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Managing ProjectsProject management for VobienLtd. and IBEK Ltd.

Individual Assignment Report - I!""#

By Nguyen Hai Khanh MyStudent ID: 119163906

International School of Management andEconomics

National Economics University

Hanoi !cto"er #01#

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Table of Contents

TASK 1: the case of Vobien Ltd....................................................................................................2

1. The network diagram using activity on the node..................................................................2

2. The timing of activities and total float..................................................................................5

a. The forward pass...............................................................................................................5

b. The backward pass............................................................................................................5

c. The float............................................................................................................................6

3. The project duration and critical path...................................................................................6

. The project earliest completion date.....................................................................................6

5. !hange in activities" duration and its effect on project.........................................................6

6. The limitations of network diagram.....................................................................................#

APPENDICES................................................................................................................................$

%ppendi& 1.1................................................................................................................................$

%ppendi& 1.2................................................................................................................................'

TASK 2: the case of IBEK Ltd....................................................................................................11

(&ecutive )ummary...................................................................................................................11

*ajor +indings...........................................................................................................................11

1. ,roject objectives............................................................................................................112. +easibility study..............................................................................................................11

3. The ,roject -ife !ycle ,-!/.........................................................................................12

. ,roject manager skills and competencies.......................................................................1#

!onclusion.................................................................................................................................1$

APPENDICIES............................................................................................................................1'

%ppendi& 2.1..............................................................................................................................1'

%ppendi& 2.2..............................................................................................................................20

%ppendi& 2.3..............................................................................................................................21

%ppendi& 2...............................................................................................................................22

%ppendi& 2.5..............................................................................................................................23

E!EENCE...............................................................................................................................25

ooks........................................................................................................................................25

1

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nternet......................................................................................................................................25

TASK 1

The case of Vobien Ltd.

This part will present one of different tools used in project planning and control 4 the network

diagram and its details of activities timing floats duration as well as the critical path. There will

also be some e&amples of analying the effect on the whole project duration. n the other hand

limitations of this tool are also given.

1. The net"o#$ dia%#a& 'sin% acti(it) on the node

7Notes:

EST (arliest start time

E!T (arliest finish time

LST -atest start time

L!T -atest finish time

8on9critical path

!ritical path

2

L!T!loatLST

Acti(it) Identifie#

ES D'#ation E!T

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Figure: Vobien Ltd. Project Network diagra

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2. The ti&in% of acti(ities and total float

a. The fo#"a#d *ass

+orward pass must be the first to accomplish. The start time is ero. The formula for forward pass

calculations is

EST = EFT of preceding activity

EFT = EST + activity duration

+or e&ample the ()T of activity ! is e:ual to (+T of its preceding activity / which is #.

%ctivity !"s earliest finish time will be # plus # its duration/ are 1. ;hen there is more than one

task start at the same time means that have the same ()T/ the following activity"s ()T e:ual to

the highest of preceding (+T. n the diagram < has four preceding activities = > ?/ and =

has the highest value of (+T is 26. Therefore the ()T of < is 26.

b. The bac$"a#d *ass

t starts the calculations at the last activity in the network and working backward subtracting

the succeeding duration of an activity from the calculated ()T of the activity.

LST = LFT activity duration

LFT= LSTof next activity

;hen multiple activities converge previous activity"s -+T e:uals to the lowest of succeeding

-)T times. (&ample %ctivity 8 has two successors @ and ,/. The -)T of @ is lower than ,

0A2/ hence the -+T of 8 is 0.

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c. The float

t is the amount of time that an activity can delay without affecting the whole project.

Float= LFT EST activity duration = LFT EFT

(&ample The float of activity , B 5 4 0 4 2 B 5 4 2 B 3 days/

The project float is presented in a tabular please see %ppendi& 1.1/.

+. The *#o,ect d'#ation and c#itical *ath

CProject duration is te elapsed ti!e fro! project start date troug to project finis dateD

"ide!an 2002/. n this case the project starts from activity % and ends at activity E. The

duration of this project is actually the latest finish time of E which is 50 days.

#Te critical pat is defined as te series of activities tat ave $ero float% Te critical pat

al&ays runs troug te project fro! te first activity to te last activity% 'ctivities &it $ero float

are on critical pat( urke 2003/. >ence the critical path in this network is A-B-C-!--K-L-

/-N-0--.

