Shangri-La Hospital Case Study: Project Management and Budget Analysis

This case study analyzes the Shangri-La Hospital project from 2019-2020, focusing on project management methodologies, scheduling, and cost control. The report details the project's scope, including staff training and hospital operations. It explores project limitations, such as the use of external training venues and the Christmas break, which impacted costs. The study employs an Agile project management approach, using Microsoft Project to create schedules and budgets, identify cost-saving recommendations, and allocate resources effectively. The analysis covers human resource allocation, bottom-up budgeting, and provides recommendations for cost reduction, such as establishing in-house training facilities. The project aims to provide efficient healthcare services in the UK while managing costs effectively.

The Shangri-La Hospital
Case Study 2019-2020

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
Purpose of the report....................................................................................................................3
Aims and objectives.....................................................................................................................3
CHAPTER 1: INTRODUCTION....................................................................................................3
CHAPTER 2: ANALYSIS OF THE PROJECT SPECIFICATION (scope)..................................4
Current status...............................................................................................................................4
Project limitations........................................................................................................................5
CHAPTER 3: PROJECT INITIAL SCHEDULE (scheduling).......................................................6
Research method..........................................................................................................................6
Analysis and Scheduling..............................................................................................................6
CHAPTER 4: RESOURCES OF THE PROJECT (planning and resourcing)..............................10
Human resource allocation........................................................................................................10
CHAPTER 5: BOTTOM UP BUDGET........................................................................................12
CHPATER 6: RECOMMENDATIONS AND CONCLUSIONS.................................................13
Cost saving recommendations...................................................................................................13
Conclusions................................................................................................................................13
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
Purpose of the report
The project report about The Shangri-La Hospital Case Study 2019-2020 is developed for
the purpose to summarising outcomes which are gained using Microsoft project management and
Excel. This report is developed with the purpose to enhance the skills of scheduling a project and
creating budgets which can assist in minimising overall cost occurrence of the project. Rationale
of effectively developing this report is to get efficiency in creating Gantt charts using MS Project
Management Software (Wong, 2017). In this report various alternatives are found by which cost
of a project can be reduced without impacting on the quality.
Aims and objectives
The aim of project report is to demonstrate information about project planning for a
hospital regards to better training and selection of suitable staff members in a cost effective
manner. In detailed manner, under the report activities which are necessary for a new opened
hospital are demonstrated in a better way. There is a range of aims and objectives of project
report such as:
 Identify the ways through with cost of training of hospital’s staff members can be
minimised.
 Managing the training activities in a systematic manner by the use of Microsoft Project
Management Software.
 Explanation of scope, scheduling, planning and resourcing of project.
 Conducting the activities and operations as accordance of prepared financial plans.
So these are the key aims and objectives of project report. In the context of project manager,
this is essential to follow all the activities as accordance of prepared plans. Specially, in the
aspect of monetary terms this is necessary to allocate funds into activities according of budgets.
CHAPTER 1: INTRODUCTION
In any kind of business, it is essential to organise monetary and non monetary activities in
a systematic manner so that total cost can be kept under control (Quinlan, Babin, Carr and
Griffin, 2019). In the current case study, a business plan for Shangri La Hospital is developed
which is supported by the budgets and schedule programs. Under the project report, case study of
Shangri La hospital is covered in which 900 candidates will be hired and for their effective

performance, training to each employee will be given before commencement of the hospital’s
operations. The candidates are selected from different regions such as from Spain, Italy, United
Kingdom etc. This hospital will bear all the expenses of candidates such training material, hostel
fees, travelling charges and many more. In order to manage all these activities in a cost effective
manner a project is planned that consists systematic arrangement of all kinds of aspects. Apart
from the expenses of training, there are some other activities too that leads to higher amount of
cost. Such as their plan is to provide bonus to those candidates who complete their training
before pre determined time period. Overall, the main objective of project report is to cut the cost
of providing training to 900 candidates who are involved in vital range of courses. As well as all
these activities are needed to be completed before 1st of April 2020. This report will undertake a
systematic approach of project management to detail the scope, scheduling and planning &
resourcing (Zwikael and Smyrk, 2019).
CHAPTER 2: ANALYSIS OF THE PROJECT SPECIFICATION (scope)
Current status
The mission of Shangri La Hospital project is to establish a health care organisation which
can provide services to local public. The current status of this project is it is resourcing the
employees and providing them relevant trainings by the specialised instructors so that quality of
work can be maintained. The scope of this hospital is to provide health care facilities to the
people of United Kingdom. These services will include general medical services, dermatology
services, everyday wellness check ups, vaccinations and many other services. The scope of this
project is to fulfil certain milestones which are completion of selection procedure, completion of
training process, completion of construction, supply and testing of equipment and beginning of
hospital operations. All these four milestones are further discussed and evaluated by using
Project Management tool in this report. Every milestones involves various activities of
procuring, acquiring and supplying of resources. As this project is based on a hospital, the major
resources for this project are human resources who will work in this organisation (Lientz and
Rea, 2016). Besides doctors, nurses and other staff members, healthcare equipment and monitors
are other resources which will be procured in this project before commencement of the
operations of this hospital.

