Managing Complex Projects - Assignment Example

Title: Complex project management planning and implementation Student’s Name: Instructor’s Name: Course Name and Code: University: Date of Submission: Complex Project Management Planning and Implementation Background While investments are for the main purpose of generating profit to an individual or a conglomerate, various factors from within and outside the operational basis of a project must be considered. While there are many investment projects developed daily most of the end up with unfulfilled targets. Complex projects are different from the ordinary complex as they require more attention than the later. This means that a thorough analysis is done before settling for a given complex project. Complex project is also different in that incase of losses; the losses incurred are usually of a greater magnitude than the ordinary projects. The process of Project management involves putting into consideration factors that include; the input, the process itself, the output and even the external attachments. All this factors are considered in line with the objectives of the project. The viability of the complex project will depend on these factors. A project will only be viable if the output is higher than the input. This demands for through analysis and estimation of the costs of imp0lewmentaion before embarking on the project. Investment projects will involve processes which are; Project initiation stage In project initiation stage, deliberations are made on how the projects will be set out. This involves the clear definition of the roles that the stake holders and the project team are to play in the project. This phase is an inclusive one that needs assembling of views before getting down on the project. Complex projects usually contributions from all stakeholders at such a stage. This enables the stakeholders to have the wide abstract framework so that they may be able to follow up the project effectively during implementation (Salaman 2005, p. 56-59). Objective analysis Once the definition of the role of the various players is done, the overall aim of the project is reviewed. This review is done by trying to figure out the prospects of the project by using analytic criteria such as the SWOT analysis. This would help in weighing between the negatives and the positive projections. If the positive projection has more bearing, then the project goes to the next step that is planning. Scope of the project The scope of the project should be well laid down. This will prevent the unnecessary deviations during implementation as to what is supposed to be done and what is not. It also helps in guiding the managers on logic decision-making so as to ensure their decisions go in line with project’s objective. At this level sub-projects can be created and their course defined. Development of the initial plan After the definition, of the scope of the project it comes to a time where planning has to be done. The initiation plan involves organizing the team in charge of the project into diagrams and charts considering the duration factor. This would be important for the manager to follow up and, know if the project is up to the time limit given or its time barred. It also assists the manager in projection of the time the project will be done. Resource reallocation At this stage, the manager might consider reallocation of resources based on the costs and the challenges that lie ahead. The manager might decide to pump in more resources to the project team staff that he may be able to ascertain that they need more. For cases where the challenges are beyond the capacity of the project team, Risk Management may be used. Phase-exit review This is the stage where the project is reviewed based on the performance of the project and in line with the project's purpose. At this stage, contributions from all stakeholders are considered in order to make necessary changes that will ensure smooth running of the project to completion. This will ensure that the project is ready to be taken to the next phase. Any problems that are detected at this stage are solved using the cause Analysis strategy (Pollack-Johnson & Liberatore 2005, p. 15-26). Progress follow-up Progress follow-up is done. This is mainly based on time and level of project. It at this stage, the manager is able to determine if the project is complete or not. This is done through revisiting the objectives of the complex project. Once the objectives are in line with whatever has been achieved, then the project is said to be a success (Pynes 2008, p. 67-73). Close the project Once the objectives and the purpose of the project have been realized the manager will close the project. This involves putting down the achievements of the project on paper or print so that they can be used later for reference. Such print outs must contain recommendations otherwise called post implementation review. Complex projects require that procedures are followed and adhered to the later (Rozenes, Vitner & Spraggett 2006, p. 5-14). Reasons for project assessment Sometimes a project may seem to be viable yet there could be very many factors that render it not viable. Such factors could be, for example, negative side effects of the projects, for example, to the environment. A project could for example seem viable but may need the expertise that may not be readily available for the project. Without a project analysis, underestimation of resources may occur hence grounding the operations of the project at a later stage. As such Project