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Table of Contents Part 1 Discussion Paper..................................................................................................3 Approaches to the Project...............................................................................................3 Theories and Concepts in Project Management.............................................................4 Cost Benefit Analysis ............................................................................................4 Project Management oft!are .............................................................................." #antt$s Chart.........................................................................................................." Part % Project &eport......................................................................................................' (ntroduction ...................................................................................................................' &ossmore )otel* an (ntroduction ..................................................................................' The Proposed Project .....................................................................................................+ elected Approach to the project , Traditional Approach.............................................+ &ationale -ehind choosing this Project .......................................................................1. Project Aims and /uantifia-le 0-jecti1es ..................................................................1. &esources re2uired and organi3ational issues associated !ith project........................11 #uest room refur-ishment , Cost Benefit Analysis.....................................................11 4easi-ility study ..........................................................................................................1% 5et Present 6alue ................................................................................................13 (nternal &ate of &eturn7........................................................................................14 (mpact of not implementing the Project ..............................................................14 Detailed Project Plan....................................................................................................18 #ant$s Chart ................................................................................................................1+ &is9 and Measures to Control it...................................................................................1+ Measures to control the ris9 ........................................................................................%. &eferences ...................................................................................................................%. Murphy P.: Murphy A.: %..4: trategic management for tourism communities7 -ridging the gaps: Channel 1ie! pu-lications: ;<......................................................%1 Pries <. and /uingley =.: %.13: Total /uality Management for Project Management: Taylor and 4rancis #roup: ; A...................................................................................%1
#$treme project approac" This approach is useful !hen aims and o-jecti1es are not 1ery clear in the -eginning of project. (n the dynamic en1ironment: or situations for e>ample changing customer re2uirements: this is the approach usually follo!ed. (n situations !here project is guided -y the mar9et changes: it is difficult to ascertain the re2uirements of project. 0ne e>ample could -e mo-ile phone industry !here ne! phones models are coming so fre2uently as !ell as needs of customers are also changing rapidly. The project team has to plan according to the current data a1aila-le and modifies according to changes in the re2uirements. #vent c"ain project approac" According to this approach an e1ent in project can create a chin of e1ents. (t could -e put in this !ay a single constraint can create se1eral constraints in a chain. 4or e>ample if departments are dependent on each other constraint in one department can influence the producti1ity of do!nstream departments. The project team is supposed to re1ie! the past e1ents and identify the possi-le ris9s in the project and identify the pre1enti1e measures.
tage17 Calculation of social costs B social -enefits is the first stage in this analysis. This !ould include calculation of7 Tangi-le Benefits and Costs ?i.e. direct costs and -enefits@ (ntangi-le Benefits and Costs ?i.e. indirect costs and -enefits , e>ternalities@ This process is 1ery important , it in1ol1es trying to identify all of the significant costs B -enefits tage %7 * Discounting the future 1alue of -enefits * costs and -enefits accrue o1er time. (ndi1iduals normally prefer to enjoy the -enefits no! rather than later , so the 1alue of future -enefits has to -e discounted tage 37 * Comparing the costs and -enefits to determine the net social rate of return tage 47 * Comparing net rate of return from different projects , the go1ernment may ha1e limited funds at its disposal and therefore faces a choice a-out !hich projects should -e gi1en the go*ahead The shortcomings of this analysis are that all the costs cannot -e determined for e>ample there are some intangi-le costs to the project that cannot -e measured or identified. The cost such as la-our cost: material cost can -e measured -ut the 1alue attached to destruction of ha-itat is priceless. C1eryone influenced -y the project may not -e co1ered -y the cost -enefit analysis. (n construction projects such as an airport or a road the en1ironmental cost is difficult to determine. There are many sta9eholders that are influenced -y the project. The influence of one group can -e negati1e and at the same time it could -e positi1e on other group.