This project has a scope of procuring the human resources from the regions of Portugal,
Spain, Italy, France and United Kingdom. These staff members will be employed from the role
of Head of Departments, General Practitioner, Team Leaders, Team members, Carer level 1 and
2.
Project limitations
Limitations are the restrictions which can limit a project from attaining success or can
confine the possibility of success (Meredith, Mantel and Shafer, 2017). There are various
limitations in this project which can impact on growth and development of this hospital. One of
the most influencing limitation is that this hospital is providing training to their staff at various
venues of University due to which cost has been increased.
Capacity Cost/Per
Person Capacity Cost/Per
Person December Cost/Per
Person
Kings College 100 £20 100 £20 100 £20
University of Westminster 150 £25 150 £25 150 £25
Sofitel London Heathrow 300 £30 300 £30 100 £30
London Heathrow Serviced Apartments 300 £25 300 £25 300 £25
850 850 650
Capacity Cost/Per
Person Capacity Cost/Per
Person Capacity Cost/Per
Person
Kings College 200 £20 200 £20 200 £20
University of Westminster 300 £25 300 £25 300 £25
Sofitel London Heathrow 100 £30 100 £30 100 £30
London Heathrow Serviced Apartments 100 £25 50 £25 50 £25
700 650 650
October November December
January February March
Capacity Cost/Per
Person Capacity Cost/Per
Person Capacity Cost/Per
Person
Park Grand London Lancaster Gate £180 100 £180 90 £220 100
The Barbican Rooms £160 120 £160 120 £230 120
Corinthia Hotel London £220 150 £220 200 £300 20
Sofitel London Heathrow £160 100 £160 80 £200 100
London Heathrow Serviced Apartments £110 200 £110 200 £140 200
670 690 540
Capacity Cost/Per
Person Capacity Cost/Per
Person Capacity Cost/Per
Person
Park Grand London Lancaster Gate £180 100 £180 100 £180 100
The Barbican Rooms £160 120 £200 120 £160 120
Corinthia Hotel London £220 150 £220 22 £220 22
Sofitel London Heathrow £160 89 £160 70 £160 70
London Heathrow Serviced Apartments £110 200 £160 200 £110 200
659 512 512
October November December
January February March
(Exhibit 1)

If Shangri La Hospital had its own venues and appropriate infrastructure, then this project
would have saved cost of 16,513 pounds as seen in above exhibit 1. For a start up project, such
amount is important to be saved as by this quality of the work can be enhanced by utilising these
funds at some other areas of improvement.
Another limitation which is in this project is the Christmas break. The total time period of
this project is 8.5 months in which employees are only to be trained for 4 months. Due to the
Christmas break, heavy funds will be wasted of this hospital against the instructors which will be
paid for providing training to the staff. Also the amount spends for the booking of venue will
also be wasted in the period of Christmas Break.
CHAPTER 3: PROJECT INITIAL SCHEDULE (scheduling)
Research method
A project is initially scheduled in order to ascertain the period in which the project will be
completed. As an investigator, the project management approach which is selected is Agile
approach. This approach is similar to waterfall approach in which a main task is completed with
support of various sub tasks in which an activity is started only after completion of other activity
(Layton and Ostermiller, 2017). All the drawbacks of waterfall approach are rectified in Agile
approach. In agile approach various main tasks and completed using ample sub tasks and there is
no requirement of starting a task after competition of the previous task (Burgelman and
Vanhoucke, 2020). This approach is used here to schedule the project of Shangri La Hospital in
which various tasks and sub tasks will be scheduled using Microsoft Project Management
Software.
Analysis and Scheduling
Shangri La Hospital is a project which has the critical success factor (CSF) of staff
training. If the training of the staff is not conducted properly, there is a high possibility of project
failure. Staff members including doctors, nurses and carers will be effectively trained by the
instructors in the venues acquired. This training is scheduled in Excel Sheet “Training Gantt
chart” which will assist in managing the order in which type of staff members must be trained
according to their course.

