Rock ‘n’ Reggae Case Project essay
Task 1. Allocation of workers for the first week
The first decision is to assign workers to the tasks for the first week of the project. Three tasks which do not have predecessors are “Contract negotiation with selected music groups” (Task A), “Contract negotiation with roadies” (Task C) and “Screen and hire security personnel” (Task D). The duration of task A is 3 weeks, of Task C – 2 weeks and of Task D – 3 weeks. Thus, these tasks should all be started during the first week, and no other tasks can be performed this week (since all other tasks require completion of Tasks A,C and D).
Preliminary analysis showed that if all tasks were assigned to one worker only and implemented consequently without any extra expediting activities, the project could only be completed in 12 weeks instead of 10, which would lead to eventual losses of $4,000 due to negative publicity and loss of goodwill. Thus, it was necessary to reduce the time of completion for critical tasks. In the initial schedule of the project, the task of the first week which belonged to the critical path was Task D. It is possible to assign one more worker to this task and therefore, to reduce its completion time to 1.5 weeks instead of 3 weeks. This will require additional $100 per week for management coordination, and will allow to save 1.5 weeks of time for the project. Thus, for Tasks A and C, 1 worker is assigned for the first week, and for Task D, 2 workers are assigned for the first week. Table 1 illustrates this allocation.
Week
Tasks to work on
# of employees per task
1
A. Contract negotiation with selected music groups
1
2
C. Contract negotiation with roadies
1
3
D. Screen and hire security personnel
2
Table 1. Allocation of workers for the first week
I. Project Plan
According to the official definition of a project, it is a temporary endeavor aimed at creating a unique product or service (Philips, 2006). Projects should have one or several goals and commonly have limitations, such as labor, capital and time constraints (Morris & Sember, 2008). Rock ‘n’ Reggae Project has all characteristics of the project and perfectly matches the scope of activities of Planners ‘R Us.
The goal of the project is to organize a summer music festival called Rock ‘n’ Reggae in the state of Florida. The festival will take place at the football stadium of a high school. The project involves many stakeholders: city officials, administration of the high school, top music groups, numerous music fans, students and local residents.
The following resources are available: 4 workers can be hired for $200 per week each, and one additional worker available for $300 per week (because this worker will be distracted from his or her current tasks). There is no need to hire the workers for the whole duration of the project, and it is possible to assign different tasks to them as required. It is possible to perform task expediting, and assign 2 workers to the tasks instead of 1. However, this will increase costs on managing the cooperation of these workers, and thus will increase costs by $100 per week for every task with 2 workers assigned to it. It is not possible to assign more than 2 workers to the task, because in this case the time spent on additional management and cooperation will not lead to decrease of task completion time. Thus, labor constraints are the following: there are maximum 5 workers per week available, and maximum 2 workers can work on the same task simultaneously.
Financial constraints of the project are not mentioned, but one of the aims is to minimize costs. Time constraints are the following: the project starts 12 weeks before the projected date of the festival, and it is necessary to complete the project in 10 weeks, i.e. 2 weeks before the start of the festival. If this requirement is not satisfied, the company will lose up to $2,000 per week, due to the loss of goodwill and due to negative publicity. Exact date of the project’s start is not indicated, and it is supposed in the planning activities for greater certainty that the project will start on April 9, 2012 and the festival needs to start on July 2, 2012. There is exactly 12 weeks between these dates, and it is possible to change the project start date in MS Project, if other dates are specified.
The task of Planners ‘R Us is to determine optimal duration of activities and assign tasks to available workers so that the project would be completed in 10 weeks, 2 weeks before the start of the festival, and to minimize overall costs of completing the project. With regard to the supposed dates, the project should be completed by Friday, 15 July 2012.
II. Work Breakdown Structure
Company representatives have discussed the activities required to complete the Rock ‘n’ Reggae project, and identified 12 activities, the predecessors for the activities and the durations of the activities. Table 2 shows the numbers of the activities, their description, duration and predecessors.
Activity
Description
Duration
(weeks)
Immediate predecessors
A
Contract negotiation with selected music groups
3
–
B
Find a construction firm & build the stage
5
C
C
Contract negotiation with roadies
2
–
D
Screen and hire security personnel
3
–
E
Ticket distribution arrangements
1
A
F
Organize advertising brochures and souvenir program printing
4
D
G
Logistical arrangements for music group transportation
1
E
H
Sound equipment arrangements
3
C, D
I
Processing of travel visas (for international groups)
5
F, H
J
Hire parking staff, and make parking arrangements
4
E, B, H,
K
Distribute media passes and arrange for MTV recording
5
G
L
Arrange for concession sales and restroom facilities
2
F
Table 2. Key activities for Rock ‘n’ Reggae project
Network diagram for the activities is shown on Fig. 1.
