Professional Project Management Practices And Refurbishment Of A Boat In Nelson

Project Scope and Requirements

This report depicts the role and positive impact of incorporating professional project management prcatices while bringing suitable boat to New Zealand and making that ready to serve needful tourist services to the consumers for the operational activities at Nelson. Top of the South Tours Ltd, also known as TOT is authorized to operate different travel packages and tours mainly in the northern region of South Island. In the past few years the company is continuously obtained massive growth, competitive advantages and commercial revenue.

The scope of the project, including the list of requirements for the project, project constraints are also elaborated in this report. In addition to this, a business case model is also developed for TOTS. The project can never be accomplished with the efforts of a single person therefore lists of resources are assigned for each of the sub activities divided to complete this project. In order to reduce to work pressure from the project team members this large project is segmented into smaller activities and based on capabilities and skills of the project resources for different activities separate resources are also assigned. This project report also illustrates the cost estimated for the project, including Work Breakdown Structure. In addition to this, a risk management plan and stakeholder management plan is also designed and elaborated in this report.

The scopes of the project are illustrated in the below section:

The scope of the project is to provide a successful, comfortable and memorable travelling experience to the willing consumers by operating a tour from Nelson port to Abel Tasman National Park with a halt in different attractive beaches in the park.
Though, the scope of the project is to set out suitable source boat to Nelson and make it capable of operation. The contracted travel organization who is interested to share their boat for operating the travel is Pacific Princess a Fiji based tourist boat.
As the boat was built in the year 2006, thus it requires some refurbishment. Cost assigned for boat refurbishment and the other cost estimated for the project are also scope for the project.
In order to make the one trip memorable one for travellers the project manager needs to assign needful resources and stakeholders to this project. The other scope of the project is to design and develop a list of stakeholders including a risk management plan.
Due to seasonal changes the travellers do not travel to this location throughout the year, therefore instead of buying a boat the feels that hiring a boat is beneficial for both.Pacific Princess is also interested to incorporate a kitchen facility to their service for attracting more numbers of consumers.

As the boat is older ne built in the year of 2006, thus it requires refurbishment. On the other hand, TOTS is also needed to install a kitchen facility to offer the best services to their consumers. The company has signed the contract and agreement with BLT. In order to lease don the overall refurbishment cost TOTS require to invest the total boat refurbishment and kitchen facility adding cost. As a whole it is measured that, the net cost includes the six months hiring cost as $350,000 and the additional of refurbishment cost. The lists of requirements for the project include the below:

Engine repairing
Mechanical repairing
Electronics and electrical improvements
Canvas applications and operations
Rigs and sails
Metal works
Improvement in air conditioner, refrigeration, hull and GRP
Supporting liferafts and inflatable

The sponsors and clients for the project are enlisted in the below section:

Clients

· Travellers

· Bula Luxury Tours Ltd (BLT)

· The Pacific Princess

Sponsors and Clients for the Project

This boat is operated by Bula Luxury Tours Ltd (BLT) and they can carry up to 88 passengers at a time. In order to accomplish the objectives and goals of the project triple project constraints have been nominated in terms of cost, scope and time. The total cost and time estimated for the project is respectively (350,000+100,000=450,000) and 2 years (including six months boat hiring).

Time	2 years (including six months boat hiring)
Cost	(350,000+100,000=450,000)
Scope	Set at sourcing a boat and make it ready for the operational in Nelson

The business case Model developed for this specific project is comprises of five different elements and it includes strategies, economic, commercial, and financial and management. It is the responsibility of the project manager and the team members to maintain each of these elements accurately to ensure the success of the project within estimate cost and time.

In order to obtain a better and beneficial resultant from the project activities it is much important to consider and apply the elements much effectively and efficiently.

Strategies: In order to implement the boat hiring and refurbishment project successfully within the estimated cost and time proper business strategies must be implemented. While developing the one day tour plan Top of the South Tours Ltd (TOTS) should apply certain business strategies because it allows the company to become much proactive instead of reactive. Though, business strategies a sense of project direction can be developed. The business efficiency also increase and become completely aligned to the objectives. The market share and commercial profitability also enhances. The business can become much durable as soon as it incorporates business strategies to this.

Management: Managerial control over Top of the South Tours Ltd (TOTS) business elements can develop business efficiency among assigned stakeholders. It also provides needful control to the project factors Apart from this it assists the team members to become much focused to their responsibilities. Managerial approaches will help Top of the South Tours Ltd (TOTS) to make their own decisions much accurately with adequate amount of control. The supervision also becomes absolutely simple than the previous.

Economic: In order to refurbish the boat, and to provide needful training to the project team members along with a hiring cost economic support are much crucial. Effective economic support can resolve the project issues much easily and quickly. In other words, it can govern the project towards success direction much easily.

Financial: Financial support to project can improve the cash flow, cash forecasting. The financial ratio also increased due to the aligned payment with benefits. The existing credit line can also be preserved through financial support.

