The need to have a well thought out and crafted project management plan cannot be stressed further; the concept appears academic but is very crucial for the successful execution and completion of any project. The process of project planning and management constitutes several aspects and stages that must be handled well and professionally, starting with the project plan, budgeting, and project handover upon completion. It projects, for instance, are rated as having the highest rates of failure across all industries (Gupta, 2018), and many projects are generally completed late and over budget, for a variety of reasons. The issue with projects as compared to normal operational activities is that operational activities are repetitive in nature and so the processes can be systemized easily, with expected deliverables achieved. Projects, on the other hand, have start and end dates that are finite, involved mixed teams, are generally unique, and are therefore, more difficult to develop sound processes and methodologies for; they are also very difficult to systematize (West, 2018). In this context, this paper discusses the case of the green Company which was developing a new production plant to be used for the production of recycled structural wood elements. To undertake the project, Margo International was hired to supply Polyutherane adhesives as part of the required raw materials for the project. Upon project completion, the Green Company’s new production line was behind schedule by three months and had a budget overrun of 60%. After a short discussion, the reasons advanced include the project not having a fixed schedule for delivery as well as budget, but the scope was not well understood. This paper discusses why it is important to adequately plan for projects before undertaking them, coupled with a detailed and well defined project scope. The paper also discusses how the project scope should have been handled before work started and after completing the work. Further, the scope change management system is discussed and how it should have been handled to ensure successful project success. Finally, the paper evaluates if the project had a well written project plan.
Importance of Proper Project Planning and Scope Statement Development
The reasons why projects such as the green production project fail are many, varied, and complex; however, getting the project planning phase right before the project commences is one way to ensure a higher chance of the project being successfully completed within time, scope, and budget. A lack of planning will guarantee the failure of a project; likewise, poor planning will result in the project not being delivered as per its objectives and within the triple constraints of time, scope, and budget. Proper project planning will result in the objectives of the project being achieved (Pheng, 2018, p. 60). The project plan is akin to the blue print for building a house; it must be highly detailed and define exactly how the building will look; when this is followed, the final product will be the envisaged building. All projects have aims and objectives which must be very well written and defined. Well written project aims and objectives is the foundation for a successful project (Avison & Torkzadeh, 2009, p. 92). Every project has its milestones; significant events during the execution of the project. Milestones help in project progress monitoring and allow deadlines to be reevaluated, as well as the project deliverables and the scope. A well written project plan must have milestones that give confidence that the project is on track and within scope (Gollapudi, 2014).
A good project plan with milestones is able to compare the current progress with the original aims and objectives; it is almost inevitable that a project will experience or need some changes; a good initial project plan with defined milestones will ensure transition to a new or adjusted plan and scope is smooth, and not adversely affect the overall project aims and objectives or go outside the set time and budget (Andersen, 2006). Good project planning identifies stakeholders, their influence and impact on the project, and helps establish an effective communication plan to keep them involved and ensure continued support for the project. Without this, the chances for a project succeeding reduce significantly. Effective project planning is also important as it creates a contingency plan as well as a risk management plan to deal with unexpected changes and events (Walker & Shelley, 2008, p. 656). Successful projects require the project manager and the project team to clearly understand exactly what needs to be done so the project objectives are achieved; with a clear understanding of what needs to be done, it is easier to map out (plan) how to get there. A project must always stay on track and the easiest way to ensure this is through a detailed and well defined scope for the project. The initial phase of planning a project entails developing the scope and involves drawing a list of all things required to create the project framework. The project framework usually includes project goals, features, deliverables, tasks, functions, costs, and deadlines. Clearly, in the Green Company production line project, the important aspects of costs, deadlines, functions, features, and tasks were not clearly defined. The scope of a project defines the project objectives, the expected outcomes, any limitations, assumptions, and dependencies; these are crucial for successful execution of projects.
