Project Risk & Analysis Management - Projmanics Ltd - Case Study Example

 Project management Contents Abstract 3 Introduction 3 Report Presentation, Description & Depth 4 Project Organizational Structure 5 Project Charter 7 Work Breakdown structure 9 Project Plan & Responsibility Matrix 10 Project Budget Breakdown 10 Project Risk & Analysis Management/ Project Health & Safety Policy 13 Conclusion 14 References 16 Abstract This assignment has focused on various things which are considered by a company for developing a new product or service. The company PROJMANICS LTD has been discussed in this case. The main purposes of the company are to increase its productivity and profit. The company wants to achieve its goals and objectives by developing an effective project plan with its talented and highly skilled employees. The assignment will highlight that a dedicated team will be present which will look after every functions and activities of the project. The team members will play a significant role in implementing the project plan successfully. The firm thought of developing a luxurious resort. With the help of the resort the organization will provide high quality of service to the guest. This can provide huge growth opportunities to the company. Introduction PROJMANICS LTD is one of the big and reputed companies of the world. This organization deals in developing new products and services. The headquarters of this company is located in Abu Dhabi. The company has its presence in different countries of the world. But PROJMANICS LTD is planning to expand its business operation and presence within a short span of time. For this reason the company wants to generate more profit for increasing its resources and implementing business operations successfully. The senior management time of PROJMANICS LTD is very efficient and highly skilled. The management team continuously develops and implements strategies as per the needs and requirements of the company. The market of UAE is very much competitive. For this reason the company requires to develop new products or services which will facilitate it in generating huge profit. Growth and development of company highly depend on its productivity and performance of the employees. PROJMANICS LTD has planned to develop a project on building a resort on Abu Dhabi. The resort will be equipped with all modern facilities which will provide a memorable experience to the guests. The resort will also have a multi cuisine restaurant, spa, gym etc. This assignment will discuss the project management plan of PROJMANICS LTD in detailed. The duration of the project is for 18 months. The company has decided to invest £5M for developing and implementing the project successfully. The organization will plan to utilize its best resources to making the project effective. Report Presentation, Description & Depth The main goals and objectives for developing this project are increasing the profit of the company and improving the productivity of the employees working in the organization. By developing resort in Abu Dhabi the company can attract tourists from different countries of the world. For increasing the revenue of the company drastically this is the most applicable and suitable plan which can be implemented for enhancing the growth of the company. Various talented people will be involved in this program. They will help PROJMANICS LTD in innovating new process and techniques for building an attractive and exotic resort. A team will be formed which will look after development and implementation of entire project. The manager of the team will lead the functions and activities of the entire team. The managers of the team will supervise the team members for implementing the project plan properly. A human resource manager will be there who will recruit people as per the demands and requirements of the project. Finance manager will be present who will look after the money spent in the project and will keep all the records of the financial transactions taking place for building the resort. Project co-coordinator will be present in the team who will co-ordinate different functions activities of the project (Kotler and Keller, 2012). He will communicate properly with the team members and assist them in doing their work efficiently. IT manager will be present who will implement modern technologies and facilities in the resort for facilitating the guests and the business process of the resort effectively. The company has selected this project because in Abu Dhabi presently many tourists are coming from different places of the world to visit this city. Tourist coming here tends to spend huge amount of money for staying in exotic resorts. This type of resources provides a memorable experience to the tourist and for this reason they prefer to stay in luxurious resorts. For developing the project effectively, the team will first form the entire plan in details. The members will calculate the cost which will require for developing the resort. Then they will analyze the facilities the resort will provide to the guests. The team will analyze the desires and expectations of tourists from a luxurious and exotic resort and based on that company will implement different modern facilities in the resort. Project Organizational Structure PROJMANICS LTD will follow the theory of Belbin’s for developing the role and responsibilities of the team members effectively (Percy, 2008). The team members of this project will play a vital role in implementing the plan of the project successfully. For making the team performance best every team members needs to participate properly within the team. Every duties and responsibilities of the team members will be designed in such a way which will help the team in achieving its goals and objectives. Figure 1: Belbin's Team Roles The duties and responsibilities of the team members will be divides as per their role in the project. The members of the team will guide other employees for performing the functions and activities of the project. The roles of the team members will be action oriented, people oriented, thought oriented. In actions oriented roles will be divided as shaper, implementer and completer finisher. The manager of the project will become the shaper. The team members and the employees working under the guidance of the team member will be the implementer. The team leader will become completer finisher. He will ensure that the functions and activities of the team will be completed on time. A coordinator will be present in the team. He will coordinate the works and activities of the team members properly and report everything to the higher level of management (Aritzeta, Swailes & Senior, 2007). The employees who will work in fulfilling the goals and objectives of the team will be the team worker. Resource investigator will be present in the team who will explore various things which can be the opportunities for the project. For thought oriented roles a plant manager