Project Complete Duration By Using Network Diagram Construction Essay

Time of activity is calculated in forward pass and backward pass to determine float. Forward pass (earliest start + duration = earliest finish) to calculates earliest event time of activity which estimates project complete time for example; activity F earliest finish days are 18 (14 + 4). Latest event time of activity is calculated in backward pass (latest finish – duration = latest start) to determine activity in critical path and with float such as activity H latest start day are 20 (22 – 2). Total float = Latest finish – Earliest start – Duration. For example, float for activity C is 3 days (12 days – 6 days -3 days)

Activity A to Q is calculated in a forward pass; therefore project duration is 47 days (Table 1). Critical path are activity with zero float such as activity B (6 days – 4 days – 2 days) base on above formula and others activities. Below are the activities in critical path.

Project will compete on 12 April 2011 which is calculated in a forward pass with 5 days working week exclude Saturday and Sunday (Table 2). For example, project start on 7 February 2011, activity A project duration is 4 days, therefore activity A will finish at 10 February 2011.

a) 1 day delay during activity F, project still complete on 47 days due to activity F have 4 days float. Even thought delay 1 day, activity F still got 3 days float (4 days – 1 days = 3 days).

b) Activity P falls under critical path which mean activity with zero float. Therefore 1 day delay will increase project complete date from original 47 days to 48 days (47 days + 1 days delay = 48 days).

c) Activity Q is last activity. Activity Q also is an activity with zero float and on critical path. Conclusion, 1 day delay in activity Q will delay whole project complete date by 1 day. Then new project complete date will be 48 days in state of 47days.

Question 6

Project complete duration can be estimate by using network diagram. It helps project manager to monitor project easier base on duration of each activity. In other words, it helps manager to estimate the earliest time for activities to start and finish. On other hand it also helps to predict latest start and finish time for the activities to complete whole project without delay.

Furthermore, network diagram is link among each activity, it provide clear picture on how each activity perform in project and on critical path which may influence project duration if there is any delay. Besides, it saves research time and speed out the time to solve the problem which helps to avoid delay in project.

Moreover, activities in network diagram are depending of their completion means activity A must finish before activity B start. Each activity needs different time and resources to complete its part. Thus project manager able to allocate and fully utilize each activity time and resources with limited time and resources given.

Network diagram show the activities in critical path. Base on this information, project manager able to forecast and monitor on those activities fall in critical path properly to avoid any delay during the project. In case of delay, project manager able to plan the necessary step to backup the activity delay so the project will complete on time.

Base on network diagram, project manager able to make a decision whether project should speed out to save costs because of the shorter duration to complete or there is any opportunity costs while speeds out process take part. According to this, project manager able to monitor the budget with actual cost in each activity to avoid over budget from the project which may affect project future profit.

(636 word)

Appendix

Reference

http://tutor2u.net/business/production/critical-path-analysis.htm (view on 9/9/10 8:42am)

http://wiki.answers.com/Q/What_is_the_purpose_of_a_network_diagram (view on 2/9/10 1:36pm)

http://hadm.sph.sc.edu/courses/j716/cpm/cpm.html (view 9/9/10 9:01am)

Mike Field and Laurie Keller (1998) “Project Management” The Open University, UK

University of Sunderland (2005) “SIM355 Managing Project, Version 2.0” The University of Sunderland, UK

Date: 4th October 2010

To: Board of Directors

From: Project Manager of Opening New Showroom in West England

Reference: A report submitted to Board of Director of Cooper and Cooper on feasibility stage Project Management Preview of Opening New Showroom for 150,000sqm.

Executive Summary

Project management team had been tasked with the responsibilities to handle the project of Cooper and Cooper with objective to open new customized showroom which include workshop, administration office, luxury motor vehicles display and allow trading in buying and selling luxury customized vehicles.

Project life cycle is used by project manager during project period to determine each stage in project life cycle is follow accordingly. Those stages are concept stage, development stage, implementation stage and terminal stage.

