Project Management

Assignment submitted by

Student ID:
Date of submission:

1
 Contents
Task.1.1. & 1.3. Analysis of a chosen project by breaking it down into the five phase
headings explaining the activities of each phase. .................................................................. 3

Task.1.2. The method used to appraise the viability of the project and the methods used. ... 5

Task.1.4. Outline of the process which took place at the end of the project. .......................... 6

Task. 2.1. Organisational structure of Zaira Cosmetics and a comparison with the matrix
structure. ............................................................................................................................... 7

Task.2.2. Ways to control and coordinate the project activities and project team (human
resources) ............................................................................................................................. 7

Task.2.3. The style of leadership that was used during the project and evaluation of its
implementation...................................................................................................................... 8

Task.2.4. The utilisation of human resource in the project of Zaira Cosmetics. ..................... 8

Task.3.1. The critical elements of any successful project plan and the details of the main
elements of the project of Zaira Cosmetics project plan document and their purpose. ......... 9

Task.3.2. Use of critical path analysis and Gantt charts in or could have been used the
process of the chosen project. .............................................................................................. 9

Task.3.3. Methods for measuring performance that were used during the chosen project to
ensure that the triple constraints of scope, timescale and resources were managed
effectively. ............................................................................................................................. 9

Task.3.4. Evaluation of the use of change control procedures throughout the chosen
project and evaluation of the success of the chosen project. ............................................... 10

References ......................................................................................................................... 11

2
Task.1.1. & 1.3. Analysis of a chosen project by breaking it down into the five phase
headings explaining the activities of each phase.

The five phases in project management are scoping of the project, developing a master plan,
launching or implementing the project, monitoring of the project, controlling the project and
finally closing out the project. These five phases can be explained in a diagram as follows:

monitoring
scoping of developing launching and
the project the project the plan controlling
the project

closing
out

Scoping the project: This refers to stating the problem, establishing the goal of the project,
identify a success/ failure criteria , listing of all the assumptions, finding the risks and
obstacles allied to the project etc. In the project of Zaira Cosmetics, the scoping of the
project is as follows:

Stating the problem: The problem is to find out a solution to make use of the by-products in
the manufacturing of cosmetics. The opportunity is to make beauty soap from the by-
products that are wasted during the production of colour cosmetics.

Project goal: manufacture beauty soap using the by-products wasted during the process of
manufacturing the cosmetics.

Objectives of the project (SMART): The objective of the project is to make use of the by-
products wasted in the manufacturing unit to convert it into profit for the company.

Success criteria: The success criteria of this project will be using all the wasted by-products
to make beauty soaps and gaining market. If the soap production is successful using the
existing resources, the project of new product development can be deemed to be successful.

3
Assumptions: The assumptions are that the by-products that are produced during the
manufacturing process of making cosmetics can be made use for any creative purposes like
developing a new product. The machinery and the current resources of the company can be
utilised for this purpose at no extra cost. This product can be marketed as the company has
competitive advantage in the market and has a brand name of its own.

Risks and obstacles: The risks related to this project the issues in the chemical formulation
of the new product, availability of machinery to produce the new product, doubts regarding
the production capacity of the plant. Financial costs for producing the beauty soap has to be
reduced at the maximum as the company cannot invest a considerable amount of money in
this new product.

Developing the plan: The plan has to be developed according to a work based structure for
estimating the task duration, listing the resources requirement of the project, analysing the
project network and finally preparing a project proposal.
The project tasks of the Zaira cosmetics are to develop a new beauty soap that can be
manufactured using the existing by-products and resources in the plant, make machinery
and all the manufacturing resources required for the production of the soap, make the
production cost effective in every aspect, plan the human resources for the project and
marketing the product.

Duration of estimate task: Zaira cosmetics plan to launch the soap in the market within three
months. So the available time for developing the new product and launching the product for
the first time in the market is three months.
Resource requirements: The resources required for producing the soap are the chemical
ingredients, machinery, equipments, and manpower.

