Summary of the Report:
Summary of the Report:
Project management is an area that deals with planning, organizing, securing, and managing resources to achieve specific goals. This management plan will address the objectives, finding and major recommendations in the business case of renovation and refurbishment project. It will briefly address the reflective statement which will form the conclusion.
Project life cycle can be defined as phases through which the project evolves from the start point to termination. It is absolutely indispensable in projects management (Patel and Morris, 1999). It has a great significant on how projects are structured. The basic life cycle follows a common generic sequence: concept or initiation, growth or organization, production or operational and shut-down. The exact names used for these phases vary between industries and organizations. The project management phases are very important in planning a project since they provide a framework for budgeting, manpower planning and resource allocation, and for scheduling project evaluation and project reviews. Similarly, the methods used in dividing project into phases often differ across industries and products.
The phases can be categorized into four. Concept initiation; which involves the management deciding that a project is needed. The management establishes the project goals and an estimate of the resources required. Management team markets the idea on the need for project management to the organization. It also makes key appointments necessary to the project success. The second phase is the growth phase. In this phase, the organizational approach is properly defined. The project plan and the necessary schedule for operational phase are also outlined. In addition, objectives, goals and aims are stated. The team appointed by the management builds up at this stage. The third and the most important stage in the project cycle is the operational phase. It is in this phase that the major objectives of the project are accomplished (Graham, 2002).
The work in this phase include: structure design, development, construction, production, product testing, site activation, and so many other activities. After all these activities are accomplished, the project will enter the last phase-the phase of shut down. In other words, the project is terminated. The human resources and other financial resources are transferred to other departments of the organizations (Stuckenbruck, 1981).In the preparation of the business plan, the organization Thomson Morgan Associates, which is an Architectural Design and Management institution, had been consulted to carry out renovation and refurbishment the property located at 6 Queenstown Road, Battersea, London, SW8 3RX. The building in question has been rented to a Chemist which has been utilizing for the last five years.
The property in question is however in a state of serious disrepair, despite the fact that it is strategically located adjacent to local shops and transport connections. It is also near the Battersea Park and Queenstown Road while the bus routes stop adjacent to the site, hence being a vital location for business location (Jones & Mohammed, 2003). The building is an old design and in a state of disrepair hence exposing the residents to risks and lack of comfort. However, the building is listed since it is of particular architectural merit, hence placed in Statutory List of Buildings of Special Architectural or Historic Interest. The property requires special permission from the local planning authority for it to be demolished, extended or altered. Moreover, legal and regulatory requirements can be used to compel the owner of the building to repair and maintain it, and can be prosecuted if they perform unauthorized alterations or fail to repair and maintain it as required. The ultimate solution to make the building usable is therefore through renovation, without making adverse alterations to the structure and the design of the property.
The refurbishment plan originates from the need to make the building usable and hence increase the profit harnessed courtesy of its strategic location. Instead of simply actualizing a single repair, the company will make use of this change to combine it with several other improvements. The aim and goal of the project is to develop the most strategically significant utilization of the property owned by the company, so as to reap optimal benefits, financial, social or otherwise (John, Kelly and Roy, 2002).
The strategic objective of refurbishing the building is to ensure that the building is made reusable, while attaining strategic competitive advantage due to the fact that the building is listed. In addition, this also ensures that the building is later used for a maximum economic activity, and social and environmental benefits. Moreover, the project objective is to utilize the current building, without demolishing and constructing a new building. This enables the company to use fewer resources to refurbish the building, while maintaining the artistic value of the property. This results into realization of higher income in terms of rent, while retaining the building as a souvenir. Furthermore, the refurbishment of the building benefits the company in terms of council grants of £30,000 for two flats, moreover the company shall benefit from renting the building to the council for three years, and hence the company realizing multidimensional benefits in terms of rent, grants, and maintains the building as a listed building while making the property usable and attractive. The project also aims at lengthening the life span of the building. The governments and housing associations play an important role in renovation and refurbishments. The architects and the contractors apparently play an equally important role. The government gets involved through local government by offering subsidies, housing associations and providing specialist consultants.
When a project is starting, it is essential to identify all of the organizations and individuals who may have an impact on the project. Those that will be impacted by the project should also be identified. A stakeholder can refer to a person or an organization that actively takes part in the activities of a project. It may also refer to those whose interests may be affected positively or negatively by implementation of the project. Stakeholders can be part of the organization or external to an organization. In many projects the public at large becomes stakeholders to be considered during the project. The challenge for the project manager when the public is a stakeholder will be acting while considering public needs. Often there is no direct representative of the public to be consulted during project planning and implementation. A project manager must be sure to recognize and maintain a list all potential stakeholders for the project. Potential stakeholders include but are not limited to; competitors, national communities, employees, professional associations, government, prospective customers, government regulatory agencies and prospective employees.
The project manager should maintain records of all relevant information for all identified stakeholders. The information of interest may include the stakeholder’s interests, involvement, expectations, importance, influence, and impact on the project’s execution as well as any specific communications requirements. It is paramount to note that although some identified stakeholders may not actually require any communications, there is still a need to identify them. Important tools such as rating scale, influence diagram, or chart may be used to identify stakeholders and rate their level of interest and involvement in the project. This will allow the project manager to assess the level of power, influence, interest, or impact that the stakeholder may have on the project.