After defining the scope, it must be managed effectively, with tight controls on how changes can be made to the project scope. The proper management of a project scope ensures an accurate definition of the project scope and its proper mapping; this makes it possible for the project manager to allocate the requisite resources (labor, costs) to successfully complete the project. This ensures resources are allocated to what forms part of the project scope as originally defined during the initial planning phase. Effective management of a project scope entails planning to capture and define the work that has to be done, controlling which is a crucial step in managing the project scope as it focuses on handling scope creep, documentation, tracking and approvals/ disapprovals of changes; and closing, which entails auditing the deliverables for the project and assessing the original plan outcomes. The scope statement is a document that outlines and defines the project goals, outcomes, deadlines, and relationships that shape its delivery. The scope should have specific elements that include the business case, a description of the project, and criteria for success, limitations, and assumptions. In the Green Company project, the project was not clearly described, and too many assumptions were made with success criteria not being clearly defined. Inevitably, the project failed because planning and scope management were not done as well as should have been done. The preceding discussions highlight the importance of proper project planning and scope management practices to successfully complete projects.
A feasibility study is an assessment of a proposed method, plan, or activity; the Green Company had a proposal to build a new production plant for manufacturing recycled structural wood elements and this required the plan to be objectively and exhaustively assessed. When industrial and engineering firms contemplate an expansion or a new project (like the Green Company did), several questions always come to the fore. Can profitability be achieved under various sets of circumstances? Is a certain configuration practical for meeting a series of end goals? Will there be interferences that can lead to drastic changes? These questions and issues are inevitable in such projects, from the upstream to the downstream, and as such, feasibility studies (Front End Loading –FEL) must be performed. All projects and undertakings are subject to risks; a feasibility study is an important tool for the effective management of risks. The feasibility study influences decisions organizations make with regard to if and how a project should be executed. The feasibility studies are a stepping stone towards project optimization once the project commences. Feasibility studies that are timely and accurate are essent5ial components of the overall project planning and risk management strategies for the project. Feasibility studies assess and appraise several alternative methods and processes as well as designs for executing the project. After evaluates several approaches, the best and most promising approach is selected. For instance, the Green Company project could have been done in phases, considering that the exact date when production should commence was not well known or defined. As such, this is a project that required an extensive and detailed feasibility study, starting from evaluating alternative processes on how to increase production to design of the new production system and planning for the deliveries of the raw materials to plan effectively and manage the project scope. According to Turnstall (2016, p. 38), A feasibility study is used in determining the viability of an idea, such as making sure the project is feasible from a technical and even a legal point of view. Further, the feasibility study shows whether a project is a worthy investment and if there are alternatives on how it can be executed and the same objectives met at the lowest cost (Munsaka, 2013, p. 5). In conclusion, the Green Company project to build a new production plant could have greatly benefited from a feasibility study, and in general feasibility studies are good for such projects.
Scope Verification
Most project managers and staff clearly understand the concept of the work breakdown structure (WBS); it is among the tools that seem readily embraced and accepted by project management professionals regardless of the industry, location, or even their experience. However, there is a scope management step that can result in an effective WBS that ensures project objectives are met and ensure better control of the project scope is usually ignored, or not used; scope verification (Dorcas, 2013, p. 110). Scope verification is the process by which the acceptance process for a project scope by stakeholders is formalized. It requires that work products as well as results are reviewed to make sure that all were correctly completed and in a manner that is satisfactory. Scope verification is done after the project is complete and should have been done in the Green Project project. However, because sometimes the scope can be developed too fast at the beginning of the project, it still needs to be verified to ensure the tasks and schedule are in accordance with the project objectives (Jordan, 2012). The verification at the start should have ensured that all items in the scope management are included within the WBS and cross checked to ensure that all items in the WBS are in the scope statement. This should take a longer time and process if necessary too ensure the scope is effective managed (Schwalbe, 2008, p. 110).
