Project Management: Characteristics, Scope Statement, Budget, Risk Responses, And Quality Methods

Characteristics of a project

Projects are differentiated with other endeavors because they possess certain characteristics’ (Burke 2013, p.13). Some of the characteristics for a project include: having a life cycle with a start and end process, it has a budget because it consumes resources; it is participative because it involves interaction with stakeholders, projects are faced with risks which need to be managed or mitigated, tasks in a project are non-repetitive, projects are faced with three constraints of time, scope and resources which need to be managed, and projects have a goal to be achieved that is distinctive from other projects. ‘The characteristics make the project to be a unique activity in different environments that is located’ (Verzuh 2015, p.67).

Scope statement defines the requirements to accomplish a project outcome successfully’ (Gido & Clements 2014, p.67). It provides a boundary of items to be included in execution of the project. ‘It is a useful planning tool in explaining what to be accomplished and to be delivered by the project team’ (Verzuh 2015, p.78). The scope statement should include items like project objectives, deliverables, requirements, approvals, assumptions, milestones, charter, inclusion and exclusions. It is prepared during initiation phase of the project agreed by all stakeholders.

Project Gantt chart and critical path method are scheduling tools used in allocation of time resource in projects. ‘Gantt charts show a sequence and relationship between project activities against scheduled time’ (Pinto 2014, p.56). The critical path analysis provides the shortest or longest path or steps to accomplish a project goal. The schedule for Gantt chart and critical path can be derived using MS project software. Figure 1 and 2 show Gantt chart and critical path respectively.

The critical path is indicated using the red color. The critical path computation follows task (a) to (c) to (f) = 2days + 3days +6days = 10 days. The critical path is 10 days for the computation.

There is several factors that need to be considered when developing a budget for a project. ‘The first item to be considered is the approach that will be followed in estimating requirements for example parametric, bottom-up and top bottom approaches’ (Zulch 2014, p.56). The approach chosen will guide the type of project to be formulated.  The other critical factors to be considered are availability of resources, costs of estimates, tools for budgeting process, and baseline information of the project. The baseline information provides for the scope and nature of the project (Zulch 2014, p.56). Tools for budgeting process represent technical or operative inputs that can aid budget development.

Project management teams after identifying, assessing risks they need to formulate ways to manage the risk known as risk responses. Risk responses include activities performed by project teams that could enhance opportunities and reduce threats to project delivery. ‘Risk responses are part of the phases of risk management process, (Kloppenborg 2014, p.34). Examples of risks responses that can be used in projects include: transferring by sharing risk consequences with a different external party, avoiding project activities that could lead to risks, exploiting positive consequences originating from positive risks, acceptance of consequences of risks through tolerance, and identifying methods that can be used to treat the risks.

Importance of a scope statement

Project managers can utilize quality planning outputs (quality metrics, checklists, process improvements plans, quality management plans), as part of the methods to ensure successful accomplishment of the project (Heagney 2016, p.56). The planning outputs will enable activities to be monitored, evaluated and controlled in terms of quality. Most dominantly the quality management plan is usually developed in project management. The quality management plan outlines how quality will be assured, evaluated and controlled.   ‘Quality plans can be aided using inputs like scope statements, project management plan, organizational resource plans, and stakeholder registers’ (Kloppenborg 2014, p.67). Several quality tools and techniques can be used at each phase of the project to manage quality. Examples of the tools and techniques include: benchmarking, control charts, cost of quality, cost-benefit analysis, statistical sampling, six-sigma etc. ‘The tools and techniques for quality can be assessed on appropriateness and chosen based on the needs or nature of the project’ Thamhain 2014, p.67).

This report focuses on Hotel Communication Company using project methodologies, techniques and tools to install, test and commission information technology (IT) and communication infrastructure for a contract awarded by a client City Towers hotel in Docklands area of London. The report will provide project activities, skills and competences that will be used by the project manager to successfully deliver the project goal. The report outlined follows the project life cycle steps of initiation, planning, execution, control and project closure.

