Question

QUESTION 3 – PM SKILLS AND RISK [25 MARKS]
Your Senior Project Manager at Super IT Pty. Ltd. is extremely satisfied with your project selection and your Project Scope. Your Senior Project Manager has then shared their experiences while developing their previous projects. These included past projects having delayed schedule problems. Therefore, he/she has suggested that you need to explore all such potential factors that may contribute to your chosen project and create action plans.
On the top of this, your Senior Project Manager has asked you to further analyse whether you need to proceed with the prototype of your mobile application or not. The prototype will cost you $20,000, while there will be no extra cost if you do not develop a prototype. There is a 20% probability of failure for the prototype, and the cost impact for it will be $50,000. Nonetheless, the project will make $300,000 if it is a success. If you choose to not develop the prototype, there is an 80% chance of failure with the impact cost of $150,000. Keep in mind that the project will make $300,000 if it succeeds without a prototype.
3.1 List three important skills needed as a Project Manager in order to be able to execute the tasks from Question 2 and 3 and state the reasons.
[5 marks]
3.2 Use the cause and effect diagram (fishbone diagram) to visualise all the potential problems which could contribute to the delayed schedule problem for your chosen project.
[5 marks]
3.3 Develop two action plans to reduce the threats of delayed schedule problems for your chosen project.
[5 marks]
3.4 Explain how you decide whether you will develop a prototype or not. A diagram and step by step calculation are required to answer this question.
[10 marks

Answer 1

3.1:

1. Leadership

Project leadership was a hot topic this year. Being able to lead your team as well as manage them is a trend that shows no sign of abating (and that’s a good thing). It’s really important to be able to inspire others, set the vision and lead effectively, so if that’s not your strong point resolve to work on it now.

2. Negotiation

It would be lovely if everyone did what was best for the greater good at all times, but projects don’t work like that in real life, do they? Project managers with good negotiation skills will be an asset to their teams as they seek to resolve conflicts by finding the win-win scenarios for everyone.

3. Scheduling

It should go without saying that project scheduling is a core project management skill. However, speaking to people who manage project managers during end-of-year review time I have heard that some of them aren’t up to scratch in this area.

Get to grips with project scheduling because a) it’s your job and b) it will help you deliver things more successfully for others

This phenomenon is best expressed in two (2) well known, time tested adages:

• Parkinson's Law, speaking to effort, tells us that "work expands to fill the space allotted".
• Murphy's Law, speaking to uncertainty, tells us that "whatever can go wrong will go wrong, and most likely at the worst possible time". This is the reality faced by all project managers. No matter how much time you have for a project, it will likely be consumed, and no matter how well you plan, eventually you will always be faced with the "unexpected".

Step 1: Start Projects with Realistic Deadlines

1. Realistic deadlines are designed to fill specific needs (the project "mission").
2. Realistic deadlines are designed to produce specific results (the project "deliverables").
3. Realistic deadlines are based on actual fact - considering required work and resources
4. Realistic deadlines are designed to incorporate and consider all relevant constraints.
5. Realistic deadlines are designed to reflect resource availability and related capabilities.
6. Realistic deadlines are fully reflective of all risks and priorities.
7. Realistic deadlines incorporate "extenuating circumstances".
8. Realistic deadlines are fully defined and documented as part of the "project definition" process.
9. Realistic deadlines are sufficiently specific so that they can be maintained properly as project changes are approved and implemented.

Step 2: Learn to Expect the Unexpected

To certain extent, "project delays" are quite common and to be "expected". The "unexpected" nature of the "project delay" relates not to possibility, but to the type, source, probability and timing. Certain types of delays are highly predictable (i.e. late delivery from outside sources), and can be factored into the schedule before project work begins. Other types of delays may be foreseeable, but cannot reasonably be factored into the schedule in advance. If every possible delay was factored in to a planned schedule, planning would take too long, projects would be deemed too lengthy and costly, and would never be approved.

Step 3: Be Proactive to Minimize the "Unexpected"

1. Be Aware. Every project has its own rhythm and flow. Using your knowledge of project goals, priorities, and project team dynamics, you can pick up on the warning signs of pending delays, and you will be in a better position to make the tough decisions.
2. Schedule Wisely. Unexpected delays can be minimized through strategic scheduling. Every project should begin with a reasoned, workable project schedule incorporating identified dependencies, and benchmarks.
3. Follow a Process. Every project should be managed with established, tested procedures for timely, meaningful status reporting, whether formal or informal, provide key information to identify missed deadlines and potential project delays.
4. Communicate Often. Communication is a key element of project success, essential for managing customer expectations and related conflicts. When facing project delays, every project manager must be able to communicate effectively with customers, relying on strong relationships to work through related issues and problems to salvage the project.

Step 4: Act to Mitigate the “Damage” Caused by Delays

What can you do to manage project "delays" once they occur?

1. Acknowledge the missed deadline and resulting delay as soon as possible. When project problems first appear, you must act quickly to avoid project delays whenever possible. But, once a deadline can't be met, and the delay seems inevitable, you must also act quickly to manage the consequences. Accept the facts, accept the responsibility, avoid blame, and get ready to respond.

2. Gather the right resources. In order to properly manage a project delay, you must to bring all the necessary resources together in order to analyze the problem and make appropriate decisions. Depending on the project and the nature of the delay, these resources can include your project sponsor, steering committee, relevant technical specialists, vendors, customers and other key decision makers.

3. Consider the consequences. Delays and missed deadlines can be accepted as long as the value of the project exceeds the consequences of the delay. In all likelihood, delays will impact project costs, resource availability, customer relationships, and related business needs. On the other hand, delays also present opportunities for project refinement, to re-think decisions that may have led to problems, take advantage of changing business circumstances, and possibly improve project deliverables.

Ans:

Yes a proto need to be developed as the statement

The prototype will cost you $20,000, while there will be no extra cost if you do not develop a prototype. There is a 20% probability of failure for the prototype, and the cost impact for it will be $50,000. Nonetheless, the project will make $300,000 if it is a success. If you choose to not develop the prototype, there is an 80% chance of failure with the impact cost of $150,000. Keep in mind that the project will make $300,000 if it succeeds without a prototype.

Prototype is very important to get throught getway goals of exact develry of project and incoming outcoming efforts and idea behind which if fails can be re-modelled from the proto which is created.

Depending on the complexity and importance of the problem, you can now investigate the most likely causes further. This may involve setting up investigations, carrying out surveys, and so on. These will be designed to test which of these possible causes is actually contributing to the problem.

Example:

The manager has now finished his analysis. If he hadn't looked at the problem this way, he might have dealt with it by assuming that people in the branch office were "being difficult."

Instead he thinks that the best approach is to arrange a meeting with the Branch Manager. This would allow him to brief the manager fully on the new strategy, and talk through any problems that she may be experiencing.

Tip:

A useful way to use this technique with a team is to write all of the possible causes of the problem down on sticky notes. You can then group similar ones together on the diagram.

There are four steps to using the tool.

1. Identify the problem.
2. Work out the major factors involved.
3. Identify possible causes.
4. Analyze your diagram.