Project Purpose and Rationale Issues - Assignment Example

Student’s Name Instructor’s Name Date Course BSBPMG522A Undertake Projects Work. Scenario review. The project is a simulation of Max Lionel Realty. It, therefore, deals with real estate sector to facilitate buying and sale of land as well as land. The case presents such policies as WHS policy, anti-discrimination, and procurement policies. The policies are based on the Australian labor legislations and are generally applicable to the entire built environment. The case recommended procedures are the ones that encourage transparency, innovation and cost economy. Besides, all the procedures must abide by the national and local legislations. Project Brief Project purpose and rationale Renovation of homes before resale is vital for maintaining the home values as well as the customers’ satisfaction. Project Title Max Lionel Realty Home Renovation. Project purpose. The renovation of homes before their resale will increase their value, durability, and habitability. It is also important in increasing customer’s satisfaction as well as creating a good image of the firm. Background and planned framework. The completion of this project will build goodwill as well as the reputation of the firm as an integrity center. It is part of the innovative practices of Max Lionel Realty Priority This Project is important to the organization because of the increase in sales related to the innovated houses. Project client/owner Max Lionel Realty. Project sponsor Kim Sweeney. Project manager Sam White Project status the project is still in the planning stage. Project Manager Sam White Project Sponsor: Kim Sweeney. Project Client/Owner Max Lionel Realty Other Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Received details from the Operations General Manager. The project entails renovations of houses before resale. The project must run within Max Lionel Realty’s determined timeline and budget. The project management must also involve the Max Lionel Realty’s executive management from the commencement to the completion. The project must also demonstrate the company’s corporate responsibility by operating within the national regulations and legislations of the built environment. The standards practices of project administration and documentation must also be followed. Project scope The house renovation project scope includes two major activities. The first activity is replacement and refurbishment of fittings and furniture to give the houses a new look. This activity will be followed by floor re-carpeting and repainting of the walls. The project scope is outlined in the figure below. Inclusions Exclusions Assumptions Constraints Replacement and refurbishment of furniture and fittings Re-construction of houses Houses for resale are in good state and only require minor repairs and developing.Knowledge about the project that is taken as being true or correct for the purposes of project planning. Most houses for resale have been used for long and require much time and resources to refurbish them. Repainting and re-carpeting the rooms Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Documents for discussion with the Operations General manger. The documents requiring discussion with the Operations General Manager include the project budget, the work breakdown structure and the Gantt chart. The project budget is important as it approximates the overall financial flow associated with the project. The work breakdown structure provides the overview of the work categories that would be attended in the project. Moreover, the Gantt chart shows the time distribution of the project activities. Additional documents. Additional documents that can make the project a success include the feasibility study, project charter, procurement plan and the business case justification. The project feasibility study document gives the business case data. On the other hand, the business case justification derives its content from the feasibility study, project assumptions and user requirements. Additionally, the project charter is a statement of the user’s problems, and goals, schedule and benefits of the project. Furthermore, the procurement plan of the project provides the guidelines of resource acquisitions of the plan. Project deliverables. The project is categorized into several milestones. The project milestones are marked by the houses renovation commencement, preparation, implementation, regulation and adjournment. 1. Doors replacements. 2. Fittings replacement. 3. Floor repairs. 4. Kitchen remodelling. 5. Sanitation facilities repairs. 6. Power re-installation. 7. Gate and security features. Project snapshot Project snapshot Name of project: Max Lionel Realty House renovation project. Project purpose: The house renovation project is aimed at increasing the value and durability of the old houses for resale. After the completion, the project will increase the credibility of the company to the customers. This will enable the company serve more buyers of old residential houses. Deliverables (Contained in the project milestones) Doors replacements Fittings replacement Floor repairs Sanitation facilities repairs Power re-installation Gate and security features Kitchen remodelling Stakeholders The project sponsor is Max Lionel Realty while the manager is Willy White. The customers of the project include young professionals living in the Victoria City. Resources Project allocated $450,000, 1 real estate consultant, and 12 workers. The project has access to paint mixing software and house renovation equipment and facilities. Risks Health, overcapitalization, regulations, over-personalization, devaluation of property Interdependencies Project dependent on the allocation of funds by the finance department. Success criteria Success criteria based on the project reports. Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Project stakeholders. The project stakeholders include the internal staff involved in management, planning and execution. It will also include the prospective customers who will purchase the houses upon the completion of the renovations. Name Work area Stakeholder type (client, end-user) Impact on/by project, requirements, success criteria Max Lionel Executive Client Overall leader of the project Riz Mehra Chief Financial officer Client Overall budgeting for the project Kim Sweeney Operations General Manager Client Project sponsor Sam Lee Manager Residential realty Client Manages the project Sam White Project manager Client Daily running of the project Tony White Business man End-user Buy residential property Wordworth Pal Doctor End-user Buys a residential property Warrior Properties Real estate agents End-user Buys the properties for leasing. Project Title: Max Lionel Realty Home Renovation. Project Client: Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Project scope. Communications and reporting This figure shows the planned communication and reporting needs of he project. Stakeholder Information required When required Format Max Lionel Progress Monthly Report Riz Mehra Progress Monthly Report Kim Sweeney Progress Monthly Report Sam Lee Progress Weekly Report Sam White Commencement and completion. On commencement and on completion. Mail Tony White Commencement and completion. On commencement and on completion. Mail Warrior Properties Commencement and completion. On commencement and on completion. Mail Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Roles and responsibilities The project activities will be determined through various roles under which the responsibilities will be placed. In the figure below is the list of roles and responsibilities as well as names of the people representing them. Role Name/s Responsibilities Signature/s (if required) Project client/owner Provides all the resources for the project Max Lionel Realty Human resources Capitalization Max Lionel Realty Project sponsor/project director/project board Strategic planning and execution Max Lionel Kim Sweeney Riz Mehra Overall management ML Project manager Daily running of the project. Sam White Keeps record of the daily activities in the project. Supervises the SW Manager of the project manager Line manager Sam Lee Manages the project resources. S.LEE Project team members Onsite workers Ben Might Steve Lee Tony Mark Simon Young Martin Law Work within the set timelines and cost constraints Identify issues Renovating structures and facilities in the houses. Follow the work guidelines BM St.L TM SY ML Steering committee/ working party Suggestions and advice Steve Kay Sam Lee Sam White Max Lionel Arranging funding. Champions the improvement of the project Manages the project risks Communicate to stakeholders Obtains the stakeholders’ support. SK S.LEE SM ML Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Relationship of the project with systems and activities of the company. This project relates with several aspects of the company, namely: 1. The strategic aims of the company to become a preferred provider of cheap housing. 2. The company’s practice of reducing the budgetary constraints in its business. 3. The project also relates to the company’s endeavor of increasing its market presence. Resources and access to resources. The resources needed for the house upgrade project include paint, tiles, fittings, furniture and electrical systems. Other resources include water, power and security systems. Access to these resources is achievable through the project procurement plan and practices. Project management tools. The project management tools required for this case include MS OneNote (for note taking), Azendoo (for project team management) and MS Office (for a wide variety of project office administration). Support of the team members. The team members need support on the use of information system the team’s information management. The need arises from the application of new information system to help track the construction activities, costs and progress. Also, the system enables the efficient record keeping and project monitoring. The support is in the form of training and will take place two weeks before the commencement of the project as an auxiliary activity. During the training sessions, the team members will be given all the necessary machines to acquaint them with the relevant information management approaches. Work breakdown structure. Level 1 Level 2 Level 3 1 Resale residential houses renovation. 1.1 Commencement 1.1.1 Evaluation and references 1.1.2 Develop project contract 1.1.3 Deliverable: submit project charter 1.1.4 Project promoter analyses project approval 1.1.5 Project grant ratified 1.2 Preparation 1.2.1 Create Preliminary Scope Statement 1.2.2 Determine Project Lineup 1.2.3 Project Crew Commencement Meeting 1.2.4 Cultivate Project Proposal 1.2.5 Remit Project Proposal 1.2.6 Milestone: Development Plan Authorization 1.3 Implementation 1.3.1 Project Commencement Meeting 1.3.2 Plan House Renovation. 1.3.3- Buy supplies 1.3.4 Renovate houses 1.3.5 Analysis Phase 1.3.6 Use evaluation 1.3.7 End-user training 1.4 Regulation 1.4.1 Project Administration 1.4.2 Project Status Conferences 1.4.3 Threat/peril Management 1.4.4 Apprise Project Managing Strategy 1.5 Adjournment 1.5.1 Stocktaking 1.5.2 Document Lessons Learned 1.5.3 Fill in Files/Registers 1.5.4 Achievement of Official Recognition 1.5.5 Documentation Files/ Papers Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Project Sponsor: Project Manager: File Name: Page x of y Project Schedule Item Milestone date Responsibility Evaluation and references 1st January, 2016 Assessment of the project Develop project contract 1st Feb, 2016 Formal contract document Deliverable: submit project charter 1st Feb, 2016 Project certification Project promoter analyses project approval 1st Feb, 2016 Check whether the standards are met. Project promoter analyses project approval 1st Feb, 2016 Check whether the standards are met. Project grant ratified 1st Feb, 2016 Seek ratification of the project from the executive management Create Preliminary Scope Statement 1st March, 2016 Develop the project scope Determine Project Lineup 1st March, 2016 Project Crew Commencement Meeting 1st April, 2016 Meet the stakeholders Cultivate Project Proposal 1st May, 2016 Develop the proposal Remit Project Proposal 1st May, 2016 Provide copies of the proposal to the executives Milestone: Development Plan Authorization 1st June, 2016 Seek legal authorization Project Commencement Meeting 1st July, 2016 Meet the workers of the project Plan House Renovation. 