Project Management Case Study

Project Management Case Study: House Renovation

Abstract

Real estate is a balloon economic bubble that does not seem to go away any time soon. Construction of new houses and renovation of the old ones is gaining traction. In the process of these constructions, project management is key. Construction businesses have realized the importance of project management as a tool to turn ideas into real activities leading to a better, affordable and desirable project outcome. Project management is a broad field that covers several aspects. This paper focuses on four of these aspects, that is Project schedule and critical path, risk assessment, leadership and motivation of the project team members. The paper begins with a discussion of the project schedule. This discussion is based on the critical path. A basic explanation of the critical path method and its success in bringing projects into a success is offered at this introductory level. Some of the benefits of critical path method as outlined include effective prioritization of key tasks and the ability of one to complete a project within a limited budgetary allocation. The next level of this essay discusses risk management, opportunities and strategies within a project and conclude that effective risk management and project monitoring is vital in running a project. The case study of a house renovation will be used to demonstrate the same. The last stage of this essay emphasizes the importance of leadership skills among project managers and the need to have a motivated project team. In our case study, Kevin, a project team member, will be the point of focus at this stage of the essay.

1.0 Introduction

The main elements of the project process, according to Haughty (2014), our team motivation, effective planning, risk management, business circumstance, critical success factor, realism, and avoidance of scope slide and project closure time. Different project demands different approaches. the factors leading to the success or failure of one project are not the same on the other. It is therefore imperative that the project management analyzes and deal with risk factors in the project at hand.

1.1 Aim and Objectives of the Study

This paper aims to discuss the success or failure of the case study project of house renovation. The project is happening within limited time and resources. The paper also analyses and applies the three critical elements of project management; project planning and scheduling, risk assessment and leadership and motivation.

2.0 Network Diagram with Critical Path

2.1 Definition of Critical Path

A critical path method (CPM) is defined as a predetermined sequence in which a set of activities and tasks are scheduled for the purposes of determining the maximum time required to achieve a successful project (Lockyer 1969). It helps the manager to prioritize tasks and determine and control task deadlines. The maximum time required to finish a project is known as the critical path (MacCrimmon 2016). The delay between the earliest and the latest time a task can start and conclude is known as the float time (Salmon et al. 2017).

2.2 Network Diagram and Critical Path

A network diagram and critical path of a projects help the project management team to establish the duration for the project and help in the schedule the start and end of task activities, all within the established budget (van Pinxten et al. 2018).

In our case study, we start by determining the interdependency of activities (Lock 2017). Activity A and B, in this case, are interdependent. We also have to go further and determine the activities that do not flow from any other past activity (Lock 2017). Activities C, D and G have the first act as the predecessor. The same technique is then applied to activities E, F, H, I, J, K, and L. all these activities are then added to a diagram. After the diagram, it is important to then determine the critical path of our project so as to calculate the duration of each activity and the entire project requires to conclude (Lock 2017). In our case, we have several different critical paths. After careful analysis of the critical paths in the diagrams, we settle at the lower path, critical path 2 (highlighted in Orange). According to our analysis, this critical path will require 23 days to complete the project.

The network diagram below shows the four different paths as 1. ACHEIJ (28.2 days), BDHEIJ (23.3 days) BDHFIJ (24.4 days) and BDKGIJ (26 days). We settle for critical path 2, BDHEIJ (23.3 days) as it requires the shortest time among the four paths and also right within the budget.

2.3 Advantages of Using Critical Path Analysis in A House Renovation Project

The critical path analysis (CPA) is very common and effective in a house renovation project (Lock 2016). It helps the project managers to effectively plan and coordinate project tasks, classify and prioritize project task activities, prevents delay of activities and managers are also able to appreciate interdependency among the tasks (Lock 2016).

CPA also helps the project team to understand, control and schedule start and end of project activities. It also helps the team to effectively monitor project activities, predict the date of project completion, anticipate project risks and problems and design solutions and management strategies (Lock 2016). CPA also allows the managers to plan and execute the project in the shortest time possible and within a limited budget.

