Project Management

Impressions – a Make-Over Centre

Abhishek Kumar Kushwaha (11102161)

Aditi Kansal (11102162)

Harshvardhan Singh (11102218)

Nishil Bisht (11102259)

Rohan Pathak (11102380)

Sagar Saxena (11102314)1

1. Project Outline

At this juncture of the 21st century, the culture and lifestyle in metropolitan cities is greatly

reflected by the fact that presentation and beauty is the virtue in demand for every age group, on

the personal as well as professional front. The huge market for beauty products and the growing

demand for an elite fashion of living, portray a great potential for business in this industry. While

beauty salons, designer outlets and health and fitness knowledge is freely available, there is no

such facility yet that fulfills all these requirements of a customer altogether.

Considering this proposition, Reflections Pvt. Ltd, the cosmetic giant, has decided to launch a

novel venture in Delhi/NCR region, Impressions, a complete makeover hub, which caters to all

these demands of a customer under one roof. The centre would consist of a unisex beauty salon,

hair styling by experts, digital imaging facility, complete outfit designing by a noted dress-

designer, consulting dieticians and skin experts. The objective is to launch this project within a

time frame of 60 days and the budget allocated for the project is Rs 20, 00,000. A project team,

consisting of 6 members, including a project manager, would be constituted. Each team member

would be assigned a functional department of the project, for which, he would be the sole in-

charge and who would, in turn, report to the project manager. It would be the role of the project

manager to collaborate with all the functional heads harmoniously and ensure smooth

functioning of the project.

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2. Project Objective

The main objective of Reflections Pvt. Ltd. is to establish a makeover center, Impressions, in

Delhi/NCR region which will put together the different beauty sectors at one place. The center

will provide digital imaging facility that would help the clients to visualize their new and

improvised look beforehand. It will comprise of a unisex beauty salon dealing with

cosmetic treatments as well as hair styling by experts. The services of a well known dress-

designer, consulting dieticians and skin experts will be hired.

The project manager has been provided a rented area of 1600 sq ft by the company and his job to

realize the goal of establishment of this center. The time frame given to him is 60 days, with

optimal usage of resources and keeping the budget constraint of Rs 20, 00,000 in mind.

2.1 Project Life Cycle

According to client specifications, the project manager defined a life-cycle of the project, after

consulting with the planning department of his project team.

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Slow beginning

Reflections Pvt. Ltd states the specifications of the project. A team is formulated, led by a project

manager. Departmental heads are assigned their responsibilities. A brain-storming process

among the team members helps to come up with a feasible plan to proceed with the project. No

on-field work will take place at this stage.

Buildup of size

This stage includes modeling, planning, estimation, resource acquisition and allocation. All the

basic requirements are taken care of and the project is ready to be implemented.

Peak

This is the most crucial and longest stage of the project when all major activities are in full

progress, including construction, electrical, plumbing, whitewash, furnishing and interior

activities of the centre. It covers organization control, leadership and decision making. Many

conflicts and unforeseen issues may arise which must be solved by the project manager. Also,

quality control is an important aspect at this stage.

Decline

The performance level of the employees decreases when the project nears completion. Quality

control is of prime importance and the project manger must ensure that his team works

efficiently even during the last stages of the project. A regular assessment by senior management

is carried out to check for any shortcomings in the project.

Termination

This is the wrapping up stage which includes review of process and outcomes. When the senior

management is satisfied with the final outcome of all departments and their requirement is met,

the project is said to be completed.

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1.2 Project Goal Trade-Offs

LIFE CYCLE STAGE

COST SCHEDULE PERFORMANCE

Slow Beginning 1 1 1

Buildup 2 1 2

Main 2 1 1

Phase-out 3 2 1

[NOTE: 1= Most important 2= Important 3= Least important]

The given table illustrates the importance of cost, schedule and performance during the various

stages of the project. All three factors play a major role in the initial planning and designing of

the project. However, the significance of cost factor decreases as the project progresses further.