analysis is important (Denker, Steward & Browning 2001, 31-38). Information system integration and competitive strategies The health care industry has undergone a great revolution as concerns acquisition of ICTs and our organization is no exemption. This is in line with our duty to provide faster and efficient health services to our customers. Given the technological advancement and the need to adjust to the ever changing environment our Information systems would require constant review so as to maximize the efficiency. As we think of acquiring an information system for the organization, various factors need to be taken into consideration (Miller, Hobday, Leroux-Demers & Olleros 1995, p. 363-400). As organizations are strategically getting the competitive edge through the use of information technology, an information system if well planned will lead to increased levels of efficiency and do away with would be avoidable losses. However, the poor design and selection of information systems has resulted in failures hence the need for careful handling of this process. Being a medical oriented firm dictates that the information system to be adopted should be one that works well for the staff and clients who happen to be the sick. Identification, Planning and Justification of Information Systems in A Chain Store Being an essential step in the process of setting up the organizations information system, the main objective of providing fast and efficient health services must be put into consideration. The management of this institution has a front role to play in defining the various processes that are part and parcel of the organization. The objectives of the company should be aligned with the general processes of the organization for the organization to enjoy the enablement of the new system. The system should be designed in a manner to reduce the dependence on the manual dealings (Dvir, Raz & Shenhar 2003, P. 89-95). Often has been the difficulty in the description of system requirements. These requirements are actually the ones that make up or point to the systems objectives. This requirements help in bringing out the system input, the materials to be processed and the expected output. Specifications on the requirements are very necessary to avoid deficits during the implementation. There are various ways in which the system requirements can be obtained. For our organization interviews can be done or even questionnaires can be made to help gather this information. Auditing of the firms records should be done fully to ascertain the capability of financing the running of the alternatives made available. This will greatly help avoid teething problems that usually arise from underestimations. This has been the cause of many system failures in organizations. Information System Architecture Restructuring Since our institution is still in the process of acquiring Information Systems, its Information System architecture should be remodeled. The information system should always ensure that it respects the structures of our organization by observing hierarchy, protocols and functionality. This calls for strategic planning so that the system developed is able to work well for the organization. When strategies planning are done over information systems definitely, the result would be an Information System that goes line in line with the general operations and routine of our organization (Van Marrewijk, Clegg, Pitsis & Veenswijk 2008, p. 591-600). Identification of a Development Alternative There are various options available for the procurement of the software solutions. For our organization, the development of an in house system could be the better option as compared to other options like leasing software from ASP. This is due to the nature of our organization and its operation plans. The in the servicing of the current employees would be an expensive affair for the leased software option (Hobday, Rush & Tidd 2000, p. 793-804). Feasibility Analysis This entails trying to look at the aspects that deal with the running of the system in relation to expectation. Feasibility study will involve looking at areas that are economics, technical, operational, legal and political. Carrying out feasibility without including any of these methods is likely to result in poor choice of information system (Zajda 2005, p. 78-91). In feasibility analysis on the economy, a system will only be accepted to be good to work with if, at the end of the day, it will save the organization funds. Technical feasibility entails assessment of the capacity of the company in handling the necessary system. Operational feasibility entails the caused to be incurred in running the system. The proposed information system must be able to meet the set legal requirements to avoid the unnecessary tussles with the authorities. While trying to come up with a new information system in the organization, the political system must also be =put in to account. One must ask themselves what they stand to experience when a new political system comes into power (Van Marrewijk, Clegg, Pitsis & Veenswijk 2008, p. 591-600). After the feasibility study, the risks must also be analyzed to ascertain the dangers and the threats that the organization faces both from within and from the external environment. Such analysis is important as it enables the policymakers who happen to be the managers to be able to know how to approach various challenges as they come (Flyvbjerg, Bruzelius & Rothengatter 2003, p. 39-53). The company may also be formed to get into the