PROJECT MANAGEMENT
Contents
Introduction
Define a project
Scope of a project
Work breakdown structure
Gantt Chart
Network Diagram
Project Life Cycle
Project Implementation
Investment Appraisal
Risk Assessment of a Project
Project Requirements
Conclusions
Recommendations
References
Project management is in essence the entire set of activities like planning, organising and managing all efforts to ensure the successful completion of a project. The primary steps involved in project management include the development of a project plan including identifying the goals, and objectives of the project as well as determining the steps and processes needed to achieve the objectives. This includes quantifying the objectives into smaller tasks that can be easily managed, identification of resources needed for the project as well as completion timelines and budgets. The implementation of the project plan while ensuring the accuracy of results is the final stage of project management.
Bearing these factors in mind, it would be appropriate to identify the core requirements that Hotel Communications Ltd. would need to undertake for the successful completion of installing, testing and commissioning the IT and communication infrastructure at the City Towers. The success of this project is expected to pave the way for similar work in this niche market. Thus, a significant burden that is associated with the execution of this project is that it would mark the entry of Hotel Communications Ltd., into the higher end and more profitable market of five star hotels. Although the company has been catering to the IT needs of the hospitality industry, their clients have been on the lower end of the spectrum. This project expected to showcase their skills and help them make inroads into the higher paying segment. They are expecting to use this project as a launching pad for meeting their foray into newer markets. Therefore, the success of this project is of great importance to the company.
Generally speaking, a project may be defined as a group of activities that cannot be met within the normally operational limits and is always temporary as well as unique in nature. The unique deliverables created by a project may be classified into services, products or even results. The effectiveness and use of a project is based on achievement of objectives. Therefore projects must be specific, measurable, achievable, relevant and time bound. Unlike operations which are repetitive and continue to be an on-going process; projects are temporary. They have a definitive timeframe with a well-defined beginning and end. It is also seen that a project is developed or undertaken in clearly defined steps that incremental in character and is referred to as Progressive Elaboration.
The project on hand is the contract awarded to M/s Hotel Communications Ltd., for the installation, testing and commissioning of the IT and communications infrastructure for the City towers, a hotel that is being opened in the Docklands area of London. The primary objectives of this higher-end hotel include setting up the IT and communications infrastructure for the upcoming hotel. The various requirements include that the IT facilities are available to both the booking as well as marketing sections of the hotel management team. While this facility is not being provided along with the launch, it would be commissioned at a later date. However, management requires that the provision for the same be provided as part of this project.
The scope of a project defines its boundaries and parameters. The scope statement is used to define the scope as well as deliverables of a project. It helps identify the work needed to complete the defined deliverables as well as communicate the same among all stakeholders. Therefore a project’s scope statement includes the boundaries of a project, its strategies, constraints and assumptions as well as cost estimates a cost-benefit analysis in addition to scope description, deliverables, acceptance criteria, purpose and justification for undertaking the project.
A higher-end hotel, the management of City Towers want the provision of radio and TV in all rooms. Furthermore, they also want IT facilities including video conferencing, projectors and Wi-Fi availability in the conference centres as well as the meeting rooms in the hotel. Since the hotel is targeting a higher end clientele, who are not ready to compromise on quality, the utmost care has to be taken while determining the IT facilities not just on the conference and meeting rooms but across the hotel. Since the hotel is expected to cater to businesses they are keen on projecting a highly professional image with facilities that would help companies conduct their businesses with finesse. Facilities that are deemed important for the hotel include CCTV and internet connectivity. They are also keen on designing conference rooms with advanced technologies that would be useful for organisations to conduct their businesses.
A highly valuable and an important part of project management, the work breakdown structure is used to organise the work of the team into manageable sections. Completely based on the deliverables, the WBS breaks the entire process into smaller components that can be easily managed. The primary purpose of the work breakdown is to help the project manager since it would be easier to oversee and manage the smaller activities with greater efficiency rather than looking at the larger tasks. In essence the project manager can work on the micro level and allocate tasks to team members. This method helps ease the work flow while significantly increasing the ease of completing the task on hand. It is also easier for the project manager to increase his efficiency while completing the complex activities in this manner. When following the work breakdown structure, it is essential to ensure that the tasks are both independent and measurable within the clearly defined limits as specified in the scope.
A commonly used tool in project management, the Gantt chart defines each task and the time frame for its execution. The advantage of using the Gantt chart is that it makes it easy to understand the steps for completion of the project. This helps ensure that successful execution of the project since multiple timelines are incorporated into a single document. The Gantt chart helps organise thoughts and set realistic timeframes that can be placed in a highly visible place. The disadvantages of Gantt charts lie in the fact that they can become highly complex for advanced projects. Furthermore, the size of the bar is not indicative of the amount of work involved in each task. However, it does not indicate either the quantum of resources needed for the project or the man hours that would be needed for completion of the task.
A core project management tool the Gantt chart for this project is shown below.
· – Legend of the so the managers will know what is it,
Different phases of a project include feasibility studies, project planning, governance and implementation. Determining the success criteria of the project, the benefits and resource allocation as well as risk assessment and management are all critical elements of the project life cycle. Implementation of the project lifecycle needs to be completed using the WBS for easy management by the project manager. The final project needs to be evaluated to determine if it has achieved all objectives as stated in the scope of the project. Projects are time bound and hence it is critical that all team members execute their tasks with due diligence and ensure that there is minimum room for error as it would adversely affect the smooth implementation as per schedule.
