the qualities in him/herself.
The qualities of & requirements for project leadership are explained as follows:

Inspiring

Good interpersonal skill

Enthusiasm

Project leader must be inspiring

The project should always inspire the subordinates in the
workplace.
The project manager should have good interpersonal skill
The project always have to keep communication among the
subordinates. So, good communication skill is a must.
The project leader or the project manager must be
enthusiastic enough to run the operation
If the leader is enthusiastic, then it will also motivate the

Ability to delegate task

other employees.
The project leader must have the knowledge to delegate the

Team building ability

task to subordinates properly

It is always better to work in team. Especially projects like
Metro Cammell.
So, the project manager of Metro Cammell should have the

Problem-solving ability

team building ability & team managing ability

The project manager or leader must have excellent problem
solving ability.

(Barry, 2012 )
So, in reference to the case scenario, to construct a tunnel it is very important to have these
leadership skills for a project manager. Constructing a tunnel requires time & huge labor force.
As a result, the project manager have to deal with a lot of labors every day. He/she have to direct
them properly. So, if the project manager is not skilled enough then he/she will not be able to
direct them which will result the failure of the project.

Planning of human resources for Metro Cammell

The human resource planning for Metro Cammell is explained in the table figure below:
Position of the staffs

Project manager

Supporting staffs

N/A

Requirements

Inspiring
Enthusiastic
Problem-solving ability
Team-building ability

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Good interpersonal skills

Consultant

N/A

Document supervisor

10

Chief civil engineer

10

Chief engineer

1000+

Accounts officer

10

IT officer

10

Store keeper

20

Proper knowledge in relevant field

Good communication skill

Efficient enough
Effective enough
Monitoring ability
Sufficient computer literacy
Expert in relevant area
Experienced
Managing people
Direct subordinates
Designing tunnel
Expert in relevant area
Experienced
Leading people
Hard-working
Deal with daily problems
Good knowledge in accounting
Maintaining proper accounts
Maintaining cost schedules
Keep track of funds
Expert in relevant field
Up-to-date with the technological

advancement
Keep track of equipment
Honesty
Aware of unexpected events

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Task 3
Project plan & project organization
Project planning is basically a guided frame which helps the project managers to complete a
project within a time frame with designated resources & facilities needed for the completion of
the project. (Margaret Rouse, 2010 ). There are some activities of project planning. Those
activities are:

Establishing objectives
Identifying deliverables
Scheduling of project
Prepare supporting plans

These steps will help to implement proper project plan for the organizations. Supporting plan
may include HR planning, operational planning & etc. It is very crucial to follow proper methods
in project planning. If the proper steps are not taken, then the success of the project will be
difficult to have.
Responsibility matrix is widely used in the assigning task in functional teams. It helps the project
managers to assign task or responsibilities to different people in project management. This
responsibility matrix is also known as ARCI matrix. (David, Cleland, 2006 ). For the project
planning for Metro Cammbell, I used ARCI matrix to assign the task of different members of the
project.

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rThe Metro Cammbell project will have the following organizational structure:

Under each of the members, there will be subordinates who will be working under them for the
project Metro Cammbell.

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Scheduling, estimating & cost control techniques

A time schedule is been suggested to Metro Cammbell for their project of new tunnel:

A general budget chart is prepared to illustrate the overall cost associated with project:

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Measurement of project performance

It is very important to measure the viability of & the performance of the projects. By measuring
these viability & performance, we can determine whether the project is a failure or not. It also
helps the project sponsor & project managers to identify the cost & problems with project. Then
they can measurable steps to solve the problem or minimize the cost. (cupe projects , 2012 )
By measuring the project performance, project manager can identify the health of the project as
well as the health of the organization. It also helps in increasing the motivation among
employees. For example, Metro Cammbell tunnel project theres some union problem with the
labor force. The management found that problem while they are measuring the performance of
the project. When the management team found that problem, they immediately talked to the
union leader & solved the problem. By doing that, the management team made a good
impression on the labor force which will eventually motivate them to work more effectively &
efficiently.
There are some performance evaluation techniques for projects. Those are explained as follows:
Highlight report: The project manager make this report to inform the management board
about the progress of the on-going project.
Exception report: There are always exceptions or unfortunate events happening on the
projects. When an unfortunate event occurs on the project, the project manager make this
report to the management board.
Milestone chart: Every project have some milestones & goals. Basically, by making these
chart, will help the project managers to identify the milestones & standards for the
projects.
S-curve chart: This is graphical representation of cost occurred in the project. By making
this chart, project managers can understand when the project occurs the most costs.
(cupe projects , 2012 )

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Change control procedures & evaluation of completed project

Change control is one of the most important part of project management. In this changing world,
it is certain that every project will face unavoidable & unexpected events. These unexpected
events will force the project managers to change the procedure & other techniques of
implementing project works. So, it is very crucial to find the each changes in the project to be
evaluated properly.
The change in control means that the changes must be well-defined, checked & approved by the
authority before the implementation. (Haughey, 2011 )
There are four steps in change in control. Those are:
Proposing the change: This process gives the authority to each & every individual of the
project even to customers to offer a change in the project to the management board.
Anyone, who can feel the change in the project, can propose the change to the authority.
Summary of impact: This part is done by the project manager. The project manager
evaluates & summarize the impact of the changes in the project & notify the
management board.
Decision: After analyzing the impacts, the decision will be taken that whether there will
be any change or not. It there will be any changes then, does that change need any
modification or not?
Implementing the change: after taking the decision, the change is being implemented by
the project manager & the subordinates.

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Conclusion
In this project, we get the opportunity to implement the theoretical knowledge of project
management. So, for the success of the project it is very important to follow the measures that I
have discussed. This will help the project create the proper work-environment, proper evaluation
of employees, management & the project, effective communication with shareholders,
stakeholders & customers.

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Bibliography
Barry, T. R., 2012 . Project management resources. [Online]
Available at: http://www.projecttimes.com/articles/top-10-leadership-qualities-of-aproject-manager.html
Bert Markgra, n.d. Project Controls & Quality Control Programs/Methods. [Online]
Available at: http://smallbusiness.chron.com/project-controls-quality-controlprogramsmethods-19385.html
CIEM, 2011 . [Online]
Available at: http://professionalprojectmanagement.blogspot.com/2011/02/projectorganizational-structure-roles.html
Cross, V., 2012. Techniques in Capital Budgeting Decisions. [Online]
Available at: http://smallbusiness.chron.com/techniques-capital-budgetingdecisions-23638.html
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Available at: http://www.projectsmart.co.uk/the-six-principles-of-projectmanagement.php
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Haughey, D., 2011 . What is Change Control?. [Online]
Available at: http://www.projectsmart.co.uk/what-is-change-control.php
Instantiated, 2012 . Project Management Principles. [Online]
Available at: http://www.instantiated.ca/home/Contracting/Project_Management.html
INVESTOPEDIA, n.d. Profitability Index. [Online]
Available at: http://www.investopedia.com/terms/p/profitability.asp
Margaret Rouse, 2010 . project planning. [Online]
Available at: http://searchcrm.techtarget.com/definition/project-planning
ProJen, 2010 . Project management procedures & systems. [Online]
Available at: http://www.projen.co.uk/downloads/Project%20Man%20Proc%20&
%20Systems.pdf
Suttle, R., 2012 . Types of Organizational Structure in Management. [Online]
Available at: http://smallbusiness.chron.com/types-organizational-structuremanagement-2790.html

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