By the Bay - Risk Management for the Project - Example

Table of Contents 1. Introduction 5 Purpose of document 5 Project background 5 d. Project stakeholders 5 2. Project Scope 6 Project objective 6 Project deliverables 6 Milestones 6 Technical requirements 7 Limits and exclusions 8 3. Timeframe and Milestones 8 Work Breakdown Structure (WBS) 8 Project schedule (Gantt chart) 8 Network diagram (critical path) 9 The budget 10 4. Risk Management 11 Project Organisation and Management 11 Project organisation 11 Project Roles and Responsibilities 13 Role 13 Description 13 Business Sponsor 13 The main sponsors for the project are the stakeholders of Houlihan Investment as well as the board members for the project Manager for problems as well as verdicts. The role depicts the interest of every one who will make use of the hotel or derive benefits from the financial deliverables of the project. 13 Project Board 13 The project board is responsible for triumph of the project as well as has accountable for project. The project board approves the main project plans, guarantees that need resources are provided, adjudicate on any conflict within the project r discuss the way forward to any problems identified in the project. The main role of the project board is to ensure that the project is centered towards attaining the intended goals as well as guaranteeing deliverables may be attaining the projected advantages. 13 Project Director 13 The Project Director ensures transparency to provide the project as per the project deductions as well as full project permission within the budget limits as well as standards. The project director’s duty is to control a well as direct allotted pr0oject resources, make verdicts concerning the pr0oejct directions as well as guarantee that the project is managed well. The direct is as well as accountable for project delivery of solution that is able of achieving the results as well as benefits. 13 Project Manager 13 The Project Manager has the permission to manage the project on a daily basis on behalf of the project director within the limits provided by the director of the project. The project manage main duties to make sure that the project generates the needed deliverables, to be required of 13 Project Team 13 The Project Team executes the task as well as duties allotted to them in compliance to the project’s duties and accountabilities. The project team members are responsible for identifying as well as intensifying any risks or matters encountered at the course of the project 13 Third Party Supplier 13 The contractor executes the activities allotted to them according to the agreed terms of the contract. 13 Project Support 13 The project aids the project manager and project team members in comprehending the functions of the management. 13 Project controls 14 Change management (strategies) 14 Management reporting 15 Communications Plan 15 Audience 15 Communications Outreach 15 Monthly Status Reports 15 Monthly Steering Committee Meeting 15 The status of the meeting are held one a monthly basis and are coordinated by the project manager. Each member of the steering committee is involved in the meeting. The project manger distributes the status reports to every member before the meeting starts in order for every team member to appraise the reports. 15 Bi-Monthly Project Team Status Meeting 16 The status meeting is held monthly, each member of the project team will be invited to contribute to the meeting agenda. The pr0oejct manager supply the status report to every team member before the meeting starts[Pau021]. 16 Works Cited 17 17 1. Introduction Purpose of document The project ‘By the Bay” restoration focuses at comprehensive information needed by top management so as to enhance the project financing. The intended audience is Houlihan venture as well as the administration of By the Bay. The project management plan intends to undertake a feasibility studies in a new venture in order to expands its business operations in Melbourne due to the need to grow its footprints, Houlihan venture has targeted :By the Bay” due to its strategic locations on the waterfront of the much loved St Kilda. The objective will therefore to evaluate the redevelopment of the business then reopening as swell as refurnishing it. This will optimistically lead to objectives of an improved footprint in Melbourne. Project background Houlihan Investment’ is considering investing a new project “By the Bay” which is a current hotel based on the water in the centre of St Skilda. The property is in bad shape and needs some renovation. This is due to poor management of the hotel in past which lead to poor reputation. the initial states of the project management team is to evaluate the feasibility of renovating the hotel, rehabilitation as well as reopen the hotel under the same name “By the Bay”. The project management team believes that this will lead to profit realisation and good reputation standard retention form the customers. The project is therefore estimated to take 21 months with an estimated cost of $5million[Bla01]. d. Project stakeholders The shareholders of the project management are the Houlihan Company and the By the Bay since; they are interest with the project. Houlihan is interested in acquisition of By the Bay in order to Increase its footprint in Melbourne hence, they are the main shareholders in the project. On the contrary, By the Bay is a shareholder of the project since, they are concerned with the refurbishment, re-opening as well as regain of its reputation in St Skilda. In this regards, both Shareholders are interested in the project[Dic08]. 2. Project Scope Project objective The project objectives entail the three aims which are; Restoration and construction which is estimated to take 87-9 months Implementation of new company structure which approximated to be completed in phase and re-examined in phase two. Re-opening as well as rehabilitation which is estimated to take one year following re-opening. 