General Aviation Hangar Restoration - Case Study Example

GENERAL AVIATION HANGAR RESTORATION of Table of Contents Table of Contents 2 Introduction 4 Scope ofProject 4 Estimated Budget 6 Project Duration 8 Management Processes 14 Human Resources 14 Material Resources 15 Risk Statement 15 References to other project planning documents 16 Conclusion: 17 References 18 Appendix: 19 Appendix 1: WBS: Network Diagram 19 Appendix 2: Cost allocation 20 Appendix 3: Cost Summary 21 Appendix 4: Resource Sheet 22 22 Appendix 5: Task Usage 23 Appendix 6: Team Planner 24 Appendix 7: Gantt Chart and Project Entry Table 25 Appendix 8: Resource Cost Summary Report 26 Introduction Project management planning and implementation processes have evolved with increasing number of complicacies in project design and development. According to Baker, Murphy & Fisher (2008), project planning process in the contemporary scenario considers the practical factors influencing the project activities and the probable risks which have to be assessed within the planning process. The project considered in this report focuses on the renovation of an aviation hangar situated in the General Aviation Airport. The project will develop on behalf of CEN-CONSTRUCT. The project plan initially developed was not appreciated by the client as the criteria for deadline were not met. The report will focus on realigning the client requirements with the existing project plan by implementing crash activities and reducing the overall duration of the project. Scope of Project The scope of the project in accordance with the given planning of the Hangar Renovation project was to redesign the entire hanger within a certain period of time so that the client can bring in the Cessna 310 twin-engine plane. However, the existing plan was developed with the help of PERT system which reflected that the entire project could be completed within a time period of 67.9 days and the total budget was estimated to be $46900 which was not suitable for the client. The new scope for project redesign process is to ensure that all the activities of the project are completed within a period of 55 days. The selected method of reducing the overall time taken for the project was done by using crash action (Belout & Gauvreau, 2004). However, the crash also results in additional costs as more deployment of resources will be needed with increased work hours. Figure 1: Work Breakdown Structure The WBS developed reflects the overall project activities have been segmented into 6 groups. This has allowed the project team to focus on individual allocation of resources and also assign the roles and responsibilities of the work resources in a specific manner. Considering the scope of the project, the primary objectives of the project was to reduce the lead time of the project by inclusion of crash activities which reduces the overall slack of the operations (Harrison & Lock, 2004). However, it has been estimated that inclusion of crash will increase the budget by almost $15000. Estimated Budget On the basis of the obtained contract for hangar renovation, the following budget has been formulated. Activity no.  Activity Type Estimated costs Estimated cost of crashing Net costs of the project post crashing 1 Establish customer specification and budget $800.00 $2000.00 $2800.00 2 Design new hanger features $1,500.00 $4060.00 $5560.00 3 Agree and sign contracts $3,000.00 -$2440.00 $560.00 4 Buy materials $3,000.00 -$1780.00 $1,220.00 5 Removal of redundant fixtures $500.00 -$197.00 $303.00 6 Clean and strip floor $4,000.00 -$900.00 $3,100.00 7 Set pipes and valves $4,000.00 -$2485.00 $1,515.00 8 New electric wiring $5,000.00 -$2374.00 $2,626.00 9 Install ventilation and air conditioning ducts $6,500.00 -$4480.00 $2,020.00 10 Install toilet and shower $4,500.00 -$2850.00 $1,650.00 11 Install storage cabinet for aircraft spares $5,000.00 $33,000.00 $38,000.00 12 New floor screed $7,000.00 -$5182.00 $1,818.00 13 Painting expenses $1,000.00 -$485.00 $515.00 14 Install lamps and electrical appliances $500.00 -$480.00 $2.00 15 Final finishing and clean up $600.00 -$497.00 $103.00 16 Handing over of the hanger to the client $0.00 $0.00 $10.00   Total Cost $46,900.00 $14,910.00.00 $61,792.00 As per the planning done for the construction, the general costs were estimated to be $46,900.00. The costs have been allocated on the basis of the size of the project and the expected resources which are to be utilised. The predicted duration of the project was established to be 68 days. However, the predicted timescale was considered to be too long and required shortening. As a result the team was required to reformulate their plans to reduce the estimated time requirements allocated for each activity in the project. The crash action technique was implemented in this respect (Harrison & Lock, 2004). As per the crash action system, more resources were deployed