Project Management Group - Case Study Example

Project Management Name Professor Date 2. Background Mr. Henry has approached our company on recommendations of building a restaurant. The demand for restaurants have been on the rise over the years and this is can be greatly attributed to the increase in people thus the existing ones fail to meet the needs of the existing population. Additionally, people have over time become so busy and thus it is hard for them to prepare meals at homes. Additionally, people are now in needs of healthier food choices since they have become more health conscious and this restaurant aims at offered food and drinks that are healthy for all generations. By targeting people of all age groups they will better placed and positioned as compared to other restaurants in the area. 2/61 Hindley St, Adelaide SA 5000 also has a great number of business premises as this means an additional increase in number of people who are in need of restaurant services during the different times of the day. The restaurant will also offering catering services and spaces where companies can in the area can make use of these services when the facility is established. In order to address the existing issue of insufficient restaurants in the area, the proposal to come up with a restaurant in 2/61 Hindley St, Adelaide SA 5000 was made by Mr. Henry and thus he can be considered as the pioneer and the greatest stakeholder of this project. Based on this he seems to e really committed towards contributing a great portion of the investment and at the also offer his expert advice in regard to strategic management of the project and this is greatly attributed to the wide range of knowledge that he has on matters managing and operating restaurant in the past. Mr. Henry has being in the hotel and hospitality industry for about fifteen years and he has worked with some of the most reputable and successful hotels in the industry. To ensure that all the costs and the associated budget are met for this project, around 5 investors or entrepreneurs are encouraged and they are supposed to invest and ultimately become shareholders in the project. When the project is fully operational, it has been agreed that the returns gained from the investment will be shared among the stakeholders and this sharing will be done based in the shares that each investor have contributed towards making the restrau8nat success. The proposed name of the project is: “Henry’s Restaurant”. This name was discussed and agreed on by all the pioneers and the shareholders of the project. Problem statement Despite the fact that there exists a great number of restaurant, there still seems to be a shortage in number of restaurants that are available in 2/61 Hindley St, Adelaide SA 5000 and this means that a great number of restaurant are full beyond their capacity while some of them have to wait for a long period of time before being served. This at times forces people to look for alternatives which are not healthy, for example, there are times when they are to take snacks instead of wasting time while waiting for the services to be delivered. The new restaurant will also be of great benefit since it will offer additional products than the already existing ones and this will play an essential role in attracting a greater clientele. Solution Investors in various industries need to come up with ideas that they can fund and more so the investments that seems to be solving the various needs of the community. To open up another restaurant that is priced relatively in 2/61 Hindley St, Adelaide SA 5000 will play an essential role by responding to the high demand for the services offered by restaurant and thus it will ease the already existing problem though not completely but to a great extent it will be of great benefit to the people living in 2/61 Hindley St, Adelaide SA 5000 and it will also benefit the residents living close to 2/61 Hindley St, Adelaide SA 5000. Project goals The main aim or goal that this project aims at achieving is by coming up with a restaurant in the 2/61 Hindley St, Adelaide SA 5000 is solving the shortage of restraint in the area and meeting the needs of the people living and working in the area by offering products and services that are relatively priced as compared to the already existing restaurant in the area. The total budget that will be allocated to the restaurant project is $550,000 and the project needs to be completed within a time frame of two months. Project objectives The management of a project calls for a clear set of objectives and the objectives describes the outcomes of the project. Increase product and service delivery by introducing a relatively priced restaurant within 2/61 Hindley St, Adelaide SA 5000. Enhancing the quality of services and products offered and this will effectively be done through marketing promotions and Lastly, earning profits for the shareholders of the project and this will also enhance the good economic investment for the investors of the project. 5. Outcomes The company has a great potential when it comes to undertaking the project. another potential benefit for the company is that in instances that they undertake the proposed project well they are likely to gain a lot of referrals to other companies and this will be of great benefit since through that they are more likely to have an increase in the client base and this will mean additional profits for the company and thus the investors will attain considerable amount of returns on their investments in the restaurant. The section below details the project outcomes i. Meet the needs of the client and this will be done by working in closely with them and having a clear view of what they expect in the end. ii. Consolidate and make clear calculations of the resources that are needed to ensure that they get adequate funding and that all parts of the projects are catered for. iii. The restaurants will ease the congestion that exists in other restaurants