Figure 1. Network diagram for activities of Rock ‘n’ Reggae project
In order to plan and implement the project, it is necessary to determine the work breakdown structure of every activity (Westland, 2010). Since it is preliminary planning, key 4-5 elements will be outlined for every activity. Work breakdown structure for Rock ‘n’ Reggae project is presented in the list below.
Contract negotiation with selected music groups
Screening of appropriate music groups
Analysis of popularity and repertoire review of selected music groups
Establishing contacts with group managers
Analysis of availability of the selected groups
Signing contracts with available groups
Find a construction firm & build the stage
Tender and selection of contractor for stage design
Tender and selection of contractor for stage construction
Signing agreements with selected contractors for stage design and stage construction
Stage design and construction
Stage acceptance and contract finalization
Contract negotiation with roadies
Posting advertisement regarding technical job openings
Screening of applicants
Selection of best applicants
Signing contracts with selected applicants
Screen and hire security personnel
Tender between security organizations
Selection of best organization
Development of security requirements
Signing contract with the selected organization
Ticket distribution arrangements
Contacts with potential distributors
Review of prices and requirements
Selection of best distribution companies
Signing contracts with distribution companies
Design and printing of tickets
Organize advertising brochures and souvenir program printing
Tender between design studios
Selection of best applicant
Development of recognizable festival style
Design and printing of brochures
Design and manufacturing of souvenirs
Logistical arrangements for music group transportation
Analysis of expected group locations before the start of the festival
Selection of best transportation means for each group
Schedule of group arrival
Purchase of tickets and arrangement of transportation facilities for the groups
Sound equipment arrangements
Requirement negotiations with local technical professionals
Equipment negotiations with group technicians
Analysis of sound equipment available for renting
Selection of sound equipment
Signing rent agreement and renting the equipment
Setting the equipment
Processing of travel visas (for international groups)
Check the compliance of groups with P1 visa requirements
Contact the groups and determine which support personnel they need to bring with
Check the compliance of support personnel with P visa requirements
Gather all documents and request appropriate visas
Process and deliver the visas
Hire parking staff, and make parking arrangements
Determine location of parking and supposed number of parking places
Check compliance with civil regulations and availability of parking places
Advertise parking staff job openings
Screen parking staff and hire best applicants
Make arrangements with selected parkings
Construct temporary parking if necessary
Distribute media passes and arrange for MTV recording
Develop and announce requirements for getting media passes
Prepare online site for accepting media passes
Print and distribute media passes
Contact MTV recording and negotiate the conditions
Sign contracts with MTV recording
Arrange for concession sales and restroom facilities
Evaluation of required restroom capacity and available concession places
Development of application packet for concessionaries and restroom providers
Tender between concessionaries and restroom providers
Selection of best applicants
Signing contracts with these companies
III. Risk Analysis
a) overview of threats and uncertainties for the project
The following list contains the list of possible uncertainties and threats associated with the project:
Delays in completing the tasks due to personnel problems
Unfavorable weather conditions
Refusal to grant visas to certain performers
Insufficient place for all fans
Insufficient restroom facilities
Construction of an insecure stage
Unavailability of the groups
Failure to deliver the groups on time
Decision of a group to cancel performance after all arrangements were done
Illness of a performer
Security incidents
b) quantitative analysis of risks
In order to perform quantitative risk analysis, it is necessary to develop a numeric evaluation of the probability of the risk and its impact on the project (Kendrick, 2009). It is possible to evaluate the level of impact on the project as high (3), medium (2) or low (1), and probability of the risk should be evaluated as decimal number between 0 and 1 (Heldman, 2011). As a result, it is possible to evaluate overall effect of the risk on the project (Kerzner, 2009), and basing on this information, it is possible to select a risk response action: mitigation, avoiding, transferring or accepting (Lock, 2007). Table 3 shows the results of quantitative risk analysis for Rock ‘n’ Reggae project.
