Project Initiation Document For Youth Center And Fuel Station Project

Youth Center Plan

The Synergy Team has been gathered by SuperValu to complete a feasibility study which will be analysing the viability of opening one fuel station alongside their existing supermarkets. This document will be analysing the different stages within the project with particular focus on the implementation and hand-over phase.
Through discussions regarding how to complete this project we have allocated different tasks to each of the key members, ensuring that these adhere to each individual’s strengths. This will further allow the thorough completion of the project. Throughout the project we will work together to ensure each member is on track with their work and also air personal thoughts and views to further ensure every detail of the project has been covered.
This project will be a venture into a new market for SuperValu, being the first petrol station alongside their brand. After a year SuperValu will reflect on the project and if deemed successful they will consider opening more petrol stations where possible in the future.  The project is also adhering to the business objectives as shown within the next section.
              Great care will be taken throughout the project to ensure all safety standards are met and every detail has been taken into account beforehand to reduce the chances of any adverse impact from risks.

• Increase market share by 5%. SuperValu are behind the times by not having a petrol station and this has been acknowledged by the stock market. By creating one they will better rivals to their competition, Tescos. This is because people will find Supervalu more convenient if they can get their petrol at the same time and broaden the market.
• Diversify into adding fuel stations by 2015. Through installing easy to use technological petrol stations staff costs will be kept at a minimum, therefore SuperValu will only require two cashiers present for the customers less comfortable with technology. This will help make profits quicker as there will be fewer outgoings.
• Supervalu will launch their petrol station by December 2014. They aim to increase their revenue and take a larger share of the target market by introducing petrol stations.
• Improve Customer satisfaction due to providing more services within local areas, making their shopping experience greater and easier.
• Enrol employees onto training and development courses in order ensure they are competent in their new job. This means that the service provided in this new area is at a high level meaning customers will be encouraged to use this petrol station, which leads to more revenue.

The project will help SuperValu to meet the above objectives opening a fuel station they are diversifying into new markets of which they have no previous experience with. This will therefore increase cash flow of the business and provided the petrol station remain profitable throughout the year it will help to increase future profits which can be invested into the opening of new SuperValu stores. Consequently more stores and the diversification into the Petrol market will help to further market share.

• Finish the project  and present the Project Initiation Document on the 3^rdApril 2014, within given budget;
• Implement a fully functioning petrol station; which can hold a maximum of 30 cars.
• The petrol station is to have 16 fuel pumps; 8 of these to be next generation and 8 current generation; the pumps selling petrol, diesel and electric fuel meaning the petrol stations will meet the needs of all customers.
• To have trained SuperValu in Staff and Customer Awareness and other necessary areas. This will be included in the handover period.
• When opening the petrol station it will be well publicised and will be opened by a celebrity.

This project will involve the demolition of the current infrastructure, being the warehouse, which is where the new petrol station is to be constructed. Post demolition involves building the new petrol station infrastructure and also building the kiosk for the cashiers. Installing the petrol pumps will require the necessary underground storage tanks and hiring an IT technician to install the two types of pumps, which will be done to a high standard.

All legislation will be studied and everyone will have an understanding of what planning permission has been passed and all the health and safety levels required to be met. This will mean no discrepancies will appear later in the project and everyone working there will be kept safe. This will also affect all future customers as they will have a safe petrol station to use.

Fuel Station Plan

The project will also provide support in the Handover Phase of the project and will provide SuperValu with Staff and Customer Awareness training. This will mean that everyone will be educated in the new petrol station meaning that once again the experience for the customers will be more positive increasing customer satisfaction.

If the project does have any unforeseen issues then SuperValu will still cover all costs that arise and cover the extra labour costs. However, this could then cause issues with the dates on the critical path analysis and consequently opening dates. Having a celebrity to open the petrol station will be good for publicity however because of committing to a certain date; any issues that do arise will need to be quickly and efficiently amended.

At the end of the project, SuperValu will own one fully functioning petrol station consisting of 16 fuel pumps, 8 are current generation and 8 are next generation. The petrol station will have room to hold a maximum of 30 cars. There will be a small building, kiosk, where there is room for two cashiers to sit and take payments. It will have gone through a handover stage which would have involved Staff and Customer Awareness training. By December 2014 there will have been a well-publicised opening event where a celebrity will officially open Supervalu’s first petrol station.

• There are time constraints for the project. The project initiation document needs to be done by Thursday 3^rdApril 2014. The next time constraint is the implementation of the project and the handover phase should take place from May to December 2014;
• The petrol station needs to be opened on time as SuperValu require it to be opened by a celebrity. This means the date of the opening needs to run completely on time as they will have to book the celebrity;
• The project must not differ from the planning permission plans that have been agreed as this could later cause issues;
• Resources can only be delivered between 09:00 – 17:00;
• Availability of trained individuals to install the next generation fuel pumps, if they are not available it could delay various stages of the project;
• Law legislations need to be adhered to such as health and safety measures must be taken into account;
• Local residents opposing the project initially, although they have been persuaded around may cause constraints later on during the project implementation.

• Assume planning permission has been granted
• Assume permit for Petrol Pumps is gained
• Have met with local residents and reassured them with what is happening. Ensuring that the majority are happy with the plans to go ahead as originally suggested, minimising complaints.
• Interest rates are going to stay stable.
• Contractors have already been selected.
• Layout for the petrol station has been designed a requirements for: types and amounts of each generation pump; enough space for 30 cars; kiosk for two cashiers.
• All resources required for the completion of the project are available and without delay.
• Prices for required resources stay similar to findings show to ensure project stay within budget.

The work breakdown structure is the hierarchically structured division of the work required in the project for all those involved to see. The WBS can be broken up into different ways, in this instance it is broken by main components, subassemblies, all the way down to individual activities that are no shorter than half a day in duration. These activities can then be grouped into work packages and assigned to task owners, or in this case, resources. The highest level to this WBS is the project itself and from there the different time stages it will go through. To make the hierarchies clear simple numbering has been used. Concurrently to the WBS, the schedule of activities and network diagram are formed these display more detail with dependencies and durations but use the same titles and numbering and therefore all three link directly together.