since a considerable number of clients are likely to move to the new restaurants. iv. The residents will also be offered with relatively priced products and services and at the same time they will have a great choice of selection in terms of the restaurants they wish to dine in. 8. Risk Like all other projects, the restaurant project is also likely to face a number of risks and at the same time the risks needs to be addressed on a timely basis to ensure that the project is completed on time and at the same time based on the set budget (). Based on all the risks that are associated with the project there exists those risks that can be rated as high risks and they include the following risks: Project issues not been resolved during the appropriate time Lack of full support and commitment from the various stakeholders involved in the project Lack of collaboration among the team members Other team members have other priorities and thus making the project to be lugging behind in terms of schedule A tight schedule which offers less amount of time for the completion of the project. Unfocused employees High workload Late supply of the required resources Exit of some of the investors Under budgeting Failure of specialists to run up for their allocated tasks Late delivery of supplies Risk management plan Risk management entails the identification, assessment as well as the prioritization of risks and this is closely followed by the coordination and economical application of all available resources with the aim of minimizing, monitoring as well as controlling the probability as well impact of the unfortunate events or the maximization and realization of the opportunities. The main risk objectives of the risk management plan is that it will ensure that uncertainties that may crop up in the project do not in any way deflect the endeavors of the project and in instances when they occur the effects are not very severe (Flyvbjerg 2003). There is a detailed risk management plan for the project in the appendix section. Based on the risk management plans there is an outline for the various risk and the severity of risk. In addition to the plan there is also a preventive action plan as well as a contingency plan. The preventive action plan outlines that plans that need to be put in place so as to avoid the risks (Hubbard 2009). The contingency plan offers actions that need to be undertaken and more so is the risks occurs at any time during the project. References Flyvbjerg, B 2003, Megaprojects and Risk: An Anatomy of Ambition, Cambridge University Press, Cambridge. Hubbard, D 2009, The Failure of Risk Management: Why It's Broken and How to Fix It, John Wiley & Sons, New Jersey. Appendix 1: Risk Matrix Likelihood Rating Consequence rating Severe Major Moderate Minor Negligible Almost certain Very high 4 Very high 8 High 5 Medium 1 Low Likely Very high 9 Very High 10 Medium 3 Medium Low Possible High 7 Medium 2 Low Low Low Unlikely High 11 Medium Medium low Low Rare High 12 Medium 6 Medium low Low Appendix 2: Risks Description of the risk Category ID Likelihood Priority score Rating Project issues not been resolved during the appropriate time Issues 1 60 40 Medium Lack of full support and commitment from the various stakeholders involved in the project Support 2 40 40 Medium Lack of collaboration and effective communication among the team members Communication 3 40 50 Medium Other team members have other priorities and thus making the project to be lugging behind in terms of schedule Schedule 4 80 90 Very high A tight schedule which offers less amount of time for the completion of the project. Schedule 5 60 80 High Delay of project approval Support 6 40 50 Medium Electrical risks Support 7 60 80 High Plumbing risks Schedule 8 80 90 Very high Delay in research and ordering Schedule 9 80 90 Very high Injuries when panting Support 10 80 90 Very high Poor and inadequate decoration Support 11 60 80 High Inadequate disposal of old equipment Support 12 60 70 High Appendix 3: Risk Management Plan Rating 1D Preventive measure Action resources Action date Contingency actions Action resources Action date Medium 1 Ensure that there is effective communication All project team members Ongoing Make certain that the sponsor have an influence and aids in resolving conflict All project members Ongoing Low 2 Ensure that there is effective communication with stakeholders All members of the project ongoing Dedicate time to make inquiries when needs arises All members of the project Ongoing Medium 3 Ensure that there is effective communication with stakeholders Project Manager ongoing Dedicate time to make inquiries when needs arises Project manager Ongoing Very high 4 Build some flexibility in the project Project manager Ongoing Timely review of schedule Project manager Ongoing High 5 Build flexibility in the project Project manager Ongoing Timely review of schedule Project manager ongoing High 6 Starting early to cater for any delays Project manager Ongoing Ensure that everything is done before hand Project manager low 7 Ensure that the right equipments are used Project manager Ongoing Having engineers in place to deal with such issues Project manager Ongoing Medium 8 Make sure that all necessary measures are taken Project manager Ongoing Making use of necessary and appropriate tools Project manager Ongoing Very high 9 Ensuring that research is done be knowledgeable people Project manager Ongoing Ensuring that research and ordering is done before hand Project manager Ongoing Medium 10 Making use of firm ladders Project manager Ongoing Having first aid people to deal with any issues that may crop up Project manager Ongoing Very high 11 Making use of the right tools for decoration Project manager Ongoing Making use of high quality materials for decoration Project manager Ongoing High 12 Ensuring that disposal is done in the right manner Project manager Ongoing Employing people who have adequate knowledge on disposal mechanisms Project manager Ongoing Read More