Project Management: Assignment 1

This document discusses the consultation process, resource requirements, project income statement, cash flow forecast, key performance indicators, project monitoring, risk areas and contingency plan, systems outline, communication strategy for relevant stakeholders, and communication strategy to engage work teams in the context of project management.

Running Head: PROJECT MANAGEMENT
Project Management: Assignment 1
Name of the Student
Name of the University

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Part A
1. Consultation Process
Bounce Fitness is willing to initiate the pilot project that will include attracting the senior
citizens to join the fitness training classes. Due to the nature of the project, there will be
requirements for consultations with various personnel throughout the project. Consultation with
various personnel is also necessary for executing the main operational plan. This is mainly
because consultation with specific personnel allows the input of expertise and experience into the
project that enhance the overall quality of the project (Boulmetis & Dutwin, 2014). However, it
is to be noted that consultation also needs to follow a specific process for engaging the relevant
personnel. For example, consultation with higher authority personnel including project manager
or external consultant, prior appointment is required. The consultation process will also include
submission of a progress report that will be verified. On the other hand, consultation with project
team members and colleagues can be done through face to face meetings and will not require any
specific documentation.
2. Resource Requirements
The resource requirements of the project include physical resources, financial resources
and human resources. These resources are listed under the following sub-headers.
i. Physical Resources
The physical resources for the project will include training equipments specifically
designed and developed for the senior people. The main focus of using these instruments is to
provide fitness training to the senior people and not for the purpose of body building.

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Furthermore, some testing equipments will be required that will be used for testing health
conditions of the senior people to verify whether they will able to undertake the physical
training.
ii. Financial Resources
Considering the scope and requirements of the project, it can be said that the financial
resources including project budget needs to be specified before the start of the project. Required
financial resources include funding for purchasing fitness training requirements, marketing costs,
trainer hiring costs and wages and others.
iii. Human Resources
Several human resources are required to take part in the project and are allocated with
specific duties that they need to perform. Some of the required human resources include
marketing and promotions manager, trainers, studio manager, suppliers, project coordinator and
others. Each of these human resources has separate duties that they need to fulfill within the
allotted timeline.
3. Project Income Statement
Cost Benefit Analysis for Bounce Fitness
Equipment Installation $ 4,776.00
Infrastructure Development $ 12,000.00
Fixed Costs $ 22,776.00
Total Development Cost $ 39,552.00
Training $ 6,000.00
Variable Costs $ 108,000.00
Total Operational Cost $ 114,000.00
Funding from Health Department $ 150,000.00
Income $ 100,000.00
Total Benefit $ 250,000.00

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Discount Rate Used 10.00%
4. Cash Flow Forecast
Year of Project
0 1 2 3 TOTALS
Economic Benefit $150,000.00
$
100,000.00
$
110,000.00
$
125,000.00
Discount Rate 1.0000 0.9091 0.8264 0.7513
PV of Benefits $150,000.00 $90,909.09 $90,909.09 $93,914.35
NPV of all
BENEFITS $150,000.00
$
240,909.09
$
331,818.18
$
425,732.53
$
425,732.53
One-Time
COSTS $ (39,552.00)
Recurring Costs $0.00
$
(114,000.00)
$
(114,000.00)
$
(114,000.00)
Discount Rate 1.0000 0.9091 0.8264 0.7513
PV of Recurring
Costs $0.00
$
(103,636.36)
$
(94,214.88)
$
(85,649.89)
NPV of all
COSTS $ (39,552.00)
$
(143,188.36)
$
(237,403.24)
$
(323,053.13)
$
(323,053.13)
Overall NPV
$
102,679.40
Overall ROI
0.3178
5. Key Performance Indicators
Key Performance Indicators for this project are specified below.
Objective KPI Timeframe
To attract more senior people to
join the fitness program
Have a group of 30 senior people
(50+ age) attend the training
session everyday
3 Months
To make the business profitable Having optimum number of 3 Months