Sticking to the schedule is very important throughout the life of the project in order to meet the

client’s demands on time. The performance level defines the quality of work done and is of

crucial during the ‘do-it’ stage, where the project is at its peak.

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3. Project Planning

3.1 Project Team

Reflections Pvt. Ltd. will call for an Initial Launch Meeting to formulate a dynamic project

team and orient all the team members towards their goal of establishment of Impressions. The

services of a skilled and experienced project manager would be hired by the company. Seven

department heads will be appointed from within the company, in accordance with the

requirements of the project: Finance manager, Engineering manager, Quality control manager

and a Junior manager who is further in-charge of Inventory manager and a Legal advisor.

Fig: Flowchart Representing Project Team

Owner (Reflections Pvt. Ltd.): It plays a vital role in the investment and defining of project

objective. The senior management of this company also plays a role in approval after each major

activity so that the project manager can proceed ahead with the plan. Project manager keeps the

owner updated on the developments of the project.

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Project manager: He is the head of the project. All the department heads directly report to him.

In turn, his job is to satisfy his client (Reflections Pvt. Ltd.) and incorporate any changes that the

management asks for.

Engineering manager: Accountable for construction, electrical, plumbing, furnishing and

interiors of the centre.

Finance manager: Deal with the overall financial transactions of the project.

Legal advisor: Takes care of the legal formalities of the project.

Inventory manager: Maintenance and monitoring of the purchase and storage of the inventory

in the procurement department.

Quality Control manager: Conducts regular quality checks and control after accomplishment

of each activity. He will monitor and ensure that the quality of work is up to the defined

standards.

In this manner, an initial plan is laid out keeping in mind the technical scope of the project. The

basic areas of responsibilities are defined and some tentative overall schedules and budgets are

spelled out.

After the initial launch meeting, a composite plan is made in which the responsibilities of each

department are clearly chalked out and discussed with the corresponding department heads. Each

department head gives the estimated budget, schedules and description of the sub tasks. After the

composite plan is approved by the project manager and senior management, the master plan is

established. A post planning review is held to ensure that all the necessary elements of the

project plan have been properly developed and communicated to the concerned departments.

3.2 Work Break Down Structure

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The work break down structure highlights the sequential flow of activities being carried out to

achieve the prime objective of the project.

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A detailed description of the activities being carried out during the life of project

1.) ESTABLISHMENT OF ‘ IMPRESSIONS’ : A MAKE-OVER CENTRE

1.1) CONSTRUCTION WORK AT THE CENTRE

1.1.1) Deal with Architect- An agreement will be signed by the project manager with an

experienced architect to take over the activity of construction work at the centre. This contract

will be finalized after the acceptance from the Senior Management of company who will provide

an area of 1600 sq feet for this project.

1.1.2) Architect designs framework: The architect will make a design according to the

necessities at the centre. This plan must be approved by the project manager followed by the

Senior Management of the company.

Fig: Design of the Makeover Center given by the Architect

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1.1.3) Tie-up with Contractor: The project manager will now fix a deal with a contractor for

the execution of his plan. This contractor along with his team will carry out the work of

construction at the centre.

1.1.4) Purchase of building materials by Contractor: All raw materials as well as the

inventory required for the work to be done will be bought by the contractor. He will be paid

accordingly for the labor charges and cost of materials bought as well.

1.1.5) Build cubicles etc: The construction work at the centre will include making of cubicles

for each department at the centre, a store, washrooms, reception, office for senior management of

company, manager etc.

1.1.6) Quality check: As part of an evaluation and monitoring procedure, a quality check will

be conducted to check the quality of materials bought and even after completion of final work.

1.1.7) Final approval by Project Manger and Sr. management: This initial phase of the

project once over will be scrutinized by the project manager to check for any deviations,

followed by approval from the Senior Management of the company.

1.2) PLUMBING

1.2.1) Deal with Plumber: A contract will be fixed with a plumber to carry out the plumbing

activity at the centre inclusive of fitting of pipelines, taps, water connections etc.

