PROJECT MANAGEMENT ARENA PROJECT

Assignment Task One Project Planning
1a. Using the data in the scenario, prepare a Gantt chart for the entire programme from inception to the end of the ‘soft launch’. You may assume the project start date is Monday 10 January 2022.
1b. Compile a detailed network diagram and Gantt chart for the Arena construction phase (phase 3). You should allow in your programme for a two week shutdown of construction activity over the year-end holiday period.
1c. Identify the critical path for the construction phase.
1d. Re-present key data in Table 3 to show task durations using Eli Goldratt’s Critical Chain approach. Show also the safety buffer for the phase as a whole. Determine how buffer time should be used either at key milestones within the construction phase or only at the end clearly stating the reasons for your choice.
1e Present a simple Gantt chart to show the critical chain approach and the buffer distribution you have selected to use.
20 marks
Assignment Task Two Budgets and Cost Planning
2a. Using the data in the scenario, prepare a fully itemised cost plan for the project to include the provision of contingencies.
2b. Determine a basis for the provision of contingency within the cost plan (for example, adopting a flat rate for the entire project or risk-related rates for different elements or phases). Make a clear recommendation, stating your reasoning.
10 marks
Assignment Task Three Project Appraisal
3a. Using the budget you prepared in task two with the income streams provided in the scenario, prepare an itemised cash flow for the project for the period 2022 to 2029 inclusive. You should consider the payment profiles for both the remediation phase (phase 2) and the main arena construction phases (phases 3 and 4). You will also need to include an estimate for the revenue receipt in Q4 2024, stating your reasoning for the figure you have chosen.
3b. Using the cash flow data, prepare an initial project appraisal and identify the Payback Period; Return on Capital (RoC); and Net Present Value of the project to support a business case for presentation to the client’s Board. Use a discount rate of 4% per annum.
3c. State any assumptions made and the commercial implications of the results presented including an accept / reject recommendation for the project as a whole
15 marks
Assignment Task Four Resource Management
As the arena construction phase nears completion in Q4 2023, the professional team have re-focussed attention on the logistics and management of phase 4 – the arena fit-out, concession areas and commissioning.
With the main contractor having left site, additional site management resources will be required to co-ordinate and control the fit-out works for each retail and food unit as well as specialist equipment to be installed in hospitality areas, the TV Studio and Media Centre.
It has been decided to recruit a number of assistant project managers to support the construction manager and safety manager plus another administration assistant.
The assistant project managers will cost £300 per day plus £100 per week expenses.
The projected breakdown structure and resource need is as follows:

4a. Prepare a resource budget for the assistant project managers and administration assistant (assume that no additional office accommodation is required).
4b. Develop a week-by-week resource histogram (column chart) showing the number of assistant project managers required.
4.c It would be desirable to limit the peak assistant project management resource to a maximum of three as the recruitment agency have expressed concern about their ability to source enough suitable candidates. Suggest how the programme might be revised to achieve this constraint and identify any consequences and the resource budget saving.
15 marks
Assignment Task Five Project Evaluation
The project director to whom you report fears that the main contractor’s schedule to construct the arena is too optimistic. Nevertheless, it is essential that the arena is complete by the end of 2023, so that there is sufficient time for the 6- month phase 4 fit out and commissioning and the 3-month ‘soft launch’ phase.
You and your project assistant have looked at the contractor’s programme and, together, determined optimistic and pessimistic durations for each activity:

5a. Analyse this data and, using the PERT technique, assess the probability of the arena construction works being completed before the end of December 2023.
5b. What conclusions do you make as a result of your findings?
10 marks
Assignment Task Six Earned Value
A progress meeting with the arena main contractor was held in February 2023 and the consultant quantity surveyor tabled a financial report on the budget expended to date (to 31 January 2023):

Using the Earned Value approach determine the following:
6a. Calculate the estimated cost of the arena construction at completion.
6b. Calculate the estimated total duration of the arena construction and identify the estimated completion date.
6c. Comment upon the results.

Assignment Task Seven Project Monitoring and Reporting
The main contractor’s progress report, presented at the February meeting identified progress made as follows:
Analyse this information with respect to the project plan you prepared in response to task one and prepare a “traffic light” progress report indicating the status of each task on the following basis:
Red Stage in progress falling more than 5% behind plan
Amber Stage in progress (broadly in line with plan) or not yet started
Green Stage completed or at least 5% ahead of plan
7a. What conclusions do you draw?