Task 1: Overview
Identify and describe your chosen organisation (YourOrg) in one paragraph of no more than 100
words. Then summarise the project you have conceived (YourProj) in a second paragraph of no
more than 100 words.
Ve Ve Asia (Ve Ve) is a median size company establish since 1990. It manufactured snack food
and drink and distribute throughout the country wide. It has factory located in Mandalay, upper
Myanmar. Ve Ve Asia has seven branches and several distributional channel. The remaining are
retail outlets. Customers in different branch have unique requirement and demanding product
base on local needs.
Previously, Ve Ve Asia produce 3 major line of products, energy drink, noddle and
Cokkies. However due to market demand, they encounter that, customers prefer variety of
product like different favor, color and design etc. Some customers ask to produce different from
previous product. Therefore, VeVe need to focus on customer special needs rather than major
production line. The restructuring of Ve Ve involves external and internal project redesign and
management. The external level of project management is more important as it enables the
identification of relationships between individuals and groups involved in the project within the
parent functional departments in the organisation (Harrison and Lock, 2004).
This assignment will present an appropriate project organisation structure to the board of Ve
Ve along with a project plan, cost and time schedule, project evaluation and role of project
players.
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Task 2: Projects in the Organisational Context
Evaluate why YourOrg needs to change, using an academic theory about organisations. There
are a number of ways in which projects can facilitate organisational change. Critically discuss
how you have conceived YourProj and why it is the most appropriate for facilitating change in
YourOrg.
Due to dynamic changing customers demand, Ve Ve need to emphasis on customer unique
requirement so as to fulfil their order. If not the customers will swift to competitor who can
serve their needs.
The company will need to restructure production line that fit the individual need of customers.
Next, Management of Marketing and sales force will also require to rebuild in line with change.
External organisational structure involves functional project management of matrix projects.
Functional management involves work carried out in functional areas with each area
functioning independently, while project management involves control of all areas by a single
project manager (Brynjolfsson et al., 2012). This assignement proposes to adopt a matrix
project management structure where project managers and functional managers work together
to promote cross functional orientation. This supports the promotion of a matrix organisational
structure for the restructuring process, as the project manager shares the responsibility with
the functional managers of the different departments to identify priorities, role clarity and
resource allocation. According to Soderlund (2011), matrix organisational structure is most
effective in project restructuring as authority, responsibility and communication are present at
the horizontal, vertical and diagonal levels. A matrix organisational approach is promoted as the
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process involves leveraging of resources, gaining functional expertise and maintaining the scope
of the project.
The following Figure 1 presents the Ve Ve organisational redesign structure, where individuals
from different departments working on the project restructure are found to report to
managers, functional managers and the project manager.
Figure 1: Organisational Restructure (Author, Current Study)
CEO
HR Production Resource General
Administration IT Department
Department and Facilities Manager Management
Department
Restructure
Account Facilities
HR manager IT manager Project
Manager Manager
Manager
Restructure
Operation
Payroll Project Tesk
Manager
force
Maintenance
Recruitment
Manager
Senior delegates from all functional departments work
Training
under the restructure project manager
From the above figure, it is observed that a Restructure Project Task Force is to be established
headed by the General Manager (Restructure Project Manager). Senior delegates from other
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departments are found to be part of this project task force; they handle the functional
attributes of individual departments and report to the restructure project manager. The
responsibilities of top members of the task force include:
CEO – The CEO is involved in the formation of the project task force, funding allocation and
definition of project scope.
General Manager (Restructure Project Manager) – The general manager coordinates the task
force by maintaining channels of communication between the functional managers (horizontal
communication) and the CEO (vertical communication). The manager is involved in discussions
concerning budget allocation, schedule and scope. The project manager also identifies user
inputs by communicating with a representative from the Tenants Association.
HR Manager: The HR manager should perform a job analysis to understand the requirements of
different employee roles as a result of the restructure process and examine the possibility of
creating new roles.
Facilities Manager: The facilities manager will work with the team to identify the infrastructure
recovery plan, cost allocation and integration with IT.
Accounting Manager: The accounting manager helps maintain the budget and time schedule for
the restructuring process.
IT manager: The IT manager will work with the facilities manager to centralise IT operation
across the organisation and develop necessary protocols for implementation.
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Task 3: Project Types and Execution Models
Explain why there are different types of project and different execution models. What type of
project is YourProj? Explain what execution model you will use for YourProj, and justify your
decision. What role will standards play in the execution of YourProj? Explain how you would
exploit new technologies in managing YourProj.
