Beachside Cottage Renovation Project: A Comprehensive Analysis

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MNG00785
Project management
Weeks 4 – 10: Assessment 2
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Table of Contents
Part 1..........................................................................................................................................3
WBS.......................................................................................................................................3
RACI Chart............................................................................................................................3
Gantt Chart.............................................................................................................................3
AoN........................................................................................................................................3
Resource overloads................................................................................................................3
Budget....................................................................................................................................4
Progress reporting..................................................................................................................4
Progress reporting (EVM)......................................................................................................4
Risk management...................................................................................................................4
Change management..............................................................................................................4
Stakeholder identification & communication........................................................................5
Project closure........................................................................................................................5
Part 2..........................................................................................................................................6
2.1 Work Breakdown Structure (WBS).................................................................................6
2.2 RACI Chart......................................................................................................................9
2.3 AoN..................................................................................................................................9
2.4 Gantt chart......................................................................................................................10
2.5 Resource overloads........................................................................................................12
2.6 Budget............................................................................................................................13
2.7 Progress reporting (Timelines).......................................................................................14
2.8 Progress reporting (EVM)..............................................................................................16
2.9 Risk Management...........................................................................................................17
2.10 Change management....................................................................................................18
2.11 Stakeholder identification and communication............................................................19
2.12 Project closure..............................................................................................................21
Reference..................................................................................................................................22

Part 1
WBS
The WBS is a standard, accurate & a rational way to divide the project into manageable,
handy parts in order to handle the project scope & to plan, evaluate and supervise it. The
WBS helps to build an optimal plan & determine estimated costs for the work element. WBS
is used for further planning of project by teams to divide the deliverables such that they can
be achieved in smaller parts. It is a framework used for the implementation and monitoring of
a project. It is mandatory that the project scope is defined to create the WBS but for smaller
projects, it can be done simultaneously (pp. 220).
RACI Chart
RACI stands for responsible, accountable, consult & inform which are the roles defined of
the key stakeholders. RACI chart is a form of RAM i.e. Responsibility assignment matrix
which keeps a track of all the assets for each work package which have been assigned for
different responsibilities. The first and second columns of the RACI chart depict the WBS
coding of activities & packages of work and the names of activities & work-packages
corresponding to WBS respectively. RACI charts are very helpful in allocating project team
members to project tasks. They are also beneficial for project communication management
(pp. 297).
Gantt Chart
This is an bar chart that is horizonal in their alignment that us mainly used for the control of
production. It is a tool used for project management activities which enables manages to
efficiently plan and organise tasks in the pre-defined project. A gantt chart’s horizontal axis
represents the complete duration of project while the perpendicular axis shows the sub-tasks
of project. This chart gives an overview of the complete project schedule (pp. 268).
AoN
The term ' activity on node ' relates to a priority diagramming technique using boxes to
indicate planning actions. These different "nodes" connect with each other by arrows in order
to show a dependencies and the logic behind connection of activities. Each node is allocated a
number corresponding to an activity in the project. It define the activity to star after end the
preceding activity. It is also called finish-to-start precedence (pp. 248).
Resource overloads
When a project manager allocates a large number of tasks to a few resources as they were
able to produce better results in the past, it is known as resource overloading. The resources
in this process are overloaded with a number of tasks which may sometimes result in the
failure of work structure as the work does not get distributed evenly even when other
resources are available to get the work done (pp. 300).