Schwable, K. (2009) explains that after identifying the important skills and types of people needed to staff a project, the project manager should work with the directors to create an organisational chart for the project. A project organizational chart is a graphic representation of how authority and responsibility is going to be distributed through the project. Diagram 1 is a pure project structure. Cadle, J. and Yeates, D. (2008:41) suggests that “It is vital that this framework is established at the outset and well understood by all concerned since otherwise it will be impossible to get important decisions made and adhered to”. The main advantage of the project structure is focus; everyone shares the same purpose, to carry out the project. Maylor, H (2005) describes a further advantage is that the labour force is highly flexible. Thus labour can then be brought in as and when it is required. This reduces the cost of a fixed overhead for labour when staff may not be required for the whole duration of the project. However the project team is only temporary and so these employees have no commitment to the success or quality of the project so it is important to monitor performance.

Work Breakdown Structure

Role	Responsibility
Project Manager	Pinto, K (2013) explains that the Project Managers job encapsulates the role of a CEO and is responsible for the complete project management process from start to finish. The Project Manager is the person responsible for ensuring that the Project Team completes the project within budget, to schedule and within scope.   The Project Manager is also responsible for communicating with the Director/Shareholders and reporting the status of the project and assessing any risks involved. The Project Manager develops the Project Plan with the team and manages the team’s performance of project tasks. It is the Line Manager that is responsible for communicating between the Project Manager and Project Team. Staff will need to be enrolled on appropriate training courses; the Project Manager is responsible for this.
Accountant	The responsibility of the accountant includes organizing and keeping track of all financial debits and credits of the project to ensure it is completed within budget.
Architect	The Architect is responsible for the planning and drawing of the petrol station. The Architect needs to ensure the quality of the design and ensure that design goals are met. The Architect is also responsible for reviewing requirements needed to conduct the project and briefing the Construction Manager about how to conduct the project.
Administration Staff	The Administration Staffs responsibilities for the new Petrol Station will be too order and deliver materials to site on time. Organise the staff salaries and working hours and arrange contracts for On Site Workers and sub-contractors.
Site Manager & Deputy Site Manager	The Site Manager is concerned with the day-to-day planning, organisation and control of the construction site, for example the organisation of resources and materials. The Site Manager is responsible for ensuring that the Petrol Station Project is completed on time, within budget and to the required quality set by the Project Manager. Additionally a main responsibility for the Site Manager is to make the best use of resources. Therefore maximizing productivity and making sure that the right labour skills are available to complete tasks. It is their responsibility to make sure materials are being used efficiently and are not wasted. Lastly, The Site Manager is responsible for all operations on site. When delegating tasks or bringing in sub-contractors for specialist tasks such as the Fuel Tank Professionals the Site Manager is responsible for overseeing the quality of their work and employee safety.
Fuel Tank Professionals	Our Fuel tank professionals will be responsible for the instillation of the equipment used to recover vapour and the testing of this equipment. The Fuel Tank Professionals will also be ensuring that the pumps are working correctly.
Hardware/ Software Specialists	Hardware/ Software Specialists will be installing the 8 current generation and 8 next generation fuel pumps and the emergency stop button. Therefore they are responsible for testing the emergency stop button to make sure it is working correctly and meets regulations.
Construction Manager	The Construction Managers is responsible for the running of all areas of the construction site.  Their main responsibilities include; preparing the site and liaising with the other construction professionals such as the Architect before construction work starts. The Construction Manager is also responsible for the safety of their Construction Workers. They need to make continuous safety inspections of the site when work is underway and during the project, and ensure regulations relating to health safety are strictly followed. Contingency planning to prevent problems on site before they occur is a further responsibility of the Construction Manager.
On Site Workers	On Site Workers are responsible for completing tasks productively under the supervision of the Construction Manager. They’re responsible for attending work each day and being punctual. The On Site Workers are trained in using heavy machinery and demolition equipment so specific professionals are not required. Therefore it is their responsibility to make sure tasks are completed to a professional standard.
Electricians	The Electricians will mainly be responsible for installing the Electric/Phone lines to a high standard that meets safety regulations. They will also be expected to ensure that the electrics and phone lines are working correctly and fully tested.
Plumbers	The Plumbers are responsible for; the installation of the water pipes, ensuring that drains and pumps are fitted appropriately and installing drainage grills.   They are also responsible for testing the water system to make sure it is fully operational.

