mot Why would this be useful information? How could Nicolette and her task force use the WBS to generate cost estimates for the tourna. to help her develop a WBS for the 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 documents for planning the project work. This case focuses on illustrating the technique for preparing Project Scope Statement and WBS 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 recommendations. A WBS specimen based on the case details and conforming to the guidelines given 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. 194 Project Management and pr computer computers of the gam effect on the from the b carried out phase-10 would be Permati At the project (lik land and projections five years net cash ne overhanging above, was surrounded by plush chairs adequate in number to seat at least 20 per The centre mahogany table spotlessly polished and with a beautiful si candles chance But at the table now were only five people. At the head of the table sat Soli Jamashedjithe the table was a young man in his early thirties with rimless glasses Padmanabhan Iyer, or Pads patriarch and founder of the Coronation Hotels chain. In a side chair, slightly drawn away Paddy had under his command Strategic Planning Group, a crack core team of 10 brillos addressed by most people in the organization. He was one of the top graduates of T. Ahmedabad, where he had studied after his basic degree in computer science at IIT-Delhi. 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 at new location Other three senior officers at the table were Saurav Chakraborti (Director - Marketing). Satu Singh (Executive Director - Operations) and Manish Shah (Director - Finance). The principal agenda for the meeting was taking the decision on the future expansion plans of the Coronation Hotels. After the early pleasantries exchange, Saurav 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 tourists used to limit their itinerary to Delhi, Agra and Taj Mahal, some metropolitan cities (Mumbai Banglore, Mysore), cave sculptures of Khajuraho or Ajanta-Ellora, tiger sanctuaries of Bandhavgarh or Kanha forest and similar well-trodden tourist circuits. However, recently a trend was noticed that an increasing part of these tourists wanted to go for out of the way or unusual destinations. One such cluster of locations could be in the northern Karanatak region - Badami (the capital of the Chalukya dynasty). Bijapur (famous for Chand Bibi who fought emperor Akabar), Vijayanagar Dynasty's Hampi and even Banglore-Mysore nearby." Saurav spread out a small map of India and pointed out, Herehere is Badami - now a smal sleeping urban town in North Karnataka, but once the capital of the mighty Chalukya Dynasty king Pulkeshi-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 friendly 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 well- 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 or Badami; so it may be worth a detailed study". -OK: fellows, looks like a good starting point". Jamshedji concluded and then he looked Paddy and said, "Paddy, start working and get all the details and have all the dope on the prop for us to take the decision in the next operating committee meeting six weeks from nown discussion in the meeting shifted to other subjects. executives -accountants, engineers, and market research persons The team collected the neces? Jamashe making. A underlying agree to go a good pro pause of h Project Cha to harp on Everybody what he sai Attachm Satpal S Pulkeshi In the Corona manageme he got grad Sabarimalt There was numbers cl that there some latent this and de Internation "Ram, Pulkeshi in study data set of file Scope State appears to get lost am of of end data and prepared the base case feasibility report. They also carried out risk analysis and ran some Defining the Project 195 computer simulation based on it (Jamashedji 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 Pulkeshi 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 Jamashedji added, "No, I am serious what he said makes sense". Attachment 1 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 Sabaramati, 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 basie 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 aware of this and decided to exploit the situation for effective management of project Hotel Pulkeshi International Tor "Ram, we are happy to select you to be the project manager for our newest hotel project, Hotel Pulkeshi 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 196 Project Management in bricks and mortars and not just paper projects. But I also want to show that you could be systematic 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 is cornerstone in the modern project planning. Let us discuss it on Monday two weeks from now 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 see people (one architect and landscape designer, two civil engineers, one mechanical/utility engine, one electrical engineer, one accounts manager, one interior designer). He prepared the overall projes management plan and an impressive WBS using the guidelines given in the Practice Standard for Work Breakdown Structure published by the Project Management Institute (PMI), U.S.A. The Coronation Hotels Group proposes to set up a new hotel in the vicinity of Badami, kam The facilities shall conform to the construction, layout, furnishing, and operating standa 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 Assoc To set up a new 100-rooms capacity 5-star hotel in the vicinity of Badami, Karnataka 1. PROJECT OBJECTIVES The project objectives are: To take advantage of the niche group of foreign tourists to s Questions for Case