Importance of Project Management Expertise

Question 1 Why is project management considered an excellent training ground for future senior executives in many organizations?

The knowledge and expertise in project management is becoming a necessity, for it inspires organizational strategic alignment, such that there is proper architecting of projects to advance clients’ needs, and organizations goals. Project management therefore ensures intended goals are met as per the clients and organization needs (Cha, Newman, and Winch 2018). In addition, project management motivates leadership and direction to projects. Leadership then enables teams to operate well to achieve expected outcomes. Project management will equally conceive vision and leadership, and motivation for teams to perform their duties diligently (Hwang and Ng 2013). Project management training accrues knowledge and expertise for effective planning and execution of strategic goals, leading to timely accomplishment of tasks, by disintegrating the project into simpler duties for teams. Project management training also informs of various methodologies for managing quality and controlling costs. Since projects operate in uncertain environments characterized by risk, the knowledge of project management accrued from training helps the company senior executives to develop mastery of understanding on how to manage quality, and control unnecessary costs which may translate to losses. Training is equally an avenue to understand how to deal with project failures, and how to learn from such failures, and success as well. Lastly, project management knowledge helps organizational executives to develop understanding of various intricacies surrounding projects. The knowledge forms a basis of understanding when the project is progressing well, and when everyone is doing the right thing (Todorović et al. 2015).

Question 2 Describe and define all the important attributes for screening models used to evaluate projects.

Screening models used in evaluating projects should have specific attributes and characteristics making them serve their purposes effectively. The first attribute is realism whereby the models should focus on the organisation’s aims and objectives, and seek to assist the organization meet these objectives (Cross and Elms 2017). Organisations are constructed under various missions and objectives. Consequently, an organization should choose and evaluation model which will reflect on these objectives. The second attribute is flexibility whereby the project selection model should not be rigid but flexible enough and adaptable to necessary changes as need arises. Additionally, the model should be able to provide clear results. Thirdly, an excellent evaluation model should be characterized by capability, in that the model should be capable of dealing with uncertainties which in many cases are pervasive in the project cycle and environment. Fourthly, the model should be easy to apply (Turner 2000). In this view, the model should be easy to comprehend, convenient to apply without requiring sophisticated interpretation or intense training to be able to apply. An easy to use model becomes effective as it does not necessarily require hiring technical expertise to operate which means it fulfills the attribute of realism as well. The last attribute of evaluation model us cost effectiveness (Rahimzad, Huston, and Parsa 2017). The model for evaluating projects should be low relative to the project costs and less than the project’s possible benefits.

Question 3 What are the steps in assembling a project team? Which is most critical? Why?

Farhangian et al. (2016) suggest five steps in the assemblage of teams for various project tasks. These steps are inevitable in growing a team to the point they are fully operational and delivering quality results. These phases include; forming, storming, norming, performing and adjourning.

Forming; this step is conceived when the team meets one another for the very first time. The team members familiarize with one another here, and share basic information concerning their backgrounds, experiences and interests, enabling them form impressions of one another. The team learns about the project at hand they intend to work on, discuss the project aims and begin thinking about the kind of roles they will undertake on the project team. On this phase, it is crucial that the team leader ensures all team members are engaged in establishing ways they will work together. The team in this phase relies in the leader for guidance and direction.

Storming; this step begins after the team starts to work together. This phase is the most important, because it is where it engages team members who have never worked together before, working developing and working together for the first time. In this phase, team members compete with one another for acceptance of their opinions, ideas and status. The members have varied opinions on that which ought to be done, and how it should be done, which might bring forth a conflict. As team members strive though this phase under the guidance of a leader, the team members learn how to solve challenges as a team, while operating independently as they settle into responsibilities and roles on the team (Sinclair 2019). For individuals who detest conflicts, this is their most difficult phase. The team leader should properly facilitate this phase, and get to listen to all team players, and respect the differences and ideas therein to ensure all emerging conflicts are attentively resolved without partiality and compromising.