1.2.2) Inventory purchase by Plumber: All the materials for this activity will be purchased by

the plumber as per the requirements. The quality will be approved by the QC manager and the

expenses incurred will be taken care of by the Finance manager.

1.2.3) Plumbing work commences: The plumbing work by the plumber and his co-workers

will begin as soon as the inventory required is purchased.

1.2.4) Quality check: A quality evaluation of the materials bought by the plumber and the work

the plumbing team carries out will be done to ensure meeting of the desired standards.

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1.2.5) Final approval by PM: Completion of this task will be finally given consent by the

project manager.

1.3) ELECTRICAL WORK

1.3.1) Deal with Electrician: A deal will be finalized with an electrician to carry out the entire

work of electrical wiring and fittings at the centre.

1.3.2) Inventory purchase by Electrician: All materials like wirings, switches etc. required

for this activity will be purchased by the electrician as per his needs.

1.3.3) Wiring work commences: The electrician along with his team of workers will start the

task of electrical wiring as well as all the fitting of appliances.

1.3.4) Purchase of electrical appliances: All materials including tube lights, fans, air

conditioners, geysers, RO system etc will be bought under the charge of Inventory Manager by

his team of workers.

1.3.5) Electrical fitting work: The electrical appliances will be installed and fixed by the team

of electrician and his co-workers as per the plan at all required places.

1.3.6) Quality check: The quality of work will be checked by the QC department in order to

meet the standards. The quality will be checked in two terms – materials bought by electrician as

well as the team of inventory manager and of the work done.

1.3.7) Final approval by PM: A final clearance will be given by the project manager after the

assessment of each and every activity carried out under this task of electrical fittings.

1.4) WHITEWASH

1.4.1) Deal with Painter: An agreement will be fixed with a painter to carry out the work of

whitewashing of walls and ceilings at the centre subsequent to the work of plumbing and

electrical fittings.11

1.4.2) Inventory purchase by Painter: The painter along with his team of workers will

purchase the list of items required as per his needs and get the quality approved by the Quality

Control department prior to the start of whitewashing.

1.4.3) Whitewash & painting commences: The work of whitewash will begin after the

approval of material bought by the QC department. This includes whitewash of ceiling and all

walls of the centre.

1.4.4) Quality check: The quality of work will be assessed at each stage of this task. This work

will be done under the charge of QC Manager.

1.4.5) Final approval by PM: The work once completed will be a given an approval by the

project manager after his full satisfaction.

1.5) FURNISHINGS AND INTERIORS

1.5.1) Deal with agent for Furnishing & Interior Designer: A deal will be fixed with an

agency that carries the work of furnishing and also with an interior designer to look after the

interiors of the centre and give a finishing touch to the structure.

1.5.2) Inventory purchase by agency: All furnishing requirements like sofa, chairs, tables,

desk etc will be bought or made by this agency under the vigilance of the QC department of the

project team.

1.5.3) Furnishing work commences: All the furniture as well as other items will be laid down

in specific cubicles as per the plan.

1.5.4) Start of interiors: Following the furnishing work, the interiors at the centre will be done

mainly to beautify the place and give it a final touch. This would include fitting up of an

aquarium in the customer’s lounge, putting paintings on wall, placing decorative items, plants

etc.

1.5.5) Quality check: The inspection of all activities carried for both these tasks will be

monitored to guarantee high standards in the work done.12

1.5.6) Final approval by PM: The work once accomplished will be given a clearance by the

project manager when done up to his expectations.

1.6) COLLABORATION

1.6.1) Collaborate with Dress Designer firm: The project team will collaborate with a dress

designer firm for the centre. This dress designer’s centre will be one department at the centre

catering to the needs of the clients and bring a change in their dressing sense.

1.6.2) Collaborate with consultants & specialists: This will include collaboration with a

Dietitian, Optician and a Skin specialist who would visit the centre on a regular basis and give

consultations to the clients in their respective fields of specialization.

