PROJECT MANAGEMENT

Anonymous code: Z0910138

MBA Full Time

Word Count: 3995

Date: 21st June 2010

 PROJECT MANAGEMENT Z0910138

Sl. No. Contents Page No.

1. Introduction 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. Conclusion 18
21. References 19

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Introduction:

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 supplier’s 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
ODH’s 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, inventory planning, staff
recruitment & training and promotions have been performed for the completion of Project 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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Project scope:

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 and objective:

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 ODH’s 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 does 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 government contracts for
five years. And as discussed earlier institutional sales forms a major share in ODH’s revenue. So the
project was crucial for ODH’s long term strategy. The life cycle of the whole project was eighty days.

Stakeholder analysis:

The key stakeholders of this project who had got some requirements, influence, expectations &
interest in this the project were (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 could serve the institutinal
clients and retail consumers satisfactorily. The biding conditions 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 expected 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 their 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 dispensing
methods. Their interest was limited to government regulations only.

Technical details:

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, 2500 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

Historical information:

ODH has maintained all the documents related to various activities and cost structre in opening of a
new store from previous store openings. Those 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 breakdown structure (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 analysis: (Figures are in Indian Rupees.)

The cost of Project 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 benefits 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 regulatory permissions
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 perform 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 was 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 were 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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Project Plan:

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 constraints 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.

Project team:

The core team of Project 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 staffs to help expedite the
project.

Human resoruces for the project:

Position Number of people Availability Wage

25days/month
Project Manager (PM) 1 Rs75/hr
& 8hrs/day
25days/month
Assistant Manager (AM) 1 Rs45/hr
& 8hrs/day
25days/month
Store Assistant (SA) 1+3 Rs30/hr
& 8hrs/day

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Cost budget for Project Kalinga:

Spending
Particulars
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.1,60,000
Server (1nos) Rs.60,000
Printer, UPS, Accessories Rs.20,000
Software & application Rs.20,000
Marketing Rs. 20,000
Human Resources 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 s cope development, legal works, bank works, budgeting, site
finalisation, drug/health authority’s 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

Developing a detailed scope statement as a guide to determine what

Scope development works to be done to complete the project. A detailed WBS was developed
to identify the individual activities.

Include all the legal/government/court paper works related to ownership

Legal paper works
registration and power of attorney.

Opening of a current account for the store. And application for an EDC
Bank works
machine, so that customers can use their credit/debit cards for payments.

Preparing a detailed budget for the project based on historical information

Budgeting
from previous store opening projects.

The management had two options to choose from. Necessary due

Site finalisation diligence were performed with the site owners and a site was finalised.
And signing of a legal contract.

A licence is required from the Drug & Health Authority of India to open a
Drug licence new retail pharmacy. All the paper works and regulatory works were
performed to acquire the drug licence.

To buy & sell goods in India one requires a VAT registration number from
VAT registration department of Sales & Revenue. All the paper works were performed to
get a VAT registration number.

Store interior With the help of an interior designer internal design, layout and structure
designing & layout were developed.
planning

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Identifying contractors for carpenter work, electrical work and IT

Finalising contractors
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 Management’s 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.

Task name Activity definition

Pesticide Pesticide treatment of the premise to protect the premise from white-ants,
treatment moths and other pests.

Procurement Procurement planning for carpenter work materials such as plywood boards,
planning wood, veneer, mica & adhesive etc.

Vendor soliciting Obtaining quotations, bids, and proposals for the materials to be purchased
and contract for the carpenter work.

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

Pre-launch
marketing Marketing campaign to create pre-launch awareness in the local community.
campaign
Electrical Electrical wiring, voltage stabilisers, lighting & fittings and installation of
engineering generator, cold storage facilities & air-conditioning etc

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Painting & polish

Painting and polishing of wood works and walls.
work

IT planning and Procurement of POS machines, Server, Printers, Bar-codes scanners and other
procurement IT accessories.

Configuring the hardware and installing the retail management software on

IT implementation
the systems.

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

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

Staff training
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 two 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 polishing
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.

Task name Activity definition

Inspection by Get the store premise inspected by drug regulators for storage conditions and
drug regulators acquire a no objection certificate.

Inventory Planning of the inventory requirements such as selecting products and

planning defining lower & higher inventory level for products.
Supply chain
Map the supply chain, select the suppliers, negotiate the trade discounts and
designing &
finalise logistics.
planning
Prepare the orders for inventory based on historical information and
Order generation forecasting so that the store can open with adequate stocks to serve the
customers and the dispensary.
Sourcing and
Collect the drugs from suppliers and transport to store.
procurement

Develop a Planogram to shelve and display the products in the store for
Planogram
maximum visibility and adequate accessibility.

