Oman Oil Refineries and Petroleum Industries (ORPIC) is one of the biggest businesses in Oman and is among the prominent players in the oil industry of the Middle East. The current report contains a detailed plan about the development of a gymnasium in the company’s headquarters in Muscat, Oman. The significance of the project lies in the importance of the excellent health and activeness of the employees. As suggested by Thorndike et al. (2016), the healthy lifestyle habits of employees enhance their productivity substantially, which eventually reflects on the profitability of the company. At present, the company provides gym membership to their employees. However, a financial compensation analysis of employee benefits revealed that constructing and maintaining a gym would prove to be less costly than the yearly costs of gym memberships that the company bore and would help it break even in 2.5 years. The budget allotted to the current project is 1,500,000 OMR, with a reserve budget of 500,000 OMR. The budget does not include the acquisition of land or the construction of a building, as the company already has the space allocated for the gym in the basement of the building.
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Using the SMART principle by Bjerke and Renger (2017), the objectives of the project have been discussed. The specific objective of the current report is to construct and develop a gymnasium for the employees of ORPIC. The current project will enhance the willingness of employees to address the health requirements of their bodies, hence making both their bodies and minds more active. As the benefits of exercise include better blood flow to the brain, employees will have better ideas, better creativity, and better productivity (Volpp et al., 2011). Enhanced productivity is highly relevant to the company and can be measured by the HR department of the company in the future. Exercise machines and speakers will be installed in the gym, while weights and exercise mats will also be available, which demonstrates that the project has been kept realistic. The project is hence both attainable and realistic. The objective of the project would mainly be to cater to the well-being of employees, thus encouraging them to reduce obesity, inactivity, and poor health so that they may remain fit. Better health of employees would eventually reduce the medical costs that the company covered (Goetzel et al., 2014), thereby illustrating the sustainability of the project. The project is time-bound as well, as it is scheduled to begin from the 1st of May 2020 and end by the 31st of August the same year.
The project team includes all the people who will be responsible for ensuring that the goals of the project are met effectively and efficiently. The following table (Table 1) presents an overview of the project team and the roles of each person in the group. Additionally, table 1 gives an account of the work breakdown structure of the current project.
|Project||Developing a Gymnasium||Project Teams Responsible|
|1||Procurement||Project Manager, Construction Workers|
|1.1||Procuring raw materials|
|1.2||Procuring machinery for construction|
|1.3||Procuring exercise equipment|
|2||Hiring human resources||Project Manager, Human Resources Department|
|3||Construction||Project Manager, Construction Workers|
|4||Painting||Project Manager, Painters|
|5||Installation of fixtures||Project Manager, Construction Workers|
|5.2||Bathroom Fixtures e.g. taps, showerheads||Plumbers|
|5.4||Locks of Doors and Lockers||Carpenters|
|5.8||Fit-lock Rubber Tiles||Company representative|
|6||Quality Inspection and Making Required Changes||Project Manager, Quality Control Team, Construction Workers|
Table 1: Project Team and their Roles
The project manager will control and manage each phase of the project and maintain the budget allocated for each task. As Westland (2007) discusses, a project manager must follow the four-step process of effective project management which consists of the 4 Ds; defining, designing, delivering (or executing), developing (or reviewing) of the project. The project manager would also be responsible for the risks associated with the project (Zhang, 2011). The project manager will also overlook the procurement of materials, construction, plumbing, wiring, carpentry and installation of fixtures. Along the same lines, the manager will supervise the resource management, time management, and quality management of the project.
The project board comprises of several individuals who are responsible for sharing the management of the project. The board plays a governing role over the project manager, as the project manager is typically appointed by, and hence answerable to, the project board (Silvius and de Graaf, 2019). The individuals that make up the project board must all be management personnel.
Construction workers, or builders, are mainly responsible for the first-hand role of constructing a building. For simplicity, the term “construction workers” will encompass the carpenters, plumbers, painters, electricians, movers, professional cleaning staff, and all other workers who play an active part in the construction and associated work on the building. The project manager will be overlooking and managing the workers’ progress regularly.
The HR department will be responsible for the recruitment and hiring of construction workers. A suitable number of skilled temporary workers such as masons, carpenters, plumbers, and electricians must be hired so that the project can be carried out satisfactorily. Additionally, the workers must be inquired about their past qualifications and must have references to account for their level of skill and competence. The HR department will also have the role of distributing pay-checks and bonuses accordingly.
As the name suggests, the quality control team will assess the quality of the project components. In essence, quality control personnel will be responsible for identifying any quality defects in each part of the gym. The staff will hence need to pay regular visits to assess the quality so that any poor-quality procedures can be amended.
For simplicity in terms of understanding and practical process of the project, it has been divided into stages. As mentioned earlier, the four phases of project management include defining, designing, delivering and developing the project.
During the designing of the project, the management of the company must establish the primary and secondary goals of the project, the purpose, timeline for activities, and overall timeframe of the project (Krähmer and Strausz, 2011). The management would also be responsible for carrying out a feasibility analysis, establishing the project charter, identifying the key stakeholders of the project, appointing the project board and gaining approval from higher management to proceed.