There are three major type of projects.
1. Civil Engineering, Construction, Petrochemical, Mining, and Quarrying
Projects in this category are those which spring to mind most readily whenever industrial
projects are mentioned. Once common feature is that the fulfilment phase must be conducted
on a site that is exposed to the elements, and usually remote from the contractor's main office.
These projects incur special risks and problems of organisation. They often require massive
capital investment, and they deserve (but do not always get) rigorous management of progress,
finance, and quality.
2. Manufacturing Projects
Manufacturing projects aim to produce a piece of equipment or machinery, ship, aircraft, land
vehicle or some other item of specially designed hardware. The finished product might be
purpose-built for a single customer, or the project could be generated and funded from within a
company for the design and development of a new product intended for subsequent
manufacture and sale in quantity.
Manufacturing projects are usually conducted in a factory or other home-based environment,
where the company should be able to exercise on-the-spot management and provide an
optimum environment.
3. Management Projects
This class of projects proves the point that every company, whatever its size, can expect to
need project management expertise at least once in its lifetime. These are the projects that
arise when companies relocate their headquarters, develop and introduce a new computer
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system, launch a marketing campaign, prepare for a trade exhibition, produce feasibility or
other study report, restructure the organisation, mount a stage show, or generally engage in
any operation that involves the management and co-ordination of activities to produce an end
result that is not identifiable principally as an item of hardware or construction.
Ve Ve project is one similar to Management Project, although management projects might not
result in a visible, tangible creation, much often depends on their successful outcome. There
are well-known cases, for instance, where failure to implement a new computer system
correctly has caused serious operational breakdown and has exposed the managers responsible
to public discredit. Ve Ve project aim to restructure the internal organization design that cope
with changing environment. The success and failure of the project will impact on company long
term sales revenue and market share.
Every project is extremely unique which means cannot have a standard structure to execute Ve
Ve projects and achieve success in our endeavor. However, to have a good plan Ve Ve need
some kind of framework or structure to follow depending on the nature of the project. Project
management models or methodologies provide the framework to execute projects.
Commonly Used Project Management Models
Agile
When the cost of change is not too high, Agile can be used. Some of the major characteristics of
Agile are that team members are self-empowered and communicate regularly without
extensive documentation. If the team agrees that there is a better way to do the project, they
move right ahead with the new approach. The project scope can be discovered as the project
moves forward.
Waterfall
Waterfall methodology is traditionally used by construction and manufacturing industries
where project change is very expensive. Hence they operate sequentially and rely heavily on
documentation and plans. If you know the project scope fully and don't want many changes,
then waterfall is a good methodology to follow.
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Lean Startup
Lean Startup is mostly used by new startups that are creating a new product. Instead of
spending heavily on research, they can quickly validate a product idea by creating a minimum
viable product. A minimum viable product has just enough functionality to solve a business
pain. If that product idea is validated, then the firm starts adding more functionality and
features to the product.
As Ve Ve project is to restructure existing organization and expenditures are not too high, the
project model would be agile.
Implementing project require new technology to make run smoothly. In Ve Ve project, the
communication between various departments are very slow due to departmental barrier. So
the use of information technology can overcome this barrier. Video conferencing is the quickest
and cost effective way to intact with various department within organization.
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Task 4: The Project Proposal and Planning Project Execution
Write a project proposal for YourProj. Your proposal should include, but should not be limited
to: planning, resourcing, monitoring, control, budgeting and quality assurance. Use citations to
indicate the source of ideas you are using in your proposal. If you don’t have data for some
sections of your proposal, you may make any reasonable assumption.
According to PMBOK, project planning involves the initiation (project charter), the scope
(definition) and the work breakdown structure (determination of cost, time and human
resources required) (Saladis and Kerzner, 2011). This section will present a simple project plan
for restructuring the Ve Ve’s IT and Facilities department. The process of project planning
involves input statements (project scope statement, process assets, and requirement
documentation) to arrive at the work breakdown structure and the scope baseline.
A work breakdown structure is most useful for project planning as it provides a deliverable
orientated hierarchy of the different deconstructed project components and elements. The aim
of this process is to ensure that the end product can be viewed by different stakeholders. The
first step in project planning is the description of the different elements and identifying the
different levels.
