Project Management: Renovation Project Schedule, Budget, and Risk

This project management assignment focuses on the renovation of a Royale Pizza shop, covering key aspects such as project scheduling, budgeting, and risk management. The assignment begins with a detailed project schedule, outlining activities, durations, resources, and costs. It uses tools like MS Project and Gantt charts for effective planning and resource allocation. A critical path analysis is performed to identify stress points and ensure timely completion. The budget section presents a comprehensive cost breakdown, including assumptions made during preparation and steps for cost control. The risk management component identifies potential risks, assesses their probability and impact, and proposes response strategies. The document demonstrates the application of various project management techniques and tools to ensure the successful execution of the renovation project. The provided solution showcases the practical application of project management principles and tools in a real-world scenario, making it a valuable resource for students studying project management. The document also includes a detailed bibliography of relevant academic sources, further enhancing its credibility and usefulness as a study aid.

Running head: PROJECT MANAGEMENT
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Schedule and identification of different types of tools................................................................2
1.1 Schedule for renovation project.............................................................................................2
1.2 Merits of the tools, methods and techniques which are used................................................5
1.3 Comparison with the tools, methods and techniques which are not used.............................6
1.4 Determining the stress point in critical path..........................................................................7
1.5 Tools and techniques used.....................................................................................................7
2. Budget and used tools..................................................................................................................8
2.1 Project budget for renovation of store...................................................................................8
2.2 Assumptions made during the budget preparation................................................................9
2.3 Steps for controlling project cost...........................................................................................9
3. Project risk management tools and techniques..........................................................................10
3.1 Determination of tools and techniques for managing risks.................................................10
3.2 Risk analysis and risk response strategies...........................................................................11
Bibliography..................................................................................................................................16

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1. Schedule and identification of different types of tools
1.1 Schedule for renovation project
The prepared schedule includes information about activity description, required duration,
resources as well as budget for finishing the shop renovation of Royale Pizza on time.
WBS
ID
Activity
Description Precedence Duration
Estimate
Resource
Cost
Estimate
0 Royale Pizza
shop
renovation
6 mons $40,000.00
1 Project
design phase
1 mon $5,000.00
1.1 Identificati
on of business
needs
5 days Project management
consultant
$1,800.00
1.2 Proper
design for
blueprint
2 13 days Designer $3,200.00
1.3 Providing
approval for
the project
3 2 days Sponsor $0.00
1.4 Milestone 4 0 days $0.00

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1: Design
phase
completion
2 Procureme
nt and
delivery
phase
2 mons $18,000.00
2.1 Procureme
nt need
identification
5 10 days Contractor, Procurement
manager
$5,000.00
2.2 Project
supplier’s
identification
7 9 days Procurement manager,
Additional cost [1]
$6,000.00
2.3 Understan
ding the price
of the
materials
8 7 days Sponsor $0.00
2.4 Material
purchase
9 9 days Procurement manager,
Equipment supply [1]
$5,000.00
2.5 Receipt
and inspection
10 5 days Construction manager,
Shop supervisor
$2,000.00
2.6 Milestone
2: Completion
11 0 days $0.00

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PROJECT MANAGEMENT
of
procurement
and deliver
phase
3 Constructio
n phase
1 mon $7,000.00
3.1 Finishing
the flooring
work
12 8 days Construction manager,
Contractor, Project
manager
$3,000.00
3.2 Compress
or capacity
increment
14 4 days Installer, Construction
manager
$2,000.00
3.3 Proper
cleaning
kitchen
15 5 days Cleaner, Construction
manager
$1,000.00
3.4 Buying of
various
equipment’s
16 3 days Contractor, Project
manager
$1,000.00
3.5 Milestone
3: Completion
of
construction
phase
17 0 days $0.00

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4 Painting or
installation
2 mons $10,000.00
4.1 Installatio
n of air
condition
17 17 days Technical analyst, Installer $4,000.00
4.2 Dust free
painting
20 23 days Installer $6,000.00
4.3 Milestone
4: Completion
of painting
and
installation
21 0 days $0.00
1.2 Merits of the tools, methods and techniques which are used
MS project is one of the handy tools that is mainly used by the project managers for
developing a schedule and for assigning resources to the project tasks and for effectively
managing the budget of the project by analyzing the workloads of an ongoing project (Kerzner
2019). Furthermore, it is utilized for setting realistic goals and for effectively distributing as well
as managing the budget of the renovation project.
CPM (Critical path method) is used for planning, analyzing as well as for schedule the
project. It is considered as one of the stepwise methods that assists in determining the critical as
well as non-critical tasks which are important for the proper progress of the project (Razdan et