2.4 Using Only Two Workers to Complete a Six-Week Project.

The maximum period of project completion given is 30 days (5 days*6 weeks). Our critical path analysis and the network diagram above shows the project can be completed in 23 days. Using two workers is therefore realistic, assuming the workers will not cause an unanticipated delay.

Applying the above critical path 2 and the network diagram, the two workers should start the project at the same time, but working on the two different activities (Activity A and B). Worker I will require 8 days to finish activity A while worker II will require 4 days to complete activity B. By the time worker I is finishing on activity A, Worker II will move to activity C four days before worker I complete activity A. Worker I will then finish with activity D (6 days) and Worker II move to activity E and then to activity G. Worker I will complete activity F and move to activity H a day before worker II moves to activity I. Worker I will then move to activity J and complete it within one day. This movement is summarized in Appendix I. The table assumes that the workers are specialized and work as individuals.

3. Risks Management

3.1 Definition of Risk Management and Risk Control

Risk management is a strategic process of identifying, analyzing and devising ways to deal with various risks of a project (Kliem and Ludin 2019). Some risks are easily noticeable while are others require a rigorous effort to identify and manage. Improper management of risks can cause the project to either cost more, delay or failure in its entirety (Hulett 2016). Risk control encompasses policies, procedures and other means employed by the risk managers towards risk reduction (Hulett 2016).

3.2 This project’s Risks and Their Management and Control

The house renovation project can be faced with five major categories of risks; plan risk, resource risk, schedule risk, maintenance risk, supply risk (Hulett 2016). These types of risks, their outcome if not managed and the risk management and control strategies are outlined in the table below

Project Risks outcome and Risk Control

3.3 Risk Score, Impact and Probability

Risk score at a project level is founded on varied contributing factors. The two most effective methods of risk analysis are risk impact and probability (Kliem and Ludin 2019). Risk impact level on a project differs from one risk to another. Some risks have a high impact on a project while others may have a low impact. Some risks are frequent while others are rate (Hulett 2016). Risk impact and probability helps a project manager to prioritize risks for effective management and control (Hulett 2016).

Various methods are used to analyze risk impact and probability, and they include qualitative analysis, sensitive analysis, expected monetary analysis and Monte Carol Simulations (Hulett 2016).  For the purpose of this paper, we will use qualitative analysis method.

3.3.1 Qualitative Analysis.

Qualitative method of risk analysis is a relatively easy one compared to others named above. It is also quick to use, saves on costs and does not need project schedule analysis (Aven 2015). The method does not provide an accurate estimate of risk but it provides an expressive result with sufficient data for the purposes of planning responses (Aven 2015).

To find out the risk score using this method, one multiplies the risk impact with risk probability (Risk Score= Impact x Probability) (Kliem and Ludin 2019). The challenge faced while dealing with this method is the difficulty in determining the rating scales for effective and timely risk management and control (Kliem and Ludin 2019). This is because some risk categories may have a higher impact than others, depending on the outcome such risks can drive in a project. For example, planning risks has a higher impact than maintenance risk in our case of the house renovation project (Hulett 2016).

The table below shows the risk analysis of our case study. It is assumed that the organization defines the risk impact as high, moderate and low. It is also assumed that the planning risk has higher probability of occurrence and when it does happen, has higher impact on the project than the other four risks (Kliem and Ludin 2019).

After obtaining the above values, below is the risk impact and probability analysis of our house renovation project.

Probability and Impact Analysis

From the above analysis, the planning and schedule risks (highlighted in red) have the highest Impact in case of risk materialization. This gives them the highest risk score as calculated by multiply probability with the highest impact.

3.4 Opportunities and Strategies

From the above analysis, one can conclude that this project has indefinite opportunities. They range from cost saving, maximization of resource use, to developing the ability to identify and manage risks using project risk response strategy (Young 2016). To exploit opportunities, managers should treat risks/threats and opportunities equally, using the below strategies (Hillson 2017).

