Risk Management: Global Engineering Project Assessment Answer

Questions:

Task 1

Each short answer question requires a response in few sentences.

1. What are the core principles/characteristic of any project and why are they important?

2. How would you have defined the scope of the project in the task 2 case study (concrete masonry corporation)

3. Using the information below, plot out full project Gantt chart and identify the critical path? How many days does it take to complete the project? What are the benefits of using the Gantt chart?

4. Define on of the following cost appraisal methods: NPV, payback or IRR. What are the benefits of you chosen method?

5. How would you have assessed and managed the risks on the project in the task 2; case study (concrete masonry corporation)

6. What quality methods (project evaluation, monitoring and quality control) would you introduce to ensure this task2; project (concrete masonry corporation) is completed successfully.

Task 2:

The Concrete Masonry Corporation designs and manufactures pre-stressed concrete for the building industry.  For years, the company enjoyed a stable marketplace, and a relatively predictable business environment. Although there had been a boom in residential construction in recent years, commercial work was on the decline. As a result, all the pre-stressed concrete manufacturers were going farther afield to big jobs. In order to survive, Concrete Masonry Corporation was forced to bid on jobs previously thought to be out of their geographical area. Survival depended upon staying competitive. However with the declining conditions of the market and the evolution that had drastically changed the character of the market place, the Concrete Masonry Corporation previously successful approach was now in question. With the removal of trade barriers and other globalized international trade agreements the Concrete Masonry Corporation found itself competing with other pre stressed manufacturers headquartered in countries around the world. A decision was then made to transfer a number of manufacturing machines to a new site in Eastern Europe to allow more agility and efficiency within their manufacturing supply.

Answers:

Task 1

Significance and core principles of the project

The project management provide the knowledge and understanding of conducting a project successfully in order to achieve the project objectives. The project deliverables are innovatively coordinated and executed by the project manager with the help of innovative project management tools (Agrawal, 2009). It is imperative to have a reliable project planning that will assist to conduct each activity in a pioneering way. Therefore, the effective planning guidance and extraordinary project managing capabilities are established. However, making transfer to the new target market and increasing the efficiency of production rate is innovatively done by the project manger by arranging the machineries and equipments in an effective way that will provide the maximum output.

Scope of the project

Project scope management consists of several components such as initiation of the project and in this phase the reliable planning and preliminary design of the framework is conducted. After that the scope of planning consists of the valuable output of the project in future. The defining of scope includes the delivery of project objectives to the members of development members (Atesmen, 2008). Finally, the scope verification and scope change control also coordinated and managed by the project manager.

Gantt chart, critical path and benefits of using Gantt chart

Gantt chart helps in identifying each activity with the time. Therefore, the primary benefit of using Gantt chart is that the risk of time overrun is eliminated after implementing this particular approach (Bennett, 2003).

Critical path

NPV, payback or IRR and benefits of the chosen method

Net present value, internal rate of return and Payback period are the investment appraisal techniques which help to provide the management to take effective decision regarding the company taking investment techniques.Net present value is considered to be one of the most effective time value which help the company to take investment proposal techniques. Net present value of the company is considered to be one of the effective and accurate information regarding the company. Payback period is considered to be one of the simple and basic investment appraisal techniques which help the company to determine the number of year which are required to complete the project for the given period of time. Internal rate of return help to give the company accurate and reliable information as it also take the time value of the money into its which help the company to take effective decision elated to the company investment project related to the company. The best and accurate information help to take the effective decision related company investment project option.

Risk management

The risk rating tools and probability of risks are illustrated below

Project method, monitoring, and quality control 

The effective methods and monitoring is conducted by the project manager and most importantly the reliable and extraordinary tools are implemented by the project managers that help in conducting the project successfully. On the other hand, the appropriate quality management tools are implemented that helps in conducting the entire project successfully (Blokdijk, 2007).

