Conducting Gym Operations in the Australian College of Kuwait - Example

PROJECT MANAGEMENT PLAN PROJECT NAME: CONDUCTING GYM OPERATIONS IN AUSTRALIAN COLLEGE OF KUWAIT TEAM MOTTO: TOUCHING PEOPLE’S LIVES TEAM MEMBERS Shaima Al-Mutari Doaa Al-Ali Jasem Alfadalah COVER PAGE 1 1.0 Project background 3 1.1 Project definition 4 1.2 Project objectives 5 1.3 Stake holder analysis 6 1.4 Legal and ethical considerations 6 1.5 Project Schedule 7 1.6 Gantt chart including 10 project tasks 7 1.8 Human resource 7 1.8.1 Human resource required at the stage of refurbishing the gym facility. 7 1.8.2 Gym operations human resources 8 1.9 Physical resources 9 1.10 Bills 9 1.11 Project budget 9 1.12 Risk management 10 References 11 Appendix 1 11 Appendix 2 12 1.0 Project background The main sponsor of this project is Zain communication which is a communication company as the name suggests. Being the main sponsors of the project, the company will be the biggest share of the profits. The students who belong to the investing company will get additional discounts but the rival company students will be exempted from the discount. This type of fitness programme is supposed to be a professional business and associated service provider. So here it is aimed that a limited liability company is being run to promote a state of the art fitness centre what would offer its customers assortment of modern physical equipment and variety of features ensuring high quality workout. Education field which mostly involves technological studies and this kind of change in social environment means that exercise is becoming less and less part of our daily routine. There has been a clear shift in the paradigm related to out physically intense work schedule to working mostly on out computers and that stands true for our students and faculties as well. This would mean we now have audiences which are looking towards courses in fitness centres. In recent years health consciousness has also been on the rise and awareness of the advantages of a healthy lifestyle have further made progression in the demand from the society for more fitness and exercise options and some options for university and its people also. Providing a health centre or a gym facility is very important to the university and has come under the strategic plan for the coming future. Now this has given rise to an excellent business opportunity and a business plan is needed to tap this opportunity. This gym is established to quench the thirst of the members of the community in the university campus and its surrounding area for a new and better fitness centre. The main idea behind this facility is to offer both fitness and crossfit centre. By offering both kind of services in a unified manner and in harmony we are hoping from business front one facility pros would weigh out the cons of other and running it will being more business in a swift manner. Fitness centre would be able to server out around 100 people at the same time and will be fully equipped and crossfit instructors are also supposed to be at this facility to help those who are trying to start (Mankiw and Taylor 2008). 1.1 Project definition Most basic fundamentals of any fitness facilities to have qualified employees who are able to provide the great customer care and value them. They should be able to increase their knowledge while they have opportunity to work at this place. Other basics include provide spacious facility to meet high customer demands with modern equipment. Giving high quality service to increase the customer value helps in building a strong brand name. By combining crossfit and traditional services, certain uniqueness is to be demonstrated which would give the competitive edge (Sarre, 1987). The aim of the project is to decrease the unhealthy fat and increasing the stamina of the students on the whole and introducing healthy nutritional intake of current and potential customers in the coming year to show case their community service angle. Some of the features that this facility is going to provide to increase the uniqueness factor are to be able to give out combination of fitness and crossfit centre, availability of cards subscription in custom and other traditional time durations and customer guidance through the beginning phase of exercising. Various opportunities from the market perspectives have been taken into consideration as this place in the university has been vacant for a long time and it provides an ideal time to make it a potential target. This section would include no spa as university will not give its consent to it and uncertainty in finance as the main investors is profit oriented. Not only, but certain classes won't be able to take place at first, such as Zumba classes, Spinning, palate’s, etc... Moreover, at first the gym will need time to build its trainers and coaches in order to meet the expectations of the students. Furthermore, the price of the machinery and equipment will be a weakness at first due there expensive prices, however after that, it can be considered to be a strength. 1.2 Project objectives The aim of the project is to set up a facility under an education premises and keeping the promise of returning profits to the investors. This will achieved through Providing opportunities for maintaining the health of the campus patrons and surrounding community. To understand the impact of start-up costs, break-even analysis and estimated returns on the formulation of the business plan. To provide recommendations to the university and campus authorities regarding various regulatory formalities those are involved in conducting such a business. To be able to break-even of the funds being spend on the construction of the gym, within a period of one year Offering a high value wit assuring high quality and customer service. To provide a diversity of products within the gym paresis (Food and water catering machines, Classes, personal training, high quality equipment, highly trained staff.) 1.3 Stake holder analysis The zain company is one of the main stake holders of the project and they would aim to attract company employees to use the facilities. The attraction would be achieved through the company employee getting discount and the university grant would help to maintain the facility along with the brand name that would be recognized in that community which would Zain communication in their competition against their rivals such as Watinya and Viva telecoms. Zain communication will use the university facilities and this will reduce the start up cost and the time need for new construction. The university is another important stake holder. By the university giving out the facility it will be ensuring that the facilities are put to more profitable use. The health benefits that will result from the use of the gym facility will reduce stress on health facility and that there will be benefit of having students and employees who are health and much more productive. 