Training of staff members is a critical success factor for this project due to which it can be
said that it is the most important milestone of the project. Besides this milestone, there are
various other milestones as well which will result in effective operations of Shangri La Hospital.
There are various assumptions which are taken in preparing the complete schedule for Shangri
La Hospital project. First assumption is that construction of the hospital will carry on without
any breaks of weekends. It is also assumed in below schedule presented in Exhibit 3 that the
entire recruitment and selection process will be completed in two tasks which are interview and
practical tests and all the candidates which are invited for the interview are selected.
Task Mode Task Name Duration Start Finish Predecessors
Auto
Scheduled Construction of the Hospital 164 days? Fri 14-06-
19 Fri 14-02-20
Manually
Scheduled Recruitment and Selection 24 days Thu 01-08-
19
Sat 31-08-
19
Auto
Scheduled Interview process 12 days Thu 01-08-
19
Thu 15-08-
19
Auto
Scheduled Practical tests 11 days Fri 16-08-
19 Fri 30-08-19 3
Auto
Scheduled
Completion of recruitment and
selection 1 day Sat 31-08-
19
Sat 31-08-
19 4
Auto
Scheduled Procurement of hospital supplies 22 days Mon 02-09-
19
Tue 01-10-
19 5
Auto
Scheduled Procurement of hospital equipment 13 days? Wed 02-10-
19 Fri 18-10-19 6
Auto
Scheduled Acquiring the venues 9 days? Mon 21-10-
19
Thu 31-10-
19
Auto
Scheduled Kings college 1 day Mon 21-10-
19
Mon 21-10-
19 7
Auto
Scheduled University of Westminster 1 day Tue 22-10-
19
Tue 22-10-
19 9
Auto
Scheduled Sofitel London Heathrow 1 day? Wed 23-10-
19
Wed 23-10-
19 10
Auto
Scheduled
London Heathrow Serviced
Apartments 1 day? Thu 24-10-
19
Thu 24-10-
19 11
Auto
Scheduled
Park Grand London Lancaster
Gate 1 day Fri 25-10-
19 Fri 25-10-19 12
Auto
Scheduled The Barbican Rooms 1 day Mon 28-10-
19
Mon 28-10-
19 13
Auto
Scheduled Corinthia Hotel London 1 day Tue 29-10-
19
Tue 29-10-
19 14

Auto
Scheduled Sofitel London Heathrow 1 day Wed 30-10-
19
Wed 30-10-
19 15
Auto
Scheduled
London Heathrow Serviced
Apartments 1 day Thu 31-10-
19
Thu 31-10-
19 16
Auto
Scheduled Travelling of Human resources 2 days? Thu 31-10-
19
Fri 01-11-
19
Auto
Scheduled Portugal - United Kingdom 1 day Fri 01-11-
19 Fri 01-11-19 17
Auto
Scheduled Spain - United Kingdom 1 day Fri 01-11-
19 Fri 01-11-19 17
Auto
Scheduled Italy - United kingdom 2 days? Thu 31-10-
19 Fri 01-11-19 16
Auto
Scheduled France - United kingdom 1 day Fri 01-11-
19 Fri 01-11-19 17
Auto
Scheduled United Kingdom - United Kingdom 1 day? Fri 01-11-
19 Fri 01-11-19 17
Auto
Scheduled Training and Development 60 days Mon 04-11-
19
Thu 13-02-
20
Auto
Scheduled Training of HOD 45 days Mon 04-11-
19
Thu 23-01-
20 17
Auto
Scheduled Training of GP 40 days Mon 04-11-
19
Thu 16-01-
20 17
Auto
Scheduled Training of Nurses TL 53 days Mon 04-11-
19
Tue 04-02-
20 17
Auto
Scheduled Training of Nurses TM 60 days Mon 04-11-
19
Thu 13-02-
20 17
Auto
Scheduled Training of Carer Level 1 52 days Mon 04-11-
19
Mon 03-02-
20 17
Auto
Scheduled Training of Carer Level 2 48 days Mon 04-11-
19
Tue 28-01-
20 17
Auto
Scheduled Test of equipment 11 days? Mon 17-02-
20
Sat 29-02-
20 1