By undertaking feasibility study, project manager develop a business case, establish goal and objective of Copper and Cooper at concept stage. STEEP analysis is use to focus on factors should aware before project start. Team member include team leader has appointed.

In development stage, project plan has been created. It also includes financial plan by estimate total costs of the project and payback period. In addition, work breakdown structure has been created which helps in resources, quality, communication and procurement plan. Major categories risk has been determine and risk management model is use to manage risk.

Implementation stage more concern about how project manager control and monitor whole project when it has been started. Motivation of team member is essential key during the project. Therefore leadership style help team member and project manager motivate team member.

Project is complete at terminal stage and review of project has been done. Opening ceremony, trading and operation of new base is ready. Project manager and team member will be a consultant and relocated.

List of Table

Table 1: Stakeholder expectation to company 13

Table 2: STEEP analyses 15

Table 3: Work breakdown structure 16

Table 5: Prioritizing Potential Risks 18

Table 6: Estimate operation costs for the project 19

List of Chart

Page 1 of 46 1

Page 7 of 46 2

Table of Contents

List of Table 10

List of Chart 10

1.0INTRODUCTION 12

1.1Background of Cooper and Cooper 12

1.2Project Life Cycle 13

2.0CONCEPT STAGE 13

2.1Goal and Objective 13

2.2STEEP analysis 15

2.3Renovation and Security 16

2.4New Employment 16

3.0DEVELOPMENT STAGE 16

3.1Work Breakdown Structure 16

3.2Risk Categories 17

3.3Risk Management 18

3.4Risk Monitoring 18

3.5Cost Estimate 19

4.0IMPLEMENTATION STAGE 20

4.1Responding to risk 20

4.2Report Frequently 21

4.3Monitoring and Controlling 21

4.4Leadership and Motivation 22

4.5Managing and Administrating 23

4.6Approval from stakeholders 24

5.0TERMINATION STAGE 24

5.1Showroom preparation 24

5.2Open ceremony 24

5.3 Review and relocate team member 24

6.0CONCLUSION 25

APPENDIX 25

REFERENCE 45

Task 2

INTRODUCTION

The purpose of this report is to determine ability of the project management team to handle the project with objective to open new customized showroom which include workshop, administration office, motor vehicles display area, customer parking lots and associated landscaping.

Background of Cooper and Cooper

Automobile company normally faces the challenge on provides best product to customer which really met their requirement. Cooper and Cooper (C&C) are company mainly focuses on customization of high quality motor vehicles such as Mercedes, Ferrari, Lamborghini, BMW and Range Rover.

Currently, they have 1 base in the south West of England and had acquisition new additional base of 150,000sq meters to build a custom showroom that allow trading in buying and selling luxury customized vehicles.

Project Life Cycle

Project manager use project life cycle (PLC) to defined planning methodology which include goal setting, define costs, establish time and project controlling. PLC comprises four stages: concept, development, implementation and terminal (Chart 5 in appendix).

CONCEPT STAGE

Goal and Objective

Goal and objective of company may create motivation and focus performance. Therefore effective objective must be specific, measurable, agreed, realistic and time limited (SMART). In addition, other objectives such as customer and employee satisfaction and ethical practices will increase value of company in long term (Table 1).

Table 1: Stakeholder expectation to company

Stakeholder

Expectation from company

shareholder

Return on dividend base on money invest

employee

yearly salary increment and bonus

government

tax computation base on profit generate

supplier

Continue supplier and payment on time

customer

Services satisfaction

Therefore, preproject evaluation should be use to monitor project objective and overall strategy of the C&C. Chart 1 below shows world yearly production of motor vehicles. According to this table, C&C goal is to achieve 25% of the selling luxury customize motor vehicles base on car production in UK and achieve sustainable growth of 20% annually.

