This document provides a project management plan for developing a strategy to secure supply chains and raw materials for producing biofuels. The plan outlines the project scope, integration, time, cost, quality, human resources, communication, risk and procurement management approaches. The project aims to identify raw material sources, logistics, suppliers and ensure ongoing supply for biofuel production. The plan establishes processes for work authorization, change requests, and integrated change control. The performance standard is high given the importance of a sustainable supply chain, and risks include issues with staffing, IT systems and management support.

1. BUSN7024 Project Management Basics
Semester 2, 2008 – Major Assignment
Project Management Plan
Supply Chain Management
Sorabh Jain u4281996,
Kenny Kuo u4495139,
Petrus Ralda u4477079,
Jarrod Wood u4505588,
Word Count: 9,432 (excluding tables, frameworks and references)

2. Team Number: Three
By signing on Table 1 each member acknowledges his or her agreement with the
stated contribution to the overall assignment made by each team member.
Name Student No Contribution Signature
Sorabh Jain, u4281996 B
Kenny Kuo u4495139 A
Petrus Ralda u4477079 A
Jarrod Wood u4505588 A
Table 1: Membership and Individual Contribution.
Use the following convention to state each member contribution to the total effort
• A = very good contribution, the team member went above the expected
participation level.
• B = good contribution, the member participated as expected and was diligent
in performing the assigned tasks.
• C = less than satisfactory contribution, the member participation and
contribution was less than the average for the team.
• D = the member had minimal participation on the team effort, shown lack of
commitment to the team and significantly increased other members’
workload.
• E = the team member did not contribute at all to the team.
The team shall discuss and agree on the contribution level for each team member.
Your signature on Table 1 indicates your agreement with the assessment of
contribution. A lack of signature will indicate dissatisfaction with the attribution.
Please note, if half or less than half of the team sign the contribution assessment, a
penalty of 5% will apply to the assignment’s mark.
To encourage the teams to strive to perform as a team, penalties will be assigned to
students that perform below the minimum expected level (see Table 2).
Individual contribution to the team’s effort. Penalty to be applied to the assignment’s
mark for the particular student
A 0%
B. 0%
C 15%
D 50%
E 100%
Table 2: Human Resources Mismanagement Penalties.
This page is confidential and will NOT be seen by the class. The lecturer will
delete this page before releasing the document for class access on the web site.>

3. Acknowledgment
Walter Fernandez is grateful to the author of this template,
David Tuffley, who generously allowed him to modify the
template and to use it at ANU.
Plagiarism
✍ Plagiarism will not be tolerated. It is the responsibility of
the team to ensure that proper citation and quotation
conventions are followed. Failure to observe this rule will
result in a zero mark for the entire assignment, regardless
of the magnitude of the infringement. Further action(s)
might be considered on a case-by-case basis.
i of v

4. Contents
Contents..................................................................................................ii
1. Executive Summary............................................................................1
2. Project Introduction ...........................................................................3
3. Project Integration Management.......................................................4
3.1. Project Plan Development.................................................4
3.2. Project Plan Execution.....................................................4
3.2.1. Work Authorisation and Status Reviews........................................4
3.2.2. Change Requests..........................................................................5
3.3. Integrated Change Control...............................................5
4. Project Scope Management...............................................................6
4.1. Initiation.............................................................................6
4.1.1. Product Description .......................................................................6
4.1.2. Strategic Plan.................................................................................6
4.1.3. Project Selection Criteria ...............................................................7
4.2. Scope Planning................................................................7
4.2.1. Product Description........................................................................7
4.2.2. Project Charter...............................................................................7
4.3. Scope Definition................................................................8
4.3.1. Scope Statement............................................................................8
4.3.2. Work Breakdown Structure (WBS)................................................8
4.4. Scope Verification.............................................................8
4.4.1. Critical Success Factors.................................................................8
4.4.2. Evaluation Measures......................................................................9
4.5. Scope Change Control......................................................9
4.5.1. Scope Changes..............................................................................9
4.5.2. Corrective Action............................................................................9
4.5.3. Lessons Learnt.............................................................................10
5. Project Time Management................................................................11
5.1. Activity Definition.............................................................11
5.1.1. Activity List...................................................................................11
5.2. Activity Sequencing........................................................15
5.3. Activity Duration Estimating.............................................17
5.3.1. Basis of Estimates........................................................................17
5.4. Schedule Development...................................................18
5.4.1. Project Schedule..........................................................................18
5.4.2. Schedule Management Plan........................................................18
5.4.3. Resource Requirement Update....................................................18
5.4.4. Constraints and Assumptions.......................................................18
ii of v

5. 5.5. Schedule Control.............................................................19
5.5.1. Schedule Updates .......................................................................19
5.5.2. Corrective Actions........................................................................19
6. Project Cost Management................................................................20
6.1. Resource Planning..........................................................20
6.1.1. Resource Requirements Planning................................................21
6.2. Cost Estimating..............................................................23
6.2.1. Cost Management Plan................................................................23
6.3. Cost Budgeting................................................................23
6.3.1. Project Budget .............................................................................24
6.4. Project Schedule and Risk Management Plan................25
6.5. Cost Control....................................................................25
7. Project Quality Management............................................................27
7.1. Quality Planning..............................................................27
Framework 2: Quality Statements and Policies.....................28
7.1.1. Quality Management Plan............................................................28
7.2. Quality Assurance...........................................................30
7.3. Quality Control................................................................30
7.4.1 Rework 36
7.4.2 Customer Dissatisfaction ..............................................................37
7.4.3 Missed project expectations .........................................................37
7.4.4 Poor utilisation of resources .........................................................37
8. Project Human Resource Management..........................................39
8.1. Organizational Planning..................................................39
8.1.1. Project Interface...........................................................................39
8.1.2. Staff Requirements......................................................................39
8.1.3. Roles and Responsibilities Assignments .....................................40
8.1.4. Staffing Management Plan...........................................................40
8.1.5. Organisational Chart....................................................................42
..............................................................................................42
8.2. Staff Acquisition..............................................................42
8.2.1. Staffing Pool Description..............................................................42
8.2.2. Recruitment Practices..................................................................43
8.2.3. Project Staff Assigned .................................................................43
8.2.4. Project Team Directory.................................................................43
Name 43
Role 43
Functional area.....................................................................................43
Phone 43
Mobile Ph 43
Fax 43
Email 43
8.3. Team Development.........................................................44
8.3.1. External Feedback.......................................................................44
The Project Manager is to evaluate the team’s performance
informally as required and formally every quarter or on
completion of the allotted task for the project. Categories for
iii of v

6. the assessment criteria include: budget/cost consumed during
the project lifecycle versus forecast, each member’s output
with regard to the overall project schedule and the required
quality. After internal assessment within the project team, PM
is to seek senior management/director for feedback on if the
expectations have been met. Expectations of any
stakeholders and customer satisfaction must be achieved. ..44
8.3.2. Performance Improvements.........................................................44
8.3.3. Input to Performance Appraisals..................................................44
9. Project Communication Management.............................................46
9.1. Communications Planning...............................................46
9.1.1. Communications Methodology.....................................................47
Bottom-Up (vertical) .............................................................................48
Middle-Out (horizontal) .........................................................................48
9.2. Stakeholders .................................................................48
9.2.1. Communications Management Plan............................................49
9.3. Information Distribution...................................................54
9.4. Performance Reporting...................................................54
9.4.1. Change Communications Process...............................................55
9.5. Administrative Closure....................................................58
10. Project Risk Management..............................................................60
10.1. Risk Management Planning..........................................60
10.1.1. Organisational Risk Management Policies ................................60
10.1.2. Roles and Responsibilities ........................................................60
Table12: Roles and Responsibilities of project team ...........................60
10.1.3. Stakeholder Risk Tolerances.....................................................61
10.1.4. Risk Management Plan.............................................................61
10.2. Risk Identification ........................................................62
10.2.1. Risk Categories..........................................................................62
10.2.2. Project Risks .............................................................................63
10.3. Risk Response Planning..............................................65
10.4. Risk Monitoring and Control.........................................66
10.4.1. Workaround plans......................................................................66
10.4.2. Risk Database............................................................................67
11. Project Procurement Management................................................68
11.1. Procurement Planning...................................................68
11.2. Solicitation Planning ....................................................69
11.3. Solicitation.....................................................................70
11.4. Source Selection...........................................................70
11.5. Contract Administration.................................................70
11.6. Contract Closeout.........................................................71
Once the contract is complete, the suppliers will send a written letter to
the organisation that the contract is complete. And if the organisation
wants to renew it the PM will have the power to renew it.......................71
The PM will have the power to terminate the contract in between if the
suppliers are not fulfilling the evaluation process. And another supplier
will be given contact...............................................................................71
iv of v

7. 12. Conclusion.......................................................................................72
13. Appendix 1.......................................................................................73
14. References.......................................................................................74
v of v

8. Tables
Table 1: Activity List …………………………………………………………………………11
Table 1: Membership and Individual Contribution..............................b
Table 2: Human Resources Mismanagement Penalties.....................b
Frameworks
Framework 1: Activity Sequencing Network..........................................................................16
Framework 2: Quality Statements and Policies......................................................................29
Framework 3: Quality Management Implementation Plan...................................................31
Framework 4: Quality Control Process...................................................................................37
Framework 5: Channels and Structure of Communication...................................................49
Framework 6: Change Management Communication Process.............................................56
Graphs
Graph 1: Four Histograms Showing Hours of Work for Project Team Members..............43
vi of v

9. 1. Executive Summary
This project plan has been developed to address the
development of a strategy to secure the supply chains and raw
materials required for the production of Bio fuels for the
aviation and military aviation industries. This relates to the
information systems, commercialisation, business processes and
real-time monitoring systems projects within the broader Bio-
Solar program.
The supply chain of manufacturing firms is a systematic network
of suppliers, factories, warehouses, distribution centres and
retailers through which raw materials are acquired, transformed
and delivered to customers. This project has been selected
because it is an integral part of the overall program, for the
company to enter the bio fuel market. The scope of the project is
to develop a strategy to identify raw materials, logistics,
suppliers and ongoing security of these for the production of bio
fuels. The business need addressed by the strategy is to facilitate
and support the production process by ensuring ongoing supply
of raw materials to be used in the production process, once this
is established. This is important to the business because without
a strategy to secure these supplies the business may falter before
it has had a chance to properly establish.
This project strategy sets out the requirements relating to
scheduling, budgeting, accuracy, human resources,
communication, risks and procurement to develop the strategic
plan to how to acquire the relevant resources. This project is
congruent with the strategic plan and long-term objectives of the
organisation. This is reflected particularly strongly by the will to
enter the bio fuel production markets The product to be
produced at the end of this project is a strategy that will ensure
the security of the raw materials and supply chains required to
produce bio fuels for the aviation and military aviation
industries.
This project has a budget of AUSD350,468.00, and is estimated
to take a total of seventy eight (78) days to complete. The
performance standard to be met is high, given the importance of
establishing a strong and sustainable supply chain. This will be
subject to approval by the Program Director and relevant
stakeholders; hence they hold the performance assessment
delegation.
Page 1

10. The major risks to this project are related to internal measures
within the project manager’s control. These include: lack of
adequate staffing, IT failures, lack of resources related to the
ongoing support of senior management and the lag times
associated with these issues.
Page 2