Task 2

Introduction

The concrete Masonry Corporation primarily produce concrete for building industries and in recent times the residential construction business is going through a critical condition and for this particular purpose the company decided to further expansion of their market place in other geographical region (Bukchin and Rozenes, 2011). Therefore, a new site in Eastern Europe is managed by the company and as the huge demand of condition work is present the company will be able to make an excellent knock in business operation. In this particular context, several machineries and equipments will be transferred through sea transportation and after that the equipments will be delivered to the new unit via road transportation. The innovative monitoring and supervision is provided by the project manager that helps in conducting the entire project successfully. On the other hand, the manufacturing department efficiency will be increased with the help of innovative leadership quality provided by the company as well as the product qualities are also maintained through total quality management tools. The reliable framework is developed by the project manager that helps in executing the entire activities in an innovative way and the efficient team is present therefore the activities will be conducted as per the developed plan. However, the skills and knowledge of project manager plays an important role in overall project and in this particular context the reliable knowledge and understanding of work is present in project manager (CHEN and WEN, 2010). The reliable budget is provided by the company £900,000 pounds and the desired time frame of 6 months are also given that helps in conducting each stage successfully. Project life cycle and quality maintenance approach are also illustrated in this particular context and effective communication tools are also implemented that helps in providing the best possible understanding of ongoing task to the members and therefore the desired output is achieved by the development team (Consoli, 2006).                

Project planning

In this particular context, the project manager plays an important role because the entire development framework is executed and developed by the project manager. The daily reports are also taken from the ongoing work that provides a clear and precise idea about the working process (Costa, 2003). First of all, the planning documents are forwarded to the site engineer and the proper understanding is provided to the members it helps in executing the transfers of each equipments and machineries in an innovative way. 

The project goal and objectives are established and the transportation cost is become one of the most critical components which is managed by the project managers innovatively (Crawford, French and Lloyd-Walker, 2013). After that, the reliable quality management tools are implemented by the project manager that helps in proper handling of machineries and equipments. After the dispatch of material to the Eastern Europe the road transportation is used by the project manager to deliver the materials to the project site. During the delivery system the machinery and equipments are fitted on the specified that that will help in increasing the overall output of production and therefore the company will be able to generate the reliable revenue from the market. Furthermore, it can be stated that the ensure process of project execution to finalisation framework is developed in planning section that provide immense impact in overall project (Crouhy, Galai and Mark, 2000). Most importantly, in this particular context the reliable measures and innovative tools and techniques are implemented by the development team members.     

Cost control

Cost control is one of the most critical components and it provide critical impact on overall project, On the other hand, the reliable profitability from the target market is achieved by the company because the functional areas development is innovatively conducted by the management department that help to create a competitive advantage in the market (Cuéllar-Franca and Azapagic, 2013). The extraordinary cost management is done with the help of effective tools and techniques and they are as follows.

Cost estimating

The cost estimating is innovatively done by the project manager because each activity stage cots is sub divided and the best possible estimation is done including the transportation cost, operating cost and development cost (Eskerod and Blichfeldt, 2005).

Cost accounting

Cost accounting is innovatively done by the project manager because a separate accounting department is developed by the project manager that helps in better monitoring of financial assets because as per the requirement the reliable financial funding is provided by the accounting team (Heerkens, 2006).

Project and company cash flow

The cash flow of cash stage is calculated innovatively by the project manager and most importantly the reliable contribution is provided by the accounting department to showcase the project cost and company cash flow is analysed by the management department and functional area development is conducted after conducting cash flow analysis (Holm et al., 2013). Most importantly, cash flow analysis help to understand the project process development because each stage of cash flow is analysed in comparison to the output provided by the particular activity.

Direct labour cost and overhead costing

The labour costing is one of the most significant components that provide immense impact on overall costing. The human resource costing is innovatively arranged and as per the roles and responsibilities of the project the reliable compensation are provided accordingly.    

Execution of the project

The appropriate execution must be done as per the requirement of the project and in this particular context project plan is innovatively carried out. On the other hand, the scope verification is conducted and therefore the adequate amount of knowledge and responsibilities of individuals’ managers is illustrated with the help of this particular approach (Holmes, 2002). After that the quality assurance is conducted that helps indentifying the overall project performance and most importantly, it become clear that all the quality standards are innovatively maintained by the development members. Team development is one of the most significant stages that provide immense significance on overall project five members team were present previously and as because it is a huge transferring project the adequate team members were selected to make the project successfully in terms of sustainability and reliability. Information distribution is also conducted because the reliable information are available and therefore the reliable supply of construction material were delivered within the given time schedule (Jeswani, Smith and Azapagic, 2012). Resource allocation is significantly done after understanding the exact requirements of the project and in this particular context the reliable resource allocation and suitable administration is done by the project manager that results in achieving desired output of the project.          

