PROJ6002-Project Planing and Budgeting Case Study – Management Assignment Help

Assignment Task

Task 

Case Study: Waratah Residential Care Facility

Project Background
Waratah Residential Care Facility (WRCF), an urban residential care facility began to see a significant demand in the aged care business. The facility is now focusing on increasing occupancies and care services. In order to get a handle on the future of the organization, the Board, and the CEO, Mark Cameron called for a major strategic planning effort to take place. In December 2021, WRCF held a planning retreat to identify future opportunities. The outcome was that the facility needed to focus its efforts around two major strategic initiatives.

The first, a short-run initiative, was to be more cost-effective in the delivery of care. The second, a long-run strategy, was to develop new buildings and services that would capitalize on the existing, highly competent care staff and WRCF’s excellent reputation in the region. In January 2022, Mark had his Business Development team prepare a rough estimate of the potential return on investment of a residential care facility. He asked the team to identify different options for facility construction and the associated costs. The team also did a complete competitive analysis and examined the options for services to be offered based on WRCF’s potential population base and catchment area. The Business Development team visited several facilities across the country. The team also interviewed companies that could oversee the design, building, and operation of the facility for WRCF. The development team produced a preliminary business plan based on the recommended structure for the facility, estimated capital expenditure needs, estimated income from operation of the facility, as well as projected revenues to other programs resulting from the facility’s population.

The business case was presented at the February 2022 meeting of the Board of Trustees. Mark Cameron and his team introduced the Board to the concept of opening a new facility. The chosen facility design was a freestanding apartment-like facility with 150 units. The population would be approximately 150 to 300 residents, with most being single occupants rather than couples. The Board was assured that the facility would meet the strategic initiative of a growing business. The business plan projected an immediate increase in the number of residents. Depending on the exact size of the apartments and their equipment, Mark estimated that the entire project would cost $9,275,000 including designated contingencies with $8,500,000 for the facility construction, $500,000 for the operations, $150,000 for Legal and Licensing and $125,000 for Marketing. That estimate included the cost of land and furnishings. When up and running, it was estimated that the net income would range between $10,000 and $15,000 per unit per year. The team estimated the net cash flow for the entire project to be around $2,250,000 per year if the facility was fully occupied.

Mark requested the Board to approve the concept and allow his team to prepare a pro forma plan to the Board for approval. The plan would include a recommended design for the new apartments as well as all costs of land, construction, furnishings, and staffing. Income estimates would be included and would be conservatively biased. A timetable would also be included. The Board conducted several executive sessions, and by the middle of February voted to approve the concept. They approved the architectural-construction-management firm recommended by the team, and they requested Mark to proceed with developing a complete project plan. The Board appointed two Board members to sit on Mark’s planning group. The Board also stated that they would like a plan that would allow the facility to open by May 2023, as research has shown that many people find the month the easiest time to find an alternative to independent living arrangements. The CEO and executive team were now confident that they were ready to launch the project to plan, build, and open a new residential facility.

A few days later, Mark decided that it was time to set up the team that would take responsibility for what he called the WRCF project. Mark named the Project Steering Committee and held the first meeting. He presented his vision for the facility. He told the group that he personally would PROJ6002 PROJECT PLANNING AND BUDGETING 2
be managing this project. He led a discussion of all the major steps that must be included in the project plan, and asked each team member to identify the areas for which they would accept responsibility. The facility’s Construction Project Manager took responsibility for the construction of the new apartments, and the COO volunteered to oversee the building design, as well as define the needs for care services, housekeeping, staffing, and policy and procedure development. The CFO agreed to develop the budgets for each area of the project as well as the operating budget for the facility. The CFO also agreed to create the payroll and accounting systems necessary to operate the facility. The IS director accepted responsibility to define and set up all the telecommunications and information system needs of the facility.

The VP of Business
Development agreed to create a preliminary marketing plan, and a communication package for the community and staff. In addition, she discussed organizing a major ground-breaking event. Mark told the team that he would develop the management structure for the new facility and work with in-house counsel to identify all governmental regulations as well as all industry standards related to the facility’s practices. Mark gave the team two months to come back with their detailed action plans for their areas of responsibility.

Project Planning
The next steering team meeting will be held March 1, 2022. Mark needs his team members to work well together at determining the steps and the associated costs of the program. The CFO will present the program budget first, and then project team members will present their draft project plans. The project plan to be presented by COO will include the followings:

You have been delegated by Mark Cameron to complete the project scope statement and related documents including the required plans (Scope, Quality, Schedule and Cost management Plans) of the sub-projects. You must include appropriate analysis on the changes to the sub-project schedules and their impact on the project cost baselines.

Project Cost Management includes the processes of planning, estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within the approved budget. 

Instructions 
1. Study the assigned Case Study provided on Blackboard by your Learning Facilitator. 
2. Analyse the project from your own perspective as an up-and-coming project manager 
3. Devise your own, individual set of subsidiary Project Management plans for Schedule and Cost based on the assigned Case Study. 
a. Although all students will receive the same case study, you are expected to complete this task individually. 

b. These project schedule and cost management plans and supporting documentation must contain, but are not limited to, the following components: 
• Description of Estimation Methods, and Tools and Techniques for managing Schedule/Budget 
• Overview of Schedule and Budget Methodology 
• Network Diagram using the Critical Path Method 
• Project Schedule 
• Cost Baseline 
• Project Budget, including detailed estimates and cost control methods. 

4. Write and describe the processes, tools and techniques applied in your schedule and cost management plans, as well as a justification of your budget and schedule. 
5. You can use the templates in this subject’s Learning Resources or create your own templates to devise the subsidiary cost and schedule project management plans. 
6. Submit a schedule and a network diagram using the critical path method (CPM). Scheduling software such as ProjectLibre or Microsoft Project can be used to design your schedule. Alternatively, you can hand-draw and scan your network diagram. 

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