Sraymax Project: Management Cycle, Appraisal, Resources & Plan

This report provides a detailed analysis of a building construction project undertaken by Sraymax-London Builder Ltd., focusing on the refurbishment of an ancient industrial location within a six-month timeframe. The report covers the project management cycle plan, including initiation, planning, execution, monitoring, controlling, and closing phases. It assesses the project's viability using investment appraisal techniques like NPV and IRR, defines resource management, and outlines the principles for efficient resource utilization. Furthermore, the report identifies the organizational structure, roles, and responsibilities of project participants, describes techniques for controlling and coordinating the project, assesses project leadership requirements, and plans human resource needs. It includes a detailed project plan covering costs, scope, quality, time, human resources, communication, risk management, and stakeholder analysis, and it explains the application of scheduling, estimation, and cost control techniques to minimize time and costs. Finally, the report analyzes project performance using performance indicators and discusses change control procedures for project evaluation at completion.

Project Management
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Table of Contents
Introduction...........................................................................................................................................4
Task 1....................................................................................................................................................5
a) Prepare a brief Project Management Cycle plan, to cover the aspects of Initiation, planning,
execution, monitoring & controlling and closing of the project (construction of the building. (1.1)
..........................................................................................................................................................5
b) As an associate, you are required to develop the success and failure criteria for the proposed
project and appraise its viability by using relevant investment appraisal techniques e.g. NPV and
IRR considering the following future cash flows: (1.2). Consider the interest rate to be 5%..........7
c) Define Resources Management and what categories of resources are required for the
construction of the building. Explain the principles behind setting up the systems and procedures
for efficient resource management. (1.3)..........................................................................................9
d) Explain the key stages involved in the process of closing down the project and conducting post
post-project appraisals. (1.4)...........................................................................................................11
Task 2..................................................................................................................................................13
a) Identify the most appropriate organisational structure, roles and responsibilities of participants
within the project. (2.1)...................................................................................................................13
b) Using the project highlighted in the scenario, describe the techniques that can be used in
controlling and coordinating a project. (2.2)..................................................................................15
c) Using the project highlighted in the scenario, assess project leadership requirements and
qualities including the role of the project manager and qualities expected of him. (2.3)...............17
d) Plan and specify human resources and requirements for the project given in the scenario. (2.4)
........................................................................................................................................................19
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TASK 3...............................................................................................................................................21
a) Prepare a detailed project plan which covers the aspects of costs, scope, quality, time, human
resources requirements, communication, risk management and stakeholder’s analysis (interests
and priorities). (3.1)........................................................................................................................21
b) Explain how Scheduling, Estimation and Cost control techniques are applied in projects and
apply the appropriate project scheduling tools to plan the project activities so as to minimise the
time and costs of the project. (3.2)..................................................................................................23
c) Analyse the performance of the project assessing performance indicators and choose the
methods that are more appropriate to measure project performance by discussing their advantages
and disadvantages. (3.3)..................................................................................................................26
d) Explain the change control procedure for evaluating your project at its completion. (3.4).......28
Conclusion..........................................................................................................................................30
References...........................................................................................................................................31
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Introduction
The report has been prepared to discuss in detail the project assigned by the London School of
Science and Technology to the Sraymax-London Builder Ltd. Sarymax Ltd. is to refurbish an
ancient industrial location. The company is to refurbish the building within six months of time
duration. The company has provided within the contract a time period of five years as maintenance.
The total cost that is estimated in the process of this project is estimated to be £1,500,000. The
project will describe and discuss in detail the project plan cycle for the project. The report will focus
on the descriptions of the human resource requirements, the discussion over the end results of the
project. The report will present with a detailed explanation of various aspects of the project such as
human resource management, role and responsibilities of the project manager etc. The report will
depict an understanding of the project organisation structure and project performance evaluation.
The report will apply the techniques of Gantt chart, Pert, and Histogram to further amplify and
describe the scope, time, human resource requirements, and the cost control techniques for the
project.
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Task 1
a) Prepare a brief Project Management Cycle plan, to cover the aspects of Initiation, planning,
execution, monitoring & controlling and closing of the project (construction of the building.
(1.1)
Project Management Cycle Plan is comprehended and data-based plan which is adopted by the
organisation to execute the construction of the new building. The cycle consists of various stages
such as initiation, planning, execution, monitoring, controlling and closing of the project. All these
stages occur in the process of a project. For Sraymax to construct the new building the following
project management cycle plan has been adopted.
(Figure 1: Project Management Cycle Plan)
(Source: Kerzner and Saladis, 2017).
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The Initiation Phase the committee is required to gather the case of the project. The committee
fetches the details about the project and then does a study over the project in order to execute the
project. The next step is to establish a project charter to define and estimate the various activities
and stages to be incorporated into the project cycle (Melchers and Beck, 2017).
The Project Planning Phase at this stage of the project the committee is to plan out the execution
of the project. The resource body identifies the needs and requirements of the project to accumulate
enough data and resources to accomplish the project. In this stage, various plans such as finance
plan, human resource plan, quality plan, risk plan, acceptance plan, communication plan, estimate
plan etc. are built and information necessary is gathered.
The Execution and Monitoring Phase in the execution phase of the project management cycle
plan it is to be considered the monitoring and controlling activities are executed. The committee
identifies the deliverables and the expected outcomes. Next is to prepare and formulate the time
management to access the duration of time that is to be required to complete the project (Kerzner
and Saladis., 2017). The cost management is to be accessed to determine the costs that will be
incurred in the project to furnish the results. The committee is then to forecast and prepare the risk,
procurement and change plans to effectively progress the construction work.
The Closing and Controlling Phase is the last phase of the project management plan cycle. In this
stage, the controlling and closing activities of the project are carried out. The committee is required
to furnish the last detailing of the project and hand over the property to the client. Project closure is
performed wherein all the last activities are executed. The project is completed and is checked if the
results that are achieved are in accordance with the desired outcomes and results.
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b) As an associate, you are required to develop the success and failure criteria for the
proposed project and appraise its viability by using relevant investment appraisal techniques
e.g. NPV and IRR considering the following future cash flows: (1.2). Consider the interest rate
to be 5%
It can be stated that if the Total of PV of cash flow is less than the initial outlay then the project is
not viable. It can also be said that proposed project is not appropriate and profitable for the company
if the PV of cash flow is less than an expenditure made.
Since the PV of Cash flow (£1993.63) is greater than Initial outlay (£1500) the project is viable and
profitable for the company.
IRR is also useful for the determination of the viability of the project.
It can be stated that @ 19.86 the PV of the cash flow will be equal to the initial outlay.
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Using Interpolation,
IRR= R1+ NPV1 *(R2-R1)
NPV1-NPV2
= 5+ 493.63 *(20-5)
493.63-(-4.43)
= 19.86 %
The project must be accepted because the IRR is higher and there is a positive NPV of the cash
flows. The higher a project’s IRR the more profitable is for the company.
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c) Define Resources Management and what categories of resources are required for the
construction of the building. Explain the principles behind setting up the systems and
procedures for efficient resource management. (1.3)
According to Chelladurai and Kerwin (2017), Resource management is the management of the
resources. These resources include the human resources, the financial resources, inventory
resources, production resources and the information technology resources. Resource management
includes the activities that are related to the procurement of these resources, the determination of the
volumes of these resources, the deployment of the resources to the necessary processes etc.
Resource management is an essential part of the project management cycle plan (Chelladurai and
Kerwin, 2017).
There are various categories of resources that are required to be managed for the construction of the
building. Sraymax Company is required to manage the financial resource. It will include identifying
and gathering the required finances to execute the plan. The information technology resources will
be managed to procure the required sets of information technology which will be applied to furnish
the last product. The human resources management will be required to access the needs of the
human resources. The number of skilled and unskilled labour that will be required for the project is
determined. The production resources are to be managed to accumulate the required production
resources and to start with the production of the project that is the construction of the building.
The principles required for setting up the systems and procedures for efficient resource management
includes the following.
 Resources are people- The main resource available to the organization is the human
resources. All the resource management planning and execution include the graphs, charts,
tables etc. (Dalkir and Beaulieu, 2017). The most important resource is whereas the human
resources. The human nature and elements in the organisation will help it to the way of
success and prosperity.
 Visibility- To foresee what the actions are being undertaken to achieve the desired goals is
the key to success of the resource management. A balance must be set between what is
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motivating the employees and what they have to achieve is essential. The ability to forecast
the unseen and to be prepared is required for a successful resource management plan.
 Collaborate and succeed- Collaboration is the art of the success. A more coordinated and
well at terms teams and resources are more viable to seek their goals and objectives. The
collaboration of the different functions and processes will help to identify and determine the
resources that are required. This proper planning of the required resources will help to
procure the needed in time.