1 After re-opening, it is assumed that the project will take one year prior to the hotel being perceived as fully operational. After it is wholly operational, the project will be closed. Project deliverables Full constructed building – approved by construction manager New management staff training Recommendations for future avoidance of problem – continual pd, Profitability 12 months post re opening. Minimum 75% occupancy rate during first 12 months 90% guest satisfaction Recommendation to sustained success – continual staff training PD, continual property maintained Success will be determined by bill (Houlihan liaison) and he will deem success or not. Milestones The following is the high-level milestone schedule: Phase 1 Includes construction and extension of the current ‘By the Bay’ establishment. The aim of this is to increase the current size (room number, room size) and facilities and bring it up to operational standard. This will take around 9 months. Phase 2 Implementation of new management/organization structure – this will include relevant hiring, firing and training of existing staff. Will also include an organization restructure in order to make it profitable and run as best as possible. This will happen throughout the whole process (start to finish) and will be continual for as long as ‘By the Bay’ is pawned by Houlihan Investment in order to make it the best possible hotel it can be. Phase 3 This will include renovations of current hotel facilities and rooms. The reason this is in phase 3 is that, while not ideal, it enables the hotel to operate and have some kind of cash flow while still being able to iron out necessary kinks from phase 1 and 2 before the project properly commences. This will start after phase 1 (9months) and go for 12 months[Bla01]. Technical requirements Personnel Resources Role Name(s) Dates Hours Project manager Hang Liu April 1st to July. 30th 2,000 Budget planning director Wendy Victor April 1st to July. 30th 300 Design consultant Martin Smith, and one assistant April 1st to April 29th 300 Construction team Jim Ken, and other 9 members April 30th to Oct. 2nd 5,000 Technical team Amy jones, and other for members Aug.19th to Oct. 16th 400 Equipment resources Equipment Dates Estimated cost ($) Construction materials April 30th to Sept. 2nd 160,000 Computers and software Aug.19th to Sept. 16th 70,000 New furniture Aug.19th to Sept. 16th 30,000 Office supplies April 1st to Oct. 30th 7,000 Total $267,000 Financial resources ($) Resources Estimated cost ($) Personnel resource 260,000 Equipment cost 267,000 In all: $517,000 Limits and exclusions The new project will be constructed to the standards of the finalized project design The company will be accountable for any future maintenance of the Hotel The project management team shall be held accountable for failure of the project completion. The contraction and training is limited to weekdays ending Friday from 8Am to 5 Pm. Project Manager should approve any procedure pit in place. 3. Timeframe and Milestones Work Breakdown Structure (WBS) Project schedule (Gantt chart) Activity ES LS EF LF Slack (LF-EF) A 1 0 4 6 2 B 2 4 11 11 0 C 3 10 25 25 0 D 4 11 22 22 0 E 5 21 26 26 0 F 6 22 33 33 0 G 7 36 41 41 0 H 8 31 35 35 0 I 9 33 51 51 0 J 10 51 66 66 0 The critical path the longest path which is {A-B-D-F-I-J} which is {4+7+11+11+18} =66 days Network diagram (critical path) 4. Cost Estimates (Budget) The budget for renovation and reopening of By the Bay is categorized into three phase as follows Phase one This phase requires budget estimates of $4million in order to complete this phase. Phase entails the construction and development of the By the Bay Phase two; Phase two entails no budget allocation since this is the management expense as well as is different from the contribution of Houlihan ventures hence; phase two is competed by the hotel itself. PHASE 3: This is allotted $1 million. The phase entails cost of constructions for renovation of the hotel, personnel training and staffing cost. The budget PHASE 1   Material Costs   Wood $200,000 Concrete $300,000 Steel $300,000 Cosmetic $500,000 Fittings/Ornaments $900,000 TOTAL $2,200,000     Trade Costs   Electrician $300,000 Plumber $300,000 Builder $500,000 Carpenter $400,000 Concreters $300,000 Labour $200,000 TOTAL PHASE 1 $1,800,000 TOTAL PHASE 1$ 2 $4,000,000     PHASE 3   Material Costs   Cosmetic Material $350,000 Fittings/Ornaments $350,000 Miscellaneous $50,000 TOTAL $750,000     Trade Costs   Carpenter $50,000 Electrician $50,000 Builder $50,000 Miscellaneous $50,000 TOTAL $50,000 Staff/Operational Costs   Training/PD $50,000 Hiring $70,000 Consultants $80,000 TOTAL $200,000 4. Risk Management Project Organisation and Management The project manage anticipates likelihood of risk affecting the project to be time management which may affect the contractual agreement leading to penalties as well as unplanned cost. Go get rid of this, the project team, ensures that there is constant on every aspect of the project. The project team will have a comprehensive procedure of entire aspects of the project which is an implication that in case of problems identified in the course of the project, it can be corrected immediately which ensure that the project runs smoothly and is completed on time. The impact of over expenditure on budget will dealt with by the project management team by having a constant reporting as well as assessment if every phases of the project. This will ensure that problems are identified in every phase of budget and correction made to ensure that the project is within the financial constraints. All project risk identified must be registered in the risk register. The project risk identified at the start of the project must be listed in the