BS2922 - Introduction to Project Management Assessment (Anon) v1 PDF

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Introduction to ProjectManagementREPORT OF HEATHROW TERMIAL 5 PROJECTMANAGEMENTSEAN BULLEYContentsIntroduction to Project Management............................................................................................................................ Introduction to Project Management............

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Introduction to Project Management REPORT OF HEATHROW TERMIAL 5 PROJECT MANAGEMENT SEAN BULLEY

Contents Introduction to Project Management............................................................................................................................ 2 Literature Review......................................................................................................................................................... 3 What is Project Management?.................................................................................................................................. 3 Iron Triangle.............................................................................................................................................................. 3 SWOT Analysis......................................................................................................................................................... 3 McKinsey 7S............................................................................................................................................................. 4 Project Management Model...................................................................................................................................... 4 Conclusion................................................................................................................................................................ 4 Case Study.................................................................................................................................................................. 6 Stakeholder Analysis and Mapping........................................................................................................................... 6 Project Charter......................................................................................................................................................... 8 Project Scope Statement...................................................................................................................................... 8 Project Management Risk Register....................................................................................................................... 9 RACI Diagram..................................................................................................................................................... 10 Communications Plan............................................................................................................................................. 11 Work Breakdown Structure..................................................................................................................................... 12 Gantt Chart............................................................................................................................................................. 13 Benefits Analysis.................................................................................................................................................... 14 MODeST Framework.............................................................................................................................................. 15 Conclusion................................................................................................................................................................. 16 References................................................................................................................................................................. 17

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Introduction to Project Management This report focuses on aspects of project management, placing a focus on methods that went into the delivery of London Heathrow Terminal 5, from the concept to delivery completion in March 2008. Project management, as a whole, is also considered in this report, looking at best practice as documented by subject matter experts. In 2016, London Heathrow was recorded as the seventh busiest airport in the world[ CITATION Sta17 \l 2057 ] with over 75 million passengers passing through in the year. Part of the success of Heathrow Airport is due to the addition of the 5th terminal. The first talk of terminal 5 came in the late 80's as market demand for air travel boo med, and London Airports were soon becoming unsuitable for the rise of the request. In 1993 a proposal was officially submitted to build an additional terminal at Heathrow (T5). After eight years, in 2001, permission was finally provided for delivery of this project to get underway. 2008 saw the delivery of the terminal 5 project.

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Literature Review What is Project Management? A project, and in turn project management is defined differently and had various characteristics defined by each body, with no single accepted definition. However, Shared ideas are common across all definitions. Consistent agreement across definitions suggest a project must be a unique endeavour and not business as usual. [ CITATION Ass04 \l 2057 ], [ CITATION Bri00 \l 2057 ], [CITATION AXE \l 2057 ]. The British Standards Institution (2000) also require that a project have a set start and end date, while Association for Project Management (2004) more generally require a project to be “transient” not necessarily with fixed definitions of the start and end. PRINCE2 (2017) calls projects to have an organised and controlled start, an organised and controlled middle, and an organised and controlled end”. The purpose of a project is contested by many. The PRINCE2 project framework requires a specific business case to be agreed to justify the project [CITATION AXE \l 2057 ]. While the Project Management Association of Japan simply requires a “mission” to be agreed. The common agreement is that there must be a specific outcome as opposed to simply a business case [CITATION Pro05 \l 2057 ]. Maylor (2010) agrees with this approach, through reminding that a project is not exclusively for businesses and can apply to personal tasks also where a “business case” will not exist in a formal sense. Across all definitions, the common themes, however, suggest that a project must be:   

Unique Temporary / time constrained To meet a specific outcome

Project Management, therefore, can be defined. PRINCE2 describes as the “process of delivering a product, service or change within constraints to meet established objectives of the project” [ CITATION AXE \l 2057 ]. Association for Project Management (2004) supports PRINCE2 who also define the core requirements of project management. Maylor (2010) suggests project management involves overseeing the change and activities linked to a project while also managing resources such as staff and finance and facilitating the linking of different teams/skills. Prescribed systems for managing projects have been studied actively since the 1980s, the first reference to project management in the 1950’s [ CITATION Gil12 \l 2057 ], with recognised processes and methods coming into practice more recently. Project Scope is "The work that needs to be accomplished to deliver a product, service or result with the specified features and functions“ (PMBOK Guide, 2008). The scope of a project is essential to project management as it is where the project needs are defined. If a scope is not defined, it may not be clear when the project is complete, causing issues when looking for customer sign off, a key part of the Iron Triangle. Scope creep important because the customer may continue to add more work to the requirements increasing costs un an uncontrolled and unplanned way, causing financial issues to the project. (Khan, 2006) (Hassan et al., 2017)

