University Project Management Report: Caffeine Bean Café Shop Analysis

This project management report analyzes the key aspects of opening a Caffeine Bean Café Shop. It begins with resource allocation, presenting figures and discussing allocation strategies. The report then delves into cost allocation, comparing the original budgeted cost with the actual budgeted cost, highlighting variances, and proposing a contingency budget. Resource management is also explored, including the results of resource assignments, development of a plan for managing the project team, and the organizational structure selected (balanced matrix). The project utilizes a bottom-up estimation method for cost analysis and includes a detailed comparison of original and actual costs, along with variance analysis. The report concludes with a discussion on project team management and conflict resolution strategies.

Running head: PROJECT MANAGEMENT
Project management: Caffeine Bean Café Shop
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Allocation of resources................................................................................................................2
2. Allocation of cost.........................................................................................................................3
3. Reviewing resource allocation.....................................................................................................4
4. Project budget..............................................................................................................................4
4.1 Approach for estimating project cost.....................................................................................4
4.2 Table reflecting original budgeted cost as well as actual budgeted cost...............................5
4.3 Comparison of budget for reflecting variances.....................................................................5
4.4 Budget contingency plan.......................................................................................................6
5. Resource management.................................................................................................................6
5.1 Results of resource assignments............................................................................................6
5.2 Development of plan for managing project team..................................................................7
5.3 Structure that is selected for the project................................................................................8
References........................................................................................................................................9

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1. Allocation of resources
Figure 1: Resource allocation
(Source: Created by Author)

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2. Allocation of cost
Figure 2: Cost allocation
(Source: Created by Author)

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3. Reviewing resource allocation
The figure which is provided below helps in showcasing that the resources that are
assigned in the project are not overallocated.
Figure 3: Resource allocation
(Source: Created by Author)
4. Project budget
4.1 Approach for estimating project cost
It is found that bottom up estimation method will be utilized for estimating the total cost
of the project. According to Tsamandouras, Rostami‐Hodjegan and Aarons (2015), bottom-up
estimation is one of the ways with the help of which an approximate value for smaller
components of the project can be identified which further helps in estimating the overall cost that
is required for accomplishing the project. This method of cost estimation is mainly selected for
Caffeine Bean Café Shop as with the help of bottom up estimation, the project managers can be

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able to get proper ability of refining the estimates of smaller components (Kapoor & Gupta,
2016). In addition to this, this technique is considered to be beneficial as it helps in providing
much more accurate estimate as it generally calls upon different expertise as well as knowledge
of the people so that they can work effectively for estimating the cost of the project.
4.2 Table reflecting original budgeted cost as well as actual budgeted cost
The table that is provided below compares between original cost that is estimated in the
charter with the actual budgeted cost for opening Caffeine Bean Café Shop.
Criteria Original cost from charter Actual budgeted cost
Estimated Labour $10,000 $25,096
Estimated Materials $5,000 $25,000
Estimated Contractors $15,000 $10,000
Estimated Equipment and
Facilities
$20,000 $35,000
Estimated Travel $0 $0
Total cost $50,000 $86,096
4.3 Comparison of budget for reflecting variances
The table that is provided below showcase the variances that occur from the original cost
to the actual budgeted cost of the project.
Criteria Original cost from
charter
Actual budgeted cost Variances
Estimated Labour $10,000 $26,096 $16,096
Estimated Materials $5,000 $25,000 $20,000

