Project Management Essay
Appraisal of an activity you believe would be Improved by managing as a project; Appraisal of an existing work project you are currently Involved with; or Appraisal of an actively you were Involved with In the past that you believe could have been managed as a project. Assignment report
The assignment report should include:
a) A brief description of the organizational setting and the project environment to ensure the assignment examiner understands the context in which the project is set.
b) An outline of the objectives of the project and the importance of the project to the organization.
c) A detailed overview and analysis of the use of relevant concepts, tools and techniques involved in project management. This section should comprise the main part of your assignment and should consist of an overview and analysis of the relevant project concepts covered in the subject.
At a minimum, there should be a mention of at least the following concepts:
- How the project should be defined
- How project times and costs are estimated
- A discussion of the project plan
- The management of project risk
- Resource scheduling
- Project team issues
- Project performance management
Note that although all of these concepts should be mentioned, some of them may be more important for your particular project than others. In these instances, you should feel free to focus your analysis more heavily on the more important issues as they impact your project. Word count (from the start of the Introduction section to the end of the Conclusion section and not Including figures/charts): 2,745 words The purpose of this paper is to present a project proposal for a new project which was recently allocated to the project management team at the Fussily Medical Systems Company, Sydney, Australia.
The reason for the project results from the win of a tender for a four year film/print contract between Fussily Medical and the I-Med Network and is worth $million. This entails the installation of 220 Laser Digital X- Ray Film printers in 147 sites across Australia from Darwin to Hobart and many cities and towns in between. In developing the project proposal, this paper will demonstrate what the project intends to accomplish, how the project will go about accomplishing its objectives and if indeed it is in keeping with the strategic vision of the company and consequently how important it is to the company.
In proposing what work has to be done, which is the intent of the proposal, this paper will present a detailed overview and analysis of the use of relevant concepts, tools and techniques involved in project management. Generally speaking, based on the proposal, higher management will make a decision on whether or not to proceed with the project. Once the decision is made and the directive given to proceed with the project, the project plan is developed, refined and executed.
Whilst the project plan is not, as far as execution and delivery is concerned, a major part of the brief for this paper some of these aspects will be discussed for completeness. Table of Contents 1. Introduction 2. The Companies and Project Environment Medical Systems 6 6 2. 1 Fussily 6 2. 2 The I-Med Network 6 2. 3 The Project Environment, Objectives and Importance of the Project 7 3. The Project – Overview and Analysis Cycle 9 9 3. 2 The Project Life 83. 1 Defining the Project
3. 2. 1 The goals and specifications of the project tasks and responsibilities of the project 9 3. 2. 2 10 3. 3 Planning the 11 3. 3. Resource The Project 3. 3. 1 Schedules Scheduling 11 14 3. 3. The Management of Project Risk 3. 3. 5 Project Team Issues Project Performance Management 4. Conclusion Glossary References Appendix 1 Appendix 2 13 3. 3. 3 Estimation of Costs 15 15 3. 3. 6 16 17 18 19 20 Whilst project management was once the domain of the building industry, the methods used there are now also utilized in new product development, event management, larger computer hardware and software installations, major equipment installations and, in any organizational event that is big enough to have a considerable number of demands and variables.
Projects have a specified objective o achieve, a start and end point, often require the bringing together of various specialists within the organization who would normally be working individually, are not part of the routine work of the organization and finally, budget, time and performance constraints are integral. Therefore projects are specific entities which require specialized management in the form of a project manager and his or her team. The first part of the process or life cycle of a project is the proposal stage where the project is defined and planned. This paper will concentrate on these aspects of project management.
A detailed overview and analysis of the project will ensue so as to show what is required to bring a project together to a successful conclusion. 2 The Companies and Project Environment 2. 1 Fussily Medical Systems A pioneer in imaging, Fussily Medical Systems (FM) was the first company in the world to introduce a digital x-ray diagnostic system in 1983. Besides x-ray imaging equipment, FM also produces and markets endoscopies, ultrasound and medical IT (PASS and IRIS) solutions. FM is a subsidiary company of Fussily Holding Company headquartered in Tokyo, Japan. In Australia, the head office is in Brooklet, Sydney.
