Project Management Assignment Evaluating Case of Max Lionel Realty

Question

Task

Max Lionel Realty

Max Lionel Realty (MLR), in order to build customer goodwill and satisfy its legal and ethical obligations, has decided to implement a program to:

• inform agents of legal and ethical obligations (particularly with respect to WHS and anti-discrimination legislation) and any standards or codes of conduct followed by the organisation
• promote high standards in professional conduct (see Real Estate Institute of Victoria (REIV) Code of Conduct and relevant legislation)
• inform clients, tenants and potential tenants of MLR’s commitments
• achieve employee and client buy-in for initiative

You are an external consultant (from Ace Consultants) contracted to project manage activities to achieve the objectives above.

Quality standards for deliverables:

• clearly communicate legal obligations and REIV obligations
• contain as content or support company strategic directions
• no grammar or spelling errors
• professional but friendly language
• fair and flexible delivery for intended audience
• meet audience requirements and sensitive to information needs, cultural diversity.

Previous needs analysis for the project has uncovered characteristics and requirements of Residential and Commercial Agents and Clients:

Project conditions are as follows:

• Six to eight team members who must be utilised and budgeted for. Operations General Manager (the assessor) may be consulted with to determine composition of project team.
• The structure of the work should include roles for project sponsor, technical experts, quality assurance of deliverables, project manager (yourself) and roles and responsibilities for each team member to achieve the deliverables according to standards, etc.
• All resources must be costed and included in your budget.
• Budget: $15,000.
• You may determine your own specific deliverables so long as they are agreed with stakeholders (the assessor at this stage), meet project objectives, and adhere to budgetary constraints.
• Project timeframe to be determined by Operations General Manager (the assessor).
• Project should include design, development, implementation and evaluation stages (with periodic quality review).
• Project status reports are due at 25%, 50% and 75% of allotted timeframe.

Project Management Assignment Tasks

Task 1: Determine procurement requirements

1.1. Describe how you would approach identifying your procurement items for the procurement register.

1.2. Provide a procurement management plan using the template below.

Task 2: Establish agreed procurement processes

For one of the items in the procurement register you now need to conduct the procurement. This will involve specifying supplier communications, selection and contracting.

2.1. You need to provide information to your potential suppliers in order to go through a selection process. Write a summary of the terms and conditions of the request to the potential suppliers outlining:

• Specifications to ensure clarity of requirements
• The selection process
• The selection criteria

Task 3: Conduct procurement activities

3.1. Describe your governance constraints for procurement. This may include ethical behaviours, limits of authority, organisational policy and procedures, prescribed decision escalation and contract types.

3.2.Show how you evaluated the supplier responses and selected a vendor based on the selection criteria. This requires a detailed answer ranking the vendors against the criteria and justifying choice. Vendor ranking can be submitted in a table format.

3.3.List and briefly describe the major components of the terms and conditions of the contract you used to procure goods or services for your project?

Task 4: Implement and monitor procurement

4.1.During project execution describe a variation that may have taken place on the procurement of a good or service. How did you resolve this to ensure timely completion of tasks, resolution of conflict within the contracted requirements?

4.2. Describe an issue with a specific procurement – how was this resolved?

4.3.What was the impact of the issue above to project timeframes, costs and contracts?

Task 5: Manage procurement finalisation procedures

5.1. Describe in detail completion activities you would need to undertake at the end of the project to ensure vendor deliverables meet contracted requirements.

5.2.Review your project performance in terms of procurement. Would your procurement activities be considered effective? Why/why not?

5.3. List all procurement management issues you may have experienced on the project (in the table below) including a recommendation for future projects.

Answer

Project Management Assignment Company Review
Max Lionel Realty have decided to implement programs for building its customer goodwill while also satisfying the legal and ethical obligations. Thus, Max Lionel Realty will promote high standards in professional conduct and standards of codes of conduct that should be followed by the company employees and managers.

Task 1: Determine Procurement requirements

1.1 Describing Procurement Items
To determine the procurement requirement, it is essential for Max Lionel Realty (MLR) considering and reviewing a range of documents. The documents include

Organization Policies and Procedures – This defines the restrictions of who can purchase and in what quantities. It also states the need for approvals (responsible department or designatory) and documents that specify procure methodsin Max Lionel Realty

Project Scope Statement- This helps in providing clarity about the expectations of the clients. This will also outline project outcomes and constraints that influence procurement procedures in Max Lionel Realty.

Activity Resources Estimates- This will help in assisting the planning for ordering the required quantity.

Project Scheduling and Work Break Down Structure: It is essential for procuring products and services on a timely basis.

Risk Register: The risks register assists in the detection of issues that are essential in the procurement.

1.2 Provide a procurement management plan using the templatebelow.

Communication of procurement arrangements
Communication is one of the crucial factors amongst the buyer and seller in contact management. Open communication must be made involving aspects like formal, informal, written, or spoken communication patterns. In this view, procurement details will be shared through spreadsheets that can be edited by both the parties. Hence, clarity will be maintained as both parties will possess the same insights and information. The sourcing, contact will also done be through emails and telecommunications.

