PM Summative

8/8/2019 PM Summative

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PROJECT MANAGEMENT

Anonymous code: Z0910138

MBA Full Time

Word Count: 3995

Date: 21st June 2010


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PROJECT MANAGEMENT Z0910138

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Sl. No. Cont

nts P g

No.

1. Int odu tion 3

2. 4

3. 5

4. 5

5. 7

6. 8

7. 9

8. 9

9. 9

10. 10

11. 11

12. 12

13. 13

14. 14

15. 14

16. 15

17. 15

18. 16

19. 17

20. Con

lusion 18

21. R

f

n

s 19


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3

Int odu tion:

Orissa Drug House (ODH) is a leading chemist retailer in India. It serves to the retail customers and

supplies medicines, health care equipments & accessories to institutions & dispensaries. In order to

get a contract to supply to one of the government dispensaries, one of the requirements was that

the suppliers store should be within the one mile radius of the dispensary. So the beneficiaries

would have ease of access to the services. ODH was interested in supplying to this large dispensary,

which was under the banner of Central Government Health Scheme (CGHS). However , none of

ODHs existing stores were within the 1mile radius of the dispensary and the authorities allowed a

time of 80days to open a store as per the regulations. So the management decided to open a new

store in order to get the contract. The project was named as Project Kalinga, by the former name

of the state Orissa, where the store is located.

This paper presents the scope and planning of the project of opening of the new store . A wide

range of tasks such as due diligence, site selection, interior designing, invento ry planning, staffrecruitment & training and promotions have been performed for the completion ofProject Kalinga.

A CD containing the Gantt chat, network diagram & resource graphs has been attached to the

paper. Further the paper discusses and evaluates the success criteria of projects in general and for

Project Kalinga. It concludes with discussions on different factors those have influenced the

outcome of the Project Kalinga.


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P oj

ts

op

:

As per PMBOK definition the project scope of the Project Kalinga is all the required work that must

be done in order to open the new store with the specified features and functions.

Vision andobj

tiv

:

In past few years ODH had been growing organically and was looking for further scopes for

expansion. Institutional sales revenue had been growing steadily and was around 46% of total

revenue. The government contract discussed earlier would increase ODHs institutional sales

revenue by around 50%. For its expansion ODH management had short listed few store locations.

However, the requirement to get the contract drove ODH management to choose the site. It was

not that ODH was only interested to supply pharmaceutical products to the government dispensary

from this proposed store, but it was also looking forward to capturing a share of retail business in

that territory. The scope of business with government ensured ODH that the contract will lead to a

positive cash flow for the store from the very beginning, and it doe s not need to depend on retail

sales immediately. Though retail pharmacy industry was growing rapidly, attracting customers to a

new store takes time, patience and perseverance to gain consumer confidence. However, ODH had

the vision to become the leading pharmacy retailer in that territory.

The office of CGHS allowed 80-day time to open the store within one mile radius of the dispensary.

The store should be ready to serve the dispensary beneficiary on time, else ODH will be sued for

breach of contract and will forfeit the earnest money deposited during the biding process. For ODH

completion of the project on time was crucial. If the project were not completed on time, its impact

would have been very severe as ODH would not be able to bid for any governme nt contracts for

five years. And as discussed earlier institutional sales forms a major share in ODHs revenue. So the

project was crucial for ODHs long term strategy. The life cycle of the whole project was eighty days.

Stakeholder anal sis:

The key stakeholders of this project who ha d got some requirements, influence, expectations &

interest in this the project we re (1) ODH management (2) CGHS & CGHS beneficiaries (3) Retail

customers (4) Existing and future employees (5) competitor stores in that locality (6) regulatory

bodies (VAT, Drug & Health dept) (7) Project team.

ODH management expected to accomplish the project on time with in the budget to avoid any

penalties. Further it looked forward to achieve the quality fully so that it c ould serve the institutinal

clients and retail consumers satisfactorily. The biding condition s of CGHS required the store to be

ready on time with adequate level of invenory, so that its beneficiaries would not face any

difficulties in getting the prescription drugs on time from the authorised supplier.


