Essay: Behavior Of Internal Stakeholders In Large Asset Project Management.

Project Justification Process

Discuss about the Behavior of Internal Stakeholders Management.

Project is defined as the proper collaborating enterprises or various individuals that are solely involved with the research and design, planned by the particular project team for achieving a specific target and objective. This project is the proper set of various inter linked tasks that are to be completed in a given fixed time and within the previously decided costs or constraints (Reiss, 2013). Project is the temporary social system that works as the work system, which is being constituted by the project team or any particular organization within various time constraints. It is the part of any wide program management. The large assets project subsequently refers to this fact that the assets or huge capital are being included in the project.

The AS 4120-1994 or Australian Standard Code of Tendering, section 6.1.1 states that the initiation of a particular tender procedure is nothing but the perfect development of project definition and scope, which could perfectly set the success for the entire process. Project briefing can be prepared to perfectly define the scope of project. The several tender documents are being prepared for these respective reasons (Schwalbe, 2015). All the requirements like goals, objectives, completion dates, performance and many more are documented within the project document. The various project constraints are also provided here.

The project justification is the most significant factor that is present within a project. The project justification should be checked properly with this tender request. This project justification can be defined as the particular attempt that helps in explaining the cause that if any organization would need proper implementation of the problem identified (Martinelli & Milosevic, 2016). It is the simple process that initiates with the project initiation stage and hence confirming the entire requirement of project launch. These requirements should properly implement the solution. The large assets project could be justified by providing all the stakeholders with proper analysis and investigation regarding the changes and alterations in project environment (Too & Weaver, 2014). Project justification can also be defined as the completion of project analysis and the perfect interpretation and evaluation of the desired outcome of this project. The respective nine steps for project justification are given below:

Environment Analysis: The most significant step in a project justification is the environment analysis. A project initiator is responsible to justify the specific project plan properly and hence all the factors related to environment should be checked by him (Martinsuo, 2013). The project could be made successful with this proper environment analysis.

Explanation of Financing of the Project

Proposal for Solution: The second step in this process of project justification is proposal for solution. The project initiator uses all the outcomes of environmental analysis to determine each and every area, requiring improvement (Turner, 2016). This subsequently refers to the generation of a specific solution, which has the capacity to solve the present issues and also to address the possibilities in future. The proposal for solution is the particular attempt for proposing changes within current environment.

Alternatives Analysis: The next step is the alternatives analysis. All the possible alternatives are being analyzed. This is done for solving the respective problem perfectly. Project initiator can easily review every possible alternative for the proposed solution and thus providing the substantiation of perfectness within the chosen solution.

Analysis of Impact: The next step is the analysis of impact (Mir & Pinnington, 2014). Significant impacts are being checked within this procedure.

CBA: Cost benefit analysis is again one of the major steps for project justification. The perfect ratio within cost and benefit amongst the alternatives is being checked and analyzed by this.

Analysis of Finances: The project justification even should analyze the finances of the project (Fleming & Koppelman, 2016). It is considered as the most important step in the selected project.

Analysis of Risk: The next important and vital step for the project justification is risks analysis. The proper assessment various threats and uncertainties is done by this step.

The initiator of project makes the report of management summary for each analysis to interpret this project for making it more successful (Bell, 2014).

Project Validation: The ninth step in project justification is validation. Various actions and activities are needed in this sector.

The next important factor within the tender request for large assets project is the proper financing of project. This can be defined as the long term financing for all the industrial projects or infrastructure, which could be based over the respective cash flows that are being projected (Beringer, Jonas & Kock, 2013). The financing structure of the project involves the various equity investors. All of these investors are called sponsors. This project finance can be defined as the perfect financing of any long term infrastructure, industrial project as well as public service that is on the basis of the structure of limited recourse finance. The debt and equity are eventually paid off by the cash flow of project. This is used to finance the project. It is the type of loan structure that properly relies on project cash flow to repay all the larger assets on the project cash flow. The rights as well as interests of this project are being checked within the process (Kerzner, 2018). The financing of project is extremely attractive to all the larger assets of project.

Project Success Factors

Project success solely relies on several factors such as project team, project conditions as well as project procedures. The large assets of the project must comprise of the proper recognition of every project condition, team of project and the processes of project. The several conditions of any larger assets project are as follows:

Project Planning and Review: The project should be properly planned as well as reviewed in the process (MacWhinney, 2014). This would ensure perfectness within the project.

