Project Management Analysis

Of The Nail Spa

Presented to Professor Mr. Ruben Burga

Prepared by:
Suman Kumar Ghosh - 821398534
HARSHIL PATEL - 821311347
RAVISH CHOUHAN - 821541851
AMARJEET SINGH DHILLON - 821369790
SERAN SENTHILNATHAN -
 EXECUTIVE SUMMARY

“The Nail Spa” is a state of the art healthcare service provider in United Arab Emirates currently
focusing on the Dubai market. Their core service offering include BIO SCULPTURE, ESSIE,
Organic skin care treatment termed as HEAVEN. The company offer its services through
multiple Spa Units comprising of highly equipped modern apparatus and well décor
infrastructure. So the company need a senior project manager to take responsibility, control and
execute these “turn-key” projects for initiation of subsequent Spa Units. The Company has
taken a future expansion goal of incorporating four new Spa units within next six to eight months
time between Abu Dhabi, Dubai and Ras al-Khaimah.

The specific goal of the project manager is to accomplish each individual Spa unit according to
the standard of expectation by the business and the entrepreneurs and within estimated
timeframe. His core responsibilities includes project planning, budgeting, Government licensing
and relevant approvals by payment of fee to the Economic Department, and ensure successful
execution of the project to timely completion according to planned deadline. For performing the
successful project management functions Mr.Dutta carry out different aspects of Strategic
Management from SWOT analysis to functional activities which broadly categorised under the
core Management Functions of Planning, Organizing, Leading and Controlling.

Our analysis reveal that the project management team should have predicted and foreseen the
delay in overall infrastructure management and water supply by the Government and
accordingly should have waited after the initial occupancy and licensing documentation before
initiating the project work till such infrastructure are commissioned. So far as the project
management of Mr.Dutta is concerned, he can explore further possibilities of building up
multiple specimen structural design models for various Spa Units partnering with the designing
architects & contracting firm that will enable him to cut down the initial planning time and the
interest cost for implementing new Spa units.
 TABLE OF CONTENT

I. INTRODUCTION ................................................................................................................ 1
a. Purpose of the Report ........................................................................................... 1
b. Description of the Company .................................................................................. 1
c. Description of the Company’s Project ..................................................................... 1
d. The Project Manager ............................................................................................ 2
e. Date of Interview .................................................................................................. 2
Report Findings and Analysis..................................................................................................... 3
A. PLANNING .......................................................................................................... 3
B. ORGANIZING ...................................................................................................... 5
C. LEADING ............................................................................................................ 8
D. CONTROLLING ................................................................................................. 11
CONCLUSION AND RECOMMENDATIONS ............................................................................12
Appendices ................................................................................................................. 13
References ...............................................................................................................................14
 I.INTRODUCTION

The Nail Spa is one of the most prominent Healthcare service providers in United Arab

Emirates. The entrepreneur had taken initiative for the impeccable and stylish service delivery to

satisfy the clientele when it comes to creativity and treatment quality. The treatment and product

of Bio Sculpture, Essie and Organic Cult skin-care has made “The Nail Spa” one of the most

recognized healthcare brands in the industry.

a. Purpose of the Report

The primary purpose of this repost is to analyse and understand the Project Management

functionality and modus operandi of one of the prominent Healthcare service provider in UAE.

b. Description of the Company

The Nail Spa is a healthcare service provider in United Arab Emirates currently focusing on the

Dubai and subsequently planning to grow in Abu Dhabi market during the next calendar year.

➢ Location - 504, Zarouni Business Centre, Al Barsha 1, Shekh Zayed Road,

P.O.Box: 74706, Dubai, UAE

➢ Nature of the Business - Healthcare service provider in Nail Spa.

➢ History - The Nail Spa was founded by Mrs.Shabana Karim in 2002 based in Mercato,

Jumeirah, Dubai and since then it has grown to a total of four salons across ‘key’

location in Dubai, including ‘The Aviation club in Garhoud’, ‘The Dubai Mall’ in downtown

Burj Dubai and ‘Ibn Battuta Mall’ in Jebel Ali.

c. Description of the Company’s Project

The Nail Spa is into healthcare business where in they build multiple setups in convenient

locations to cater to the needs of their clientele. The Project Manager (the Manager whom our

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team interviewed) is responsible for each such new entity. He initiates each project from

inception of the planning stage, and monitor step by step in project execution including financial

budgeting, infrastructure construction phases, MEP contracting, interior designing & finishing to

plan the final inauguration date.

➢ Project Objective – Establish new Health spa entity in new potential locations and

enhance business to build up the “The Nail Spa” brand name beyond geography.