Project communication management is concerned with how communication is carried out effectively in the process of carrying out the project. Effective communication ensures that the stakeholders are regularly updated about progress and problems encountered in the project. Project communication management process includes Communications planning, which involves this involves determining the information and communicating the same to the stakeholders. It determines who needs what information on, when they need it, and how will be dispatched to them. The second is Information distribution which ensures that information that is supposed to reach stakeholder, reaches them in an accessible and timely way (Lientz, and Rea, 2001). Third is the performance reporting which is concerned with collection and reporting of the performance progress of the project. Lastly, project closures can be utilized to disseminate information in the last phase of the project completion. Information in the renovation project will be dispatched to all stakeholders effectively using the methods discussed.
It is expected that the tenant will not be enthusiastic about large-scale refurbishments. Though the property is in a state of despair, the tenant might have been satisfied with the apartment, the neighborhood and the comfort. These plans for refurbishment may come as a surprise to the tenants. In this case, intensive consultation with tenant representative will be done to let the tenant see the comfort improvement and financial benefits that will come with the project.
Due to the uniqueness of projects, every project includes a relatively high degree of uncertainty. Risk management is the systematic practice of identifying and reducing the threats that exist in the project and the project’s environment due to risk factors. When carrying out a project, the project manager can rightly be called a risk manager. In real sense, all project management is risk management. The technique used in formal project management and the strict discipline of project management is in itself a risk management strategy. This comes with activities such as: scope planning, work breakdown structures, communication plans, stakeholder maps, human resource management and many others.
It is the duty of a project manager to make prudent decisions that would see the risks level reduced. This will make sure that the focus on project goals is maintained. Risk management actually provides a platform to better understand the nature of the project, risks involved and hence involve the team members early enough. In essence, risk management is a formal process that involves risk identification, risk analysis- both qualitative and quantitative, risk response planning, and even risk monitoring and control.
Research that have been conducted in many business intelligence projects shows that poor performance in terms of reaching scope, quality, time and cost objectives is as a result of poor risk management. Most of these shortcomings are as a result of either unforeseen events, which may or may not have been anticipated by properly experienced project management, or foreseen events for which the risks were not fully assessed. If risk management is not given due attention, it can result into unnecessary and often heavy losses, or worse lead to complete project failure. The biggest impediment to proper risk management is the management’s attitude towards risk itself. There is also the belief that the application of formal project management frameworks to highly volatile and iterative projects slows down the project. In most occasions, inherent risks are simply optimistically ignored and attention is shifted to higher level risks. It should however be appreciated that risk management methods are a requirement for project success and the variation in such as project is the way in which the method is applied. Risk management method and principles are used regardless of whether the project is a business intelligence implementation, construction of a bridge or renovation of a structure.
The extent of risk on a business project largely varies throughout the course of the project life cycle lifecycle. The most opportune time for achieving the greatest impact on project results is early in the lifecycle. During this period, the risk profile is comparatively low. However in the last phase of the project, high vulnerability to risk occurs. This is caused by the degree of investment to this point and due to the levels of expectations generated in the project as it progresses. Once the inherent risks have been known, they should be analyzed in terms of monetary implication and their probability of occurring. The risk events should then be prioritized and strategies identified on how to respond to the most important risks. For instance, risks that have a high probability of occurring based on historical information and those that can have a big negative effect on the project can be classified as high priority risks that need a rigorous strategy for either reducing the effect or reducing their chances of occurring.
Risk analysis is best done when all the team members are present in a workshop setting. This goes a long way to opening channels of communication concerning the project and hence developing a more in-depth understanding of what is expected, and what the team needs to address so as to be successful. The ultimate aim of risk management is to identify project risks and come up with strategies that either significantly reduces the effects of the risks or take calculated steps to avoid them altogether. It involves strategic planning, which minimizes the likelihood and the negative effects, and carefully matches responsibility and strategies to shield the project from the risk. Risk management is thus a very rigorous and creative process.
Work Breakdown Structures, what is commonly referred to as (WBS) are of high importance as the process of project management kicks off. According to Hali (1993), project success may be directly attributed to use of a WBS. It is common knowledge that there are many things that can go wrong in projects regardless of how successfully it is planned and implemented. In most cases, project failures can be attributed to a poorly developed or nonexistent WBS. A poorly constructed WBS can result into negative project outcomes including ongoing, repeated project re-plans and extensions, dubious work assignments, scope creep or unmanageable, frequently changing scope, budget overrun, unclear deadlines and unusable new products or delivered features.
The high levels of the WBS typically show the major deliverable working areas of the project, divided into logical groupings of work. The content of this level can be different, depending on the type of project undertaken or the industry involved (Mathis, 2009). The lower WBS level provides important details and focus for support of project management processes. These may include but are not limited to schedule development, cost estimating, resource allocation, and risk assessment. The last and lowest-level WBS components are referred to as Work Packages and contain the definitions of work to be undertaken and tracked. They can be used later as input to the scheduling process to strengthen the elaboration of tasks, activities, resources and milestones which require cost estimation, monitoring, and controlling.
A key characteristic of the WBS is that it is deliverable orientated (Pritchard, 1998). This means that it can align or position with respect to any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase or project. Another important attribute of the WBS is that it gives a hierarchical and chronological decomposition of the work in the project. This means that it gives the project scope and project deliverables in smaller and more manageable components (Kerzner, 1997).
The specific number of levels given and defined for a particular project, need to be relevant for effectively managing the work in question. The Haugan100% Rule (Haugan, 2002) qualifies as an important principle that guides the development, decomposition and evaluation of the WBS. This rule addresses itself to the fact that the WBS includes 100% of the work defined by the project scope and, as such, contains all deliverables both internal and external…………………
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