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PROJECT MANAGEMENT
al. 2017). In addition to this, this method helps in reflecting the entire project in a very much
graphical form.
Gantt chart is an important scheduling technique which will be used for managing the
Royale pizza renovation project as Gantt chart will be helpful in creating a clear picture of the
project complexity and will be helpful in organizing the thoughts in order to set proper as well as
realistic timeframe for the project (Nurre and Weir 2017).
1.3 Comparison with the tools, methods and techniques which are not used
During scheduling, MS project software tool is used instead of Excel and this is because
excel tool is quite difficult to manage the advanced activities and pricing rules for the entire
renovation project and it is considered to be unfit for the agile practices of the project. In addition
to this, the project manager does not utilize program evaluation and review technique as
scheduling method for preparing the project schedule instead of CPM (Marchewka 2016). This is
because PERT generally forces the project managers for defining the activities as independent
project tasks and its accuracy is found to limited by the reliability of each estimates. Moreover, it
is found that schedule compression method is avoided by the project manager while scheduling
and instead of that they utilize Gantt chart (Joslin and Muller 2015). This is mainly because
crashing the project generally helps in spoiling the rapport that is mainly present between the
project team members and managers.
1.4 Determining the stress point in critical path
The figure that is provided reflects the stress point by showcasing the critical path in the
renovation project.

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Figure 1: Critical path
(Source: Created by Author)
1.5 Tools and techniques used
CPM analysis is mainly used for reflecting the critical path and the stress point on the
critical path of the renovation project. The CPM analysis tool is utilized as it helps in properly
planning the tasks that needs to be completed (Razdan et al. 2017) Furthermore, helps in
determining the minimum length that is required for finishing the work of the project quite
successfully.

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2. Budget and used tools
2.1 Project budget for renovation of store
The below figure showcase that around AU$40,000 is needed for properly renovating the
shop of Royale pizza for minimizing the issues that the shop faces and for increasing their
profitability.
Figure 2: Project budget
(Source: Created by Author)

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PROJECT MANAGEMENT
2.2 Assumptions made during the budget preparation
The assumption is one of the beliefs that is needed to be assumed for preparing the
budget quite effectively.
Equipment’s: The money that is needed for buying different equipment for the Pizza
store is assumed to be bought within the budget AU$5,000.
Materials: The different types of materials like, sand, stones as well as wood that are
mainly needed for renovation work will be bought from the suppliers within AU$6,000 (Wu, Qiu
and Liou 2017).
Labour cost: The money that is mainly provided to the staffs and workers for their work
in the project are generally assumed as per experience and market analysis so that total
estimation can be done accurately.
2.3 Steps for controlling project cost
It is necessary to utilize proper cost management tools for controlling the cost that is used
for renovating the shop. The different types of cost control techniques which are used are
elaborated below:
Tracking cost: Tracking actual cost is very much important and it helps in providing
information about the expenditure that is mainly done for the project. This further helps in
managing over expenditure and assists in controlling the project budget (Tran et al. 2018).
Cost estimation: It is a one of the important elements of cost management tool that helps
in forecasting the expenditure that is needed for finishing the work of the project. If estimation is
done accurately then the project manager can manage and control the expenditure effectively.

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Change control: Change control another important technique that is essential for various
types of potential changes which occur in the project. If the changes are frequently done in the
project then the budget of the increases therefore it is necessary to ensure the changes which are
important for controlling budget (Vu et al. 2016).
Effective management of time: If the time of the project is managed properly then the
entire project gets finished within the assumed expenditure however if the project is dragged
after the completion date the higher costs gets incurred that effectively create negative impact on
the progress of the project.
3. Project risk management tools and techniques
3.1 Determination of tools and techniques for managing risks
The evaluation, determination as well as mitigation of project risks are generally carried
out with the help of formal as well as different types of informal tools and project techniques.
The used tools and techniques are illustrated below:
Risk audits: Proper risk audit requires to be done for properly evaluating the
effectiveness of the different responses to the risks that occur during renovation. This is helpful
in properly assessing the procedure of entire risk management so that the project risks can be
resolved effectively (Hornstein 2015).
Risk register: It is a tool that is mainly used in order to document different risks and for
identifying proper ways which are helpful in effective management of the project risk. In
addition to this, the utilized risk register is found to be very important for managing the risks that
are associated with proper renovation of the Royale pizza shop.

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Root cause analysis: It is a systematic procedure that is used for determining the
different root causes of the issues and proper approach for responding to such types of risks (Hu
et al. 2016). In addition to this, it is found that RCA technique is dependent on the idea which
mainly requires proper management for finding out correct method for preventing such issues
properly.
3.2 Risk analysis and risk response strategies
Risk ID
Risk
Statement
Probability Impact Score
Response
plan/Strategy