After the project initiation is complete, and the higher management has approved the project to enter the next phase, the planning phase begins (Krähmer and Strausz, 2011). The designing phase consists majorly of defining the scope of the project, determining project objectives, setting the project schedule and milestones. In addition, key deliverables must be set to affirm the achievement of the objectives of the project. The assignment of tasks, their distribution, and the risk assessment must be carried out by the project manager.
The delivery, or execution of the project, will consist of the construction and installation work in the space for the gymnasium. The construction of bathrooms, lights, air conditioning, lockers, doors, floors, mirrors, and finally, gym machines will be completed. After all kinds of construction, wiring, plumbing, painting, and carpentry is done, cleaners will be required to effectively remove all residual garbage and dust from the gym before the machine installers can begin their work. The end product of the project must be achieved before the project can proceed to the next phase.
The delivery, or review of the project, is its last stage. As the term “review” suggests, the project will be thoroughly assessed by the quality control experts to rule out any inconsistencies between the approved plan and the end product (Shaari at al., 2015). The gym should be fully developed and must be functional before the project delivery phase can begin. Any improvements suggested by the quality control experts, and approved by the project manager and project board, must also be implemented.
To assess the time required for the successful completion of a project, tools such as the work breakdown structure (WBS) and the network diagram have been used.
The activity list for the current project is as follows:
|Activity||Initiation Date||Ending Date||Duration (Days)||Predecessors|
|Buffer Zone One||11/06/2020||20/06/2020||10||1|
|2||Hiring Human Resources||21/06/2020||25/06/2020||5||None|
|3||Construction||26/06/2020||16/07/2020||21||1 & 2|
|Buffer Zone Two||17/07/2020||22/07/2020||5||3|
|5||Installation of Fixtures||28/07/2020||08/08/2020||10||4|
|7||Making Required Changes||16/08/2020||31/08/2020||15||6|
Table 2: Project Activity List
Activity lists for project management are developed to present a well-defined plan for the activities against their scheduled dates, as discussed by Fu and Zhang (2014). The project is due to begin from the 1st of May 2020 and should end by the end of August as per schedule as depicted by the Gantt chart in diagram 1. The schedule allows for six days in which to complete quality inspection of the gym in addition to extra time for any changes which the quality inspection team suggests.
Figure 1: Gantt Chart for the Project
Figure 2: Work Breakdown Structure
The work breakdown structure presents the hierarchy that pertains to the project under study (Siami-Irdemoosa et al., 2015), as in diagram 2. The hierarchy, developed by the project board collectively, would be used to make the project successful.
Network diagrams are used to gauge a time estimate for projects. Additionally, network diagrams depict the correlation of all the activities with each other (Zou et al., 2013). The critical path analysis can also be carried out on network diagrams to highlight the activities that are critical in terms of maintaining the schedule, and the practices which can be carried out without tight scheduling (Kehe et al., 2015). The network diagram in figure 3 has been given as under. The red coloured nodes depict the critical path, which includes activities 1, 3, 4, 5, 6, and 7. Numbers have denoted activities as in the activity list (Table 2), and the buffer zones one and two have been denoted as B1 and B2, respectively.
Figure 3: Network Diagram
The cost management plan for the current project is as under (table 3):
|Activity||Budget in OMR|
|7||Installation of Fixtures||200,000|
Table 3: Cost Management Plan
As mentioned earlier, OMR 500,000 will be set as a reserve budget. According to Chou (2011), the reserve budget is highly significant for construction-related projects as it ensures that the project is completed, regardless of budgetary issues.
As discussed by Iqbal et al. (2015), construction projects have a multitude of risks associated with them. Risks can be derived from many sources, such as delays in procurement, construction, and painting (Osipova and Eriksson, 2011), natural occurrences like rains or earthquakes (Chan et al., 2018), and the unavailability of human resources (Guest, 2011). Table 4 presents the most likely risks identified that could hinder the process of the current project, along with their severity, and the frequency of their occurrence ordinarily. The researcher has gauged the level of severity and frequency.
|Risk||Severity of Risk||Frequency of Occurrence|
|Delays in Procurement||High||Low|
|Unexpected Increase in Raw Material Prices||High||Low|
|Unexpected Increase in Gym Equipment Prices||Medium||Medium|
|Unavailability of Construction Workers||High||Medium|
|Delay in drying of paint due to monsoon rains||Medium||High|
|Delays due to flooding||High||High|
Table 4: Risk Log
Although risks associated with climate changes and the infrastructure of Muscat cannot be avoided, risks related to costs can be covered by the reserve budget that has been kept aside for unforeseen issues and budgetary constraints. In addition, the risks pertaining to the unavailability of labour can also be avoided by booking the required workers beforehand.
The current report presents a project management plan for the development of a gym in the head office of ORPIC for the company’s employees. The report includes the project introduction, its objectives, the division of responsibilities in the project team, project stages, and key deliverables. Additionally, the time management plan has been developed using an activity list, the work breakdown structure, and a network diagram. Finally, the cost management plan and the risk management plan have been designed. The prospects of the project are fair as all the avoidable risks have been addressed, and a reserve budget has been established for unforeseeable circumstances.
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