for each activity. This led to the faster completion of each activity, but however led to an increase of expenses. The reformulated expenses for the project, post inclusion of crashing expenses was planned to be $61,792.00. Project Duration The original time reported for the project was initially 67.9 days which was only based on the PERT calculations collected from the project team. However, after inclusion of the crash activities in the project schedule, the estimated reduction in the project days was 47 days which also resulted in additional budget of $15000 in the total budget of $46900. However, the calculations when estimated in Ms-Project and was related with the resource sheet, the overall cost of the project was $14892 and the duration was also reduced by 4 more days totaling to 43 days (Please refer to Appendix 7). Apart from this the resources considered has also influenced the costing process of the project. The most costly segments of the WBS of project were the installation process followed by the documentation segment (Please refer to Appendix 7). The procurement cost was limited because of the available materials gathered from the scrap of the Hangar during the cleaning and striping activity. Focusing on the duration of the overall project, the documentation and decoration were the longest stages in the project with 18 and 10 days respectively. On the other hand, the concurrency of the project tasks was also helpful in reducing the duration of the installation of the project process. The crash activities thus have influenced the overall duration of the project and reduced the work time from 67.9 days to 43 days. The resource availability of the project was all considered on prorated basis and thus resource utilization was synchronized with the project progress and the WBS (Please refer to Appendix 1 and 2). Project Organization The project organization essentially refers to the organization of the human capital included in the project. Project organizing describes relationship shared by each member of a team and establishes clearly the roles to be performed by each member of the team. Project organizing is done so as to establish clear hierarchy of power and prevent overlapping of responsibilities allocated. The above figure represents the members involved in the project and the relationship shared by them (Please refer to Appendix 4). The roles and responsibilities of each team member can be explained through the following table. Table: Roles and responsibilities of Project Members Team Member Number Revised number of employees post crashing Responsibilities Reports to Principal project in charge and allocator 1 1 Receives projects from client and allocates the same to different managers. The owner and the client regarding progress. Head Project manager for General Aviation Hangar Restoration 1 1 Primary project organizer for the hangar restoration project. All subordinate mangers reports to him. The principal project in charge Principal designer 1 1 Designs the overall construction project and directs the architect. Head project manager Principal project Engineer 1 1 Directs subordinate engineers and creates suitable supply chain, work chain and systems of working. Head project manager Finance manager 1 1 Acquires the required finance for the project and allocates the same for different expenses and monitors the accounting process Head project manager Human resource manager 1 1 Estimates human resource requirements and monitors hiring and appointing of employees. Head project manager Technology manager 1 1 Estimates the needs for technology and procures the same. Coordinates with engineers and directs them in respect of technology usage. Head project manger Project co-ordinator 1 1 Organizes the responsibilities carried out by different departments and coordinates the same with the Head project manager. Head project manager Project architects 2 3 Development of suitable designs and instructing workers The Principal designer Mechanical/ Electrical engineer 2 3 Estimates the needs for machines and parts. Monitors and directs assembling tasks. Principal project Engineer Civil engineer 1 1 Creates construction blueprint and authorizes construction processes Principal project Engineer Structural engineer 1 1 Instructs workers regarding construction. Principal project Engineer Quality checking and monitoring team 5 5 Monitors the work process, checks for deviations and implements plans for correction. Principal project Engineer Chief accountant 1 1 Prepares timely budgets and financial reports on the basis of work completed and planned work ahead. Finance manager Human resource associate employees 4 4 Undertakes hiring and preparing employee appraisal reports. Reduces employee problems and queries and also acts as a communication means between senior management and employees. Human resource manager Construction team 7 10 Carries