➢ Start and End date – Mr.Dutta undertakes multiple Projects and each project has

separate commencement and end date with average timeframe of 3 to 4 months.

➢ Number of project members – approximately 25 to 65 employees for each project

depending on the employee count of the Project designer and contracting vendors.

d. The Project Manager

The Project Manager is MR. SATYAJIT DUTTA, and his business card is enclosed herewith.

e. Date of Interview

➢ Date of Interview - The date of Interview was June 23, 2012.

➢ Name of the Team “365x24x7” members present in the interview are:

o SUMAN KUMAR GHOSH o AMARJEET SINGH DHILLON

o HARSHIL PATEL o SERAN SENTHILNATHAN

o RAVISH CHOUHAN

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 Report Findings and Analysis

A. PLANNING

1. Specific Goal

The specific goal of the project manager is to accomplish successful completion of each

individual Spa unit within estimated timeframe, according to the standard of expectation

by the business and the entrepreneurs.

2. The ownership of planning for any new projects.

From the view point of “The Nail Spa” the hiring of technically qualified therapists is quite

demography oriented, due to two major reasons.

a. Economy –the primary reason is the higher availability of economically viable

Spa therapist is available in Philippines.

b. Technical knowledge - most of the Spa operational employees that are hired

from Philippines have adequate Technical skills require for the Spa management.

Subsequently the Quality control Manager coordinates with the HR manager for

a. Soft-skill and behavioural training and

b. Induction with the existing business process and enhanced Technical

Training for machinery operation etc.

3. The business plans or strategies for any of the new projects? Example of some

business plans:

a. A start-up plan

For the start-up phase of the new project Mr.Dutta and the senior management

perform a SWOT analysis review and has chosen the Dubai Golf Club as part of

their New Project.

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 b. An internal operations plan

Mr.Dutta constantly participate on the Internal Operations plan for maintaining

Customer information which can lead to robust future business growth based on

prior availability of choice and preference of the potential and regular high profile

customer.

c. A strategic plan

For the new project in Dubai Golf Club, Mr.Dutta and the senior management

evaluate the business potency as part of the strategic planning apart from the

basic crux of project management, for the venue as almost 5000 lady members

and elite class woman’s from around, socialite in the adjoining area.

d. A growth or expansion plan

The senior management has an expansion plan of adding up four more units by

mid-2013 subsequently across Dubai, Abu Dhabi and Ras Al-Khaimah.

e. A feasibility plan

Before deciding and commencement any new project “The Nail Spa” senior

management analyse the economic feasibility plan and valuation of ecosystem

services.

4. Benchmarking the average "cost of production" for each of such “turn-key”

projects.

The first step of financial management is to evaluate and benchmark the business

operation process to determine the strengths and weaknesses. This includes calculating

and benchmarking the cost of production and looking at production opportunities for the

Spa Business.

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 5. Determination of a realistic schedule for on-going or new projects.

The management team sets up a realistic schedule to provide ample time to the team

working on creative process management.

6. Evaluation and planning of the demographic factors (the statistics of populations

and the sociological factors) for selecting the best location.

Considering the demographic factors the management team had decided the new

project in Dubai Golf Club, based on the fact that almost 5000 elite lady members from

the neighbourhood, socialite in Dubai Golf Club.

7. Evaluation of factors like cultural fitment, economical or technological ambience

while setting up a new entity of “The Nail Spa”.

The team keep an eagle-eye on the interiors and décor while planning the aesthetics of

the each of the Spa Units to match the cultural fitment and accommodate appropriate

technology features like Wi-Fi enabled Spa centre with latest gadgets to match the

expectation and technological comfort of the clientele.

B. ORGANIZING

1. The Organization Chart

Please refer Appendix 1 for the Organization Chart of the Project Team.

2. Methods used for selecting employees for turnkey projects.

The major hiring happen through Gulf newspaper advertisement and appointing

immigrant directly from Philippines. Subsequently the Quality management team and

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 Human Resource managers evaluate the candidates based on their past experiences

and procedural awareness.

3. Specific trainings imparted to the employees, if any, to become eligible to be

considered for such project activities.

Once the senior management awards the project to the project manager for completion,

the Quality and Human Resource management team start focusing on the soft and

technical training of the new employee, so that the new operational team are ready by

the time the project manager complete the respective project.

Soft training covers the attitude development, enhancement of behavioural skills and the

technical training covers the machinery usage and chemical applications, as the Spa

business entails direct application of chemicals on human skins which may be sensitive

to specific customers.

