MGT5PMT Project: Royale Pizza Renovation Budget, Schedule & Risk

This project management assignment focuses on the renovation of Royale Pizza. It begins with a detailed project schedule created using the Critical Path Method (CPM), including task durations, resource allocation, and cost estimations. The analysis compares the CPM with other scheduling methods and identifies the critical path and potential stress points. The assignment then delves into budget planning, outlining the estimated costs for various project phases and the assumptions made during budgeting. Cost control strategies, such as proper planning, expense management, and coordination, are also discussed. Finally, the assignment addresses risk management, identifying potential risks like improper installations and budget overruns and proposing corresponding response strategies, such as hiring skilled professionals and daily schedule tracking. The project utilizes tools like MS Project and Gantt charts to create a project schedule and budget and also includes a risk register and Delphi method for identifying and managing risks. The project aims to provide a comprehensive overview of the project management process in the context of a real-world renovation scenario.

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

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Table of Contents
Question 1..................................................................................................................................2
1.1 Project schedule...............................................................................................................2
1.2 Used methods, tools and techniques................................................................................5
1.3 Comparison between the tools, methods and techniques that are not used.....................6
1.4 Project stress point in critical path...................................................................................7
1.5 Identification of tools that are used in the critical path....................................................7
Question 2..................................................................................................................................8
2.1 Budget for the project.......................................................................................................8
2.2 Assumptions for budget...................................................................................................9
2.3 Actions undertaken for controlling cost...........................................................................9
Question 3................................................................................................................................10
3.1 Identification of tools and techniques for risk management..........................................10
3.2 Risk response techniques and strategies........................................................................11
Bibliography.............................................................................................................................15

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Question 1
1.1 Project schedule
The table which is provided focuses on the detailed schedule including the resources
and the cost that are required for the project.
WBS
ID
Activity
description
Precedence
Duration
estimation
Resources
Cost
estimation
0
Renovating the
Royale Pizza
shop
6 mons
AU$
40,000.00
1 Design phase 1 mon
AU$
5,000.00
1.1
Analyzing
the problem
2 days Business analyst AU$ 200.00
1.2
Determining
solution
2 3 days
Project management
consultant
AU$ 300.00
1.3
Creating
rough sketch
3 4 days Designer AU$ 500.00
1.4
Creating the
design for the
project
4 7 days
Designer, Project
management consultant
AU$
3,000.00
1.5
Refining the
design
5 4 days
Project management
consultant
AU$
1,000.00

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1.6
Milestone 1:
Proper design for
the store
renovation is
created
6 0 days AU$ 0.00
2
Procurement
and delivery
phase
2 mons
AU$
18,000.00
2.1
Determining
the procurement
need
6 6 days Procurement manager AU$ 200.00
2.2
Finding a
supplier
9 5 days
Project management
consultant
AU$ 100.00
2.3
Determining
the prices of the
various
equipment’s
10 7 days Procurement manager AU$ 200.00
2.4
Buying
equipment like
exhaust system,
dough roller and
other for
renovation work
11 10 days Supplier
AU$
12,000.00
2.5 Managing 12 7 days Procurement manager AU$

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logistics 5,000.00
2.6
Managing
project delivery
13 5 days
Procurement manager,
Project management
consultant
AU$ 500.00
2.7
Milestone 2:
Getting approval
for construction
and installation
14 0 days AU$ 0.00
3
Construction
phase
1 mon
AU$
7,000.00
3.1
Creating the
floor of the store
14 4 days
Contractor, Construction
manager
AU$
2,000.00
3.2
Cleaning of
the kitchen area
17 4 days
Construction manager,
Worker
AU$
1,000.00
3.3
Increasing
the cooking area
18 6 days
Construction manager,
Worker
AU$
1,000.00
3.4
Constructing
additional dining
spaces
19 5 days
Contractor, Construction
manager
AU$
2,000.00
3.5
Undertaking
inspection
20 1 day
Safety inspection manager,
Technical and compliance
certification bodies
AU$
1,000.00
3.6 Milestone 3:
Finishing the
construction
21 0 days AU$ 0.00