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d) Explain the key stages involved in the process of closing down the project and conducting
post post-project appraisals. (1.4)
The stages that are involved in the closing of the project are as follows.
 The initial is to develop a closing procedure. A pre-determined closing procedure will help
to acquire the required details and resources in order to accomplish the project.
 Completing the contract closures is required. Contract closures are required to close the last
working deals and details.
 Gaining the formal acceptance from the key stakeholders. The acceptance must be acquired
in order to approve of the contract and the final results of the project.
 Submission of the final reports is the next stage in the closure of the project. The final
reports are in relation to the finances and the stock in hand. This must be prepared and
submitted in time (Nicholas and Steyn., 2017).
 Conducting the phase end review at all the stages. After the completion of all the stages, the
review must be undertaken. A proper review will help to determine what is to be done next
and with the application of what resources and processes.
 To accumulate and prepare all the required documents and sheets. The documents and data
will form the part of the research papers, the documentary and the for the purpose of
controlling and correcting the project.
 The last stage is to handling off the completed project to the key stakeholders or to the
consumer. This stage is the final stage. It also involves handling over the leftover resources
to the associated managers and the functions.
To conduct a post post-project appraisal a checklist is to be prepared and determined. A post post-
project appraisal is a process in which the final appraisal of the project is carried out. This final
appraisal is carried out in the form of comparing the results which are derived and the results which
were to be achieved. The comparison may be done in the form of financial and economic, statistics
and cost turnover (Oakland and Marosszeky, 2017). The most important comparison is the decision
analysis. It includes analysing the decisions that are taken due to the changes in the situations and
circumstances. A post post-project appraisal contains basically of four stages.
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 The first stage is to gather the information which is required to perform the post post-project
appraisal.
 The second stage is to determine the comparisons and analysis of the gathered details and
information.
 The third stage is to draw the conclusions and findings of the project appraisal.
 The last stage is to compare the desired result and the results that are achieved in order to
monitor the appraisal of the project.
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