Project Management - a Five Star Restaurant Construction - Case Study Example

Project Management: A Five Star Restaurant Construction Name: Tutor: Course: Date: Table of contents Table of contents 2 List of Figures 3 List of Tables 4 1.0 FSR construction project 2015 5 1.1 Scope of the project 5 1.2 Method Statement 5 1.3 Assumptions 6 2.0 Planning Methodology 6 2.1 WBS, OBS and RAM 7 2.1.1 Work Breakdown Structure (WBS) 7 Table 1: FSR Work Break Down Structure (WBS) 7 2.1.1 Organizational Break down Structure (OBS) 10 Figure 1: Organizational breakdown structure for FSR construction project 10 2.1.2 Responsibility Assignment Matrix (RAM) 10 Table 2: Standard terms for quantifying risks 11 Table 3: Risk Assessment Matrix (RAM) for FSR project 11 3.0 Gantt chart 13 Figure 2: FSR Gantt chart 14 4.0 Project calendar 15 Table 4: Project Calendar for the FSR construction project 15 5.0 Project Budget 17 Table 5: Budgetary estimates for the FSR construction project 17 Conclusion 18 Reference list 19 List of Figures Table of contents 2 List of Figures 3 List of Tables 4 1.0 FSR construction project 2015 5 1.1 Scope of the project 5 1.2 Method Statement 5 1.3 Assumptions 6 2.0 Planning Methodology 6 2.1 WBS, OBS and RAM 7 2.1.1 Work Breakdown Structure (WBS) 7 Table 1: FSR Work Break Down Structure (WBS) 7 2.1.1 Organizational Break down Structure (OBS) 10 Figure 1: Organizational breakdown structure for FSR construction project 10 2.1.2 Responsibility Assignment Matrix (RAM) 10 Table 2: Standard terms for quantifying risks 11 Table 3: Risk Assessment Matrix (RAM) for FSR project 11 3.0 Gantt chart 13 Figure 2: FSR Gantt chart 14 4.0 Project calendar 15 Table 4: Project Calendar for the FSR construction project 15 5.0 Project Budget 17 Table 5: Budgetary estimates for the FSR construction project 17 Conclusion 18 Reference list 19 List of Tables Table of contents 2 List of Figures 3 List of Tables 4 1.0 FSR construction project 2015 5 1.1 Scope of the project 5 1.2 Method Statement 5 1.3 Assumptions 6 2.0 Planning Methodology 6 2.1 WBS, OBS and RAM 7 2.1.1 Work Breakdown Structure (WBS) 7 Table 1: FSR Work Break Down Structure (WBS) 7 2.1.1 Organizational Break down Structure (OBS) 10 Figure 1: Organizational breakdown structure for FSR construction project 10 2.1.2 Responsibility Assignment Matrix (RAM) 10 Table 2: Standard terms for quantifying risks 11 Table 3: Risk Assessment Matrix (RAM) for FSR project 11 3.0 Gantt chart 13 Figure 2: FSR Gantt chart 14 4.0 Project calendar 15 Table 4: Project Calendar for the FSR construction project 15 5.0 Project Budget 17 Table 5: Budgetary estimates for the FSR construction project 17 Conclusion 18 Reference list 19 1.0 FSR construction project 2015 1.1 Scope of the project The aim of this project is to schedule the construction and opening of a new Five Star Restaurant (FSR) to customers in Melbourne in the next 8 months. The project will involve the following deliverables; developing a budget, obtaining planning permits and approvals, planning the marketing strategy, design and construction, development and operation, and recruitment. The tasks include holding kick-off meetings, communicating with project sponsors, registration of business and obtaining design plans and approvals, designing media briefs, designing work plans and final technical designs. Other tasks will include mobilization, construction to practical conclusion and recruitment of restaurant staff to undertake hotel operations. The 4-storey FSR construction and completion is expected to start in May 2015 and end in January 2016 at a cost of AUD$ 640 million. 1.2 Method Statement Before starting work on the site, the project manager will meet the client and their professional team to discuss objectives of stakeholders and understand the project constraints. This will be followed by development of construction Phase Safety and Health Plan and the Construction Method Statement. To address transport issues, the project will develop a site Traffic Management Plan to address transport safety and access. In establishing the site, the proposed construction of temporary offices and accommodation will be done alongside set-up of a canteen, mess, small storage container, and power and mains water. Working with the client, full schedule of dilapidations will be prepared. All the boundaries will be erected with a Heras type fence and all construction personnel and visitors will report to the site office to attend a mandatory safety induction. The SHE manager will develop a site Waste Management Plan where general waste, timber, metal are segregated and removed from site to assist in recycling. The construction will operate a Business Management Systems (ISO:9001 certified) which will be adhered to through specific and detailed testing and inspection plan. In enhancing safety and productivity, the specialists, sub-contractors and site management team will promote clean and tidy sites. Risk assessments will capture any dust or excessive levels of noise from equipment. The construction phase and post contract stage of the project will involve a range of activities that will be captured in the project Gantt chart. 