Models of project management

The project management maturity model (PMMM) is implemented in this particular context that helps in increasing the reliability and accuracy of the project because the model consist of five stages and most importantly all these levels provide different degree of maturity in this particular project (Kehl et al., 2001). However, this particular framework helps in executing the overall project in systematic manner. 

Figure- Project management maturity model

The above model provides enormous contribution to the project because each stage helps in conducting the developed framework in best possible way. The suitable language terminology is used in this particular context that help in providing each stage of knowledge to the development team. Therefore, the overall output of the project is achieved and as per the established objectives the reliable work is conducted by the development members (Kerzner, 2013). The suitable project management principles are used in this particular project the basic knowledge of project management helps each individual to conduct their roles and responsibilities in an innovative way with the help of simplified methodology of continuous development. The modern and advance technological tools are implemented by the project manager that helps in increasing accuracy of the project as well as help in conducting each stage of activities with great zeal and affection. The machinery and equipment transfer should be done with proper care because any kind of damage can results in huge financial loss of the company (Kerzner, 2011).  The process improvement is conducted after the evaluation of performance of each stage and it help in reducing the chances of cost overrun and delivery delay. Furthermore, it can be stated that the five levels of maturity model helps in monitoring each stage of the project in an innovative way. The final level of project management maturity model helps in increasing the level of conducting the project and thus the continuous improvement results in achieving the successful results of the project and the products are delivered to the customers as per their requirement within the delivery time process previously by the company (Kloppenborg, Tesch and Manolis, 2014). 

Project Integration

Time management

Time is one of the most valuable components of project management and it must be managed innovatively by the project manager and each day report is taken from the service engineer regarding the transfer and most importantly after the dispatch the reliable road transportation system is observed and the required time is calculated and as per the time taken by the road transportation the dispatch is conducted from the old site. After that the manufacturing unit development is conducted (Krause, 2006). The each activities time is properly maintained by the development members.   

Cost management

Cost management is one of the most critical components that provide immense impact on overall project and in this particular context the reliable precautions and measure are undertaken by project manager such as cost estimation, budgeting and cash flow analysis. The cost management tools helps in eliminating the chances of cost overrun and it help the project development team to increase their reputation by providing extraordinary work to the company (Lawson, Wearne and Iles-Smith, 1999). With the help of effective cost management the project goal and objectives are achieved.    With the help of cost estimation process each activities stags cost is analysed and after that the total cost is compared with the estimated budget provide by the company. Cost control techniques are implemented by the project management team because it helps in providing the reliable cost for the activities to be conducted to make the project successful in terms of quality and reliability. Accounting department is developed by the project manager to supervise make effective control in cost management.     

Quality management

The total quality management tools are implemented by the project manager because the business of the company is going globally and to make competitive advantage in the market the reliable quality management tools are implemented such as ISO 9000 (Westland, 2006). The supply chain management system is enhanced after the development of the enhanced manufacturing system the machineries and equipments are placed in an innovative way that results in increasing the productivity of the company (Mills, 2013). Most importantly, with the help of quality management tools the service quality is become higher and it helps to enhance the service and facilities of the company. There are some regulatory regulations are present that must be maintained by the development team as well as the company because the product quality enhancement will help to attract the customers in an innovative way and in transferring of the materials the reliable precaution and measures are undertaken with the help of quality tools.   

Communications

There are some extraordinary communications channels are use in this particular project. It is important to communicate with all the stakeholders included in the project that will help to provide better understanding of project goals and objectives (Portman, 2009). In this particular context, the reliable communication with the road transportation authority of Eastern Europe is conducted because after the machineries and equipments are delivered to the port and after that the road transporting is utilised. The walky talky is used by the stakeholders to communicate regarding any kind of activities because the proper understanding of project actuates must be provided to the team members and it will enhance the service quality. Simultaneously, the expectation of the company will be fulfilled because with the help of effective communication the product delivery system of new unit will be increased. However, the advance technological applications are utilised by the project managers to communicate with the members while conducting the transfer from one site to another. Furthermore, it can be stated that the effective communication provide several advantages to this particular product as well as help in eliminating type miscommunication issues and results in achieving the desired output of the project (Wallbridge, Banford and Azapagic, 2012).       

Risk management

Risk management is one of the most critical components that provide immense impact in overall project and in this particular context the risk migration strategies and techniques are applied by the project manager that helps in conducting the entire project innovatively.