Iron Triangle As part of the 4D model, required projects to identify their requirements and aims at the start of the project (Maylor, 2010). The PRINCE2 project management framework enforces the same activity [ CITATION Bon14 \l 2057 ]. Sakas (2016) defines the Iron triangle as a tool used to understand the constraints of a project. Focusing on three constraints, time, quality and cost and Sakas (2016) suggests as part of the article that the Iron triangle remains a valid part of understanding a project. Atkinson (1999) believes that a project is only able to focus on two areas of the triangle while still able to be a success. Caccamese (2012) supports the iron triangle, calling it “very popular metaphor” however does suggest that the iron triangle is missing several “soft factors” such as “team motivation” and suggests the triangle is outdated. Roger (1999) agrees with Caccamese, stating that the iron triangle is outdated and missed important factors of project success, naming “sustainability”. All sources considered, the iron triangle remains an important part of the project definition phase of a project, although it is essential to consider other areas outside of the iron triangle.

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SWOT Analysis SWOT Analysis is defined by BigCommerce (2017) as “a comprehensive audit and competitive analysis that analyses the Strengths, Weaknesses, Opportunities and Threats facing a business” and remarks that a SWOT analysis can help a business understand strategic changes to make to improve business. Geoffrey and Rochford (2016) suggest that SWOT is a highly valuable tool and despite its age is still essential for businesses to conduct when strategising. A study by EmeraldInsight (2015) further supports SWOT as a tool, praising it for the “simple and catchy” name that helped it “show out” in business. EmeraldInsight (2015) proposes that SWOT is a “key tool for addressing complex strategic situations”. A distinct lack of journals existed proposing that SWOT be anything but still relevant to the business, and on reflection, this indicates that the tool remains useful for businesses and projects down to its simplicity and the use it provides to business analysis.

McKinsey 7S McKinsey’s [ CITATION McKinsey’s McKinsey’s approach.

7s is an organisational analysis tool that looks at the best way to effectively organise a company Val16 \l 2057 ]. Peters (2011) suggests that often the SWOT analysis a company conducts are fed into 7S model to provide a wider overview of the pulls on a company when determining their strategy. 7S places focus on seven areas of the business to review as part of their structural organisation

Staff is an area of the 7S model that receives focus. The value of the people involved in a project is appreciated as opposed to the approach even used in the 1920s where members value was not recognised [ CITATION Tha04 \l 2057 ]. Thamhain suggests that in the current project climate the people and their knowledge that forms a project team is essential to “compete in today’s business environment.” [ CITATION Tha04 \l 2057 ]. Maylor also supports this view that team members should not be “treated as anonymous cogs in the machine” [ CITATION May10 \l 2057 ] and instead provide real value to a project. Maylor suggests that project managers need to pay close attention to who forms the project team when forming a new project to ensure the optimal level of team characteristics and knowledge. Mišanková and Kočišová (2014) highlight that the McKinsey 7S model proves useful within a business environment. Particularly praising the model for looking at both “hard” and “soft” factors of project management, considering areas that other, older, frameworks may not as the mindset of project management has changed over time where the focus existed on the “hard” factors of project management.

Project Management Model Many project management models exist and serve the purpose of structuring how a project progresses from start to finish [CITATION Sto \l 2057 ]. A potential model presented by Maylor is the 4D Model. Maylor provides a process for project management, focusing on four defined stages of a project, designed for use by all project managers, with a focus on “beginner” or “non”-project managers where a simple framework for basic planning is required [CITATION the17 \l 2057 ]. Maylor curated the model as a method of breaking down complex environments into simple stages [ CITATION May08 \l 2057 ]. The 4D model can be used to split down larger projects into sub-projects within each “D”, effectively causing a recursive implementation of the 4D model. PRINCE2 is an alternative project management model, owned by AXELOS that is the most widely adopted project management framework within the UK [ CITATION PRI171 \l 2057 ]. PRINCE2 originally came around after reviewing thousands of projects to review where successes and failures existed, with the aim of creating “the perfect” project management framework. Many, including Matosa and Lopes (2013), believe that PRINCE2 is the “gold standard” for project management and is currently the most suited option available. Although Matosa and Lopes (2013) do suggest that other frameworks may be on the horizon that provides improvements to existing project management methodologies. PRINCE2 is also widely available through training courses, making at an appealing qualification to have and a viable option for businesses to adopt [ CITATION PRI14 \l 2057 ]. On reflection, however, it is suggested that the most suitable project management methodology is different for each project and the team that form the project. Alexander (2017) agrees that a project’s circumstances can vary significantly – leading to changing “best” methodologies to use.

Conclusion In conclusion to the literature review, the definition of what makes a project is unclear – however common themes exist indicating that projects are unique, time constrained and are required to meet a specific requirement. The Iron Triangle remains a valid tool to understand the criteria of a project with focus placed on criteria. SWOT analysis Page 4 of 20

remains popular as a tool for understanding areas for the business to progress and if a project is of benefit and finally that many project management models exist and the most applicable to the project at hand can depend on many factors. Maylor (2010) reminds the reader that, while by the textbook, and therefore by proxy, the ideas discussed in this literature review are on paper perfect, however in “the real world” the lines are not as clear-cut and are required to be flexible to allow a project to succeed truly.