2 The I-Med Network The I-Med Network or I-Med Radiology Network is a privately owned company and the largest medical imaging network in Australia with 200 clinics covering all major metropolitan areas and significant parts of rural and regional Australia. The group offers all scans and radiology services including X-ray, PET, CT, MR.., Nuclear Medicine, Ultrasound, Mammography and International Procedures. 2. 3 The Project Environment, Objectives and Importance of the Project Fussily Medical has been successful in the bid off tender for the supply of 220 X-ray digital laser film printers.
The printers will be supplied and installed into 147 sites across Australia at no cost but the I-Med Network has to purchase ten million dollars value of film at a pre-set price for the duration of a four year contract. The sales figures will be monitored volume, the I-Med Network will have to pay back a “penalty’ fee for each meter of film that has not met the target. This fail-safe ensures that Fussily Medical Systems does not lose revenue and ultimately profit on this deal.
The first matter, in essence, that is part of the project to be undertaken is the preparation by the FM company solicitors f the “I-Med Equipment, Consumables and Support Agreement” (the agreement’). The agreement outlines all the legal requirements and expectations of the project between the parties, including the maintenance, breakdown and technical support and service level offered. The finalization of the agreement is a critical step and until this is signed and settled by both parties nothing else will proceed. There were two other major companies bidding in this tender namely Gaff Healthcare and Kodak.
This deal and therefore the project is important to Fussily Medical for the following reasons: 1 . It will keep competitors from entering into film/print deals with the I-Med network for at least the four years of the contract; 2. At the end of the contract, the l- Med network may choose to continue its association with Fussily and re-contract with new equipment for another term; 3. It offers FM the advantage of being present and having first look-in for value added sales for other equipment like Computed or Digital Radiography image processors or PASS and IRIS (see Glossary); 4.
The value of the deal is approximately ten percent of the total revenue for FM during the contract period, consequently it is a deal that cannot be dismissed. Further, as stated by Larson and Gray (2011 p. 23) ‘[s]treated is implemented through projects. Every project should have a clear link to the organization’s strategy. Indeed, this project certainly fits in with Fistful’s Medical’s mission statement, which is: To be the recognized leader in providing integrated solutions to meet each customer’s imaging and information needs. Fussily USA website, 2013) 3 The Project – Overview and Analysis The Project Management Institute (IMP cited in Larson and Gray 2011, p.
5) defines a project thus: ‘A project is a temporary endeavourer undertaken to create a unique reduce, service or result’. Sheehan (2008) tells us that projects are becoming more and more important to organizations and indeed operations, the ongoing activities in a company such as manufacturing and services, whilst necessary, are on the decline. Larson and Gray (2011 p. ) clearly state the major characteristics off project as follows: 1 . An established objective;
2. A defined life span with a beginning and an end; 3. Usually, the involvement of several departments and professionals; 4. Typically, doing something that has never been done before; and 5. Specific time, cost, and reference requirements. The project to be undertaken by Fussily Medical Systems for the I-Med Network certainly encompasses all the above characteristics. The objective has been project is expected to begin on April 1, 2014 and completed by September 30, 2014.
This is a time-constrained project. The project will involve the legal, finance and procurement departments, account managers, technical services engineers and electricians, IT specialists, warehousing and logistics and the project manager(s). A project of the scale presented here has never been attempted previously and Hereford requires a high level and precise plan which can be created and executed by a dedicated team. Costs have to be kept too minimum so as not to impact too greatly on gross margins.
Performance requirements are expected to be rigorous due to the nature of the installation and penalties to FM will be applied by the I-Med Network for any issues in this regard. Disruption to normal business has to be minimal due to the fact that this project deals with medical imaging clinics where diagnoses are paramount and to reduce any loss of business/revenue for the I-Med Network. 3. 1 The Project Life Cycle Pinto and Prescott, cited in Jujube and Mјleer 2005, tell us “[most] project life cycles include phases of conceptualization (sic), planning, execution and termination.