Norming; this is the third stage which is marked when the team members begin to operate more efficiently as a team. The individuals cease to be driven by personal egos and goals but instead reflect on processes and procedures of working as a unit for the common goal. Team members respect and appreciate one another’ differences, even after perceiving them. Working collaboratively ascends to become a norm of the day. Trust begins inculcating and members start to help each other for the attainment of set project deliverables. The team equally begins marking key milestones as they start working together more efficiently.

Performing; the teams are operating optimally, with a common focus to reach the goal as a team. The team members by now have known one another well. Not all teams manage to this phase because most collapses at the third phase (norming). The team members in this phase are mostly operating without close supervision from the leader, and the members are intrinsically motivated to attain intended objectives. Upon mild disagreements, the members can work through it and derive consensus without necessarily interrupting the project processes (Figlin and SAP 2016). Under this step, the team leader is not engaged in problem solving or decision making; or day to day activities. The team leader instead facilitates and monitors the progress of the team and celebrates important milestones achieved with the team.

Adjourning; this is the last phase marking the end of the project. This phase conceives the team in totality rather than as individuals. The team leader ensures time is available to take part in celebrating the results, and mark key practices for future applications. This phase equally involves evaluating what happened in the entire project cycle, while capturing important aspects that can be used in the future. The phase equally grants opportunity for team members to bid each other goodbye and wish one another well in various circumstances (Orlova and Kasatkina 2017).

Question 4 Describe in details the reasons that cost overruns occur in project work.

Unplanned costs; Projects are complex entities which involve thoroughly planning before execution. When planning for a project work does not properly and accurately integrate material costs, labor and equipment costs, legal, administrative and other miscellaneous costs, costs overruns may eventually bedevil the project. Unplanned costs whether over-looked or unexpected will potentially bring forth cost overruns (Raykar and Ghadge 2016).

The second reason for costs overruns revolves around communication breakdown, which may happen between two or more project proponents. The miscommunication will result in cost the project money in remedying. Poor communication network within the project activities may result in operationalizing unexpected processes which will consequently eat into the project finances.

Thirdly, is the change in project scope which mostly occurs when the project gets bigger, or when the project begins to “take shape”. This will demand more finance to cater for the expanding project thus plunging the project into cost-overrun (Deshmukh et al. 2019).

Moreover, underestimating the project complexity or difficulty will immerse the whole project into a cost overrun, especially in the context of big and costly projects. Underestimating projects’ complexity will finally bring forth a realization that the set aside finances are not able to run the entire project to the end thus plunging the project into a financial overrun mess.

Additionally, unrealistic cost estimates results into huge discrepancies in actual costs for running project works. This may happen especially when the project leaders are not well informed about the market prices for procuring essentials for spearheading forth the project. This consequently leads to a big gap between the capital set aside for project implementation, and the actual value of implementing the project.

An inadequate leadership skill is also a precursor of costs overruns for many project works. Incapacitated project management as revealed through poor communication, poor planning, and missed deadlines is apparently going to induce the project to cost overruns as there is going to be traces of financial misappropriation which will end up subjecting the project work into a financial overrun.

Further, lack of a contingency plan (Plan B) will signify absence of back up plans and alternatives which the project will undertake upon sliding into a financial ditch, so that the project can continue on the right path. Absence of a contingency plan therefore leaves the project without any option when confronted with financial difficulties, thus driving it into cost overrun (Hamid and Waterman 2018).

Moreover, highly dynamic economic constraints such as inflation might cause changes in market prices for project. This may consequently paralyse procurement of necessary goods, and equipment because their prices are inflated. As a result, the project may turn out to be very expensive to implement, as efforts to persist procuring the necessary equipment will eventually cause financial shortages that will send the project into a cost overrun.

Lastly, inadequate financing especially when the project is in its middle stage of implementation may adversely impact the progress. Sudden cut on the flow of finance into the project for its continued implementation will consequently imply that the project will be stuck in its position. This may permanently affect the completion of the project deliverables in good time.