Stakeholder	Possible Impacts on Them & Their Interests in the project	Possible Impacts on Project	Position	Sensitivity, Interest and Power	Management Style
Government	Increased amounts of taxation received which is beneficial to them. May have particular interests on the impacts on the environment, with the latest trend being environmentally friendly.	The legislations put in place could put constraints the project For example laws regarding distances of pumps and emergency stop button will affect the design of the Petrol Station.	For – no protests against the project have been voiced.	Sensitivity is low as project in not deemed as large scale to them. Low to moderate interest with high power and influence.	No need to keep them up to date, unless there is a significant problem such as fuel spillage, pollution or a large fire.
Residents	More traffic through the town and increased noise levels during the construction. Interests them as new jobs are created via the project and also if local trade increases this will again further employability.	They could delay the start on the project and/or various stages if they are unhappy with certain aspects and proceed to contact the council or protest.	For – they have previously voiced their opinions and through gentle persuasion they have come round to the idea.	Sensitivity is high as there have already been issues raised. High Interest with low/moderate power over project.	Need to be kept updated on the traffic and stage of progression which can be done through local newspapers or signs on construction site.
Shareholders	Post Project, assuming profit margins are increased, dividends will consequently increase. However, if trade is affected during the project dividends will be impacted in the short term.	If they protest to the project it would delay the start of the project.	For – chances of increased profit will please shareholders.	Low sensitivity, no issues have been raised so far. High Interest with high power.	Need to be updated if anything major changes. Generic updates and landmark stages of completion should be conveyed.
Management	Employee’s punctuation may be impacted due extra traffic. Could also make it harder for consumers to access the supermarket, therefore impacting on trading, which could be reflected in lowering the number of employees.	The views of management are more likely to be taken into account by SuperValu. These could be eased through gentle persuasion and good communication.	For	Moderate sensitivity. Moderate power with high interest regarding the future of the supermarket.	Should be kept up to date with any major developments and informed initially of various aspects of the project.
Local Council	Could impact on the demographics of the town, increasing the employability and also the income of the town if passing trade is increased.	Planning permission could be rejected. If any complaints come through regarding the project it is increased paperwork for the council, but they could also take action and hinder the project.	For – increased employability within the local area, increase of town profits.	Moderate sensitivity, as long as legislations are abided there should be no major issues. High Interest with high power over the project.	Will be informed originally for planning permission request etc., throughout the project only minor updates are needed. In the event of a major problem delaying the project they should be informed.
Local Businesses / Competitors	Local shops could benefit from the passing trade through the town. Competitor’s sales may be impacted due to new completion. They will need to actively compare pricing.	Could increase their profits through the increase of passing trade. No impacts on the project itself, any possible influences will be after opening.	For – will increase their profits. Short term problems of construction traffics. Against – Local Business will not be in favour	Low Sensitivity. Low power with a moderate interest.	They do not need to be informed specifically regarding project as they have low power.
Local Contractors/ Suppliers	If local suppliers are chosen to supply the project, then they will be dramatically increasing their profit.	Local Suppliers are not used to such a large project; they may not have the recourses or materials to handle a project on this scale. They could also cause delays through if delivery slots are missed.	For	Moderate sensitivity, if a large scale firm is chosen in favour of local contractors/suppliers then issues may be raised. High Interest with low power.	Need to be kept up to date, but not a high priority for the project manager. Use of local papers can be used in conjunction with this as well as residents.
SuperValu	Diversifying into a new market, they will need to research fuel prices and the state of the current market they are entering.	Have total control over the project, if designs and layouts are not accepted then this will delay different tasks within the project such as the construction of buildings.	For	High sensitivity, they own the project. High Influence.	Need to be kept updated with any changes/delays to project throughout the duration
Project Sponsor	They are impacted at every angle as they are funding the project; success of the project needs to be imminent.	They have high power over the project; if unhappy with any process they could withdraw their funding. Keeping them well informed will aid in keeping them happy.	For	High sensitivity, need to keep the sponsor on board. High interest and high power.	Need to be kept up to date at all stages of the project.
Project Manager	Project will increase their income and take up a lot of time and commitment throughout. Could cause a lot of stress regarding the coordinating and planning of various tasks.	Project manager influences every aspect of the project. Ensuring timings and team members are working towards the same overall project objectives.	For	High Sensitivity, high interest and high power over the project.	The Project Manager needs to be up to date at all times. This will ensure the correct communication with stakeholders and better co-ordination.
Project Team Members	Increasing their income and also furthering their skills.	If they are off ill it could potentially slow down tasks or halt them completely depending on the number/those affected.	For	Low Sensitivity as they have no particular interests in the project itself. Limited power over the project.	No specific updates of tasks in which they are not involved with, unless it affects the critical path of the project.  Need to ensure they are working as a team and towards same goals.

The above stakeholder analysis outlines internal and external stakeholders, of which both are highly important to the success of the project. Without managing stakeholders effectively, the success of the project will be hindered. This information does not need to be shared and is purely used as leverage for the project manager. This stakeholder analysis portrays that each stakeholder has a different interest in the project and are each impacted on in a different way. It further demonstrates the different impacts exerted upon the project. When analyzing the various stakeholders it is key to look at their influences on the project and their position in order to determine the predictability of their behavior. If the stakeholder’s position and sensitivity are determined, it will prove more straightforward to assess their management approach; if highly sensitive they will need to be analyzed further with the likely consequence being they should be kept informed throughout the project in order to keep them satisfied with progress and reduce their sensitivity through gentle persuasion where possible. In Appendices, Figure 3 shows this stakeholder analysis in a visual way on a graph, with less detail. This may help with the clarity of each stakeholder’s current position.

Good communication, being proactive and planning throughout the duration of the project is essential in order to manage stakeholders effectively. If different stakeholders communicate with each other it will minimize the amount of complaints and disturbances to the project. This is due to the fact that by talking to each other they are reassuring themselves and also conferring across different viewpoints.

In order to assess the importance of each Stakeholder, Figure 4 in appendices, has been created., this takes into account four different aspects on a scale of 1 to 4 (1 being low; 4 being high). Further allowing the project manager to address those with a higher importance first, working down the list and also maximize the implementation of efficient management.

The schedule of activities acts as a list showing all the activities and in the project, their individual durations and dependencies. It is used as a basis to create the Network diagram that displays the project critical path (the path of linked activities that will delay the whole project if one is delayed even slightly). This schedule of activities has been broken up into the different Milestones for more detail and at the end there is a total of all the activities durations, of course this is different to the total project duration as some activities will run at the same time.

Organizational Chart

The Network diagram (also known as the Precedence Diagram) is created concurrently to the WBS and Schedule of Activities; yet it relies on these to be accurate and nearly complete as it’s where it draws its information from.

Miller, 2008 explains that the Network diagram is a time-orientated diagram that follows the logical order of activities. There are different network diagram layouts and for this project we have used an activity-on-node diagram as it allows for more detail into the dependencies and durations. In this layout boxes represent the activities and arrows the dependencies.

The EST, LST, EFT, LFT are all calculated by doing 2 passes through the network, the Total Float is the extra time that the activity can run over its expected finish time without effecting the critical path. For example the activity 3.2.1 “Ensure Pumps are Working Correctly” only has a float of one day, and if it is delayed by this then it will the whole project. Whereas activity 3.2.4 “Test CCTV is Working Correctly” this can be delayed by up to 12 days before it effects the total duration. The activities without any float are what make up the critical path and with these we know how many of the activities could be delayed without impacting the end date and by how much they can be delayed by. This means extra resources can be allocated to the activities that are on the critical path to minimise the risk in them being delayed. (Cadle and Yates, 2008)

Total project time is the shortest amount of time that the project can be completed in, it is calculated by taking into account the activities durations and dependencies. Our total is 73 days (which equates to just over 12 weeks, or 3 months). This means that there isn’t much room for lag and any slight delay could have huge implications for completing on time. However this is different to the actual project duration as duration depends on what resources are available and if there is a delay extra resources can be allocated is funds are available.