1.4 Legal and ethical considerations There are several legal and ethical consideration that will come to play in the execution of this project. There is need to have a clear legal agreement between Zain Communication Company and the university with regards to set up and running of the facility. The operation of the gym should observe high safety standards. The trainers are to be highly qualified and they need to handle the gym attendant with respect, they need to ensure that the required dress code is adhered to. Injuries are likely to be experienced in the facilities during the set and operation stage. Such injuries may result into legal battles and the management needs to be prepared for such eventualities. 1.5 Project Schedule The project will involve refurbishing the room which will house the gym facility. The tasks which will be involved will include 1. Dismantling and removal of unnecessary structures and clearing of the room 2. Construction of washroom facility 3. Construction of changing room 4. Construction of gym office and storage facility 5. Installation of air-conditioning equipment 6. Laying new carpet on the flor 7. Fixing of wall mirrors 8. Procuring of gym equipment 9. Laying the equipment in the facility 10. Recruitment and orientation of gym workers 1.6 Gantt chart including 10 project tasks Tasks Week1 Week2 Week3 Week 4 Week5 Week6 Week7 Week8 Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 Task 9 Task 10 1.8 Human resource 1.8.1 Human resource required at the stage of refurbishing the gym facility. Project manager Civil engineering 10 years work experience The project manager earned $1500 per week Technicians 3 plumbers Certificate in plumbing All with work experience of 5 years and above and earning $300 per week 3 carpenters Certificate in carpentry and joinery with over fives experience All with work experience of 5 years and above and earning $300 per week 1.8.2 Gym operations human resources Gym manager Degree in Physical education and a diploma in human resource management Six years working in as a gym manager earning $2500 per month Nutritionist Degree in food and nutrition 6 years work experience Working on permanent basis at $2000 per month Six gym attendants Certificate holders in various education fields and also certificates for training in first aid. The attendants also have certificates for participating in various games including football and athletics. All six attendants working on six month contracts at $1000 per month 1.9 Physical resources Rehabilitation materials including timber, carpet, mirrors =$50, 000 Gym equipment including tread mill, push up benches, weight machines = $250 000 Furniture and other office equipment = $20,000 1.10 Bills Power cost per month = $5000 Water bill = $500 1.11 Project budget START UP COST Physical materials Rehabilitation materials $50 000 Gym equipment $250 000 Furniture $20 000 Total physical material expenditure $320000 Refurbishing workforce Time Rate Project manager 8wks $1500/wk $12000 3 Plumbers 4wks x3 $300 $3600 3 carpenters 6wks x3 $300 $5400 Total expenditure on refurbishing $21000 TOTAL START UP COST $341000 OPERATION COSTS RATE PER MONTH YEARLY Nutritionist $2000 $24000 Gym manager $2500 $30000 6 gym attendants $1000x6 $6000 Power bill $5000 $60000 Water bill $500 $6000 TOTAL OPERATION COSTS $126000 BUDGET SUMMARY TOTAL START UP COST $341000 TOTAL OPERATION COSTS (IST YEAR) $126000 TOTAL COST $467000 1.12 Risk management Category Prob Risk Mitigation Personnel availability Low Personnel involved in the refurbishment and operations are expected to be present Close supervision Personnel skills Low Personnel assigned to project lack skills to fulfill their duties The personnel are highly qualified in their areas of specialty Schedule Low The facility delivery goes beyond 8 weeks Enough time being allocated to each activity Costing Medium Proposed budget does not give finer details Review budget to include each item Change control Medium There might be changes in costing during project time Ensuring change control process is established that will ensure limits to changes References Mankiw, N. G. And Taylor, M. P. (2008). Economics. London: Pat Bond Sarre, R., (1987), Leisure Time and the Law. CCH Sydney Australia Appendix 1 The approach taken by the project exhibit modern theories such as system approach, team building and chaos theory. The system approach has a considerable effect on management science and the way an organization can be looked at. A system can be taken as being a collection of parts that have been brought together so as to accomplish one goal. The system can be considered as having various inputs (such as the raw materials, people, money and technologies); processes including planning, motivating organizing and controlling. The system will also have outputs which may be in form of services or products while the outcomes can be improved quality of life and productivity. All this aspects have been exhibited in the project. The project has a project manager during the refurbishing stage and gym manager at the operation stage. This can be seen as recognition that there is a system which needs central coordination. Tom Peters (1942) is an advocate of the Chaos theory. The theory recognizes that just as the way is exhibited in global events the events in any organization are chaotic. The theory recognizes that the events in any organization will never be fully controlled. The flexibility in time allocation of various tasks may be seen as recognition of this theory. The other theory is the team building theory. In this theory there is emphasis on best practices, aiming at having continuous improvement and quality circles. This theory is highly reliant on teamwork. The gym workers will be expected to work as a team in order to deliver good results. Appendix 2 Reflection In the process of proposal writing the proposal and the project plan the group members have learned a lot. It was an opportunity to work together and to appreciate each others talents. Each of the group members was to keep time because a lot was to be covered within the stipulated period. It was interesting to discover things with refurbishment of houses as the challenges involved were learned including the cost of materials, and where to buy them. Through the project a lot was also learned of the types of equipment required in a modern gym and the prices of various equipment. The legal issues involved helped the group members to learn about execution of contracts, the implication of injuries in a gym among other things. Read More