1.6.3) Approval by PM and senior management: A final consent to these tie-ups will be given

by the project manager followed by the senior management of the company.

3.3 Responsibility Matrix

Responsibility matrix is a visual representation of the tasks assigned to different functional heads

in a project team. These individuals are responsible for any issues, major or minor, that crop up

during the course of this project. They are to be constantly updated with the progress of their

department. This concept clarifies the nature of the work of each individual in the project team,

according to their designations.

According to the nature of work in the project, there are some sub-functional levels under these

functional heads too. Since this project is inter-departmental, such a matrix makes it easier for

each member of the team to identify the task assigned to him. For each task, it is clearly

demarcated as to who holds the core responsibility, who must be contacted in case of any

changes in the preplanned estimates and who is responsible for the final approval of the task.

Generally, the final approval is of the project manager and the senior management.

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1. Actual Responsibility 4. May be consulted

2. General Supervision 5. Must be Notified

3. Must be consulted 6. Final approval

The responsibility matrix is as follows:

Responsibility/ Task

Dea

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+ p

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trici

an+

fur

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age

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rior

desi

gner

App

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ram

ewor

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Purc

hase

of i

nven

tory

Con

stru

ctio

n w

ork

at th

e ce

ntre

Plum

bing

+ El

ectri

cal f

ittin

gs+

Whi

tew

ash+

Furn

ishi

ng+

Inte

riors

Purc

hase

of e

lect

rical

app

lianc

es

Qua

lity

chec

k at

eve

ry st

age

Col

labo

ratio

n w

ith d

ress

des

igne

r firm

Col

labo

ratio

n w

ith c

onsu

ltant

s (di

etiti

an+

optic

ian+

skin

spec

ialis

t)

App

rova

l by

seni

or m

anag

emen

t

Project Manager 2 1 6 6 6 6 5 1 1 1

Finance Manager 4 3 1 4

Legal Advisor 3 3 3

Engineering Manager 3 3 5 1 1 2 2

Quality Control Manager 3 3 3 3 1 3

Inventory Manager 1 1 1

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4. Budgeting and Cost Estimation

4.1 Estimated Budget

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ACTIVITY COST ESTIMATED COST (Rs)

Construction work of centre

Rs 220 per sq ft * 1600 sq ft

3,52,000

Plumbing Rs 50,000 50,000

Electrical wiring & fitting

Rs 65,000 65,000

Whitewash Rs 10,000 10,000

Purchase of electrical inventoryAir conditioners (+2 spilt AC)

10 pcs. * Rs 16,000 per pc. + 2 pcs.* Rs 25,000 per pc.

2,00,000

Tube lights 20 pcs. * Rs 350 per pc.

6,500

Fans 16 pcs. * Rs 1,500 per pc.

22,000

RO water purifier 1 pcs.* Rs 10,000 per pc.

12,000

Geysers 2 pcs. *Rs 4,000 per pc.

8,000

Miscellaneous Rs 11, 000 10,000

Total of electrical inventory

2,58,500

Furnishing Rs 2,80,000 2,80,000

Interiors Rs 3,20,000 3,20,000

Transportation Rs 55,500 55,500

Project manager’s salary

Rs 5,00,000 5,00,000

Miscellaneous Rs 90,000 +Rs10,000 1,00,000

TOTAL 19,91,000

4.1 Cost Estimation Method

An iterative budgeting process was adopted, in which, both the senior management and their

subordinates were allowed to put forward their requirements and come to a mutual conclusion.

Initially, the senior management made use of their position and experience and decided to grant a

budget of Rs 19 lakhs for the project. The project manager, along with the functional heads,

made some rough estimates according to the requirements of his client and the necessities of the

project. They came up with a proposal that demanded a budget of Rs 21 lakhs. Discussions

between both parties ensued where the project manager tried to convince the senior management

of the company to increase their budget keeping in mind the realistic problems that are faced

while working and finally, the senior management relented and agreed to provide a total budget

of Rs 20 lakhs and the project manager agreed to cut some surplus costs that his team had

overestimated keeping an overly optimistic view. The process of iterative budgeting did consume

time but the ultimate outcome was up to satisfaction of both the parties.

