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EPM5600 Principles Of Project Management

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EPM5600 Principles Of Project Management

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Course Code: EPM5600
University: Victoria University

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Country: Australia

Question:

You are required to investigate a Project Management scenario, using information given to develop a written report and presentation to answer questions about the scenario.
Scenario
You are working for ProCon Services Australia, a Project Management consultancy. Your company has been engaged by Vella IT Office Fitouts, who are currently undertaking the fitout of a medium-rise office building in a Sydney suburb. A team of company staff and contractors, led by a Project Manager, have been performing the work. The fitout is part- completed, and the Project Manager, Tony Faultier, has just left the company abruptly, moving overseas to take up a position in another company.
You have been put in charge of working with Vella IT Office Fitouts to investigate the current status of the project and determine any corrective action required, including providing advice on replacing the project manager, and improving the performance of the project team. You are to report your findings to the board of Vella IT Office Fitouts, including Jim Vella, the business owner and chairman.
The building comprises four levels, and is designed to house 200 people, with 50 on each floor. Each floor provides 500 m2 of office space. Vella Office Fitouts are in charge of the entire fitout, including furnishings, plumbing, electrical and data and telecom infrastructure. 200 staff of Ferrari Software, a computer software company, are to be relocated into the building at the end of the fitout

Answer:

Introduction
The project was designed to construct the building for the Vella IT Office Fitouts. During the construction program the variation in the cost and schedule occurs which intimates the flaws and gaps in the leadership style of the project manager used for handling the project activities (Imna, and Hassan, Z, 2015). The purpose of this paper is to analyse the variation in the cost and schedule occurs during the construction of the building program.
Project Overview
The project schedule was developed for the Vella IT office fitouts expansion. The project was scheduled to be started on 1 March, 2018 and completed on 30 June, 2018 within the approved budget of $ 1.2 Million but due to the incompetency of the project manager leadership style the status of the activities completion does not match with the scheduled work completion. According to the proposed schedule till 1st May, completion of the ground floor, 50% of the first floor, 50% of the second floor, and no work on top floor had been completed. The actual work on the ground was investigated as, 75% completion of the ground floor, 25% completion of the first floor, 25% of the second floor, and 50% completion of the top floor. The project activities so far were completed under the budget of $ 675K. The purpose of this project is to design a project report which focuses on the scheduled variance and cost variance report and the brief status of the leadership behaviour by implementing the organization zoo model.
Project Aim
The aim of this project is to design a project report which focuses on the scheduled variance and cost variance report and the brief status of the leadership behaviour by implementing the organization zoo model.
Current Status of the project
Planned Activity Schedule:

Activities

Sub-Activities

Duration

Project Planning

Setting of project goal

5

 

Development of the project charter

3

 

Analysis of risks

3

 

Development of project team

3

 

Appointment of project Manager

4

 

Division of roles and responsibilities

2

 

Approval of the project plan

1

Requirement Gathering phase

Data collection

3

 

Data Analysis

1

 

Development of the requirement specification plan
 

2

 

Development of the risks mitigation strategy

1

 

Setting of quality standards and control

2

 

Resource management plan

2

 

Land Acquisition

3

Designing phase

Development of the construction design for the building

3

 

Setting of engineering drawings

3

 

Design of floor 1

5

 

Design of Floor 2

5

 

Design of Top Floor

2

 

Completion of the construction design

1

Construction Phase

Start of the construction program

8

 

Completion of First floor construction

14

 

Completion of Second floor construction

12

 

Completion of top floor construction

10

 

Completion of the building construction

10

Testing Phase

Evaluating the quality standards

5

 

Finishing program of lighting and lift system

4

 

Completion of the quality check

6

Project Implementation

Handover to owner

6

 

Project Closer report

4

 

Signoff of the closer report

3

Schedule Variance Report

Activities

Sub-Activities

Duration

Variation Percentage in work

Project Planning

Setting of project goal

5

100%

 

Development of the project charter

3

100%

 

Analysis of risks

3

100%

 

Development of project team

3

100%

 

Appointment of project Manager

4

100%

 

Division of roles and responsibilities

2

100%

 

Approval of the project plan

1

100%

Requirement Gathering phase

Data collection

3

100%

 

Data Analysis

1

100%

 

Development of the requirement specification plan
 

2

100%

 

Development of the risks mitigation strategy

1

100%

 

Setting of quality standards and control

2

100%

 