Purpose of the Project

Commercial: The commercial support will help project manager to buy and incorporate all needful elements and factors through which the project can implemented as a successful and profitable one for both Top of the South Tours Ltd (TOTS) and BLT. Collective business strategies and managerial support can improve the commercial success of the business.

WBS	Task Name
0	Scheduling Top of the South Tours Ltd boat hiring and refurbishment project
1	Project initiation
1.1	Developing project scope statement
1.2	Designing proper project risk management plan
1.3	Stakeholder management plan
1.4	Assigning project resources
1.5	Contract to project vendors
1.6	Contract to project suppliers
1.7	Developing proper business strategies
2	Project planning phase
2.1	Contact with the different tourist operators
2.2	Contract to the most suitable operator (Fiji based)
2.3	Signing the leasing agreement
2.4	Negotiating and drafting
2.5	Getting complete insurance of the boat
2.6	Gaining resource consent
2.7	Securing suitable berth at Port Nelson
2.8	Installing new kitchen facilities to deliver needful outcomes
3	Project execution
3.1	Boat refurbishment operation
3.2	Installation of new boarding facilities
3.3	Painting and decorating the hired boat
3.4	Necessary equipment installation
3.5	Registration of the hired boat
4	Monitoring and control
4.1	The boat registration must be rechecked by the New Zealand authority (Marine)
4.2	Arrangement of training for crew safety procedures
4.3	Practice run for the cruise
5	Closure phase
5.1	Stakeholder signoff
5.2	Post project maintenance planning

a) Sailing boat from Fiji to Nelson

WBS	Task Name	Duration	Resource Names	Cost
0	Scheduling Top of the South Tours Ltd boat hiring and refurbishment project	169 days		$3,810,080.00
1	Project initiation	48 days		$12,912.00
1.1	Developing project scope statement	6 days	Project manager	$1,440.00
1.2	Designing proper project risk management plan	6 days	consultant	$1,920.00
1.3	Stakeholder management plan	5 days	Project manager	$1,200.00
1.4	Assigning project resources	12 days	Project manager	$2,880.00
1.5	Contract to project vendors	12 days	consultant	$3,840.00
1.6	Contract to project suppliers	4 days	Project manager	$960.00
1.7	Developing proper business strategies	3 days	Resource manager	$672.00
2	Project planning phase	55 days		$15,120.00
2.1	Contact with the different tourist operators	6 days	Project manager	$1,440.00
2.2	Contract to the most suitable operator (Fiji based)	9 days	consultant	$2,880.00
2.3	Signing the leasing agreement	8 days	Project manager	$1,920.00
2.4	Negotiating and drafting	5 days	Resource manager	$1,120.00
2.5	Getting complete insurance of the boat	6 days	Project manager	$1,440.00
2.6	Gaining resource consent	9 days	Project manager	$2,160.00
2.7	Securing suitable berth at Port Nelson	4 days	consultant	$1,280.00
2.8	Installing new kitchen facilities to deliver needful outcomes	12 days	Project manager	$2,880.00
3	Project execution	54 days		$3,774,112.00
3.1	Boat refurbishment operation	5 days	Project manager ,Refurbishment cost [1],others [1]	$1,351,200.00
3.2	Installation of new boarding facilities	8 days	Project manager ,Refurbishment cost [1]	$351,920.00
3.3	Painting and decorating the hired boat	18 days	Project manager ,vendors, Refurbishment cost [1],others [1]	$1,355,760.00
3.4	Necessary equipment installation	12 days	Project manager ,Refurbishment cost [1],vendors	$357,680.00
3.5	Registration of the hired boat	8 days	Resource manager, consultant, Refurbishment cost [1],vendors	$357,552.00
4	Monitoring and control	22 days		$5,648.00
4.1	The boat registration must be rechecked by the New Zealand authority (Marine)	6 days	consultant	$1,920.00
4.2	Arrangement of training for crew safety procedures	9 days	Project manager	$2,160.00
4.3	Practice run for the cruise	7 days	Resource manager	$1,568.00
5	Closure phase	7 days		$2,288.00
5.1	Stakeholder signoff	5 days	Project manager	$1,200.00
5.2	Post project maintenance planning	2 days	consultant, Resource manager	$1,088.00

Factor	Unit	Cost/unit	Cost
Purchase cost	1	$ 30,000.00	$ 30,000.00
Procurement cost	1	$ 5,200.00	$ 5,200.00
Installation and testing labour cost	10	$ 80.00	$ 800.00
Total cost	$ 36,000.00
Procurement pecentage	83%

Factor	Unit	Cost/Unit	Cost
Initial registry charges	1	$ 5,014.00	$ 5,014.00
Maritime Transport Operator Certificate	1	$ 728.00	$ 728.00
Safety inspection	6	$ 291.00	$ 1,746.00
Levied Charges
Boat Length	52	$ 17.11	$ 889.72
Tonnage capacity	1500	$ 5.14	$ 7,710.00
Passenger capacity	88	$ 238.00	$ 20,944.00
Total cost	$ 37,031.72