The project manager then had detailed discussions with his subordinates. All the department

heads came up with their requirements and presented precise estimates of their respective

departments. Negotiations followed and eventually, the project manager allocated a sum of Rs

19.91 lakhs, with a specific amount allocated to each vertical of the project. The remaining Rs

9000 was kept as an extra amount as a part of the contingency plan. Therefore, the final cost of

the project did not go overboard and the project manager satisfactorily met his clients’ demands

in terms of cost.

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5. Scheduling

Scheduling is a technique to portray a network of activities and events’ sequential relationships

graphically among the activities in the project. Tasks that must precede or follow other tasks are

clearly identified by this technique.

A fixed time of 60 days was given to the project manager for the completion of the establishment

of Impressions-a makeover centre. The Project Manager estimated the time period of the project

to be 58 days by designing a PERT network diagram and identified the critical path from it.

Critical path on activity on node (AON) network signifies the activities/ tasks which, if delayed,

will delay the completion of the project.

5.1 Activity Description

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Activity A: Construction work at the centre

Activity B: Plumbing

Activity C: Electrical wiring

Activity D: Whitewash

Activity E: Purchase of electrical appliances

Activity F: Fitting of electrical appliances

Activity G: Furnishing

Activity H: Interiors

Activity I: Consultancy (architect, dress designer, specialists)

Activity J: Final approval from senior management

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5.2 Activity Diagram

ACTIVITY ON NODE (AON)

ACTIVITY

PRECEDENCE

TIME (DAYS)

A --- 20

B A 3

C B 3

D C 8

E A 2

F D, E 2

G F 20

H F 10

I --- 20

J G, H, I 2

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5.3 PERT/CPM ANALYSIS

5.4 Resource Allocation

Resource allocation is a way to assign the available resources in an economic way in a project. It

is the scheduling of activities and the resources required by those activities while taking into

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58 58

START A B C D

F

G

J

END

E

I

Critical Path: A-B-C-D-F-G-J

Critical Time: 58 Days

Estimated Time: 60 Days

consideration the resource availability, cost, time and performance. A project manager always

strives for excellence to achieve successful completion of the project.

The initial cost of Rs 20 lakhs and a time period of 60 days were given for the establishment of

‘Impressions’ – a Make-Over Centre. The project manager, after estimating the cost and

schedule would be completing the project in 58 days within the budget of Rs 19.91 lakhs. If a

scope creep occurs and the senior management demands for project completion in 55 days then

crashing will have to be done to reduce the time by 3 days. This reduction in time will lead to an

escalation in the estimated cost of the project by Rs 9000.

In response to this demand by the owners of the company, the project manager tries to find the

activities that could be crashed in the most economical manner. All activities on the critical path

are taken into consideration and the corresponding assessment is done to calculate the crash cost

per day. Using this data along with the concept of partial crashing, activity A and D are found as

the most appropriate activities to be crashed. Crashing of these two activities will help the project

team to carry out the project in the most economical way.

Hence, the overall effect of crashing on the establishment of the make-over centre would lead to

the completion of the project within the limits of the budget and time constraints provided by the

company.

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5.5 Concept of Crashing

CRASHING OF ACTIVITIES

Activity Normal Time (Days)

Crash Time (Days)

Normal Cost (Rs)

Crash Cost (Rs)

Partial crashing allowed

Crash Cost per Day (Rs)

Construction work of structure

20 18 3,58,000 3,60,000 Yes 4,000

Plumbing3 3 50,000 50,000 No ---

Electrical wiring and fitting

3 3 65,000 65,000 No ---

Whitewash8 7 10,000 11,000 Yes 1000

Purchase of electrical inventory

2 2 2,58,500 2,58,500 No ---

Furnishing20 20 2,80,000 2,80,000 No ---

Interiors10 10 3,20,000 3,20,000 No ---

Total incremental cost = Rs (4000*2) + Rs 1000 = Rs 9000

Total cost of project before crashing: Rs 19, 91,000

Total cost of project after crashing: Rs 20, 00,000

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6. Project Monitoring And Control