. The *#o,ect ea#liest co&*letion date

The project needs 50 days to complete therefore with 5 days work a week no holidays/ it will

take 10 weeks in total. f the project starts on *onday +ebruary 2013 the earliest date they can

finish it is +riday 12 %pril 2013 please see %ppendi& 1.2 for =antt chart and the calendar/.

3. Chan%e in acti(ities4 d'#ation and its effect on *#o,ect

a. %ctivity ( is delayed 1 day

5

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t will not affectto the whole project because activity ( has 2 days of float more than 1 day

delayed/ and it is not on the critical path.

b. %ctivity , is delayed 1 day

, also has 3 days float and not be in the critical path hence this delaying will not affectto the

project"s duration.

c. %ctivity F is completed 1 day early

%ctivity F is on the critical path of this project with no float then if F completes 1 day earlier the

entire project also will finish 1 day earlier.

5. The li&itations of net"o#$ dia%#a&

,eople may attach special important to the critical path hence controlling the balance of project"s

time may not fle&ible and effective.

n fact the network diagram only can state the time without covering other resources such as

skills human finance etc. which are important as well to have a good project planning.

f the project is huge with a lot of comple& tasks it will be a big difficulty for the project manager

to plan and control it well. esides other people also may not fully understand the diagram.

,roject manager may make mistake by calculating wrongly the precedence and durations or

prone to underestimate time for activities which leads to behind schedule and costs are much

higher.

)"ord count: ** &ords,

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APP!N"#$!S

A**endi6 1.1

Total float and project float for each activity are calculated as below

Acti%it& Tota' f'oat

% 0

0

! 0

G 5

( 2

+ 0

= 0

> 6

#

? 6

< 0

- 0

* 0

8 0

@ 0

, 3

F 0

E 0

Project f'oat 27

#

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A**endi6 1.2

n 2013 +ebruary has only 2$ days. +ollowing is the timing of the process

8ee$ /onda) T'esda) 8ednesda) Th'#sda) !#ida)

Fe-ruary ./0

1 start/ 5 6 # $

2 11 12 13 1 15

3 1$ 1' 20 21 22

25 26 2# 2$

1arc ./0

5 5 6 # $

6 11 12 16 1 15

# 1$ 1' 20 21 22

$ 25 26 2# 2$ 2'

'pril ./0

' 1 2 3 5

10 $ ' 10 11 12 finish/

,roject ()T B 50 days B 10 H 59day9work weeks B !#ida)9 12 A*#il 21+

Iobien project"s =antt chart

$

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!ritical path8on9critical path

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TASK (

The case of #)!K Ltd.

E6ec'ti(e S'&&a#)

(< -td. is a company specialiing in supplying of specialist auto parts to motor industry. Their

area served includes regional national and international. !urrently the company trades from a

single main warehouse 4 also includes office accommodation with the area of 25000 mJ. %s a

part of e&pansion strategy they make a decision to open a new building with the same structure as

the current one. n order to be successful the company needs a precise project with good

management. This report will present a detail plan and management for this project covers and

applies

The four phases of the project life cycle.

,rocesses leadership administration and control problems associated with managing the

lifecycle.

/a,o# !indin%s

1. P#o,ect ob,ecti(es

n this case the company wants to concentrate serve their large global organiation with a larger

area of 35000 mJ. The project needs to be ensured to open on time and within budget as well.

2. !easibilit) st'd)

C' feasi-ility study is designed to provide an overvie& of te pri!ary issues related to a -usiness

idea% Te purpose is to identify any #!a2e or -rea2( issues tat &ould prevent your -usiness

fro! -eing successful in te !ar2etplace% 3n oter &ords4 a feasi-ility study deter!ines &eter

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te -usiness idea !a2es senseD K;!! chapter 5/. %s in the scenario the company has been

successful since 200# means that they already have the good foundation e&perience and skills.

*oreover they already ac:uired the building and had the plan to apply the old structure so they

did have the technical e&pertise to accomplish the project. ecause the company has a new target

consumer of the global organiations therefore assume that this new building is place in another

country. They want to be also successful in international environment. Thus the project is :uite

realistic and possible to implement.