4. Allocation of specific time frame for different activities of the project.

The ideal time frame for each “turn-key” project is 3 to 4 months. The first 3 weeks are

spent on different Government approvals. 3 day to a week is average time for the site

mobilization. 2 to 3 weeks are taken by the contracting vendors for the construction

phase. Light fighting, wood work, vinyl works, HVAC ceiling work, fire alarm, automated

security system, imported tile (from Italy & London) laying takes about another 3 to 5

weeks depending on the carpet area. The 3rd month onwards major attention is given to

machinery installation and testing, installation of back painted glass, finishing and fine

tuning activity.

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5. Benchmarking and evaluation of external vendors before awarding specific

contracts to them.

Most of the vendors who are awarded contracts are enlisted and empaneled according

to their previous job qualifications. Before hiring new vendors Mr.Dutta visit some of their

live previous performances to evaluate their credibility. The standard on-going market

rate for MEP contracting (Mechanical, Electrical and plumbing) for 1000 sq. ft. in Dubai

up market is about AED 700 to 1000 where-in “The Nail Spa” allocate AED 1200 to 1500

as their target is to establish a very high end facility and Brand for niche market.

6. The job roles that report in to the Project Manager.

Along with project management Mr.Dutta also spearhead the administrative wing of “The

Nail spa”. So according to the “Organization Chart” one project engineer, eight to ten

technicians, several specialist mechanical plumbers, four administrative executives,

workers in the steaming department, matrix reporting of the fleet management for the

vehicle pool of the company, couple of junior designing and auto-cad engineer and

receptionists report to him internally.

The external reporting includes MEP contractor and their supervisors and the SPOC

from the designer consulting firms.

7. The organizational structure that is used for the projects. Example:

For the Spa business the major Organizational Structure used is:

a. Functional Departmentalization – where each jobs & tasks are grouped and

assigned according to specific functions performed by each team or individual,

and

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 b. Process Oriented Departmentalization – according to this the new unit is

reminiscent of a traditional health care and Spa organisation, based on clinical

departments and characterised by vertical as well as horizontal boundaries.

8. Flat Organizational Structure (i.e.; few levels of management)

Flat organizations encourage high employee involvement in business decisions. So “The

Nail Spa” follows a Flat Organizational Structure as it has only a few levels of managers

and emphasizes a decentralized approach to management. Though the company has a

vast structure of operation across multiple locations, but they follow only four to five

levels of senior manager and managers separating the front end employees with the

CEO.

C. LEADING
The two major theories for leading are:

• Behavioural Theory (Behavioural theories of leadership are based on beliefs that

great leaders are made and not born with such leadership qualities

• Relationship Theory or Transformational Theory focus on relationship and

connections formed between leaders and the team members. Such leader prefer to

motivate and inspire the team members to see the importance and the positive effect

of the task by focusing just not on the group performance but also helping each

members of the team to accomplish his/her task. Such leaders often possess high

ethical and moral standards.

Using the above theories and specific live examples, the leadership behaviour of the

manager is analyzed to support the report.

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1. Motivation of employees.

In “The Nail spa” the manager Mr.Dutta primarily guide or motivate his team members in

the direction of established goals by clarifying role and task requirements, so he is

following the model of Transactional Leadership.

2. Motivate to employees - Necessity for reward, recognition, remuneration and

promotion.

Being a Flat structured Organisation “The Nail spa” senior management strongly

encourages the rewards recognition, coaching, guidance and support model of the

Path-goal theory.

3. Organizational culture.

The Organisational culture of Nail Spa believes in Employee Empowerment to enhance

quicker responses to problems and faster decisions making. They also believe in the

Culture of “Trust Building” where in trust is expected, encouraged, and practiced.

4. Conflicts amongst employees.

The standard conflict resolution techniques are:

o Avoidance

o Accommodation

o Forcing

o Compromise

o Collaboration

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 Conflict resolution -

An ideal leader knows how to use conflict resolution techniques according to necessity

and specific situation at hand. Ideally it is a combination of any of the procedures or a

combination of them based on specific case.

Mr.Dutta also use a combination of Conflict resolution techniques based on his

psychological understanding of the respective employee. Sometimes it works

immediately while sometime he escalates such conflicts to the senior management for

their conscientious for some drastic decision.

5. Devices used for communication with the employees.

The standard devices used for communication are mobile / smart phone, emails and fax

machines for regular communication.

6. Project decision-making centralized or decentralized

The project decision making format depends on the scope of financial span and

accordingly decided. The manager takes instantaneous decision unless it involves

substantial amount of expenditure, which is usually expenses over and above

AED 50000 to AED 70000.

7. Change management requirement

The Change management requirements for the existing business model have the scope

of reviewing the following criterion:

a. The rate of success among the existing projects.

b. The rate of difficulties in the successful implementation of the operational

applications

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 c. The success of the Organisation depends by how well the end user customers

deal with the various operational procedures.

