Project Management

Process

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Table of Contents
1. Introduction....................................................................................................... 2
2. Introduction to Project Management..................................................................2
3. Project Management Process.............................................................................3
3.1 Project Definition.......................................................................................... 3
3.1.1 Setting Objectives.................................................................................. 3
3.1.2 Project Scope.......................................................................................... 3
3.1.3 Project Stakeholders............................................................................... 4
3.1.4 Project Team........................................................................................... 5
3.2 Project Planning............................................................................................ 6
3.2.1 Project Tasks........................................................................................... 6
3.2.2 Project Scheduling..................................................................................7
3.2.3 Project Resources................................................................................... 8
3.2.4 Project Budget........................................................................................ 8
3.2.5 Project Risk Management.......................................................................9
3.2.6 Risk Matrix of Yorkshire House Food.....................................................11
3.2.7 Project Communication Plan.................................................................12
3.3 Project Execution........................................................................................ 13
3.3.1 Project Implementation and Controlling...............................................13
3.3.2 Project Monitoring................................................................................ 14
3.4 Project Closure............................................................................................ 15
4. Conclusion....................................................................................................... 16
References........................................................................................................... 17
Appendix A.......................................................................................................... 20

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1. Introduction
Yorkshire House Foods (YHF) is currently looking to intensify its production capabilities by
constructing a new plant and overhauling existing one. Also, the company wants to bring
improvement in its existing services for the intention to move to the wholesale market. For
this purpose, a number of decisions have been made by the authorities and some new people
are hired at top positions in some key departments such as HR and production departments.
This meaningful report illustrates how the project manager of YHF will manage future
projects by following the project management process of defining, scoping, executing, and
finally closing the project.

2. Introduction to Project Management

Projects can be small or large depending on their nature. Each project is unique on the basis
of their objectives, lifecycle, resources, optimality, and risk and uncertainty (Newell and
Grachina, 2003). Many different definitions for project management exist in the literature but
all have some similar elements in common. In reality, project management is a specialised
branch of management which can be defined as the achievement of project objectives
through people and involving the organisation, planning and control of resources assigned to
the project (Harrison and Lock, 2004, p. 6). Thus, project management can be considered as
a link between all processes of a particular project. The role of a project manager is to use
project management as a tool to achieve project as well as organisational long-term goals and
short-term objectives.
Traditionally, project management framework includes several elements or processes. These
processes are based on adopted method/approach to project management to manage the
projects. Three widely used project management methods for managing project are:
Traditional method, Projects in Controlled Environment (PRINCE2), and Project
Management Body of Knowledge (PMBOK). These methods differ from each other on the
basis of their approaches and processes to accomplish the project but they are common in
their ultimate goal which is to complete the project successfully (Greer, 2003). In this report,
PMBOK framework is employed to see how Yorkshire House Foods (YHF) can manage its
existing and prospective projects by taking into account a number of tools and risk analysis.
Figure A1 in appendix A shows a typical project management procedure of how projects are
being project-managed.
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3. Project Management Process

3.1 Project Definition
Project definition is a primary process for initiating the project. In defining the projects, YHF
can address the objectives and underlying problems through the following process. Project
definition phase is comprised of following process:

3.1.1 Setting Objectives

SMART framework is often used to set underlying objectives for the projects. Also, it is used
to define Key Performance Indicators (KPI) for the project and organisation. The term is first
used by Doran (1981) to resolve management issues for his company. Table 1.1 illustrates the
typical values and meanings of SMART framework.
Table 1.1 SMART framework

Specific

Setting specific needs and desires to be achieved

Measurable

Measure the success using various tools

Attainable

Setting attainable goals

Relevant

Setting relevant goals with available resources

Timely

Timely achieving the targets

Source: Meyer (2003)