The network diagram is Figure 4 in the appendix; you can see the critical path highlighted in dark blue arrows and comprises of the following activities:
1.1.1 Study Legislation
1.1.3 Design the Floor Plan
1.1.4 Get Floor Plan Approved by Official
1.2.1 Order and Deliver Materials
1.2.3 Install Health and Safety Signs/Warnings
1.3.1 Order and Deliver Skip, Tools and Heavy Machinery
1.3.2 Clean the Site of all Debris
1.3.3 Demolish Warehouse Building
2.1.1 Oder and Deliver Digger and Foundations Materials
2.1.2 Dig Foundations
2.1.3 Install Underground Petrol Tanks
2.1.4 Install Necessary Pumps/Pipes and Drainage Points
2.1.5 Spread Concrete
2.2.1 Order and Deliver Building Materials
2.2.2 Assemble Pillars and Roof
2.2.3 Install Electrics/Water/Phone Lines
2.3.2 Install Pumps
2.3.3 Install Emergency Stop Button
3.2.2 Test Emergency Stop Button is Working Correctly
3.3.1 Enrol Staff on Appropriate Training Courses.

Roles and Responsibilities

Miller, 2008 points out that there is a huge flaw in the Network diagram logic, and that is that it is often created with the view of resources being limited and therefore being delayed by lack of resources, when in fact this is calculated when resources are scheduled. An example of this is the Activity 3.2.3 which is “Ensure Electrics/Water/Phone Lines are Working Correctly”, in the schedule of activities and network diagram it happens at the end of the project but in the Schedule of resources the Electricians and Plumbers are available to do the checks immediately after they are installed, so in fact it will occur earlier on. To avoid this error in logic we assumed all resources were unlimited when writing creating it.

Cadle, J. & Yeates, D. (2003) explain that once schedules are developed that identify the estimated durations and sequences of activities then a resource plan can be developed. The schedule of activities list shows many activities may compete for the same resources. A resource plan allows activities to be scheduled according to when they are needed and when resources are available.  A resource plan (see table 4) will guide the hiring of staff by identifying the specifically skilled people needed to complete the project on time and to scope. The total duration of this project is 301 days therefore the project will be completed within time.

Safety fencing – 1.2.2 ‘Erect the Fencing’ to ensure no trespassers are on site and to meet health and safety legislations.

Security and safety signs – 1.2.3 ‘Install Health & Safety Signs / Warnings’ to notify the general public and staff about the dangers of the site.

Skip for debris – 1.3.1 ‘Order and Deliver Skip, Tools and Heavy Machinery’ skip to place all debris from site in and remove. A separate skip is required for recyclable materials such as brickwork and building residue that will can be reused by the local community.

Tools to remove residue – 1.3.1 ‘Order and Deliver Skip, Tools and Heavy Machinery’ for example  shovels and wheelbarrows to remove smaller debris.

Disposable tubes – 1.3.1 ‘Order and Deliver Skip, Tools and Heavy Machinery’ help to remove residue from inside the building before it is demolished and reduces risk of onsite workers getting injured.

Machinery for heavy lifting – 1.3.1 ‘Order and Deliver Skip, Tools and Heavy Machinery’ for example a fork lift to remove heavier debris from site.

Project Manager

Machine for demolition – 1.4.2 ‘Demolish Warehouse Building’ A high reach arm as it can demolish buildings over 20 meters high and will not disturb the local residents as much as an Implosion technique or create as much noise, vibrations and dust as a crane and ball.

Digger – 2.1 ‘Digging Foundations’ used to dig the foundations for the 8 current and 8 next generation pumps.

Foundation beams – 2.1.1 ‘Order and Deliver Digger and Foundation Materials’ need to be ordered to exact measurements to ensure smooth installation.

Petrol tanks – 2.1.3 ‘Install Underground Petrol Tanks’

Drainage grills – 2.1.4 ‘Install Necessary Pumps / Pipes and Drainage Points’ drains are required to ensure there is no flooding when it rains.

Pipes & Pumps – 2.1.4 ‘Install Necessary Pumps / Pipes and Drainage Points’ required for the correct installation of the petrol tanks and pumps.

Concrete – 2.1.5 ‘Spread Concrete’ cement and cement mixer are required to poor the concrete around the foundations and before the floor can be installed.

Pillars and roof – 2.2.2 ‘Assemble Pillars and Roof’ a congregated metal roof is required to protect the fuel pumps from the weather

Electric/Water/Phone Lines – 2.2.3 ‘Install Electric/Water/Phone Lines’ water and electricity lines and the road layout required to accommodate 30 cars waiting for fuel.

CCTV – 2.2.4 ‘Install CCTV’ CCTV is required ensure safety of the petrol station. And also ensuring no customers fill up and drive off without payment.

Fuels Pumps – 2.3.1 ‘Order and Deliver all Fuel Pump Equipment’ 8 current and 8 next generation petrol pumps are required.

Emergency stop button – 2.3.3 ‘Install Emergency Stop Button’ required for health and safety reasons and by law. It is required to be 3 meters away from fuel pumps.

Equipment to recover vapour – 2.3.4 ‘Install Equipment to Recover Vapour’ equipment is required to recover vapour spills to meet health and safety legislations.

Kiosk – 2.3.5 ‘Installation of Kiosk’ required for customers to make payments.

Post ProjecFuel price sign – 3.1.2 ‘Assemble Sign’ the fuel price sign is required to indicate the fuel price to prospective customers.

Deciding if to buy or lease the pumps

Pumps	Quantity	Price	Total
Standard fuel pump	8	£15,000	£120,000
Next generation fuel pump	8	£17,500	£140,000

Maintenance for the standard fuel pump will be and extra £250 a month and the next generation fuel pump will be an extra £300.

The figures in 10 years’ time comparing leasing and buying:

Buying Pumps	Initial price	Maintenance costs	Years	Total
Standard fuel pumps	£120,000	£250	10=(120 months)	£420,000
Next generation fuel pumps	£140,000	£300	10=(120 months)	£500,000

Leasing Pumps	Cost per pump per year	Number of pumps	Number of years	Total
Standard fuel pumps	£750	8	10	£60,000
Next generation fuel Pumps	£750	8	10	£60,000

In 10 years’ time it’s highly likely that the petrol pumps will need replacing due to being out of date. The reason for this is the constant technological advances; in a decades time there will almost certainly be a reason to update the petrol pumps.  It could cause some risk to lease to the pumps because you will always have to make sure you can cover the costs and that the company is a trustworthy company to lease from with but overall it is a considerable amount cheaper to lease the petrol pumps and not buy them.