Project Planning
1. Initiation
1.1. Initiation Plan
1.1.1. Identify external review committee reports
1.1.2. Identify feasibility of plans
1.1.3. Complete feasibility plan in one week
1.2. Initiation Report
1.2.1. Develop project initiation document
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1.2.2. Discuss scope, time and budget of project
1.2.3. Complete initiation report in two weeks
1.3. Complete initiation phase in three weeks
2. Development and Planning
2.1. Development
2.1.1. Present business case
2.1.2. Identify project costs and time
2.1.3. Identify techniques for monitoring and control
2.1.4. Complete development stage in one month
2.2. Planning Stage
2.2.1. Propose stage plan for all functional managers
2.2.2. Propose work packages for all functional managers and their respective employees
2.2.3. Identify control strategy
2.2.4. Complete planning stage in one month
2.3. Complete development and planning in one month
3. Risk Assessment
3.1. Risk Identification
3.2. Risk Assessment
3.3. Risk Mitigation
3.4. Complete Risk Assessment
4. Implementation
4.1. Implementation of Restructuring
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4.1.1. Implement internal restructure in specific departments
4.1.2. Implement IT restructure in all departments
4.1.3. Coordinate restructure in all departments
4.1.4. Complete restructure in five months
4.2. Implementation Report
4.2.1. Highlight report
4.2.2. Checkpoint report
4.2.3. Complete report at the end of every month
4.3. Implementation completion by six months
5. Monitoring and Control
5.1. Control
5.1.1. Test if project success is met at different stages
5.1.2. Review test plan with team members
5.1.3. Review test plan with CEO and external stakeholders
5.1.4. Address issues or problems
5.2. Testing complete in two months
6. Project Closing
6.1. Project Closing Report
6.1.1. Identify if success parameters are met
6.1.2. Identify cost and time overruns
6.1.3. Present recommendations for future improvement
6.2. Project closing completes in two weeks
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7. Evaluation
7.1. Evaluation plan
7.1.1. Evaluate project success and failure using specific criteria
7.1.2. Identify future recommendations
7.2. Evaluation complete in two weeks
1.7. Project Schedule, Estimation and Cost Control
Project Schedule
PERT (Program Evaluation Review Technique) is chosen as the most effective method to help
identify the project schedule for the KFH project. According to Harrison and Lock (2004), PERT
planning and scheduling involves the following stages.
1: Identification of specific activities and milestones: In the project planning phase, the WBS
structure has identified the different tasks involved in the seven different phases of the project.
Every activity (deliverable) is presented with a milestone.
2. Construction of a network diagram: The activity sequence of information can be used to
create a network diagram to identify sequence and parallel activities and the associated
milestones.
3. Estimation of time required for every activity: The use of PERT enables estimation of three
different types of time estimates including the optimistic time, likely time and the pessimistic
time. By using these attributes it is possible that the expected time for every activity is
determined without bias.
4. Determination of critical path: The critical path is identified by adding the time for the
activities in every sequence and identifying the longest path in a given project. This path helps
identify the total time required for any given project.
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According to McConnell (2009), the use of a PERT analysis helps in the improvement, planning
and scheduling of different activities, improved forecasting of associated resource
requirements and identification of any repetition in the planning pattern
The following figure shows the PERT planning process for the facilities department restructure
implementation. Similar PERT estimates need to be developed and coordinated with other
activities to identify the PERT network and the critical path. In the following table, the PERT
estimate provides the actual time that it would take to complete the particular task.
ID Task Most likely Min Max PERT est.
1 Job Analysis in Facilities department 2.00 1.00 3.00 2.00
Budget review for restructuring in Facilities
2 department
2.00 1.00 3.00 2.00
3 New role feasibility in facilities department 3.00 2.00 4.00 3.00
4 create Energy management department 4.00 3.00 4.00 3.83
Budget review for implementing Energy
5
management department 1.00 0.50 2.00 1.08
implement IT process restructure in Facilities
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department 2.00 1.00 3.00 2.00
Table 3: PERT - Planning
Project Estimation
Estimation is most important in project management as it helps identify the cost of completing
the project and delivering the business capability. The use of top down estimation is applicable
to the current project scenario as it helps in identifying the overall cost of the project and is
carried out early in the project life cycle (Sears et al., 2010). Ideally, estimation techniques
should involve a top down approach during the early stages of planning (like the current
report), following which a bottom up approach needs to be carried out to identify costs at task
level. Such a method is most ideal when a response to a change in business environment is
required (Li et al., 2009). In this method, the top and the middle managers (CEO, project
manager and functional managers) determine the project schedule and project cost. Following
this, the officers in different departments are expected to break down these estimates for the
individual tasks.
