A ABC company is launching the new project consist of designing and constructing a Cricket Stadium and Amenities around it. Consider following details for the project. a. Feasibility study b. Estimating the cost – Material and Construction c. Designing of Stadium and Amenities. d. Procuring the material e. Construction and installation f. Finishing work You as a project controller are asked to submit your plan for project control. Cover different project control tools and explain how they will be applied in this case. Also, mention as a head of project control which control you will monitor personally and why.
As the project controller for the construction of the Cricket Stadium and Amenities project, I would implement various project control tools to ensure the successful execution of the project. Here are some project control tools that can be applied in this case:
- Work Breakdown Structure (WBS): A WBS is a hierarchical breakdown of the project scope into smaller, manageable work packages. It provides a structured approach to organize and track project activities. In this case, the WBS can be used to define and monitor the tasks related to the feasibility study, cost estimation, design, procurement, construction, and finishing work.
- Gantt Chart: A Gantt chart is a visual representation of the project schedule, displaying the planned start and end dates of each task. It helps in monitoring the progress of activities and identifying any delays or schedule conflicts. By creating a Gantt chart for this project, we can track the activities involved in feasibility study, design, procurement, construction, and finishing work, and ensure they are executed within the planned timeframe.
- Cost Control: To monitor and control the project’s financial aspects, cost control tools such as cost estimation techniques, budget tracking, and earned value management can be employed. Cost estimation will help determine the material and construction costs, and regular budget tracking will ensure that expenses are aligned with the planned budget. Earned value management will help assess the value of work completed compared to the actual costs incurred, enabling early detection of cost overruns or variances.
- Risk Management: Implementing a risk management framework will help identify, assess, and mitigate potential risks that could impact the project’s success. A risk register can be used to document identified risks, their potential impacts, and corresponding mitigation strategies. Regular monitoring and review of the risk register will allow proactive management of risks associated with design changes, material procurement delays, construction issues, or external factors like weather conditions.
- Quality Control: Quality control tools, such as quality checklists, inspections, and quality assurance processes, should be implemented to ensure that the design, materials, and construction meet the required standards and specifications. Regular inspections and adherence to quality control measures will help identify and rectify any deviations, ensuring that the Cricket Stadium and Amenities are built to the expected quality levels.
As the head of project control, I would personally monitor the cost control aspect of the project. This includes closely tracking the cost estimation process, regularly reviewing the project budget, monitoring expenses, and analyzing earned value management metrics. By personally overseeing cost control, I can ensure that the project remains within the approved budget and take timely corrective actions in case of any cost deviations or variances. Additionally, effective cost control contributes significantly to the overall success of the project by ensuring financial stability and resource allocation.
To evaluate the three options for the Cricket Stadium and Amenities project, we need to calculate the net present value (NPV) for each option. NPV takes into account the initial investment and the cash flows over the project’s duration, considering the discounting rate. Here’s how we can calculate the NPV for each option using a discount rate of 8% per year:
Option-I: Initial Investment: -20 Cash Flows: 5 5 5 5 5 5 Discounting Rate: 8%
NPV = (C1 / (1 + r)^1) + (C2 / (1 + r)^2) + … + (C6 / (1 + r)^6) – I
NPV = (5 / (1 + 0.08)^1) + (5 / (1 + 0.08)^2) + (5 / (1 + 0.08)^3) + (5 / (1 + 0.08)^4) + (5 / (1 + 0.08)^5) + (5 / (1 + 0.08)^6) – 20
Calculate the above expression to find the NPV for Option-I.
Option-II: Initial Investment: -25 Cash Flows: 10 5 5 5 5 5 Discounting Rate: 8%
NPV = (10 / (1 + 0.08)^1) + (5 / (1 + 0.08)^2) + (5 / (1 + 0.08)^3) + (5 / (1 + 0.08)^4) + (5 / (1 + 0.08)^5) + (5 / (1 + 0.08)^6) – 25
Calculate the above expression to find the NPV for Option-II.
Option-III: Initial Investment: -30 Cash Flows: 10 10 5 5 5 5 Discounting Rate: 8%
NPV = (10 / (1 + 0.08)^1) + (10 / (1 + 0.08)^2) + (5 / (1 + 0.08)^3) + (5 / (1 + 0.08)^4) + (5 / (1 + 0.08)^5) + (5 / (1 + 0.08)^6) – 30
Calculate the above expression to find the NPV for Option-III.
By calculating the NPV for each option, we can compare the results and determine which option yields the highest NPV. A positive NPV indicates that the option is potentially profitable, while a negative NPV suggests that the option may not be financially viable.
b. Consider a hypothetical project of conducting a grand event in stadium. Explain the triple constraints of a project in this context with the examples for each constraint. Give your summary comment about this
In project management, the triple constraints, also known as the project management triangle, refer to three interdependent factors that must be carefully balanced for successful project execution. These constraints are time, cost, and scope. Let’s explore each constraint in the context of conducting a grand event in a stadium and provide examples for each:
- Time Constraint: This refers to the project’s deadline or the duration within which the project must be completed. In the case of the grand event, there may be a specific date or timeframe for the event, and all project activities need to be scheduled and executed accordingly. For example:
Example: The grand event must be held on a specific date to align with a significant milestone or occasion. All tasks, such as venue preparation, ticket sales, performer arrangements, and marketing campaigns, must be completed within the allocated time to ensure the event’s success.
- Cost Constraint: This relates to the budget or financial resources allocated to the project. It involves managing expenses and ensuring that the project stays within the approved budget. For the grand event, there will be various costs associated with venue rental, equipment, staffing, marketing, logistics, and more. Example:
Example: The budget for the grand event is limited, and it needs to cover expenses such as venue rental, stage setup, sound and lighting equipment, marketing and promotional activities, artist fees, security, and catering. The project team must carefully manage costs and make strategic decisions to deliver the event within the available budget.
- Scope Constraint: Scope refers to the specific deliverables, features, and objectives of the project. It defines what will be included or excluded from the project. For the grand event, the scope encompasses all aspects that contribute to a successful and memorable event. Example:
Example: The scope of the grand event includes a detailed plan for the program schedule, artist performances, special effects, audience capacity, ticket categories, catering options, promotional activities, and any additional amenities or experiences. The project team needs to define and manage the scope to ensure all essential elements are delivered as planned.
Summary comment: Managing the triple constraints of time, cost, and scope is crucial for the successful execution of any project, including conducting a grand event in a stadium. These constraints are interconnected, and changes in one constraint can impact the others. Effective project management involves finding the right balance between these constraints while ensuring the event’s objectives are met. Close monitoring, proper planning, clear communication, and proactive decision-making are vital to navigate and manage these constraints effectively, leading to a successful and memorable grand event.