#
Risk
Probability
Impact
Total
1
Delays in completing the tasks due to personnel problems
0.25
3
0.75
2
Unfavorable weather conditions
0.4
3
1.2
3
Refusal to grant visas to certain performers
0.4
2
0.8
4
Insufficient place for all fans
0.6
2
1.2
5
Insufficient restroom facilities
0.5
2
1
6
Construction of an insecure stage
0.4
3
1.2
7
Unavailability of the groups
0.6
1
0.6
8
Failure to deliver the groups on time
0.1
2
0.2
9
Decision of a group to cancel performance after all arrangements were done
0.15
2
0.3
10
Illness of a performer
0.2
2
0.4
11
Security incidents
0.5
3
1.5
Table 3. Quantitative risk analysis for Rock ‘n’ Reggae project
According to Table 3, the most dangerous risks are the risk of security incidents, risk of insufficient place for all fans, construction of an insecure stage, and unfavorable weather conditions. Regarding first three risks, it is necessary to mitigate them by hiring reliable security professionals, performing external review of stage construction and ensuring that appropriate security regulations are developed. The fourth risk, unfavorable weather conditions, should mostly be accepted, although if it is possible to mitigate this risk by building additional constructions or creating an alternate plan for unfavorable weather, it is preferable.
Regarding the risks associated with group decisions, e.g. unavailability of the groups, decision to cancel performance or illness of a performer, these risks can be mitigated by making additional contracts with performers who could replace missing groups. Restroom contracts should be signed to avoid the risk of having not enough facilities for the festival. Delays in task completion are partly mitigated because the fifth employee will be available to replace someone of the four employees, if there emerge problems. Visa issues can also be mitigated by selecting alternative performers. Overall, most of the risks should be mitigated, some can be avoided and some should be accepted/mitigated.
IV. Cost Estimate
The project passed through 2 preliminary cost estimates before arriving to the final stage and complying with all requirements. Therefore, there are three budget tables, showing the dynamics of cost reduction for the company. Table 4 is associated with schedule shown on Fig. 2 in the next section, Table 5 is associated with Fig. 3 and Table 6 is associated with Fig. 4 consequently.
Table 3 shows the costs for the schedule when all activities were assigned to only one worker, and performed consequently. In this table, the costs of negative publicity are shown in a separate line after calculating the normal operating costs.
weeks
workers
cost
total cost
3
3
$200
$1,800
3
4
$200
$2,400
1
3
$200
$600
2
4
$200
$1,600
1
3
$200
$600
1
2
$200
$400
1
1
$200
$200
total cost
$7,600
2 weeks late
2
$2,000
$4,000
Total cost for the company
$11,600
Table 4. Costs for the first version of the schedule
Since the schedule shown on Fig. 1 does not comply with all project requirements, it was decided to assign 2 workers to task D, which was in the critical path. This task would be completed in 1.5 weeks instead of 3 weeks, and the costs associated with updated schedule are shown in Table 5.
weeks
workers
cost
total cost
2
2
$200
$800
1.5*
2
$200
$750
0.5
1
$200
$100
3
4
$200
$2,400
0.5
3
$200
$300
2
4
$200
$1,600
2.5
3
$200
$1,500
0.5
2
$200
$200
0.5
1
$200
$100
total cost
$7,750
1 week late
1
$2,000
$2,000
Total cost for the company
$9,750
Table 5. Costs for the second version of the schedule
(* denotes weeks where two workers are dealing with the activity)
However, in this version the project is still 1 week late, and it takes 11 weeks to complete it instead of 10 weeks. It was decided to assign 2 workers for the last 2 weeks of activity J “Hire parking staff and make parking arrangements”, so this activity would be completed in 3 weeks instead of 4 weeks, and during the last week of the project, there will be 2 workers dealing with this activity instead of 1. Moreover, 2 workers will be assigned to the activity I “Processing of travel visas (for international groups)” for the next to last week of the project, so this activity would be completed in 4.5 weeks instead of 5 weeks. In this way, all activities will be finished on Friday, 15 June 2012, as supposed. Table 6 shows the costs for the final version of project schedule.
weeks
workers
cost
total cost
2
2
$200
$800
1.5*
2
$200
$750
0.5
1
$200
$100
6
4
$200
$4,800
2
2
$200
$800
0.5
1
$200
$100
0.5*
2
$200
$250
1*
2
$200
$500
Total cost for the company
$8,100
Table 6. Costs for the final version of the schedule
(* denotes weeks where two workers are dealing with the activity)
In this version, cost for the company is minimal and the project will be completed on time. Minimal cost estimate for Rock ‘n’ Reggae project is thus $8,100.
V. Schedule Chart
This section contains three schedule charts: for the first and second versions of the project (Fig. 2 and Fig. 3 correspondingly) and for the final version of the project (Fig. 4).