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Retail consumers in that region were next key stakeholders of this project. For them another retail

store brought more options, better availability of drugs and competitive price. They expect ed that

the new store would maintain all variety of drugs they consume to an optimum level, sell the drugs

at a competitive price, free home delivery, counselling by pharmacists and other value added

services such as blood pressure, weight and blood sugar measurement.

The opening of the store was against the interest of other pharmacy stores in that region. Because

they understand that ODH has got better operational scope and financial capabilities to serve the

retail customers and drive some of their customers away from them. However they accept the fact

that its an open market and they have to face comeptition from time to time. So following the foot

steps of ODH they decided to strengthen their services to maintain the ir sales revenue.

The new store brought more career opportunities and better compensation for existing employees

and also created new job opportunities. The same was true for the project manager and the team

as they were the full time employees of ODH. For other stakeholders such as carpenters, electrical

engineers and IT service providers and suppliers this an opportunity to be a part of expanding

business. Regulatory bodies such as the VAT and Drug & health department required that before

opening, the store should fulfil all the regulatory criteria such as storage conditions and dispens ing

methods. Their interest was limited to government regulations only.

Technicaldetails:

Using techniques and tools such as quality Function deploymeny and function analysis following

project specifications were finalised. Mid size store of 400 square feet carpet area, 25 00 square feet

of shelve area for inventory, four POS terminals, two full time pharmacists, four supporting staffs,proper cold starage conditions for drugs, adequate inventory level(Rs.20,00,000) to fulfil the needs

of CGHS & retail customers

Historicalinformation:

ODH has maintained all the documents related to vari ous activities and cost structre in opening of a

new store from previous store openings. Th ose documents provided necessary guideline for

development of WBS and estimation for time & budget. And also confirmed feasibility of the

Project Kalinga under the mentioned constraints and risks.


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Work breakdownstructure (WBS):

Using the historical information & technical specifications, the following WBS was designed to define all the

required elements of the project which were needed to be completed for the project.

Benefit & cost anal

sis:(Figures are in Indian Rupees.)

The cost ofProject Kalinga was approximately of Rs.1.1million. The cost includes all other expenses

except inventory, which was budgeted to be around Rs.2million. Institutinal sales revenues were

quite certain to be around Rs.12million with a profit of around Rs.0.8million. Although quite

uncertain about the retail sales, ODH expected a retail sales revenue of Rs.3million in the first year

with a profit of Rs.0.4million. Considering the above mentioned expected results the benefit to cost

ratio was 1.5. That is ODH would incure all the investments except for inventory within the first

year. So effectively it can be said that the payback period was one year and the return on

investment was 20%. Apart from the tangible benefits discussed, the intangible bene fits for ODH

were the store would provide a strong stepping stone to expand into a new region and the scope &

scale for future expansions.

Constraints:

As discussed earlier 80 days deadline was the major time constraint in this project. Further many of

the activities were to be performed in a sequence. E.g. Only after getting the regulatorypermissions the carpenter works can starts and which follows by painting and polishing. Then only

drugs can be shelved. Although some of the activities can be performed parallely, there are also

constraints in term of space to perfor m more activities in parallel with in the store. Effective project

planning helped mitigating these constraints with staying with in the budget and requirements.


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Risk assessment:

The major risk in this project wa s from schedule. If the project were not completed on time ODH

would incur heavy fine from the government and would forfeit the earnest money deposited (Rs.

2,00,000) for the bid and would be anounced disqualified from any governement biding process for

five years. Risks were accepted, avoided, mitigated, countered and planned through contingency to

finish the project on time. Risks we re also assigned to risk owners (project team members &

associates) who would monitor thresholds and triggers. The detailed risks and opportunities have

been discussed in the planning part of this report.

Project Deliverable:

The deliverable for this project was a well stocked retail pharmacy with all the specifications

mentioned in technical details with in eighty days.


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ProjectPlan:

The Project Kalinga was divided into four phases. At the end of each phase a detailed review was

scheduled to ensure project scope and the management was updated on the project performance

and deliverables. Recognising the time constrai nts in the project, Saturdays and Sundays were

made working days for project team and other project stakeholders. The planning process was

iterative and this presented plan was the final version of the plan developed throughout the project

lifecycle.