Question 5 Define and describe the function and interrelationship of a drum, drum buffer, and a capacity constraint buffer in CCPM. Use example to apply CCPM to multiple project portfolios by formal steps

According to Araszkiewicz (2017), Critical Chain Project Management (CCPM) is a time framework which puts into consideration the elements of task dependencies, scares resources such as equipment, people and space; and buffers essential to the successful execution of a given project.

The Conception of CCPM is constructed on the Theory of Constraints which was proposed by Goldratt (1989). This model was initiated and applied to solve challenges within the manufacturing domain. Afterwards, CCPM Model was crafted through the application of principles of the Theory of Constraints in the spectrum of project management. At the center og TOC is elevation of constraint, which is termed as an hindrance in the quest of achieving a goal. Such constraints may be in form of policy, physical, or market. The major role of CCPM is to permits project managers plan and manage project’s schedule by focusing on available resource utilized in the critical chain (critical path). Critical path refers to the longest path in the network pictorial considering the aspect of task dependency and resource availability. Critical path is a manipulated sort of critical path method in which a project’s processes apply aggressive time and contain limited resource accessibility. Whereas Critical Path Approach employs Float, CCPM employs buffers as strategic points eliminating risks engulfing projects. Critical path approach commences by aligning activities logically from the beginning to the end. After this logical arrangement, the slack (float) is computed by backward and forward passes, whereby in this process a critical path is determined, Total float refers to the duration which an activities may be delayed without the actual postponement of the completion date of the project task. Processes with zero total float are denoted as critical activities, while non-critical activities might be delayed by the duration of the total float without impacting the completion date. The path which comprises of critical activities is termed as critical path, and Leach (1999) suggests it is the longest. Buffers are important elements of the Critical Chain Project Management because they enhance the conceptualization of viable project schedule. Applications of buffers act as absorbers of any anomalies which might befall a project, such that the intended completion time is not compromised. The CC model suppose the eradication of all individual safety time and reallocating a segment of the alleviated safety time-to-time buffers. As a result, a high level of protection against project risks is enhanced while at the same time creating room for shorter times of project completion as opposed to traditional project approaches. This protection is important based on the highly volatile and unpredictable nature of project environments. A project buffer is therefore a safety time induced upon the end of the critical chain to safeguard the completion schedule of a project (Leach 1999).

A drum refers to the most heavily loaded resource in a production unit or industry. In a company’s production unit, applied resources vary with urgency and immediacy of application, whereby a drum is the most heavily loaded resource. Drum Buffer Rope refers to the planning and scheduling solution adopted from the Theory of Constraints. The major assumption of Drum Buffer Rope us that within any given company there is always a resource which is limited in supply, but yet very instrumental in the general output of the company. This resource is what Lau and Kong (2006) term as a drum. Non-constraints are the other type of resources matching their paces to the drum resource. The production pan of the company (plant) revolves around the drum resource, and executive managers take caution not to disrupt it through the application of time buffers. Drum buffer rope mainly focuses on three fundamental areas namely; creating the actual schedule or plan which undertakes the best use of capacity to optimize profits. Secondly, Drum Buffer Rope helps in the creation of relevant behaviors compatible to the execution of the plan. Thirdly, DBR enhances the provision of feedback in quest to establish opportunities for improving the system performances of the industry over time. Capacity constraint buffer ensures existing on-call resources are placed to evade unnecessary delays which may arise from unforeseeable issues within budget. Based on the conception that capacity constraint buffer places additional costs into the existing budget, it is not easily applied since it incurs expenses which might go against organizational control precepts. Consequently, a capacity buffer applies mostly in multi-project conditions where costs may be distributed along various project efforts (Steyn 2001).