11. 2. Project Introduction
The supply chain of manufacturing firms is a systematic network
of suppliers, factories, warehouses, distribution centres and
retailers through which raw materials are acquired, transformed
and delivered to customers. In order to optimise performance,
supply chain functions must operate in a coordinated manner
(Infosys Technologies 2008). Raw material acquisition, logistics,
transportation and resource management, scheduling and
dispatching are some of the key functions of the bio-fuel
production supply chain. The effectiveness with which the
supply chain is managed at the tactical and operational levels
enables timely dissemination of information, accurate
coordination of decisions and management of actions among
people and systems (Production Planning Inc. 2008).
This project plan sets out the requirements relating to
scheduling, budgeting, accuracy, human resources,
communication, risks and procurement to develop the strategic
plan to acquire the relevant resources. The goal of the strategic
plan is to organise the supply chain as a network of cooperating,
intelligent agents, each performing one or more supply chain
functions, and each coordinating their actions with a central
coordination office. Our focus is in planning the development of
this strategy to ensure the construction of intelligent supply
chain systems in a manner that guarantees that agents use the
best communication, coordination and problem solving
mechanisms available, with minimal programming effort
(Infosys Technologies 2008). The strategy should be mindful
of the changing dynamics of the contemporary business culture
and constant volatility in the political, legal, technological,
social, and economic environments.
The project plan will enable the executors to setup appropriate
supply chains in the uncertain environments outlined above.
Page 3

12. 3. Project Integration Management
This section details the processes to be used for integration of
change into the project. It coordinates the various elements of
the project as well as making trade-offs among competing
objectives and alternatives to meet or exceed the stakeholder’s
needs and expectations.
3.1. Project Plan Development
The project plan that follows has been created so as all parts that
overlap are consistent with each other. This is to ensure that
there are no issues of contention for the project manager or the
project officers.
The project plan includes the following subsidiary plans and
documents:
• Project Charter
• Product Description
• Scope Statement
• WBS
• Project Time Management Plan – Milestones
• Project Cost Management Plan – Estimates
• Project Quality Management Plan
• Project HR Plan – Key Staff Expected Costs and Efforts
• Project Communication Plan
• Project Risk Management Plan
• Project Procurement Plan
3.2. Project Plan Execution
3.2.1. Work Authorisation and Status Reviews
The project will require work orders to be created by the project
manager. There will be no other authority that can endorse the
commencement of work. This is because the Project Manager is
the one in on the status review meetings and as such will know
best about the timings for start and finish dates. These orders
can only be endorsed in writing from the project manager and
must be signed by that person, unless sent via email.
Page 4

13. 3.2.2. Change Requests
For any change requests impacting on this project, a formal
submission of a Change Request Form is required. This must
include strong justification and rationale for the change. This
must be submitted to and approved by the project and program
managers. Both project and program managers will reserve the
right to contest the change based on practicalities and delays
caused, costs incurred and quality effects.
Once approved, the requested changes will be integrated in to
the project plan, which will be disseminated to each stakeholder,
including the effects on costs, timeliness and quality.
3.3. Integrated Change Control
When a change request is lodged relating to any of the nine
components of this project plan, senior management, the project
and program managers must consider the changes to the scope;
schedule; cost; quality/performance; risk and contract
administration. This is to ensure the changes in one area are
replicated across the whole project. To ensure documentation of
corporate learning from this project, a “lessons learned” paper
will be completed at the conclusion of the execution phase of
this project.
Page 5

14. 4. Project Scope Management
The scope of this project has been detailed below and broken
into the following areas: initiation; planning; definition;
verification and change control.
4.1. Initiation
The project has been authorised by Dr Walter Fernandez as part
of the bio fuel solar energy program. It was authorised because
it has been identified as a significant business need for the
company as it enters the new market of bio fuel production for
the aviation and military aviation industries. The business need
that this project has been developed to address is the
development of a strategy to secure the supply chains and raw
materials required for the production of Bio fuels. This is
important to the business because without a strategy to secure
these supplies the business may falter before it has had a chance
to properly establish.
This is the plan for the initial planning phase of the project, it is
anticipated that once the project enters execution phase a new or
modified plan will be established updating the various changing
criterion.
The main purpose of the project is to develop a strategic plan
that will identify and secure the raw materials required for bio
fuel production in the aviation and military aviation industries.
4.1.1. Product Description
The product to be produced at the end of this project is a
strategy that will ensure the security of the raw materials and
supply chains required to produce bio fuels for the aviation and
military aviation industries. This strategy will be actionable and
simple to avoid any confusion for those that will implement the
strategy.
4.1.2. Strategic Plan
This project is congruent with the strategic plan and long-term
objectives of the organisation. This is reflected particularly
strongly by the will to enter the bio fuel production markets.
Page 6

15. 4.1.3. Project Selection Criteria
This project has been selected because it is an integral part of the
overall program, for the company to enter the bio fuel market.
This will contribute to a growth in market share and also assists
the company with public perception issues such as assisting to
decrease the reliance on fossil fuels.
The product of this project is a strategy that will seek to identify
the appropriate suppliers and therefore will lower costs and
ensures that the production process is adequately supplied with
raw materials.
4.2. Scope Planning
4.2.1. Product Description
For a description of the product of this plan, please refer to topic
4.1.1.
4.2.2. Project Charter
The business need:
The business need that this project has been developed to address is the development
of a strategy to secure the supply chains and raw materials required for the production
of Bio fuels. This is important to the business because without a strategy to secure
these supplies the business may falter before it has had a chance to properly establish.
Product Description:
The product to be produced at the end of this project is a strategy that will ensure the
security of the raw materials and supply chains required to produce the bio fuels. This
strategy will be actionable and simple enough to avoid any confusion for those that will
implement the strategy.
Project Manager:
The project manager for this project is to be Petrus Ralda. Petrus will have the full
authority over the budget and resources allocated to this project. No further seeking of
resources will be accepted unless it is presented by Petrus.
Constraints:
• Budgets and time
• Limited availability of suitable Human Resources
Assumptions:
It is assumed that:
Page 7

16. • There will be constant easy access to the Program Director;
• The sponsor will continue to be supportive of the project;
• Bio fuel will not be superseded by another type of technology before production
begins;
• The strategy document will not be required before the current due date;
4.3. Scope Definition
4.3.1. Scope Statement
The scope of the project is to develop a strategy to identify raw
materials, logistics, suppliers and ongoing security of these for
the production of bio fuels required to enter the commercial and
military aviation industries. The business need addressed by the
strategy is to facilitate and support the production process by
ensuring ongoing supply of raw materials to be used in the
production process, once established.
4.3.2. Work Breakdown Structure (WBS)
Below is the Level 1 WBS, a level 2 version can be found in
Appendix 1.
4.4. Scope Verification
This section seeks to identify the critical success factors and
evaluation of those factors upon delivery of the strategic plan to
the stakeholders.
4.4.1. Critical Success Factors
There are a number of critical success factors that will mean the
project has been successfully completed. They are as follows:
1. The strategy addresses all aspects of the scope,
including raw materials required for aviation fuel
production, identification of suitable suppliers and
logistics for transporting raw materials;
2. The strategy is timely;
3. The strategy is easily implemented; and
Page 8

17. 4. The strategy is well written and easily understood.
4.4.2. Evaluation Measures
There is only one way that the stakeholders and customers can
check the quality of this strategy and that is by reviewing it prior
to approving expenditure.
As a result, the strategy will be delivered to the stakeholders
once it has been completed and edited. This will be an initial
review to attain whether the goals have been met, or whether
more work needs to be done. This will avert a mismatch in
perceived outcomes and allow enough time for correction of any
major errors.
4.5. Scope Change Control
This section defines how planning and management of changes
to the scope, via change request, is carried out. This section also
details how any scope management plans; corrective actions and
lessons learnt documentation should be completed.
4.5.1. Scope Changes
Please refer to section 3.2.2 Change Requests, for the
appropriate process for making scope changes.
4.5.2. Corrective Action
Where a scope change request has been submitted and
approved, the following corrective actions shall apply.
1. It will be integrated into the project plan;
2. New costs, timeframes and quality effects will be
detailed;
3. All new tasks will be integrated into the WBS and
assigned;
4. All cost increases will be factored into phasing and
overall budgets; and
5. The scope verification adapted to suit new deliverables.
If there has been an unrecoverable slippage to the timeline,
unrelated to a scope change, there is to be a report to both the
project manager and subsequently, the program manager as soon
as the slippage is identified. If the slippage can be recovered
through additional hours, without risking life, then overtime can
be paid to the relevant workers.
Page 9

18. In the event of a major slippage, a corrective action report
(CAR) will be created giving options of how to proceed. This
will include the amount required to get back on time, the quality
drop that will be required to get back on time or the time that
will be lost. This will be disseminated to the program manager
and internal stakeholders.
4.5.3. Lessons Learnt
All changes, corrective actions and rationale for decisions
regarding corrective actions are to be documented and approved
by the Project Manager, as soon as completed. The full
documentation of change requests and corrective actions is to be
recorded in a central database to enable corporate learning.
Page 10

19. 5. Project Time Management
This section covers the intended strategies to manage time for
the life of the project. It includes defining and sequencing of the
activities and estimating their duration.
5.1. Activity Definition
5.1.1. Activity List
Please see below the activity list for this project. All constraints
and assumptions are listed in the project charter, in the scope
initiation section (4.1.1).
Table 1: Activity List
Activity
Level
1 Level 2 Level 3 Description
Research and Data Collection
Research raw materials required
Research Journal
Articles
Gather information
of relevant raw
materials for
biofuel production
to create Aviation
fuel.
Research availability of raw
materials
Research Journal
Articles
Gather information
of relevant raw
materials for
biofuel production
to create Aviation
fuel.
Research other
biofuels already
produced
Gather information
of other kinds of
biofuels already
being produced
from current
producers of
biofuels, in the
industry.
Research
commodity market
to ascertain who
sells these raw
materials and their
current price, as
Preliminary
investigation of the
market for supply
and demand, cost
and availability of
the raw materials.
Page 11

20. determined by the
market.
Research existing suppliers
Research industry
websites
Review all industry
websites regarding
the manufacture of
biofuels, to
determine who the
approved suppliers
are.
Research
environmental
protection websites
Review
environmental
websites regarding
the manufacture of
biofuels, to
determine the
environmental
record of the
suppliers in point
10
Research cost,
quality, reliability
and availability of
the suppliers from
point 10
Obtain the data
relating to cost,
quality, reliability
and availability of
the suppliers.
Analysis
Link the raw materials with appropriate suppliers.
Create a matrix
illustrate the links
between suppliers
and each raw
material
Evaluation of
suppliers
Identify the most
appropriate
supplier for each
raw material.
Analyse how to obtain ongoing supply of the raw materials
Engage potential
suppliers for
information
Collate the data
relating to the
abilities of each
supplier to
maintain an
ongoing supply of
the raw materials
Evaluation of
suppliers
Determine the
viability of each
supplier to
maintain an
ongoing supply of
the raw material by
Page 12

21. comparing each of
their company
information packs.
Conduct a Cost-benefit analysis for each raw material
Evaluation of
suppliers
Compare the
remaining viable
suppliers for each
raw material on the
basis of cost versus
benefit. Given that
the list has been
whittled to only
those who can
supply the raw
material on an
ongoing basis.
Drafting
Initial outline in dot point form
Brainstorm
Preliminary
brainstorming of
ideas on initial
draft.
Harvest valuable
ideas
Cut the overall list
of ideas to key
useful potential
solutions.
Create an initial draft
Elaborate on list of
key ideas
Further explore the
list of ideas and
cull the ones that
will not work.
Draft initial
document
Write the strategy
in the form that it
will be presented.
Review draft
Correct any
mistakes, check for
flawed logic and
check assumptions
to ensure high
quality.
Edit
Peer review Peers to review
Line Supervisor
Review
Line supervisor to
review for how it
fits with the
company's
direction.
Final draft
Page 13

22. Conduct any further
research
Conduct any
further research, as
outlined
throughout the edit
and review phases.
Enter any changes
Input changes and
review to ensure
quality
Approvals Process
Identification of stakeholders
Internal
Identify the
relevant
stakeholders for
approval of the
strategy
External
Identify the
relevant
stakeholders for
approval of the
strategy
Coordination of approvals
Internal
Endorsement
Manage the signing
off of the strategy
by senior internal
stakeholders.
External notification
Notify those
external
stakeholders of the
completion of the
strategy
Implementation and execution
Communication
Distribute to
internal executors
Gather relevant
parties for a
meeting/lecture on
the contents of the
strategy. Also
distribute to them
via electronic
means.
Manage Stakeholders
Secure ongoing
support
Ensure the funding
remains in place by
continually
communicating the
importance to the
decision makers.
Review of effectiveness
Evaluation
Page 14