This stage involves coming up with items that define the conceptualization of the project. ‘The project manager of the project will prepare a statement of work, a project charter, and list of managing the stakeholders’ (Bryde & Volm 2013, p.973).

IT and infrastructure project statement of work
Date submitted:	2/12/2017
Project name:	IT and communication infrastructure project
Prepared by:	Xx (project manager)
1. Summary of work requested and benefits The contract to be implemented will involve installation, testing and commissioning IT and communication infrastructure for a new hotel towers. The project will be beneficial in making facilities for marketing and making bookings for hotel rooms. It will be useful in security features in the hotel.

It is a document that fully describes the needs of accomplishing the project to make it official and acceptable. The project charter will specify project summary, objectives, requirements, deliverables, and assumptions for accomplishing the project.

Project title	Development of IT and communication infrastructure
Project owner	City towers hotel
Project manager	Xx (project manager)
Project duration	3 months
Project budget	$67,095.00
Project objectives	a. To develop IT application system that will be used for bookings and marketing functions in hotels b. To design IT infrastructure provisions for radio and TV usage in hotels c. To provide IT aided facilities for CCTV, meeting rooms and conference center functions in hotels
Project requirements	The requirements include: software applications, computer and IT accessories, resource persons
Project deliverables	‘They represent what specifics to be considered to accomplish project objectives’ (PMI 2013, p.67). They will include: drafting a plan, creating a budget, sourcing a service and product provider, design, testing and commissioning of IT infrastructures, provisions for maintenance and controls, and project closure.
Project assumptions	The project assumes that the product will be acceptable by the client and create a competitive edge in the market.

‘Stakeholders are individuals and institutions that directly or indirectly affected by the performance of the project’ (Bourne 2015, p.56). The project summary of stakeholders identified was managed using the stakeholder lists presented in table 3.

Table 3 Stakeholder lists

Primary role/position	Interest/objective	Communication strategy/mode
Project sponsor	Improved quality product and services delivered	Regular: briefing, formal meetings and reports
IT infrastructure manager	Provision of computer, IT related infrastructure	Regular: Formal meetings, emails and site visits
Project manager/project team	Management of project	Frequently: Formal and informal meetings, reports, phone calls
IT technical experts	Consultancy on IT related functions	Occasionally: Meetings, briefings, reports
Hotel employees	Users of the product/service	Occasionally: Briefing’s, meetings

‘The phase involves development of different plans detailing how the project will be implemented or executed in achieving its objectives’ (Schwalbe 2015, p.35). The plans to be formulated will cover management of costs, resources, quality, risks, schedules, and procurements.

‘It involves resource budgeting and costing of the requirements of the project’ (Heagney 2016, p, 56). Costs form one of the constraints of the project proper planning to be done to accomplish the intended goals.  The top down approach was employed from unknown figure to a known total figure. The estimating and budget involves development of IT and communication infrastructure for City Towers hotels. Table 4 shows a summary of the resource estimates to be used in IT and communication infrastructure project.

Table 4 Project cost estimates

No.	Items	Units	Total amount ($)
3	Direct consumption expenses	–	1000
4	Software application purchase	–	5000
5	Computer accessories	Assorted	15000
7	Design, testing & commissioning fees/expertise consultancy fees	–	25000
8.	Technological infrastructure		20000
9	Contract charges	–	145
10	Software patent & licensing	–	300
11	Contingencies expenses	–	500
12	Internet charges	Assorted	150
	Totals		67,095.00

The budget was created with assumptions that prices of the items will not be affected by economic or existing market changes. ‘The budget consisted of both direct and indirect costs’ (PMI 2013, p.45).

Developing a project budget

Quality is an important component when ensuring that the products will be accepted and approved by the final user. ‘The project will ensure that quality is planned, assured and controlled’ (Gido & Clements 2014, p.86). Quality planning will involve use of quality lists and checklists to ensure standards and specifications are followed.