Projectteam:

The core team ofProject Kalinga consists of Project manager (PM), Assistant manager and One

Store assistant. In the Phase-3 three additional store assistants joined the project after their

recruitment & training in Phase-2. The project manager was given the authority and freedom to

choose the team members, in order to facilitate a highly cohesive work group. Additionally the

manager worked full time on the project and had full time supporting staff s to help expedite the

project.

Human resoruces for the project:

Position Number of people Availability Wage

Project Manager (PM) 125days/month

& 8hrs/dayRs75/hr

Assistant Manager (AM) 125days/month

& 8hrs/dayRs45/hr

Store Assistant (SA) 1+325days/month

& 8hrs/dayRs30/hr


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Costbudgetfor Project Kalinga:

ParticularsSpending

Itemised Total

Planning & Design Rs.35,000

Legal works Rs.4,000

Drugs license Rs.20,000

VAT Registration Rs.5,000

Interior designer charges Rs.6,000

Construction(Labour & materials) Rs.7,20,000

Carpenter works Rs.4,50,000

Electrical Installations Rs,60,000

Interior furnishing Rs.1,00,000

Painting & Polish works Rs.50,000

Air conditioning Rs.60,000

IT Rs,2,60,000

POS machines (4nos) Rs.1,60,000Server (1nos) Rs.60,000

Printer, UPS, Accessories Rs.20,000

Software & application Rs.20,000

Marketing Rs. 20,000

HumanResources Rs,1,10,000

Project team (Salary) Rs.90,000

Staff recruitment expenses Rs.10,000

Training expenses Rs.10,000

Total (Excluding inventory) Rs.11,45,000

Inventory Rs.20,00,000

Total Rs.31,45,000


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Phase-1:

The activites included in this phase were scope development, legal works, bank works, budgeting, site

finalisation, drug/health authoritys permission, VAT registration, store interior designing and layout

planning. The following table presents the definition of all the activities performed in phase-1.

Task name Activity definition

Scope development

Developing a detailed scope statement as a guide to determine what

works to be done to complete the project. A detailed WBS was developed

to identify the individual activities.

Legalpaper worksInclude all the legal/government/court paper works related to ownership

registration and power of attorney.

Bank worksOpening of a current account for the store. And application for an EDC

machine, so that customers can use their credit/debit cards for payments.

BudgetingPreparing a detailed budget for the project based on historical information

from previous store opening projects.

Site finalisation

The management had two options to choose from. Necessary due

diligence were performed with the site owners and a site was finalised.

And signing of a legal contract.

Druglicence

A licence is required from the Drug & Health Authority of India to open a

new retail pharmacy. All the paper works and regulatory works were

performed to acquire the drug licence.

VATregistration

To buy & sell goods in India one requires a VAT registration number from

department of Sales & Revenue. All the paper works were performed to

get a VAT registration number.

Store interior

designing & layout

planning

With the help of an interior designer internal design, layout and structure

were developed.


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Finalising contractorsIdentifying contractors for carpenter work, electrical work and IT

implementation. Then finalising the contracts.

Phase-1 Snapshot

Deliverables Completed legal papers, A current bank account, A valid drug licence, VAT

registration number & A detailed Interior plan

Cost Rs.35,000

Time 29days

People Project manager & Assistant manager.

Risk Getting the drug license and VAT registration include lots of bureaucracy and

could got extended to few weeks.

Resources Managements contacts in these government offices were helpful to

accelerate the processes.

Phase-2:

This was the longest phase in the project and all the crucial works were performed in this phase. The primary

activities in this phase included carpenter works, electrical engineering, marketing, IT systems and HR

recruitment & training. The following table contains the definition of all the individual activities carried in

phase-2.


Pesticide

treatment

Pesticide treatment of the premise to protect the premise from white -ants,

moths and other pests.

Procurement

planning

Procurement planning for carpenter work materials such as plywood boards,

wood, veneer, mica & adhesive etc.

Vendor soliciting

and contract

Obtaining quotations, bids, and proposals for the materials to be purchased

for the carpenter work.

Carpenter work Making process of shelves, racks, ceiling, showcase and displays etc

Pre-launch

marketing

campaign

Marketing campaign to create pre-launch awareness in the local community.