23. Performance
Review
Review the
performance of
each supplier for
each raw material
they are
responsible for
delivering.
Cost-benefit analysis
Conduct another
cost-benefit
analysis to ensure
value for money is
still being achieved.
Communication
Confirm the
ongoing
relationship with
the supplier or
inform them of the
change, as
required.
5.2. Activity Sequencing
For this portion of the plan we have used the Precedence
Diagramming Method (PDM). See below for the Project
Network Diagram.
Framework 1: Activity sequencing networking
Page 15

24. Page 16

25. 5.3. Activity Duration Estimating
The Work Breakdown Structure contains the times that have
been estimated, as shown below.
5.3.1. Basis of Estimates
This is a list of further assumptions that were taken during
development of the estimates.
Table 2: Assumptions of WBS
Activity Repetitions Assumption
Research Activities 4 Number of researchers on
the project team.
Link Raw Materials 1 There is a supplier for every
raw material
Ongoing supplies 1 Raw materials can be
supplied on an ongoing basis
Page 17

26. Brainstorm 1 There are enough valuable
ideas produced
Editing 1 Peers and supervisor will
provide feedback on time
Internal Approval Process 1 The schedule of approvals
will completed on time by
the senior management
Approval Process 1 Correctly identified the
relevant stakeholders
Ongoing Support of
Stakeholders
1 There will be an ongoing
support from the senior
decision makers
5.4. Schedule Development
This section details the start and finish dates and how to manage
the timelines for the project. The schedule assumes that the
standard hours of the project are 8 hours per day 5 days per
week, excluding public holidays.
5.4.1. Project Schedule
To view the project schedule, please refer to the Gantt chart
attached in Appendix 1.
5.4.2. Schedule Management Plan
Internally, if there is a schedule change or if a delay in any
specific task is identified before the activity becomes late, the
Project Manager is to reallocate the necessary resources
according to the changes that have occurred.
5.4.3. Resource Requirement Update
In the event of corrective actions being approved by the Project
Manager, where there are cost or resource implications, these
are to be tracked and included in the budget. This will be done
by formal notification to the project accountant via email and
followed up in writing.
5.4.4. Constraints and Assumptions
The constraints on this section include standard hours to be
worked, because it limits the ability of workers to complete
tasks by their allotted time.
Page 18

27. The assumptions for the schedule are: the number of required
employees can complete their allotted task on time; attendance
of the employees will remain constant as full-time. Finally, there
will be no significant and unrecoverable ‘lags’ in the proposed
schedule.
5.5. Schedule Control
5.5.1. Schedule Updates
A schedule update is considered to be anything that changes the
start or finish time of another work activity down to the level
three tasks. These include any level four tasks or below that
affect higher-level tasks. To assist in schedule management once
a task is complete, the WBS will be updated via the online
software. In addition, the person in control of completing the
work activity is to advise the project manager and anyone whose
task it will affect. For more information on the channels of
communications and how to communicate with these specific
stakeholders, see the communications section of this plan at
section 9.
5.5.2. Corrective Actions
In the event of a completion time that will affect another task
either by allowing it to start earlier or forcing it later, a formal
schedule update request must be submitted to the project
manager with a corrective actions proposal including an
estimated cost of any such proposal. If accepted by the project
manager – with no corrective actions available – they will notify
the project sponsor, program manager and any relevant internal
and external stakeholders.
In addition, the project manager will inform the other team
members affected about the change to schedule and seek any
possible corrective actions from that work group to get the
project back on time.
Page 19

28. 6. Project Cost Management
This cost management plan serves to effectively and efficiently
allocate resources for development of a strategic plan for
security and transportation of raw materials for production of
Bio-fuel for the commercial and military aviation industry. The
main components of the project cost management section
include resources planning, cost estimation, cost budgeting, and
cost control. Significantly, the cost management plan serves as a
control mechanism for standard comparison, a baseline from
which to measure the difference between the actual and planned
use of resources (Project Management Institute, 2000). The
project manager should deploy resources to accomplish planned
project objectives – drawn from the WBS – hence, resources
usage should be monitored carefully to detect over or under
utilisation of resource expenditures (Meredith J. and Mantel S,
Jr. 2006). When making cost estimations and allocating costs to
resources requirements of the project, cost control measures are
established to cater for changes to the budgets of individual
work activities, with significant consideration to uncertainties
such as inflation interest rate increases, corporate taxes, and
income taxes (Meredith J. and Mantel S, Jr. 2006). Cost
estimations are made considering the market prices for goods
and services of the Australian economy and in conformance with
current Australian labour laws and minimum wage
standards/requirements.
6.1. Resource Planning
Resource planning is one of the core components of this project
plan. Core resources determination is explicitly based on the
Work Breakdown Structure (WBS) and project scope statement
presented in project scope management section. Consideration
must be equally given to physical resources such as computers,
printers, telephones, copy papers, and human resources and
intangible resources such as time and energy (Debbie 2003). The
quantity and quality of resource requirements to develop the
strategic plan for security and transportation of the bio-fuel
production program are presented in the project budget in
section 6.3, cost budgeting. Identified resources should facilitate
implementation of the tasks in the WBS and are consistent with
organisational policies. The resource requirements planning
table below presents the summary of all resources in quantity,
type, and quality needed to efficiently complete both high and
low level work activities from initiation to termination of the
project.
Page 20

29. 6.1.1. Resource Requirements Planning
Table 3: Resource Requirements
Activity
level
WBS
Activities
Resource
Requirements
Quantity Quality/ Type
1 Project
Management
Manager 1 1. Bachelors degree level or
above
2. 3-4 years project
management experience
3. Good interpersonal,
communication, problem
solving, and negotiation
skills
4. Able to display high
professionalism, general
management, and
coordination capabilities
Accountant 1 1. First degree in
accounting qualification
2. 2-3 years accounting
work experience
3. High level analytical and
problem solving skills
2 Strategy for
security of
suppliers
The resources required under this high level activity are based
on the following low-level activities.
2.1 Research for
raw materials
Research Officers 2 1. First degree qualification
in Business or commerce
field
2. Have strong research,
analytical,
communication, and
reporting skills
2.2 Research
current
suppliers
Research Officers 2 (same as
above)
1. First degree qualification
in Business or commerce
field
2. Have strong research,
analytical,
communication, and
reporting skills
3 Data Analysis The two research Officers are to analyze their research findings
on raw materials and current suppliers and prepare reports
respectively. All research methods and data analysis methods,
techniques, instruments must be reliable and proven to maintain
quality outcome.
Page 21

30. 4 Drafting/
documentation
Drafting officers 2 1. Secretarial and Business
administration
qualification
2. 2 years business
administration work
experience
Computer/laptop
Printer
Copying Paper
2
1
4 reams
HP computers with MS
windows Vista application
HP Laser network printer
Reflex A4 white
5 Approvals
Process
Project Officers 2 1. First degree
qualification in Business
and commerce field/
logistics management
discipline
2. 2 years similar work
experience
3. Have strong planning,
coordination,
organisation, and
communication skills
6 Implementation
and Execution
Project Officers 2 (same as
above)
1. First degree
qualification in Business
and commerce field/
project management
discipline
2. 3 years plus project
officer work experience
3. Have strong planning,
coordination, leading,
controlling,
organisation, and
communication skills
7 Review of
Effectiveness
Project manager to plan, organize, and coordinate meetings to
effectively control and management project implementation
efficiency. Further to ensure that project is on schedule and no
deviations from initial plan.
Page 22

31. 6.2. Cost Estimating
Cost estimations are made considering market prices for goods
and services in the Australian economy and in conformance with
current Australian labour laws and minimum wage
standards/requirements (Australian Human Resources Institutes
2003). When making cost estimations and allocating costs to
core resources requirements, significant consideration is given to
uncertainties such as inflations, interest rates, corporate tax, and
income tax. A 10% contingencies cost is built into the initial
individual cost structures as a measure to cater for changes to
the budgets of individual work activities. The budget is therefore
flexible to cater for any uncertainties and the budget itself forms
the cost control mechanism (Meredith J. and Mantel S, Jr.
2006). The units (per man hours, per quantity, and per day)
determinants of total cost estimations for every resource
requirements are based on the individual work requirements of
the WBS. For simplicity and ease of reference, all cost
estimations are presented in concert with the cost budgeting
section.
6.2.1. Cost Management Plan
The project cost budget presented in section 6.3 will be
employed as an effective resource expenditure control and
management mechanism. Every activity in the WBS, both high
and low levels, is allocated a cost and that is the cost
baseline/benchmark to be used to measure project budget
performance during the project life. Significantly, the cost
budget serves as a control mechanism for standard comparison,
a baseline from which the project manager can measure
differences between the actual and planned use of resources
(ROI Institute 2004). Current or potential deviations detected
must be rectified whilst notifying project sponsors, project team,
customers, and other relevant stakeholders, through their
preferred communications medium (Meredith J. and Mantel S,
Jr. 2006).
6.3. Cost Budgeting
Resources planning and cost allocation is forecast, giving
adequate consideration to the individual high and low /sub level
activity requirements of the work breakdown structure. The
budget is planned to facilitate achievement of the objectives of
the project, hence the ultimate objectives of the historical Bio-
Solar program. From the cost estimations, the following project
budget is planned to fully implement the project from initiation
to completion (Project Management Institute, 2000).
Page 23

32. 6.3.1. Project Budget
Table 4: Project Budget
Activit
y level
Activities Resources Requirements Estimated Cost.
AU$
Total
AU$
1 Project Management
Manager
Accountant
110,000-125, 000
60,000-80,000
187,500
2 Strategy for security of
suppliers
2.1 Research for raw materials 1. Senior research Officer
@ $40/hour
2. Junior research Officer
@ $30/hour
3. Provision for Cost for
information download
Researcher 1 =
8000
Researcher 2 =
5,040
1000
14,040
2.2
Research current suppliers
Same Research Officer will
be used.
3 Data Analysis
4
Documentation/Drafting
1. Senior Analyst/ writer
@ $40/ hour
2. Junior Analyst/ writer
@ $30/ hour
3. 2 x Computer/laptop
4. 1 x network printer
5. 4 x A4 reams copying
paper
6. Overhead costs
7. Administrative costs
Writer 1 = 11,520
Writer 2 = $7680
1500 X 2 = 3000
500
50
2000
1000
25,750
5 Approval Process
1. Stakeholder meeting
2. Venue Hire
3. Refreshments
4. Transport hire
@$100/per day
1000
2000
1000
500
4500
6 Implementation and
1. Senior Project Officer
@ $40/hour
2. Junior Project
1 =20,800
2 =15,600
Page 24

33. execution Officer@$30/hour
3. 2 x Telephones
4. Meetings
2 X 200
500
37,300
7 Review of Effectiveness
1. Review Meetings 500 500
Project Budget 269,590
Provision for Administrative
Overheads 10%
26,959
Contingency Provision 10% 26,959
Provision for Risk
Management 5%
13,480
Provision for Change
Management
5% 13,480
Total Project Cost 350,468
Labour costs are based on the Australian Human Resources Institute 2008 Salary
survey services.
6.4. Project Schedule and Risk Management Plan
The WBS is the basis from which the baseline cost is
determined. The project budget is based on the WBS where
resource requirements (time and quantity) are scheduled from
initiation to completion. A contingency cost estimation of 10%
of each resource is built into and allocated to every resource and
activity to cater for any price changes through inflation and/or
government policy shifts. Any changes or potential changes to
project schedule must be catered for and the project manager
must take necessary measures where possible to inform relevant
stakeholders for approval of immediate corrective actions
(Project Management Institute, 2000).
6.5. Cost Control
Deviations from the cost baseline should signify critical cost
performance signals of the project. Budget overrun or under
utilization should be importantly considered as a major change
to the budget (Project Management Institute, 2000). Hence, the
project accountant must investigate the cause of the variance
and make necessary recommendations to the project manager
for corrective actions where who must undergo quick and
immediate auditing. The project accountant will remain a key
Page 25

