4.6. Project management

Question 1

Define project

Answer 1

a specific and temporary activity with a starting and ending date, clear goals, defined responsibilities and a budget

Question 2

4 basic elements of any project

Answer 2

• resources - the people, equipment and materials
• time
• money
• scope - the overall size and scale of the project and the specific objectives set for it

Question 3

Define project management

Answer 3

using modern management techniques to carry out and complete a project from start to finish in order to achieve pre-set targets of quality, time and cost

Question 4

5 key elements of project management

Answer 4

• defining the projects, setting clear objectives
• dividing the project up into manageable tasks and activities
• controlling the project at every stage to check that time limits are being kept to
• giving each team member a clear role
• providing controls over quality issues and risks

Question 5

Reasons why projects fail (7)

Answer 5

• customers were not involved in the planning and development process
• the project had inadequate or no resources that were vital for its completion
• senior management did not seem interested
• project specification kept changing
• poor planning
• the project’s scope was outdated due to change in business environment
• project team was incompetent

Question 6

Define critical path analysis (CPA)

Answer 6

a planning technique that identifies all tasks in a project, puts them in the correct sequence and allows for the identification of the critical path

Question 7

Define network diagram

Answer 7

the diagram used in CPA analysis that shows logical sequence of activities and the logical dependencies between them - and the critical path can be identified

Question 8

Define critical path

Answer 8

the sequence of activities that must be completed on time for the whole project to be completed by the agreed date

Question 9

Advantages of CPA (6)

Answer 9

• Most importantly – helps reduce the risk and costs of complex projects
• Encourages careful assessment of the requirements of each activity in a project
• Help spot which activities have some slack (“float”) and could therefore transfer some resources = better allocation of resources
• A decision-making tool and a planning tool – all in one
• Provides managers with a useful overview of a complex project
• Links well with other aspects of business planning, including cash flow forecasting and budgeting

Question 10

Disadvantages of CPA (4)

Answer 10

• Reliability of CPA largely based on accurate estimates and assumptions made
• CPA does not guarantee the success of a project – that still needs to be managed properly
• Resources may not actually be as flexible as management hope when they come to address the network float
• Too many activities may the network diagram too complicated. Activities might themselves have to be broken down into mini-projects