Electrical

engineering

Electrical wiring, voltage stabilisers, lighting & fittings and installation of

generator, cold storage facilities & air-conditioning etc


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Painting & polish

workPainting and polishing of wood works and walls.

ITplanning and

procurement

Procurement of POS machines, Server, Printers, Bar-codes scanners and other

IT accessories.

ITimplementationConfiguring the hardware and installing the retail management software on

the systems.

HR recruitment Advertisement, screening and final recruiting of five retail supporting staffs.

StafftrainingTraining of staffs on handling drugs, POS billing, customer service,

procurement system and other in-store activities.

Phase-2 Snapshot

Deliverables Well trained staffs, ready IT system to support all retail operations, interiors,

shelves and cold storage to store drugs, complete electrical engineering

system.

Cost Rs.11,00,000

Time 61days

People Project manager, Assistant manager and supporting staff.

Risk Availability of carpenter work materials and rainy season.

Resources Finance on time, carpenters, electrical engineers, IT engineers

Risks:The greatest risk in this phase was from rainy weather, because it would affect the work

progress in multiple ways. First, in this season there were probabilities of shortage of plywood and

glass materials due to supply chain interruptions. Second, dealers hold very limited amount of these

materials as limited space is available in warehouses to store products safely from water. Third,

some of the carpenter works were required to be performed outside so rain may slow down the

work progress. Finally, for painting and polishing work wet weather was un-conducive as the paints

would take longer time to set and the quality of polishing work would not be of adequate standard.

Contingency: The risk from un-availability of required materials could be mitigated t wo ways. First

option is to procure all the materials at a time from the beginning of carpenter work and store

them. However, there would be difficulties in storing all the materials at the work site. Second,

make contract with multiple suppliers so that the required materials can be procured on time. Next,

arrange large shades so that required carpenter works can be performed outside. In case of rainy

weather at the time of paining or polishing use paints and polishing materials which were suitable

for wet weathers. However, it would increase the cost budget allotted for paining and polishi ng

work.


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Phase-3:

In this phase the first activity was to get the store inspected by drug regulatory authorities. Once

the clearance was acquired, procurement and other works were progressed.


Inspectionby

drug regulators

Get the store premise inspected by drug regula tors for storage conditions and

acquire a no objection certificate.

Inventory

planning

Planning of the inventory requirements such as selecting produc ts and

defining lower & higher inventory level for products.

Supply chain

designing &

planning

Map the supply chain, select the suppliers, negotiate the trade discounts and

finalise logistics.

Order generation

Prepare the orders for inventory based on historical information and

forecasting so that the store can open with adequate stocks to serve the

customers and the dispensary.

Sourcing and

procurementCollect the drugs from suppliers and transport to store.

PlanogramDevelop a Planogram to shelve and display the products in the store for

maximum visibility and adequate accessibility.

Verification &

Shelving

Verify inward moving goods, print bar-codes on them and shelve them as per

the drug manufacturers instructions.

Data entry of

inwardgoods

Data entry of inward moving goods into retail management software system

so that inventory can be tracked effectively.

Phase-3 Snapshot

Deliverables No objection certificate from drug inspectors, a well stocked store

Cost Rs.20,00,000

Time 56daysPeople Project manager, Assistant manager and four supporting staffs.

Risk Not meeting regulatory standards.

Resources Finance

Risk:To get a no objection certificate from the drug authorities the store need ed to fulfil a long list

of criteria such as store temperature, shelf size, and light intensity etc. A slight mismatch in

requirements can deter the officials to issue a clearance certificate and could delay the process for


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a fortnight. As time was the biggest constraint in the project, any delays had high impact on overall

project. To mitigate this risk, before the inspection by drug authorities the store was inspected by

an independent private auditing firm to ensure fulfilment of all the regulatory criteria.

Phase-4:

This was the concluding phase of the Project Kalinga.The activities in this phase were closing the

vendor contracts by confirming invoices, purchase orders and payments. Then finalising the

overheads and closing the project accounts. The final step was to deliver the detailed report to

management along with proofs of receipts and payments of all the transactions along with

reflections on the project.


Inaugural ceremonyStore opening ceremony day. Retail sales and service to the dispensaries

started this date.