Construct the project network: The project network is as follows:

By-products in the cosmetic manufacturing machinery and equipments of the plant
labourers of the manufacturing unit - packing the final product marketing

Launching the project: The project has to be launched by preparing a formula for producing
the soap, assessing the quantity of each ingredients required, assessing the time and
labour for making the soap, checking the availability of the machinery and equipment ,
allocating resources and team members for launching the project.

4
Monitoring and controlling the project: The project is monitored and controlled by engineers,
chemists, and manager.
Closing of the project: When the soap is produced successfully without any extra cost to the
company, the new project of this new product development can be closed.

Task.1.2. The method used to appraise the viability of the project and the methods
used.

A project must be viable and cost effective in its end results. A success failure criterion is the
best method that can be used to evaluate the viability of a project. The success or failure of
a project is the evaluated through the outcome of the project. A project has three elements;
project objective, project scope and project strategy.

Project objectives explain the objective of the project that is to be achieved. The objective of
Zaira Cosmetics is to produce beauty soap thereby developing a new product. If the project
is able to achieve its objective, it can be said to be a success.
The scope of the project is to produce the soap using the existing by-products that are
produced in the manufacturing plant. Further, the strategy of the project is to utilise the
wasted by-products in the company, make the optimum use of the machinery, equipments
and human resources of the company, and make the system cost effective.
Operational cost: The operational cost of the project must be kept minimum and should not
exceed the targeted figure. The operational objective of Zaira Cosmetics is to reduce the
cost of production of the soap thereby making use of the by-products. The optimum
utilisation of the existing resources would certainly reduce the cost of the project.
Time criteria: Time is another criterion for measuring the success of the project. The
expected deadline for completing the project is three months. If the project is successfully
closed within the span of three months, the project can be said a success.

If the outcome of the project of has attained its project objectives and implemented the
project strategy within the project scope, the project can be said to be a success. In short, if
Zaira cosmetics is able to produce a new beauty soap using its existing resources within the
stipulated time, by reducing the operational costs and thereby attain the strategy of making
cost effective use of resources and the product is successfully launched , then the project
Zaira Cosmetics project can be said to be a great success. These factors can be regarded
as success criteria of the project.

5
Further, in financial terms, the project appraisal can be done through several tools and
techniques. Investment appraisal is one such popular tool for evaluating the cost
effectiveness of the project. Investment appraisal method helps us to determine how the
money send on a project is benefited by the company at present and in future.
An ideal method of evaluating the financial benefits of the project of Zaira Cosmetics is the
payback method. According to this method, the time spent to repay the investment made
initially is taken into account. This method can be put into a formula:

Days/Weeks/Months x Initial Investment

Payback = ------------------------------------------
Total Cash Received

Year 1 income - 5000

Year 2 income -7000
Year 3 income - 8000
Cost of project = 10000
Annual income from investment = 5,000/year
Payback = 36 x 25000/20,000 = 45 months (3 yrs, 10 months).
Task.1.4. Outline of the process which took place at the end of the project.

The completion and closing of a project is done by the Project Manager who is in charge of
the entire project. This is formally done by Project Manager by closing out the project and
terminating it with a closing report. This is entirely left to the managerial decision.
By the end of the project of Zaira Cosmetics, a project audit was conducted which analysed
the status of the project, the project objectives, operational objectives, cost incurred in the
project, resources spent and the problems encountered in implementing the project.
The current project of Zaira Cosmetics is a great success even though the costs exceeded
the expectations. Still, the extra amount spent on the project is a negligible amount when
compared to the benefit realised.
The project of Zaira Cosmetics was terminated as a normal process at the completion of the
project. The punch list which is the list of incomplete programmes of the project can be said
to be none in the case of this project. This is evident even from the audit trail which gives the
entire account of the project. The audit trail is analysed in the termination stage of the
project.
Later, after terminating the project, a post project appraisal is done. This is done by receiving
the review and feedback from the project team members. This was helpful in making

6
improvements in the later stage. The final project appraisal report is then compared finally
against the original project objective. This also turned out to be a complete success.