will be present who will constantly develop new approaches and ideas for making the resort equipped with all modern facilities and things. A team member will monitor and evaluate all the option which will be considered by the team for the project. Some specialist person will be present in the team who will perform different activities and functions with their specialized skills. This will help the company in developing appropriate plans and designs for the project. Belbins roles will facilitate the team members in delivering good performances Participative leadership style will be adopted by PROJMANICS LTD for this project. This leadership style will encourage all the team members for participating effectively in the project. They will play a vital role in decision making process of the project (Winter, Smith, Morris & Cicmil, 2006). Strong contribution of the team member will facilitate the company in developing the resort efficiently. Project Charter PROJMANICS LTD needs to develop this project for increasing the revenue and productivity of the company drastically. Huge number of tourist is coming in Abu Dhabi and they prefer exotic and luxurious resort for their stay. If the company is able to develop a beautiful and modernized resort then it can increase its profit rapidly by attracting tourists. The strategy of diversifying the business into hospitality industry will benefit the firm in creating a large customer base. Huge amount of revenue can be generated from the business of resort which will help the firm in growing its business. The guests of this resort will expect an extra ordinary service. They will expect to have a memorable experience while stating in the resort (Cooke-Davies, 2002). The manager of the project will be associated with the project from the time of its beginning to end. He will be entirely responsible in implementing the plan of the project successfully. PROJMANICS LTD will do an agreement with a reputed construction company for developing the resort efficiently with the stipulated time. As per the SMARTEST objectives the team members will have a specific plan for implementing the project successfully. The cost, resources and the time required for developing the resort will be analyzed in details by the team members. The plan of building the resort will be divided into different parts for facilitating the team members to perform efficiently (Pich, Loch & Meyer, 2002). As per the targets of the business the project plan will be designed in such a way which will help the company in generating revenue more than £9M per year. The team members and the employees associated with the project will be awarded if they are able to perform their duties and activities perfectly. This will motivate the employees in delivering better performance which will help the company to increase its productivity. Specific time limit will be followed for performing different activities of the project. Employees associated with the project will continuously develop new ideas and process which will make the work process of the project enthusiastic. A strong process of evaluation will be present through which the development of the resort will be monitored. Processes and materials used for the resort will be tested. The major stakeholders of the resort will be the owners of the company, its customers and employees (Fox and Waldt, 2008). The assumption of the project will be the guest will like the resort and will prefer to stay there. The project is only targeting the customers who have high disposable income. Work Breakdown structure PROJMANICS LTD will follow the Work Breakdown Structure (WBS) for performing different works of the project effectively. Purpose: The purpose of this company for developing this project is to increase the productivity and performance of the company by developing a new type of services. Building a resort will be most beneficial for the company in Abu Dhabi for generating more revenue. Huge number of tourism coming to Abu Dhabi can facilitate the company in earning more profits through the resort. The company wants to provide luxurious service to the guests and will make their stay memorable in the resort. By this process the company will be able to satisfy large number of guests and can increase its profitability. Enhancing the performance of the employees is another purpose of the company. Through developing new service the firm can increase the efficiency level of the employees by making them responsible for different works and functions. Process The scope of the project will be analyses first by the management of PROJMANICS LTD and according to that the management will select the team members of the project. The team member will develop design and entire work process of the project in details. The team members will select employees who will work under them for implementing the project plan successfully. Recruitment of some persons will be done for doing the project. The company will do agreement with a construction company for building the resort (Roberts, 2011). After the development of the resort PROJMANICS LTD will provide high quality of services to the guest and will try to satisfy them in every possible way through its modern facilities and services. Pitfalls It will be difficult of the company to implement changes during the work process of the project. Different members of the team will have responsibilities for performing specific type of type job. If a person cannot perform its job effectively then it will become difficult for the company to involve any other person in the project. Project Plan & Responsibility Matrix Activities Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Developing and analyzing project plan                                     Forming project team                                     Identifying resources                                     Selecting construction company                                     Making agreement with construction company                                     Coordinating with employees                                     Building the resort                                     Implementing modernized technology and facilities                                     Decorating the resort                                     Attracting guests                                     Providing luxurious service to the guests                                     Project Budget Breakdown Projmanics Ltd is on the verge of introduction and development of their new project. The concerned ltd focused on developing the resort with all new and unique features in built in it. The responsibility matrix is required to be formulated and designed for allocating the roles and responsibility to each department. The assignment of task will help the organization in accomplishing the task adequately within a short period of time. Responsibility Matrix Title Client Representative Technological team Project Chartering Committee Project manager