+. The P#o,ect Life C)cle ;PLCowever this report will use the four phase from urke 2003/ C a four pase

life cycle tat passes troug four pase eadings: concept and initiation pase4 design pase

and develop!ent pase4 i!ple!entation and co!!ission and andover paseD.

a. Conce*t o# Initiation Phase

!ost 4 benefits analysis

C5ost and -enefits analysis !eans tat identifying4 specifying and evaluating te costs and te

-enefits of te proposal over its projected lifeti!eD 9 +ield and

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%ppointing project team

The project in order to success needs a good team with high spirit of responsibility and

corporation. ;orking as a team will support each person in technical issues and improve the

ability of solving a problem. ,eople share works and skills would get the task done faster and

more efficient. n this case the project team of (< initially has a clearly understanding of the

project objectives and goals. (ach member also has to have right knowledge skill technic and

e&perience in organiing. +urthermore the good communication and negotiation are very

important as well. )pecially each person must have trust from other members.

b. Desi%n o# De(elo*&ent Phase

uilding design

%lthough (< has decided to apply their old structure the new building is :uite much larger. )o

the company can think of which function they should e&pand is that the office the warehouse or

bothM %ssuming that (< choose to increase the area used for storage to increase the supply

volume for their large global organiations and keep the office area the same. >ence the

company may need more warehouse staffs. To have a general idea and manage the whole project

processes the team needs to provide a ;ork reakdown )tructure ;)/. t is Cte &or2 of a

project is divided and su- divided for !anage!ent and control purposesD Eodney Turner 1''3/.

The ;) for (< has five stages which is the structure application development evaluation

and review finaliing the building and organiing people please see %ppendi& 2.3/

)chedule

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Se6uencing tas2s ased on the major steps in ;) the project team will determine the

estimated duration and the resources need. %fter that the timing of start and end is calculated. The

=antt chart is the clearest way to state the project"s duration please see %ppendi& 2./.

Ti!e !anage!ent To control and monitor the time spent for each task the manager has to record

the actual used time of the activities from that if there is any changes he can clarify and update

all timing of activities hence responding :uickly and make right decisions. *oreover some

strategies will be given out to avoid the delay as well.

udgets

Total project budget is the aggregation of costs e&penditures and overheads allocated to the

project. ecause (< is a motor industry supplier company they have cash in hand therefore

the fund to do this project is available in the business. %ccording to ?oseph ,hillips 2010/ there

are three ways to estimate the project budget ballpark estimate budget estimate top9down/ and

definitive estimate bottom9up/. %t first team should consider the b'd%et esti&atemethod which

using e&perience from a similar project and then apply to their current case. %fter that they can

use the definiti(e esti&ateway this method is more accurate because its calculation based on the

;) of the project.

Eisk management

Eisks always lengthen times increase costs and reduce the outcome of delivery. The risk

planning is important because it helps us to avoid or reduce those bad affects. %ccording to +ield

and

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The risks that (< project could face up with can be

*isk T&+e of risk *es+onse

!onflict between teammembers

!ontrollable

Eeducing by develop and

maintain a good relationshipwith team members create

motivation

The client company suddenly

changes their objectivesLgoalsKncontrollable

%ccept the risk change the

plan and schedule if possible/

The key member sub9

manager/ :uit off the project

because of health problem

!ontrollable @utsource recruitment

(lectrical leakageLfire KncontrollableTransferring the risk to other

by taking fire insurance

@ver the budget !ontrollableEeducing the scope of project

ask for more funds

8atural disasters +orce majeure%ccept the risk and get over

the damages

c. I&*le&entation Phase

@rganiing team

This is a large project (< can allocates 1 project manager 1 assistant manager 1 human

resource manager 1 financial manager 1 office administration 1 warehouse administration 2

staffs from the company itself and other contracted labors. The first important is to organie the

information. The detail of planning schedule etc. has to impart to everyone in the team. t must

be clear and the project manager must ensure all members understand it. This is to avoid

misunderstanding leads to faults and delaying. +urthermore the team can create ownership and

1

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responsibility through good working condition and motivation both monetary and non9

monetary/ it increase the working perform and efficiency outcome of the project team.

%ssigning works

n this period the project manager will give out specific tasks and assignments to all members.

The given tasks are based on the ability and position of each person. (veryone has to receive all

related documents like schedules procedures checklist and budgets. The member will be

responsible for the duties and will be supervised by the project manager. y that during the

process if the project manager sees any person tend to follow a wrong direction he can :uickly

give advice and get the problem fi&ed.

