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Dec 11, 2021

Purpose of the Assignment.

This assignment is designed to give learners an opportunity to demonstrate a broad understanding of all the learning outcomes in the module. It provides the learners to demonstrate understanding of project management principles. They also have opportunity to show evidences of effective planning of human resources. Further, this will also provide opportunity to demonstrate how different project management techniques are used to meet the project objectives.


Alan, Joy, Shab and Sudjat are in partnership running a restaurant in Borehamwood, near London, for five years now. The business serves corporate customers from abroad and even though, the recession has not favoured that sector of business as expected, they made 2 million profit last year raising the partners capital base to 3 million. As part of their long term strategy to be a great player in the hospitality sector they have planned to build a 6 storey hotel with a swimming pool in Borehamwood to serve both the local community and business customers from abroad. They have already had a chat with their bank manager who is willing to give them a loan of 1.5 million pounds at an interest rate of 10% (a figure that they use as their discount rate) to finance the project.

The firm already have 26 staffs including the 4 owners who are all managers, receiving salaries based on the number of hours worked. The other departments are finance (4 staffs), Kitchen and cleaning (14), human resources (3staffs), operation managers (1 staff).
Some of the staff have heard from the grape vine that a new project would be undertaken sooner than later and have asked the project manager to explain what project management is, why the discipline has become so popular of late. Others are interested in the planning, implementation and the principles guiding the discipline. With no hesitation the project manager has promised to deliver seminars on these issues.

Just as they were about to start the project, Joy met her school mate (Django) who is a management consultant specialising in hotels. She discussed the proposed project with him. Django thought, it was worth investing in such a project but in his opinion, they would make more money, if they sell the hotel and swimming pool instead of holding on to it. His believe is that they should realise returns as soon as possible so to reinvest in other good opportunities.

Task 1

The cash flow estimated by the consultant for the project if it is to last for 5 years are as stated below:


Swimming pool

Year 0 (4m )

(1. 5m)













Joy has discussed this with the finance manager who has vehemently disagreed with the analysis of the Management consultant. According to the financial manager so many internal and external factors have been overlooked by the management accounting. For instance, the companys Information communication and technology systems has been improved recently to make it easy for customers to access their websites; their expenses on advertisement has increased by 2%, the brand has become popular nation-wide; tourism in the area is booming; the UK and European economies is stable and improving at the moment. Taxes are falling, all of which were not taken into consideration by the management consultant.

Assuming you are the operations manager,

1.1Describe the background and principlesof project management.
1.2 Appraise the viability of the investment in the hotel and swimming pool and develop a success and failure criteria using information provided in the case.
1.3 Explain the principles behind project management systems and procedures.
1.4 Explain the key elements involved in terminating projects and conducting post-project appraisals.

Task 2

AC 2.1 identify the most appropriate organizational structure, roles and responsibilities of participants of the above mentioned project (Hotel and swimming pool)
AC 2.2 Explain how the structure identified above would help you control and co-ordinate the project.
AC 2.3 Assess the leadership style and qualities required to manage the above project successfully.
AC 2. 4 Plan and specify human resources requirements for the proposed project.

Task 3

AC 3.1 Prepare a detailed project plan for the proposed project, clearly establishing each component in the effective organization of the project.
AC 3.2 Apply the appropriate project scheduling tools to plan the project activities so as to minimise the time and costs of the project.
AC 3.3 Analyse the methods used to measure project performance ( you may use this case for your analysis)
AC 3.4 Explain the change control procedure for evaluating your project at its completion.

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