34. professional to keep track of project cost performance
throughout the project life. Most importantly, conduct budget
reviews in every planned milestone and project phase. The
strategies for cost control actions to be taken by the project
accountant include:
a) Monitoring cost performance to detect and understand
variances from plan,
b) Ensuring that all appropriate changes are recorded
accurately in the cost baseline.
c) Preventing incorrect and inappropriate or unauthorised
changes from being included in the cost baseline, and
d) Recommend the project manager take necessary actions
to bring cost within acceptable limits.
Based on the project accountant’s recommendations, the project
manager should:
a) Schedule meetings and Inform appropriate stakeholders
of the changes;
b) Ensure that changes to the cost baseline are minimised,
authorised and agreed upon by all stakeholders; and
c) Take necessary actions to rectify the changes and
manage actual changes when and as they occur.
Page 26

35. 7. Project Quality Management
The final deliverable of this project is a quality plan that will be
used by the project manager to develop a strategy to identify and
secure raw materials, logistics, and suppliers for ongoing
production of bio fuels for the main Bio-Solar program. The
business need addressed by the strategy is to facilitate and
support the production process by ensuring ongoing supply of
raw materials to be used in the production process. Hence, the
project manager must ensure quality management at all phases
and milestones from research to documentation, to approval,
and to implementation are maintained and controlled. Project
Quality Management must therefore be taken seriously as a
critical process necessary to ensure that the project will satisfy
customer requirements. The project manager should place
sufficient emphasis on implementing, managing, monitoring, and
controlling all strategies and measures prescribed in the Quality
Planning, Quality Assurance and Quality Control sections below
to achieve the desired project outcome or deliverable (Brooke
B. et al. 2006).
7.1. Quality Planning
Quality planning establishes the basis from which the project
manager will monitor and control quality. Based on the
approved project scope and outcome, the critical components of
the quality plan are the quality statements and the quality
policies (Meredith J. and Mantel S, Jr. 2006). The project
manager is expected to use the quality statement and policies to
monitor and control quality throughout the project but
particularly at all milestone points through to the final product
(Project Management Institute, 2000). The quality policies are
based on the following three main and important quality
statements - which are focused on the final product, the strategic
plan.
Page 27

36. Framework 2: Quality Statements and Policies
7.1.1. Quality Management Plan
This quality management plan ensures that the project manager
effectively manages the implementation of the quality policies
and describes the procedures and framework for implementing
quality assurance and quality control. Monitoring and controlling
of quality will be conducted mainly through a review and
auditing process (Project Management Institute, 2000). The
members of the review and auditing team include the project
accountant, senior research officer, and senior project officer
and lead by the project manager. Their specific job
responsibilities are described in table 3 below.
Table 5: Quality review and Audit team
Page 28
1. The final product of this project must be of highest standard,
quality, and meets the approved performance specifications and
requirements of the client and top management.
2. The final product must be easy to read, translate, interpret,
understood, and implementable by all critical stakeholders.
3. The final product must be flexible and compatible to accommodate
any changes and deviations in the cost baseline, time baseline, and
performance specifications.
Quality
Statements
1. Recruit skilled, knowledgeable, qualified, experienced, and professional
research and project officers including project manager and project
accountant.
2. Specific job descriptions of every project member must be detailed to
monitor and control quality.
3. Proper and consistent scheduling must be done to ensure consistent
performance by all team members.
4. Research and data collection sources must be current, reliable, genuine,
and up to date.
5. Data analysis tools and techniques must be appropriate and relevant for
the project.
6. Frequent quality review meetings must be conducted to ensure quality
specifications are met at every milestone point.
7. Detailed editing must be done to ensure quality
8. Change and risk management plans must be carefully followed to
monitor and control changes and risks
9. Final project plan must be of quality, standard, and specifications that
satisfy the needs of the critical stakeholders,
10. All schedule, cost, and performance management and control plans must
be strictly followed to identify and manage changes, mitigate risks, and
ensure quality project outcome.
Quality
Policies

37. Quality Review and Audit Team Job Responsibilities
Project Manager- Team Leader 1. Quality monitoring and control review
and audit process and arrange audit
meetings.
2. Quality policies are implemented
throughout the entire project.
Project Accountant- Cost Auditor
1. Ensure that project is on budget and
cost associated with quality control is
accounted for through critical
milestone audit points.
2. Conduct professional audits and
report any changes that will affect
quality
Senior Research Officer- Chief Editor
1. Ensure that all research and data
gathering sources are reliable and
current
2. Ensure that research is professionally
conducted
3. Edit drafts and report to review team
on status and progress
4. Make draft reports and plans available
to review team at every review
meeting for milestones completed
Senior Project Officer-Performance
Auditor
1. Ensure that quality is maintained at all
milestone points
2. Ensure that all critical events and
activities are carefully implemented
3. Audit for any deviations, identify
cause, and report for corrective
actions
Knowing the members of the quality audit and review team and
their respective responsibilities, the project manager should use
the quality review and audit meeting plan framework below as a
quality management plan. This plan is made as a closed looped
quality monitoring and control system.
Framework 3: Quality Management Improvement Plan
Page 29

38. 7.2. Quality Assurance
The project manager must use the quality management plan to
ensure that project quality is maintained. The project quality
review and audit team serves as the quality assurance mechanism
for systematic monitoring and controlling of quality. Senior
management and project clients approved quality standards must
be maintained or improved throughout the project life cycle to
provide confidence and trust in the final outcome of the project.
The quality management and improvement plan – the closed
looped quality audit and review process – also serves as a
continuous quality improvement mechanism for the project
manager to systematically monitor and control (Project
Management Institute, 2000 and Meredith J. and Mantel S, Jr.
2006).
7.3. Quality Control
The final deliverable of this project is a strategic plan for security
and transportation of raw materials. This should primarily ensure
development of an effective and efficient inbound supply chain
system to facilitate achievement of the objectives of the bio-solar
program. Quality control is considered very critical in all phases
of the project to achieve its objective. The quality of the product
(strategic plan) of this project importantly depends on how well
the project performance process is controlled and monitored
(Meredith J. and Mantel S, Jr. 2006). The project manager and
the project team should therefore ensure that the project
performance process, costs, and time are carefully monitored to
detect unusual changes from normal implementation
variances/deviations. Corrective actions should be immediately
taken to ensure that the project performance is on schedule/time,
budget, and within the planned standards and quality. The
Page 30
Quality Audit and
review team Meeting
Convened
Quality
Deviations/Defects in
time, cost, and
performance
specifications identified
and thoroughly
discussed.
Resolutions and
recommendations
adopted and plans
made for immediate
corrective actions
PM to report to
stakeholders on critical
changes in scope, cost,
schedule, and
performance for
approval and
additional resources
Approved Quality
improvement
recommendations and
resolutions are
implemented by
respective project teams
Reports on the
corrective actions
including normal
audit reports are
ready for the next
quality audit and
review meeting

39. following table presents the quality management, improvement,
and checklist plan for the project throughout the entire project
life, significantly from the performance process, costs/budget,
and schedule/time control perspectives (Mayberry County
Nonprofit Technology Assistance Agency (NTAA) 2005).
Table 6: Quality Control Plan
Activity
level
Activities Performance Process Cost/ Budget Time/ Schedule
1 Project
Management
1. Project manager
must ensure that
performance and
process audits are
done at all
milestone points
throughout the
project life
2. Report any process
and performance
deviations to
relevant
stakeholders and
take immediate
corrective actions
1. Project
Accountant must
conduct financial
and cost audits at
all milestone
points throughout
the project life
2. Report any
variances from the
cost baseline to
project manager
to take necessary
actions
1. Time/schedule
audits must be
conducted to
ensure that
lower level
activities are
implemented on
time to achieve
higher level/
milestone
activities
2. Causes of
delays or early
execution must
be investigated
and necessary
actions
immediately
taken to ensure
quality
2
Strategy for
security of
suppliers
Research on current suppliers and type, kind, quantity, and quality of
raw materials is a crucial milestone activity of the project. The research
method, type, time allocation, sources of information, and qualifications
and skills of research officers are critical for quality research outcome.
This high level activity is the core activity of the project; hence,
adequate funding and time must be allocated to achieve high
performance and quality.
2.1 Research for
raw materials
1. Research
problem/area must
be properly stated
and specifically
defined
2. Appropriate
research design,
methodology and
type must by
employed
3. Genuine and
reliable sources of
data are used for
literature review
4. Research officers
must be qualified
1. Adequate funding
must be allocated
for quality
research
outcome
2. Research must be
conducted within
the planned
budget
3. Any
deviation/variance
to the cost
baseline must be
notified and
investigated
1. Sufficient time
must be
allocated for
quality research
outcome
2. Research must
be conducted
within the
planned
schedule/time
3. Any delays/
over-run to the
scheduled time
must be notified
and investigated
4. Corrective
actions must be
Page 31

40. and have
necessary research
skills and
knowledge
4. Corrective actions
must be
immediately taken
to rectify
immediately
taken to rectify
2.2
Research
current
suppliers
1. Research
problem/area must
be properly stated
and specifically
defined
2. Appropriate
research design,
methodology and
type must by
employed
3. Genuine and
reliable sources of
data are used for
literature review
4. Research officers
must be qualified
and have
necessary research
skills and
knowledge
1. Adequate funding
must be allocated
for quality
research
outcome
2. Research must be
conducted within
the planned
budget
3. Any
deviation/variance
to the cost
baseline must be
notified and
investigated
4. Corrective actions
must be
immediately taken
to rectify
1. Sufficient time
must be
allocated for
quality research
outcome
2. Research must
be conducted
within the
planned
schedule/time
3. Any delays/
over-run to the
scheduled time
must be notified
and investigated
4. Corrective
actions must be
immediately
taken to rectify
3 Data Analysis
1. Appropriate data
analysis methods
(qualitative or
quantitative) must
be used to analyse
data
2. Data analysis
process must be
clearly defined and
free of personal
influences and
subjective
information
3. Analysed data must
be accurately
tabulated and
presented for
documentation
1. Adequate funding
must be allocated
for quality data
analysis
2. Data analysis
must be
conducted within
the planned
budget
3. Any
deviation/variance
to the cost
baseline must be
notified and
investigated
4. Corrective actions
must be
immediately taken
to rectify
1. Sufficient time
must be
allocated for
quality data
analysis
2. Data analysis
must be
conducted within
the planned
schedule/time
3. Any delays/
over-run to the
scheduled time
must be notified
and investigated
4. Corrective
actions must be
immediately
taken to rectify
4 Documentation
/Drafting
1. Results of analysed
data must be
accurately
documented
2. First draft written
and edited by
research officers
1. Adequate funding
must be allocated
for
documentation,
including
overhead costs
2. Documentation
process must be
1. Sufficient time
must be
allocated for
quality
documentation
2. Documentation
process must be
executed within
Page 32