,lanning changes

%ny project has une&pected problem big or less hence he team also needs plan to react. t could

be changes in time people resources or even changes in the client"s decision (< !ompany/.

;hen there is a sudden change in project the project manager has to gather all plan and consider

if it make big influence or not and if he needs to change anything in the current plan and

schedule.

d. Co&&issionin% Phases

The project needs evaluation and review to provide feedback to help every member focusing and

achieve the project objectives. To evaluate project the manager will use review method through

organie daily meeting in the team. n the meeting the manager will collect data and report from

team members.

efore the project can close it must be re9checked and accepted by the client 4 (< !ompany.

%ll the documents is completed and signed offN relieving labors and resourcesN informing and

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disclosing warehouse to stakeholders "eiss and "ysoc2i4 0778./ %ccording to Spirer 1'$3/

project closure should be concern as a small plan which also has problems itself in aspects of

emotion for project staffs clients and intellection for internal e&ternal organiations. This will

help to maintain the outcome of the new building and develop trust for every stakeholder of

business in the future.

. P#o,ect &ana%e# s$ills and co&*etencies

The project manager involves the project from the beginning steps. %ccording to Field and 9eller

2005/ he with the supporting of an assistant firstly starts with the identification of objectives

planning the flow of activities step9by9step and estimating how much time resources what skills

needed to complete the project. The project manager must comprehensively understand all duties

along with every phases of the ,-! in his specialiation. n order to get the project successful

this manager also must have necessary personality to leads the whole team. The project manager

is

The one create vision transparent objectives communicating persuading influencing

integrating and leading people having trust from other members.

% person with outstanding energy levels enthusiastic and challenging the problems.

The manager also knows how to assess the human resources. >e must choose the team member

with right knowledge right skills and right attitude. %n intelligent manager will look for the most

suitable members not the best one. To get success in this project select a good leader with

suitable style is very importance. The manager"s leadership style will have a big impact to the

others. -eadership has some different styles such as autocratic bureaucratic charismatic

democratic laisse9faire and etc. n general the democratic leadership style is the most suitable

for the current project team. The democratic leader always encourages members to share the

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ideas opinions and involve as a part of the decision marking. >owever in team process has some

situation in which the leader should not use democratic style. +or e&ample in the case when the

time is limit and not allow discussing with members the manager must use autocratic style

isolated decision/ to make his own decision. esides in any situation if he feels threatened by

this type of leadership for the team work he can refuse to use democratic style. %part from that

the project manager usually also has responsible to Creport and liaiseD with different level of

management from general director clients sponsors to stakeholders and this is when skills of

using reporting9line is applied.

Concl'sion

This report has been written as a detailed planning for the (< !ompany"s project in order to

support the project manager and his team. t includes the detailed phases in the project life9cycle

concurrent with contemporary skills and competencies needed for project manager in controlling

project.

)"ord count: .4/7 &ords,

1#

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Define

O Ee:uirements

analysisO +easibility

study

O +unctionalspecification

O )cenariodevelopment

O !ost9benefit

analysisO )et objectives

O !omparealternatives

Plan

O 3dentify tasks

O 3dentifycriticalactivities

O (stimate timeand cost

O Geterminestaffing

O Eisk analysis

O Ialueplanning

0#%ani=e

O @rgani6e

team

O %ssign work

E6ec'te

O 3ssue change

ordersO Eeview

project status

O Eeport onproject

O Eeview

schedule andbudget

O Fualifying

Close

O @btain client

acceptanceO !omplete

documentation

O )ign offO !onduct post

implementatio

n auditO *aintenance

O Ialueassessment

APP!N"#$#!S

A**endi6 2.1

%ccording to "eiss and "ysoc2i1''/ the basic project life9cycle has five stages define

plan organie e&ecute and close. ecause of large project this 59stage ,-! is

appropriate precise and easy to manage activities.

%ccording to ?. ;estlend 2006/ a standard project typically has the following four major

phases each with its own agenda of tasks and issues/ initiation planning e&ecution

and closure. Taken together these phases represent the path a project takes from the

beginning to its end and are generally referred to as the project life cycle.