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participants such that there is a
high cash inflow that is greater
that the expenses
To make the fitness centre ready
for all the proposed purposes
Procurement of all the necessary
equipments including training
equipments, testing equipments
and others is complete along with
installation.
1 Month
6. Project Monitoring
In order to ensure the pilot project goes through with sufficient success, it is important to
monitor the project through its course. Moreover, the project also needs to enroll sufficient
amount of elderly people for the training course and hence, suitable steps are to be taken in the
project. These monitoring requirements for the project will be fulfilled by the following.
Marketing – It is known that although many of the senior people are interested in joining
fitness classes, most of them choose not to do so. Moreover, many of them have medical
conditions like diabetes, abnormal pressure and others that hinder their interests in joining fitness
classes. Hence, it is important to conduct appropriate marketing strategies for attracting more of
these people by showing them the benefits of the fitness classes and also promise them to
conduct tests for determining their medical conditions and design their fitness training regimen
accordingly (Sánchez, 2015). Weekly monitoring needs to be done to ensure these marketing
techniques are appropriately applied and it is effective in bringing in more elderly people.

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Training Set Up – As determined in the initial plan and the requirement set by the
Government, Bounce Fitness needs to develop specific fitness training requirements for the
senior people. For this purpose, specific equipments are to be procured for training them as well
as testing them for medical conditions. Throughout the course of the project, it is to be monitored
whether all the desired instruments and equipments are procured and installed and all the trainers
are proficient with training the senior people using these equipments.
7. Risk Areas and Contingency Plan
Some of the risk areas and contingency plan are developed as shown in the following
table (Haimes, 2015).
Risk Area Chance of Occurrence Impact on Project Contingency Plan
Lack of interest among
the senior people
High High Conduct suitable
marketing techniques
including visiting
individual houses for
handing over leaflets
and describe the
importance of the
fitness program for the
elderly people
Budget overrun due to
high implementation
cost
High High Request government to
provide additional
funding in case the
implementation costs

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are too high
Insufficient members to
carry out the initiative
Low Medium Conduct interview and
hire new members who
will be able to fulfill
their duties in the
project
Political changes may
result in stopping of the
initiative after pilot
project
Medium High Prepare contract based
on the future project that
will be conducted in line
with the pilot project;
internal growth can also
benefit the growth and
further conduction of
the project
8. Systems Outline
In order to ensure the success of the project and provide suitable guidance and monitoring
to the people joining the fitness center, it is important to develop an appropriate systems model
for the operations of the company. As determined earlier, each class should consist of 30 people
who will join a session in the center every morning (Todorović et al., 2015). However, without
the presence of trainers, it will be impossible to provide sufficient training to the people. Hence,
a group of trainers will be assigned who will train the people in smaller groups. These trainers
will also be trained to perform a number of tests that are required to detect any existing medical
conditions among the training participants.

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The performance of the trainers as well as the participants will be monitored at the end of
each month by testing the updated physical and mental conditions of the training participants. If
the feedback and results from these tests are positive, it will indicate the initial success of the
trainers and the fitness studio as a whole.
Part B
9. Communication Strategy for Relevant Stakeholders
The communication strategy for relevant stakeholders should involve minimum two
meeting and presentation sessions – one with the senior management and one with the work
teams. The purpose of communicating with the senior management is to let them know about the
requirements and benefits of the project on the overall growth of the company (Badewi, 2016).
On the other hand, communicating with the work team is required to ensure they have a clear
idea regarding project deliverables and each of their duties needed to fulfill during the project.
10. Communication Strategy to Engage Work Teams
For engaging work teams in the project, it is important that they have clear ideas
regarding their duties and they receive sufficient guidance during the course of the project. It is
recommended that there should be at least one weekly team meeting held by the project manager
and discuss the project including its progress and future (Golini, Kalchschmidt & Landoni,
2015). This is include work team engagement and will also ensure the project is monitored on a
constant basis.

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References
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practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management, 34(4), 761-778.
Boulmetis, J., & Dutwin, P. (2014). The ABCs of evaluation: Timeless techniques for program
and project managers (Vol. 56). John Wiley & Sons.
Chih, Y. Y., & Zwikael, O. (2015). Project benefit management: A conceptual framework of
target benefit formulation. International Journal of Project Management, 33(2), 352-362.
Golini, R., Kalchschmidt, M., & Landoni, P. (2015). Adoption of project management practices:
The impact on international development projects of non-governmental
organizations. International Journal of Project Management, 33(3), 650-663.
Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons.
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Sánchez, M. A. (2015). Integrating sustainability issues into project management. Journal of
Cleaner Production, 96, 319-330.
Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D. (2015).
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