Task. 2.1. Organisational structure of Zaira Cosmetics and a comparison with the
matrix structure.

Organisational structure: The organisational structure of an organisation refers to the power

and reporting relationship carried on internally including the controlling and decision making
process. The organisational structure of Zaira cosmetics is a functional one. The nature of
the project and process of Zaira Cosmetics also demand a functional structure. The entire
organisation is divided according to the functions performed. Each teams performed the
functions entrusted to them. All the team leaders were responsible to the Project Manager. It
is the Project Manager who supervises the project and the accounts manager determines
the matters regarding the financing of the project.
Teamwork: Each team functioned under the team leader. The entire project is divided into
different functions like team to assess the quantity and quality of the by-products, potential
uses of the by-products, preparing a formula for making the soap using the by-product
assessment report, assessing the cost of the soap making, technical advice on soap
production, formulating a plan for the operational process, packing and storage. The
administrative staff of the project helped in the liaising with each functional group.
A comparison with the matrix structure: In the functional structure, decision making is
centralised from the top and the lower divisions implement the decisions from the top
management. This is in contrast with the matrix structure where the organisational structure
is more flexible and loose. The functional structure is more stable than the matrix structure.
In a functional structure, the employees does not have much say in the decision making
process while in the matrix structure, there is much scope for discussions and
interdepartmental relationships. Projects are quickly implemented in a matrix structure rather
than in a functional structure. Even though matrix structure is more flexible, there is room for
chaos among employees during the operational process.

Task.2.2. Ways to control and coordinate the project activities and project team
(human resources)

The success of every project depends on the team work of its members. The success of
fulfilling the team work depends on the leadership skill of the manager.
The project manager of Zaira Cosmetics is in charge of controlling and coordinating the
project. He controlled every stage of the project according to the project plan.

7
The manager found it difficult to control the operational process of the project at several
stages. The reason for this is that the implementation of the functions of certain teams was
delayed due to the lag in the functioning. This also caused an unforeseen increase in the
expenses of the project. This also caused the delay in the implementation of the work of
other teams. The manager could have foreseen these delays and made considerable
changes accordingly. This could help in reducing the expenses.

Further, the manager could have fixed a timescale for the completion of each activity in the
project. The Project Manager should also coordinate the activities of each department. The
delay and confusion of allowing finance for the operational process also could have avoided
avoiding the delay in the implementation of the project activities.

Task.2.3. The style of leadership that was used during the project and evaluation of its
implementation.

Every project requires leadership skill on the part of the manager of the project and the type
of leadership skills required depends upon the type of the project and personal qualities of
the manager.
The leadership style followed by the leader of the project of Zaira Cosmetics is that of
democratic leadership or participative leadership style. In this style of leadership, the project
manager encourages all the team members to participate in the decision making process
and other activities, pay attention to their suggestions and feedback. The democratic style of
his leadership skill was helpful in coordinating every team members and avoiding conflicts
and chaos. This was also helpful in bringing out the talents and problem solving skills and
decision making skills among the team leaders and team members.

Task.2.4. The utilisation of human resource in the project of Zaira Cosmetics.

The Zaira Cosmetics project requires a variety of staff members who are skilled in different
fields. The assessment of the by-products and their utility in developing a new product has to
be assessed by chemical engineers. Further, the new product has to be developed by an
array of chemists and lab assistants. The developing of the beauty soap required the
assistance of cosmetologists also. Apart from them administrative staff, accounts and
finance staff, operational staffs, technical engineers, marketing staff etc has to be employed
in implementing the project. The role of the management in preparing the strategy is also to
be particularly noted in this aspect.

8
The HR requirement of the project was established by checking with the project manager
and team leaders as they are capable of making an assessment of the kind of staff required
for performing each kind of activity. As Zaira Cosmetics has been making use of its existing
resources in developing the new product, it was able to make use of the existing human
resources in the company.