1st July, 2016 Identify the renovation needs Buy supplies 1st July, 2016 Buy the tools of work Renovate houses 1st July, 2016 Actual work Analysis Phase 1st March, 2017 Compare the project against the goals Use evaluation 1st March, 2017 Check that the goals are met End-user training 1st April, 2017 Train the buyers Market houses 1st April,2017 Identify the buyers Project Administration 1st Jan., 2016 Office work Project Status Conferences 1st April, 2017 Project briefing Threat/peril Management 1st May, 2017 Risk mitigation Apprise Project Managing Strategy 1st May, 2017 Review the project strategy Stocktaking 1st May, 2017 Determine the expenses Document Lessons Learned 1st June, 2017 Success factors Fill in Files/Registers 1st July, 2017 Make the necessary entries Achievement of Official Recognition 1st July, 2017 Seek official completion recognition Documentation Files/ Papers 1st July, 2017 Archiving Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Gantt chart. BSBPMG522A Undertake Projects Work Period Highlight: 1   Plan   Actual   % Complete PLAN PLAN ACTUAL ACTUAL PERCENT ACTIVITY START DURATION START DURATION COMPLETE Months               1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ## 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Evaluation & References 1 2 1 1 100% Develop Project Contract 2 2 2 2 100% Deliverable: Submit Project Charter 2 1 2 1 100% Project Promoter Analyses Project Approval 2 1 2 1 100% Project Grant Ratified 2 1 2 1 100% Create Preliminary Scope Statement 3 1 3 1 100% Determine Project Lineup 3 1 3 1 100% Project Crew Commencement Meeting 4 1 4 1 100% Cultivate Project Proposal 5 1 5 1 100% Remit Project Proposal 5 1 5 1 100% Milestone: Development Plan Authorization 6 1 6 1 100% Project Commencement Meeting 7 1 7 1 100% Plan house renovation 7 2 7 2 100% Buy supplies 7 1 7 1 100% Renovate houses 7 12 7 12 99% Analysis Phase 15 1 15 1 90% Use evaluation 15 1 15 1 100% User Training 16 3 16 4 100% Market the houses 16 3 16 3 100% Project Administration 1 19 1 19 100% Project Status Conferences 16 1 16 1 100% Threat/peril Management 17 1 17 1 100% Apprise Project Managing Strategy 17 1 17 1 100% Stocktaking 17 1 17 1 100% Document Lessons Learned 18 1 18 1 100% Filling in the files, official recognition, documentation of files 19 1 19 1 100% Risk register (Report) Risk(Peril) Likelihood (Probability) (H/M/L) Impact (Influence) (H/M/L) Mitigation strategies Responsible Overcapitalising. H H Strict budgeting Finance department Property devaluation M M Renovation of specific parts Project manager Health risk M M Use of protective gear Project team Over-personalising M M Strict design guidelines Project manager Building regulations L L Consultations External experts Project Title: Max Lionel Realty Home Renovation. Project Client: Max Lionel Realty Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y Project risk management Plan. Risk (Peril) (Scale) Level (high/medium/low) Mitigation strategy Overcapitalising. High Strict budgeting Health risk Medium Use protective gear Over-personalising Medium Strict design guidelines Property devaluation Medium Renovation of specific parts Building regulations Low Consultations Project Title: Max Lionel Realty Home Renovation. Project Client: Date: Version: Project Sponsor: Kim Sweeney. Project Manager: Sam White File Name: BSBPMG522A Undertake Projects Work. Page x of y In this project, the proactive risk management approach is the most suitable. To avoid financial risks, the project executives will use the mathematical valuation of the project through such methods as net-present value analysis and payback period. The methods will help determine the influence of the project overcapitalization as well as house devaluation on the product. Besides, the project’s health risk of the workers will be mitigated through the use of protective gear in all activities. Moreover, all documents will be obtained before the commencement of the project to avoid regulatory friction. The risk management system will also incorporate clear communication network where the executive management will gain access to pertinent information. Project deliverables. The major deliverables for this project include several milestones. In these milestones various activities will be accomplished. These activities include: 1. Doors replacements. 2. Fittings replacement. 3. Floor repairs. 4. Kitchen remodelling. 5. Sanitation facilities repairs. 6. Power re-installation. 7. Gate and security features. The project milestones are marked by the houses renovation commencement, preparation, implementation, regulation and adjournment. The commencement milestone starts where the project planning commences and is accomplished after the ratification of the project. House renovation project preparation starts with the creation of the project scope statement and is accomplished at the authorization of the development plan. Moreover, the implementation milestone starts with the commencement meeting and is accomplished at the end-user training phase. The regulation milestone starts with the administration of the project and is accomplished through the appraisal of the management strategy. The whole project is completed in the adjournment milestone which starts with stocktaking and ends with the accomplishment of the record-keeping/documentation. Budget Income:  $ Commissions and fees 745,000 COGS 245,000 Investment income 1,150,500 Total Income 2,140,500     Expenses:  $ Consultancy fees 35,000 Communication expenses 19,000 Premises expenses 165,000 Staff travel, transport and accommodation. $55,500 Capital expenditure 87,000 Office supplies 47,000 Depreciation and amortisation 77,569 Professional fees 47,500 Wages and salaries 750,700 Total Expenses 1,284,269 Surplus 856,231 Project Manager Sam White Project Sponsor: Kim Sweeney. Project Client/Owner Max Lionel Realty Other Read More