Chart 1: World motor vehicle production (source: http://oica.net/category/production-statistics/)

(For a breakdown of production by country in the world, refer Table 8 in appendix)

Most of companies determine selling price as a cost + profit but hereby non-cost principle: selling price – cost = profit are better way for C&C to determine the selling price. Reasonable and acceptable selling price will help to stay competitive. Lean management is the way to create a sustainable continual improvement strategy and goal.

STEEP analysis

Besides internet factors that influence by both shareholder and stakeholder, C&C should focus on external factor that may affect project by using STEEP analyses before open new base which shows table 2 below:

Table 2: STEEP analyses

Social

Increase population life style by create more job opportunity and more income

Technologies

Aware of rapid technologies change in environment which will affect productivity

Economy

Increase in life style, gross domestic production (GDP) will increase therefore economy of nation, company and employee of company will increase

Ecological

Better living environment such as improve in transportation, education and etc

Political

Aware on changes in government policies such as health and safety law for employee (Table 9 in appendix )

Renovation and Security

Showroom design will create right mood for customer to purchase motor vehicles. Thus renovation is an essential sales tool. Furthermore, security of showroom is major concern with valuable motor vehicles display so security alarm system such as CCTV and infrared for night security should be installed. Table 10 in appendix shows the detail costs for renovation and estimate will complete in one year for date of commission.

New Employment

New head of project and departments such as engineering, customer services and etc should be employed to run new base daily activities. Therefore this showroom will provide employment for 60 people. Project team leader should be appointed to specially take care of each part of the activities base on their experience and skill.

DEVELOPMENT STAGE

Work Breakdown Structure

Once concept stage had been approved by related parties and new team leader had been employed. Team leader will monitor and control their team activities on below work structure. Therefore project schedule can map out and cost able to estimate after completion of work breakdown structure (WBS). WBS also helps to identify risk of the project too.

Table 3: Work breakdown structure

Project Manager

Renovation

Finance

Security

Marketing and customer services

HR and Admin

Engineering

Customize Decoration Sale Facilities Invoices Electrical

Services Purchasing Customer research Entrance Receive Plumbing

Recruitment Customer complain Cost Interior design

Events show Payment

Risk Categories

Once work had been allocated, we need to categories type of the risk. Table 4 in below show the categories of risk which may face during project period:

Table 4: Major categories of risk (source: SIM335 Managing project, UOS (2005))

Risk category

Example

Technical

Fail to change and get information regarding new technology, design error or omissions

Environment

Culture of organization such as same model of motor vehicles not accept by all population in the world

Financial

Cash flow problem, budget cuts and corporate unpredictability

Resources

Specialize skill people and equipment not available

Human

Lack motivation for employee will increase human error, personality conflict and miscommunication

Logistical

Material supplier problem such as shortest in material or excess credit limit and period

Government

Different government policies for different countries and change in rules and regulation

Market

Motor vehicles model fail to meet customer requirement and competitor produce new motor vehicle with meet customer requirement

Risk Management

Risk categories had defined, risk management model is the way to manage risk (Table 11 in appendix). According to risk management, objective of project need to define then only able to identify potential risk and monitor whether impact of the risk to such project. Example, logistical risk will affect project duration in case lack material for renovation.

This logistical risk can be preventing by sign contract with supplier to confirm they will supply sufficient material when there is shortage. Furthermore payment period and credit limit should monitor properly to avoid excess limit given by supplier. Logistical risk can be avoided by sign contract with supply. Thus this risk had transfer to supplier.

Risk Monitoring

Whole team member should work together to report, monitor and plan the risk when they find that potential risk rise. Potential risk event will impact project costs, time and scope. As a result, project costs will increase; time will extent and scope of business will be limited. Therefore prioritizing potential risks (Table 5) is useful to assessing risk on impact and ability to influence whole project.

Table 5: Prioritizing Potential Risks

High impact:

Low ability to influence

High impact:

High ability to influence

Low impact:

Low ability to influence

Low impact:

High ability to influence

Impact

Ability to influence

Site plan for new base should be submit to government department to get approval before renovation start. Equipment and material such as engine for motor vehicle should be purchase table 12 in appendix shows how purchasing procedure should be done.

