mend Why would this be useful information! How Nicolette and her task force use the WBS to generate cost estimates for the tourna 10 help her develop a WBS for the Domo! CASE 4.2 Hotel Pulkeshi International (Case Illustrating Development of Project Scope Statement and Work Breakdown Structure) Abstract Project Scope Statement and Work Breakdown Structure ( WBS) are the basic project alocuments for Muroting the project work. This case focuses on illustrating the technique for preparing Project Scope Statement and WRS for a construction project. The case includes description of the project initiation processes and presents a specimen of the Project Scope Statement modeled on the PMBOK Guide commendations. A WBS specimen based on the case details and conforming to the guidelines ghen in the Practice Standard for Work Breakdown Structure published by PMI is also presented at the CASE TEXT How would you describe a luxuriously furnished well-appointed conference room in sylvan surroundings, where you can look out of the French window and see a small man-made lake with some lotus in full bloom and a black swan majestically floating? Most people would be tempted to use the clich "a Five-Star Facility". But in this case it would be an understatement: it was the Head Office Conference Room of the famous Coronation Hotels chain - "Seven Star Facility" would be a more appropriate description crocutives-accountants engineers and market research person. The team collected the 194 Fort Management and per computer computers of the gam effect on the from the b carried out phase-10 would be Premati At the project lik land and projections five years bet cash ne Jamashes making. A overhanging above, was surrounded by plush chairs adequate in number to seat at least 20 pool The centre mahogany table spotlessly polished and with a beautiful Sl candles and But at the table now were only five people. At the head of the table sat Soli Jamashed the patriarch and founder of the Coronation Hotels chain. In a side chair, slightly draw way Paddy had under his command Strategic Planning Group, a crack core team of 10 bin the table was a young man in his carly thirties with rimless glasses, Padmanabhan Iyer, or Pad addressed by most people in the organization. He was one of the top graduates of TV Ahmedabad, where he had studied after his basic degree in computer science at IT Delhi sy used to lean a lot on him for business analysis using modern management analytical technique particularly in connection with mergers and acquisitions or setting up hotels in new locis Other three senior officers at the table were Saura Chakraborti (Director Marketing. Sau Singh (Executive Director - Operations) and Manish Shah (Director Finance) The principal agenda for the meeting was taking the decision on the future expansion plats the Coronation Hotels After the carly pleasantries exchange. Stura started presenting findings He pointed out that, "In view of the increasing emphasis on the development of the tourism industry, the flow of the foreigners and NRIs visiting India in the next five years expected to increase by 12-15% per annum between 2005-06 and 2010-11 by the Government India as well as several independent economic survey institutions. Earlier, most foreign to used to limit their itinerary to Delhi, Agra and Taj Mahal, some metropolitan cities (Mum Banglore. Mysore). cave sculptures of Khajuraho or Ajanta-Ellora, tiger sanctuaries of Bandhavgarh or Kanha forest and similar well-trodden tourist circuits. However, recently and was noticed that an increasing part of these tourists wanted to go for out of the way or ano destinations. One such cluster of locations could be in the northern Karanatak region - Badan (the capital of the Chalukya dynasty), Bijapur (famous for Chand Bibi who fought empere Akabar), Vijayanagar Dynasty's Hampi and even Banglore-Mysore nearby Saurav spread out a small map of India and pointed out. Here, here is Badami - now as sleeping urban town in North Karnataka, but once the capital of the mighty Chalukya Dyna king Pulkesh-II, who stopped the emperor Harsh Vardhan's mighty and victorious army on the banks of river Narmada... and "Before he could complete, Manish stopped him with a friend banter, "Yes, yes Saurav, we got your point. You suggest that we set up a new hotel nearby? What capacity? What investment? Any preliminary market survey of likely occupancy figures Apparently, this location would be of interest to the history bulls so, are there any other wel known or interesting historical sites nearby? How far and convenient is it to visit Badami from the nearest airport Saurav looked back disapprovingly but quietly continued. "Patience, Manish! We have done the preliminary market survey, investment and feasibility analysis in our group and the site looks very promising. Mr. Jamashedji is aware of all this. Now is the time to do some hard nose assessment and even some detailed planning if we generally agree on the proposal". Satpal Singh chipped in, "Yes, we have also been receiving inquiries from our patrons Bangalore and Mysore hotels if they could go to and stay at one of our hotels in Bijapur Badami; so it may be worth a detailed study". -OK: fellows looks like a good starting point". Jamshedpi concluded and then he looked Paddy and said, "Paddy, start working and get all the details and have all the dope on the peop for us to take the decision in the next operating committee meeting six weeks from now the discussion in the meeting shifted to other subjects underlying agree to go a good pro pse of hi Project Chi to harp on Everybody what he sai Attachm Satpal S Pulkeshi In the Corona managemce he got grad Saharama There was numbers cl that there Some laten This and de Internation "Ram. Pulkeshin study data set of file Scope Stat appears to Betlostam CD data and prepared the use case feasibility report. They also carried out risk analysis and ran some Dating the Pret 195 computer simulation based on it Jamashedj always chided Paddy by remarking