Task.3.1. The critical elements of any successful project plan and the details of the
main elements of the project of Zaira Cosmetics project plan document and their
purpose.

The critical element in every project is the successful implementation of the project objective.
The project of Zaira Cosmetics is related to the developing of a new beauty soap using the
existing by-products available in the manufacturing plant. This has to be done in the plant
itself and the successful developing of the soap is the critical element in this project.

The project organisation plan is done by entailing the details of the project, specifying the
project objectives, preparing a work breakdown structure by way of a Gantts chart. The
purpose of providing these details in a project plan is to ensure their efficient implementation.

Task.3.2. Use of critical path analysis and Gantt charts in or could have been used
the process of the chosen project.

Gantts chart is used to make a detailed programme plan of a project to ensure their timely
implementation. Zaira Cosmetics also developed a Gantts chart for the implementation
purposes. The Gantts chart provides systematic plans in their order of implemntiaon within a
time frame. Milestones are included in the chart which mentions the significant points in the
project implementation.
The preparation of a Gantts chart in the project of Zaira Cosmetics helped it to plan the work
and maintain a systematic balance of scheduling the work. This was helpful in reviewing hte
progress of the work and making improvements.

Task.3.3. Methods for measuring performance that were used during the chosen
project to ensure that the triple constraints of scope, timescale and resources were
managed effectively.

9
The triple constraints in evaluating a project are scope, timescale and resources. The
performance of a project can be measured by assessing the triple constraints and it also
helped it to effectively manage its resources. The successful implementation of the project
depends on the understanding of a manager regarding the object to be achieved, the way to
achieve it and the resources that are required to achieve it.

Controlling the costs: It is the project manager who controls the cost of a project. The
project manager of Zaira Cosmetics estimated the cost of the project, the resources required
implementing it and the operational activities needed to fulfil it. This planning helped the
manager of Zaira Cosmetics to effectively control the cost.

Techniques: It is the project manager who allocates all the resources required for
implementing the project. The project manager assesses the competency of the human
resources, technical and financial resources and material resources needed to perform the
work. This assessment and estimation of resources helped him to ensure a regular cash flow
and work flow.
Performance: The project manager of Zaira Cosmetics performed a cost benefit analysis of
the project by estimating the costs required to implement the project and also estimating the
benefit derived from the project using the NPV method.

Task.3.4. Evaluation of the use of change control procedures throughout the chosen
project and evaluation of the success of the chosen project.

Change management is a part of operational and strategic management every project might
require changes to be made in the course of its implementation. Change in circumstances,
change in financial and human resources, the availability of material resources, change in
the project strategy etc causes a change in the project design. It is the manager of the
project who determines the need for making necessary changes in the project.
In the project of Zaira Cosmetics, the ,project manager has to make changes in the decision
regarding adding a different kind of fragrance in the making of the beauty soap because the
existing fragrance derived from the by-products may not be attractive to the customers.
Hence, the company had to buy new fragrance at a, low cost to produce the soap.

10
References

Verzuh, Eric, (1999) The Fast Forward MBA in Project Management, Chapter 7, John
Wiley & Sons, Inc.
Tuman, G. J. (1983) Development and Implementation of Effective Project
Management 'Information and Control Systems, in Project Management Handbook,
ed. Cleland D. I. and King, W. RVan Nostrand Reinhold. New York.
Slevin, D. P. and Pinto, J. K. (1986) The Project Implementation Profile: New Tool for
Project Managers. Project Management Journal, Vol. 18 pp. 57-71.
Nohria, N. (1991) Note on Organizational Structure, Boston, Harvard Case Services.
Alter, S. (1979) Implementation Risk Analysis, in The Implementation of
Managernent Science, ed. Doktor, R., Schultz, R. L. and Slevin, D. P.North-Holland.
New York.
Adams, J. R. and Barndt, S. E.(1983),Behavioral Implications of the Project Life
Cycle, Project Management Handbook, ed. Cleland, D. I. and King, W. R. Van
Nostrand Reinhold. New York.

11