Cost Estimate

In reality, most of the shareholders are concern with when can they get back their money after invest to this project. Table 6 below is the simple calculation on payback period for the equipment purchase. Base on below table; estimate payback period for project is 7 years because of the positives cumulative cash flow.

Estimate costs for cash outflow are the operation cost incurred at initial of project (year 0) and there is no other additional cash. Cash inflow is the cash receive from the sales generate.

Table 6: Estimate operation costs for the project

IMPLEMENTATION STAGE

Responding to risk

According to risk categories and management in development stage, risk responsibility of stakeholders should take into consideration (Table 7).

Table 7: Respond to risk (source: SIM335 Managing project, UOS (2005))

Risk respond

Description

Risk Reduction

Deduce risk by hire lack experience employment.

Risk Transfer

Transfer risk to thirty parties by sign contract or agreement

Risk Acceptance

Accept risk rather plan it due to low impact

Political risk cannot neither be reduce or transfer but only can be accept even thought impact is high

Mitigating risk

Reduce risk before event happen such as well maintain on technologies

All project team member moves to site on this stage and project team leader should take care of their part to make sure project will complete as plan. Orientation given to all team members to make sure they know the procedure and activities they involve.

Report Frequently

Weekly meeting will conduct on every Monday morning for each team leader to participate on the status of their activity and problem facing. Problem will bring out to find the better solution to solve without delay project completion.

Monitoring and Controlling

Chart 2: Monitoring and controlling process (source: http://en.wikipedia.org/wiki/File:Monitoring_and_Controlling_Process_Group_Processes.jpg )

Project comparing planned outcome and actual outcome will be done on the meeting and ongoing project evaluation according to process flow in chart 2. This is to make sure actual cost of work perform will not exceed budgeted cost of work perform by 10% maximum and measure the status of the project.

Submission of changes request form (table 13 in appendix) and project communication form (table 14 in appendixes) is compulsory in case of changes during the project. This is to monitor and control project quality and resources

Leadership and Motivation

Project Manager should ensure employment motivation during project period. Therefore Maslow’s hierarchy of needs will help to increase motivation (Chart 3)

Chart 3: Maslow’s hierarchy of Needs (Source: http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm)

Leader is the essential for increase motivation because leader role is to get things done and drive change through team member. Leadership styles as show in chart 4 below:

Chart 4: Leadership style (source: http://www.nwlink.com/~donclark/leader/leadstl.html)

(For details of leadership styles, refer table 15 in appendix)

Managing and Administrating

Renovation such as floor, roof, stairs and external works undertake as per design which follow government rules and regulation. Electrical, gas and light installed after completion of ceiling renovation. Furniture and fitting, office equipment such as air-conditional and workshop facilities had been purchase and fix accordingly.

Workshop and office area constructed at estimated size of 35,000sqm. High quality vehicles will display in showroom therefore showroom facilities and interior decoration done at estimated size of 95,000sqm. The balance 20,000sqm will as a parking lot for customer during entrance to showroom. Completions of showroom pass to shareholder and stakeholder to review and approved. Corrections actions will be done as per shareholder and stakeholder requirement.

Approval from stakeholders

After approval from stakeholder and shareholder base on renovation done, event team prepare for showroom opening ceremony. Motor vehicles will move in and display as per plan and design. Reconfirm all had been done and complete as per plan by using checklist (Table 16 in appendix).

TERMINATION STAGE

Showroom preparation

1 manager, 3 sales assistants and 2 administration assistant staffs will be employed as an operations team for the showroom. Showroom need to obtain Certificate of fitness from government agencies before start trading. Showroom operation hours are determined according to healthy and safety act.

Open ceremony

List down guest name for shareholder and stakeholder to decide who will be inviting for opening ceremony and sent out the invitation card to ceremony. All documents for project will be update and filling before signing off and finalist project.