41. 3. Second draft
written and edited
by research officers
4. Third draft written
for project manager
and team’s edition
before the final
draft goes to
project sponsors,
director, clients,
and stakeholders
for approval
executed within
the planned
budget
3. Any
deviation/variance
to the cost
baseline must be
notified and
investigated
4. Corrective actions
must be
immediately taken
to rectify
the planned
schedule/time
3. Any delays/
over-run to the
scheduled time
baseline must be
notified and
investigated
4. Corrective
actions must be
immediately
taken to rectify
5 Approval
Process
1. Quality research
output (project
plan) must be ready
for presentation
and approval.
2. Official
presentation plan
must be
coordinated
3. Project plan to be
officially and
professionally
presented to project
sponsors, director,
clients, and
stakeholders for
approval
4. Project plan must
be approved for
implementation
5. Any comments and
criticisms for
improvement must
be noted and
actions taken
accordingly
1. Adequate funding
must be allocated
for project plan
presentation
2. Planning and
coordination
process for project
plan presentation
must be executed
within the planned
budget
3. Any
deviation/variance
to the cost
baseline must be
notified and
causes/sources
investigated
4. Corrective actions
must be
immediately taken
to rectify
5. Funding
provisions must
be made for any
changes to the
cost baseline
during the
presentation
1. Sufficient time
must be
allocated for
professional
presentation of
the project plan
2. Planning and
coordination
process for
presentation
must be
executed within
the planned
schedule/time
3. Any delays/
over-run to the
scheduled time
baseline must be
notified and
investigated
4. Corrective
actions must be
immediately
taken to rectify
5. Time allowance
must be made to
cater for any
changes to the
scheduled time
baseline
6 Implementation
and execution
1. Implementation
should be
according to
strategic plan
2. Implementation
process should be
according to
planned quality
procedures and
1. Adequate funding
must be allocated
for strategic plan
implementation
2. Implementation
process must be
executed within
the planned
budget/costing
1. Sufficient time
must be
allocated for
strategic plan
implementation
2. Implementation
process must be
executed within
the planned
schedule/time
Page 33

42. standards
3. Performance
audits/checks must
be conducted
through meetings at
every key
milestones/
deliverables
4. Any deviations
must be accounted
for and sources
identified for
immediate
corrective actions
3. Any
deviation/variance
to the cost
baseline must be
notified and
causes/sources
investigated
4. Corrective actions
must be taken
immediately
rectification
5. Budget provisions
must be made to
cater for any
contingencies
during the course
of strategy
implementation
3. Any delays/
over-runs to the
scheduled time
baseline must be
investigated and
identified
4. Corrective
actions must be
immediately
taken to rectify
sources
5. Time allowance
must be made to
cater for any
changes to the
scheduled time
baseline
7
Review of
Effectiveness
1. Performance
audit/risk
management
committee must be
established
2. Performance
audits/checks must
be conducted
through meetings at
every key
milestones/delivera
bles
3. Any
deviations/changes
must be accounted
for and sources
identified for
immediate
corrective actions
1. Adequate funding
must be allocated
for strategic plan
implementation
reviews
2. Review process
must be executed
within the planned
budget/costing
3. Any
deviation/variance
to the cost
baseline must be
notified and
causes/sources
investigated
4. Corrective actions
must be taken
immediately
rectification
5. Budget provisions
must be made to
cater for any
contingencies
during the course
of strategy
1. Sufficient time
must be
allocated for
strategic plan
implementation
review process
2. Review process
must be
executed within
the planned
schedule/time
3. Any delays/
over-runs to the
scheduled time
baseline must be
investigated and
identified
4. Corrective
actions must be
immediately
taken to rectify
sources
5. Time allowance
must be made to
cater for any
changes to the
scheduled time
baseline
Framework 4: Quality Control Process
Page 34
Project management

43. First Milestone First Quality audit point
Second Milestone Second Quality audit
point
Third Quality Audit
Point
Fourth Quality Audit
Point
Page 35
Suppliers and Raw
Materials Research
Data Analysis
Strategic Plan
Documentation and
drafting
Strategic Plan
Presentation and
Approval
Implementation and
Execution
Review for
Effectiveness
PM meeting with
Research Officers
Research
information and
Report
Strategic Bio Fuel
Inbound Supply
Chain Plan
PM, Research & Project
Officers Meeting
Performance
Progress review/audit
committee meeting
Change Review and
Certification Meeting

44. Quality planning, control, and monitoring are considered
continuous processes throughout the life of the project. Most
importantly, quality audits and review meetings are planned for
at every milestone points as illustrated in framework 1, quality
control process above. This is to ensure that project is
implemented according to approved scope and performance
specifications, quality, budget, and timeline. It is important that
the project manager follows the specified quality plan and
control process (Meredith J. and Mantel S, Jr. 2006).
7.4. Assumptions and constraints
While project quality control and management plans are
carefully formulated and established to achieve planed quality
goals and objectives, it may not be implemented according to
these plans in practice. Hence, the following four assumptions
are made for the project management and team’s consideration.
7.4.1 Rework
Proper and adequate project planning is considered the standard
protocol of the Bio fuel production program; hence, this
project’s probability for significant final product rework is rated
0.099%. It is assumed that the quality plans, controls,
framework, and processes established are sufficient for the
project manager to ensure flexibility and cater for unexpected
project changes such as extra requirements, performance
deviations, scope creeps, staffing needs, budget and time
constraints. Furthermore, the quality program is also assumed to
have taken into consideration the project's complexity and risks,
hence bottom line is not affected and project costs are not
doubled or tripled from initial cost forecasts as a direct result of
rework. The project manager should also identify reasons for
poor quality and demonstrate how quality affects the overall
project performance and deliverable (Crisologa Lapuz 2008).
Page 36

45. 7.4.2 Customer Dissatisfaction
This project is designed to produce a quality product (strategic
Plan) that will ultimately satisfy the demands/expectations of the
customers. The project manager is therefore assumed to
continuously review and set proper quality expectations, and
clearly communicate and demonstrate how stakeholders’
requirements are incorporated and presented in the project's
output. Project manager should ensure that all involved parties
(customers and stakeholders) are on the same page, and
maintain open lines of communication and a unified direction.
This is especially important when new requirements affect in-
progress projects. In these scenarios, the project manager should
help the invested parties and determine an optimal way to
incorporate changes. The project manager should provide
options on how the new changes can be incorporated and
identify the risks associated with the changes to help ensure
continued quality (Crisologa Lapuz 2008).
7.4.3 Missed project expectations
Without proper quality control, project output can easily miss
performance targets and customer expectations. Therefore, it is
assumed that the project manager will accordingly perform
quality checks/audits at every project milestones/deliverables to
meet the project objectives and strategic goals. Project manager
should keep project efforts aligned with project targets, by
executing planned audits at major quality checkpoints and taking
corrective actions throughout the project life cycle (Crisologa
Lapuz 2008). Conducting project team reviews and manager
reviews are considered common practice to keep efforts on
target. Project managers should also consider involving
customers and stakeholders to review the project before
deadlines for all major deliverables.
7.4.4 Poor utilisation of resources
Poor project quality plans can negatively affect the project
team’s capabilities to utilise project resources effectively.
Conversely, poor utilization of resources can negatively affect
the project deliverable, ultimately customer, and stakeholder
satisfaction. The project manager is therefore assumed to resolve
this problem by implementing the project according to quality
control and management plans, hence avoid running a higher risk
of greater project failure. It is also assumed that there are
adequate project resources and proper resource alignment is
made and allocated to every activity for successful project
outcome. The project manager is assumed to perform his
responsibilities to ensure that project deliverables are
coordinated along with proper quality controls that are
integrated within a holistic project management approach
(Crisologa Lapuz 2008).
Page 37

46. Page 38

47. 8. Project Human Resource Management
This section addresses the staffing processes and issues relating
to the project. This includes: organisational planning; staff
acquisition and team development.
8.1. Organizational Planning
8.1.1. Project Interface
The project interface will be interpersonal in nature, meaning
that communications and reporting relationships will be kept
internal to the project team. The reporting relationships are
detailed in the organisational chart under section 8.2.1.
8.1.2. Staff Requirements
Table 7: Staff Recruitment Criteria
Position Title Project Phase Skills
Project Manager (PM) All Communication
Interpersonal
Problem Solving
Time Management
Negotiation
Coordination
Professionalism and
confidence.
Accountant (Acc) All Degree in Accountancy
CA/CPA qualification
Analytical
Problem solving
Researchers (R) 1 – Research Research
Analytical
Communication (written)
Reporting
Analysts / Drafters (W) 2 and 3 (analysis and
drafting)
Research
Analytical
Communication (written
and oral)
Page 39

48. IT
Project Officers (PO) 3 – 6 (Drafting, approval,
implementation and review)
Coordination
Liaison
Planning
Communication
Time management
8.1.3. Roles and Responsibilities Assignments
Table 8: Assignment of Roles and Responsibilities
Employment Type
PHASE PM Acc R 1 R 2 W 1 W 2 PO 1 PO 2
Research I C P P I I - -
Analysis I C I I P&A P&A - -
Documentation I C - - P&A P&A I I
Approvals P, A & S C - - I I P P
Implementation S&A C - - - - P & A P & A
Review P C P - P - P P
P = Participant; A = Accountable; R = Review; I = Input; S = Sign off; - = nil
involvement; C = consult on budget.
8.1.4. Staffing Management Plan
The numbers of hours required by category are listed in the
histograms below. These are indicative and the number of hours
is likely to be more, but not the duration in weeks.
The exit strategies for both the researchers (leaving in week 6)
and the analysts/writers (leaving in week 12 are to be arranged
with the home groups. This means that it the functional manager
will ensure that there is either another project to go to or their
job to go back to. The employees are to be informed of their
future in the company before they step across onto the project.
This will ensure the researchers and analysts stay with the
company, because they will feel like there has been no loss of
status or unnecessary build up of work. How these employees
will be selected is detailed in staff acquisition in section 8.2.
Below are the indicative hours to be worked by each
classification of worker, in histogram form.
Graph 1: Four Histograms showing hours of work
Page 40

49. Project Manager and Accountant
0
100
200
300
400
500
600
700
800
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Week
HoursWorked
Project Manager
Project Accountant
Project Officers
0
100
200
300
400
500
600
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Week
HoursWorked
Project Officer 1
Project Officer 2
Analysts/drafters
0
50
100
150
200
250
300
350
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Week
Hoursworked
Analyst/Writer 1
Analyst/Writer 2
Page 41

50. Researchers
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Week
Hoursworked
Researcher 1
Researcher 2
8.1.5. Organisational Chart
Please see below the organisational chart for this project.
8.2. Staff Acquisition
This section details what attributes the project staff should have
and how they will be acquired.
8.2.1. Staffing Pool Description
It is anticipated that the project manager will be able to hand
pick their team, and as such should use the following template to
Page
PROGRAM
DIRECTOR
PROJECT
MANAGER
Accountant Senior Drafter
Senior
Researcher
Junior Drafter
Junior
Researcher
Senior
Project
Officer
Junior Project
Officer
42

51. assist in the decision making process. Below is an example of the
template that should be used.
Table 9: Project team selection criteria
Category Responses Rating
Previous
Experience
Personal
Interests
Personal
Characteristics
Availability
Competencies
Proficiencies
8.2.2. Recruitment Practices
It is expected that all staff for this project will come from within
the company, and as such will have already been through the
process used by the company.
8.2.3. Project Staff Assigned
All staff, once selected will be required to work on a full-time
basis for the length of time they are required for their role, as
detailed in the WBS.
8.2.4. Project Team Directory
The template below is to be used by the project team when
taking down details of relevant members and stakeholders.
F
Page 43

52. 8.3. Team Development
8.3.1. External Feedback
The Project Manager is to evaluate the team’s performance
informally as required and formally every quarter or on
completion of the allotted task for the project. Categories for the
assessment criteria include: budget/cost consumed during the
project lifecycle versus forecast, each member’s output with
regard to the overall project schedule and the required quality.
After internal assessment within the project team, PM is to seek
senior management/director for feedback on if the expectations
have been met. Expectations of any stakeholders and customer
satisfaction must be achieved.
8.3.2. Performance Improvements
Each team member is to be assigned their own individual
schedule of tasks, and these will be used as a benchmark for
measuring work improvement and effectiveness in the future.
Any conflicts within the team should be dealt with immediately
with fairness and sensitivity, and should focus on the issues, not
the personalities involved. The PM needs to be sensitive and
consult if necessary with others who witnessed or were involved
in the incident.
8.3.3. Input to Performance Appraisals
The PM is to set the standards and criteria of performance
appraisals as set out above and these are to follow the SMART
theory (Specific, Measurable, Attainable, Results oriented, and
Time specific). If any team member requires significant
development during the project, then this is to be factored into
the planning for that individual’s workload. The PM will also
identify upon completion a number of development areas and
align either courses or on-the-job training/experience to develop
the team member.
On a monthly basis, each project staff member is to provide
feedback, whether positive or constructive to other members
that they have worked with in this project. This should be a
formal anonymous process whereby individuals do not feel
threatened and know that the feedback is only to assist them to
get better in the future. At the completion of each major work
task that the individual is responsible for the PM will evaluate
the performance against the requirements of the customer,
sponsor and programme director. At the completion of the
project, all team members will undergo a full performance
assessment including the performance and improvement of
Page 44