Settlementof

contracts

Settlement of all the work contracts such as carpenter work, electrical

engineering work, painting work and auditing work .

Finalising accountsVerification of all the invoices for material procurement and clearance of

all the payments.

Final report

preparation &

submission

Detail report on learned insights and reflections on the project. The

report included information on risk and mitigation strategies followed. A

folder containing all the receipts, invoices, vouchers, proof of work done

& account statements.

AuditingVerification of accounts by a non-project member to ensure transparency

in the expenditures.

Phase-4 Snapshot

Deliverables Project report

Cost Rs.9,900Time 6days

People Project manager, Assistant manager & Store assistants

Risk No risks, as it was an in-house reporting.

Resources An accountant to audit and verify the report s.


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CriticalPath:Activities such as inventory planning, supply chain designing, order generat ion,

sourcing and procurement, Planogram, inwards goods verification & shelving and data entry were

on critical path. Additional human resources were allotted to accelerate these activities. Three

additional store assistants devoted 100% of their time for these activities. However, because of

space and process constraints these activities wouldnt have been finished faster even by granting

further resources.


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Success criteria ofProjects:

Time, cost and scope are considered as the golden triangle of any project. Any change in any of the

three sides of the triangle will affect the required or expected quality of the project. Because any

change in scope will affect the completion time and cost, any change in budget will affect the scope

and time and any change in schedule will affect the cost and scope of the project. So as per thisproject management triangle, success of a project is completion of the project as per the scope on

time while remaining within the budget.

Research says project success criteria differ from project to project depending on the size,

uniqueness, complexity and cost of the project (Wateridge 1998 cited by Westerveld 2003). E.g. for

a large bridge construction project apart from general success criteria such as of cost, time and

resources, there are some more additional very important criteria such as environmental impact of

construction work, safety of workers and political & economic interest fulfilment. As per Baccarini

(1999) Liu & Walker (1998) defining success criteria of a project is a difficult and controversial task

(Khang 2008).

However, experts now express that success of a project is more than fulfilling the projects

schedule, budget and scope and considering success as fulfilment of these criteria only are

expressed as a narrow view. Van Aken defines success of a project as the satisfaction of all of its

stakeholders. Pinto and Mantel (1990) added elements such as relationship between the team &

parent organisation, perceived value & usefulness of the project and a performance measure of the

project & team.

Westerveld (2003) suggested a more detailed framework to define success criteria of a project,

named as project excellence model. As per the model, success criteria can be divided broadly into

six categories. (i) Project results (Budget,Schedule & Quality) (ii) Appreciation by the client (iii)

Appreciation by project personnel (iv) Appreciation by users (v) Appreciation by contracting

partners (vi) Appreciation by stakeholders.

Project result includes the original golden triangle of project goals. All projects have time, cost and

quality constraints as discussed earlier. Second, appreciation by the client refers to fulfilment of

project owners needs by meeting defined objective & quality thresholds and being profitable for


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the owner (Wateridge 1998). Further Kerzner (1992) suggests client appreciation should ensure that

there have been minimum changes to project scope and the project has not affected owners

organisational culture and operational workflow. (Westerveld 2003)

Third, appreciation by project personnel refers to project teams happiness during the project &

working condition, fulfilment of personal goals and satisfaction with the outcome of the project.

Fourth, appreciation by users refers to happiness of users during the project and then their

satisfaction with the outcome and fulfilment of needs once the pr oject ends (Wateridge 1998 &

Turner 1997 cited by Westerveld 2003).

Fifth, appreciation by contracting partners ensures that the contractors involved in the project

made a profit of the project (Wateridge 1998). And further they might have been benefited in the

form of learning and getting new projects. Last, appreciation by stakeholders confirms that parties

those are not involved directly in the project but had some influence over the project were happy

during the project and are also happy with the outcome. Further Turner (1997) suggests the project

must have satisfied the needs of these stakeholders. (Westerveld 2003)

Renier (1996) framework categorised the success criteria on a time scale. First, the pre-completion

success includes fulfilment of the internal project objectives such as schedule, budget and quality.

