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Project managers must adopt a process of plan, implement, monitor & control around three interconnected variables: cost versus time versus scope. Expand and explain.
The accomplishment of large projects demanding considerable amounts of human, material and financial resources can be dated back to over 2000 years BC, with the construction of the great pyramids of Egypt. However the method for successful project management and its recognition as an intellectual discipline only started in 1953 with the Atlas Project, USA. It consists of four direct management functions plan, implement, monitor and control used against three variables inherent to any project cost, time and scope (Turner, 1993). Project Management is traditionally associated with large engineering projects in aerospace, shipping, construction and energy. However customers demands for novelty in recent years means that product development and market windows now need to be operated on shorter deadlines. Most industries have had to modify their traditional managerial styles into project-based management processes to be able to adapt rapidly to change and exploit markets ahead of their competitors (Turner,1993). Indeed, the principles of effective project management can be employed for any industry, ranging from manufacturing projects, to one day music or sport events (Chelsom, Payne and Reavill, 2004). A project is a unique undertaking, defined in time and with a purpose used to identify its completion and success as well as its existence. With clear objectives including time, cost and performance goals, projects consume human, material and financial resources. Groups, departments or companies are joined under one organisation and manager for the duration of the project (Harrison,1992). Comparing the differences between projects and operations is a useful exercise to fully understand the limitations of general managing for projects (Appendix 1): (i) It underlines the flexible environment in which projects operate. (ii) Teams are goal orientated and need to be effective as opposed to efficient in achieving their objectives. (iii) Its uniqueness leads to a substantial amount of risk. (Turner, 1993) As mentioned in the previous paragraph and appendix 1, projects are exceptional and the processes used are not part of a sole departments normal range of activities. These tasks may require a joint effort from multiple entities regardless of departmental routines and projects have specific goals and deadlines. Effective planning and communication between every party involved is mandatory to successfully complete the given objectives. In addition, they operate under the constraints of result, budget and time (Thomsett,1990). The construction of a railway tunnel under the Bosphorous Strait is a typical example of the challenges of an ambitious engineering project (Appendix 2). Shipbuilding is another example which may be used to illustrate how these constraints are interconnected: A contract is written to outline the design specifications (target to achieve), project deadline (time) and overall cost. The scope of the project is best described as the objectives set to accomplish the required specification, on time and within budget. The ultimate goal of a shipyard is to generate profit, and it is therefore crucial for a project manager to focus of these goals. Indeed there will be financial penalties if the final design doesnt comply with the given requirements or if it isnt delivered on time, therefore significantly reducing the profits of a company (Shenoi & Molland,2012). A poorly managed project can also lose in profit as last minute decision in an attempt to meet deadlines will lead to extra spending in the form of over-time or hiring temporary staff and machines. This highlights the need for a carefully thought out plan and good communication within an organisation to implement and monitor the progress made. This also demonstrates how monitoring cash flow is an easy indicator of projects progress and therefore facilitates overall control, as well as providing instant feedback when assessing its success or failure. To accomplish its final result, a project can be split into two stages defining and controlling where the definition phase is used as a starting point for the control phase (as illustrated in Figure 3, appendix 3). Figure 3 clearly demonstrates how the three inherent constraints cited previously time, cost and scope are used to define the project. Once defined, the project will then move on to its second stage described as the controlling phase: A team needs to be carefully selected to accomplish every aspect of the projects scope. It is up to the manager to then coordinate each task for the project to be completed within its time and budget constraint. With each task delegated to a team, the manager needs to monitor the progress of each of them and create a control system to avoid the risk of running the project out of budget or schedule. Actions may be taken in response to changes which

Management 2 MANG3023 C. Dormenval 23825529 may jeopardise the initial plan and re-negotiation of a contract or deadline should take place as soon as possible when judged necessary (Thomsett, 1990). Every project holds uncertainties and zero-risk projects are of no interest. Indeed, from risks come threats as well as opportunities, and an appropriate level of uncertainty is necessary to ensure benefits. A better understanding of the risks involved in a project, will enable companies to anticipate potential difficulties and work with tighter margins. The base plan is a representation of how one would like a given project to happen. It provides a basis for the managers process of preparation, execution and control; where the control phase of a project entails reacting to threats and opportunities as well as revising performance targets if needed (as previously discussed). Risk management is the development of contingency plans around a given base plan, as a response to potential threats or opportunities. It can therefore be regarded as proactive planning as opposed to reactive in times of crisis. Proactive and reactive planning are not alternatives but are complementary to one another and can only be effective once a process of plan, implement, monitor and control has been put into place (Chapman & Ward,1997). In conclusion, successful management goes through a process of plan, implement, monitor and control; systematically referring to a projects scope, budget and deadline to assess its success. However it is wrong to assume that these stages are clearly fixed in time (Peters & Waterman,1995). Research in industry has shown that managers work at an unrelenting pace but are involved in various short activities, characterised by their discontinuity in time. These observations would, at first, appear to be opposed to the management procedure first introduced by Henri Fayol in 1916 (Mintzberg,1975). This method is still being used by project managers but the process is actually simultaneous and discontinuous in time, which highlights the constant changes occuring during a project. A correct representation of the process used by project managers shares more resemblance to figure 4 (Appendix 4).