out the actual construction work as per instructions provided by architects and engineers. Includes engineers, project architects and designers based on the type of construction work being carried out. Total members employed on the project 30 35 Management Processes Human Resources Job allocation- Members involved in the project have been allocated their job on the basis of their skills, core strengths and work experience. Complete care has been taken by the senior mangers so that employees are not over loaded or underutilized with tasks to be performed. Members belonging to the similar work groups are provided with equal job responsibilities and compensations as given in the resource sheet (Gann & Salter, 2000). While allocating work, each member has been distinctively provided with instruction regarding the reporting of their activities to senior members (Please refer to Appendix 4). Roles and responsibilities- The fundamental roles and responsibilities of work resources included in the project have been described in the above table. The critical path and the crash activities have been considered while work allocation. It is ensured that each member associated with the project fulfill their responsibilities on time, so that there are no delays in carrying out the successive tasks (Kerzner, 2013). The quality control team vividly analyses the tasks performed by each member and ensures that there are no errors. On implementation of the crash action, the human resource managers had identified that greater number of employees must be recruited so that the project can be completed in a shorter notice. The project resources have been aligned with the work nature and approach of the crash activities. Care has been taken by the management of the organization to recognize and remove all redundant activities (Meredith & Mantel Jr, 2011). This prevents wastage of time, resources and the time required for completion of the project. Material Resources The resource sheet of the project highlights all the resource requirements and the resource availability of the General Aviation Hangar Restoration project. The resource sheet mainly included two types categories namely, work and material. Cost has been neglected in the resource sheet because of the inclusion of crash activities that resulted in reduction of slack activities and cost (Chan et al. 2004). The material resources included in the resource sheet has also been calculated considering different units and the overall requirements of the project process. Resources such as security equipments, pipes and valves, electrical wires, etc have been marked with appropriate market costs, on the contrary, fixtures is considered as an upper segment for various types of equipments and resources such as clean up and finishing aspects of the project (Please refer to Appendix 4). Risk Statement The risks associated with the project are mainly related to the designing of the hangar. The planning process of the project includes the aspects of resource requirements, resource development and resource procurement. Apart from this, renovation design will also be set in the planning stage of the project which will influence the cost and procurement process of the business. Any fault in the planning design will thus change the overall outcome and can also extend the deadline and the overall budget (Raftery, 2003). Another aspect of risk that is associated with the project is the concurrency of the activities which can increase chances of gaps in the monitoring process and also hamper the succeeding tasks or activities as given in the work breakdown structure. The risks mentioned above are concerned with the project growth and development process. However some risks which can hamper the project completion are also related with the safety of the work process. For instance, the electrical wiring and also floor screening can reduce the work speed if employees are injured while conducting these heavy activities. References to other project planning documents Other project planning documents that will be used in the project development and utilization process includes audit reports of the resources and materials being used, meeting minutes, schedules, inspection reports related with the progress of the project and the status of resource utilization and the cost factors associated with the work process of the project (Clough, Sears & Sears, 2000). The financial documents related with project planning are mainly project budget and the cost sheet which helps in aligning the work process with project scope (Chan & Chan, 2004). The documents or reports mentioned are directly related with the process of monitoring the project growth and also assessing the contemporary status of the project in context of requirements of work and material resources (Please refer to Appendix 3,5,6,7 and 8). The resource sheet as have been used in the