performance of ergonomic requirements in a bid to ensure we as employees have a good working environment. The Selection Procedure The selection procedure involves the mode used in identifying the best available match of software providers. This can be done trough bidding, tendering or calling for Expression of interest (Davies & Hobday 2005, p. 81-94). This means that identifying software providers has to put in mind both the negative and the positive aspects of the provisions of the providers. Proposal Evaluation Process Once various proposals have been handed in, they are evaluated. The evaluation is supposed to be objectively done using a list that has objective a list of the required conditions which are matched against the proposals (Globerson & Zwikael 2002, p. 58-64). Evaluation of the proposal should put into consideration the operation costs and the skills needed for that project. Selection of an information system is a complex process that can make or break an organization. All necessary steps must be followed to the later to avoid system failure especially during implementation. Due to the nature of the medical field a good information system is necessary to facilitate proper handling of emergencies. Humans are a species that are to be handled with all care and respect if it will add up to saving a life. A good information system will always ensure protection of the institution from fraudulent activities and the easy storage and retrieval of information. The information system must at the end of the day facilitate reduction in the operational costs (Anderson 1972, p. 120-127). Risk analysis and formulation of policy in project management Risk analysis is identifying and evaluating any possible vulnerabilities, perils or threats and getting solutions of how to subdue them. This analysis can both be qualitative or quantitative. Qualitative method being more popular, is describing the negative eventualities, evaluating how risky they are and coming up with solutions, in case a perilous event takes place. Quantitative analysis uses numerals to evaluate the likelihood of risks and how much damage they would cause in case any of them happened. Risk analysis should assist to come up with the best security measures that will fully subdue the risks speculated. It is also supposed to direct one in coming up with the most appropriate budget on security which will give the best yields (Van Marrewijk, Clegg, Pitsis & Veenswijk 2008, p. 591-600). The security problems faced in this corporation are intrusion of the corporation’s valuable data and some customers’ credit card details were accessed illegally. Some employees have also stolen personnel data because it had not been fully protected. Other probable risks are virus, spam or hackers’ attacks. This is an indication that the company’s software is unprotected and can even crush down unannounced, should there be an occurrence of a peril which it cannot prevent. However, the security of the hardware system was reported intact. The digital surveillance equipment and security personnel have made sure that no hardware parts of information, communication and technology department are evacuated from the building without verification (Miller, Hobday, Leroux-Demers & Olleros 1995, p. 363-400). Breach to information security will obviously call for revision of security measures to fill in the loophole made. The first step that should be taken is to fire the employees involved in stealing personnel information as well as prosecuting them. If they have not been identified, computer forensics can be brought in to start an investigation. This action will discourage other employees from intruding private information without authorization. All employees should be educated about the Act of protecting private data and made aware of penalties that accompany it if they violate the law (Flyvbjerg 2006, p. 5-15). The software system should be installed with programs that give restriction to access of information. This will mostly be applicable to cases where personnel data is been stolen and remote hackers who are compromising confidential details of credit cards. Introduction of levels of accessing classified information should be done (Kerzner 2006, 98-112). All computers and servers should have passwords and methods of encrypting private information to lock out unauthorized access. This would also prevent some employees from framing others by using their computers to do something illegal (Gann & Salter 2000, p. 955-972). Security breach is a major threat that would bring down a corporation because it would lose clients. Therefore, it is important to reduce the risks and have countermeasure of implementing in case there is an adverse event which has occurred. Those employees or outsiders, who are caught with crimes of compromising confidential information of the company, should be prosecuted to be an example to other potential hackers. Project structural design – Chain Management, Wal-Mart Case Study An organizational structure is a format within which an institution or a business entity devises and executes its day to day operations. It can be described as process of coordinating the human resource, communication and technology as well as other resources within a given organization. For an organization to come up with a structure, it has to make use of a well thought out design. A design must support any type of organization to reach the goals it is aiming to achieve. Normally, the staff discusses the needs of the organization and then come up with