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Case Study Stakeholder Analysis and Mapping Stakeholder analysis is a tool used for mapping out the stakeholders in a project and is used to help understand who the key influences in a project are and how to handle their needs [ CITATION May10 \l 2057 ]. This tool then gives a high-level understanding of who is important to the project and guidance on where to allocate resources. [CITATION Tho17 \l 2057 ]

High

Keep Satisfied

Manage Closely

Local Residents The expansion of Heathrow Airport would bring an increase of flight traffic in the airspace. This will impact residents living in the area with an increased level of noise pollution. The collective power of these stakeholders is very as they have a large influence, their interest outside of their local concerns, however, is low. [CITATION LHR172 \l 2057 ]

Employees of Heathrow Airport The employees of Heathrow Airport are key stakeholders as they are impacted by the addition of a new terminal. They are likely to be required to learn additional systems [ CITATION Wha08 \l 2057 ], modify processes and travel to new locations. The staff agreeing and approving of these changes is essential to the smooth running of the new terminal. Change to the workplace is also often linked to human resource issues and managing this is critical. (Chaudhary et al., 2015) British Airways Terminal 5 was designed to be the new “home” of British Airways, with most of flights by the airline originating from this terminal. British Airways has a high interest in the project as it very directly impacts them and their operations, and as the key “residents” of the terminal, have incredibly high power. (Hazell and Henry, 2008)

Power

Monitor Only

Keep Informed

Other Airlines Worldwide Heathrow acts as the UK’s air travel hub, with 30% [CITATION LHR171 \l 2057 ] of the total passengers passing through the airport without leaving the addition of more terminals will allow an increased number of flights to be hosted at Heathrow. Other airlines worldwide will be able to take advantage of this and route additional passengers via Heathrow.

Airport Suppliers Building an additional terminal opens retail and hospitality opportunities for many businesses to build new locations within site. These suppliers have minimal power over the development as they are replaceable with competitors. However, their interest in capitalising in new business is high. Environment Agency The Environment Agency is responsible for evaluating the impact of developments on wildlife and the surrounding environment. [CITATION Env17 \l 2057 ]. This government agency has an interest in the impact of terminal 5 and will look to evaluate the impact and provide suggestions, however, power for this development is low. [ CITATION Bro01 \l 2057 ]

Low

Low

Interes t

High

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Further to a stakeholder analysis, it is possible to map the various stakeholders to a visual diagram to provide a more clear, visual, understanding of how to manage various stakeholders.

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Project Charter “A project charter describes what your project is and how you will approach it, and it lists the names of all stakeholders.” [CITATION Ric \l 2057 ]. The project charter must be comprehensive, and all members should be committed to the plan. There can be uncertainty about a project should the project charter fail, leading to issues with delivery. [ CITATION Hay00 \l 2057 ].

Project Scope Statement

Project Objective

Improve service quality to passengers through building a new terminal at Heathrow Airport to accommodate 35 million passengers. Cost not to exceed £4.3bn. [CITATION LHR173 \l 2057 ]

Deliverables

Terminal Building Two Satellite Buildings Two new open rivers Air Control Tower (87m high, to serve all of Heathrow Airport) [CITATION Pri17 \l 2057 ] 60 Aircraft Stands Car Parking for 4000 cars Surrounding Road Infrastructure (M25 spur) Rail Infrastructure (London Underground) [ CITATION Ril07 \l 2057 ] [CITATION Rog17 \l 2057 ]

Milestones

Milestone 1. Completion of landslide civil process Milestone 2. Completion of Terminal 5 building Milestone 3. Completion of Airfield and Runway Milestone 4. Completion of Road and Rail infrastructure Milestone 5. Completion of testing and quality control Milestone 6. Opening of terminal

Technical Requirements

Drop ceilings with easy access to the ceiling void. Information Display systems and FID (Flight Information Display) systems RFID Card Access throughout Advanced transport around airport

Limits and Exclusions

Airplanes are a separate contract Staff and resourcing are additional contracts.

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Project Management Risk Register A risk register is used to track and record risks to a project, used to record mitigation steps and the action to be taken if a risk becomes an incident. Leva et al. (2017) report that “to maintain safe operations, organisations must continuously review and monitor their risks” this stands true for project management to ensure the success of a project.

Risk

Probabilit y (1-5)

Severit y Score (1-5)

Total

Action to Mitigate

Activist and Protests

5

3

15

Listen for increased levels of concern within community and react to potential issues before a protest forms.

Staffing and Resourcing

3

3

9

Begin recruiti...