The same stages are called defining, planning, executing and closing by Larson and Gray (2011). The ensuing discussion will be concentrating on the defining and planning stages. The company (FM) will proceed with the project due to the fact that it is of critical business importance. The revenue generated from the sale is sufficient reason but it also gives the company great kudos in the marketplace. 3. 2 Defining the Project The goals, specifications, tasks and responsibilities (Larson and Gray 2011, p. ) constitute the defining phase of the project life cycle.
3. 2. 1 The goals and specifications of the project: Install 220 Drippy (Fussily brand name) Printers/almagest throughout I-Med Network’s 147 Australian Sites; The Printers will replace existing competitor (namely Gaff and Kodak) ones; The Printers will be replaced on a “like for like” basis (I. E. Similar size, capacity and throughput as existing competitor models, albeit newer technology); The images will be either a model DIPPED (3-Tray) or a 2-Tray DIPPED.
On analyzing the existing data of installed printers supplied by the I-Med network, the following printers will be supplied: 100 x DIPPED with Sorters 35 x DIPPED without sorters 40 x DIPPED with Sorters and 45 x DIPPED without sorters 133 of these printers will be Mammography enabled 3. 2. 2 The tasks and responsibilities of the project: There are many further steps than those outlined below but this is a macro view or part of the work breakdown structure (WEBS) of the project. Figure 3. 1 Task- Responsibility Chart RESPONSIBILITY Printers to be ordered and film stock increased
Product Managers and Procurement Department Warehouse manager to be notified of impending increase in stock levels and of extra incoming goods Project Manager Printers to be pre-staged – configured with correct sorters, film sizing and software installation – completed two weeks prior to installation week Technical Engineers Electrical compliance testing Electricians Logistics to be notified of equipment on-time delivery requirements and instructions pertaining to it. With consideration to the vast distances from Sydney headquarters, some destinations will require greater lead time.
Warehouse and Logistics Managers The I-Med Network sites have to be scoped for informatics and network infrastructure capability and compatibility Project Manager and Engineers Modalities (Computed/Digital Radiography, CT, Ultrasound, MR.. And so on)to be connected to printers for each site need to be clearly identified as this will affect pre- staging Fussily Engineers and IT/ Modality companies/ I-Med Network Printers dispatched to site the week before installation Project Manager with Warehouse and Logistics Install printers and train staff on use of printers Technical Engineers
Documentation pertaining to the printer()s) installed to be completed correctly and sign-off obtained from the Radiology manager or designated person Technical Engineers At the end of the particular installation week, all documentation to be sent back to the Lead Project Manager via internal mail Technical Engineers Documents to be filed and information archived and entered into database correctly Project Manager *See Appendices 1 and 2 for more information. 3. 3 Planning the Project The defining, planning and executing stages of the project life cycle basically begin at the same time Just by the nature of projects.
These stages may have specific functions but are interconnected and are sanctioned concurrently. When one is thinking of specifications and tasks, for example, already schedules, resources and staffing are being considered. Some of the planning stage has therefore already been considered in the defining phase. Abdominal (2012) explains this well, ” the relationships, iterations, phasing and overlaps between components of project, or program are derived from and verified by the nature of relationships between activities.