Quality deliverables: ‘the following are quality deliverables that the project will tend to achieved during the project delivery’ (Pritchard 2013, p.4). The software applications are designed to meet current and future needs of the hotel, materials and infrastructures to be bought according to required specifications, a right service provider and consultants chosen in an open and accountable process. Project assurance: to ensure that the planned quality measures are maintained consistently the project team will follow the project processes and activities based on professional checklists. Table 5 presents a summary of quality checklists that will be followed to ensure quality is maintained and achieved during the project life cycle.

Table 5 Quality checklists

Activities and functions	Status	Comments
Done	Not done
Good sourcing of service providers done well
IT and Computer infrastructures bought as per specifications
Software applications and programs reflect current and future needs
Maintenance and repair cautions are in place
Provisions for monitoring and audits are in place
A process of escalation is in place

‘Quality controls are important in ensuring what is achieved is maintained, corrected and lessons learnt from them’ (Kendrick 2013, p.32). The project manager will employ variance reporting for schedule, costs, and performance (operative, technical) to control quality issues.

The project manager will employ a competitive bidding process as the only method of sourcing materials, services and requirements of the project. Identification of needs and requirements will be done, an open bidding process will be done to identify the suitable bidders, evaluation of prospective bids will be done competitively, awarding of contract will be given, and payment done after accomplishment of tasks. Items/materials/services to be included in procurement plan include: sourcing software developer, provision of computer and IT technologies, design, testing and commissioning of the project.

‘Risks are occurrences that can either affect positively or negatively the performance of a project’ (Andrew 2014, p.34). The project manager of the IT and communication infrastructure project will need to identify, evaluate and manage the risks that would likely affect the project.

Through brainstorming with relevant parties the following are risks likely to affect the delivery of the project included: non co-operation among the users (A), systems failure (B), and changes in technological market (C). Through a probability/impact matrix the already identified risks were evaluated to facilitate ranking of them. ‘The evaluation is based on the probability of it occurring and the impact of the risk if it occurs’ (Andrew 2014, p.56). Table 7 shows the probability/impact matrix for the project.

Table 6 Probability/impact matrix

B		A
		C

Ranking for the risks evaluated in table 7 will follow the sequence of 1^st =A, 2^nd=B, 3^rd=C. Risks can be managed using a risk register. It is a tool used to manage the risks identified. Table 8 shows the risk register for the project

Table 7 Risk register for IT and computer infrastructure project

Rank	Risk	Description	Root Cause	Potential Responses	Risk Owner	Probability	Impact
1	Non co-operation among users	The users may resist in work structures due to new changes	It may result if they are not involved	Trainings and involvement in project activities	Project manager and sponsor	High	High
2	Technological changes in the market	New technological implementation may be affected by changes in the market of new technologies	It results when a non-researched item is implemented	The team will ensure that items that can be upgraded are used to caution any changes	IT infrastructure manager	high	low
3	Systems application  & program failure	The systems or program installed may fail to perform as required	It results when the software app or program was not designed or tested well.	Proper design and testing need to be done before any commissioning	It infrastructure manager and project manager	Low	High

Prepared by…………………………………………………………. Date prepared………………………………..

Approved by…………………………………………………………Date approved……………………………….

Dates for reviews 1^st …………………………….2^nd ……………………………..3^rd…………………………….

‘Project scheduling involves a process in which activities are broken down into smaller manageable units and relationship created between them’ (Nazari 2016, p.56). The project will employ milestones, work breakdown and Gantt charts to schedule activities.

Risk responses in project management

‘The milestone is a summary of key events to be implemented by the project’ (Lock 2014, p.61). It created to follow a key deliverables of the project. The project milestones are presented in table 9.

