Project Management: Analysis of Royale Pizza Shop Renovation Project

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Added on 2022/11/11

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This project management assignment analyzes the renovation of Royale Pizza, a shop located in Melbourne. The assignment begins with the preparation of a detailed project schedule, utilizing Gantt charts and the critical path method, and identifies key milestones, resources, and potential stress points. The project then moves on to budget creation, outlining direct and indirect costs, and assumptions made during the budgeting process. Following this, the assignment delves into project risk management, identifying potential risks such as schedule slippage and budget shortfalls, and proposes risk response strategies. The project utilizes tools and techniques such as root cause analysis, the Delphi method, and risk registers. The assignment also includes a detailed budget breakdown, a critical path analysis chart, and a risk register with qualitative and quantitative risk analyses. This comprehensive approach ensures the project's successful completion and is a great resource for students studying project management.

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

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PROJECT MANAGEMENT
Table of Contents
1. Preparation of schedule.......................................................................................................2
1.1 Project schedule...........................................................................................................2
1.2 Relative merits of the methods, tools and techniques.................................................5
1.3 Comparison with the tools that are not used...............................................................6
1.4 Stress point on the critical path...................................................................................7
1.5 Tools and techniques used for the critical path...........................................................8
2. Budget.................................................................................................................................... 8
2.1 Budget for the project.......................................................................................................8
2.2 Assumptions that are made in preparing the budget........................................................9
2.3 Actions required for controlling the cost.........................................................................9
3. Project risk management...................................................................................................... 10
3.1 Identification of tools and techniques that are used or risk management......................10
3.2 Qualitative and quantitative risk analysis with risk response strategies for mitigating the
risk........................................................................................................................................10
Bibliography.............................................................................................................................14
Bibliography.............................................................................................................................15

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PROJECT MANAGEMENT
1. Preparation of schedule
1.1 Project schedule
The schedule which is prepared below for the renovation of the shop includes key
milestones as well as resources that are needed for the project.
WBS
ID
Activity
description
Precedence Duration
estimate
Resources Cost
Estimate
0 Renovation of
Royale Pizza
shop
6 mons AU$
40,000.00
1 Design stage 1 mon AU$
5,000.00
1.1 Conducting
meeting with the
designer
1 day Project management
consultant
AU$
200.00
1.2 Undertaking
sketch studies
2 4 days Designer, Project
management
consultant
AU$
300.00
1.3 Undertaking
preliminary
design for shop
renovation
3 5 days Designer AU$
1,500.00
1.4 Creating
detailed design
4 10 days Contractor,
Designer
AU$
3,000.00

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PROJECT MANAGEMENT
1.5 Milestone 1:
Getting approval
for the project
design that is
developed
5 0 days AU$ 0.00
2 Procurement
and delivery
phase
2 mons AU$
18,000.00
2.1 Determining
suppliers and
other
construction
contractors
5 8 days Procurement
manager, Project
management
consultant, Project
manager
AU$
200.00
2.2
Recommending
vendors
8 5 days Procurement
manager, Project
management
consultant
AU$
300.00
2.3 Purchasing
orders and
executing
contracts
9 8 days Equipment suppliers AU$
7,000.00
2.4 Purchasing of
deep fryers,
boilers and dough
roller
10 9 days Equipment suppliers AU$
4,000.00

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PROJECT MANAGEMENT
2.5 Managing
and expediting
delivery of goods
11 10 days Procurement
manager, Supervisor
AU$
6,500.00
2.6 Milestone 2:
Getting approval
for construction
phase
12 0 days AU$ 0.00
3 Construction
phase
1 mon AU$
7,000.00
3.1 Undertaking
the work of
flooring
12 5 days Construction
manager, Contractor
AU$
2,000.00
3.2 Increasing the
capacity of
compressor
15 2 days Construction
manager, Supervisor
AU$
1,000.00
3.3 Removing the
rear area of the
shop
16 7 days Construction
manager, Contractor
AU$
2,000.00
3.4 Creating
additional dining
spaces
17 5 days Construction
manager, Supervisor
AU$
1,500.00
3.5 Undertaking
safety inspection
18 1 day Technical and safety
compliance
AU$
500.00
3.6 Milestone 3:
Completion of
19 0 days AU$ 0.00

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PROJECT MANAGEMENT
construction
phase
4 Installation
and painting
phase
2 mons AU$
10,000.00
4.1 Installation of
exhaust system
19 7 days Installer AU$
1,000.00
4.2 Installation of
air conditioning
system
22 8 days Construction
manager,
Contractor, Installer
AU$
3,000.00
4.3 Painting 23 20 days Painter AU$
5,000.00
4.4 Installation of
needed software
and hardware
24 5 days Installer, Technical
and safety
compliance
AU$
1,000.00
4.5 Milestone 3:
Completion of
installation and
painting phase
25 0 days AU$ 0.00