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work
4
Installation
and painting
phase
2 mons
AU$
10,000.00
4.1
Installation of
equipment
21 7 days Installer, Worker
AU$
2,000.00
4.2
Installation of
air-conditioner
24 8 days Worker
AU$
1,000.00
4.3
Installation of
needed hardware
and software
25 5 days
Installer, Technical and
compliance certification
bodies
AU$
1,500.00
4.4
Undertaking
dust free painting
26 20 days Painter
AU$
5,500.00
4.5
Milestone 4:
Project closure
27 0 days AU$ 0.00
1.2 Used methods, tools and techniques
It is found that the CPM method is used for scheduling the renovation project. The
critical path which is identified is mainly built with the use of predecessors as well as
successors which are generally required for accomplishing the project task (Wu, Lin and
Sheng 2018). In addition to this, it is found that the critical path helps in predicting the time
for each of the activity and helps in assigning the right team of the project.
MS project software is mainly used for developing proper plan for the project and for
properly assigning different resources to tasks as well as tracking the entire progress of the

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project effectively. In addition to this, the MS project helps in estimating the total budget of
renovation project.
Gantt chart is one of the scheduling techniques that help in representing the activities
as bars which helps in estimating the project duration. They generally assessing the duration
of the project and helps in determining the resources which are required for the project (Ong,
Wang and Zainon 2016).
1.3 Comparison between the tools, methods and techniques that are not used
It is identified that for successful execution of the project, critical path method is used
for project scheduling instead of proper planning method. It is found that in planning method,
milestones of the project can be identified and project activities are determined but it is quite
difficult to identify the accurate duration of the project. Excel spreadsheet tool is not used
within the project and instead of that MS project is used by the project manager in order to
create the project schedule (Meredith, Mantel Jr and Shafer 2017). Excel spreadsheet is not
used as it will become quite difficult to keep track on the renovation project as excel is not
suitable for planning complex projects. In addition to this, the project utilizes Gantt chart
instead of critical path method and this is because critical path helps in visualizing the entire
flow of the project and generally helps in calculating the duration when all the project
deliverables as well as dependencies of project are known (Joslin and Muller 2015).
Moreover, this technique is not considered to be handy within the renovation project because
the project has a number of uncertainties.

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1.4 Project stress point in critical path
The stress point that is showcased in the schedule while renovating the pizza shop is
identified on the critical path that is reflected below:
Figure 1: Critical path reflecting stress points in project
(Source: Created by Author)
1.5 Identification of tools that are used in the critical path
The critical path method is one of the important tools that helps in properly
scheduling as well as managing the project. It further helps in designating the specific order
as well as various sequences of actions which helps in determining the project duration

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(Kerzner 2017). This is further helpful in properly managing the project and reflecting the
critical path properly.
Question 2
2.1 Budget for the project
The figure which is showcased below helps in reflecting that around $40,000 is
needed for renovating the Royale Pizza shop.
Figure 2: Budget of the project

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(Source: Created by Author)
2.2 Assumptions for budget
In order to estimate the budget of the project, the project manager makes the
following assumption:
Equipment cost: The money for the various equipment including dough roller,
exhaust system as well as air conditioner are assumed to be around $10,000
Labour cost: The money that is paid to the workers who are involved with the project
is assumed as per experience so that the budget of the project will be accurate (Meredith et
al. 2017).
Cost for each phase: The money that is required for executing each project phase is
estimated that further reflects that design phase need AU$5,000 whereas the procurement &
delivery requires AU$8,000. In addition to this, construction phase requires AU$7,000 and
further the installation and painting phase needs AU$10,000.
2.3 Actions undertaken for controlling cost
Cost control is considered as one of the practice that is used in the project for reducing
the expenses. The strategies for methods that are utilized for cost control are listed below:
Proper planning: Cost control generally forces the project managers for planning the
project activities properly (Smith 2016). It is found that the budgetary controls are mainly
concerned with various concrete numbers regarding the various targets.
Manage the expenses: The expenditure of the project must be managed effectively
on a weekly basis so that the project manager can keep track on the entire project for
avoiding budget overflow (Tonchia 2018).