Discussion The Project Scope Statement and Work Breakdown Structures (WBS) presented in the case based on PMBOK) Guide recommendations for preparing these documents. They provide goof templates as a starting point for developing these documents for other projects. Using these templates, prepare the Project Scope Statement and Work Breakdown Structure de the last project you worked on. Attachment PROJECT SCOPE STATEMENT (Hotel Pulkeshi International) State. The broad parameters of the scope of this project are given below: guidelines - How old Nicolette and her task force use the WBS to generate cost estimates for the tourna 10 help her develop a WBS for the tournament 194 Project Management and po computer of the game effect on the from the carried out phase - 10 would be internation Abstract project land and projections five years hn Jamasha making. A net cash end overhanging above, was surrounded by plush chairs adequate in number to seat at least 20 por the table was a young man in his early thirties with rimless classes Padmanabhan Iyer, or Paddy Ahmedabad, where he had studied after his basic degree in computer science at IIT Del in bricks and mortars and not just paper projects. But I also want to show that you could be At the some latent contempt for these hard-core engineering management of project Hotel Pulkeshi The Coronation Hotels Group proposes to set up a new hotel in the vicinity of Badami Kama State. The broad parts of the scope of this project are given below: to the construction, layout, furnishing, and operating standa "Ram, we are happy to select you to be the project market be pulled out another 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 Assor Hot Why would this be useful information! The centre mahogany table spotlessly polished and with a beautiful si candles Defining the Project 195 data and prepared the base case feasibility report. They also carried out risk analysis and ran some CASE 4.2 patriarch and founder of the Coronation Hotels chain. In a side chair, slightly drawn away computer simulation analytical tool, Monte Carlo Analysis was named so as an implied admission 196 Project Management addressed by most people in the organization. He was one of the top graduates of TM Hotel Pulkeshi International 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 used to lean a lot on him for business analysis using modern management analytical technique from the base case assumptions. They also studied the hotel capacity expansion in phases and systematic in your project planning as he himself could ever hope to be. Get the point? Start (Case Illustrating Development of Project Scope Statement particularly in connection with mergers and acquisitions or setting up hotels at new locatie 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 preparing a systematic Work Breakdown Structure (WBS) for the project. I understand that is and Work Breakdown Structure) Other three senior officers at the table were Saurav Chakraborti (Director - Marketing Set would be an attractive investment proposition. Paddy christened cornerstone in the modern project planning. Let us discuss it on Monday two weeks from now The e principal Deneto Operations and Manish Shah (Director Finance International after the famous Chalukya dynasty emperor. then he looked at the calendar and added, "December 19,3 PM; fine? Anything you want intera for the meeting was taking the decision on the future expansion plans of the Coronation Hotels After the early pleasantries exchange. Saurav started presenting project Hotel Pulkeshi of resources just let me know and you would have them" findings He pointed out that, "In view of the increasing emphasis on the development of the 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 Ram Prasad came back to his room and worked day and night with his core project team of see Project Scope Statement and Work Breakdown Structure (WBS) are the basic project documents for tourism industry, the flow of the foreigners and NRIs visiting India in the next five years land and site development cost, construction and furnishing costs, etc.) and the financial people (one architect and landscape designer, two civil engineers, one mechanical/utility engine planning the project work. This case focuses on illestrating the technique for preparing Project Scope expected to increase by 12-15% per annum between 2005-06 and 2010-11 by the Governmental projections worked out by his team in cooperation with the finance group (projections of the next one electrical engineer, one accounts manager, one interior designer). He prepared the overall proje Statement and WBS for a construction project. The case includes description of the project initiation India as well as several independent economic survey institutions. Earlier, most foreign tourist five years likely operating results in terms of occupancy, operating cost and profitability and the processes and presents a specimen of the Project Scope Statement modeled on the PMBOK Guide used to limit their itinerary to Delhi, Agra and Taj Mahal, some metropolitan cities (Mumbai management plan and an impressive WBS using the guidelines given in the Practice Standard recommendations A WBS specimen based on the case details and conforming to the guidelines given net cash flows). Work Breakdown Structure published by the Project Management Institute (PMI), U.S.A. Banglore, Mysorella verslind similar well-trodden tourist circuits. However, recently a trend le the Practice Standard for Work Breakdown Structure published by PMI is also presented at the Ajanta-Ellora, tiger sanctuaries Jamashedji felt pleased with the way Paddy and his group worked out the data for