a criterion to meet the needs. Good designs accompanied with deliberate workforce effort are essential to realizing an effective organizational structure (Burton, DeSanctis & Obel 2006). A good organizational design enables an organization to put in place a good structure. To demonstrate this, we use the example of Wal-Mart Stores. Wal-Mart is a corporation which owns several department stores and warehouses which all deal in different specialties and are situated in different geographic locations. For instance, the headquarters is located in Arkansas. Some of the stores include Wal-Mart Reality, Wal-Mart International, Wal-Mart Specialty, Sam Stores and Super Stores. Wal-Mart is also the biggest grocers. Wal-Mart is well established in the United States and spans all the 50 states. Other countries are Mexico, Puerto Rico, United Kingdom and Japan (Khodakarami, Fenton & Neil 2007, p. 39-49). Such big chain of stores can only be possible to manage when there is a proper structure to steer the chain. The organizational structure used in Wal-Mart has a divisional formation. It comprises of divisions which are separate. In one division, there are different units which operate independently to achieve their set objectives. Every division has an overseer who coordinates activities and is answerable to the senior management as well as the board. Overseers, therefore, have to put in the effort to ensure success of the divisions they are in charge of (Middleton 1967, p. 73-82). This division is helpful as it helps avoid negative outcomes of any division from spilling to the other. The divisional structure has been of immense aid to the corporation in terms of managing its performance. Due to the different location of the departments, the structure has met the needs of the corporation, through establishing separate managers for each unit. When every manager embraces this policy, all the departments will perform well and with synergy. The managers are, operationally, the one who are driving their units to achieve success. One of the key targets of the corporations is to maximize profits. Through the help of the divisional structure, the revenue of the stores has significantly increased over the years. For example in 2009, the grocery department alone had raised US$258 billion (Acha, Davies, Hobday & Salter 2004, p. 505-529). Recently, Wal-Mart had been sued by some employees who had not been compensated for working extra hours. This matter was forwarded to the human resource division and the compensation was immediately paid out. This is a good illustration which demonstrates that the structure being used is able to solve problems and meet the needs of the corporation. The structure should have provisions on if something unusual happens, they can be solved amicably to ensure both the employer and the employees are not discriminated against. It might have been taken to be an unethical issue by the society but, such mistakes occur in big organizations but they are solvable at the point of detection (Crawford & Pollack 2007, p. 87-96). A project cannot be successful if it does not have an effective organizational design and structure. The design of the project will affect virtually everything. This includes the operational costs and the working environment of the employees. Without these two, it is not possible to effectively run operations of an organization. The structure entails having good policies, rules, chain of command, principles and other factors which are considered when coming up with a good design. If all these determinants are not coordinated then the staff of an organization will lack cooperation and the organization will definitely not achieve its intended goals as well as its needs. Such failures reflect poor management skills. Organizations should design their appropriately structures so as to take care of every need that is already present or may arise (Galbraith 1971, p. 29-40). Major Functional Responsibilities of Project Management in Complex Projects Communication aspect and Best Practice Project Management The communication aspect in the practice of management is such a significant factor that can either work for or against effectiveness in management. In many businesses, communication is handled in terms of aspects such as the content of communication; this can be the discussion points, factual information, formal notices that is sent to different departments and individuals. The content of information and how it is handled may affect management; for if vital content is lost or leaked out that can be costly to the organization. The form of communication is another factor; organizations often will use memos, reports and bulletins. The management should ensure that relevant form of communication form is used in each occasion to enhance its effectiveness. The other key aspect of communication in an organization is the media of communication; this may include face-to-face, written reports, emails, fax, and audio visual among others. The media used should have some relevance to the content and the purpose of communication. Management’s acquaintance with the skills of communication such as report writing, chairing meetings, interviewing and telephone selling play a big role in effectiveness in management. This is because; inadequacy in communication skills by management may cause the business to lose out on potential customers and market segments. Lack or inadequacy of these skills may too lead to reputational challenges for the organization in the event that the communication