Project Management: Royale Pizza Shop Renovation

This document discusses the project schedule, budget, risk identification, and risk response strategies for the renovation of Royale Pizza Shop.

Running head: PROJECT MANAGEMENT
Royale Pizza Shop Renovation
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Project schedule.....................................................................................................................2
1.1 Preparation of a schedule.................................................................................................2
1.2 Discussion about the methods, tools and techniques.......................................................5
1.3 Critical path of the project................................................................................................6
1.4 Tools and techniques used...............................................................................................7
2. Project budget.........................................................................................................................7
2.1 Proper budget for the project............................................................................................7
2.2 Assumptions that are made in preparing budget............................................................10
2.3 Actions taken in controlling budget...............................................................................11
3. Risk identification................................................................................................................11
3.1 Identification of risk management techniques and tools................................................11
3.2 Risk response strategies for keeping risks on track.......................................................12
Bibliography.............................................................................................................................15

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PROJECT MANAGEMENT
1. Project schedule
1.1 Preparation of a schedule
The schedule that is developed for undertaking the renovation works reflects that
around 6 months of time is needed for successful completion of the project. The below
showcases the starting and ending date for each of the activity of the project.
WBS Task Name Duration Start Finish Predecessors Resource Names
0
Renovation of
Royale Pizza
shop
6 mons
Fri 01-
03-19
Thu 15-08-
19
1
Project
designing phase
1 mon
Fri 01-
03-19
Thu 28-03-
19
1.1
Determining
the requirements
of business
8 days
Fri 01-
03-19
Tue 12-03-
19
Project management
consultant
1.2
Developing
blueprint for
construction
11 days
Wed 13-
03-19
Wed 27-03-
19
2 Architect designer
1.3
Getting
approval for
construction
1 day
Thu 28-
03-19
Thu 28-03-
19
3 Project sponsor
1.4
Milestone 1:
Project design
complete
0 days
Thu 28-
03-19
Thu 28-03-
19
4

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PROJECT MANAGEMENT
2
Project
procurement &
delivery phase
2 mons
Fri 29-
03-19
Thu 23-05-
19
2.1
Recognizing
different needs
and requirements
of the project
8 days
Fri 29-
03-19
Tue 09-04-
19
5
Project contractor,
Procurement manager
2.2
Suppliers of
the project are
identified
5 days
Wed 10-
04-19
Tue 16-04-
19
7
Procurement
manager, Additional
cost[1]
2.3
Proper
understanding
and knowledge
about price terms
10 days
Wed 17-
04-19
Tue 30-04-
19
8 Project sponsor
2.4
Purchase of
different types of
materials
12 days
Wed 01-
05-19
Thu 16-05-
19
9
Procurement
manager, Equipment
supply[1]
2.5
Getting
inspection as
well as receipt
5 days
Fri 17-
05-19
Thu 23-05-
19
10
Construction
manager, Shop
supervisor
2.6 Milestone 2:
Project
procurement &
delivery phase
0 days Thu 23-
05-19
Thu 23-05-
19
11

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PROJECT MANAGEMENT
completion
3
Project
construction
phase
1 mon
Fri 24-
05-19
Thu 20-06-
19
3.1
Completion
of flooring work
8 days
Fri 24-
05-19
Tue 04-06-
19
12
Construction
manager, Project
contractor, Project
manager
3.2
Enhancing
the capacity of
the compressor
4 days
Wed 05-
06-19
Mon 10-06-
19
14
Installer,
Construction manager
3.3
Undertaking
cleaning for the
kitchen area
5 days
Tue 11-
06-19
Mon 17-06-
19
15
Cleaner, Construction
manager
3.4
Buying the
required
resources and
materials
3 days
Tue 18-
06-19
Thu 20-06-
19
16
Project contractor,
Project manager
3.5
Milestone 3:
Project
construction
phase completion
0 days
Thu 20-
06-19
Thu 20-06-
19
17