3.5 Project Risk Management Strategies for Opportunities

Out of the four widely accepted strategies to deal with opportunities, three are applicable in our case study. These are Exploit, Accept and Enhance Strategies.

3.5.1 Exploit Strategy.

This strategy involves applying the appropriate technology to identify, analyze and take actions relating to project opportunities, by applying this strategy, the project team is able to understand the available project opportunities (Hulett 2016).

3.5.2 Share Strategy.

This strategy involves the project manager sharing the costs, resources, and knowledge relating to the project to a third party and in turn, materialize the project opportunities (Dayan, Heisig & Matos 2017). The house renovation project in our case is a small business, there is no other company involved in the project and the project team is small; only two employees. These factors factor the implementation of the share strategy.

3.5.3 Enhance Strategy.

This strategy is applied to increase the probability and reduce uncertainties and impact resulting from risk materialization (Hopkin 2018). This strategy can be applied in our case study by training the two workers and ensuring they do quality work, which is vital in our project

3.5.4 Accept Strategy.

This strategy involves a laissez-faire approach where the project managers choose to do nothing and let the project run as planned (Cagliano, Grimaldi & Rafele 2015). In applying it in our case, the project team should not change the project plan, but instead, let it run. This means that there will be no changes that would affect probability or impact in the event of risk materialization.

From our analysis above, it is evident that the four strategies are applicable in our case study. Below is a table summarizing the use of these strategies to identify project opportunities.

4. Leadership and Motivation

4.1 Leadership Overview

Leadership is an art and science of inspiring, motivating and encouraging others to work towards a certain goal or objective (Northouse 2018). In a project, leadership involves the managers encouraging and motivating other members of the project team to bring the project to a success (Muller & Turner 2017).  Good leadership is required in our present case study so as to inspire and encourage Kevin to be motivated and put more effort, so as not to interrupt the project plan.

4.2 Leadership Theories

There are different theories of leadership. These include the great man theory, trait theory, style and behavior theory, situational leadership theory and transactional and transformational leadership theories (Nawaz & Khan 2016).

4.2.1 Great Man theory.

This theory argues that leaders are born with a natural talent to lead. It is opposed to acquired leadership skills (Nawaz & Khan 2016).

4.2.2 Trait theory.

This theory opines that successful leaders have some unique appearances. To get a good leader therefore, one must be able to identify these appearance traits in a person (Nawaz & Khan 2016). This theory is mostly applied in Military.

4.2.3 Situational leadership theory,

this theory emphasizes on the need for the managers to establish a good working relationship with the employees, establish trust and fidelity to work. Once trust and commitment to the course are established, the leader can then leave the juniors to deal with their respective tasks and expect that they will put their best in it (Nawaz & Khan 2016).

4.2.4. Transactional and Transformational Leadership

A transactional leader makes sure the employee focuses on the given task and delivers it as demanded. Transformational leadership focuses on making the employee a leader on his own right so that they can drive the process and general objectives (Nawaz & Khan 2016).

In our case, the project leader has the task to acquire and direct use of resources, ensure completion of the project and more importantly, to motivate Kevin and ensure he can be able to deliver on his project responsibilities.

4.3 Motivation

Motivation is key in any work environment. For effective and timely delivery of the project within the limited budget, the employees must be motivated. Lack of communication among employees has huge adverse consequences on the quality and timely delivery of a project (Osabiya 2015).

In our case study, Kevin lacks the motivation to work as a member of the project team. Early detection of the signs of lack of motivation and effective measures to keep Kevin motivated is key, otherwise, the project will not lead to the desired completion. experts identify the type of contract, poor leadership, short-term objectives and lack of vision, lack of development opportunities, lack of workplace flexibility, conflict and unrealistic workload as some of the most common causes of lack of motivation in an employee (Tietjen & Myers 1998).