Second, the short term success refers benefit to the customers such as meeting functional

performance, technical specifications, customers needs and satisfaction. Third, medium t erm

refers to the direct contributions of the project such as immediate business success, enhancement

in revenue & profit and increase in market share. Last, long term success refers to satisfying future

opportunities such as creating new market, developing new technologies and adding new

capabilities and competencies.


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Success criteria ofPr

je

t

li

:

Wes e ve! " (2003# projec e $ ce ! ! e% ce mode! and Renier (1996 # frame & ork present two different

prospective of project s ' ccess( In this part,Proj) 0 1 2 a3 4

nga5

s' ccesscriteria have been presented

using these two frameworks (

Success criteria based on project excellence model

6 roject results The project should becompleted on time with in theset budget & Quality7

Appreciation by the

client

On timecompletion of project will ensure that ODH gets the government

contract.

Appreciation by

project personnel

The project team issatisfied with the work condition and happy with the

compensation offered.

Appreciation by

users

On opening of thestore, it should be able to fulfil the needs of the

government dispensary beneficiaries and retail customer.

Appreciation by

contractin8

partners

Thecontractorssuch ascarpenter, electrical and painting works aresatisfied

with thecontract and have made a decent profit from thecontract. Furtherit may help them get more works in future as thisstore would be a leading

store in that locale.

Appreciation by

stakeholders

The drug regulatory authoritiesshould besatisfied with thestorestructure

and shelving of goods.


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Success criteria basedonRenier (1996) framework

InternalProject

Objectives

(Pre-completion)

The project should be completed on time with in the set b udget & Quality.

BenefittoCustomer

(Shortterm)

It should meet the functional performance and technical requirements set

in project scope. It should be able to satisfy all the customer s needs andcustomers should be satisfy with the stores performance.

DirectContribution

(Medium term)

Ontime completion ensure s getting the government contract and thus will

increase revenue and profit. Further the store should help to increase

market share by attracting more retail customers.

Future Opportunity

(Longterm)The addition of new store would provide competitive advantage and create

opportunity for future expansions.


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Factors influenced the final outcome:

Westerveld (2003 9 project e @ cellence modelsuggests that the factors influencing the final outcome

of any project can be broadlycategorised into six organisational areas(i) Leadership & team (ii)

Policy&Strategy (iii) Stakeholder management (iv) Resources (v) Contracting (vi) Project

management.

Using this project excellence framework the factors those influenced the outcome ofProjA B C

D aE Fnga have been discussed.

Leadership & Team:

Successful project management in today G s businessenvironment is increasinglycomplex. Effective

management of the intricatepeople H side is the glue that holds together a project of anycalibreH

(Anderson 2010). PMBOK explains that a project manager isexpected to be the projects leader as

well. Heshould be able to establish the direction and strategy to achieve project vision and

objectives. Heshould haveskills to align, motivate and inspire hissubordinates to reach the goal.

In ProjI P Q R aS T

nga, the PM exhibited strategic leadership qualities to steer the project to the

completion. He had been very good at delegating the tasks to the right persons and monitoring the

activities regularly. He listened to the team critically and implemented worthwhilesuggestions. He

understood the team dynamicsvery well and played an inspiring & motivating role for the team to

get the best work performance out of them. During last few days as the deadlinecamecloser, the

team members worked up to 15hours aday to set up thestore on time.


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In the above performance impact vs. team effectiveness curve the team Project Kalinga has been

placed as a high performance team. Because of strong leadership there was excellent cohesion and

cooperation between the team members, which lead to the high performance of the team. Hay

groups research have found that good leadership can double a teams performance in comparison

to a teams performance in neutral or de-motivated environment. Further a 28% variance of project

success attributes to organisational climate and 70% of organisational climate attributes to

leadership. (Anderson 2010)

Further, all the construction works were contracted to individual contractors. At times there were

conflicts and issues related to coord ination between the contractors. However, the project

manager very strategically handled the situations and brought cooperation and coordination

between the contractors. This ensured timely delivery of project with minimal non -value adding

activities.