Yorkshire House Foods can use SMART framework for project goal-setting purpose in order
to address the key problems that the company is currently facing (Jensen et al., 2007) such as
lack of documented processes, poor planning, managing risks, inconsistency of products,
poor communication, and inadequate employee skills.
3.1.2 Project Scope

Defining project scope means to obtain necessary information required to initiate the project
in order to meet project stakeholders requirements (PMI, 2008). YHF can use project
management triangle to obtain primary information about the projects cost, time, and quality.
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The project management triangle is often employed to demonstrate the ability of project
management team to organise projects resources, essentially cost and time, for the purpose to
achieve desired quality (ibid). Figure 1.1 depicts triangle constraints that YHF can manage to
achieve customer satisfaction by delivering optimal quality of food products.
In addition, in defining the projects scope it

Figure 1.1 Project management triangle

is also essential to identify and evaluate

related projects using various tools and
analysis. YHF can evaluate different related
projects using two widely used methods i.e.
Net Present Value (NPV) and Internal Rate of
Return (IRR) because both these methods are
mainly based on the cash flows of the project
(Crundell, 2008). The set of information that
a company requires to evaluate the project

Source: Newell and Grashina (2003, p. 9)

using NPV is the initial

project investment, expected revenue, and discounted interest rate. Similarly, evaluating
projects using IRR requires required return on project, uncertainty component, and inflation
component. Additionally, YHF can use sensitivity analysis to investigate the project return if
one or more variable changes (ibid).
3.1.3 Project Stakeholders

According to the Project Management Body of Knowledge, a project stakeholder can be an

individual or organisation that is: (1) keenly engages with project activities; (2) whose
concern can be negatively or positively influenced either from the outputs of projects or by
carrying out project activities; (3) who may affect the projects activities or its deliverables
(PMI, 2010).
According to Heldman (2005), the projects key stakeholders are project sponsor, project
manager, and project team. The project manager holds the responsibility for the successful
completion of the project on time whereas project sponsor is a person or organisation who is
involved in funding the project. On the other hand, the project team may comprise of several
people who are actively involved in managing the project. The key stakeholders of YHF are
identified in the figure 1.2.
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Figure 1.2 Key stakeholders of YHF

Organisations sometimes ignore some stakeholders that can significantly contribute to the
project success. The YHF can apply DRUGS test to identify such stakeholders for any
specific project. The DRUGS framework is depicted in figure 1.3.
Figure 1.3 Identifying key stakeholders

3.1.4 Project Team

The client YHF wishes to improve its quality of the products and also to bring improvement
in its customer service operations. In order to achieve these goals, it is inherent for the
company to develop effective team with excellent management, planning and control, and
skills and capabilities. For this purpose, YHF can employ Belbins nine team roles theory that
can help the organisation to identify behavioural strengths and weaknesses of the employees
at work (Belbin, 2012). The nine team roles of Belbin are illustrated in figure 2A in appendix

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A, which is sub-divided into three major categories such as action-oriented, people-oriented,

and though-oriented.
Belbin (2012) asserts that it is not necessary that all nine team roles must be present in a team
all the times. In fact, it depends on the nature of the project and its underlying objectives
because each project is unique and sometimes one team member can have more than one role.
However, Belbin recommends at least six people sharing nine roles (ibid). In table 1.2, Belbin
team roles theory is applied to YHF case study where it is evident that the project manager is
the key person having multiple roles and responsibilities to successfully complete the project
on time.
Table 1.2 Belbin team roles of YHF project
YHF Team

Belbin Roles

Managing Director

John Jones

Plant / Shaper

Project Manager

Aymen Omran

Coordinator / Monitor / Completer

HR Manager

Janet Jackson

Resource Investigator

Production Manager

Gary Gowrie

Implementer

Support University

Shaper

3.2 Project Planning

Project planning refers how and when a project's objectives are to be achieved, by showing
the major products, milestones, activities and resources required on the project (Sachs, 2011,
p. 170). Project planning phase consists of following process:

3.2.1 Project Tasks

From the past few decades, a number of tools and methods have been developed and
identified to organise project tasks. The project manager and management team usually use
these tools for task identification, task sequencing, time allocation, and resource allocation. In
task allocation, tasks are allocated to employees according to their skills, knowledge,
experience, and time availability. From a range of available tools and techniques, the project
manager of YHF can use Work Breakdown Structure (WBS) for task management as it lists
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all interrelated project tasks and deliverables required by the project (Kliem and Ludin,
1998).
The activities or tasks in WBS can be listed in top-down sequence which supports project
manager and team to distribute project tasks into different levels where each sub-level
describes more detailed information on specific task. Figure 3A in appendix A illustrates an
example of a WBS consisting of six sub-levels where first four levels supply inherent
information on project planning, scheduling, monitoring, and management tasks and last two
levels provide more detail information and processes. In employing WBS for task
management, the client (YHF) must know that WBS is useful in showing particular tasks at
different levels. However, it sometimes fails to include other interconnected tasks such as
project procurement, administration, and implementation (ibid).
3.2.2 Project Scheduling

The projects can be scheduled effectively by building main structures, developing resource
list, and adding finishing touches as shown in figure 1.4.
Figure 1.4 Project scheduling

The project manager in YHF can schedule project activities using Gantt chart as it is a
popular planning tool for representing task starting and ending times up in a row. The Gantt
chart can be developed using several programs such as MS Project and MS Excel and can be
updated accordingly as the project progresses (Greer, 2003). However, in developing the
Gantt chart, the project manager of YHF must keep in mind its underlying limitations such as
lack of demonstrating clear dependencies between tasks (Aguilar and Ruth, 2004) and lack of
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communication medium during project execution phase (Mawdesley et al, 1997). The Gantt
chart for YHF project is developed and shown in Section III.
3.2.3 Project Resources

Resource availability, optimisation, and scheduling are important to complete projects

successfully because the unavailability of any resource can be a problematic issue for YHF.
Therefore, after managing tasks, it is important for YHF to manage project resources
essentially human resources, physical resources, and technical resources (Biafore and Stover,
2012). Carayannis et al (2005) emphasises the importance of managing 5Ms of resources
which include Money, Materials, Methods, Manpower, and Machinery. In fact, managing
resources and giving priority to each resource is a difficult decision. For this purpose, the
client (YHF) can use Critical Path Method (CPM) to set and allocate project resources
(Biafore and Stover, 2012).
The company can use CPM to develop the projects framework for the following purposes:
(1) Organising tasks required to accomplish the project by categorising activities using WBS;
(2) Assessment, evaluation, and allocation of most constrained resources; (3) Adding resource
flags and time buffers (ibid). Developing CPM, the client (YHF) can calculate the longest
path of intended tasks until the project ends. In addition, the resources can be arranged
quickly to avoid delays.
3.2.4 Project Budget

In making a budget plan for the project, the project manager of YHF can estimate how the
company will perform financially during the project. In addition, the manager will decide
projects funding and project costs including labour costs, material cost, overhead costs,
contingency costs, contract costs, and wages. The manager will also decide on which
budgeting technique he will use for preparing project plan. In this regard, four budgeting
techniques such as analogous technique, top-down method, bottom-down method, or
parametric-estimate method can be considered (Florin, 2011).
In the given scenario, it is useful for YHF to prepare budget using either analogous technique
or parametric estimate. In using the analogous technique, the manager can consider the actual
costs of the former project to estimate the costs of the present project. However, this
technique is only feasible if both projects are common in nature. On the other hand, while
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making budget using a parametric-estimate, the project manager will estimate costs using
cost accounting information such as cost allocation methods or process costing tools that
contains each products cost.
The top-down budgeting technique can be employed if there is a need to estimate the costs
for each project process. In the opinion of Taylor (2007), the top-down technique is not
suitable for food industry as the project manager requires to investigate each project activity
more closely when estimating costs. In contrast to top-down method, the bottom-up technique
takes into account the costs of project inputs such as project resources in order to estimate the
total project budget. This method is useful when the costs of inputs are fixed. Thus, this
method cannot be employed by the YHF.
3.2.5 Project Risk Management

