report on new business plan to set up a 7 star hotels

29
310-PROJECT MANAGEMENT PROJECT PROJECT MANAGEMENT PLAN Name :Mohammed Naseer Khan Roll No: 1226114117 Trimester: Third Course: MBA (IB) 2014-16 [Insert appropriate disclaimer(s)] Submitted to: Dr. CH. VENKATAIAH Associate Professor (Operations, Quality & Project Management) GITAM School of International Business GITAM University, Gandhinagar Campus, Rushikonda, Visakhapatnam-530 045, A.P., India

Upload: gitam-school-of-international-business

Post on 20-Jul-2015

162 views

Category:

Education


2 download

TRANSCRIPT

Page 1: Report on new Business plan to set up a 7 star hotels

310-PROJECT MANAGEMENT PROJECT

PROJECT MANAGEMENT PLAN

Name :Mohammed Naseer Khan

Roll No: 1226114117

Trimester: Third

Course: MBA (IB) 2014-16

[Insert appropriate disclaimer(s)]

Submitted to:

Dr. CH. VENKATAIAH

Associate Professor (Operations, Quality & Project Management)

GITAM School of International Business

GITAM University, Gandhinagar Campus, Rushikonda,

Visakhapatnam-530 045, A.P., India

Page 2: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

TABLE OF CONTENTSINTRODUCTION.........................................................................................................................5

INTRODUCTION.........................................................................................................................5

1.1 Purpose of Project Management Plan:-..............................................................................5

The project Management Plan (PMP) is a formal, approved document used to manage project execution. The PMP documents the actions necessary to define, prepare, integrate and coordinate the various planning activities. The PMP defines how the project is executed, monitored and controlled, and closed. It is progressively elaborated by updates throughout the course of the project. .............................................................5

It also plays a communication vehicle for ensuring key stakeholders share an understanding of the project. The PMP is NOT a project schedule. A project schedule lists planned dates for performing tasks and activities to meet milestones identified in the project plan.................................................................................................................5

. The purpose of project management is to foresee or predict as many dangers and problems as possible; and to plan, organize and control activities so that the project is completed as successfully as possible in spite of all the risks. The ever-present element of risk and uncertainty means that events and tasks leading to completion can never be foretold with absolute accuracy. For some complex or advanced projects, even the possibility of successful completion might be of serious doubt.......................................5

Setting objectives:-..........................................................................................................5

A specific objective increases the chances of leading to a specific outcome. Therefore objectives shouldn't be vague, such as "to improve customer relations," because they are not measurable. Objectives should show how successful a project has been, for example "to reduce customer complaints by 50%" would be a good objective...............5

Performance and quality:-................................................................................................5

The end result of a project must fit the purpose for which it was intended. At one time, quality was seen as the responsibility of the quality control department. In more recent years the concept of total quality management has come to the fore, with the responsibility for quality shared by all staff from top management downwards.............5

Budget:- 5

The project must be completed without exceeding the authorized expenditure. Financial sources are not always inexhaustible and a project might be abandoned altogether if funds run out before completion. If that was to happen, the money and effort invested in the project would be forfeited and written off. In extreme cases the project contractor could face ruin. There are many projects where there is no direct profit motive, however it is still important to pay proper attention to the cost budgets, and financial management remains essential....................................................................5

Time to complete:-...........................................................................................................5

Actual progress has to match or beat planned progress. All significant stages of the project must take place no later than their specified dates, to result in total completion on or before the planned finish date. The timescale objective is extremely important because late completion of a project is not very likely to please the project purchaser or the sponsor........................................................................................................................5

Page 1 of 30

[Insert appropriate disclaimer(s)]

Page 3: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Trouble-Shooting:-..........................................................................................................5

EXECUTIVE SUMMARY OF PROJECT CHARTER:-.........................................................6

EXECUTIVE SUMMARY OF PROJECT CHARTER:-.........................................................6

Assumptions/Constraints:-......................................................................................................7

2. SCOPE MANAGEMENT:- .....................................................................................................7

2. SCOPE MANAGEMENT:- .....................................................................................................7

1.2 Work Breakdown Structure................................................................................................8

1.3 Deployment Plan:-..............................................................................................................8

1.4 Change Control Management.............................................................................................9