Team of the project can be defined as the specific group of people, who are the parts of this project. All the shareholders, project initiator, labours, clients, project manager and several other people are associated with this project team.

The fifth factor within the tender request is the proper or expected estimation for the tender for any project labours, plants, various materials as well as sub contractors.

Project Labour: The cost of human effort expended towards project objectives.

Plants: The cost of buying and maintaining plants used in project work (MacWhinney, 2014).

Various Materials: The total expenses of the various resources that are needed to create the respective products.

Sub Contractors: The total expenses of external work and resources that the specific organization is seeking for the given project.

Change in the project is the most vital requirement, which is often demanded by several clients. The most significant requirements for the changes in the project are as follows:

The first and the foremost requirement within the change in project is the perfect determination of the scope for this change (Heagney, 2016). The change that is demanded by the clients is often not possible for the project manager or project initiator. Hence, it is to be checked properly in this process.

The second important requirement for the change in project is the perfect determination of the scope for incorporating the project changes. If the changes within the project are not identified properly, it is evident that the project might be a major failure. Hence, scope should be checked.

The third significant requirement for the change in project is gaining proper approval or rejection for the project change in this project.

The fourth vital requirement for the change in project is the perfect communication or implementation of the approved request for changing (Kerzner & Kerzner, 2017). If this approval is not obtained, the project should not be implemented.

There are some of the major requirements for QA or quality assurance as well as QC or quality control in the project. They are given below:

Providing Requirements for Project Change

Being Accurate: The first and the foremost requirement for quality assurance and quality control is that the project must be correct as well as accurate (Burke, 2013).

Lack of Unambiguity: The lacking of unambiguity is another requirement for QA and QC.

Project Being Complete: The third requirement is that the project should be completed properly.

Consistent Enough: Moreover, the project must be perfectly consistent and should have consistency.

Can be Modified: Another important requirement is that it could be modified or changed as required (Turner, 2016).

There are some of the major requirements for document management, reporting as well as governance within the project. They are given below:

Minimization of Errors: The errors in documents should be minimized or reduced to a greater extent.

Ensuring the Periodical Submission of Documents: The periodical submission of the documents should be ensured and this is another important requirement.

Easy Retrieval of Documents: The third important requirement is the easier retrieval of various documents (Too & Weaver, 2014).

Application of Rules: The fourth requirement is the proper application of several rules or regulations.

All of these requirements are mandatory within the project.

There are some of the major requirements for disputes, arbitration as well as mediation in the project (Reiss, 2013). They are given below:

Not Meeting Deadline of Project: The first requirement is the not meeting of project deadline. This can result in disputes or arbitration.

Not Fulfilling the Requirements: If the project requirements are not fulfilled, it can also result in project disputes or project arbitration.

Not Maintaining Rules: Moreover, project rules should be maintained and this would stop the dispute cases.

There are some of the major requirements for safety within the project (Schwalbe, 2015). They are given below:

Fire Extinguishers: Fire extinguishers should be present within the project site for avoiding any type of risk.

Face Shields: The workers should use face shield for working in construction sites.

THA: The task hazard analysis must be performed for any construction site (Martinsuo, 2013).

Permission for Hot Work: The project manager should acquire proper permission for the hot work.

References

Bell, J. (2014). Doing Your Research Project: A guide for first-time researchers. McGraw-Hill Education (UK).

Beringer, C., Jonas, D., & Kock, A. (2013). Behavior of internal stakeholders in project portfolio management and its impact on success. International Journal of Project Management, 31(6), 830-846.

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.

Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management. Project Management Institute.

Heagney, J. (2016). Fundamentals of project management. AMACOM Div American Mgmt Assn.

Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Leach, L. P. (2014). Critical chain project management. Artech House.

MacWhinney, B. (2014). The CHILDES project: Tools for analyzing talk, Volume II: The database. Psychology Press.

Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Martinsuo, M. (2013). Project portfolio management in practice and in context. International Journal of Project Management, 31(6), 794-803.

Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), 202-217.

Reiss, G. (2013). Project management demystified: Today's tools and techniques. Routledge.

Schwalbe, K. (2015). Information technology project management. Cengage Learning.

Too, E. G., & Weaver, P. (2014). The management of project management: A conceptual framework for project governance. International Journal of Project Management, 32(8), 1382-1394.

Turner, R. (2016). Gower handbook of project management. Routledge.