Managing scope change is a necessary and essential part of any project; it is almost inevitable that all projects will need some form of scope change r management. Scope is one of the main constraints in a project (the other two being time and budget). Scope creep, lack of a define change control mechanism, and a poor project management structure are some of the reasons why projects fail, according to Millhollan (2018). The Green Company should have had a scope change and control document defining the procedure for making scope changes and should have had the change requests officially made by the project manager, proper reasons given with evidence, and addressed to the executive sponsor or project owner to approve. The document would then be signed and filed, with its version stated and dates of change reflected. This way, the liabilities of Margo would have been limited and the project objectives would still have been met. The scope changes made then form part of the min scope statement document (Litten, 2009).
Project Management
In my opinion, the project management plan used in the Green Company new production line project was not managed properly, or in accordance with project management guidelines as stipulated by PMBOK, PRINCE 2, or the PMI (‘CIO,’ 2018; Monnappa, 2018). For starters, there was poor communication between the project team and the main stakeholders. Second, the scope statement and scope control plan was either missing or very poorly done. Third, the project schedule and WBS, even if it was prepared, was not effectively and professionally managed. Four, the project was not executed according to the WBS and using tools such as Gantt. Five, the project lacked a monitoring and evaluation plan because this would have identified problems with the project schedule, scope, and plan. The project did also not address risks or manage the triple constraints of time, scope, and budget effectively. Further, the budgeting was not done properly, neither did the planning for human resource management; all these are key project management knowledge ares that the project did poorly or did not adhere to
Scope management refers to the process managing the tasks to be completed and deliverables in a project; scope pertains to product scope and project scope. Scope entails getting the required information to start a project and product features that would meet the needs of the stakeholders. In this project, the scope was to renovate the building housing the colling tanks because it was worn out, having been built 40 years back. The tasks entailed bringing down the structure and building a bigger and taller building with modern micro climate control features, as well as modern materials to stop mold growth on walls and accommodate bigger tanks. The building was situated adjacent to the milk receiving area and access was difficult
Narrative
The project should have taken eight weeks, but in the second week, the contractor realized that part of the receiving area had to be brought down to allow access to a section of the colling area that was to be renovated. The contractor went ahead and notified the project manager (myself) and while I acknowledged it, I told the contractor to wait for a status meeting as the executive sponsor (owner) would be away for four days and he needed to get it approved. Fearing falling behind schedule, the subcontractor doing demolitions went ahead and demolished part of the receiving area, causing the project to go three weeks above deadline and 14% above budget. While it was necessary to demolish part of the receiving area, I was unhappy that it was done outside the proper channel and it caused a lot of friction
Solution
According to the PMI, the scope management is a process that has four steps; these include scope planning, scope definition, creating a WBS, scope verification, and scope control (Sokowski, 2015, p. 11). In this case, the scope was not verified and scope control was done effectively as required; the scope should change should e approved using the scope management plan and document so that other constraints are not adversely affected.
Cost management refers to the process of estimating costs, budgeting for costs, and controlling costs. The project entailed supplying 100 computers (desktops), 20 laptops, and two servers, along with four network printers to the institution. Because the funding came from the local council and the job had to be completed on time to receive new students, it was decided that the previous supplier be used. The budgeting was then done based on previous costs (used about four months ago) to create and approve the budget. However, the supplier said the costs for some items ha gone up due to foreign exchange currency fluctuations and a review showed that it would exceed the budget by 21%.
Narrative
While undertaking the project, an assumption was made that the previous supplier would supply goods at the same price he had supplied it the last time. However, on closer scrutiny of the previous supply, one condition was that the prices as quoted were only valid for three months. Because students would be arriving in two weeks, the computers had to be supplied either way. The time needed to approve the increased budget would have taken two weeks, meaning the computers would arrive late. At the end, the sponsors agreed to cut down the number of computers and at least get 70% of the students that were to arrive in two weeks to use the computers covered as the extra budget approval process was going on.
Seed Questions
Solution
The budgeting process was done based on an assumption and without verification of facts. While the time period was too short for a fresh tender, the college had several listed suppliers that would have been asked, including the previous supplier, to submit bids for the supply and installation. This should have taken them a short time and a competitive price obtained and used as the basis for developing the budget. The recommended process for cost management entails cost estimation, cost budgeting, and cost control (Heldman, Feddersen, & Mangano, 2016, p. 371). The cost estimation was done improperly. It was right to reduce the number of computers; this was done through the scope change process and it ensured the objectives would still be met. Further, seeking approvals for extra budgetary allocation was in line with cost management practices.