study is a crucial aspect of documentation which is amalgamated with the task schedule for aligning the project activities with the available resources. Conclusion: The project report of General Aviation Hangar Restoration has been created with the software Ms-Project. The work break down structure has been developed by considering the already given crash report in the case study. The estimated crash time project was supposed to end in 47 days and with an additional cost of $15000 to the initial project cost of $46900. However, after inclusion of the resource sheet and task usage process in the project, the overall deadline was reduced to 43 days and the project cost was increased by $14892 instead of $15000. However, the WBS also reflects that concurrent activities have been considered in the project along with crash for further improving the overall project outcome. It is interesting to note that reducing the overall time of the project also influences the use and amount of resources for the project. Another crucial observation from the project was the changes in the individual activities based on the crash implied on the preceding or succeeding activities. The implications of using crash can also be complicated as the project resources and the availability of the resources may vary depending on the reduction of the slack period in the overall project plan. References Baker, B. N., Murphy, D. C. & Fisher, D. (2008). Factors affecting project success. Project Management Handbook, Second Edition, 1(1), 902-919. Belout, A. & Gauvreau, C. (2004). Factors influencing project success: the impact of human resource management. International journal of project management, 22(1), 1-11. Chan, A. P. & Chan, A. P. (2004). Key performance indicators for measuring construction success. Benchmarking: an international journal, 11(2), 203-221. Chan, A. P., Chan, D. W., Chiang, Y. H., Tang, B. S., Chan, E. H. & Ho, K. S. (2004). Exploring critical success factors for partnering in construction projects. Journal of Construction Engineering and Management, 130(2), 188-198. Clough, R. H., Sears, G. A. & Sears, S. K. (2000). Construction project management. New Jersey: John Wiley & Sons. Gann, D. M. & Salter, A. J. (2000). Innovation in project-based, service-enhanced firms: the construction of complex products and systems. Research policy, 29(7), 955-972. Harrison, F. L. & Lock, D. (2004). Advanced project management: a structured approach. London: Gower Publishing, Ltd. Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling, and controlling. New Jersey: John Wiley & Sons. Meredith, J. R. & Mantel Jr, S. J. (2011). Project management: a managerial approach. New Jersey: John Wiley & Sons. Raftery, J. (2003). Risk analysis in project management. London: Routledge. Appendix: Appendix 1: WBS: Network Diagram Appendix 2: Cost allocation Task Name Fixed Cost Fixed Cost Accrual Total Cost Baseline Variance Actual Remaining Documentation $0.00 Prorated $8,920.00 $0.00 $8,920.00 $0.00 $8,920.00 Establish Customer specification and budget $0.00 Prorated $2,800.00 $0.00 $2,800.00 $0.00 $2,800.00 Design new hanger features $1,000.00 Prorated $5,560.00 $0.00 $5,560.00 $0.00 $5,560.00 Agree and sign contracts $0.00 Prorated $560.00 $0.00 $560.00 $0.00 $560.00 Work Place Preparation $0.00 Prorated $4,623.00 $0.00 $4,623.00 $0.00 $4,623.00 Buy materials $500.00 Prorated $1,220.00 $0.00 $1,220.00 $0.00 $1,220.00 Remove redundant fixtures $300.00 Prorated $303.00 $0.00 $303.00 $0.00 $303.00 Clean and strip floors $2,500.00 Prorated $3,100.00 $0.00 $3,100.00 $0.00 $3,100.00 Procurement $0.00 Prorated $4,141.00 $0.00 $4,141.00 $0.00 $4,141.00 Set pipes and valves $1,500.00 Prorated $1,515.00 $0.00 $1,515.00 $0.00 $1,515.00 New Electrical wiring $2,600.00 Prorated $2,626.00 $0.00 $2,626.00 $0.00 $2,626.00 Installation $0.00 Prorated $41,670.00 $0.00 $41,670.00 $0.00 $41,670.00 Install ventillation and air conditioning ducts $2,000.00 Prorated $2,020.00 $0.00 $2,020.00 $0.00 $2,020.00 Install Toilet and Shower $1,500.00 Prorated $1,650.00 $0.00 $1,650.00 $0.00 $1,650.00 Install storage cabinets for aircraft spares $2,000.00 Prorated $38,000.00 $0.00 $38,000.00 $0.00 $38,000.00 Decoration $0.00 Prorated $2,335.00 $0.00 $2,335.00 $0.00 $2,335.00 New Floor Screed $1,800.00 Prorated $1,818.00 $0.00 $1,818.00 $0.00 $1,818.00 Paint $500.00 Prorated $515.00 $0.00 $515.00 $0.00 $515.00 Install Lamps and Electrical Appliances $0.00 Prorated $2.00 $0.00 $2.00 $0.00 $2.00 Completion and delivery $0.00 Prorated $103.00 $0.00 $103.00 $0.00 $103.00 Final finishing and clean up $100.00 Prorated $103.00 $0.00 $103.00 $0.00 $103.00 Handover Hangar to the client $0.00 Prorated $0.00 $0.00 $0.00 $0.00 $0.00 Appendix 3: Cost Summary Appendix 4: Resource Sheet Appendix 5: Task Usage Appendix 6: Team Planner Appendix 7: Gantt Chart and Project Entry Table Appendix 8: Resource Cost Summary Report Read More