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PROJECT MANAGEMENT
1.2 Relative merits of the methods, tools and techniques
Used Method
It is found that in order to create the project schedule, visual depiction method is used
for showcasing the Gantt chart. It is found that the Gantt chart helps in breaking each of the
project phases properly for successfully representing them as a horizontal bar (Ong, Wang and
Zainon 2016). Gantt charts are mainly used for successfully planning and scheduling the
project so that the project duration as well as the resources that are needed can be accessed.
Used tools
It is found that in order to create the project schedule, MS project software tool is mainly
used. This is a software tool that is mainly used by the project managers for developing
schedule as well as for assigning different types of resources to the task. In addition to this, with
the help of this tool, budget and workload of the project can be analyzed.
Used technique
Critical path method is used while developing the schedule for the renovation project as
critical path helps in uncovering the longest possible duration that is needed for executing the
project (Kerzner 2017). In addition to this, the CPM method helps in marking the critical tasks
of the project and the project activities which may float. Furthermore, this method helps in
visualizing the entire flow of the project and helps in calculating the duration when all the
project dependencies as well as deliverables are known.
1.3 Comparison with the tools that are not used
It is found that the project used Gantt chart as the scheduling method instead of resource
oriented scheduling. This is because in resource oriented scheduling is used when there is
competition between the various tasks or components and provides knowledge only regarding

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PROJECT MANAGEMENT
the tasks however Gantt chart not only provides proper idea about the project but also helps in
planning and scheduling resources (Hornstein 2015). In context to PM software tool, MS
project software tool is used for managing the project instead of excel. This is because with the
help of excel, it is quite difficult to manage complex project like renovation effectively but the
use of MS project helps in managing the Royale pizza shop renovation on time and quite
effectively. In addition to this, it is found that the project managers use critical path technique
instead of PERT technique (Thomas and Ellis Jr 2017). This is because PERT only helps in
visualizing task flow within the project and assist in estimating the project timeline however
with the help of CPM, the longest possible timeline within the project can also be uncovered.

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PROJECT MANAGEMENT
1.4 Stress point on the critical path
The critical path that is provided below helps in reflecting the stress point for the
renovation project.
Figure 1: Critical path of the project
(Source: Created by Author)
1.5 Tools and techniques used for the critical path
It is found that critical path analysis chart tool can be used for showcasing the critical path
of the project. The main benefit of using this specific tool is that it helps in saving both time and
money and additionally helps in creating proper comparison with the actual and planned

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PROJECT MANAGEMENT
progress in the project. In addition to this, it helps in scheduling as well as controlling the
project activities.
2. Budget
2.1 Budget for the project
The figure that is given helps in depicting the total budget including the direct cost and
indirect cost which is required for the purpose of Royale Pizza Shop renovation.
Figure 2: Budget of the project
(Source: Created by Author)

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PROJECT MANAGEMENT
2.2 Assumptions that are made in preparing the budget
It is found that accurate as well as precise cost assumption in the project are very much
critical for developing both the long term as well as short term budget. The various types of
assumption which are made for renovating the pizza shop are listed below:
 Salaries: The salaries of the labours as well as managers are assumed as per the time for
which they are involved within the project (Todorovic et al. 2015).
 Materials: The raw materials cost which are needed for the renovation work are
assumed and included as direct cost within the total budget
 Equipment cost: The budget for different types of equipment including dough roller,
chairs, fryers and other needs are assumed before the project.
2.3 Actions required for controlling the cost
The project managers take the following actions in order to control the cost of the
project quite effectively.
Tracking expenditure: It is necessary to keep track on the actual cost for analyzing the
expenditure that is done on each of the phase of the project. This helps in tracking the periodic
targets which is mainly set out within the budget (Badewi 2016).
Effective time management: It is one of the important techniques that are helpful in
proper time management. This technique is mainly applied to different management areas for
successfully controlling the cost of the project.
Proper change control: Project change control is helpful in analyzing the changes that
could occur during the project and this is due to the fact that each of the changes within the
project scope will impact the deadline of the project and further helps in increasing effort that is
needed (Kerzner 2017).

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3. Project risk management
3.1 Identification of tools and techniques that are used or risk management
The various types of project risk management tools as well as techniques that are used in
the project are effectively elaborated:
Root cause analysis: This is one of the common methods that are mainly used for
identifying the risks effectively. This root causes are properly utilized for additional risks in the
project (Carvalho and Rabechini Junior 2015).
Delphi method: The Delphi method is one of the forecasting procedure frameworks
that is based on the results of various rounds of questionnaire that is panel of experts.
Probability and impact matrix: This matrix helps in properly determining different
types of risks that require immediate response. It is found that this can be further customized as
per the need of the project.
Risk register: A risk register is one of the documents that is updated on a regular basis
within the entire life cycle of the project (Hopkin 2018). It helps in identifying the risks quite
effectively that are mainly linked with the renovation project.