Each stages of project risk management are conducted by the project manager and it helps to complete the entire project successful. The member of development team safety is conducted by taking valuable measures and tools that ensure the safety of members of development team (Quenault, 2001). On the other hand, the equipments and machinery safety must be taken by the project and for this particular purpose the reliable precaution and advanced technological application are implemented to conduct the loading and unloading of material safety. The high weight capable engineers are involved to unloading and dispatch to the material to the cargoes loaded in the truck. Most importantly, the traffic management is innovatively done by the project manger because the new site is far away from the port and for this particular purpose the reliable road management and safety precautions applications are implemented (Roberts, 2011). However, a 20 members team of traffic management team is applied by the individuals that help in better trafficking system management that simultaneously help to reduce the rate of accidents during the dispatch of materials form the port to the new site because if any damage of occurs than it will provide critical impact on overall product and the company financial damage can hamper the business expansion process as well. Therefore, the valuable precautions and innovative supervision is done by the members to deliver the materials safely to the new site of the company.

Leadership

It is important to establish better coordination and monitoring between the members of development project because it helps in executing each activity of transportation, handling, and quality maintenance and safety management. In this particular context, the transactional leadership strategy is implemented by the members that help in increasing the confidence of the development members and on the other hand the reliable understanding of project objectives and goals are delivered to them by the leaders (Smith, 2007). Therefore, it is evident from this particular project that innovative leadership is one of the most imperative components of a particular project development because it helps in increasing the overall output of the company by increasing the efficiency of each development members. However, the critical situation handling and executing of critical tasks knowledge is mainly delivered by the members. Most importantly, the motivation and commitment of the employees are increased within the company because several policies and compensation and increment policies are launched by the company that helps in building a market reputation in new target market and employees’ retention is innovative done by the company.    

Role of project manager

The project manager plays an important role in overall project and the each responsibilities of conducting the project is taken by the project manger and therefore the effective supervision and well skilled as well as experienced project manager is required to complete a project a successfully. The project goals and objectives are appropriately fulfilled and the established framework is properly recognised and implemented by the project manager Kevin Lewis (Turner and Tuason, 2010). He is one of the most key factor to make the project successfully without making any uncertain or unexpected loss of financial assets of the company because any kind of damage occurs in equipments and machineries then huge amount of financial loss may suffered by the company. Each stage of activity is critically analysed by the project manager and cost return are also analysed with the help of innovative software tools. However, it can be stated that the project managers provided enormous effort to make the project successful in terms of reliability and financial feasibility is also present. Furthermore, the role of project manager is suitably maintained in this particular context of transferring the construction elements and development of enhanced manufacturing unit that will help to satisfy the needs and demands of the customers.

Lifecycle of the project

The effective life cycle approach is highly required to make the project successful in terms of quality and reliability and in this particular context of transferring the equipments and machineries of concrete masonry Corporation the suitable life cycle approach is undertaken that helps in understanding the needs of resources in functional areas and with the help of effective supervision and monitoring of project manager (van den Ende and van Marrewijk, 2014). Most importantly, project management cycle provide an innovative framework of conducting the entire project successfully and with the help of the innovative framework the project objectives are achieved.

The life cycle of the project is starting from project initiation to project closure. During the stage of project initiatives the project charter is developed by the project manager that help in smooth running of the project because the roles and responsibilities of members and the proper understanding of project activities are delivered to the members of development team (Wysocki, 2004). Planning is one of the most critical conducted effectively and the desired framework is properly analysed by the project manager because the entire process is entirely dependent upon the planning. After that the execution of that developed planning is conducted innovatively with the help of advance technological application and software (Vanhoucke, 2012). After conducting each activity with great zeal and affection the desired output is achieved by the project and on the other hand the company is able to able a good knock in the new target market because the manufacturing department development is conducted with the help of proper arrangements of supply chain system and product delivery system. However, the best possible tools and techniques are implemented to make the project successful in terms of quality and reliability.

Conclusion

The project provide a clear and concise idea about the concrete masonry corporation equipments and machinery transfer to the Eastern Europe to increase the profitability of the company and to make the project successful in terms of quality and financial reliability the innovative team is hired by the company (Walker and Loosemore, 2003). With the supervision of Kevin Lewis the project manager each activity is completed according the project objectives. Furthermore, it can be stated that the reliable risk migration strategy and extraordinary tools of project management is maintained by the project manager that results in making the project successful.

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