project risk register[Pau021]. Project organisation Project Roles and Responsibilities Role Description Business Sponsor The main sponsors for the project are the stakeholders of Houlihan Investment as well as the board members for the project Manager for problems as well as verdicts. The role depicts the interest of every one who will make use of the hotel or derive benefits from the financial deliverables of the project. Project Board The project board is responsible for triumph of the project as well as has accountable for project. The project board approves the main project plans, guarantees that need resources are provided, adjudicate on any conflict within the project r discuss the way forward to any problems identified in the project. The main role of the project board is to ensure that the project is centered towards attaining the intended goals as well as guaranteeing deliverables may be attaining the projected advantages. Project Director The Project Director ensures transparency to provide the project as per the project deductions as well as full project permission within the budget limits as well as standards. The project director’s duty is to control a well as direct allotted pr0oject resources, make verdicts concerning the pr0oejct directions as well as guarantee that the project is managed well. The direct is as well as accountable for project delivery of solution that is able of achieving the results as well as benefits. Project Manager The Project Manager has the permission to manage the project on a daily basis on behalf of the project director within the limits provided by the director of the project. The project manage main duties to make sure that the project generates the needed deliverables, to be required of Project Team The Project Team executes the task as well as duties allotted to them in compliance to the project’s duties and accountabilities. The project team members are responsible for identifying as well as intensifying any risks or matters encountered at the course of the project Third Party Supplier The contractor executes the activities allotted to them according to the agreed terms of the contract. Project Support The project aids the project manager and project team members in comprehending the functions of the management. Project controls Change management (strategies) The information entailed in the project plan will change the progress of the project. Whilst change is both certain and needed, it is significant to take into consideration that changes in the project plan will affect the at least some vital success factor such as the time , project quality and resources, the verdict by which change to the project pan must be coordinated ensuring the following procedure[Pau02]. Step 1 Immediately the change that affects the project scope, schedule, personnel or cost is realized, the project manager will document the matter. Step 2 The project manager will appraise the change as well as establish the linked effect to the project and forward the matter together with recommendation to the project steering committee to appraise and make a decision. Step 3 Upon the receipt, the project steering committee must reach on an agreement on whether to appraise or reject or even change the request on the basis of information entailed in the project, the recommendation of the manager as well as their own judgment. Step 4: If needed under the decision matrix or because of agreement, the project sponsors shall appraise the matter as well as provide a final verdict on the approval, rejection or amendments. Step 5 Subsequent to approval or rejection by the project steering committee, the project manager shall inform the original requestor of the action taken in which case, there isn’t an appeal process. Management reporting Communications Plan Distributing the knowledge concerning the project is Important to the success of the project. The project contributors desire knowledge of what the situation of the project is as well as the manner to which they are impacted. Moreover, they are keen to contribute. The more the individual are knowledgeable concerning the progress if the project as well as the manner to which they will support then in the future, the more likely they will involves themselves and benefits. The plan proved the framework for notifying, connecting as well as getting buy-in from entire contributors throughout the time of the project[Dav11]. Audience This communication plan is intended for the following audiences: Project Sponsor Steering Committee Project Manager User Group Participants Subject Matter Experts Communications Outreach The following is the list of communication events that are determined for the project Monthly Status Reports The Project Manager will provide documented status report to the project steering committee. The report will entail the following trailed information against the project plan. Summary of tasks completed in previous month Summary of tasks scheduled for completion in the next month Summary of issue status and resolutions Monthly Steering Committee Meeting The status of the meeting are held one a monthly basis and are coordinated by the project manager. Each member of the steering committee is involved in the meeting. The project manger distributes the status reports to every member before the meeting starts in order for every team member to appraise the reports. Bi-Monthly Project Team Status Meeting The status meeting is held monthly, each member of the project team will be invited to contribute to the meeting agenda. The pr0oejct manager supply the status report to every team member before the meeting starts[Pau021]. Works Cited Bla01: , (Blanchard), Dic08: , (Dick Billows), Pau021: , (Royer, Project Risk Management: A Proactive Approach), Pau02: , (Royer, Project Risk Management: A Proactive Approach), Dav11: , (Wirick), Read More