Factor	Unit	Cost/Unit	Cost
Sea captain income	1	$ 346.67	$ 346.67
Crew members and wait staff	1	$ 205.00	$ 205.00
Variable cost	12	$ 42.00	$ 504.00
Diesel consumption	800	$ 1.74	$ 1,392.00
Total cost	$ 2,447.67

In order to accomplish this project the project owners should assign appropriate internal and external stakeholders to it based on their interest. The stakeholder matrix is elaborated in the below section:

Stakeholders	Interest	Impact	Influence	Strategies to keep the stakeholders engaged
Internal	Project manager	Interested to motivate the members so that they can complete the project within measured time and budget.	High	High	Roundtable discussion/meeting on a monthly basis
Resource manager	Is responsible to assign right people based on their skills to separate project activities	High	Medium	Monthly meeting and information sharing to the other resources and project team members
External	Consultants	The project consulted is interested to provide a problem solving platform to the users so that they can avoid conflicts, overrunning cost and over allocation of budget during the planning and project execution phase.	Low	Medium	Frequent conduction of discussion/meeting for sharing information
Vendors	The vendors assigned to the project are interested to identify and offer needful products to maintain infact improve the quality of the project	Medium	Low	Attending quarterly meeting and discussion session

After analyzing the details case scenario it is determined that the project may face certain risks or massive challenges. These challenges are required to be mitigated completely by the project team members, stakeholders and resources to avoid overrunning cost and over allocation of time issues. The risk management approaches those are applied for this specific project include the below:

Risk identification: Before targeting the consumers and clients of the project, the possible risks that may interrupt its potential success line needs to be identified. As soon as the risks are identified mitigation of those risks becomes very much important. It is the responsibility of the project manager and the project team members to identify the risks.

Risk analysis: As soon as the risks are identified it becomes the responsibility of the team members to analyze each of those risks with professional management practices. The risks are needed to be analyzed considering all the risk factors.

Risk prioritization: Based on the risk analysis resultants that should be prioritized accordingly. The prioritization resultants will help to rank the risks on a specific ranking scale ranging between 1 and 10. If the score is greater that 8 (>=8) then its impact will be measured as high. Again, the risks those are ranked as less than 4 (<=4) the impact of those risks are highlighted as lower. Apart from this, the risks that are ranked between 5 and 8 are assumed as medium. However, in order to mitigate the risks proper risk management approaches should be incorporated. Commitment from senior leaders and project manager are very much crucial to manage all the identified risks.

Risk mitigation: Risk mitigation is referred to as the most crucial part for risk management approach. The cases for those direct risk mitigation is little difficult for those risks other approaches requires to be undertaken and it include risk acceptance, risk transfer, risk avoidance etc. The details of the risk mitigation approaches are elaborated in the below section:

Risk Id	Risk name	Impact	Probability	Ranking	Mitigation strategies
R12	Insufficient technical and non technical knowledge of the project team members	Catastrophic 5	Almost certain 5	10 (extreme)	The project manager requires to arrange professional on-job training and development program to make all the members aware regarding the project objectives and goals
R06	Inappropriate allocation of resources	Moderate 2	Likely 4	6 (medium)	At the project initiation phase, based on the complexity of each of the activities proper resources are required to be assigned to each of them.
R14	Improper time management	Significant 3	Moderate 3	6 (medium)	Before hiring the boat and initiating the project the project manager needs to allot proper timeframe to the different activities
R22	Improper estimation of cost	Minor 1	Unlikely 2	3 (low)	Based on allotted timeframe and assigned resources the project manager and the project team members require to estimate cost for each of the phases. It is the responsibility of the project manager to accomplish the assigned jobs within the estimated cost and time.
R20	Operational risks	Moderate 2	Rare 1	3 (low)	It is the role of assigned project operation manager to ensure that all operations are being conducting professionally
R8	Logistic risks	Minor 1	Unlikely 2	3 (low)	Hiring a suitable boat to fulfill the travelling purpose can resolve the risks associated to logistics risks.

Business Case Model

Conclusion

From the overall discussion it can be concluded that the Top of the South Tours Ltd (TOTS) ensures, the consumers who are willing to pay premium amount will get valuable services from their service end. This project focuses on luxury one day cruise service that is going to depart from the Port Nelson. The ultimate destination which is located for this travel is visits Abel Tasman National Park, this is one of the most famous and attractive travelling location in that region. Apart from this, the cruise will halt in different renowned beaches located in the park. The role of the project manage is to assist all assigned project team members so that they can govern the project towards its pre assumed set of objectives and goals. The scope of the project is to settle out suitable sourcing boat that will bring to New Zealand is operated accurately to avoid all logistic challenges that the company was facing. There are many travelling agencies that show their interest to share boats for operating the tourists. Top of the South Tours Ltd has contacted many such tourist operations all around South Pacific and highlighted Fiji based operators as the most suitable option. The operator chosen for the operation is Bula Luxury Tours Ltd (BLT) that can carry up to 88 passengers at a time. The total cost estimated for the project along with a stakeholder management plan and a risk management plan is also elaborated in this report.

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