Accountant

Materials 

• Even though it has worked out considerably cheaper to lease petrol pumps, as Supervalu would like to buy them outright the budget will include the costs of buying the current and new generation petrol pumps not leasing.
• Onsite workers already own all the smaller tools needed, such as hammers and spanners etc. They will use their own tools so no extra expenses will come from this area.
• All delivery costs for materials are included in the price of the materials. For example the cost of a petrol tank will include the costs that occur while delivering it; such as the delivery drivers wage and the vehicle hire.
• The numbering signs on each petrol station will come with the pump, so there will be no extra costing to deal with this.
• Once skips are filled they are removed and replaced with new empty skips, so the project manager has only ordered one because of this system.
• One tank will be linked to four petrol pumps, meaning that we will need four tanks and four vapour recovery units. Vapour recovery units are now a legal requirement so every tank will need one.

Employees

• Most employees are from the surrounding area, such as onsite workers as this will eliminate expenses such as accommodation.  The costs that do occur such as petrol costs have already been dealt with in their wages. For the employees such as IT specialists, who may not be local and have further to travel have had their expenses covered in their wages.
• There is normally always a project representative present for a project; in this case it will always be the project manager as the project manager is very dedicated to this project.

Machinery

• The crusher machine that we are using to deal with the materials from the demolition of the warehouse creates gravel. Gravel is the main composite when making cement, so as a way of saving costs we will use the remains of the warehouse to make cement which will save some money and is a way of recycling materials.
• Machinery start being paid for once they arrive on site, the costs of the machinery will be split over the months according to when they are being used.

Schedule

• The project will be in construction 6 days a week, Monday to Saturday. The days are full time meaning that the project will finish in the 3 month time period ready for the 2 month handover period.
• The post implementation stage and the customer awareness training which takes place for two months after the petrol station has been built will run from Monday to Friday. There will be two people employed for this stage.
• The project will commence on Saturday 3^rdMay 2014, there will be 25 working days in May, a further 25 working days in June. The project will then be completed on Saturday the 26^th of July 2014, meaning the project is running on time.

Workers	Total cost over the project
Onsite workers	£74,400.00
Fuel Tank Professionals	£13,000.00
Construction Manager	£11,000.00
Project manager	£36,500.00
Site manager	£32,850.00
Deputy site manager	£29,200.00
Electrician	£5400.00
Plumber	£5400.00
Accountant	£350.00
Architect	£400.00
Hardware/ software specialists	£8,000.00
Administration Staff	£10,800.00
Post Project implementation Staff	£33,600.00
Total	£260,900.00

Materials	Overall Cost
Bulldozer	£1,050.00
Skip	£2,450.00
Recycling skip	£2,695.00
Scaffolding	£4,350.00
Cement Mixer	£4,800.00
Crane	£3,000.00
Digger	£5,400.00
Crusher Machine	£3,300.00
Fuel Tank and piping	£40,000.00
Kiosk for two cashiers	£20,000.00
Cement mix	£500.00
Bricks	£1,500.00
CCTV	£200.00
Fuel price sign	£500.00
Emergency stop button	£50.00
Metal pillars to hold petrol station roof	£3,200.00
Corrugated iron roof	£4,500.00
Fencing	£500.00
Health and Safety signs	£240.00
Phone line	£200.00
Drains	£200.00
Plumbing	£200.00
Vapour recovery unit	£48,000.00
Petrol pumps	£260,000.00
Total:	£406,835.00

	May	June	July	August	September
Employees
Onsite workers	£15,600.00	£32,400.00	£26,000.00
Project Manager	£12,500.00	£12,500.00	£11,500.00
Site Manager	£11,250.00	£11,250.00	£10,350.00
Deputy Site Manager	£10,000.00	£10,000.00	£9,200.00
Administration Staff	£3,600.00	£3,900.00	£3,300.00
Construction Manager	£1,500.00	£4,500.00	£5,000.00
Architect	£400.00
Accountant	£350.00
Fuel Tank Professional		£4,500.00	£8,500.00
Hardware/Software Professional			£8,000.00
Plumber			£5,400.00
Electrician			£5,400.00
Materials/ Resources/ Machinery
Bulldozer	£1,050.00
Crusher Machine	£3,300.00
Cement Mixer	£1,056.00	£2,400.00	£1,344.00
Skip	£550.00		£650.00
Recycling Skip	£605.00		£715.00
Fencing	£500.00
Health and Safety Signs	£240.00
Digger		£5,400.00
Scaffolding		£2,320.00	£2030.00
Cement Mix		£500.00
Bricks		£1,500.00
Crane			£3,000.00
Phone Line			£200.00
Drains			£200.00
Plumbing(pipes)			£200.00
Vapour Recovery Equipment			£48,000.00
Standard Petrol Pumps			£120,000.00
	May	June	July	August	September
Next Generation Petrol Pumps			£140,000.00
CCTV			£200.00
Fuel Price Sign			£500.00
Emergency Stop Button			£50.00
Metal Pillars to hold the Petrol Station Roof			£3,200.00
Corrugated Iron Roof			£4,500.00
Fuel Tank and Piping			£40,000.00
Kiosk for two cashiers			£20,000.00
Handover Period/ Staff Training				£16,000.00	£17,600.00
Total	£62,501.00	£93,795.00	£477,839.00	£16,000.00	£17,600.00

The overall total cost of the whole project is £667,735.00.

By looking at the budget we can see that the majority of costs occur in July, which out of the three construction months it totals 75% of costs. The items needed in July are crucial to the project meaning that it is important the budget is monitored and controlled.