whether the computer simulation analytical tool, Monte Carlo Analysis was named so as an implied admission of the gambling nature of the analysis). Sensitivity Analysis was carried out for determining the effect on the profitability of the new venture if the real-life scenario in future turned out different from the base case assumptions. They also studied the hotel capacity expansion in phases and carried out the Decision Tree Analysis to arrive at the optimum hotel room capacity for the first phase 100 rooms. Paddy's team found that the new hotel location in the vicinity of Badami would be an attractive investment proposition. Paddy christened the project Hotel Pulkeshi International after the famous Chalukya dynasty emperor. At the next operating committee meeting, Paddy presented the brief technical details of the project likely optional locations, an architect's impressions of the hotel, general floor layouts, land and site development cost construction and furnishing costs, etc.) and the financial projections worked out by his team in cooperation with the finance group (projections of the next five years likely operating results in terms of occupancy, operating cost and profitability and the net cash flows). Jamashedji felt pleased with the way Paddy and his group worked out the data for decision- making. After some discussions on the project assumptions and the working paper details underlying the summary, the committee gave a green signal for going ahead. "Then gentlemen, we agree to go ahead with Hotel Pulkesh International project at Badami, right? Satpal. you pick out a good project manager for this project, and get him started working on the project" Then after a pause of half a minute, he added, with a wink in his eye. "But before that, Paddy, you prepare the Project Charter and Project Scope Statement like that bald professor of project management used to harp on in the 1-day project management seminar you insisted on me to attend last month Everybody thought it was a joke and started to smile, when Jamshedi added, "No, I am serious, what he said makes sense Attachment I shows the Project Scope Statement prepared by Paddy's strategic planning group Satpal Singh zeroed in on Ram Prasad as the project manager to be appointed for Hotel Pulkeshi International Ram Prasad was also an IIT-Kanpur trained civil engineer, who had joined the Coronation Hotels group seven years back. He had an impressive track record of efficient management of civil construction projects before he joined the Coronation Group In Coronation, he got gradually involved with the entire gamut of the hotel projects and the last project. Hotel Saharamari, which was managed under his independent command, carned him good reputation There was some unspoken rivalry between Ram Prasad and Paddy Ram Prasad looked upon numbers churning office engineers as something amiss of their basic profession. Paddy thought that the real business of business was after all the bottom line of the entire operations Paddy had some latent contempt for these hard-core engineering people. Satpal Singh was somewhat uware of this and decided to exploit the situation for effective management of project Hotel Pulkeshi International the N . "Ram, we are happy to select you to be the project manager for our newest hotel project, Hotel Pullesh International", Satpal told him, and "Here are the market research and project feasibility study data for the project to give you grounding in the overall strategy." Then he pulled out another set of file papers from his folder and said. "These papers contain the Project Charter and Project Scope Statement prepared by the Strategic Planning Group - your good friend Paddy Paddy appears to nurse the grouse that we engineers are not focused on the overall project objectives and get lost among the trees and miss the forest, I want you to show him what we actually accomplish The Coronation Hotels Group proposes to set up a new hotel in the vicinity of Badami, kama The facilities shall conform to the construction, layout, furnishing, and operating stand currently followed at all other Coronation Group locations and would permit the new facility classified as a Five Star Facility according to the International Hotel Management Ass To set up a new 10-rooms capacity 5-star hotel in the vicinity of Badami, Karnataka 196 Project Management in bricks and mortars and not just paper projects But I also want to show that you could be systematie in your project planning as he himself could ever hope to be Get the point? Start preparing a systematic Work Breakdown Structure (WBS) for the project. I understand that it cornerstone in the modern project planning. Let us discuss it on Monday two weeks from no then he looked at the calendar and added. - December 19, 3 PM; fine? Anything you want in term of resources just let me know and you would have them". Ram Prasad came back to his room and worked day and night with his core project team of se people (one architect and landscape designer, two civil engineers, one mechanical/utility engiten one electrical engineer, one accounts manager, one interior designer). He prepared the overall proje management plan and an impressive WBS using the guidelines given in the Practice Standard to Work Breakdown Structure published by the Project Management Institute (PMI). U.S.A. Questions for Case Discussion The Project Scope Statement and Work Breakdown Structures (WBS) presented in the case of based on PMBOK) Guide recommendations for preparing these documents. They provide goed templates as a starting point for developing these documents for other projects Using these templates prepare the Project Scope Statement and Work Breakdown Structure the last project you worked on. PROJECT SCOPE STATEMENT (Hotel Pulkeshi International) State. The broad parameters of the scope of this project are given below: 1. PROJECT OBJECTIVES The project objectives are: To take advantage of the niche group of foreign tourists to Attachment] guidelines