Procurement processes for obtaining products and services including roles and responsibilities

Procurement processes for monitoring procurement

Monitoring Procurement Process

The risk or procurement fraud should be recorded in the risk register of Max LionelRealty.

The project manager shall contain overall responsibility.

It should be ensured that agents and managers are efficiently trained in detecting procurement fraud in Max Lionel Realty

If a staff member is transferred to another department, all authorities and permissions should be denied.

A Three-way match should be maintained while the procurement process should also be enforced in Max Lionel Realty

The technical expert should ensure the addition or deletion of a supplier from the approved list of suppliers.

During auditing, the managers and the agents should be able to identify subcontractors.

The Quality Assurance officer and project manager should verify the evidence related to splitting orders.

Task 2: Establish agreed procurement processes

2.1 Terms of conditions
Specifications for ensuring clarity of requirements- The manufactured sand is one of the substitutes of river sand utilized in the construction industry.

The properties of required sand

Shape – Cubical

Gradation – Should be controlled

Particle Passing 75 micron

Impurities – Should be absent

Grading Zone- 11

Specific Gravity – 2.5-2.9

Water Absorption –2.4%

Soundness – Relatively Sound

Alkali-Silica Reactivity -0.001.-0.008

The Selection Process-

The selection process of procuring sand will be dependent on

Needs recognition

Purchase requisition

Reviewing of request

Budgeting and Approvals

Requests for quotations

Negotiation &Contract

Receiving Goods and services

Three-Way Matching procedures

Interested Suppliers should seal their quotes in a document and present it to the company within one week.

The Selection Criteria-

The sand particles should have high crushing capabilities

The surface Structure of the sand should be smooth

Edges of sand particles to be grounded

600 microns in the sand should not be more than 30%

Silt in the sand should less than 2%

The permissible Limit should be less than 75 microns thus not exceeding 15%.

Local companies and suppliers should provide a proper quote

Task 3: Conduct procurement activities

3.1 Governance Constraints
Ethical Behaviours

The ethical governance behaviour helps in governing the conduct of activities related to procurement. Employees that are responsible (Project manager in this case) for the procurement of goods and services should comply with integrity, professional conduct, and ethical behavioral patterns. Directors and Employees should not seek to benefit from supplier practices that might be dishonest.

Limits of Authority

In this view, CEO and director contain highest level of authority while agents and contractors have low or no authorities for Max Lionel Realty.

Contract types include Fixed- Price Contract& Cost reimbursable contract

Organization Policies and Procedures – This defines the restrictions of who can purchase and in what quantities. It also states the need for approvals (responsible department or designatory) and documents that specify procure methods.

Decision making in this company is always made by the operational general manager. The project manager drafts the operational conducts and it is approved by the operational general manager. Team members of eight persons have been constructed for checking and verifying each process of the procurement process.

3.2 Selection Criteria

3.3 Components of Terms and Conditions
The deliveries of the items should be done at the time, place, and the procedure described in the purchasing order.

The supplies should be of the high-quality standard with the best of the capabilities and skills of the suppliers.

There shall not be any inconsistency amongst the purchasing order and terms and conditions.

Task 4: Implement and monitor procurement

4.1 Variations and resolutions
During the purchase order, specifications of the sand quality, and the required amount was given to the suppliers. However, the staff working under the supplier provided us wrong sand quality in huge amounts, after stipulated reminders were given. The project had already started with preferred sand quality;thus, the raw materials could be changed as it would impact the end- product and increase the cost. The project was delayed as the wrong sand quality was provided after several reminders were given to the suppliers.

All the suppliers and team members are collected and the meeting was conducted reminding everyone about cost constraints and completion of daily and monthly targets for achieving the overall outcome within the stipulated timeframe. The suppliers were strictly warned that the raw materials and required should be reminded several times. It was also suggested that orders that are given prior should be placed unless changes are communicated.

4.2 Issues in specific procurement
Another event occurred when suppliers had to deliver sand of varying quality and different amounts to several to three construction sites. In this case, the supplier provided the right sand quality and amount to only one site. The other sites had received wrong product qualities and quantities.

The managers and suppliers collaborated and arranged segregated raw materials according to site requirements. The driver was verified with quantity and located; this is how issues were resolved on time.

4.3 Impact of the Issues
The impacts of the issues that occurred during the project delayed the targets and completion of the project. Additional costs had to be incurred by the suppliers and company due to misunderstandings. It was suggested to the suppliers that action should always be made before sending the raw materials. Also, the supplier should plan the supply ahead of time so that if any issue occurs, it can be solved within time without impacting the completion of the project.

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

Nicholas, J.M., and Steyn, H., 2017. Project management for engineering, business, and technology. Taylor & Francis.

Telgen, J., Harland, C., and Knight, L., 2012. Public procurement in perspective. Project management assignment Public procurement (pp. 44-52). Routledge.

Thai, K.V., 2017. International public procurement: Concepts and practices. In International handbook of public procurement (pp. 33-56). Routledge.