Application of CCPM to multiple project portfolios by formal steps

According to Goldratt (1997), the main purpose for developing Critical Chain Project Management us the presence of chronic challenges to the present project management models, whereby such approaches, methods and software are not able to effectively eradicate aspects such as overspending, delays, and other undesirable issues within projects environment. According to Lau and Kong (2006), CCPM was developed to be used in project scheduling management, but later on became used in other domains within project management. Challenges revolving around the application of this model including determination of time buffer whose establishment constitutes particular extents of uncertainty are yet pervasive in this model. The initial phase for the application of CCPM in project management begins with the listing of tasks, duration-estimates for these tasks and dependencies. The first step encompasses formulating the initial time schedule for the project’s tasks. According to Lau and Kong (2006), CCPM establishes the Critical Chain as a bunch of tasks resulting in the longest way to their completion after the alleviation of conflicting tasks sharing common resources. The critical chain offers the perceived project completion time. Araszkiewicz (2017) proposes the following steps for the application of the Theory of Control in a multi-project environment;

Providing priorities to given projects, in accordance with the company’s strategy. This phase is crucial because it lays foundations for meeting the company’s objectives as well as those of the client. The project manager should strive to ensure organizational goals are matched with the client’s for more informed outcomes.

Initiating and developing time schedules for individual projects with the help of the CCM. This phase is important because it embeds determining the period which the project is likely to consume. This knowledge is important in the determination of a number of financial resources, or any other resource utilizable during the implementation period.

Establishment of the critical resource; this is important because it shifts the project towards a reality concerning the actual resource which will be the key driver of the entire implementation drive of the project at hand. Resources may vary with urgency, thus strategizing based on the level of importance helps in procurement strategies.

Establishing and summarizing resource tasks; this phase encompasses forecasting on the possible time spans given project tasks are likely to consume. This paves a way for also predicting the completion time, and allocation of buffers.

Orienting the projects within a particular time framework, to ensure the projects are implemented according to given priorities within shortest time possible. This involves assigning given projects a particular time frame within which given activities should have been accomplished.

Lastly, inducing capacity constraint buffers. This involves assigning tasks capacity constraints buffers, on the premise of uncertain project environment which nay induce unplanned delays. This helps in ensuring irrespective of any external disruptions induced upon the project, it still remains in force within the stipulated time framework.

The above steps of the Theory if Constraints become CCPM steps with little modifications as outlined below (Valikoniene 2015);

Identification if the critical chain, which is the project constrain. The establishment of critical chain helps in the prediction of the project duration. This phase equally encompasses the identification of the critical chain which is the longest series of activities, which meets the logical precedence relationships. The critical chain also presents forth resource constraints available.

Secondly, decide upon the prospects of how to exploit the critical chain through reviewing the tasks schedule and consider reducing time-spans through re-scheduling the activities at hand.

Subordinate other paths, tasks and resources to the critical path. This can be enhanced by inducing feeding buffers, resource buffers or rescheduling after the insertion og buffers.

Fourthly, is the elevation of the critical chain and establish whether the schedule is satisfactory in elevating the critical chain. Elevation implies to the extra resources applied, a change of sequence, or reassignment if activities to render efficiency to the working schedule.

The last step of CCPM is to align the project activities within the provided schedule and ensuring conformity to the end while monitoring every aspect of the same.

The role of the buffer upon the drum resource is to safeguard the projects’ starting date against the turbulent effects of delay in implementing the project. The magnitude of the buffer is established based on the principles of uncertainty buffering. In the final phase, a resource schedule is identified, encompassing the time taken by the drum resource to execute the listed tasks of other project management resources (Newbold 1998). Leach (1999) suggests identifying constraints in project management helps managers to understand the characteristic nature of such constraints and equip them with abilities to predict times of occurrence within the project implementation cycle. Legal and economic constraints majorly occur during the planning and conceptualization phases of project conception. During the implementation and operational phase, it is projected that the social and technical constraints are likely to occur. Comprehensive forecasting of constraints fosters effective planning and allocation of necessary resources. Besides, this will grant project managers abilities to correctly predict whether these constraints are temporary or whether they will paralyse the overall implementation of the project (Valikoniene 2015).

References

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