Resource management plan

2

100%

 

Land Acquisition

3

100%

Designing phase

Development of the construction design for the building

3

100%

 

Setting of engineering drawings

3

100%

 

Design of floor 1

5

100%

 

Design of Floor 2

5

100%

 

Design of Top Floor

2

100%

 

Completion of the construction design

1

100%

Construction Phase

Start of the construction program

8

100%

 

Completion of First floor construction

14

25%

 

Completion of Second floor construction

12

25%

 

Completion of top floor construction

10

50%

 

Completion of the building construction

10

0%

Testing Phase

Evaluating the quality standards

5

0%

 

Finishing program of lighting and lift system

4

0%

 

Completion of the quality check

6

0%

Project Implementation

Handover to owner

6

0%

 

Project Closer report

4

0%

 

Signoff of the closer report

3

0%

Gantt chart:
 
Cost Variance
Estimated Budget:

Cost

Values ($)

 

 

Earthmovers

122000

 

 

Road breakers

125000

 

 

Cement Mixer

124000

 

 

Concrete mixers

125000

 

 

Loader and trolleys

126000

 

 

Cement Trucks

160000

 

 

Crane

560000

 

 

Excavator and Crawler

530000

 

 

Compactor

520000

 

 

Water system

147000

 

 

Required Cement

380000

 

 

Required Bricks

800000

 

 

Required Concrete

400000

 

 

Steel Pipes

300000

 

 

Iron rods

1350000

 

 

Wooden Roads

320000

 

 

Aluminium Pipes

1360000

 

 

Project Manager

450000

 

 

Civil Engineer

430000

 

 

Architect

220000

 

 

Contractor

320000

 

 

Procurement Manager

380000

 

 

System Analyst

350000

 

 

Quality Manager

350000

 

 

Risks Manager

350000

 

 

Consultant

330000

 

 

Salary and Wages

1300000

 

 

Extra Cost

71000

 

 

Total Cost

1.2 Million

 

 

 
Cost Variance Report

Cost

Values ($)

Actual cost

 

Earthmovers

122000

32000

90000

Road breakers

125000

35000

90000

Cement Mixer

124000

22400

101600

Concrete mixers

125000

22500

102500

Loader and trolleys

126000

22600

103400

Cement Trucks

160000

26000

134000

Crane

560000

23000

537000

Excavator and Crawler

530000

32000

498000

Compactor

520000

24200

495800

Water system

147000

38000

109000

Required Cement

380000

30000

350000

Required Bricks

800000

20000

60000

Required Concrete

400000

20000

380000

Steel Pipes

300000

25000

275000

Iron rods

1350000

32000

1030000

Wooden Roads

320000

26000

294000

Aluminium Pipes

1360000

45000

1315000

Project Manager

450000

23000

428000

Civil Engineer

430000

22000

408000

Architect

220000

22300

197700

Contractor

320000

18000

302000

Procurement Manager

380000

5000

375000

System Analyst

350000

15000

320000

Quality Manager

350000

13000

322000

Risks Manager

350000

10000

340000

Consultant

330000

10000

320000

Salary and Wages

1300000

10000

1290000

Extra Cost

71000

10000

61000

Total Cost

$ 1.2 Million

$ 675 K

11325000

Leadership Behaviour
The DNA of the leadership style and behaviour adopted by the project manager can be analysed by using the organization zoo model which helps in analysing the difference in the schedule work in terms of expected, desired, tolerated, and not-tolerated (Scott, 2016). The performance of the project manager can be analysed by accessing and evaluating the metaphor characters used for analysing the behaviour of the leadership capabilities. The organization zoo model helps in providing priority to the activities in terms of 1 for low, 2 for medium, 3 for high, and 4 for very high. The following table shows the efficiency of the project manager which met according to the requirement of the project schedule in terms of expected, desired, tolerated, and not-tolerated. The behaviour of the project leader should be according to the demand and requirement of the project.