Verification & Verify inward moving goods, print bar-codes on them and shelve them as per
Shelving the drug manufacturer’s instructions.

Data entry of Data entry of inward moving goods into retail management software system
inward goods 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 56days
People 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 needed 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
a fortnight. As time was the biggest constraint in the project, any delays had high impact on overall
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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.

Task name Activity definition

Store opening ceremony day. Retail sales and service to the dispensaries
Inaugural ceremony
started this date.

Settlement of Settlement of all the work contracts such as carpenter work, electrical
contracts engineering work, painting work and auditing work.

Verification of all the invoices for material procurement and clearance of

Finalising accounts
all the payments.

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

Final report
report included information on risk and mitigation strategies followed. A
preparation &
folder containing all the receipts, invoices, vouchers, proof of work done
submission
& account statements.

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

Auditing
in the expenditures.

Phase-4 Snapshot
Deliverables Project report
Cost Rs.9,900
Time 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 reports.

Critical Path: Activities such as inventory planning, supply chain designing, order generation,
sourcing and procurement, Planogram, inwards goods verification & shelving and data entry were
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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 wouldn’t have been finished faster even by granting
further resources.

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Success criteria of Projects:

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 this
project 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 project’s
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 owner’s 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 owner’s
organisational culture and operational workflow. (Westerveld 2003)

Third, appreciation by project personnel refers to project team’s 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 project 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, customer’s needs and satisfaction. Third, medium term
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 of Project Kalinga:

Westerveld (2003) project excellence model and Renier (1996) framework present two different
prospective of project success. In this part, Project Kalinga’s success criteria have been presented
using these two frameworks.

Success criteria based on project excellence model

Project results The project should be completed on time with in the set budget & Quality.

Appreciation by the On time completion of project will ensure that ODH gets the government
client contract.

Appreciation by The project team is satisfied with the work condition and happy with the
project personnel compensation offered.

Appreciation by On opening of the store, it should be able to fulfil the needs of the
users government dispensary beneficiaries and retail customer.

The contractors such as carpenter, electrical and painting works are satisfied
Appreciation by
with the contract and have made a decent profit from the contract. Further
contracting
it may help them get more works in future as this store would be a leading
partners
store in that locale.

Appreciation by The drug regulatory authorities should be satisfied with the store structure
stakeholders and shelving of goods.

Success criteria based on Renier (1996) framework

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Internal Project
Objectives The project should be completed on time with in the set budget & Quality.
(Pre-completion)
Benefit to Customer It should meet the functional performance and technical requirements set
(Short term) in project scope. It should be able to satisfy all the customer’s needs and
customers should be satisfy with the store’s performance.
Direct Contribution Ontime completion ensures getting the government contract and thus will
(Medium term) increase revenue and profit. Further the store should help to increase
market share by attracting more retail customers.
Future Opportunity
The addition of new store would provide competitive advantage and create
(Long term)
opportunity for future expansions.

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Factors influenced the final outcome:

Westerveld (2003) project excellence model suggests that the factors influencing the final outcome
of any project can be broadly categorised 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 of Project
Kalinga have been discussed.

Leadership & Team:

“Successful project management in today’s business environment is increasingly complex. Effective

management of the intricate “people” side is the glue that holds together a project of any calibre”
(Anderson 2010). PMBOK explains that a project manager is expected to be the project’s leader as
well. He should be able to establish the direction and strategy to achieve project vision and
objectives. He should have skills to align, motivate and inspire his subordinates to reach the goal.

In Project Kalinga, 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 worthwhile suggestions. He
understood the team dynamics very 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 deadline came closer, the
team members worked up to 15hours a day to set up the store 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 team’s performance in comparison
to a team’s 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 coordination 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.

Management policy & Strategy:

Belassi and Tukel (1996) suggests management’s 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.

 Set benchmarks and periodically review Project Kalinga against the set benchmarks.
 Modify the scope of Project Kalinga based on the status.
 Grant or dismiss required resources as per the modified scope.
 Monitoring the changes and guide to the successful execution of Project Kalinga.
 Periodically performing risk assessment and eliminating the obstacles.
 Ensure best practices to achieve the set quality standards.
 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 management’s 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 dispensary 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 short
span of time. Further they coordinated & cooperate 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 of Project Kalinga on time
within set budget and quality. He understood management’s needs and successfully related to
customer’s 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 mitigation strategy: 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 would 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 that
province, serving hundreds of government beneficiaries and retail customers.

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