Question

1. With the aid of a diagram, discuss the effects of off-setting the balance of one of the triple constraints of project management.
2. PMBOK (2013:66) defines the project charter as; “…the document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities”. Develop a project charter for a project of your choice clearly outlining and discussing its key components. (10 marks

Answer 1

Answer 1:

The diagram is shown below. The effects of off-setting the balance of one of the triple constraints of project management is as below

· Cost – If we offset the cost, then it will impact the project and the project cost will be increased and it will over shoot the budget allotted for the project completion. Thus cost of the project management is a critical constraint and need to be managed adequately. It can impact the project severely.

· Time – If we offset the time constraint, then it will impact the project and the project time will be increased and it will over shoot the time period allotted for the project completion. Thus time period of the project management is a critical constraint and need to be managed adequately. It can impact the project severely.

· Scope - – If we offset the scope, then it will impact the project and the project cost and time will be impacted severely. Both cost and time period will be required to re-calculate for the new scope of the project. Hence project scope is also a critical constraint and it need to be managed adequately and should not later once set.

Answer 2:

The project charter is a critical document for the project and it defines the key deliverables from the project as below - a comprehensive project charter as below for the Cummins Turbo company as below

Project Objective – Big Y (in Six Sigma methodology) : Increase the monthly sale for their turbos for the Cummins Turbo Tech from 20K/month level to the target 25K/month levels, without increasing the resources cost significantly.

Key Reasons for the Project:

· The sales are on down trend in last three quarters.

· The current monthly sales are not meeting the targets of 25K/month.

· The profitability of CTT is lower than targets.

Project Benefit:

· The sales will be improved and hit target.

· The profitability for the CTT will be achieved and hit targets.

· The organization sale process will be improved and established.

Project team:

· Sales Account Manager

· Sale Coordinator

· Material planner

· Production Manager

· Sales Leader

· Customers ( ABC, XYZ, PQR, GHT)

Time Plan: Time plan for this project will be six month from the start of the project i.e. Jun-2020 to Nov-2020

Project Scope:

· Inside scope –

o Turbo sales process,

o Turbo market penetration,

o CTT organization

o CTT Monthly sales,

o Current sales team and organization structure.

o Domestic market

· Outside scope –

o New Turbo for sale,

o New hire for sale team.

o Global market

Project Objective:

· Project Baseline – Current average sales are at 20K/month levels for company.

· Project Goal – Goal for average sales are at 25K/month levels for company

Project Entitlement – Entitlement for average sales are at 30K/month levels for company.