Project Activities

Expected

Desired

Tolerated

Not Tolerated

 

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

Setting of project goal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development of the project charter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of risks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development of project team

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appointment of project Manager

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Division of roles and responsibilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Approval of the project plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data collection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development of the requirement specification plan
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development of the risks mitigation strategy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Setting of quality standards and control

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Resource management plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land Acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development of the construction design for the building

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Setting of engineering drawings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Design of floor 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Design of Floor 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Design of Top Floor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of the construction design

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start of the construction program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of First floor construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of Second floor construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of top floor construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of the building construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Evaluating the quality standards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finishing program of lighting and lift system

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Completion of the quality check

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Handover to owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project Closer report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signoff of the closer report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Recommendation
It is recommended that the new project manager should be appointed for the organization to resolve the complexities which occurs in the construction program organized for the Vella IT office. The new project manager should have a clear vision of the project scope and goal, articulation of project boundaries, new opportunities to ensure future scope of the project, communication with stakeholders, accomplishing project results as estimated, proper division of roles and responsibilities, integrity of the action plan with the project demand and schedule, motivating employees, managing competence among the working employees, relationship between cost and project activities, managing complex situation with ease, and others (Forget, 2015).
The need of the project is to complete the plan as estimated in the activity schedule. The project manager should have a good managing skill as desired.
Existing team Environment
The project manager builds extra pressure on the project team for completing the project as early as possible which creates the extra burden on the work force (Park, 2015). The grievances, conflicts, and chaos are increasing at a very high rate in the working employees which directly affects their work capability and performance and indirectly affect the quality of work and service required in the construction program of the building (Mandera, 2016).
Change Management Recommendation
The change management plan should be deployed for improving the working scenario of the undertaken project (Plessis, 2015). The efficiency of the project members can be improved by providing right work to the right person according to their capabilities. All the participants should agree on the common objectives of the project. The cultural beliefs of the stakeholder should be given privilege and respect (Barret, 2017). The opinion and expectations of the team members should be taken so that they can feel connected with the project environment. The grievance management system should be employed by implementing the social networking among the group members. It helps in decreasing the chaotic environment of the project and results in completing the project according to the project schedule (Tiwari, 2015).
Reflection
The project study helps in increasing the skills for calculating the schedule variance and cost variance of the project. It reflects the evaluation of team gaps which exists in the completion of the project successfully.
Conclusion
It can be concluded that the cost variation can results in the lower quality construction design and material used. The completion of the project before the scheduled time results in not systematic construction design which results in the variation of the expected design.
References
Barret, V. (2017). The role of the human resource department in a hospitality organization. Ebook 1st ed. [Online]. Available at: https://smallbusiness.chron.com/role-human-resources-department-hospitality-organization-71891.html [Accessed on 1 Oct, 2018].
Forget, F (2015). Human Resources and employee turnover in hospitality industry.  Ebook 1st ed. [Online]. Available at: https://www.linkedin.com/pulse/human-resources-employee-turnover-hospitality-industry-forget[Accessed on 1 Oct, 2018].
Imna, M. and Hassan, Z. (2015). Influence of human resource management practices on employee retention in Maldives.  Ebook 1st ed. [Online]. Available at: https://www.researchgate.net/publication/316013676_Influence_of_Human_Resource_Management_practices_on_Employee_Retention_in_Maldives_Retail_Industry [Accessed on 1 Oct, 2018].
Madera, J. (2016). Strategic human resource management research in hospitality and tourism: A Review of current literature and suggestions for the future.  Ebook 1st ed. [Online]. Available at: https://www.emeraldinsight.com/doi/abs/10.1108/IJCHM-02-2016-0051?mobileUi=0&journalCode=ijchm [Accessed on 1 Oct, 2018].
Park, J. (2015). Retaining talented employees in the hotel industry in Stavanger: An interview based qualitative research.  Ebook 1st ed. [Online]. Available at: https://core.ac.uk/download/pdf/52084802.pdf [Accessed on 1 Oct, 2018].
Plessis, A. (2015). HRM in relation to employee motivation and job performance in the hospitality industry.  Ebook 1st ed. [Online]. Available at: https://unitec.researchbank.ac.nz/bitstream/handle/10652/3375/9%20th%20IBC%20Dup%20Nalinh%20Pat%20sent29-6.pdf?sequence=1&isAllowed=y [Accessed on 1 Oct, 2018].
Scott, M. (2016). Strategies for retaining employees in the hospitality industry.  Ebook 1st ed. [Online]. Available at: https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=2905&context=dissertations [Accessed on 1 Oct, 2018].
Tiwari, I. (2015). An Analysis of the factors affecting the employees retention and turnover in the Irish hospitality industry.  Ebook 1st ed. [Online]. Available at: https://trap.ncirl.ie/2050/1/ishanitiwari.pdf [Accessed on 1 Oct, 2018].

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