between the organization and the external environment is not properly managed. Finally, the organization of communication in the organization is crucial, it can be through normal channels, committees’ structures, authority levels, and communication procedures (Davilla 35). In a real situation, the communication aspect that affects effectiveness in management is the flexibility and rigidity of the flow of communication. The network of communication in many organizations consists of, a vertical line of communication that has provision for upward or down ward means of transmitting information, with a few integrating mechanisms, such as committees which are built across these lines. Other organizations have lateral lines of communication, which are considered to have same importance as the vertical line of communication. Vertical communication line is often applied in many organizations. This occurs in a manner that management communicates its policies, plans, instructions and information downwards; and employees communicate their ideas, suggestions, comments and complaints to management upwards. The downward communication is achieved by the chains of management established as the upward communication is achieved by joint consultation, work group meetings and grievance management procedures. On the other side, the lateral communication is applied often in organic organizations, where the organization tends to use lateral flow of information between people of same specialties. If management has well outlined way of communication of ideas and information, this will foster good interaction between management and employees which is likely to translate to output. The organization should also put provisions for responding to the barriers of communication. The common barriers to communication in an organization may include individual bias and selectivity, status differences, fear and other emotional overtones, lack of trust between individuals or between management and employees, and at times verbal difficulties. TYPICAL PROJECT PLAN CONTENT 1. Project’s scope and Background description 2. Statement on the scope of Work 3. Technical Standards - Environmental - quality considerations & safety - Criteria of Performance - Evaluation studies - Approach of the Design - Technical specifications - Layout and the location 4. Schedule and cost considerations 5. Contracting policy and Procurement 6. The construction approach 7. Requirements for operation and maintenance 8. Commissioning and certification requirements 9. Project organization - Charts of organization - Authority and Responsibilities 10. Guidelines on Project Management - Approach - Accounting/financial - Manual on Project Procedure- Documentation control - Planning & progress monitoring -Personnel and administration - Monitoring and Project Budget - Project reporting - Design and Engineering - Interfaces of Trade Unions - Procurement & contracts - Publicity - Control of Material- Training - Construction - Safety - Quality assurance/Quality control – Auditing of Project - Certification 11. Project team facilities 12. Computer support facilities 13. Government and regulatory agency applicable codes 14. Standards & procedures of the Applicable owner Cost Control and Accounting Control costs are achieved through monitoring and exercise of control over expenditures and commitments. This is done with due regard to the schedule. Maintaining the visibility of the Project cost is a key element. This is done through regular determination and assessment of future commitments and expenditures. Control and recording of actual cash payments to consultants’ forms part of project accounting. It will also apply to other stakeholders such as suppliers and contractors for their contribution in the project. This should be done in a manner that enables comparison. Definitive and detailed procedures are paramount for this function to successfully carried out. This will ensure that the project has financial integrity. Regular Status Reporting There is need for constant and timely up-to date information in bid to keep the client and other stakeholders informed of the progress. The reports include: - The General status of the progress - Progress as compared to schedule - Cost as compared to the budget - Status of activities of consultants, contractors and management - Procurement status - Permits, agreements and contract negotiations - Status of construction - Certification of completion & commissioning status Management of Design Consultants This ensures that the design work is in line with the time framework given. It at the same time ensures that the output of this work falls within the scope of the project and is commensurate with the budget. This may include: - Working with the owner of the facility in preparing a design. It entails brief outlining of the requirements of the projects. This will form the basis of consultant selection. It will also include prequalification based on capability and staffing - Recommendations on staffing - Negotiation of responsibilities, the terms of reference and the fees structures will be done with the respect to the project team - Award recommendations - Briefing and ensuring that regulatory and user input is well coordinated A7 PROCUREMENT AND CONTRACT ADMINISTRATION As depicted by the following sub-sections, the degree of effort needed in this sector would be substantial. A7.1 Procurement It involves the systematic completion of procedures within the right time and in the cheapest way possible. It involves buying all