Controlling the implementation of the project is needed for ensuring that it is executed in a time bound manner and fulfils the goals and objectives as laid out during the planning phase. The primary objective of product implementation is the conversion of project inputs into achieving the expected objectives within the predetermined timeframe. The process of project implementation includes an entire series of tasks that must be planned, operated and controlled for optimum results and would include the utilisation of resources needed to achieve the objectives. Hotel Communications Ltd. is a company well versed in the filed albeit on a lower scale. They thus lack in confidence when it comes to determining their capability for execution of the City Tower project
The project manager needs to assert control and be aware of all aspects of the project as well as the working of all team members. This single point control would suffice to ensure the implementation is as per the planned framework and within the specified time. Furthermore, it is important to remember that implementation is a simple process of carrying out the predefined tasks as per the work plan. While the execution may seem to be a difficult task, the fact remains that adhering to the work plan is sufficient to ensure that the project objectives are achieved as per schedule. The same applies to the City Towers hotel, wherein, the project manager after proper feasibility studies has laid out detailed work plans for the execution of the project.
Investment Appraisal refers to the techniques if determining the feasibility of an investment. Costing and Budgeting are needed to determine the Investment and the Return on Investment. Appraisal may be financial, legal, operational, social environmanetal or risk related. The most common appraisal is financial since it is quantifiaale and can be used to determine the return on investment,an essential factor to attract invetsors for a projct. Some of the common methods of Finacail appraisal includes Net Present Value, Internal Rate Return, Payback Period, and Accounting Rate Return. Each of these techniques have their own advantages and disadvantages.
The payback method is the most simple appraisal method used in project management. This method is used to determine the time period when the net cash inflow is equal to the cash invested in a project. Not a highly sophistiocated technique, the payback methid is usually used as a screening process. The ARR or accounting rate of return on the other hand is used to compute the profit as percentage of costs incurred. This mmethid however does not consider the time element of either epenses or income and is usually used only for shorter projects. Techiques like the NPV and the IRR are preferred for appraiwsal of most projects as these discounted cash flow technoques are useful for detrtmineing the net benefits from an iinvetsment. IRR os determined as that value when the NPV equesl zero.
Budget for City Tower project
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Budgeting Head |
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Remarks |
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Purchase of Assets |
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CCTV |
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Projector Air conditioners |
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Computers and accessories |
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Telephones |
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TV and Radio |
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Misc fixture’s |
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Installation charges |
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CCTV |
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Wi-Fi |
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Computers |
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Networking |
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TV |
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Air conditioner |
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Radios |
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Repairs and Maintenance |
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Human Resources |
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Risk associated with a project need not necessarily be negative. Thus the response to risk would be done on the basis of the type of risk observed. Thus risk response would include exploiting the positive risk by sharing as well as enhancing the risk through root cause analysis as well as acceptance of opportunities that come on the way. The analysis should mention the competitive skills required by the Project Manager and the project management process. Include examples of the processes, concerns, leadership qualities, administration, the stages of Project Life Cycle, and control problems associated with the management of the project lifecycle of this major project.
The project requirements include all resources required for the project. The human resources, their skills and knowledge required for the execution of the tasks is of paramount importance since these skill sets are needed for converting the project inputs into the expected outputs as defined in the scope and objectives during the initial planning phase.
The City Tower project is a prestigious project for Hotel Communications Limited and they are not taking any chances with regards to its execution. Despite their experience in the field, the company has felt the need for a project manager well versed in larger projects. They feel that this recruitment would give them a significant head-up when working on this showcase project which is expected to push them into the larger league.
It is recommended that the City Tower project recruit a networking expert who is able to handle both computer networking and CCTV installation. This will help reduce cost by ensuring that regular maintenance and repair are managed internally. Furthermore, it is also recommended that the provisions requested by the Hotel management are not included in the main budget. However, the costing for the same needs to be included so that it becomes easier to make the appropriate provisions as requested by the client.
References
Atkinson, R. (1999). Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International Journal of Project Management, 17(6), pp.337-342.
Grover, B. (1990). Trends in IT project management. OR Insight, 3(3), pp.9-12.
Hatefi, M. and Seyedhoseini, S. (2012). Comparative Review on the Tools and Techniques for Assessment and Selection of the Project Risk Response Actions (RRA). International Journal of Information Technology Project Management, 3(3), pp.60-78.
Khazanchi, D. and Reich, B. (2008). Achieving IT project success through control, measurement, managing expectations, and top management support. International Journal of Project Management, 26(7), p.699.
Martinsuo, M. and Lehtonen, P. (2007). Role of single-project management in achieving portfolio management efficiency. International Journal of Project Management, 25(1), pp.56-65.
Munns, A. and Bjeirmi, B. (1996). The role of project management in achieving project success.International Journal of Project Management, 14(2), pp.81-87.
Raz, T. and Michael, E. (2001). Use and benefits of tools for project risk management. International Journal of Project Management, 19(1), pp.9-17.
Rose, K. (2014). Personal Effectiveness in Project Management: Tools, Tips & Strategies to Improve your Decision-making, Motivation, Confidence, Risk-taking, Achievement and Sustainability.Project Management Journal, 45(2), pp.e1-e1.
Ward, J. and Daniel, E. (2013). The role of project management offices (PMOs) in IS project success and management satisfaction. Journal of Enterprise Information Management, 26(3), pp.316-336.
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