4.4 Motivation Theories

Kevin, in our case study, is presented as a demotivated employee. There can be a myriad of reasons why Kevin is demotivated. A few theories and fulfillment of some needs Kevin might have might motivate him. Some of these theories are discussed below.

4.4.1 Hertzberg’s Two-Factor Theory.

Also known as the dual-factor theory, this theory proposes a set of factors that can motivate an employ on one hand and those that can cause job dissatisfaction on the other (Miner 2015; Alshmemri, Shahwan-Akl & Maude 2017). The project leadership must, therefore, find those things that can motivate Kevin and maximize on them, while eliminated or reducing those factors that demotivate him.

4.4.2 Maslow’s Hierarchy of Needs.

According to Maslow, people strive to satisfy five categories of needs. The five needs in ascending order include psychological needs, safety, social, self-esteem, and self-actualization. These goods are ranked in a hierarchical structure. At the bottom of the triangle are basic physiological needs, which one must prioritize to satisfy before thinking about fulfilling those high in the ladder (Fallatah & Syed 2018).  In applying this theory to motivate Kevin, the manager must ensure that Kevin's immediate needs such as food, safety, and clothing are provided. The problem with applying this theory is that sometimes it is difficult to identify early signs unless the employee is open. The manager must, therefore, go out of his way and effectively apply the problem-solving techniques to understand Kevin’s problem.

4.4.3 Vrooms expectancy.

This theory suggests that management can motivate an employee by aligning its objectives and relating them to an employee's effort, performance, and outcome (Lăzăroiu, 2015). Applying this theory, the project manager can inform Kevin that if he puts more effort and energy in the renovation project, the project will be successful and he will be rewarded for it.

4.4.4 Fifty Theory.

According to Adair, who coined this theory, 50% of a person’s motivation comes from within him/her and the other 50% comes from the people around that person (Beck 2003). In our case of Kevin, the project manager needs to ensure that Kevin is doing his best to motivate himself first, then encourage the team members to motivate him. However, if this persists, the project manager needs to replace Kevin with a more self-motivated person to ensure that the project is completed on time.

4.5 Motivating Kevin

As pointed out earlier, motivated staff will translate to the successful delivery of the project objective. The vice-versa is also true. In this case study, the project manager needs to ensure that Kevin is either motivated or is replaced with a self-motivated employee.

Communication is key when dealing with Kevin’s issues. Communication will help the project leadership team to clearly understand the cause of Kevin's demotivated state, which might be due to his short-term contract, salary and abuse by the team among others. When this is understood, the management can then execute a plan to motivate him. This plan may involve elements such as helping Kevin to set project tasks goals, prioritize them and meet their deadlines.

Building a Good relationship between Kevin and his co-workers is crucial. With this good relationship, Kevin is able to collaborate with other employees, work together and lead to timely delivery of quality work within the limited budget.

In my opinion, Vroom’s expectancy theory is the best option the management has to motivate Kevin. This is because the management can influence Kevin’s motivation by encouraging him to put more effort, deliver on the tasks and he will be rewarded. This way, Kevin has a tangible thing (reward) to work towards as opposed to the intrinsic value of the success of the project.

Conclusion

 The objective of this paper was to analyze the case study of the house renovation project, applying the knowledge acquired in the project management course. Through critical path analysis method, this paper has determined that the project can be completed earlier (23 days) than the stipulated time (30 days). This is based on worker mobility as outlined in this paper. The paper also discussed potential risks facing this project. Using the qualitative risk analysis method, different risks were analyzed and planning risk was seen to have the highest risk score. The paper recommended strategies to deal with risks and project opportunism. Finally, the element of leadership and staff motivation was discussed, with reference to Kevin. The importance of having a motivated staff and the ways to help motivate staff members were discussed.

The project manager’s need to practice all the project management leadership, skills and motivation theories in general as well and critically evaluating the use of project management techniques learned in leading, planning, controlling and process management to ensuring a successful project was also discussed.

Appendices

Appendix 1: Worker I and Worker II Working On The 6-Week House Renovation Project

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