Review and relocate team member

Project completion evaluation must be done to confirm completion of project by using project checklist (table 16 in appendix) and wait for opening ceremony. Once opening ceremony done, showroom can start to operate and trading for luxury customized vehicles. Project manager and team will base on Cooper and Cooper for at least six month after showroom open for consultation.

CONCLUSION

This report shows the purpose of the Cooper and Cooper to have new base. Project life cycle used to determine how project should conduct. At the concept stage of project life cycle, internal and external factors should be concern. Goal and objective, costs for renovation are determined. Development stage mention team leader and their member work base on work breakdown structure. Way to identify risk and necessary step should be taken for that potential risk.

Implementation stage is the actual renovation work start in showroom and related equipment purchase. Correction step taken upon shareholder and stakeholder requirement. Termination stage is confirm project had completed and preparation for opening ceremony. Project manager and team member will relocate.

(2064 words)

APPENDIX

Chart 5: Project life cycle (source: http://www.mpmm.com/project-management-methodology.php)

Concept stage

Development stage

Implementation stage

Terminal stage

Table 8: Breakdown of production by country in the world (Source: http://oica.net/category/production-statistics/)

Country

Cars

Commercial vehicles

Total

% change

Argentina

380,067

132,857

512,924

-14.10%

Australia

188,158

39,125

227,283

-31.00%

Austria

56,620

15,714

72,334

-52.20%

Belgium

524,595

12,510

537,354

-25.80%

Brazil

2,576,628

605,989

3,182,617

-1.00%

Canada

822,267

668,365

1,490,632

-28.40%

China

10,383,831

3,407,163

13,790,994

48.30%

Czech Rep.

967,760

6,809

974,569

3.00%

Egypt

60,249

32,090

92,339

-23.00%

Finland

10,907

64

10,971

-38.70%

France

1,819,462

228,196

2,047,658

-20.30%

Germany

4,964,523

245,334

5,209,857

-13.80%

Hungary

180,500

2,040

182,540

-47.30%

India

2,166,238

466,456

2,632,694

12.90%

Indonesia

352,172

112,644

464,816

-22.60%

Iran

1,359,520

35,901

1,395,421

9.50%

Italy

661,100

182,139

843,239

-17.60%

Japan

6,862,161

1,072,355

7,934,516

-31.50%

Malaysia

447,002

42,267

489,269

-7.80%

Mexico

942,876

618,176

1,561,052

-28.00%

Netherlands

50,620

25,981

76,601

-42.20%

Poland

819,000

65,133

884,133

-7.10%

Portugal

101,680

24,335

126,015

-28.10%

Romania

279,320

17,178

296,498

20.90%

Russia

595,839

126,592

722,431

-59.60%

Serbia

8,720

1,355

10,075

-13.40%

Slovakia

461,340

–

461,340

-19.90%

Slovenia

202,570

10,179

212,749

7.50%

South Africa

222,981

150,942

373,923

-33.60%

South Korea

3,158,417

354,509

3,512,926

-8.20%

Spain

1,812,688

357,390

2,170,078

-14.60%

Sweden

128,738

27,600

156,338

-49.30%

Taiwan

183,986

42,370

226,356

23.70%

Thailand

313,442

685,936

999,378

-28.30%

Turkey

510,931

358,674

869,605

-24.20%

Ukraine

65,646

3,649

69,295

-83.60%

UK

999,460

90,679

1,090,139

-33.90%

USA

2,246,470

3,462,382

5,708,852

-34.30%

Uzbekistan

110,200

7,700

117,900

-43.30%

Supplementary

302,450

110,109

412,559

-22.40%

Total

47,952,995

13,761,694

61,714,689

-12.80%

Table 9: Summary of Workplace (Health, Safety and Welfare) Regulation 1992 UK lay down minimum standards for workplace and work in or near building (source: www.cipd.co.uk)

Employer’s duties and obligation to provide health and safety working environment for their employee