1$

(stablish control

tools

nstall deliverables

Eecruit staff

)e:uence tasks

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A**endi6 2.2

(&ample for EE 8,I and E@ calculation

nitial nvestment P0000/

,rojected cash flow

Qear 1 P20000

Qear 2 P25000

Qear 3 P15000

Qear P10000

Qear 5 P5000

Total project cashflow P#5000

EE 33R

8,I at 5R/ P66$26

,ayback ,eriod Qears/ 2.33

E@ 8,I 4 nvestment/ P26$26

Source: te igeredico%co!

1'

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0*en a ne" officeand "a#eho'se

b'ildin%

)tructure application

*ake the companyname sign

Eedesigning buildinginferior to suite

company culture

Gevelopment

1uyingL>iringfurniture5 device5

e:uipment

Gelivering products towarehouse

)ecurity and safety(valuation and review

+inali6ing thebuilding

@rgani6ing the people

Eecruitment

Training

A**endi6 2.+

The ;) for (< case

20

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A**endi6 2.

(< project scheduling

Acti%it&

#dentifier

Acti%it& "escri+tion "uration ,da&s-uan

resource needs

Predecessor

%*ake the company

name sign# 2 9

Eedesigning

building inferior to

suite company

culture

20 10 %

!

uyingL>iring

furniture device

e:uipment

30 10

GGelivering products

to warehouse0 15

( )ecurity and safety 6 5 !G

++inaliing the

building15 10 (

= Eecruitment 20 $ +

> Training 60 10 =

=antt chart

21

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A**endi6 2.3

22

Source: Sa!ser ;aider P1

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Source: proteusadvisors%co!

23

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*!F!*!N$!

Boo$s:

1. urke E. 2003/Project 1anage!ent4 Planning and 5ontrol Tecni6ues% ?ohn ;iley and

)ons.

2. +ield *. and arold ?. 1'$5/ uilding Aour usiness Plan. 8ew Qork ?ohn ;iley S

)ons.

Inte#net:

1. )hamsher >aider 200$/Bis2 Besponse Planning Strategies. %vailable at

httpLLerppm.blogspot.comL200$L0#Lrisk9response9planning9strategies.html %ccessed 23

)ep 2012/.

2.5onducting a Feasi-ility Study4 capter . Kniversity of ;isconsin !enter for

!ooperatives. %vailable athttpLLwww.uwcc.wisc.eduLmanualLchap5.html%ccessed 1$

)ep 2012/.

2

http://erppm.blogspot.com/2008/07/risk-response-planning-strategies.htmlhttp://erppm.blogspot.com/2008/07/risk-response-planning-strategies.htmlhttp://www.uwcc.wisc.edu/manual/chap_5.htmlhttp://erppm.blogspot.com/2008/07/risk-response-planning-strategies.htmlhttp://www.uwcc.wisc.edu/manual/chap_5.html

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3. Bis2 Besponse 5onsulting. %vailable at

httpLLwww.proteusadvisors.comL200$0501archive.htm%ccessed 2' )ep 2012/.

. B@3 5alculator Te!plate for 3T 3nvest!ents Csing NPD4 3BB and Pay-ac2 Period.

%vailable at httpLLthehigheredcio.comLproductsLroi9calculator9templateL %ccessed 21

)ep 2012/.

5. ?e!ocratic leadersip style% %vailable fromhttpLLwww.essortment.comLallLleadershipstylerrn:.htm%ccessed 2# )ep 2012/

6. -ee Q. 8. Eoland T. )ee Q. -. )eet >. -. 200'/ Trend and callenge of &areouse

and distri-ution center: uestions > 'ns&ers%%vailable at

httpLLwelovedcm.blogspot.comL200'L01L:uestion9answer.html%ccessed 15 )ep 2012/.

25

http://www.proteusadvisors.com/2008_05_01_archive.htmhttp://thehigheredcio.com/products/roi-calculator-template/http://www.essortment.com/all/leadershipstyle_rrnq.htmhttp://welovedcm.blogspot.com/2009/01/question-answer.htmlhttp://www.proteusadvisors.com/2008_05_01_archive.htmhttp://thehigheredcio.com/products/roi-calculator-template/http://www.essortment.com/all/leadershipstyle_rrnq.htmhttp://welovedcm.blogspot.com/2009/01/question-answer.html

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