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Estimated Contractors $15,000 $10,000 $-5000
Estimated Equipment
and Facilities
$20,000 $25,000 $5,000
Estimated Travel $0 $0
Total cost $50,000 $86,096 $36,096
4.4 Budget contingency plan
A contingency budget is the money that is mainly set aside for covering the unexpected
cost that occur during the construction procedure. This amount of money in the project “Caffeine
Bean Café Shop” is put on reserve and it is not allocated to one of the areas of the work and it is
analyzed as insurance against other types of cost. It is found that around $14,000 is kept aside so
that the project progress does not get obstructed if any expected occurrences take place.
5. Resource management
5.1 Results of resource assignments
Resource assignment is defined as one of the procedures that helps in creating much
more efficient route both from the resource point of view as well as total mileage. The resource
assignment will generally be achieved with the help of proper collaborative effort of the project
team members (Albrecht et al., 2015). It is found that each of the project team members was
generally held quite accountable for the tasks that are assigned by checking in for making sure
that there are opportunities for sharing progress within the team.
Yes, it is reflected from the MS project file that enough resources are allocated in the
project and with the help of the allocated resources, the entire project will get completed on time.

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No, the resources that are assigned in the project are not overallocated as proper number
off resources are present for completing the project.
It is found that if any type of resource overallocation related issues or challenges occur
then most important way with which resource overload issue can be avoided is by properly
setting up the project schedule that is quite realistic (Jennings & Stadler, 2015). In addition to
this, it is necessary to avoid pushing employees with the help of unreasonable schedule of the
project. Each of the project resource must be assigned work as per their work capacity and
moreover proper number of resources must be hired for resolving the problem of resource over-
allocation.
5.2 Development of plan for managing project team
It is found that proper project management techniques as well as methodologies are quite
important for ensuring clarity as well as helpful in establishing the project effectively. The
project team can be managed effectively by properly establishing a balanced team and by
successfully ensuring proper line management support from the project (Lockwood, 2015). In
addition to this, establishment of team code helps in determining the behaviours of the project
team that is quite beneficial for successful team management.
Motivation is considered as one of the intrinsic as well as extrinsic part of team building.
In order to motivate the project team, it is necessary to have a clear goal setting for avoiding
misunderstandings. In addition to this, defining, developing as well as communicating the vision
is considered important for inspiring other towards work. Moreover, appreciation and value help
in reflecting respect and admiration towards the work that is undertaken.

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The conflict that is present in the workplace can be avoided by properly clarifying the
disagreement and by successfully establishing proper common goal for both the parties of the
project. In addition to this, it is necessary to discuss various types of ways with the help of which
the common goal can be achieved. Moreover, the barriers associated with the goals are also
required to be elaborated for avoiding conflict in the project (Weldon & Jehn, 2018).
5.3 Structure that is selected for the project
It is found that balance matrix organization is mainly selected for the opening of Caffeine
Bean Café Shop project. This matrix is mainly selected as proper and reasonable authority is
provided to the project manager who will take the responsibility of handling the project from
initiation to the closeout phase (Anh et al., 2016). In addition to this, power is enjoyed by both
the functional manager as well as the project manager in a similar way.

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References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee
engagement, human resource management practices and competitive advantage. Journal
of Organizational Effectiveness: People and Performance.
Anh, P. N. Q., Fan, R., & Wen, Y. (2016, June). Balanced hashing and efficient gpu sparse
general matrix-matrix multiplication. In Proceedings of the 2016 International
Conference on Supercomputing (pp. 1-12).
Jennings, B., & Stadler, R. (2015). Resource management in clouds: Survey and research
challenges. Journal of Network and Systems Management, 23(3), 567-619.
Kapoor, D., & Gupta, R. K. (2016). Software cost estimation techniques–a review of
literature. International Journal of Research and Development in Applied Science and
Engineering, 9.
Lockwood, J. (2015). Virtual team management: what is causing communication
breakdown?. Language and Intercultural Communication, 15(1), 125-140.
Tsamandouras, N., Rostami‐Hodjegan, A., & Aarons, L. (2015). Combining the ‘bottom up’and
‘top down’approaches in pharmacokinetic modelling: fitting PBPK models to observed
clinical data. British journal of clinical pharmacology, 79(1), 48-55.
Weldon, E., & Jehn, K. A. (2018). Conflict management in US-Chinese joint ventures: An
analytical framework. In Management Issues in China: Volume 2 (pp. 89-105).
Routledge.