Project Planning And Control Module: Description, Aims & Learning Outcomes

Assumptions:

The relative assumptions could be made while drafting the overall costs estimates of the new 24/7 gym.

• The external workers will be paid for their daily work as wages
• The electronic devices needs to be tested before placing it in the gym
• The electronic devices will be purchased from adequate supplier, who might provide discounts and reduce the initial costs.
• The labour charges will vary during the initiating stage but will be fixed at £2500 for 5 people per month. However, after the review of first three month of operation additional worker could be added to fulfil the operations requirement
• The sales will gradually increase due to the increased demand for high-tech gyms
• The gym master software is been used for supporting the 24/7 access to the gym and minimising the requirements of admin supervision (Gymmastersoftware.co 2017).
• The gym master software comes with an alarm system, which helps in sending message through internet to gym authorities during non-working hours.

The overall budget, which is needed for starting the gym, is depicted in the above table. Moreover, minimum of £ 57,982.10 cost is estimated, which will be required to open the 24/7 gym and function properly. Both first and second month costs are relatively high as it needs to reshape the gym and purch.ase equipments for use. The major expenditure is on first month, which is conducted to fix the floors. However, second months major expenditure is on buying equipments for the gym. The third month expenditure is relatively low as only other amenities are added to the gym for smooth functioning. Moreover, rent, utilities, broadband and wifi expenses are incurred throughout the initiation stage (Lee, Kim and Yu 2014).

The graph mainly depicts the relevant projected cumulative cash flow of the new gym, which rising to positive in October. The first month project income is £12,598.20, which increases to £23,796.60 in second month and £36,394.60 in third month. The demand estimation for first month is 180 members, which increase to 340 members in second month and 520 members in third month. The rising demand for service of the gym could effectively help in generating a positive cumulative cash flow at the end of October 31^st of £10,500.60.

The overall handover, acceptance of project and closure will mainly be conducted on simple terms, which will be accepted both the parties. The handover terms will mainly be conducted to estimate the overall requirements, which are depicted as follows.

• Financial analysis of project scope
• Procurement of contracts
• Identifying the overall budge used in the project
• Lesson learned documentation

The project acceptance requirements are depicted as follows

• Positive Cash flow at the end of October 31^st
• Adequate estimation of costs and viability of sales revenue
• Adequate estimation of demand from customers

The project closure will mainly be conducted if adequate profits are not conducted at the end of the project lifetime (Posavac 2015). The closure report and review of lesson learned will be drafted after commencement of the closure activity.

Around four people will be required for the handover, acceptance and closure process, which will be responsible for documenting, reviewing and analysing the overall project. Two people will conduct finance and budget evaluation, while other two will monitor the progress of work duration and demand from customers.

Client will mainly rely on comments provided by other clients who are member of the gym. In addition, the clients will visit all the relevant services, which is been provided by the gym. Lastly, the client will test night service or alarm system, which will inform the employee of the gym regarding an emergency.

Project closure report and review of post implementation are the two activities, which are been conducted within the project closure activity.

Reference:

Argos.co.uk. (2017). Fitness & Gym Equipment | Go Argos. [online] Available at: https://www.argos.co.uk/static/Browse/ID72/33008186/c_1/1%7Ccategory_root%7CSports+and+leisure%7C33006346/c_2/2%7Ccat_33006346%7CFitness+equipment%7C33008186.htm [Accessed 25 Mar. 2017].

Gymmastersoftware.com. (2017). GymMaster Pricing Page. [online] Gymmastersoftware.com. Available at: https://www.gymmastersoftware.com/gymmaster-pricing-page/ [Accessed 25 Mar. 2017].

Lee, S.K., Kim, K.R. and Yu, J.H., 2014. BIM and ontology-based approach for building cost estimation. Automation in construction, 41, pp.96-105.

Posavac, E., 2015. Program evaluation: Methods and case studies. Routledge.