Five Stars Hotels in the five (5) category have reception desk staffed 24 hours, suites, extra toiletries in the room, bathrobe and slippers, extra pillows, choice of pillows, comfortable seating in rooms, bar 7 days a week, lunch and dinner 7 days a week, mini bar, room service round the 13 clock, luggage service, ironing service, same day laundry service, second service / turndown, mystery checking, etc.................................9

9

In terms of coping with change, it is not an exaggeration to say that many people tend to struggle with it - to varying degrees - and as a rule, the bigger the change, the greater the likelihood they will struggle. Because of this, gaining commitment at the outset is sometimes seen as the trickiest part of the change management process – and it is undoubtedly a challenge – but sustaining change is perhaps more difficult; often, far more so than we realize....................................................................................................9

SCHEDULE/TIME MANAGEMENT:-......................................................................................9

SCHEDULE/TIME MANAGEMENT:-......................................................................................9

One of the most valuable assets for any hotel operation is its general managers in how they spend their time. Schedules and structure are important aspects in every typical business day. There are certain circumstances that differ from hotel to hotel due to the size, type and level of service, the number of different departments as well as other management concerns that need to be coordinated, conducted while being supervised.. 9

Quarter1:- ........................................................................................................................9

The very first thing in the hospitality managers should do when coming in to work is to always walk around the hotel taking note of how it looks and what is going on the moment you walk onto the grounds. Obviously, you want to note anything that comes to your eye that looks out of order making sure that visually the property is presentable to any guests who are either going to their rooms or coming to your hotel for a variety of different things that might be held.............................................................................10

Quarter2:- ......................................................................................................................10

This time of the day should see you through your lunchtime and is a good period for conducting inspections and training. This is also a good time to do another faction often see if all the tasks that were scheduled to be performed in the early part today been completed and executed successfully. During this walk around, it is highly recommended to stop and chat with supervisors and other staff inquiring as how they are getting on this particular workday and if there is anything you can do to help them

Page 2 of 30

[Insert appropriate disclaimer(s)]

Page 4: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

complete their required tasks. This may also be a great time to set up one-on-one training sessions or small group brief meetings to discuss any recent problems and applicable solutions. Around noon is a good time to return any calls you did not accept in the earlier portion of the day. This is the quarter where the general manager should the hotel attending to any and all hands-on activity needed to successfully operate at a high quality level............................................................................................................10

Quarter3:-For day shift general managers, this is the period that takes up the first half of the afternoon. This is a good time to conduct any off-site marketing or public relations activities. It is also a good time to schedule longer training sessions for staff, introduce new technology or procedures and many other tasks that may be well suited for afternoon activity. Also, since this is a less structured time of the day, use it for either making calls or receiving them. When communicating with people asking when is a good time to call, tell them this time of day...................................................................10

1.5 Milestones.........................................................................................................................10

1.6 Project Schedule:-.............................................................................................................11

11

13

1.6.1 Dependencies.........................................................................................................13

This year, the hospitality industry is in for a lot of pain. OTA dependency continues to plague the hospitality industry, despite gains in the past three years and positive trends in all three industry indicators. This isn’t new. What’s new is the pain to the bottom line inflicted by the fat commission checks hoteliers are now paying Expedia and other OTAs. 13

COST/BUDGET MANAGEMENT:-.........................................................................................13

COST/BUDGET MANAGEMENT:-.........................................................................................13

QUALITY MANAGEMENT:-...................................................................................................16

QUALITY MANAGEMENT:-...................................................................................................16

Starts with Good Hiring:-....................................................................................16

Embraces All Staff Members:-..........................................................................16

HUMAN RESOURCE MANAGEMENT:-...............................................................................16

HUMAN RESOURCE MANAGEMENT:-...............................................................................16

COMMUNICATIONS MANAGEMENT:-...........................................................................17

COMMUNICATIONS MANAGEMENT:-...........................................................................17

Compelling communication skills are important in a hotel regardless of some staff members not being guest-facing. A few hotels spend considerable amount of money on training their staff to interact with the guests. Good communication skills are a learned art and not a natural skill so one should consider training to enhance staff skills. Excellent communication skills enhance guest experience as it conveys that you are listening to your guests, valuing their feedback and conveying clear messages. Apart from communicating with the guests, your staff ought to know how to write emails.