53. performance on each different work task that they undertook.
Again the PM will seek to identify courses/ training that will
assist the team member to get better at their given role.
Page 45

54. 9. Project Communication Management
The Project Communications Plan is the most important
component of this project plan. Hence, the communication
management plan process for this project is to ensure timely and
accurate generation, collection, analysis, dissemination, storage
and ultimate disposition of project information. The
communications plan establishes the critical links, networks, and
reporting structures between the project manager, sponsor,
stakeholders, and project members/team that are necessary for
success of the project. Timely dissemination of knowledge about
the project is essential to the project’s success. Project
participants naturally desire knowledge of what the status of the
project is and how they are affected; hence management must
provide required information on time. The more that people are
educated about the progress of the project and how it will help
them in the future, the more they are likely to participate and
benefit (Meredith J. and Mantel S, Jr. 2006 and Project
Management Institute, 2000).
This plan provides a framework for informing, involving, and
obtaining buy-in from all participants throughout the duration of
the project. The project manager needs to manage all critical
networks, points, and parts of the communications planning,
information distribution, performance reporting, and
administrative closures to successfully achieve the objectives of
the project.
9.1. Communications Planning
A pure project organisation is suitable for this project, which
means all personnel; financial, accounting, administrative,
implementation, management, and control functions are
executed as a self contained unit to achieve the project
objectives of time baseline, cost baseline, and performance
objectives and goals. The performance, time, and cost objective
outcomes should be tied to the main program and directed
towards achieving the objectives and goals of the Bio-Solar
program. The communication plan therefore follows the pure
project organisation chain of command/channel of
communication which is simple but considered very effective and
comprehensive to facilitate successful achievement of project
and program objectives and goals. The organisational structure
below should facilitate the project’s communication process and
the line direction of communication between all project
stakeholders (Meredith J. and Mantel S, Jr. 2006).
Framework 5: Channels and structure of communication
Page 46

55. Bottom
Up
Vertical
Communication
Top
Down
Middle out
Horizontal
communication
9.1.1. Communications Methodology
Based on the above pure project organisation and
communication structure, this project should utilise three
dimensional communications methodologies for effective
communication between all project stakeholders.
Top-Down (vertical)
It is critical that the project manager and his or her team seek
support and direction from the program director, sponsor, and
client. Change proposals from these stakeholders must be
communicated effectively through the project manager. The
Page 47
Program Director
Bio-Solar Program
PM Supply
Chain Mgt
PM
Information
Systems
PM Pond
Mechanization
Project Client &
Stakeholders
Project
Accountant
Senior
Research
Officers
Senior Project
Officers
Program Sponsor
Research Officer
Project Officer

56. project manager must continuously communicate with its team
to keep the project on time, on budget, and achieve performance
quality. The top-level stakeholder leadership of the project
organisation is critical for a unified project and program goal
achievement. This should be seen as 'hands-on' change
management for the success of the project (Debbie 2003).
Bottom-Up (vertical)
The project manager must update performance progress reports
and communicate changes in time, budget, and performance
(quality) or scope to the top-level stakeholders. There must be
no surprises, every contingency must be accounted for and
immediately reported. The project team must always provide
timely and accurate reports to the project manager on their
specific task performance and any changes to their individual
schedules, budget, and task scope. The project manager must
make sure that the communication requirements in this network
are executed and followed by all concerned to keep the project
on schedule, avoid surprises and ensure quality (Debbie 2003).
Middle-Out (horizontal)
All the project managers of different projects within the Bio-
Solar program need to establish strong communication between
them to maintain alignment of their individual project objectives
and goals to the objectives and goals of the main program. The
project manager of this project must establish and maintain
effective communication with other project managers to ensure
compatibility of this project to the other complementary
projects. There must also be effective communication between
the project team to ensure proper coordination between
complementary tasks and alignment of work units to project
goals and objectives (Debbie 2003).
9.2. Stakeholders
The important stakeholders for this project must be given equal
preferences in keeping them informed of the progress of the
project’s performance. Effective communication is very crucial
for the success of this project. The project manager must know
that communication is a two way process. The project manager
must constantly report on project performance via status reports
to the project director, clients, sponsor, and other stakeholders
and must also be prepared to communicate bad news. Effective
communication skills are needed for conflict management within
the project team. The important stakeholders of this project
include:
1. Program Sponsor
2. Program Director
3. Project Client
Page 48

57. 4. Steering Committees (Risk management, Audit, change
management, Performance review)
5. Project Manager
6. Project managers of other projects
7. Project team
8. External Stakeholders (Media, Government etc...)
9.2.1. Communications Management Plan
The communication requirements of all the project stakeholders,
communication methodologies, type of communication, and
frequency of communication necessary to facilitate effective
implementation of this project plan are presented in the table
below. Adequate consideration is paramount for the success of
this project.
Table 10: Communication Plan
Communication
St
ak
eh
ol
de
rs
R
eq
ui
re
m
en
ts
M
od
es
an
d
M
ed
iu
m
s
Fr
eq
ue
nc
y
a
n
d
co
m
m
u
ni
ca
ti
o
n
p
oi
nt
s
Pr
og
ra
m
Sp
on
so
r
Performance
reports
Written Reports
End of milestones/
Deliverables
Pr
oj
ec
t
Pl
an
W
rit
te
n
Pl
an
E
nd
of
th
e
Pr
oj
ec
Page 49

58. t
Pr
og
ra
m
Di
re
ct
or
St
at
us
re
po
rts
Written Brief
M
on
thl
y
Change requests Written Request
E
nd
of
Pr
oj
ec
t
Pr
oj
ec
t
Pl
an
W
rit
te
n
Pl
an
Time of Occurrence
Pr
oj
ec
t
Cl
ie
nt
St
at
us
R
ep
or
ts
W
rit
te
n
R
ep
or
ts
Every Milestone
C
ha
ng
e
R
eq
ue
sts
W
rit
te
n
R
eq
ue
st
Time of Occurrence
Pr
oj
ec
t
Pl
an
End of the project
St
ee
rin
g
C
o
Ri
sk
R
ep
or
ts
W
rit
te
n
re
po
Page 50

59. m
mi
tte
es
(R
is
k
m
an
ag
e
m
en
t,
A
ud
it,
ch
an
ge
m
an
ag
e
m
en
t,
Pe
rf
or
m
an
ce
re
vi
e
w)
rt
pr
es
en
te
d
at
m
e
m
be
r’s
m
ee
tin
g
A
ud
it
re
po
rts
Change reports on
cost, time, and
performance
Performance
Reviews
Pr
oj
ec
t
M
an
ag
er
Audit Report
W
rit
te
n
au
dit
re
po
rt
Every milestone
point
Client requests W
rit
te
n
re
When requested
Sponsor
Committee requests
Page 51

60. qu
es
Director requests
Team requests
Te
a
m
m
ee
tin
gs
When requested
Performance
reports
W
rit
te
n
re
po
rt
Every milestone
point
Conflict
Te
a
m
m
ee
tin
gs
On occurrence
Pr
oj
ec
t
Te
a
m
Directions,
instructions and
advice
W
rit
te
n
co
m
m
un
ic
ati
on
th
ro
ug
h
m
ee
tin
gs
Continuous
Written goals and
objectives
Beginning of every
task
Performance of
specifications/job
descriptions
W
rit
te
n
jo
b
sp
Beginning of every
task
Performance
appraisals and
motivation
Continuous
Page 52

61. ec
ifi
ca
tio
ns
an
d
de
sc
rip
tio
ns
Financial Rewards B
an
k
A
cc
ou
nt
s
Fortnightly
E
xt
er
na
l
St
ak
eh
ol
de
rs
(
M
ed
ia,
G
ov
er
n
m
en
t
et
c
Business
environment
regulatory and
policy compliance
La
w
s,
po
lic
ies
,
re
gu
lat
io
ns
,
an
d
et
hi
ca
l
st
an
da
rd
s
Report when
necessary/ as and
when need arises
All stakeholder communications are critical inward
requirements. It is assumed that the outward communication of
one stakeholder becomes the inward requirement for another
stakeholder.
Page 53

62. 9.3. Information Distribution
The project manager must ensure that all performance reports,
change proposals, audit reports, and other needed information is
made available to all the relevant stakeholders on time, in the
required format, and accurately. In reference to the
communications plan in 8.1.3, the project manager must make
sure all stakeholders follow the modes of communication in
providing each other’s communication requirements. The main
communication modes for distribution of project information are
written hard copy reports, briefs and meetings. However, the
project manager can maintain urgent communication between
top-level stakeholders and the project team through email. The
project manager must maintain project records in an organised
fashion through colour coding for written reports, briefs,
memos, letters, and minutes and specific folders for electronic
copies (Project Management Institute, 2000).
9.4. Performance Reporting
Performance reporting is one of the important parts of the
communications plan. Project manager should make sure that all
necessary information on progress and status of the project and
how resources have been utilised to achieve the milestones must
be reported accurately, in the right format, and on time.
Providing the needed information in precise but in detail and as
simple as possible is very crucial for effective communication of
the requirements of the stakeholders. Hence, this project should
focus on reporting on every milestones on the scope, schedule
(time baseline), cost (cost baseline), and performance (quality)
including any changes, risks, and procurement requirements
(Project Management Institute, 2000).
The Project Manager must be at the centre of coordinating with
all the stakeholders for the milestone status, monthly progress,
change and risk management, and final project deliverable
reports, briefs, and meetings. Every stakeholder should
participate in the reporting and meetings. The Project Manager
should prepare in advance for the reporting activities to avoid
delays and achieve milestone objectives. All performance should
contain the following information in accordance with the project
scope and plan.
1. Summary of tasks completed in milestones on cost,
time, and quality
2. Summary of any critical changes and risks, including
recommendations,
3. Summary of tasks scheduled for completion for the next
milestone, and
Page 54

63. 4. Summary of issue status and resolutions.
The following performance reporting matrix should be a
necessary plan for compulsory reference.
Table 11: Performance Reporting Matrix
9.4.1. Change Communications Process
The information contained within the project plan will likely
change as the project progresses. While change is both certain
and required, it is important to note that any changes to the
Page
Report types
Techniques
Project
Status
Project
Progress
Change and
Risks
Final
Deliverable
Performance
Audits/reviews
Written
reports,
briefs, to and
meetings on
every
milestone
with top level
stakeholders
Monthly
written
reports, briefs,
to and with
meetings top
level
stakeholders
Bi-monthly
written
reports, briefs,
to and with
meetings top
level
stakeholders
Final review
before
presentation for
approval and
after approval
for
implementation
Variance
Analysis
Written
reports at
every
milestone
points by
project team
to manager
Monthly
written reports
by project
team to
manager
Bi-monthly
written reports
by project
team to
manager
Final review
before
presentation for
approval
Financial Audits
Written
reports on
every
milestone
from
accountant to
manager
Monthly
written reports
from
accountant to
manager
Bi-monthly
written reports
from
accountant to
manager
Final review
before
presentation for
approval
Change and
risks
management
meetings
Written
reports and
meetings at
every
milestone
between all
change and
risk
management
committees
Monthly
written reports
and meetings
all change and
risk
management
committees
Bi-monthly
written reports
and meetings
all change and
risk
management
committees
Final meeting
before
presentation for
approval and
after the
approval for
implementation
55

64. project plan either through schedule, cost, or scope will impact at
least one of three critical success factors:
1. Available Time,
2. Available Resources (Financial, Personnel), and
3. Project Quality.
The decision by which to make modifications to the project plan
(including project scope and resources) should be coordinated by
the project manager for approval using the following five-step
process.
Page 56

65. Framework 6: Change Management Communication Process
.
Page 57
Step 1 As soon as a change in project scope, schedule, cost, and
performance (quality) is identified, the project manager must
document the changes as accurately and as precisely as possible.
Step 2 The project manager must then review the changes and determine the
causes and associated impacts to the project and forward changes,
along with a recommendation, to the top level stakeholders and
relevant committees for review and decision
Step 3
Upon receipt, the top level stakeholders and relevant committees
should reach a consensus opinion on whether to approve, reject or
modify the request based upon the information contained within the
project manager’s recommendations and their own judgment. Should
they be unable to reach consensus on the approval or denial of a
change, the issue will be forwarded to the project sponsor, with a
written summation of the issue, for ultimate resolution
Step 4 If required under the decision matrix or due to a lack of consensus,
the project sponsor shall review the issue(s) and render a final
decision on the approval or denial of a change.
Step 5 Following an approval or denial (by the relevant committees or
project sponsor), the project manager should take necessary remedial
actions or notify the original requestor of the action taken. There is
no appeal process.