Publish a health and safety policy

Arrange for the appointment of health and safety representatives

Establish a health and safety committee if requested by a recognized trade union

Appoint a competent person to evaluate risks and hazards

Arrange periodic risk assessment

Consult with employee health and safety representatives

Present and inform employee of risks and combat risks at sources

Arrange protection from unavoidable risks

Provide health-risk surveillance and safety training

Provide safety training

Monitor and improve safety arrangements

Comply with the updated provision concerning healthy and safety posters and leaflets

Adopt work to the individual especially with respect to the design of workplaces

Alleviate monotonous work and develop a prevention policy

Appoint one or more competent persons to assist in undertaking preventative and protective measures

Establish procedures to be followed in the event of serious and imminent danger to persons working in the company

Require person at work who are exposed to serious and imminent danger to be informed of the nature of the hazards and steps taken to protect them

Table 10: Cost breakdown for renovation and security alarm system (source: www.davislangdon.com)

Cost Breakdown

Total cost (£)

£/㎡(gifa)

%

Substructure

114,000

85.07

6.12

Excavation and disposal off-site: 320㎡@ ¿¡25

Ground slab, footings, column bases, filling to levels: 1,060㎡@ ¿¡100

Frame and upper floors

113,400

84.63

6.08

Structural steelwork; UB and UC sections: 55tn @ ¿¡1,600

Suspended concrete floor on permanent formwork: 280㎡@ ¿¡80

Fire protection to steelwork: Item @ ¿¡3,000

Roof

73,900

55.15

3.97

Aluminium standing seam roof cladding, including purlins, trims, cappings, insulation: 1,190㎡@ ¿¡50

Upstands: Item @ ¿¡2,000

Mansafe system: 165m @ ¿¡75

Stairs

11,000

8.21

0.59

Precast concrete staircase handrails and balustrades: 2 nr @ ¿¡5,500

External walls, windows and doors

291,000

217.16

15.61

Structural bonded glass to frontage with silicone joints and support, including automatic bi-parting entrance doors: 310㎡@ ¿¡500

Coated aluminium double-glazed window system: 150㎡@ ¿¡375

Aluminium louvres to glass frontage 1,500 projection; including support and brackets: 90㎡@ ¿¡300

Entrance door for vehicles as integral part of glazing walling, including ironmongery and trimming: 2 nr @ ¿¡4,500

Aluminium composite micro-rib profile wall cladding to sides and rear of showroom: 400㎡@ ¿¡80

Steel fire escape doors: 3 nr @ ¿¡900

Inner leaf of 140 block work: 200㎡@ ¿¡45

Internal walls and partitions

68,400

51.04

3.67

Metal stud partitions to showrooms including support, up to 8m high: 320㎡@ ¿¡65

Metal stud partitions including skim finish to offices, to 3m high: 300㎡@ ¿¡45

Plasterboard including skim finish to external walls: 400㎡@ ¿¡20

Proprietary glazed partitions: 100㎡@ ¿¡225

Disabled WC cubicles: 2 nr @ ¿¡800

WC cubicles: 4 nr @ ¿¡50

Wall finishes

9,800

7.31

0.53

Emulsion paint finish to walls: 1,600㎡@ ¿¡5

Vinyl wall lining or similar: 40㎡@ ¿¡45

Floor finishes

114,300

85.30

6.13

Reinforced screeds to showrooms; 100 thick: 800㎡@ ¿¡25

Screeds to common areas; 75 thick: 540㎡@ ¿¡15

Ceramic floor tiles to showroom areas, including skirtings: 800㎡@ ¿¡85

Carpet tiling to office and circulation areas: 450㎡@ ¿¡20

Softwood skirtings: 300m @ ¿¡8

Non-slip vinyl flooring to WC, including coved skirtings: 90㎡@ ¿¡35

Entrance matting: 12㎡@ ¿¡300

Ceiling finishes

45,200

33.73

2.43

Plasterboard suspended ceiling on concealed grid: 920㎡@ ¿¡40

Mineral fibre suspended ceiling: 420㎡@ ¿¡20