Page 3 of 30

[Insert appropriate disclaimer(s)]

Page 5: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Good communication skills will impress your guests which will further prove beneficial to your hotel business. - Communication Matrix...........................................................17

RISK MANAGEMENT:-...........................................................................................................18

RISK MANAGEMENT:-...........................................................................................................18

1.7 Risk Log:-.........................................................................................................................19

ISSUE MANAGEMENT:-..........................................................................................................21

ISSUE MANAGEMENT:-..........................................................................................................21

Issue Log:-.............................................................................................................................23

PROCUREMENT MANAGEMENT:-...............................................................................24

PROCUREMENT MANAGEMENT:-...............................................................................24

COMPLIANCE RELATED PLANNING:-..............................................................................25

COMPLIANCE RELATED PLANNING:-..............................................................................25

The hospitality industry includes hotels and other forms of accommodation, as well as restaurants and catering establishments of all descriptions. As with any industry, the hospitality industry has a framework of rules, regulations and guidelines for issues pertaining to human resources........................................................................................25

Statistics reveal that more than 80% of all referrals to the CCMA are for unfair dismissals and that more than 63% of these are awarded in favor of the employee......25

For the human resources department within your establishment, the main objective is to create an environment where employees can achieve their personal goals and objectives, and those of the company.............................................................................25

Various labor laws have been introduced to regulate issues relating to the employment of staff, minimum wages, the working conditions, the employment relationship and the termination of the employment agreement within the hospitality industry....................25

These are prescribed by two Bargaining Councils and one Sectional Determination for various areas and establishments....................................................................................25

APPENDIX A: PROJECT MANAGEMENT PLAN APPROVAL.......................................26

APPENDIX B: REFERENCES.................................................................................................27

28

Page 4 of 30

[Insert appropriate disclaimer(s)]

Page 6: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

INTRODUCTION

1.1 PURPOSE OF PROJECT MANAGEMENT PLAN:-

The project Management Plan (PMP) is a formal, approved document used to manage project execution. The PMP documents the actions necessary to define, prepare, integrate and coordinate the various planning activities. The PMP defines how the project is executed, monitored and controlled, and closed. It is progressively elaborated by updates throughout the course of the project.

It also plays a communication vehicle for ensuring key stakeholders share an understanding of the project. The PMP is NOT a project schedule. A project schedule lists planned dates for performing tasks and activities to meet milestones identified in the project plan

. The purpose of project management is to foresee or predict as many dangers and problems as possible; and to plan, organize and control activities so that the project is completed as successfully as possible in spite of all the risks. The ever-present element of risk and uncertainty means that events and tasks leading to completion can never be foretold with absolute accuracy. For some complex or advanced projects, even the possibility of successful completion might be of serious doubt.

Setting objectives:-

A specific objective increases the chances of leading to a specific outcome. Therefore objectives shouldn't be vague, such as "to improve customer relations," because they are not measurable. Objectives should show how successful a project has been, for example "to reduce customer complaints by 50%" would be a good objective.

Performance and quality:-

The end result of a project must fit the purpose for which it was intended. At one time, quality was seen as the responsibility of the quality control department. In more recent years the concept of total quality management has come to the fore, with the responsibility for quality shared by all staff from top management downwards.

Budget:-

The project must be completed without exceeding the authorized expenditure. Financial sources are not always inexhaustible and a project might be abandoned altogether if funds run out before completion. If that was to happen, the money and effort invested in the project would be forfeited and written off. In extreme cases the project contractor could face ruin. There are many projects where there is no direct profit motive, however it is still important to pay proper attention to the cost budgets, and financial management remains essential.

Time to complete:-

Actual progress has to match or beat planned progress. All significant stages of the project must take place no later than their specified dates, to result in total completion on or before the planned finish date. The timescale objective is extremely important because late completion of a project is not very likely to please the project purchaser or the sponsor.

Trouble-Shooting:-

If something goes amiss with a project, the project plan can help track the problem and identify a solution. For example, if printing costs are higher than anticipated, the business owner can review the plan and identify the cost over-run. He may, for example, find that the newsletter is

Page 5 of 30

[Insert appropriate disclaimer(s)]

Page 7: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

not being submitted to the printer by the established deadline, therefore triggering rush charges to meet deadline. The owner can then determine where the breakdown of the internal deadline came from and resolve the issue.