Managementpolicy & Strategy:

Belassi and Tukel (1996) suggests managements control and monitoring plays a critical role in

projects outcome. (Westerveld 2003) In Project Kalinga the management made the PM responsible

to play a dual role of project manager & project champion. He was empowered to perform all these

following activities as the project champion.

y Set benchmarks and periodically review Project Kalinga against the set benchmarks.y Modify the scope ofProject Kalinga based on the status.y Grant or dismiss required resources as per the modified scope.y

Monitoring the changes and guide to the successful execution of Project Kalinga.y Periodically performing risk assessment and eliminating the obstacles.y Ensure best practices to achieve the set quality standards.y Prioritising task and events in order to eliminate redundancies and bottlenecks.

All these empowerments allowed the PM to take quick decisions and timely accomplishment of

Project Kalinga .


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Stakeholder Management:Satisfaction of primary stake holders was one of the major factors for

the end result. Getting a drug licence and VAT registration number are a lengthy and complicated

process and include lots of bureaucracy and paper work. It generally takes 6-8 weeks to get all the

required works done. However managements contacts and influence in the respective offices were

helpful in accelerating the processes and paper works. Further as the store was suppose to serve to

government dispensaries, influence from the disp ensary authorities also helped in getting the

works done on time.

Further the support from the site owner was extremely helpful for completion of the project. He

provided key insights about the local resources which were utilised for the smooth execution of the

project. Additionally the pre -opening campaign created the customers awareness and some of

them were customer of existing stores. Their encouragement and support were also fruitful for

execution of the tasks.

Resources:

The two key resources time and money were used efficiently and effectively in this project.

Considering the time constraints in the project some of the tasks were performed during night

hours, which cost the project in terms of overtime payments. However diligent planning and

identification of right activities requiring extra resources led to optimum utilisation of resources

and ensured the success of the project.

Contracting:

The carpenter works, electrical engineering and polishing works were contracted to the best of the

class contractors. Their charges were comparatively higher than average market price. However,

the price paid was value for money as these contractors delivered a high quality work within a shortspan of time. Further they coordinated & cooper ate with the project team for smooth operations at

the project site.

Project management:

The success factors for effective project management are scheduling and planning (Morris and

Hough 1987), project administration efficiency ( Munns and Bjeirmi 1996), technical tasks,

monitoring and feedback (Pinto and Slevin 1988). (Westerveld 2003)

The PM exhibited effective project management skills for the completion ofProject Kalinga on time

within set budget and quality. He understood managements needs and succ essfully related tocustomers expectations. He was well versed with all the technical aspects involved in the project

starting from interior designing to IT implementation & training. He was able to execute Project

Kalinga without any errors and accomplished the project as per the scope and budget. His quick

decision making skills helped save time on critical junctions. His continuous monitoring and

valuable feedback helped the project team work optimally.


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Communications:The project managers spend eighty percent of their time communicating with the

project stakeholders (Anderson 2010). So, effective communication is a key factor in any project. In

Project Kalinga the communications were made very simple & effective. The team members were

required to abreast the project manager daily. The PM used to brief the management every week on

earned value, cost, milestone and variance. This allowed continuation of support from top management and

ensured success of the project.

Risk mitigationstrategy:From the past experience and historical reports a proper risk contingency

strategy was developed, which helped to mitigate the risks. As discussed in phase-2 rainy weather

was a risk for the supply of materials and paint works. And during the work progress there was a

shortage of required materials. To continue carpenter work the materials were procured from

other suppliers in adjacent cities. This increased the cost of material procurement. However the

carpenter work was continued un-interruptedly.

Auditing:Phase-3 drug regulatory inspection was crucial for on time completion of the project.

Failure to getting the no objection certificate would have delayed all the linked processes. Regular

third party auditing helped in meeting all the stringent regulatory requirements and getting the

drug licence on time.

Conclusion:

Project Kalinga was completed on time and as per the technical specification. However, due to

short supply of materials, some of the wood work materials were purchased at higher cost. This

increased the cost of carpenter works by 10%. Nevertheless, the extra cost paid was crucial for the

whole project. As late completion of the project woul d have cost ODH in excess of Rs. 2, 00,000 and

loss of government contract. The loss of government contract would have affected the scope and

objective of the project. Further the payback period would have increased by more than two years.

Considering all these factors the trade off of 10% cost increase in carpenter expenses was

justifiable. ODH received the government contract and the store is now a leading store in th at

province, serving hundreds of government beneficiaries and retail customers.


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PM Summative

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