Budget
In order to create a cost management plan the foremost step is to create a budget by
determining the project requirements and the costs involved. Budget is easier to be created in
the later stages when the project enters a more detailed planning stage. Risks, resources
required, schedule, communication plan etc. is taken into account to create an effective
budget. A budget can be planned according to the size and the complexity of the project (pp.
345-347).
Progress reporting
Project managers are required to keep a track of the project so that the stakeholders can be
provided with information about what has been done yet. It describes the project activities
that have been carried out and gives information about what is left. Regular reporting for the
scope, schedule and budget needs to be performed by the project manager. It can also contain
information about the key issues, risks, important future dates and other relevant information
(pp. 466).
Progress reporting (EVM)
The value of the work yet completed is given by earned value (EV). It basically shows that
what value will be produced by the project if it is terminated today itself. It is the third set in
the process of earned value management (EVM). The earned value is given by product of the
percentage of work completed and the budget at completion (BAC). In the process of earned
value management, the planned value (PV) is calculated by the product of planned percentage
of the completed work and the BAC. Similarly, the actual cost (AC) is also taken into account
which is simply the amount spent on the project (pp. 488).
Risk management
Project risk management is aimed to reduce the associated risks to a level that can be
managed easily. Managing the risks does not necessarily mean removing them completely, it
covers both the opportunities and the threats. Generally, the risks occur at the start of the
project but it is costlier if it is identified late in the project lifecycle. Qualitative analysis is
performed so that risks can be identified along with their impacts on the project. Sometimes
when qualitative analysis isn’t enough quantitative analysis are also carried out (pp. 525-
526).
Change management
In the process of project management, there may be times where a change of working
methodology is required to implement a certain working strategy in order to better manage
the work. This change may not be easily welcomed by all the processes and the people
involved in the project. Change management is thus required to manage people side of
change such that the accurate business outcome is achieved. Project managers are responsible
to manage the operational environment changes in the project. It is very helpful in creating a
plan such that all the necessary changes are covered so that it does not affect the project
deliverables (pp. 510).

Stakeholder identification & communication
Stakeholder identification is a part of the stakeholder analysis where information about the
people associated with the project is collected. The stakeholders of the project are the people
who are directly or indirectly connected with the project and in the identification process it is
determined that whose interests must be payed attention to. It enables the project managers to
analyse which stakeholders are more important such that priorities can be set. This is helpful
particularly in the cases where there are too many stakeholders involved. They are identified
and prioritized on the basis of power, legitimacy & urgency (pp. 180).
Project closure
The last phase in the project lifecycle is the project closure where the project is closed
formally and the level of success is reported and presented to the stakeholders. The closure
involves presentation of the deliverables to the customer by the completion of all project
management processes (pp. 524).

Part 2
2.1 Work Breakdown Structure (WBS)
The following section gives details about the work breakdown structure for the Cottage
Renovation project. The breakdown structure divides the complete project into smaller
modules which when completed individually make up for the final deliverable.
Beachside cottage renovation
1. Charter signed off
Description of the project:
The following project deals with the renovation of the beachside cottage in order to make
it usable for vacation stays. The cottage is being renovated such that it can be put for
rentals and as a vacation stay.
Project objective:
The project is being undertaken to make valuable use of the available resources such that
the cottage can be renovated under the duration of two weeks. It is expected that the bank
loan will be payed back within a span of two years.
Project scope:
The completed project will result in the renovation of the beachside cottage in such a way
that it can be put up for rental services via Airbnb. A bank loan will be taken to make up
for the project costs and it is expected that the cottage will generate enough revenue in
two years for the loan amount to be payed back. People looking for a vacation home stay
would be interested in renting the cottage and this will also be the primary way for the
cottage to generate revenue.
Requirements:
Construction materials and home décor items such as curtains, shutters, flooring materials
would be required to renovate the cottage. The renovation process would require labour
and skills such as carpentry and painting hence, appropriate people would be required
who are capable of carrying out such tasks. One simple way of getting the required labour
is to hire a contractor who in turn would get the necessary labour to complete the project.
2. First milestone: Project planning
First work package required
The first work package required to achieve the first milestone includes the design and
plan for the renovation project. It includes the documents which lay out the cost
estimation and the renovated design. It takes into account the labour costs, project
duration, materials required and other such relevant information. Under this step a
detailed study about the expected costs can be completed.