Risk ID	Description of Risk	Risk Owner	Probability of Occurrence (1-5)	Cost Impact (1-5)	Risk Scored	Risk Management	Explanation
A	Hazardous Chemical Spillage, petrol spillage can prove costly to the project and the environment.	Contactor Delivering	1	5	5	Ignore/ Transfer	The responsibility is of the company delivering. Any costs can be transferred through site insurance. Although there is a low risk, if this occurs it could cause greater damage to the environment with hazardous consequences.
B	Injury onsite to Project Team Workers through general site dangers and due to dangerous machinery.	Site Manager/ Delivery Contractor	3	3	9	Reduce/ Transfer	Injury can be reduced through the correct safety training, with signs visible which demonstrate the do’s and don’ts’s and also safety equipment to minimise risk. Any injuries will be covered under health insurance which will therefore transfer the risk. Dangerous machinery may be worked by contractors delivering or specialists, reducing chances of injuries or damages to the machinery.
C	Site Safety to reduce chances of Vandalism	Site Manager	2	1	2	Transfer/ Reduce	Site insurance should cover costs. This will reduce the impact on the project, however could delay tasks due to clearing or removing vandalism. If vandalism does occur the costs will be relatively low.
D	Pedestrians/ Public could be a potential hazard if they are nearby. Construction traffic will prove hazardous to them.	Site Manager	3	2	6	Avoid	Through installing the correct signs and makeshift paths for pedestrians it will reduce hazards to both the project and the pedestrians.
E	Gas Leaks/ Tank Leaks	Site Manager	2	3	6	Avoid/ Reduce	By having trained employees/contractors conducting the refills and installation processes, this risk can be avoided.
F	Resources being delayed or damaged upon arrival	Contractor Delivery	3	4	12	Reduced	This can be reduced as they can ensure traffic is being properly directed to allow the smooth transition of recourses. If delayed it will impact the entire project causing major problems. If anything is damaged in transit or on arrival it may take weeks for another delivery of the same materials. This could cause major delays to the project and prove costly if wrong materials have been ordered accidently.
G	Staff Safety during demolition, a lot of dust will be in the air and dangerous machinery will be present.	Site Manager	2	2	4	Avoid	This can be avoided through Health and Safety equipment such as dust masks etc. and ensuring only those operating or nearby are clear on what they should be doing and where they can go.
H	Local Contractors- Scope of project being too large.	Project Manager	1	1	1	Ignore	This will all be analysed when contracting them, if issue arises it can be avoided through choosing a larger organisation or through outsourcing.
I	Staff Illness	Team Manager	3	2	6	Contingency	Ignore- Staff are contracted, so will need to be replaced if ill, low impact on the project unless significant number are ill.
J	Sponsor withdrawing funds if unhappy with the project.	SuperValu/ Sponsor	1	5	5	Avoid	This risk can be avoided as they will be involved with every stage of planning and be kept informed throughout the project.

The above Risks Register helps the Project Manager and various key stakeholders to analyse any possible risks which could jeopardise or hinder the project and further identifies their causes and potential impacts. This will enable the project manager to plan for future risks and help to avoid or reduce them where possible consequently minimising the chances of anything hindering the projects development.

Insurance is one of the major elements in reducing the cost impacts of certain risks (which have been described above in the explanation of the risk); through taking out insurance it acts as a contingency plan for the company eliminating a large amount of the costs. This will benefit the Sponsor greatly as they are unlikely to want to pay out for a risk which could have been avoiding or passed onto the insurance team. Consequently promoting the smooth running of the project as much as possible.

Risks with a low risk score can be effectively ignored with attention being focused on those with a higher number, enabling efficient time management and also promoting management by exception. In appendices Figure 8 in appendices further shows this risk register in a visual way using the risk ID to show which tasks need to be focused on more than others. This will help the Project Manager to see which risks, via their ID, need more attention than others.

Monitoring and control is very important when completing a project. A main area to monitor is the budget; this can be done by using the Earned Value Analysis graph (EVA) (Cadle and Yeates, 2008). This is a graph where you can compare actual costs and budgeted costs. By choosing an exact day, it is easy to see if the budget is being kept or if there is a difference in costs; this is called the Cost Performance Index (CPI). This is calculated by dividing the budgeting costs by the actual costs. If the CPI is below 1 then the project is over spending, if it is above 1 then capital is being saved. To find out the exact amount that the activity is costing, and then you divide the budget by the CPI, giving the actual cost. Out of the three months it takes to construct the petrol station, the third month is 75% of the expenditure. This means that it is important that the project doesn’t over spend in the earlier months or the project could face delays in handing over the petrol station. A result in overspending could mean the wages of the employees could be late which will mean unhappy employees. This can then have a knock on affect to the petrol station, as they might be less motivated, meaning they could be more likely to make mistakes. This once again will affect the budget because materials can be wasted or a job might need redoing. If something does go wrong which requires more funding it is important to control where the money is taken from. An example of this is the extras, such as the sign, can be bought at a later date. So it is important to always monitor and control the budget as efficiently as possible.   

Architect

The main goal of monitoring and control is to make sure the project hits milestones on time and that the project runs smoothly, so the project will be monitored to make sure that it is always ready for the next stage. This can be measured using a Milestone slip chart which is described by Cadle and Yeates (2008), as a table that compares planned progress against actual progress. This will show the project manager what changes may need to be made to save costs and keep to the schedule as much as possible. For example, activity 2.2.3, installing electrics and plumbing, is scheduled to start on day the 56^th working day. If the activities before this have not been finished then this will not go ahead as scheduled. The plumber and electrician are there specifically for this activity, so if it is not possible for them to proceed and they turn up ready to work; they will have to be paid for a day’s work, which is an unnecessary cost. Another way of monitoring is to have weekly meetings with all the managers. They can then inform each other of how activities are running and check that these are all running on time. Once an activity has been completed it is checked off and this will keep track of progress. One way of controlling deadlines is by adding extra employees to help meet its target. It is important to analyse the situation properly; will it be more costly to hire more employees or miss the target deadline and cause everything to be moved back? By looking into all scenarios this will help control situations and get the best possible outcome.  

Over a five month period it is likely that an employee may become ill or not make it into work as scheduled. Depending on which employee and what length of time they are absent, this could affect the project deadline. There will be a clocking in and out system for all employees, so this is a way of monitoring who is on site that day. If, for example, an onsite worker does not turn up they will be easier to replace because there are other onsite workers who can inform the new employee. However, if the project manager doesn’t turn up this could affect the deadline because there is only one project manager. A way of controlling this is for the project manager to use the Project Management Information System (PMIS) which Raymond and Bergeron (2008), describes the system as a communication method, any changes to activities and keeps everyone up to date on what is happening which would be useful if the project manager is absent.