So far as the project management of Mr.Dutta is concerned, he can explore further

possibilities of building up multiple specimen structural design models for various Spa

Units partnering with the designing architects that will enable him to cut down the initial

planning time and the interest cost for implementing new Spa units.

8. Control over the employees

Mr.Dutta executes almost 100 percent control on the team members as the

management follows a Flat Organisation model, thus avoids employee conflicts on

execution issues.

D. CONTROLLING

1. Tools used to monitor and control the projects, if any.

“The Nail Spa” uses ERP RDBMS [relational database management system] called “Spy

Unit” to monitor the phase by phase project completion, which has automatic escalation

thread across the vertical reporting line of the organisation.

2. Problem correction actions during the projects – that is initiated.

In the event of any specific problem Mr.Dutta initiate corrective action according to

necessity, either by dealing the issue at peer level or by escalating it to the senior

management. The general environment in the organization is extremely cozy and made

“The Nail Spa” one of the preferred employers in UAE.

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3. Budget control – general trend - over or under the initial project estimation.

The budget control measures are pre-estimated as the project costs are estimated well

in advance before awarding the projects to the design architects and the contracting

vendors.

4. Rate of success for each projects –

Each of the projects so far undertaken by Mr.Dutta has been successful as the control

mechanism is laid down well before the project initiation through proven facts of

success.

5. Target achievement -

So far all project targets have been achieved.

For unsuccessful projects –

A thorough postmortem analysis is conducted for the cause of failure and the situations

are taken care by addressing specific issues, if necessary, by taking the CEO and the

Directors in confidence.

6. Dates – flexibility

Ideally the dates are estimated well in advance during the project estimation for each of

the turnkey projects. Despite such time management there are deviations when certain

infrastructures for commencing the specific unit are beyond the control of the manager

or the organisation. Example – the current project in Dubai Golf Club will finish well

within the estimated timeline as projected by the project management team (our

manager is a member of the project management team), but the entire Commercial

complex may not finish in time in which the unit is situated due to delay in facilitation of

water supply to the entire complex by the UAE Government.

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7. Different approach for better controlling of the projects –

Our analysis reveal that in the event of unforeseen delay, ideally the project

management team should have predicted and foreseen the delay in overall infrastructure

management and water supply and accordingly should have waited for some more time

after the initial occupancy and licensing documentation before initiating the project work,

as after the completion of the project the interest cost of the project will start building up

even if it do not earn a single Dirham in revenue.

8. Sharing relevant past experiences –

The Project Manager Mr.Dutta had undertook similar and varied turnkey project

experiences during his previous professional assignment with a infrastructure

management, contracting and construction conglomerate namely Sobha Developers in

Dubai, UAE. According to experience sharing Mr.Dutta has always been recognized as a

man of task as shared by Suman Kumar Ghosh, who was his senior colleague in Sobha

Developers, UAE.

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 CONCLUSION AND RECOMMENDATIONS

As a project manager Mr.Dutta is doing a great job by accomplishing his task in time according
to the expectation of his reporting authority.
Our analysis reveal two prospective area of improvement related to time management and
strategic management initiative.

1. Time management – The project management team should consider the delay in
Government infrastructure and water supply to the commercial complex which is the
proposed site for their new project, which is an external threat according to SWOT
analysis, and accordingly plan the commencement of the project, otherwise
unnecessarily the company have to bare the interest cost.

2. Strategic Management Initiative - Explore possibilities of building up multiple specimen

structural design models for various Spa Units according to demography and cultural
requirement by partnering with the designing architects & contracting firm that will enable
him to bring down the initial planning time for each individual project and thus can
commence revenue inflow in comparatively much shorter project time for implementing
the new Spa units.

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Appendices
Organization Chart

Mr.Satyajit Dutta
[Project Development & Process
Manager]

Project MEP
Engineer Contractor

Junior
MEP
Designing Technicians
Specialist
Engineer

Asst. Admin Design

Manager Consultant

Administrati Fleet
ve management Receptionist
Executives team

one project engineer,

eight to ten technicians,
several specialist mechanical plumbers,
four administrative executives,
workers in the steaming department,
matrix reporting of the fleet management for the vehicle pool of the company,
couple of junior designing and auto-cad engineer and

receptionists report to him internally.

The external reporting includes MEP contractor and their supervisors and the SPOC from the designer consulting firms.

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 References

1. “The Nail Spa” (2012) Retrieved July 1, 2012, from http://www.thenailspa.com/default.aspx

2. http://life-priolo.spea.pt/en/the-project/actions-list/

3. http://inderscience.metapress.com/content/q12800m3mn650575/

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