decision- was noticed that an increasing part of these tourists wanted to go for out of the way or unusual making. After some discussions on the project assumptions and the working paper details destinations. One such cluster of locations could be in the northern Karanatak region - Badani underlying the summary, the committee gave a green signal for going ahead. "Then gentlemen, we CASE TEXT (the capital of the Chalukya dynasty). Bijapur (famous for Chand Bibi who fought empere agree to go ahead with Hotel Pulkeshi International project at Badami, right? Satpal, you pick out Project Cha Akabar), Vijayanagar Dynasty's Hampi and even Banglore-Mysore nearby." a good project manager for this project, and get him started working on the project". Then after a to harp on Saurav spread out a small map of India and pointed out, Here, here is Badami now a smal How would you describe a luxuriously furnished well-appointed conference room in sylvan Everybody pause of half a minute, he added, with a wink in his eye. "But before that, Paddy, you prepare the Questions for Case Discussion sleeping urban town in North Karnataka, but once the capital of the mighty Chalukya Dynasty surroundings, where you can look out of the French window and see a small man-made lake with what he sai Project Charter and Project Scope Statement like that bald professor of project management used king Pulkeshi-II, who stopped the emperor Harsh Vardhan's mighty and victorious army on the Attachm to harp on in the 1-day project management seminar you insisted on me to attend last month". some lotus in full bloom and a black swan majestically floating? Most people would be tempted to The Project Scope Statement and Work Breakdown Structures (WBS) presented in the case a banks of river Narmada... and.. Before he could complete, Manish stopped him with a friendly use the clich "a Five-Star Facility". But in this case it would be an understatement; it was the Satpal S Everybody thought it was a joke and started to smile, when Jamashedji added, "No, I am serious based on PMBOK) Guide recommendations for preparing these documents. They provide good banter, "Yes, yes Saurav; we got your point. You suggest that we set up a new hotel nearby? Wha Head Office Conference Room of the famous Coronation Hotels chain - "Seven Star Facility Pulkeshi la what he said makes sense". capacity? What investment? Any preliminary market survey of likely occupancy figures templates as a starting point for developing these documents for other projects, the Corona Attachment 1 shows the Project Scope Statement prepared by Paddy's strategic planning group Using these templates, prepare the Project Scope Statement and Work Breakdown Structurele would be a more appropriate description Apparently, this location would be of interest to the history buffs: so, are there any other wel managemer Satpal Singh zeroed in on Ram Prasad as the project manager to be appointed for Hotel known or interesting historical sites nearby? How far and convenient is it to visit Badami from the he got Pulkeshi International. Ram Prasad was also an IIT Kanpur trained civil engineer, who had joined the last project you worked on. nearest airport?" got grad the Coronation Hotels group seven years back. He had an impressive track record of efficient Saurav looked back disapprovingly but quietly continued. "Patience, Manish! We have done the There was management of civil construction projects before he joined the Coronation Group In Coronation, preliminary market survey, investment and feasibility analysis in our group and the site looks very he got gradually involved with the entire gamut of the hotel projects and the last project, Hotel promising. Mr. Jamashedji is aware of all this Now is the time to do some hard nose assessment Sabaramati, which was managed under his independent command, carned him good reputation. and even some detailed planning if we generally agree on the proposal". There was some unspoken rivalry between Ram Prasad and Paddy. Ram Prasad looked upon PROJECT SCOPE STATEMENT 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 numbers churning office engineers as something amiss of their basic profession. Paddy thought (Hotel Pulkeshi International) that the real business of business was after all the bottom line of the entire operations Paddy had Badami; so it may be worth a detailed study" people. Satpal Singh was somewhat aware of -OK: fellows looks like a good starting point". Jamshedji concluded and then he looked Paddy and said, " Paddy, start working and get all the details and have all the dope on the proper this and decided to exploit the situation for International for us to take the decision in the next operating committee meeting six weeks from now Paddy had under his command Strategic Planning Group, a crack core team of 10 brilliant Pulkeshi International", Satpal told him, and "Here are executives-accountants, engineers, and market research persons The team collected the necesar study data for the project to give you grounding in the overall strategy." set of file papers from his folder and said, "These papers contain the Project Charter and Project guidelines 1. PROJECT OBJECTIVES underlying agree to go a good pro pause of his Sabaramar numbers cl Attachment that the rea some latent this and de Internation "Ram, Pulkeshi In study data set of file Scope Stat appears to Bet lost am for our newest hotel project, Hotel and project feasibility The facilities shall 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 project objectives are: To set up a new 100-rooms capacity 5-star hotel in the vicinity of Badami, Karnataka To take advantage of the niche group of foreign tourists to s