(Exhibit 2)
(Exhibit 3)
From the all the above schedules of Shangri La Hospital, it has been analysed that in
completion of every tasks or milestone, there is a requirement of various resources. These
resources are human resources, monetary funds and skills. Various tasks in developed schedule

are overlapping, this overlapping is assisted due to Agile framework which will help in saving
both time and money.
CHAPTER 4: RESOURCES OF THE PROJECT (planning and resourcing)
Human resource allocation
The project of Shangri La Hospital is intended to be a big project in which various human
resources are required. These human resources are procured from five regions which are
Portugal, Spain, Italy, France and United Kingdom. As shown in Exhibit 4, in total 900
employees are procured from these five regions in order to fulfil the requirements of various
healthcare posts stating as Doctors (Head of Departments and General Practitioners), Nurses
(Team leader and Team members) and Carer (Level 1 and Level 2).
(Exhibit: 4)
Every staff member is trained in order to ensure effective training of the personnel. All 900
staff members will be rained with five distinct courses. As shown in Exhibit 5, carer level 1 and
2 requires lowest amount of training, various doctors require high level of training. These five
courses named as course A, B, C, D and E will ensure to train these employees according to the
skills and knowledge they possess.

Table 2
Course A Course B Course C Course D Course E
Head of Department (HoD) X X X X
General Practitioner (GP) X X X
Team Leader Nurse (TL) X X X X
Team Member Nurse (TM) X X X X
Carer Level 1 X X X
Carer Level 2 X X X
(Exhibit: 5)
Every course will be completed in a pre set period with the instructors will be train the
employees according to their needs. Course A will require 5 days to complete, B will require 12
days, C as 8 days, D as 20 days and Course E will also require 20 days to be completed. In order
to save the money and time, these courses will train the employees by dividing them into groups.
HODs will be divided in 2 groups and their training period will be completed in 45 days, GP will
be in 7 groups and their training period will be 40 days. Team Leader will be divided in 4 groups
and their training will be completed in 53 days. Lastly, Team members will be divided in 16
groups and their training will be completed in 60 days.
All these staff members will be trained in different universities for which cost per person per
day will be paid. All the staff members will return to their homes as their training will completed
before one week of hospital operations. These staff members will also be paid bonus for early
completion of their course. As seen in below Exhibit 6, bonus will be provided for every week
before the finishing date of the course.

Antecipation
of Finishing
Date
Bonus
1 Week £1,000,000
2 Week £1,250,000
3 Week £1,500,000
4 Week £1,750,000
5 Week £2,500,000
6 Week £3,000,000
7 Week £3,500,000
8 Week £4,000,000
9 Week £4,500,000
10 Week £5,000,000
11 Week £5,500,000
12 Week £5,750,000
13 Week £6,000,000
14 Week £6,250,000
15 Week £6,250,000
(Exhibit 6)
By this, all the staff members will be procured and trained effectively in order to ensure
future accuracy in operations of the hospital.
CHAPTER 5: BOTTOM UP BUDGET
Budget is a numerical tool which helps in anticipating the expenses and revenue which will
incur in future. This tool helps in ascertaining future contingencies as well for which provisions
are pre developed (Miller, Hildreth and Rabin, 2018). A budget is widely classified in two
categories which are top down budgeting and Bottom up budgeting. Both of these methods are
classified as the two ways of developing and framing a budget (Crescenzi and Giua, 2016). For
the case of Shangri La Hospital, bottom up budget is developed in which costs for each
individual department or segment is identified so that all that costs can be clubbed and then total
budgeted cost can be ascertained. There are five segments of cost generation against training of
staff. These segments are cost of course material which will be given to every employee to study
for their courses, cost of air tickets, Instructor cost, venue cost and Bonus. Apart from this, there
is also a cost centre of overtime work but it is assumed in this report that there is no overtime
done by any staff member or their instructors. These five segments are individual measured and
the costs incurred by these segments are predicted.