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PROJECT MANAGEMENT
Co-ordination: Proper coordination between the different departments of the project
are helpful in promoting co-operation among different departments of the organization which
further helps in encouraging information about budget management.
Create a baseline: It is necessary to establish proper baseline against the various
actual costs on the basis of data (Sanchez and Terlizzi 2017). This not only helps in
controlling the project cost but also helps in managing the budget of the project effectively.
Question 3
3.1 Identification of tools and techniques for risk management
It is necessary to select the correct tools and techniques which are helpful in reducing
the problem of risk management. For resolving the risks of renovation project, following
tools and techniques are used:
Risk register: The risk register is an important risk management tools that helps in
tracking the risks within the entire lifecycle of the project (Iqbal et al. 2015). It generally acts
as snapshot for the project risk and helps in keeping track on the way in which the project
risks are managed.
Root cause analysis: It is a factor that uses a number of approaches in order to
properly uncover the reason behind the risk and thus helps in effectively managing the project
properly. In addition to this, it further helps in improving the quality of the project.
Delphi method: In this method, a panel of experts are asked to answer different types
of questionnaire in round and this method is used for asking the workers to reflect their
opinions on the various types of risks that generally occur within the project while renovating
the street (Liu, Meng and Fellows 2015).

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3.2 Risk response techniques and strategies
The table which is provided below showcases the different risk statement and
response plan which are used for resolving the renovation project issue.
Risk ID
Risk
Statement
Probability Impact Score
Response
plan/Strategy
1. Improper
installation:
Improper
installation of
air
conditioning
as well as
exhaust
system can
create a
number of
operational
issues of shop.
High High 4 The installer
who is
involved with
the project
must have
proper skills o
that the
installation
work gets
accomplished
on time.
2. Inexperienced
technical
manager: Due
to improper
skills and
experience, the
technical
Medium Medium 4 Hiring skilled
and
experienced
technical
managers will
be helpful in
avoiding the

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engineer
creates a
number of
problem that
can cause
safety issue of
the workers.
safety related
risks.
3. Inappropriate
inspection: If
the inspection
during the
store
renovation is
not undertaken
properly then
the workers
will
experience
safety
problems.
High High 5 In order to
avoid such
problem,
inspection
must be
undertaken on
a daily basis.
It further
helps the
workers to do
their work
without any
type of
obstruction.
4. Improper
budget
estimation:
The
High High 5 The problem
that is linked
with the
budget

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expenditure
that is needed
in the project
is not properly
estimated then
it generally
can cause a lot
of financial
issue that
further can
create
obstruction
during the
progress of the
project.
estimation
will get
resolved by
estimating the
budget
properly
before the
kick-off
phase. In
addition to
this, keeping
track on the
budget on
regular basis
will avoid the
budget related
issue from the
project.
5. Improper
tracking of
schedule: The
project
managers who
are engaged
with the
High Medium 4 Tracking the
schedule daily
for making
sure that the
project is on
the right track
then the entire

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PROJECT MANAGEMENT
project are
unable to
handle the
schedule
properly while
executing the
project
activities then
the project can
face delay.
project gets
finished on
time and
therefore the
problem that
is associated
with the
schedule can
be avoided.

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Bibliography
Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitienė, J., 2015. Risk
management in construction projects. Technological and Economic Development of
Economy, 21(1), pp.65-78.
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology
and project success in different project governance contexts. International Journal of Project
Management, 33(6), pp.1377-1392.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Liu, J., Meng, F. and Fellows, R., 2015. An exploratory study of understanding project risk
management from the perspective of national culture. International Journal of Project
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approach. John Wiley & Sons.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
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Ong, H.Y., Wang, C. and Zainon, N., 2016. Integrated earned value Gantt chart (EV-Gantt)
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