66. 9.5. Administrative Closure
Successful execution of all the project management functions
such as planning, organising, staffing, implementing,
coordinating, leading, controlling, monitoring, and evaluating by
the project manager significantly depends on effective and
efficient communication. The project manager is expected to
spend almost 95% of the project management time
communicating with the team members, client, top management,
and other critical stakeholders to ensure consistent performance
and quality achievement. The project is expected to meet the
approved objectives of performance specifications of quality, on
budget, and on schedule and satisfy the business need of the
client and sponsor. After completion of the project with meeting
these objectives, the next critical part is how to effectively
communicate this product to the client and sponsor (Project
Management Institute, 2000). The project manager should
ensure the following criteria are done before, during, and after
the presentation of the strategic plan to the client, top
management, and sponsor.
1. The project manager must conduct project closure at
every milestone to ensure that the project meets the
objectives of approved performance specifications,
quality, budget, and schedule and proper records are
kept for monitoring and control,
2. Before final presentation, a final review meeting must
be conducted to ensure the project outcome (strategic
plan) reflects the approved quality and performance
specifications,
3. Arrange and coordinate project launch/presentation
meeting according to project schedule,
4. To convince the project client, sponsor, and top
management to formally accept the final product
(strategic plan), the project manager’s presentation
should focus on:
a) Communicating the achievement on the approved
project scope specifications,
b) The achieved objectives of performance (quality,
budget, and schedule (time), and
c) The business benefits to the client, sponsor, and top
management.
5. Allow time for project client, sponsor, and top
management to respond and officially accept the project,
6. After the acceptance, officially close the presentation by
confirming that the project has met the business needs
of the client, sponsor, and top management, and
Page 58

67. 7. Finally arrange for archive of all-important
documentation – including milestone closure reports,
final project strategic plan, and correspondence, project
review and audit meeting minutes, change management,
and risk management reports.
Page 59

68. 10. Project Risk Management
This section details the risk management plans for the project
including the probability of an occurrence and the consequences
on the project’s objectives, affecting the target output in
schedule, budget, and/or quality. It also contains the processes
for risk identification, analysis, evaluation and control.
10.1. Risk Management Planning
10.1.1. Organisational Risk Management Policies
The predefined approaches to risk analysis for this project plan
are the qualitative risk assessment method, in which a probability
versus consequences rating matrix is setup. The organisation is
to select appropriate employees as members of the Risk
Management Committee. The project manager must be included
since direct assessment of risk is related to the project.
10.1.2. Roles and Responsibilities
Table12: Roles and Responsibilities of project team
Role Responsibility Decision-making
Authority
Project Team Member  Understand the user needs and
business processes
 Communicate project goals, status
and progress throughout the project
to personnel in their area
 Review and approve project
deliverables
 Coordinates participation of work
groups, individuals and
stakeholders
 Provide knowledge and
recommendations
 Helps identify and remove project
barriers
 Assure quality of project plan is up
to the standards
 Identify risks and issues and help in
resolutions
Low
Project Manager  Manages project in accordance to
the project plan
 Provide overall project direction
 Direct/lead team members toward
project objectives
High
Page 60

69.  Handle problem resolution
 Manages the project budget and
schedule
Risk Management
Committee
 Assess any risk-type activities
 Response to individual risks
 Approves major funding and
resource allocation strategies, and
significant changes to
funding/resource allocation
 Resolves conflicts and issues
 Provides recommendations to the
Project Manager
High
Senior
Management/Director
 Assess/evaluate/approve the overall
project
Medium
Stakeholders  Provide project oversight and
guidance
 Review/approve project elements
Medium
10.1.3. Stakeholder Risk Tolerances
The Risk Management Committee must gather necessary details
regarding the extent to which stakeholders will accept risk. This
will be done by interviewing agencies, organisations and
businesses, which are involved in the Risk Management Plan,
and indicating who will need to be assessed as the project
continues.
10.1.4. Risk Management Plan
The information contained within the Project Plan will likely
change as the project progresses. While change is both certain
and required, it is important to note that any changes to the
Project Plan may impact at least one of three critical success
factors: Available Time, Available Resources (Financial,
Personnel), or Project Quality. The decision to make
modifications to the Project Plan, including project scope and
resources, should be coordinated by the Project Manager.
Identified risks must be monitored continuously to ensure that
countermeasures can be employed at the earliest possible time in
the process. The PM and Project Officers must continuously
scan the environment for new risks, and develop strategies to
combat them. The template to be used for risk management is
below:
Table 13: Risk Management control template
Activity Potential
Hazards /
Probability
Rating
Impact
Rating
Risk
Control
Responsible
Person
Time-
Frame
Monitor /
Review
Page 61

70. Risks Measures
Source: Adapted from Australian Refrigeration Council Ltd, 2008.
The methodology for risk management plan is detailed in the
table below.
Table 14: Risk Management Plan
Step Processes required
1 As soon as a change which impacts project scope, schedule, staffing or
spending is identified, the Project Manager will document the issue.
2 The Project Manager will review the change and determine the associated
impact to the project and will forward the issue, along with a
recommendation, to the Risk Management Committee for review and
decision.
3 Upon receipt, the Risk Management Committee should reach a consensus
opinion on whether to approve, reject or modify the request based upon
the information contained within the project website, the Project
Manager’s recommendation and their judgment. Should the Risk
Management Committee be unable to reach consensus on the approval or
denial of a change, the issue will be forwarded to the Project Sponsor,
with a written summation of the issue, for ultimate resolution.
4 If required under the decision matrix or due to a lack of consensus, the
Project Sponsor shall review the issue(s) and render a final decision on
the approval or denial of a change.
5 Following an approval or denial (by the Risk Management Committee /
Senior PM / Stakeholders), the Project Manager will notify the original
requestor of the action taken. There is no appeal process.
10.2. Risk Identification
10.2.1. Risk Categories
Technical, quality and performance risks – This involves all risks
associated with technical activities such as IT systems; quality
risks such as drafting; and performance related which in this
project relates to quality.
Project Management Risks – This includes all risks associated
with managing the project. This includes allocation of resources.
Organisational risks – This includes all risks associated with
ongoing organisational support such as resourcing and
continued maintenance of the project as a priority.
Page 62

71. External risks – This includes all risks relating to things out of
our control, such as legal and regulatory changes such as an
OH&S regulation regarding how to transport CO2.
10.2.2. Project Risks
The probability and consequences ratings in the table below are
based on a qualitative analysis and the overall rating is based on
the matrix as detailed below:
Probability
High M H H
Medium M M H
Low L M M
Low Medium High
Consequence
Source: Adapted from Standards Australia Risk Management AS/NZS 4360: 2004
Table 15: Probability of Risk Occurrence Matrix
# Risk Probability Consequence Ratin
g
Mitigation Strategy
1 IT systems
failing for an
extended
period of
time High Medium High
Ensure that back up
copies of drafts are
made by all team
members. Seek
notification from power
company of any
scheduled or
unscheduled power
outages.
2 Staff
required for
the project
will not be
released to
complete
work.
Medium High High
Specify in the charter
and the HRM section of
this plan that those
employees from other
functional areas be
assigned to the project
manager for the
duration or their work
tasks plus the review
time.
3 Resourcing is
removed
from this
project to a
higher
priority
project
Medium High High Make sure that the
charter includes full
transfer of control of the
budget for this project
to the project manager
and accountant. Ensure
that there is a
commitment in writing,
via the charter, to the
Page 63

72. full funding of this
project.
4 Managers
and editors
do not
complete
their
assigned
duties in the
timeframe
agreed
Medium Medium Med
Provide clear ‘hurt
statements’ detailing
what happens if the
deadline is not met
when presenting drafts
or decisions to senior
managers.
5 Lack of
interest or
support from
senior
management
Medium Medium Med
Inform the sponsor of
this issue and progress
on it at each meeting. If
a sense of this is
happening, then inform
the sponsor and have
them reinvigorate the
excitement towards the
project at their level,
whilst managing the
project.
6 The quality
of the staff is
not high
enough
Medium Medium Med
Train the staff to be able
to do what is required
or reject some of the
names in preference of
more suitably
experienced people.
7 OH&S
requirements
regarding the
transport of
some or all
of the raw
materials –
causes a
delay in
research and
analysis stage
based on
interpretation
of the law.
Low High Med
Sign up to get updates
from the law websites
and OH&S regulators
for each state. This will
notify us of any change
well before it occurs.
8 The time
allocation is
insufficient
Low High Med
As with financial, ensure
every key stakeholder
has a copy of the
schedule. Again, ensure
the change management
processes are followed.
9 The drafters
do not
produce
something
Low Medium Med Ensure meetings are
conducted specifically
to convey expectations
for researchers, analysts
Page 64

73. that requires
minimal
editing
and customers.
10 Conflicts
with
resources
from another
project
Low Medium Med
As with the above
financial resource issue,
ensure that there is
documentation (charter)
to demonstrate the full
control of the budget is
with the project
manager and not the
functional business
areas.
10.3. Risk Response Planning
If a risk comes to fruition all team members must follow the
same process. This is detailed in the table below.
Table 16: Risk Response Plan
Step Processes required
1 Inform all team members and the PM and fill out a line in the risk register
– see template 1/3 below.
2 The PM must review the risk and inform the Risk Management
Committee of the risk and a timeline and strategy for the mitigation of the
risk. There is a template risk treatment schedule (template 2/3 below)
that must be completed as well as an action plan (template 3/3 below)
with more detail, to be filed for further use.
3 The PM informs all team members via identified communication methods
(email, bulletin boards and in person, where appropriate) of the new
addition to the risk schedule and action plans.
Table 17: Risk register, treatment schedule, and action
plan Templates
Template 1/3 – Risk Register
Risk Register
Compiled by:………………..…... Date:………
Reviewed by:…………………..… Date:……...
Function/Activity: ……………………………..
Category
Risk
What and
how can it
happen
Consequence Likelihood Existing
Controls
Level
of
Risk
Source: Adapted from City of Rockingham, Western Australia, 2008.
Page 65