A project management plan is incomplete without the aspect of project control. This is mainly

because in the absence of a continuous monitoring and control process, the chance of project

failure increases due to unnoticed deviations. It is rightly said “Earlier a problem is disclosed; the

easier it is to manage” as when project problems are hidden from the project manager by his

team members they often grow to the point where they become difficult to be defended or

handled.

In reference to this, three types of project control mechanisms have been devised namely- Post

Control, Go/ No-Go control and Cybernetics control. In the project of “Establishment of

‘Impressions’ – a Make-Over Centre”, the ‘Go/No-Go Control’ technique is applied.

Go/ No-Go control simply refers to an opportunity to decide whether to or not to proceed after

each and every milestone event. This type of measurement tells the reviewer if the object’s

dimensions are within the set limits or whether there are deviations that need a consideration.

This monitoring method helps the project manager as well as the senior management to decide

whether they should bring a change, continue with the planned processes or bring about a

termination of an activity or the entire project subjected to the severity of the deviation. This

decision is a major landmark at every stage as it indicates a transition from the planning to the

phase of accomplishment. The advantage of this mechanism is that it is applicable to every

aspect of the project and the milestone events that are the key events which would help in

controlling the ongoing activities. Hence, we can say this technique is a form of a test to see that

if some specific precondition has been met. Based on this, if the risk condition is absent, a green

signal of ‘go’ is given whereas in presence of a risk condition a ‘no-go’ decision is made and the

corresponding risk response plan is implemented.

The work breakdown structure of our project indicates that a continuous monitoring and control

mechanism is being applied. There exists a quality check after each and every activity that

ensures that each activity is done to its perfection and if it all any deviations arise; a proper risk

response plan is implemented. The charge of this will be under the Quality Control manager who

will devise all risk response plans and make a decision whether to go/ no-go in every condition

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along with the project manager and the senior management. This decision will be based on

certain parameters designed by the QC manager that will put to test the gravity of deviation and

their effect on the three basic elements- time, cost and performance. Hence, the entire team

makes a decision that with the existing deviations whether the gates for the next activity must be

opened or not.

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7. Conclusion

Reflections Pvt Ltd. allocated a budget of Rs 20 lakhs for the establishment of Impressions - a

makeover centre, to be completed within a time frame of 60 days. According to the requirements

of the senior management, the project manager formulated a skilled project team. With the

assistance of his team members, the project manager designed the entire project plan and

assigned the respective responsibilities among the functional heads. His estimations projected

that the project would take 58 days for completion, with a predicted budget of Rs 19.91 lakhs.

This amount included all possible expenditure on the construction material, as well as a

miscellaneous amount of Rs 1 lakh, in case of underestimation. Even after including all possible

costs, the project manager was left with a sum of Rs 9000, which he kept aside as a part of

contingency plan.

In a scenario where the senior management decides to accelerate the process and shortens the

duration of the project to 55 days, an escalation in cost is seen. Two activities were crashed by 3

days and the total crashing cost was expected to be Rs 9000. The total cost incurred then

summed up to be Rs 20 lakh, which is the exact amount which was offered initially by the

management. Therefore, it is safe to assume that under no circumstances does the project exceed

its allotted budget.

The performance aspect of the project is overlooked by the quality control department and there

is a continuous monitoring at each stage of the project. If at any point, the actual figures do not

match the predicted estimations or if there is a serious glitch somewhere in any process, the

project manager decides whether to go ahead with the outcome or re-do the whole thing. Quality

perspective is not to be compromised at any stage.

A successful project is one which strikes the right balance between the three pillars of

performance, cost and time. The present projections indicate that all these aspects have been

suitably addressed and the project is ready to progress to the implementation stage.

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