References
Chapman, C. & Ward, S. (1997) Project Risk Management: Processes, Techniques and Insights. 1st Ed, John Wiley & Sons. Chelsom, J.V., Payne, A.C. & Reavill, L.R.P. (2004) Management for Engineers, Scientists and Technologists. 2nd Ed, Ch. 13, 17 & 19. Wiley and Sons. Harrison, F.L. (1992) Advanced Project Management: A structured Approach. 3rd Ed, 01-24. Gower Mintzberg, H. (1975) The managers Job: Folklore and Fact (The classical view says that the manager organizes, coordinates, plans and controls; the facts suggest otherwise). Harvard Business Review article. Peters, T. & Waterman Jr, R.H. (1995) In Search of Excellence: Lessons from Americas Best-Run Companies. 1st Ed (6 43). HarperCollinsBusiness. Shenoi, R.A. & Molland, A.F. (2012) Ship Design and Economics. University of Southampton, Faculty of engineering and the environment. Stainton, A. (2013) Project Management Considerations: Examples from Bosphorous Straits Tunnel Project. University of Southampton, School of Management. Thomsett, M.C. (1990) The Little Black Book of Project Management. 2nd Ed, 5-23 & 137-151. AMACOM (American Management Association) Turner, R.J. (1993) The Handbook of Project-based Management: Improving the processes for achieving strategic objectives. 1st Ed, 4-33 & 78-97 The McGraw-Hill Companies

Management 2 MANG3023 C. Dormenval 23825529

Appendix 1:
Projects
Unique Finite Revolutionary change Disequilibrium Unbalanced Objectives Transient Resources Flexibility Effectiveness Goals Risk and uncertainty

Operations
Repetitive Eternal Evolutionary change Equilibrium Balanced objectives Stable Resources Stability Efficiency Roles Experience

Table 1: Project vs. Operations (Turner, 1993) Purpose of a project: A project is undertaken to deliver a product with a purpose or benefit. This could be: - Humanitarian (e.g. providing relief from a disaster) - Social (e.g. to provide enjoyment and entertainment) - Business (e.g. increasing profits, efficiency, turnover or employment) Projects take place when a product cannot be delivered from a current situation, and where the expected benefits after completion are greater than the risks. A projects success is often measured by observing whether it was completed on time, within budget and required standard. But what is considered to be most important is whether the project achieved its purpose and if a beneficial change was observed (as this was the only reason of its creation). However the change made from a project may only be beneficial at a given time and cost. Therefore the constraints of a project will still impact the final assessment (Turner, 1993).

Figure 1: Illustration of the connections between time, quality, cost and scope around an organisation (Turner, 1993)

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Appendix 2

Element of Scope

Budget set by rail contractor and government subsidies: Overall estimate Cost The Objective being

Build and install four tunnel sections per year

Figure 2: Project management considerations from the Bosphorous Strait Tunnel Project (Stainton, 2013) Applied within the project constraints diagram (Thomsett, 1990) The result is the ultimate goal of a project and is one of the criteria to assess a projects success. However a manager needs to include a wider range of elements incorporated in the projects Scope in order to achieve these goals: The scope of a project will therefore be its objectives the construction of an underwater rail tunnel which would reduce traffic on the Bosphorous Strait and provide easier connections between Asia and Europe but will also include the Knowledge necessary to meet these objectives, the build process of the tunnel in the scopes Tasks and task sequence, the Sourcing of equipment and materials and its Risk management policy. The project is also restricted to time and cost constraints, and a careful balance between time, cost and scope must take place for the project to finally reach its purpose.

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Appendix 3:
Reasons Expectations eventual problems and solutions

A project should be broken down into short term steps and goals What is the total cost of the project? To be broken down for each task

Project should be planned to be completed on time Task allocations to team can only be done once the project scope has been defined! Efforts of each team to be put together Spot emerging problems and correct them

Control emerging crisis by taking action: rescheduling or negotiating budgets

Figure 3: Defining and controlling the project (Thomsett, 1990)

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Appendix 4:

Figure 4: Repeating the processes at each stage (Turner, 1993) This diagram illustrates how each stage of the process is repeated within each stage of the project itself.