The project risk management have three stages:

Risk identification
Risk assessment
Risk response
3.2.5.1 Risk Identification

The process of risk management starts with identifying various risks associated with the
project. In the food industry, risks occur from several sources such as health and safety
compliance, chemical risks, fire and explosion hazards, microbiological risks, and cleaning
hazardous material like bleach and lubricant (Potter and Hotchkiss, 1998; Brown and
Stringer, 2002; Lelieveld, 2003). Furthermore, some severe health risks of processed foods
are identified by SixWise.com which includes: obesity, diabetes, cancer, and other unknown
effects.
Turner (1999) believes that risks must be identified at the early stages of the project.
However, different opinion came from Chapman (2001) who emphasized the identification of
risks by applying risk management processes during the execution phase. This means that
risk identification is an ongoing process that ends with the accomplishment of the project.
Therefore, the project manager of YHF must identify risks at early stages of the project by
following six necessary steps such as realising the presence of uncertainty, developing initial
checklist, identifying risk emerging circumstances, risk mapping, logical risk classification
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scheme, and summary sheet for risk classification (Bartlett, 2004). The list of risk
identification tools recommended by a number of researchers is available in table 1.3 that
client (YHF) can use to identify risks.
Figure 1.3 Risk identification and assessment tools

3.2.5.2 Risk assessment

The identifying possible risks, the client (YHF) can analyse and evaluate each risks chances
of occurrence and its influence on the project as a whole. This assessment can be qualitative
or quantitative (Burtonshaw-Gunn, 2009). The risks can be analysed or evaluated
qualitatively by giving priority to each risk on the basis of its possibility of occurrence its and
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influence on the project. On the contrary, quantitative risk analysis can be conducted
throughout the lifecycle of the project. The possible risk assessment tools suggested by
various researchers are included in table 1.3 that client (YHF) can use to analyse and evaluate
risks.
3.2.5.3 Risk response

Once the possible risks are identified and analysed, then the next step is to adopt an
appropriate approach to mitigate the impact of risks. This process is called risk response. The
client (YHF) can adopt different risk response strategies recommended by several
researchers. These strategies are: risk response, risk acceptance, risk transfer, and risk
mitigation (Chapman, 2001; PMI, 2010). Risk response strategy refers to the modifications in
the project plans so that risks can become unrelated. However, risks can be accepted if they
emerge due to natural disasters or unforeseen events. On the other side, risk transfer indicates
the strategy of transferring the risk impact to other party i.e. insurance company whereas risk
mitigation strategy can be adopted to minimise the influence or chances of occurrence of
common risks.
3.2.6 Risk Matrix of Yorkshire House Food

The project manager of Yorkshire House Food can take into account risk probability matrix to
identify and analyse the risks. A sample risk matrix is shown in figure A4 in appendix A.
Moreover, table 1.4 illustrates the summary of identified risks and their importance for YHF
along with the managers who will undertake each risk.
Table 1.4 Risk log of YHF
Risk

Prob.

Impact

Manager

Activity

Limited time availability

i.e. 20 months

High

High

Gary
Gowrie

Improving manufacturing process

through process reorganisation
Business process modelling
Process re-engineering

Project schedule delay

High

Medium

Gary
Gowrie

Project decisions for additional

resources

Lack of human resource

activities and resistance to
change in organisation
culture/structure

Mediu
m

High

Janet
Jackson

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3.2.7 Project Communication Plan

Project communication is very important for corresponding with all stakeholders. The figure
5A in appendix A shows how communication surrounds different activities. The typical
project communication plan of YHF should involve all stakeholders. Table 1.5 demonstrates a
proposed project communication plan of YHF.
Table 1.5 Project communication plan of YHF