An estate developer wanted a 4 km road leading to it improved to take more traffic and be market at a budget of $ 200000. The project was to take four months in time for the official opening of the estate comprising 200 housing units and handover to some owners. However, there was bad weather that stopped work for two weeks, causing the project to be completed late by a month and requiring reworks, with the budget overrun by $ 72000.
Narrative
The contractor went to site as planned and the budgeting process had been exhaustively done. The contractor was well experienced and was sure to deliver on time and within budget, which had a10% contingency. I worked in this project as an intern in project management. Because of unexpected heavy rains, work had to be stopped. The project manager sent the owner an e-mail; however, the e-mail was never received until a week after it was sent; during this time, the owner assumed work was going on as expected. Scope changes required a face to face meeting with the owners and a memo in writing (hard copy) presented for discussion
Seed Questions
Solution
According to project management knowledge area of communications management, the process should have been defined and followed (Heldman, 2015, p. 54). There should have been a communications plan (which was there), information distribution (that failed), performance reporting (also failed), and management of stakeholders (also failed). The project manager should have followed the communications plan and ensured there was a face to face meeting and an accompanying memo to obtain a schedule change approval.
References
Andersen, E., S. (2006). Milestone planning–a different planning approach. Retrieved from https://www.pmi.org/learning/library/milestone-different-planning-approach-7635
Avison, D. E., & Torkzadeh, G. (2009). Information systems project management. Hoboken, NJ: Wiley
‘CIO’ (2018). PMBOK vs PRINCE2 vs Agile project management. Retrieved from https://www.cio.com.au/article/402347/pmbok_vs_prince2_vs_agile_project_management/
Dorcas, M., T. (2013). Project Management at Work. Bloomington: iUniverse
Gollapudi, C. (2014). The Hidden Purpose Of Milestones In Project Management. Retrieved from https://www.linkedin.com/pulse/20140905123145-48292161-the-hidden-purpose-of-milestones-in-project-management/
Gupta, M. (2018). Late and Over Budget – Why it Projects Fail. Retrieved from https://www.streetdirectory.com/travel_guide/125982/computers/late_and_over_budget___why_it_projects_fail.html
Heldman, K. (2015). PMP Project Management Professional Exam Deluxe Study Guide. (2nd ed.) Hoboken, NJ: Wiley p 54
Jordan, A. (2012). Scope Verification: The Forgotten Process . Retrieved from https://www.projectmanagement.com/articles/275424/Scope-Verification–The-Forgotten-Process
Litten, D. (2009). Using Change Management and Change Control Within a Project. Retrieved from https://www.projectsmart.co.uk/using-change-management-and-change-control-within-a-project.php
Millhollan, C. (2008). Scope change control: control your projects or your projects will control you! Retrieved from https://www.pmi.org/learning/library/scope-control-projects-you-6972
Monnappa, A. (2018). PRINCE2® Vs PMP® – The Battle of Certifications. Retrieved from https://www.simplilearn.com/prince2-vs-pmp-certifications-article
Munsaka, T. (2013). The Importance of Project Feasibility Study: With practical examples. Nordestedt, Germany: GRIN Verlag
Pheng, L. S. (2018). Project Management for the Built Environment: Study Notes. Singapore: Springer Singapore
Schwalbe, K. (2008). Information Technology Project Management, Reprint (5th ed.). Boston, MA: Cengage Learning. p. 110
Tunstall, G. (2016). Managing the building design process (2nd ed.). London: Routledge.
Walker, D., H., & Shelley, A. (2008, June). Influence, stakeholder mapping and visualization. Construction Management and Economics 26(6):645-658
West, C. K. (2018). Four Common Reasons Why Projects Fail. Retrieved from https://www.projectinsight.net/white-papers/four-common-reasons-why-projects-fail
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