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Overall
Overall time
Budget
ID Task allotted
allotted
(Months)
MMK ,000,000
1 Project planning 2 2
2 Risk assessment 2 1
3 Development and assessment 3 2
4 Implementation 4 4
5 Closure 1 0.5
6 Evaluation 2 1
Table 4: Project Estimation
Project Cost Control
According to Kerzner (2013), a primary role of a project manager is to ensure that the cost, time
and performance of the project are met. Pajares and Lopez-Paredes (2011) further argue that
the probability of success is relatively less when proper tools are not available to promote cost
control. Ve Ve Project proposes the use of earned value analysis to identify if project
restructure at KFH is controlled at different stages. Before the implementation of cost control, it
is important that planning, scheduling and estimating of costs are first carried out.
Earned value analysis helps in comparing the budgeted cost of work scheduled against the earn
value (i.e. the percentage of work completed).
It also provides the cost and schedule variance by arriving performed. This method is one of the
most popular methods of cost control as it uses a standardised unit of measure of progress. The
various formulae used for analysis in EVA are identified below.
Figure 3: EVA Formula (Pajares and Lopez 1.8. Project Performance and Change Control The role
of performance measurement in project management is vital as it helps assess the magnitude
of deviations from the original plan of the project. Brandon (2010) indicates that successful
measurement or evaluation of a project is dependent on the key performance indicators which
are set at the start of the project. The project management indicators should be set in a
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manner such that they support business goals, provide the basis for decision making and are
measurable. The following Figure 4 arriving at the actual cost of work: Lopez-Paredes, 2011)
Budgeted Cost of Work Scheduled (BCWS) = this is original base line cost of
1
work schedule.
Earn Value or Budgeted cost of work performed (BCWP) = Percentage of
2
work complete * the original budgeted cost to complete.
Actual cost of Work performed (ACWP) = thet actual cost to complete the
3
work
4 Schedule Variance (SC) = BCWP-BCWS
5 Cost Variance (CV) = BCWP-ACWP
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Task 5: The Role of the Project Manager
Using academic sources and a critical approach, discuss how you would design the job of the
project manager of YourProj to ensure that sufficient attention is given to leadership,
administration, ethics, relationship management and the impact of culture.
Different project management bodies propose different project management competencies
and qualities of a good project manager. According to PMCD (Project Manager Competency
Development), a good project manager should show high scores with respect to three
dimensions including knowledge, performance and skills, each of which are grouped under
eleven sub factors (PMI, 2013). IPMA (International Project Management Association), on the
other hand, groups project manager competencies into three skill areas including technical
competencies, behavioural competences and contextual competencies, encompassing 46
elements (Varajao et al., 2013). Three primary qualities to be possessed by a project manager
are:
1. Leadership: Leadership qualities of a successful project manager include vision, imagination,
communication, resource management, motivation and intuitiveness (Muller and Turner,
2013).
2. Soft competencies: Project managers should have skills relating to personality traits, social
skills and conflict management among employees (Fischer, 2011).
3. Technical knowledge: Project managers should also have extensive technical skills and
experience including supplier management, resource allocation, project definition and change
management (Kerzner, 2013).
In Ve Ve, project manager is responsible for implementing the restructure process and make it
work successfully. He must have strong leadership skill to lead the project.
A project manager is a person who has the overall responsibility for the successful initiation,
planning, design, execution, monitoring, controlling and closure of a project. Construction,
petrochemical, architecture, information technology and many different industries that
produce products and services use this job title.
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The project manager must have a combination of skills including an ability to ask penetrating
questions, detect unstated assumptions and resolve conflicts, as well as more general
management skills.
Key among a project manager's duties is the recognition that risk directly impacts the likelihood
of success and that this risk must be both formally and informally measured throughout the
lifetime of a project.
Risks arise from uncertainty, and the successful project manager is the one who focuses on this
as their primary concern. Most of the issues that impact a project result in one way or another
from risk. A good project manager can lessen risk significantly, often by adhering to a policy of
open communication, ensuring every significant participant has an opportunity to express
opinions and concerns.
A project manager is a person who is responsible for making decisions, both large and small.
The project manager should make sure they control risk and minimize uncertainty. Every
decision the project manager makes must directly benefit their project.
Project managers use project management software, such as Microsoft Project, to organize
their tasks and workforce. These software packages allow project managers to produce reports
and charts in a few minutes, compared with the several hours it can take if they do it by hand.
According to Kerzner (2013), project teams are made up of different groups of people
throughout the project management life cycle. Muller and Turner (201) further argue that
understanding the roles and responsibilities of the key members of the project helps identify
the human resource contribution to the project and ensure project success. The Ve Ve
restructuring project management taskforce involves four functional managers, the project
manager and the CEO.
