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Over the years, E has had a number of business successes in the building trade and property development. Her latest venture is to build a hotel in YX town. E has already gained the financial backing, identified a suitable site, had an architect draw up plans and received planning permission. She wants the construction work on the hotel to begin without delay.
E has appointed P to be the project manager on the basis of his impressive record of managing successful construction projects. Though, conflicts are already emerging as E is interfering in the management of the project. She is frustrated by the time P says he needs for the project planning phase, and is irritated by his insistence on formalising the project management process. E is putting pressure on P to cut corners in the first stages of the project, and to get started on the construction of the hotel.
Explain the contribution that different project management tools and techniques could make to help P in planning the hotel project.
There is a range of dissimilar tools and techniques that P could use to help him in planning the hotel project. For example:
Work Breakdown Structure. This method is a critical part of project planning containing an analysis of the work required to complete the hotel project. The activities in the project are broken down into manageable components, referred to as work packages. The process explains the activities that must be carried out for every work package. Each work package will have explained responsibilities and deliverables for the hotel project.
Net Present Value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflow and outflow to the
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what is project valuation?
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