Second work package required
The second package contains the planning reports and the contracts with the project
contractor. It contains information about the project approval, copies of the project plan,
project certificate, project monitoring certificate. All these documents are required for the
approval of the project. It also contains details about the execution of the project. It makes
sure that the renovation tasks are planned correctly.
3. Second Milestone: Renovation
First work package required for second milestone
It includes a rough plan for the renovation of the cottage. The site inspection and
monitoring of the changes is carried out within this package. The package keeps track of
the completion of renovation tasks such as flooring and painting. It ensures that the
project work being carried out is in the direction of achieving the overall project aim.
Second package required for the second milestone
This package includes the project closure including the closure report and delivering the
completed project work i.e. the renovated cottage in this case. Final quality checks and
site inspection is a part of this work package aimed at making sure that the completed
work satisfies the stated project requirements. The closure stage officially marks an end to
the renovation work showing that the work has finally been completed.
Beachside Cottage Renovation
S. No. Work Package Duration Start date Finish date
Beachside cottage renovation 10 days 01/06/20 12/06/20
1. Planning and pre-renovation
stage
2 days 01/06/20 02/06/20
1.1 Site inspection and developing
project charts
1 day 01/06/20 01/06/20
1.2 Cost analysis and meeting with
contractor
1 day 02/06/20 02/06/20
2. Contract approval 1 day 03/06/20 03/06/20
3. Renovation phase 6 days 04/06/20 04/06/20
Sanding, purchasing supplies and
washing
1 day 04/06/20 04/06/20
Repairing floor and porch 1 day 05/06/20 05/06/20
Painting 2 days 08/06/20 09/06/20
Carpentry work 1 day 10/06/20 10/06/20
Refinishing floors & porch, setting
new décor and final cleaning
1 day 11/06/20 11/06/20
4. Project closure 1 day 12/06/20 12/06/20
4.1 Final site inspection ½ day 12/06/20 12/06/20
4.2 Releasing contractor ½ day 12/06/20 12/06/20

Figure 1: Work breakdown structure

2.2 RACI Chart
WBS
Code
Activity name Sponsor Project
manager
Contractor Apprentices
1. Charter signed off C R A I
2. Pre-renovation
planning
C R A I
3. Designing A R C I
4. WBS I A R C
5. Resource
overloading
C A R I
6. Cost analysis and
budget planning
A R C I
7. Risk analysis C A R I
8. Stakeholder analysis A R C I
9. Site inspection and
framing
C R C I
10. Carpentry I C A R
11. Painting I C A R
12. Washing / Sanding I C A R
13. Project closure I R A C
Abbreviations: Responsible- R, Accountable- A, Consult- C, Inform- I
2.3 AoN
The following table shows a list of tasks with their names and the duration they would be
completed in. The AoN diagram will show the task dependencies and will showcase the burst
and the merge activities in the project.
Name Task Duration Dependencies
Beachside cottage renovation 10 days
Planning and pre-renovation
stage
2 days
A Site inspection and developing
project charts
1 day
B Cost analysis and meeting with
contractor
1 day A
C Contract approval 1 day A, B
Renovation phase 6 days
D Sanding, purchasing supplies and
washing
1 day C
E Repairing floor and porch 1 day D
Painting 2 days
F Carpentry work 1 day E
Refinishing floors & porch, setting
new décor and final cleaning
1 day
Project closure 1 day

G Final site inspection ½ day F
H Releasing contractor ½ day G
Figure 2: AoN diagram
2.4 Gantt chart
Task Name Duration Start Finish
Beachside Cottage
Renovation 10 days Mon 01/06/20 Fri 12/06/20
Planning and pre-renovation
stage 10 days Mon 01/06/20 Fri 12/06/20
Site inspection and
developing project charts 1 day Mon 01/06/20 Mon 01/06/20
Cost analysis and meeting
with contractor 1 day Tue 02/06/20 Tue 02/06/20
Contract approval 1 day Wed 03/06/20 Wed 03/06/20
Renovation phase 6 days Thu 04/06/20 Thu 11/06/20
Sanding, purchasing supplies
and washing 1 day Thu 04/06/20 Thu 04/06/20
Repairing floor and porch 1 day Fri 05/06/20 Fri 05/06/20
Painting 2 days Mon 08/06/20 Tue 09/06/20
Carpentry work 1 day Wed 10/06/20 Wed 10/06/20

Refinishing floors & porch,
setting new décor and final
cleaning
1 day Thu 11/06/20 Thu 11/06/20
Project closure 1 day Fri 12/06/20 Fri 12/06/20
Final site inspection 1 day Fri 12/06/20 Fri 12/06/20
Releasing contractor 1 day Fri 12/06/20 Fri 12/06/20
Figure 3: Gantt Chart

2.5 Resource overloads
The resources for the beachside cottage renovation project are managed such that there is
least overloading of resources. The cost distribution table for the people working to complete
this project is given below and a visual representation is followed by the table.
People involved Amount spent per hour Profit
Contractor $125 10000
Apprentice I $60 4800
Apprentice II $40 3200
$125
$60
$40
Contractor Apprentice I Apprentice II
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Profit