Schedule coordination team Finance manager Work breakdown structure Quality Budget Scope statement Change in approvals Change in management procedures The responsibility that is allocated among the managers of the team is on the basis of their activity. Since the involvement of each team is required for accomplishment of the task but the importance of involvement is categorized as:   Team members of the Project Others stakeholders   Ali John Khan Steve Sheikh Function management Client management Sponsor Element N       R       Activity A   R             Activity B R   C R         Activity C     S     G   A                   Activity D           A                       Activity E     R S       N Activity F                 Activity G R   R   S   A A                   Activity H     R   C       The cost sheet of the project is required to be prepared in order to identify the cost related to the equipment required, material used and the people required to accomplish the assigned task Cost sheet Direct materials 210000   carriage inwards 1000 211000 Direct wages   100000 Direct expenses   2000 Prime cost   313000 Work overhead     paid to men for maintenance 20000   wages 15000   Salaries 30000   Work cost 1000 66000 Administrative overhead   379000 Auditor fees 10000   directors fees 20000   Office salaries and expenses 10000 40000 Cost of production     Selling and distribution overhead   419000 salaries of salesman 3000   carriage outwards 2800   Depreciation 1500   commission 2000   bad debts 1000 10300 Total cost   429300 The above cost will be incurred by the company. Therefore the concerned limited is required to make necessary arrangements for meeting its expenditure. The budget breakdown will assist the project manager in assigning the task among various team members of different departments and preparing the cost budget which will help in determining the cost that the company is going to incur. The cost incurred can be controlled by adopting various budgetary control measures and adequate decision making process for generating adequate revenue for covering the expenditures or cost of the project (Dow and Taylor, 2010). The cost that will be incurred in the project is required to be determined before determining the sources of cash inflow. Project Risk & Analysis Management/ Project Health & Safety Policy The project risk analysis will assist the limited in making necessary arrangement for adopting various health and safety measures of its customers in the resorts. The risk management is engaged in identifying, analyzing and monitoring of the risk. The customers or the visitors are often encountered with problems related to their health and safety, therefore various measures are proposed for improving their health and safety condition. The problems mainly includes risk arising from the work activities, accidents and the cases associated with the work related ill health, the cost of safety failure and the physical and the psychological risks and environmental safety (Lingard and Rowlinson, 2005).The concerned limited focused on various risk management techniques for reducing and mitigating the risk and improving the health and safety of the people associated with the project. In order to maintain health and safety in the project, the concerned limited is required to abide by the health and policy statement act of 1974 which explains that the organization is required to maintain safe plant and equipment, maintain safe and healthy working condition, review and revise the policy on the frequent intervals of time, ensuring safe handling , complying with the regulations, legislations and accountability for maintenance of safety, encourage other employees to work in a safe and healthy manner and the use of various equipments or substances. The health and safety statement formulates various ways in maintaining health and safety in the working place. Health and safety is considered as the highest priority for the project. The project manager and the concerned employees are required to abide by the health and safety standard of working environment for the visitors, workers and the members that are related with the project. In addition to the leading practice standards and the legal requirements, the organization is required to adhere by the health and safety standard. Conclusion Growth and development is necessary for every business. A company needs to enhance its products and services for holding its position in the competitive market. In this assignment the company PROJMANICS LTD has been discussed in details. The company wants to increase its productivity and profit by developing new services. The business of resort will be best option for the company because in Abu Dhabi tourism industry is growing rapidly. For this reason the company has made a plan for developing exotic resort. This assignment highlighted that a team will be formed by the company which will look after the project successfully. Different steps will be followed by the company for implementing the project. Roles and responsibilities of different team members were focused in this assignment. Various costs were analyzed in this assignment in a very detailed way. The project has specific purpose, process and pitfall. The company expects that it will generate huge revenue by implement its new service of resort. Project risk analyses have been conducted in this assignment. This analysis gave a clear idea about the risks associated with the project. As per the Gantt chart analysis constructing the resort will consume maximum amount of time. Other steps of the project will take one month. References Aritzeta, A., Swailes, S., & Senior, B., 2007. Belbin's Team Role Model: Development, Validity and Applications for Team Building. Journal of Management Studies, 44(1), pp. 96-118. Cooke-Davies, T., 2002. The “real” success factors on projects. International journal of project management, 20(3), pp. 185-190. Dow, W. and Taylor, B., 2010. Project Management Communications Bible. Canada: John Wiley & Sons. Fox, W. and Waldt, G., 2008. A Guide to Project Management. Cape Town: Juta and Company Ltd. Kotler, P. and Keller, K., 2012. Marketing management, global 14 Ed. Harlow, Essex: Pearson Education Lingard, H. and Rowlinson, S.M., 2005. Occupational Health and Safety in Construction Project Management. New York: Taylor & Francis. Percy, L., 2008. Strategic integrated marketing communication. Oxford: Elsevier. Pich, M. T., Loch, C. H., & Meyer, A. D., 2002. On uncertainty, ambiguity, and complexity in project management. Management science, 48(8), pp. 1008-1023. Roberts, P., 2011. Effective Project Management: Identify and Manage Risks Plan and Budget Keep Projects Under Control. London: Kogan Page Publishers. Winter, M., Smith, C., Morris, P., & Cicmil, S., 2006. Directions for future research in project management: The main findings of a UK government-funded research network. International journal of project management, 24(8), pp. 638-649. Read More