The project will need to be monitored in other various ways to make sure it meets deadlines. Monitoring deliveries is very important. There is always a risk that it could either be late due to traffic issues or possibly damaged on route which will affect the projects progress if the material needed is not accessible. A way of trying to control this is by ordering materials from local places where possible. This in turn will mean that the materials will have less distance to travel, meaning less chance of being damaged while travelling and limiting the chances of getting stuck in traffic. If local businesses cannot fulfil all the necessary materials and we need to order from further afield, it is important that we monitor any road works happening. This will help the deliverers avoid unnecessary congestion. There are many other situations that may occur and the project needs to make sure they are equipped to deal with it.

The recommendations as stated in detail below are the various aspects in which Synergy think there could be changes made to benefit the project.

• Leasing the petrol pumps proves to be much more cost efficient for SuperValu and will also save the Sponsor money. Maintenance of the pumps and fitting will be provided by through company they are being leased from which will save both time and money on the resources and fittings. This may also prove beneficial as the company involved will be able to fix the pumps at the first available time and may save SuperValu time phoning specialists to organise dates in which they can be serviced. In the future, due to the constantly changing technology within the markets today, it will also prove easier for SuperValu to upgrade their services, increasing their customer satisfaction and keeping up to date with trends in the market.
• Due to the number of activities and durations of these workers will be required to be on site and working 6 days a week to ensure the project is completed on time. This may prove costly if they require overtime payment or it may be completely unfeasible if the workers simply refuse to work that many days. An alternative to them working 6 days a week would be to allow extra time for the entire project. This would also reduce the risk of the project being delayed due to adverse circumstances impacting the end date of the project and subsequently impact the celebrity required to open the Petrol Station. Another way in which this could be avoided would be to hire more workers to accelerate the completion of various tasks; however this would prove more costly for the project.
• Further research into the project has also revealed that the majority of money outflowing is occurring in the final third stage, reallocating these costs to the first months will ensure sufficient funds are available for the end of the project. It will also result in less pressure on sponsors if the costs are spread out more evenly throughout the duration of the project.
• The Stakeholder Analysis as shown that in order to reduce the chance of stakeholder’s hindering the project it would be beneficial to get them talking amongst each other. Through communicating with each other they may be able to see their problem through the eyes of another, giving them better understanding of the problems faced. It will also result in them sorting out problems before they become an issue to project. Planning ahead and communicating

Overall Synergy would suggest that the project is a worthwhile endeavour and is possible to complete on time as long as the sponsors provide the sufficient funding. The project itself would boost Supervalu’s market share and propel them into a new market sector that would give them huge potential for the future.

Date	Members Attended	Topic	Discussion	Action	Responsible

	Interest	Sensitivity	Power	Position	Total
SuperValu	4	4	4	1	13
Project Sponsor	4	4	4	1	13
Project Manager	4	4	4	1	13
Residents	3	3	3	3	12
Project Team Members	4	3	3	1	11
Competitors	4	1	1	4	10
Local Council	3	2	3	1	9
Management	2	2	3	1	8
Shareholders	2	2	3	1	8
Local Contractors/ Suppliers	3	2	1	1	7
Customers	2	2	2	1	7
Employees	1	2	2	1	6
Government	1	1	3	1	6
Local Businesses	2	1	1	1	5

Activity when needed by	Materials	Quantity	Price	Total
2.3.2	Fuel Tank and piping	4	£10,000	£40,000.00
2.3.5	Kiosk for two cashiers	1	£20,000	£20,000.00
2.1.2	Cement Mix	100	£5 a bag	£500.00
2.1.2	Bricks	20 Bags	75.00	£1,500.00
2.2.4	CCTV	4	£50.00	£200.00
3.1.2	Fuel price sign	1	£500.00	£500.00
2.3.3	Emergency stop button	1	£50.00	£50.00
2.2.2	Metal pillars to hold the petrol station roof	8	£400.00	£3,200.00
2.2.2	Corrugated Iron roof	1	£4,500.00	£4,500.00
1.2.2	Fencing	1 set	£500.00	£500.00
1.2.3	Health and Safety sign	6	£40.00	£240.00
2.2.3	Phone line	1	£200.00	£200.00
2.2.3	Drains	4	£50.00	£200.00
2.2.3	Plumbing (pipes)	1 set	£200.00	£200.00
2.3.1	Vapour recovery equipment	4	£12,000	£48,000
2.3.1	Standard petrol pumps	8	£15,000	£120,000.00
2.3.1	Next Generation petrol pumps	8	£17,500	£140,000.00
				£379,790.00
Activity when needed	Materials	Days Needed	Number needed	Cost per day	Total
1.3.1	Bulldozer	3	1	£350.00	£1,050.00
1.3.1 to 3.1.2	Skip	49	1	£50.00	£2,450.00
1.3.1-3.1.2	Recycling skip	49	1	£55.00	£2,695.00
2.1.3-2.3.5	Scaffolding	30	1	£145.00	£4,350.00
1.3.1-2.3.5	Cement Mixer	50	2	£48.00	£4,800.00
2.2.2	Crane	6	1	£500.00	£3,000.00
2.1.1-2.1.2	Digger	9	3	£200.00	£5,400.00
1.3.1-1.3.3	Crusher Machine	11	2	£150.00	£3,300.00
Total Costs:	£406,835.00				£27,045.00