&easibility 'tudy The feasi-ility study in1ol1es studying that project is 1ia-le financially as !ell as -eneficially. The feasi-ility study is a-out measuring the financial 1ia-ility !ith the help of methods such as pay-ac9 period: internal rate of return: net present 1alue. All these analysis tells the financial gains that can -e made -y the project. The financial gains are measured considering all the 1aria-le for e>ample cost of finance: present 1alue of money. The pay-ac9 method simply considers the period in !hich the
in1estment is co1ered. The net present 1alue of the future profits is calculated through 5P6 analysis. These are some of the financial calculation that helps in determining the feasi-ility of the project
+antt,s C"art
#antt Charts ?also 9no!n as #antt Diagrams@ are useful tools for analy3ing and planning more comple> projects. They help to plan out the tas9s that need to -e completed and gi1es a -asis for scheduling !hen these tas9s !ill -e carried out. Dhen a project is under !ay: #antt Charts helps to monitor !hether the project is on schedule. (f it is not: it allo!s you to pinpoint the remedial action necessary to
put it -ac9 on schedule. According to 4ield and <eller ?1++'@ its !ea9ness is that the dependence of the tas9 on other tas9 can not -e sho!n e>cept interference. Total -uality Management The total 2uality management is a techni2ue that ensures that the 2uality is em-edded in all the phases of project right from -eginning to accomplishment. This techni2ue is used in the industries li9e manufacturing and aerospace. This approach in1ol1es consistent re1ie! of the 2uality aspects of the project. Planning and communications are the 9ey points in the process. Dell defined procedures must -e follo!ed in order to ma9e the project successful. Planning must -e a-le to find the o-stacles and their solutions. These are some of the rules of Total /uality Management. According to Pries <. and /uingley =. ?%.13@ the 2uality management considered lastly -y project manager after scheduling and -udgeting. )o!e1er 2uality issues should -e more importance and majority of failures are due to poor 2uality techni2ues applied to the project. (t could result in chaos during the project and results are not desira-le in the end. Total /uality Management is a !ay of handing the 2uality issues from -eginning to the end.
the hotel and a-out 1. to 1% employees temporarily hired during the pea9 season. The organisation structure of hotel can -e seen in the follo!ing figure.
Thus in order to meet the re2uirements of current mar9et and ma9e the customers satisfied: this project is significant.
&inancial Cost Clement cost in G Alterations and demolitions (nternal !alls and partitions Dall finishes 4loor finishes Ceiling finishes 4urniture and fittings anitary fittings Disposal installations Clectrical installations 1..:'4. 1+:%8. 183:H8' 111:H". 8%:%'. 118:H". 18.:... H.:... 1++:'".
Communications installation Builders$ !or9 in connection Preliminaries and contingencies Total construction cost
5on 4inancial Costs 5on operation of the rooms under refur-ishment Distur-ance or incon1enience to the guests during the
%enefits of )efurbis"ment Major refur-ishment can ha1e a dramatic effect on the performance of a hotel. (n the first year of operation follo!ing the completion of a refur-ishment at the a1oy #roupFs Claridges in central Eondon in 1++': turno1er increased -y 3'I and profita-ility -y more than +.I. imilarly: Ee MeridienFs planned G+.m ma9eo1er of #ros1enor )ouse in central Eondon should see its 1alue increase -y '.I to G"..m ?!!!.-uilding.co.u9@. (t has -een calculated that hotels sa1e up to '.I !hen deciding to refur-ish as the costs re2uired to maintain something older far out!eigh the refur-ishment ones ?Dalton A: %.1%@. (ncreased customer satisfaction
&easibility study
(n order to analyse the feasi-ility of the study: it has to esta-lished the re2uired resources are a1aila-le. Also: it is to -e ascertained that the project !ill -e -eneficial to the hotel. The -enefits can -e tangi-le as !ell as non tangi-le. The tangi-le -enefits can -e in form of monitory gains: increase in the profits. To calculate that the project
!ill -e -eneficial let us first calculate that time period ta9en to pay the in1ested money -ac9.