74. Template 2/3 – Risk Treatment Schedule
Risk Treatment Schedule
Compiled by:……..…….……….. Date…….……
Reviewed by:……………………..Date……..……
Function/Activity:………………………….
Risk Possible
Treatment
Options
Preferred
Options
Risk
Rating
BEFORE
Risk
Rating
AFTER
Action
person
Time
frame
How will it
be
monitored
?
Source: Project Management Certification and Training, 2004.
Template 3/3 – Risk Action Plan
RISK ACTION PLAN
Item
Risk
Location/Function
Summary (RECOMMENDED RESPONSE AND IMPACT)
1) Proposed Actions
2) Resource
Requirements
3) Responsibilities
4) Timing
5) Reporting/Monitoring
Source: Project Management Certification and Training, 2004.
10.4. Risk Monitoring and Control
This section identifies the processes used to monitor and control
risks to the project either identified or not. It involves how to
report new risks, where risk knowledge is held (database).
10.4.1. Workaround plans
There will be risks that have not been identified previously that
may come up during the project. These will need to follow the
same identification processes that have been outlined in part
10.2 and the response planning that is identified in part 10.3.
Page 66

75. If the risk management committee deems that the risk is
substantial enough to impact the feasibility of the project in to
the future, then the corrective actions, detailed under scope
control (written change requests) must be followed and the
project and programme managers, stakeholders and customers
informed.
10.4.2. Risk Database
All identified risks; once paperwork is completed using the
identified templates is to be entered into the risk management
database. This will allow the risk management committee to
monitor and control all risks and assess if change management
needs to be implemented to avoid unexpected project failure. All
staff will have access to add or retrieve information from this
database because all staff will need to deal with different risks as
part of their ongoing duties.
Page 67

76. 11. Project Procurement Management
The Procurement Management sets forth guidelines and
processes that are to be followed to ensure measurable and
satisfactory performance against contractual obligations. This
section describes the functions and activities necessary for the
team to manage supply chain management. Additionally, it
defines and documents the selection, procurement and
management of suppliers and vendor efforts, ensuring quality
performance and on time delivery at the best-cost value to the
organisation.
11.1. Procurement Planning
The purpose of this plan is to describe the processes, governing
procedures, roles and responsibilities, personnel (experience),
and tactical steps to be used in executing the subcontracts,
purchase orders and material logistics scope for the supply chain
management. It includes acquiring the raw materials from the
suppliers and the logistics services provided by external sources
that are not part of the organisation.
According to the WBS and staff responsibilities (Section 8.1.3),
the two research officers will research the raw materials and
suppliers and analyse the market condition. The project manager
will decide the Terms & Condition for working with the
suppliers, which will be mentioned in the contract that will also
contain the cost and quality standards of the raw materials and
the machinery required.
It will be decided by the project manager and the project
accountant whether to rent or purchase an item. A Time and
Material (T&M) contract will be signed between the
organisation and the suppliers. The contract documents will be
held by the project manager and can be reviewed from time to
time according to the situation. The Statement of Work will be
provided by both parties detailing how they are going to work
and what the parallel arrangements will be if problems arise. This
will be open to change, but must follow the stated change
management procedures outlined in Integrated Change Control.
(Systems Integration Division 2004)
Page 68

77. 11.2. Solicitation Planning
It involves the preparing of the documents needed to support
solicitation. These are controlled documents, maintained by
the organisation. They will be available through contacting the
PM only, which all of the supplier’s administrators and buyers
will have access to. The project manager will act as a
Procurement manager. The procurement manager will lead
the effort to develop the solicitation document that states the
business need and requirements for the desired work. The
solicitation document consists of a Statement of Work and/or
Request for Proposal .The solicitation document shall be
developed using the guidance of the procurement manager
and the managing director (Systems Integration Division
2004). It will clearly describe the tasks and deliverables
required, and the contract terms that will apply. The users and
stakeholders of the desired product/service will be consulted
when developing the solicitation requirements and required
deliverables to ensure the solicitation document accurately
reflects their business needs (Systems Integration Division
2004). The solicitation document will include the requirements
to be fulfilled as part of providing the product or service, either
by referencing a separate requirements document (e.g., a
Requirements Specification Document) or by explicitly
including them in the solicitation document. It will also include
or reference the evaluation criteria that will be used to
evaluate and accept the requested product or service
(Systems Integration Division 2004).
.
The procurement manager will develop a Proposal Evaluation
Plan for valuating the proposals. It will describe the specific
evaluation criteria (such as qualifications, methodology for
completing the work, references and cost), and the methods that
will be used to apply the criteria. The criteria must be
documented and approved by the Procurement manager prior to
the release of the solicitation document. The procurement
manager can/may recruit additional team members or other
stakeholders to assist with the proposal evaluations based on the
stakeholders’ expertise in pertinent subject areas and their past
experience with solicitations. The Procurement Manager will
train the proposal evaluation team members on the purpose of
the solicitation, the requirements, evaluation criteria and
evaluation methods for the solicitation prior to reviewing any
proposals.
Page 69

78. 11.3. Solicitation
The procurement manager will work with the MD to conduct
the solicitation in accordance with the process requirements of
the chosen contract type and according policies and practices.
The Procurement Manager will provide a mechanism for
bidders to ask questions and to receive clarification and
responses to the requirements of the solicitation and the
solicitation process (Systems Integration Division 2004). The
Procurement Manager will lead the evaluation team members
in the review and evaluation of received proposals. The team
will evaluate the proposals in accordance with the Proposal
Evaluation Plan and documented evaluation criteria, and will
select the most qualified bidder based on the evaluation
criteria (Systems Integration Division 2004). The bidders’ cost
and schedule estimates will be reviewed for
comprehensiveness and reasonableness. The winning will be
selected based on the proposal meeting the solicitation
requirements and providing the best value based on scoring
from the evaluation process (Systems Integration Division
2004).
11.4. Source Selection
The project manager and his team members will use experience
and judgment in determining the number of bids and the most
advantageous combination of price, quality, delivery, service and
dependability when making purchases for the Company. It is
organisation policy to procure material and service requirements
competitively to the greatest extent possible. Therefore, the
project manager and his team members apply their skill and
experience to conduct negotiations and obtain competitive bids
whenever it is in the best interest of the company and its
customers (Systems Integration Division 2004).
11.5. Contract Administration
Once a supplier has been selected, and at the conclusion of
negotiations, the selection must be approved by PM. Once those
approvals are obtained, the contract is awarded to the supplier.
The contract will be specifically tailored for inclusion of all
Customer data elements, Statement of Work and Specifications.
(Systems Integration Division 2004)
Page 70

79. All data is shown on the contract including but not limited to
part number, quantity, schedule, cost, terms and conditions,
quality codes, etc. Detailed information, special instructions, and
other requirements will be also included in the contract. The
contract documentation will be maintained in a uniform file
format as mandated by the PM and is maintained in the contract
administrator’s office file. Suppliers will be monitored on cost
and schedule performance to their original commitment.
Monitoring consists of routine telephone calls, e-mail, formal
monthly Technical Exchange Meetings (TEM), which cover
contractor Cost and Schedule Performance, and allows the
parties to discuss any other issues or concerns, such as staffing
issues, contractual issues, etc (Systems Integration Division
2004). Supplier progress on each item procured includes, but is
not limited to, a review of adherence to quality requirements,
completion percentage based on original schedule commitment,
critical materials deliveries, tests, key progress demonstrations,
risk mitigation points, and cost incurred to date. Design Reviews
and Technical Exchange Meeting minutes are the responsibility
of the Program Manager. The performance of the four (4) Cost
plus Award Fee contractors will be formally evaluated every six
months, measured. Formal criteria will be issued prior to the
start of the evaluation period, which outline specific criteria that
the contractor must adhere to (Systems Integration Division
2004).
11.6. Contract Closeout
Once the contract is complete, the suppliers will send a written
letter to the organisation that the contract is complete. And if
the organisation wants to renew it the PM will have the power
to renew it.
The PM will have the power to terminate the contract in
between if the suppliers are not fulfilling the evaluation process.
And another supplier will be given contact.
Page 71

80. 12. Conclusion
The focus was in planning the development of the strategy to
ensure the construction of intelligent supply chain systems, in a
manner that guarantees agents use the best communication,
coordination and problem solving mechanisms. This should have
minimal programming efforts, so the whole strategy is planned
keeping in mind the importance of scheduling, budgeting,
accuracy/quality, human resources, communication, risks and
procurement to develop the strategic plan in every possible
detail. As the company enters the new market of bio fuel
production for the aviation and military aviation industries, it is
important to develop a strategy to secure the supply chains and
raw materials required for the production of Bio fuels.
The benefits of the outcome of this project is that it will allow
the program manager to execute a strategy that will enable the
company to secure raw materials and resources without
expending additional resources (human and otherwise). Another
benefit is the ability for the company to secure resources in a
structured and orthodox way, further ensuring efficiency
savings.
The future requirements of this project will be a follow up
execution project whereby the strategy created is carried out to
physically create strong supply chains.
Strict adherence to the policies and procedures contained within
the above project plan will enable efficient and effective
execution of the objectives. This will mean that there will be a
coherent and executable strategy once this plan has been
completed.
Page 72

81. 13. Appendix 1
Page 73

82. 14. References
Australian Human Resources Institute (2008). Available :
http://www.hr-careers.com.au/resources/salary-serveys.cfm.
Accessed on the 5th of October
Australian Refrigeration Council Ltd, (2008). Risk Management
Planning Template. Available: http://www.arctick.org/pdf/Risk
%20Management.doc. Accessed 1 October 2008.
Brooke B., Cen C., Reece S., and Andrea Freeman (2006).
Project Plan: Management of Libraries and Archives.
Available:www.slais.ubc.ca/COURSES/libr559f/04-05
wt2/portfolios/C_Campbell/Files/final-PMP/PDF/Adobe
Acrobat. Accessed 3rd of September, 2008
City of Rockingham, Western Australia, (2008). Risk
Management Plan Template. Available:
http://www.rockingham.wa.gov.au/pdf/Health_and_Environmen
t/public-events/risk-management-plan-template.doc. Accessed 1
October 2008.
Crisologa Lapuz (2008). Project Management -sample project
plan templates. Available:
www.docstoc.com/search/sample-project-plan-templates/ -
53k . Accessed 3rd
of September 2008
Debbie Whitson (2003), Project Plan for Odessa Mobile
Technology. Available: http://www.search.org/files/doc/sample
%20project%20plan.doc
sample project Accessed on the 3rd of September, 2008
Infosys Technologies, (2008). Creating Supply Chains In Flat
World. Available. http://www.infosys.com/default.asp.
Accessed 3rd of September, 2008.
Mayberry County Nonprofit Technology Assistance Agency
(NTAA) (2005). Sample Project Plan for the TechAssist
Program. Available:
http://www.LearnShareProsper.com/tools/project_plan_sample.
pdf . Accessed on the 3rd of September, 2008
Meredith J. and Mantel S, Jr. (2006). Project Management. A
MANAGERIAL APPROACH. 6th
ed. John Wiley & Sons, Inc.
Page 74

83. Production Planning. (2008). Supply Chain Management.
Available:
http://www.productionplanning.com/supplychainmanagement.as
p. Accessed 1 September 2008.
Project Management Certification and Training, (2004). Project
Manager’s Articles and Templates. Available:
http://www.4pm.com/articles. Accessed 1 October 2008.
Project Management Institute (2000), A Guide to the Project
Management Body of Knowledge (PMBOK Guide), 2000
edn. Project Management Institute, Newtown Square,
Pennsylvania, USA
ROI Institute (2004) Sample plan.
Avalable :www.roiinstitute.net/tools/11/ - 5k. Accessed on the
3rd of September, 2008
State Services Authority. (2004). Risk Management Matrix.
Available:
http://www.ssa.vic.gov.au/CA2571C900701857/W
ebObj/risk_assessment_matrix(table)/
$File/risk_assessment_matrix(table).pdf Accessed
on 20 September 2008.
Systems Integration Division (2004), SID Policy on
Procurement Management. California Health and Human
Services Agency Data Centre.
http://www.bestpractices.osi.ca.gov/sysacq/downloads/OSI
%20Policy%20on%20Procurement%20Mgmt
%20(2452_6).PDF Accessed on 5th
October 2008
Page 75