Fundamentals of Project Management

Assessment Brief

Fundamentals of Project Management (BT7073)

Case Study / Brief

The Fundamentals of Project Management course has TWO separate deliverables to be submitted as a single document:

Part A

Project Management Consultancy Report

This should be structured in four sections based on the Case Study – 3500 words (85% of final course grade)

Part B

Reflective Essay

Prepare an analysis into the challenges encountered throughout the Module and the difficulties producing the assessment. Identify clear personal development goals. Briefly from your research highlight the characteristics of a Good Project Manager.

750 words (15 % of final course grade)

Background

Automation Futures (AF) PLC which is shown in Fig.1 is a technology contracting, consulting and product/software development company with extensive experience in the design, manufacture, commissioning and delivery of a range of Electronic/Technology projects but specialising in Automation and New products for a range of clients including Bespoke Automation Factories. It operates out of a large Consultancy Practice in The Thames Valley (UK) and a Product Development factory in Ireland (ROI) which develops and manufactures automation plant and Prefabricated Factories for various clients largely in Europe.

The company’s facilities and expertise allow them to offer tailor-made solutions that are highly competitive with other companies in this market. Margins on projects are good given the innovative nature of the business but clients are demanding and require competitive responses in a fast-changing world.

AF PLC has won a major contract to design and build a new engineering Automation plant for a major Train manufacturing client, TTF PLC, based in Germany which will deliver Electronic Component parts including a to be designed Inverter Product specifically aimed at Power Saving for new train fleets. TTF is itself a major supplier to various governments and train operating companies throughout the world. The contract is structured on a risk and reward basis with a target price of £58.5m with a shared bonus if finished early and a shared penalty if finished late.  The target price is extremely competitive and reflects the belief that they have the capacity to improve on the delivery date and thereby earn the bonus. The AF PLC bid was based on a conceptual design provided to them setting out the outputs in terms of product attributes including power saving targets and product availability. AF Plc will have to complete the detailed design of the Inverter product from outline designs prepared by TTF along with the automated production line as part of the Contract and organise installation of the equipment in the New factory in Germany which they will also have to commission and Construct.

TTF will manufacture the Inverter Product from the production line as part of its Train Manufacturing Process.

TTF have acquired the site for the New Factory but AF will have to:

• Design and Construct of the new Factory to fit the automation equipment;
• Design and Develop the Automation plant including the production line software;
• Design the Inverter product including the control software.

Questions.

Part A.

Project Definition/Parameters and Risks (20 Marks)

1. Discuss the relative importance of the various iron triangle parameters in setting the Overall Project objectives that will need to be managed by you as the AF PLC project manager over the course of the project, and how they may inter-relate to each other. (10 marks)
2. Use the template provided to create a risk register, identifying a maximum of ten risks that AF PLC are likely to face with a construction project of this nature. (10 marks)

The main contracted Labour/Staff requirements and the fixed costs for each task are shown in Table 1 are in £m.

1. Prepare a network diagram showing the critical path and planned duration of the project. Quantify the float on the non-critical tasks. (8 marks)

2. Using Microsoft Project (or a similar package) prepare a Gantt chart for the project to a professional standard. Calibrate the timescale in weeks. If the project is scheduled to start on Monday 8^th July 2019 determine the planned completion date based on the constraints outlined in table 1 and the brief. (8 marks)

3. Using the information provided, detail the overall Project Budget and the projected Net profit for the contract (i.e. revenue – costs) (including any bonus or allowing for any penalty) that the company will be aiming to achieve based on the projected completion date and the contract terms.  You are also required to provide an indication of what budget components could impact the point at which in terms of days late the project could become loss making assuming no increases on the initial Project Budget. Show your workings clearly using a spreadsheet (You can submit as a separate spreadsheet file attachment, but the overall figures must be included in the main body of the report) (9 marks)

Managing progress and spending (10 Marks)

The project started on time, and after 17 weeks of work following on from the Project Review, an intensive analysis of the project was held at the AF PLC Factory. The following information was reported by the project team.

1. Using the Gantt chart, determine the planned progress (%) for each task, after 17 weeks had been completed. Assume that progress is achieved on a linear basis for each task. For example, if a task is planned over the course of 4 weeks, then if 3 weeks have elapsed planned progress would be 75%. Then create a TABLE comparing the planned progress against the actual progress values from table 2. (5 marks)

2. Enter the actual progress values for progress from the revised Table produced in answering Q3a into the Gantt Chart, and using Microsoft Project or similar software reschedule the project with effect from the review date. Produce a revised GANTT Chart AND IDENTIFY the new completion date and COMMENT on the outcome from a commercial perspective detailing any POTENTIAL effect on the Profit from the Project AND the budget cost. (5 marks)

Sample Answer

Project Management Consultancy Report – AF PLC Case Study

Introduction

Automation Futures (AF) PLC, a leading technology contracting and consulting firm, has secured a major contract to design and construct a new automated factory for TTF PLC in Germany. This project involves the detailed design of an inverter product, the development of an automated production line including software, and the construction and commissioning of the factory itself. The contract is structured with a risk and reward model, offering a shared bonus for early completion and penalties for delays, placing significant emphasis on schedule adherence and cost control. The complexity of this project requires careful consideration of the key parameters of project management, rigorous risk identification, and detailed planning to ensure successful delivery.

Project Parameters and the Iron Triangle

The Iron Triangle of project management, time, cost, and scope, provides a framework for defining project objectives and guiding decision-making. In the context of the AF PLC project, time is of paramount importance due to the contractual penalties associated with late delivery. The schedule must be tightly managed, and critical milestones identified to maximise the likelihood of earning the early completion bonus. Cost is equally significant, as the project involves substantial fixed expenses including labour, materials, and software development. Budget overruns would directly reduce net profit and could jeopardise the financial viability of the contract. Finally, scope and quality are crucial; the client requires high-performance inverter products and an efficient automated production line, making adherence to specifications essential for client satisfaction and potential future contracts.

These parameters are interdependent. Accelerating the schedule may increase costs due to overtime or additional resources, while attempts to reduce costs may risk quality or extend the timeline. Scope changes, if not carefully managed, could affect both schedule and budget, demonstrating the need for integrated management across all three dimensions. Overall, while time is the most pressing factor due to contractual penalties, cost and scope must be managed concurrently to protect profitability and ensure project success.

Risk Identification

Effective project management requires proactive identification and mitigation of potential risks. AF PLC faces a range of risks across design, construction, and software development phases. A risk register has been developed to capture these, with mitigation strategies aimed at minimising impact:

Key risks include delays in detailed inverter design, supply chain disruptions, software bugs, labour shortages, regulatory compliance in Germany, equipment delivery delays, budget overruns, construction site challenges, client scope changes, and environmental or safety incidents. Each risk has been assessed in terms of probability and impact, with mitigation strategies such as cross-training staff, maintaining contingency budgets, early procurement, and formal change control processes to manage these effectively.

Continued...