Table 8 Project milestone

Milestones	Time line (Events start on)
Drafting plan	1/12/2017
Creation of a budget	5/12/2017
Sourcing a service provider	15/12/2017
Designing of the product	20/12/2017
Testing of the project	10/01/2018
Commissioning of IT infrastructure	23/01/2018
Maintenance and evaluations	25/01/2018
Project closure	Takes place on 10/02/2018

‘The work breakdown structure (WBS) is a scheduling tool that breaks project into smaller work packages and tasks that can facilitate allocation of resources’ (Phillips 2013, p.33). The Gantt chart shows the sequence of project activities showing relationship them. ‘Both Gantt chart and Work breakdown structure will be developed using MS project software’ (Rainer 2014, p.34).  

It is a phase in which the project manager of the IT and communication infrastructure project will ensure activities are done according to the plans. The phase involves: direct and manage project execution, execution of quality, acquisition and development of project team, monitoring and evaluation, management and status reporting. Table 10 shows a summary of execution plan of various project activities.

Table 9 Project implementation & execution plan

Project activity/item	Methodology of execution and implementation
Direct and manage project execution	It involves carrying out the project management plan to enable final product is achieved. The project manager will employ expert judgments and PMIS to manage the project execution process. Export will include: consultants providing opinions.
Execution of quality	The quality assurance plan is used to execute because it specifies the standards in which quality will be tested, described and corrective measures done. The project manager will employ a quality assurance plan in form quality audits. ‘The audits will be informed of inspections and reviews of performance of the project’ (Kendrick 2013, p.46).
Project information reporting	The process involves a means in which reporting and distribution of information will be done or will be executed. The project manager will provide information to the right persons. A communication plan outlining meetings and reports will be used.
Monitoring and evaluation	The process is executed in order to efficiently communicate bad and good information among the project stakeholders. The monitoring will take place use expert judgments to collect information of the progress of the project. Evaluation will take place periodically after different phase of the project.
Acquiring, managing and developing project teams	It involves the methodology in which employees will be acquired in the project to form project teams. The project manager will source right employees by interviewing method. The output will include resource calendar’s and staff assignments.  Work performance, evaluation, target and appraisals are tools and techniques are employed (Cummings & Worley 2014, p.34).

The project manager of IT and computer infrastructure project will ensure change is managed and controlled to reduce consequences resulting to scope, budget and schedules. A change request form will be formulated to manage. Approvals will be done before the change is accepted. Table 8 shows the IT and communication infrastructure project change request form.  

Table 9 change request form

Change request form Change requested by………………………Date of request…………………………….
Type of change	Effect of change in project	Remarks
1. 2.
Approved status:  accepted (    )                      Rejected  (   )

‘Stakeholders require knowledge on the status of the project in terms of performance’ (Larson 2011, p.72). Reports can be done depending with the user’s needs and agreements. A variance report mechanism will be employed in the IT and communication infrastructure project indicating the difference of what had been planned and actual performance. Table 11 shows a presentation of how performance variance report would be presented as part of control measure.

Table 11 performance variance report

Metrics performance	Planned metrics	Actual metrics	Comments
Technical/operative Work was managed and executed as per the required specifications
Schedules/plans Schedules for time and resources were followed duly
Cost/budgets/estimate The work performance estimates were done as per the specified budgets provided.

Project closure will take place for the IT and communication infrastructure project after the final evaluation and reporting has been done. The conclusion will encompass payments and contract closures. Once the client is contented with the performance of the project handing over will take place and the project is closed down (Wysocki 2014, p.67). The project will be aided by the project closure checklist presented in table 12.

Table 12 Project closure checklists

No.	Items/activities	Status of activity	Remarks
Done	Not done
1	Performance report developed
2	Stakeholders are informed on closure
3	Accounts closed
4	Payments and contracts closed
5	Disposal of assets
6	Filing of relevant documents
7	Commissioning of project
8	Post evaluation of the project performance
9	Handing over of the project

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