Activity	Type of worker	How many days	How many workers	Cost per day per person	Total
1.1.2	On site workers	1	2	£300.00	£600.00
1.2.2	On site workers	1	4	£300.00	£1,200.00
1.2.3	On site workers	2	2	£300.00	£1,200.00
1.3.2	On site workers	2	6	£300.00	£3,600.00
1.3.3	On site workers	3	10	£300.00	£9,000.00
2.1.2	On site workers	3	10	£300.00	£9,000.00
2.1.4	On site workers	6	10	£300.00	£18,000.00
2.1.5	On site workers	3	6	£300.00	£5,400.00
2.2.2	On site workers	6	10	£300.00	£18,000.00
2.2.4	On site workers	2	6	£300.00	£3,600.00
2.3.5	On site workers	2	4	£300.00	£2,400.00
3.1.2	On site workers	1	4	£300.00	£1,200.00
3.2.4	On site workers	1	2	£300.00	£600.00
3.2.5	On site workers	1	2	£300.00	£600.00
Activity	Type of worker	How many days	How many workers	Cost per day per person	Total
1.3.3	Construction Manager	3	1	£500.00	£1,500.00
2.1.2	Construction Manager	3	1	£500.00	£1,500.00
2.1.4	Construction Manager	6	1	£500.00	£3,000.00
2.2.2	Construction Manager	6	1	£500.00	£3,000.00
2.2.5	Construction Manager	2	1	£500.00	£1,000.00
2.3.5	Construction Manager	2	1	£500.00	£1,000.00
Post implementation two months:
Time Period	Number of Employees	cost per day	Total
20 days in August	2	£400.00	£16,000.00
22 days in September	2	£400.00	£17,600.00

Activity	Type of worker	How many days	How many workers	Cost Per day per person	Total
2.1.3	Fuel Tank Professional	3	3	£500.00	£4,500.00
2.3.4	Fuel Tank Professional	5	3	£500.00	£7,500.00
3.2.1	Fuel Tank Professional	1	2	£500.00	£1,000.00
Activity	Type of worker	How many days	How many workers	Cost Per day per person	Total
All	Project Manager	73	1	£500.00	£36,500.00
All	Site Manager	73	1	£450.00	£32,850.00
All	Deputy site manager	73	1	£400.00	£29,200.00
All	Administration Staff	36	2	£150.00	£10,800.00
Activity	Type of worker	How many days	How many workers	Cost Per day per person	Total
2.3.2	Hardware/software specialists	5	2	£500.00	£5,000.00
2.3.3	Hardware/software specialists	1	2	£500.00	£1,000.00
3.2.1	Hardware/software specialists	1	2	£500.00	£1,000.00
3.2.2	Hardware/software specialists	1	2	£500.00	£1,000.00
Activity	Type of worker	How many days	How many workers	Cost per day per person	Total
1.1.3	Architect	1	1	£400.00	£400.00
1.1.3	Accountant	1	1	£350.00	£350.00
2.2.3	Electrician	8	2	£300.00	£4,800.00
2.2.3	Plumber	8	2	£300.00	£4,800.00
3.2.3	Electrician	2	1	£300.00	£600.00
3.2.3	Plumber	2	1	£300.00	£600.00
TOTAL WAGES:	£260,900.00

May
Materials/ Machinery	Days needed in May	Number needed	Cost per day	Total
Bulldozer	3	1	£350.00	£1,050.00
Crusher Machine	11	2	£150.00	£3,300.00
Cement Mixer	11	2	£48.00	£1,056.00
Skip	11	1	£50.00	£550.00
Recycling Skip	11	1	£55.00	£605.00
Materials/Resources	Quantity	Price	Total
Fencing	1 set	£500.00	£500.00
Healths and safety signs	6	£40.00	£240.00
			£740.00
Overall cost for May	£7,301.00
June
Materials/ Machinery	Days needed in June	Number needed	Cost per day	Total
Cement Mixer	25	2	£48.00	£2,400.00
Skip	25	1	£50.00	£1,250.00
Recycling Skip	25	1	£55.00	£1,375.00
Scaffolding	16	1	£145.00	£2,320.00
Digger	9	3	£200.00	£5,400.00
Materials/Resources	Quantity	Price	Total
Cement Mix	100	£5 a bag	£500.00
Bricks	20 Bags	75.00	£1,500.00
Overall Cost for June	£14,745.00
July
Materials/ Machinery	Days needed in July	Number needed	Cost per day	Total
Cement Mixer	14	2	£48.00	£1,344.00
Skip	13	1	£50.00	£650.00
Recycling Skip	13	1	£55.00	£715.00
Scaffolding	14	1	£145.00	£2,030.00
Crane	6	1	£500.00	£3,000.00
Materials/Resources	Quantity	Price	Total
Phone line	1	£200.00	£200.00
Drains	4	£50.00	£200.00
Plumbing (pipes)	1 set	£200.00	£200.00
Vapour recovery equipment	4	£12,000	£48,000
Standard petrol pumps	8	£15,000	£120,000.00
Next Generation petrol pumps	8	£17,500	£140,000.00
CCTV	4	£50.00	£200.00
Fuel price sign	1	£500.00	£500.00
Emergency stop button	1	£50.00	£50.00
Metal pillars to hold the petrol station roof	8	£400.00	£3,200.00
Corrugated Iron roof	1	£4,500.00	£4,500.00
Fuel Tank and piping	4	£10,000	£40,000.00
Kiosk for two cashiers	1	£20,000	£20,000.00
Overall cost for July	£384,789.00
Overall cost for all materials/machinery	£406,835.00

Catastrophic 5	A J
Significant 4			F
Moderate 3		E	B
Minor 2		G	D I
Limited 1	H	C
	Low 1	Medium-Low 2	Medium 3	Medium-High 4	High 5

 

References

Cadle, J. and Yeates, D. (2008) Project Management for Information Systems. 5^th Edition. Harlow: FT Prentice Hall

Cadle, J. & Yeates, D. (2003) Project management for information systems. 3^rd Edition. Harlow: FT Prentice Hall

Maylor, H (2005) Project Management. 3^RD Edition. Harlow, England. Pearson Education Ltd. Prentice Hall

Miller, D. (2008). Building a Project Work Breakdown Structure: Visualizing Objectives, Deliverables, Activities, and Schedules. [Online]. Available at: https://www.herts.eblib.com/patron/FullRecord.aspx?p=359926 [Accessed On: 2^ND April 2014]

Pinto, K (2013) Project Management: Achieving Competitive Advantage. 3^rd Edition. Harlow, England. Pearson Education Ltd.

Raymond, L & Bergeron, F (2008) ‘Project management information systems: An empirical study of their impact on project managers and project success’ International Journal of Project Management. 26(2). Available at: https://www.sciencedirect.com/science/article/pii/S0263786307000981 [Accessed on: 2^nd March 2014]  

Schwable, K. (2009) An Introduction to Project Management. 2^nd Edition. Augsburg College. United States