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PROJECT MANAGEMENT
4
Painting and
Installation
work
2 mons
Fri 21-
06-19
Thu 15-08-
19
4.1
Installing the
air conditioners
17 days
Fri 21-
06-19
Mon 15-07-
19
17
Technical manager,
Installer ,Technical
and safety
compliance
certification bodies
4.2
Completing
the dust free
painting
23 days
Tue 16-
07-19
Thu 15-08-
19
20 Installer
4.3
Milestone 4:
Completion of
Painting and
installation work
of the project
0 days
Thu 15-
08-19
Thu 15-08-
19
21
1.2 Discussion about the methods, tools and techniques
It is found that there are a number of methods, tools as well as techniques that are
mainly used in order to prepare the project schedule. It is analyzed that scheduling tool is
mainly utilized in order to prepare the schedule (Manole and Avramescu 2017). The project
scheduling tools helps in highlighting all the information related with the project at once
including the project date, duration, time as well as resources and also help in tracking the
progress of the project. In addition to this, the cost that is associated with the project is
mainly identified with the help of the project schedule and the scheduling tool further helps in
reducing complications that are mainly associated with the project. On the other hand, it is

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PROJECT MANAGEMENT
identified that critical path method can also be utilized for developing the project schedule
however critical path method is not used. It is analyzed that there are a number of benefits of
utilizing critical path method over the scheduling tool (Kerzner and Kerzner 2017). With the
help of the critical path method, the tasks that are needed to be executed are generally
prioritized. This is beneficial for the managers as the project team can be able to get idea
about the project plan effectively. In addition to this, it is analyzed that with the help of CPM
methods, the tasks and project activities are broken down into smaller activities for successful
project execution.
1.3 Critical path of the project
Figure 1: Critical path
(Source: Created by Author)

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PROJECT MANAGEMENT
1.4 Tools and techniques used
The various tools and techniques that are needed to be used for reflecting the critical
path are generally reflected below:
Gantt chart: The Gantt chart can be used in order to reflect the critical path for the
project. It is considered as one of the easiest way of scheduling tasks as well as tracking the
progress of the project quite effectively (Hornstein 2015).
Network diagram: Network diagram can also be used n order to showcase the
critical path of the project. The Network diagram helps in graphically representing the
network diagram for the project.
2. Project budget
2.1 Proper budget for the project
The budget plan that is prepared for the project generally helps in reflecting that the
renovation work will get completed within $40,000. The table below generally showcases the
budget that is required for the completion of each of the activities of the project.
WBS Task Name Duration Predecessors Resource Names Cost
0
Renovation of Royale
Pizza shop
6 mons $40,000.00
1
Project designing
phase
1 mon $5,000.00
1.1
Determining the
requirements of
business
8 days
Project management
consultant
$2,000.00
1.2 Developing 11 days 2 Architect designer $3,000.00

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PROJECT MANAGEMENT
blueprint for
construction
1.3
Getting approval
for construction
1 day 3 Project sponsor $0.00
1.4
Milestone 1:
Project design
complete
0 days 4 $0.00
2
Project
procurement &
delivery phase
2 mons $18,000.00
2.1
Recognizing
different needs and
requirements of the
project
8 days 5
Project contractor,
Procurement manager
$5,000.00
2.2
Suppliers of the
project are identified
5 days 7
Procurement
manager, Additional
cost[1]
$3,000.00
2.3
Proper
understanding and
knowledge about price
terms
10 days 8 Project sponsor $0.00
2.4
Purchase of
different types of
materials
12 days 9
Procurement
manager, Equipment
supply[1]
$8,000.00
2.5 Getting inspection 5 days 10 Construction $2,000.00