relevant materials, machines and getting the required services. This process includes: - creating procurement criteria and systems relying on fine commercial activities with the consent of the owner. - scheduling and creating a budget for the project. - Consensus with the owner in terms of signing and hiring authorities. - choosing of suppliers and searching for available markets - coming up with better documents and materials for the proposals, order calls and buying orders. - offering advice in terms of awarding proposals and bids. - verifying materials and any machine brought - giving out contracts Expediting With regards to expenditure, it is vital to determine whether planned goals will be achieved, and what measures will be essential to guard against unexpected fatalities regarding to deliveries. It includes all materials, machines and services required for the project, regardless of where they are gotten (Miller, Hobday, Leroux-Demers & Olleros 1995, p. 363-400). Quality Assurance and Control It identifies various objectives such as material attributes which are needed to fulfill the aim of the project. It also establishes a mode of client interfacing for coordinating scheduled and organized controls for improving already created standards from the beginning design work through to the final product. It is necessary so as to have a direct relationship with the results by way of adducing certain technical data which are analyzed so as to be accepted or not. Payment Certification It involves the verifying of the payment documents and finally paying all the necessary individuals according to their contracts. As for the suppliers and contractors, delegation of their duties to their consultant ensures that the work done is of their required technical standards. The paper work has to conform to project accounting. Management of Construction and Commissioning Construction Management Setting of a strategy is part and parcel of construction management. This is followed by the execution, for the procurement of constructed work. An organizational structure is a format within which an institution or a business entity devises and executes its day to day operations. It can be described as process of coordinating the human resource, communication and technology as well as other resources within a given organization. For an organization to come up with a structure, it has to make use of a well thought out design. A design must support any type of organization to reach the goals it is aiming to achieve. Normally, the staff discusses the needs of the organization and then come up with a criterion to meet the needs. Good designs accompanied with deliberate workforce effort are essential to realizing an effective organizational structure (Burton, DeSanctis & Obel 2006). The security problems faced in this corporation are intrusion of the corporation’s valuable data and some customers’ credit card details were accessed illegally. Some employees have also stolen personnel data because it had not been fully protected. Other probable risks are virus, spam or hackers’ attacks. This is an indication that the company’s software is unprotected and can even crush down unannounced, should there be an occurrence of a peril which it cannot prevent. However, the security of the hardware system was reported intact. The digital surveillance equipment and security personnel have made sure that no hardware parts of information, communication and technology department are evacuated from the building without verification (Miller, Hobday, Leroux-Demers & Olleros 1995, p. 363-400). Commissioning Commissioning of the project is usually carried out by the owner or the persons that will be running the facility. However, before commissioning, all the projects works must have been completed and that the every part should be functional. In commissioning the whole team that is involved in the project must be involved. The team will assist in the management of the transition from the stage involved with construction to operation of the facility. In order for commissioning to be successfully carried out there is need for the formation of commissioning procedures to ensure there is order during this exercise and that there is successful completion, including: - Available Responsibilities and organization in facility running - Detailed equipment and systems commissioning and the sequence of the start-up. This will include check-out, static tests and performance tests - The acceptance of the client. This would include equipment and systems tagging and various opportunities for training and familiarization with the facility. It also involves temporal designation of storage and working areas including areas for staff operations. - The lists of deficiency and their progressive correction - The permits for occupancy - Facilitate completion of all contract documentation References Acha, V., Davies, A., Hobday, M., and Salter, A. J 2004. ’Exploring the capital goods economy: complex product systems in the UK’, Industrial and Corporate Change, 13(3), 505-529. Anderson, P.W 1972, ‘More is Different: Broken Symmetry and the nature of the hierarchical structure of science’, Science, 177 (4047), 120-127 Crawford, L. & Pollack, J 2007, ‘How generic are project management knowledge and practice?’ Project Management Journal, 38 (1), 87-96. Denker, S., Steward, D.V. & Browning, T. S 2001. ‘Planning concurrency and managing iteration in projects’, Project Management Journal, 32 (3), 31-38. 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