Paybac* Period:
(t is assumed that if the project is financed -y -an9 loan: hotel can get the loan at rate of interest of HI. De assume for the calculation purpose that the !hole in1estment amount is coming from money lent -y -an9. The a1erage cash flo! after deducting the e>penses !ill increase -y 3..:... per year according to predictions. ;sing this information the pay-ac9 period is calculated here. Pay-ac9 period J 1:%%4:.1'...K3..... J 4..' years Thus it !ill ta9e a-out 8 years for project to co1er its money. Thus it is a fa1oura-le project as time is not 1ery long to reco1er the in1estment.
The 5et Present 6alue of the 8 annual net cash flo!s discounted at HI !ould -e G":.41.%3. ince the 5P6 is positi1e: this !ould -e considered to -e a desira-le in1estment.
ince the internal rate of return is more that the rate of interest. This project is fa1oura-le. De ha1e considered only fi1e years after the in1estment. But it !ill continue the returns e1en after fi1e years.
P"ase .: Construction phase t!o !ill -e for ground floor rooms 13*%4. This !ill -e completed in ne>t %. days in same se2uence. P"ase ?: (n phase three upper floor rooms !ill -e constructed. (n order to do this a temporary !ay to upper floor other than main staircase used to reach it: !ill -e constructed. Thus this !ill need %% days to finish the jo-. P"ase >: The final phase !ill -e refur-ishing the rest of 1+ rooms on upper floor. A di1ersion !ill -e constructed in order to reach the other rooms at upper floor. The main staircase !ill -e used -y the !or9ers and !ill not -e accessi-le to guests and staff during the construction. This !or9 is scheduled in %8 days.
'c"eduling Tas* 5ame Phase 1 Ei2uidate 1% &ooms Demolition &eplace Do!n lights Dall preparation Tile !or9 Bathroom 4i>ing Painting Carpet Phase % Ei2uidate 1% &ooms Demolition &eplace Do!n lights Dall preparation Duration %. days 1 day % day 3 day % day % day 3 day 4 day 3 day %. days 1 % 3 % 'tart &inis"
Tile !or9 Bathroom 4i>ing Painting Carpet Phase 3 Construct Di1ersion Ei2uidate 1% &ooms Demolition &eplace Do!n lights Dall preparation Tile !or9 Bathroom 4i>ing Painting Carpet Phase 4 Construct Di1ersion Ei2uidate 1+ &ooms Demolition &eplace Do!n lights Dall preparation Tile !or9 Bathroom 4i>ing Painting Carpet
% 3 4 3 %% days % 1 % 3 % % 3 4 3 3. % 1 % 4 3 3 8 " 4
+ant,s C"art
0ne of the potential ris9s is that the !ay in !hich the e>isting structure can ha1e on the ne! room layouts. These ris9s affect the desired outcomes.
These are the potential ris9s that need to -e accessed -efore commencing the project.
)eferences
A1ramidou: 5 ?%..1@. Application of Quality Assurance Systems in the Rehabilitation of the Architectural Heritage. Hth (nternational Conference on (nspection: Appraisal: &epairs B Maintenance of Buildings B tructures: 11*13 ept %..1. 5ottingham: ;nited <ingdom
<loopen-org T.: %.1%: Contemporary Project Management: %nd Cdition: outh Cengage Eearning: ; A
Murphy P.: Murphy A.: %..4: Strategic management for tourism communities: bri ging the gaps: Channel 1ie! pu-lications: ;< Pries <. and /uingley =.: %.13: !otal Quality Management for Project Management: Taylor and 4rancis #roup: ; A &eyers: = ?%..3@. &is9 and Eia-ility for Consultants Ad1ising on the Built )eritage. Structural Sur"ey: %1?1@7'*18 &eyers: =. and Mansfield: =. ?%..1@. A Practitioner Perspecti"e on Ris# Management in Conser"ation Refurbishment Projects. C0B&A Conference Papers 4ran9 D.: %.1%: $ifferent Approaches to the Project Management http7KK!!!.e>aminer.comKarticleKdifferent*approaches*for*project* management: MAccessed on 1%K3K%.13N