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PROJECT MANAGEMENT
as well as receipt
manager, Shop
supervisor
2.6
Milestone 2:
Project procurement &
delivery phase
completion
0 days 11 $0.00
3
Project
construction phase
1 mon $7,000.00
3.1
Completion of
flooring work
8 days 12
Construction
manager, Project
contractor, Project
manager
$3,000.00
3.2
Enhancing the
capacity of the
compressor
4 days 14
Installer,
Construction manager
$2,000.00
3.3
Undertaking
cleaning for the
kitchen area
5 days 15
Cleaner, Construction
manager
$1,000.00
3.4
Buying the
required resources and
materials
3 days 16
Project contractor,
Project manager
$1,000.00
3.5
Milestone 3:
Project construction
phase completion
0 days 17 $0.00

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PROJECT MANAGEMENT
4
Painting and
Installation work
2 mons $10,000.00
4.1
Installing the air
conditioners
17 days 17
Technical manager,
Installer, Technical
and safety
compliance
certification bodies
$6,000.00
4.2
Completing the
dust free painting
23 days 20 Installer $4,000.00
4.3
Milestone 4:
Completion of
Painting and
installation work of the
project
0 days 21 $0.00
2.2 Assumptions that are made in preparing budget
The different types of assumptions which the project manager generally makes in
order to develop the budget plan are generally elaborated below:
 The money that is required for buying the air conditioner will be given by the project
owner instead of the contractor and thus the contractor does not need to spend money
on the air conditioner.
 It is assumed that work that is associated with project renovation must get completed
within $40,000 without causing any type of financial issues and challenges in the
project.

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PROJECT MANAGEMENT
2.3 Actions taken in controlling budget
The actions which are generally undertaken in order to control the budget of the
project are generally elaborated below:
Keeping track on the project budget: The budget expenditure can be controlled by
keeping track on the budget of the project so that any variance within the project can be
controlled quite successfully (Serrador and Turner 2015).
Proper resource management: Proper management of resources are generally
required for managing the resources effectively so that no extra expenditure will be done if
any shortfall occurs due to unavailability of resources. This not only helps in managing
resources but also assist in controlling budget.
3. Risk identification
3.1 Identification of risk management techniques and tools
The various types of tools as well as techniques which are mainly utilized in order to
manage the risks that are related with the construction work are generally reflected below:
Determination of risk: Porter’s five forces are considered as one of the systematic
tools that are general helpful in determining the risks that are associated with the project.
With the help of ort’s five force analysis, the risks that are associated finance, schedule as
well as management can be identified effectively.
Evaluation of the effect: It is quite important to utilize situational analysis in order to
evaluate the potential effects that are associated with the project risks (Kerzner and Kerzner
2017). With the identified risk, it is quite necessary to determine the consequence as well as
likelihood of the project that further helps in reflecting the rank of the risks that further helps
in proper risk management.

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PROJECT MANAGEMENT
Mitigation and management: It is analyzed that SWOT analysis can be utilized in
order to mitigate as well as manage them effectively. It generally includes listing of the
weakness, strengths, opportunities as well as threats of the project that further helps in
eliminating the risks that are related with the project (Hornstein 2015).
3.2 Risk response strategies for keeping risks on track
The various risk responses that are mainly used in order to keep the project on track
are mainly reflected in the table that is provided below:
Risk
ID
Risk Statement Probabilit
y
Impact Score Response
plan/Strategy
1. Budget shortfall High High 2 In order to manage
the budget shortfall, it
is quite necessary to
keep track on the
project expenditure
from the initial stage
of the project.
2. Delay in the project High High 1 It is found that
tracking of project
schedule effectively
generally resolves the
issues that are mainly
associated with the
project quite
effectively.
3. Inappropriate Medium High 3 It is necessary to

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PROJECT MANAGEMENT
management utilize proper
management
strategies in order to
manage the work of
the project quite
effectively for
avoiding issues that
causes due to
inappropriate
management.
4. Inexperienced team
members
Medium Medium 4 In order to avoid
issues related with
inexperienced team
members, it is quite
necessary to hire
skilled as well as
experienced project
team members for
managing the work of
the project.

14
PROJECT MANAGEMENT
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PROJECT MANAGEMENT
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