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Task 6: Risk, Uncertainty, and Ambiguity
Specify and critically evaluate a process that you will use for managing risks that may affect
YourProj. Using academic sources, assess the potential impact of uncertainty and ambiguity on
YourProj and explain how you would manage them.
Experienced and rational project managers understand that risk management is an integral part
of planning and that planning is a continuous process throughout and beyond project life into
the operational process that the project sets in motion. These PMs consider uncertainty to be a
certainty. They realize that everything is subject to change and that each change has ripple
effects
A risk is an event which has some impact on any of project objectives such as scope, cost,
quality, and schedule if it occurs; this impact can be negative or positive.
There are risk and uncertainty that may effect on restructuring process.
Operational risk
The risk that changes may not implemented by staff members or they may not obey the
necessary tasks that required by the project. The result of project may not achieved as
intended. For example, failure to fulfil customers order after restructuring.
Financial risk
Expenditures require to implementing the Ve Ve project are overspending or funds available for
project are limited or discontinued.
Reducing Uncertainty in Project Management
Project managers provide estimates of the project that is more than its actual estimate of
completion because they include some allowances for uncertainties to happen.
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While it is almost impossible to eliminate uncertainty in project management, there are ways to
reduce the elements. When there are only fewer elements to be considered in the estimation,
the estimate becomes more reliable, and uncertainty becomes lower.
The following strategies to manage negative risks:
Mitigate; Reduces consequence. Carefully planning the restructuring should be made and
consider every possible risks and include the procedure necessary to mitigate the risk if actually
occur.
Transfer; Responsibility for threat control formally passed from one role player to another.
Some risk associated with Ve Ve Project can be transfer to other parties.
Avoid; Reduces or eliminates event occurrence (likelihood). Removes cause.
Some risk can be avoid by not doing risk associated task. However the task must be not
significant effect on project result.
Accept; apply no control, usually to low threats. Few threats related to project can be accepted
as the outcome of risk occurrence is not so large and the cost of managing such risk is too high.
Task 7: Project Closure and Evaluation
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Identify and critically discuss the three most important tasks that must be done in the closure
phase of YourProj. Propose a framework, supported by academic sources, which will help
stakeholders reach some conclusions about whether YourProj has been successful.
The purpose of the Evaluation & Close phase is to provide a fixed point at which acceptance for
the project products is confirmed and to recognise the project objectives have been achieved and
end-user acceptance has taken place. Bringing a project to an end requires a different
management style that focuses on details as well as an analysis of the decisions that were made.
If the end product of the project is something that will need to be operated, or maintained, by
someone else (either an individual, group, department, or whole institution) then it must be
turned over to the people responsible for the product after the project has been completed. This
group may even choose to perform their own inspection or testing of the project to determine if
the project team has met its goals for quality and that all elements are present and complete.
Typically, this type of testing has already been agreed upon (and scheduled) in the Project
Initiation Documentation.1
A formal closure is more successful than a slow drift into use as it recognises the project has
completed, the project team can be disbanded, costs can no longer be incurred by the project and
the operational regime must now take over.
The outcome of is the successful closure of project by ensuring that all of the activities
associated with this step are completed. To assist with this process, you'll need a copy of the
Evaluation & Close Checklist, and the Project Closure Report. The checklist will guide the
project manager actions during this step - check off the actions as they are completed. These
actions are directly linked to sections in the Project Closure Report and will help the manager to
complete this important document.
The Evaluation & Close phase includes the following stages:
The Hand over the project products step which includes both the formal hand-over of the project
and the follow-on actions.
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The Evaluate the project step that seeks to assess the effectiveness of the project and capture
'lessons learned' for future projects.
Lastly, the Project Manager will recommend closure through a Project Closure Report presented
to the Project Board.
It is (like all other phases in the Framework) linked to Governance actions. During the
Evaluation and Close phase, the Governance action is Authorize project closure.
During this step, the project's products must be handed over to the Customer and/or the
organization responsible for the business as usual support for the products. This will include
Follow-On Action Recommendations, which are those activities relating to any unfinished work,
ongoing issues and risks or any other activities needed to take a product to the next phase of its
life.
A Follow-On Action Recommendations document is prepared by the Project Manager to identify
any uncompleted work, risks or issues that will affect the ongoing use of the project's products.
For a Research project, the Follow-On Action Recommendations could detail follow-up research
recommendations or how the project's products can be mainstreamed..
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