1.3 Assumptions 1. The original project timeline will be observed by the project team to save on direct costs 2. Sub-contractors have been notified of the construction strategy earlier during the appraisal period 3. Recruitment of building staff and hotel operations staff will follow a common HR plan 4. Project baseline costs will be estimated using a suitable Bill of Indices and will include cost of equipment and materials, salaries, labor and contingencies 5. Rostered Day Offs (RDO) will be paid up to half the normal hourly pay 2.0 Planning Methodology Planning the construction and marketing of FSR will involve PRINCE2 which has seven stages; starting up the project, initiating the project , directing the project, controlling a stage, managing stage boundaries and finally closing the project. The initiation stage will involve developing the idea of constructing a Five Star Restaurant, seeking permits and approvals to operate food, wine and cuisine business and marketing the new business. The project charter will be developed to consist of business case, scope, resources, milestones, cost estimates, risks and dependencies. The planning and design stage will involve developing a scope statement, budget, team, schedules, work break down structure (WBS), organizational breakdown structure (OBS) , risk plan and communication plan. Implementation stage will involve completing the various tasks outline in the work plan and WBS to meet the objectives of the project. This will also require resources, people and management to deliver outputs as provided in the project management plan. Monitoring and control of the project will involve tracking and managing the project using checklists and project tracking sheets to measure ongoing project activities. Project variables such as scope, effort, schedule and cost will be monitored against the project baseline. Change control process will also help in managing change (Burwood & Jess, 2005). The FSR project will be closed once it has achieved its objectives. This will be done through finishing all the activities in the process groups, project team split up and project sign-off with client. The project will also be reviewed for performance against tolerances, duration, cost, quality measures, and original business case (Rowland-Jones, et al. 2008). 2.1 WBS, OBS and RAM Some of the project management tools such as Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS) and Risk Assessment Matrix (RAM) are important during planning of the construction project. 2.1.1 Work Breakdown Structure (WBS) To start with, the FSR project will adopt a Work Breakdown Structure (WBS) as illustrated in the table below. The table shows the WBS coding in terms of numbers (1.0, 1.1, 1.1.1) showing sub-tasks falling under the main tasks. Table 1: FSR Work Break Down Structure (WBS) FIVE STAR RESTAURANT WBS Fields WBS # Task Description of Task Work Products Owners Est. Level of Effort 1 PLANNING All management activities and task management       1.1 Kick-off Meeting Estimate budget, discuss feasibility studies Roll-up Task Project Manager N/A 1.1.1 Register the business Seek approvals, permits, and permission to operate foods and cuisine business WBS, MS Project Plan Client 10 hrs 1.1.2 Prepare site visit plans Appraise the site work plan and inspect the design brief OBS Quantity surveyor/ city planning inspectorate 16hrs 1.2 Design the FSR project Develop the concept, design and request for sketches and technical designs Concept sketches Architect 20 hrs 1.2.1 Develop the concept Discuss the concept with the design team Project Manager N/A 1.2.2 Develop design plan Inspect the design and evaluate against alternative designs Design Manager 10hrs 1.2.3 Adopt the technical design Do final checks of the final design and inspect the work plan Design Team 10hrs 1.3 Prepare tender action and documentation Develop and document project budget based on resources and plan Procurement Manager 40hrs 1.3.1 Obtain detailed information on the product Prepare work plan Designs Planning Team 18 hrs 1.3.2 Document and action tenders Prepare contract rules and project plan, award tender to the best bidder 1.3.3 Site preparation Undertake final inspection or checks on designs and plans, declare site ready for construction, prepare method statements Inspection templates Project Manager 5hrs 1.4 Actual construction work Transportation of tools, machines, equipment and materials to the site PM, Contractors and sub-contractors 8hrs per day/shift 1.4.1 Prepare Disbursement / Reconciliation Develop project disbursement process including approval/acceptance forms. Deliverable Product Acceptance Form; Purchase Orders CFO 40 hrs 1.4.2 Coordinate Activities Manage ongoing activities and communicate during weekly meetings Meeting Minutes Project Manager/ client 8 hrs/week 1.5 Manage Marketing events Prepare budget, conduct market research and advertising Customer Relationship Manager (CRM) 6hrs/day 1.5.1 Market research Conduct customer surveys, competitor analysis and product development Reports CRM 3hrs 1.5.2 Advertise and publicize the restaurant Produce ‘demo’ for media advertising, choose the medium, estimate the total cost of advertising Actual demo 3hrs 1.6 Recruitment and training Select and recruit for competence and skills on culinary arts, housekeeping and laundry operations, food and beverage, sales and service, front office operations and international hotel management 10hrs 1.6.1 Select restaurant employees Select based on skills, qualification a and experience in advanced hotel operations Human Resource Manager 5hrs 1.6.2 Train employees Provide for continuous employee training on quality and efficiency in hotel operations Appraisal forms Training Manager 5hrs 2.1.1 Organizational Break down Structure (OBS) The organizational breakdown structure (OBS) shows the relationship of the various functions (Tatsiopoulos & Panayiotou, 2000) in the project and highlights the major project as marked in green color in figure 1 below. OBS helps to breakdown the various roles and responsibilities in the project team. As shown in the figure, the project is split into three functions; marketing, engineering and construction and hotel operations. The main work is engineering and construction of the restaurant but other functions are complimentary and seek to achieve the ultimate goal of having a running and operational restaurant in Melbourne, Australia. Figure 1: Organizational breakdown structure for FSR construction project 2.1.2 Responsibility Assignment Matrix (RAM) Construction projects are susceptible to risks and thus the need to prepare a risk assessment matrix identifies, assesses the impact and frequency of the risk factors possible response plan (Smith, et al. 2013). Table 2: Standard terms for quantifying risks Severity Time Cost Quality Safety Very high >20%above target >20% above target Very poor Injury High 10% Read More