” In the planning phase or stage, we look at schedules, budgets, resources, asks and staffing (Larson and Gray 2011, p. ). Scheduling will have to run very much to plan to minimize disruption to the workflow tendency for the project scope to expand over time” (Gray and Larson 2011, p. 105) will not be an issue. The initial preparatory work including the length of the project have previously been discussed. Once delivered to site, a printer will take one day to install. The following, Figure 3. 2, is an example of what the installation schedule may look like before a Giant chart is produced. Figure 3. 2 Example Installation Schedule for this Project Site NO. Existing Site
Description and Quantities of Initial FUSSILY Equipment to be provided to that Initial Purchaser at that Existing Site Description of Redundant Equipment of that Initial Purchaser at that Existing Site Indicative Target Dates for Installation Timetable 1 . Royal Darwin CT 2. Royal Darwin MR.. 3. Royal Darwin UNC Med Drippy 7000 Drippy 4000 Kodak Dry-view 8700 Gaff Tartar 5300 Delivery -Week of 3/3/14 Installation Week of 10/3/14 Testing/Acceptance – Week of 10/3/14 Training – Week of 10/3/14 2. 1 . Hobart Calvary Hose 2. Hobart Calvary Hose Drippy 7000 w sorter Gaff Tartar 5500 Gaff Tartar 3000
Delivery – Week of 10/3/14 Installation – Week of 17/3/14 Testing/Acceptance – Week of 17/3/14 Training – Week of 17/3/14 3. 1 . Hobart Private Hose 2. Hobart Private Hose Drippy 4000 w sorter 4. 1 . SST Johns Hose TASK 2. Colonelcy TASK 3. Rosy park TASK 4. Kingston TASK 5. 1 . Wage Calvary 2. Wage Calvary 3. Wage Calvary Kodak Driveway 8900 Delivery – week of 17/3/14 Installation – Week of 24/3/14 Testing/Acceptance – Week of 24/3/14 Training – Week of 24/3/14 ‘Giant Charts were and are used as a visual tool to show scheduled and actual progress of projects’ (Kumar 2005).
Giant charts are used because they are easy to interpret and popular software such as [email protected] Office Project 2007 have made this a readily available tool. Editing is also simplified because of computer technology. For a project like the one proposed here, this type of software is ideal because dates can be used effectively, time is represented on the horizontal axis and activities down the rows (Larson and Gray 2011, p. 174). Resources can also be added. The following, Figure 3. 3, shows an example of a Giant chart for a similar equipment installation and time based project. .
3. 2 Resource Scheduling Ahead S, Imitate ML and Imitate A (2013) state: t]he companies dealing with multiple projects are geographically distributed at different locations. These projects require local (always available to the concerned project) and global (shared among the projects) resources that are available in limited quantity. Certainly Fussily has several projects in progress at all times and therefore wherever possible local resources such as engineers will be utilized for cost savings and efficiency in organization.
For this project, Jamie Carlyle will be the Lead Engineer assigned solely to and for the entirety of the I-Med Printer Project and engineers from each State will complement the process. Preventative Maintenance Schedules (part of the day-to-day activities of the service department), Service Engineer’s Annual Leave and Public Holidays are some of the issues that have to be taken into consideration when preparing the final schedule.
Being a time- constrained, as opposed to a resource-constrained project, it must be completed by the agreed date and resources will be added as required to achieve this milestone. 3. 3. 3 Estimation of Costs The Fussily Company has allocated a figure of approximately 10% ($1 M) of the bid price to the cost of the installation project and maintenance over the life of the renters within the contract period; $500,000 of this creates the project budget. How are costs estimated?
Good (2009) provides a succinct explanation: “Simply stated it’s the product of the quantities of goods and services that will be required to execute the project, times the commensurate unit pricing for each of those goods and services”. In this project we can look at it like this: There are 220 printers to be installed. Whilst the time period to complete the project is six (6) months or twenty six (26) weeks, to allow some slack or buffer, the project will be calculated to be finished in went two (22) weeks. That is, ten (10) printers need to be installed per week.
One day per printer per engineer is required for pre-staging. Three engineers are required for installing a printer a day each. Generally, Monday (the busiest day in a Radiology practice) will be used to travel to site and finalizing any details before installation begins on Tuesday. Friday will be used for training purposes and travel home. An engineer is paid $2000 per week or $400 a day (total cost = $187,200). The project manager is paid $110,00 per annum but an extra two months is added here or the planning phase (cost = $ 73,000).
The cost of transport to a site is $150 per unit on average (total = $33,000). Travel, hotel and meal costs have been estimated to be $100,000. Legal, warehouse and other business costs are estimated at $50,000. The total estimated cost of the project is $443,200 which is within the $500,000 budget and allows for any unforeseen or misjudged costs. Spreadsheets and time- phased work packages are critical tools that can be used to simplify and take control of these calculations