What
Initial meeting

Who
All stakeholders

Purpose
Information collection for project

When
December 12

Project initiation

John Jones

Increasing the manufacturing

capacity of meat products

04 Feb 2013

Project planning

Project Manager

Successfully accomplishing the

project

01 January 13

Risk management

Project Manager

Risk identification and assessment

Throughout
the project

Reporting /
Coordination

Project Manager

Keeping stakeholders informed

regarding the projects progress

Throughout
the project

Team meetings

All stakeholders

To re-examining and re-evaluate

entire projects plans and activities

Throughout
the project

Production
matters

Gary Gowrie

Improving manufacturing process

process modelling, production
planning decisions, controlling and
monitoring production activities

February 13
to
December 13

Resources
management

Janet Jackson

Change management, developing

management competencies and
skills, recruitment and selection,
training and assessment

November 13
to
April 14

Post project
review

John Jones

To ensure project actual results are

matched with desired results
Source: created by author (2012)

3.3 Project Execution

Project execution is the third phase of the PMBOK project management process where the
tools and plans that were developed in the prior phases (project definition and planning) are
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practically put into practice (Jeffery et al., 2010, p. 75). Project execution phase consists of
following process:

3.3.1 Project Implementation and Controlling

The project manager of YHF can implement plans developed in previous phases using
following triple constraint (Greer, 2003; Levin, 2012).

Project cost management

Project scope management
Project time management

For the purpose to develop effective control over the project costs and activities, YHF project
manager needs to ensure that the actual costs of activities are allied or close to the planned
project costs. This can be ensured by continuously scrutinizing the graphs of accumulated
costs. An example of such a graph is illustrated in figure 1.6 where planned (baseline), actual
costs, and value completed are compared with each other.
Figure 1.6 Cost comparison graph

In the implementation phase, the project manager of YHF can control the entire activities of
the project by ensuring that activities or tasks mentioned in WBS are correctly and timely
accomplished (Greer, 2003). Figure 1.5 clearly illustrates the way how the clients project

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manager can manage and control the projects scope and time using WBS to confirm that
actual results are allied with required results.
Figure 1.5 Project implementation and controlling

3.3.2 Project Monitoring

The project manager of client (YHF) can collect, record, and report primary information to
monitor projects performance and then pass this information to stakeholders. According to
Taylor (2007), project manager needs to monitor inputs and outputs of the projects where
input are time, cost, quality, and 5Ms of resources i.e. Money, Materials, Methods,
Manpower, and Machinery whereas the outputs are project actual cost, progress, job start and
completion times, and design changes. It is best practice for the clients project manager to
use the Milestone Trend Analysis (MTA) technique for monitoring purpose. The MTA
technique points out the projects present status in terms of its scope (Levin, 2012). An
example of MTA is stated in figure 1.7.

Figure 1.7 Milestone Trend Analysis technique

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3.4 Project Closure

Project closure is the last stage in the project management process where the clients project
manager will ensure that the checklist in table 1.5 is completed. If the checklist is completed
then the project will be terminated or otherwise some incomplete tasks will be reassigned to
the specialised project team.
Table 1.6 - Checklist

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4. Conclusion
It is concluded from the above discussion that the client YHF can manage projects by
following a project management process framework proposed by PMBOK (PMI, 2010). This
framework mainly comprised of four stages: project definition, project scope, project
execution, and project closure. The project manager of YHF can employ a number of tools
and methods at different stages to effectively manage the projects including an analysis of
project risks.

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Appendix A
Figure A1 Project management procedure

Source: PMI (2010)

Figure A2 Nine team roles

Source: Belbin (2012)

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Figure A3 Multi-levelled Work Breakdown Structure

Source: Haugan (2008)

Figure A4 Probability risk matrix

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Figure A5 Project communication

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