Financial Baselines:-

End of Planning: Financial estimates are baseline in the Planning Business Case. Expectation is the estimate will be plus or minus 25% in terms of accuracy. • End of Execution Design sub-phase: Financial estimates are fully baseline in the Execution Business Case. Expectation is the estimate will be plus or minus 10% in terms of accuracy.

Risk Management Plan:-

A systematic process to identify, analyze, and respond to project risk throughout all phases of

the project should be documented in the Project Management Plan. This plan should result in

maximizing the probability and consequence of positive events and minimizing the probability

and consequences of adverse events. This process should be evaluated throughout the project's

life cycle.

Scope Management Plan:-

The Project Management Plan should document the philosophy regarding scope management.

The discussion should include the processes for approving scope changes and for verifying that

the planned scope of work is actually completed.

Project Metrics:-

Appropriate project metrics by which success of the project are essential and should be

documented in the Project Management Plan. These metrics should be developed such that

appropriate analyses can be conducted to identify trends and forecast project performance. The

metrics should be used to identify and proactively address challenges to eliminate surprises.

Metrics for cost, schedule, and public opinion should be considered. Reports on project metrics

should be incorporated into the Project Reporting and Tracking procedures outlined above.

EXECUTIVE SUMMARY OF PROJECT CHARTER:-

The name of this hotel is Khan Group of hotels which started with a huge capital investment with 1 star of rating by the customers. 1 star hotel became 7 star in future because of its location Dubai, it can accommodate the various segments of customers like economic, official business meeting rooms and luxurious rooms which was quite

Page 6 of 30

[Insert appropriate disclaimer(s)]

Page 8: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

reasonable to the customers when compare to others hotels in whole of Dubai. This hotel as a unique way of treating the customers as a king in this hotel .It had ups and downs in its business before penetrating the market with launch of best service to the customer’s likes and dislikes and targeting the customers of various classes. This hotel made its interior with a king’s palace theme which attracted the customers and it had best variety of food according to the customer’s nationality. It had a location on the beach which was made on artificial sand which attracted the customers more with its beautiful view point to see the Arabian Sea. During the years passed for this hotel it enlarge its size only in Dubai by adding malls, disco, shows, underground tunnel for Arabian sea aquarium in the hotel and theatre to satisfy the customers to not go out and buy or shop or anything other purposes which is already present within the hotel premises with concept of all in one to satisfy the customers.

ASSUMPTIONS/CONSTRAINTS:-

To become globalized in the world market this made a strategic collaboration and acquisition with other hotels and companies like

1. Al-Khalifa group of hotels

2. KFC

3. Wal-Mart

4. Novotal group of hotels

5. Taj group of hotels

Acquisition:-

1. Dolphin hotel in New York during the economic crises in USA (2007-2008)

2. SCOPE MANAGEMENT:-

1. Customer’s satisfaction.

2. Best welfare activities to its employees to gain employees motivation.

3. Targeting the segments of customers.

4. Luxurious and royal style of treatment to the customers.

5. Merged with charity institutions.

6. No concept of advertisement by attracting the media to focus on this hotel.

Page 7 of 30

[Insert appropriate disclaimer(s)]

Page 9: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

1.2 WORK BREAKDOWN STRUCTURE

Some widely used reasons for creating a WBS include:

• Assists with accurate project organization• Helps with assigning responsibilities• Shows the control points and project milestones• Allows for more accurate estimation of cost, risk and time• Helps explain the project scope to stakeholders

1.3 DEPLOYMENT PLAN:-

The Implementation Plan Template is your key to ensuring that each of the steps and sub-steps in your venue's WLAN build or refresh are completed in the correct order. Complete each of the following sections to stay on track:

• Develop the network design.• Plan and account for network downtime.

• Perform network testing procedures.

• Lead staff through role changes and transitioning.

• Perform role assessment and determine training requirements.

• Build the implementation timeline and task matrix.

• Execute cut over plan.• Provide go live support.• Document lessons learned.• Manage risks.

Page 8 of 30

[Insert appropriate disclaimer(s)]

Page 10: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

1.4 CHANGE CONTROL MANAGEMENT

Five Stars Hotels in the five (5) category have reception desk staffed 24 hours, suites, extra toiletries in the room, bathrobe and slippers, extra pillows, choice of pillows, comfortable seating in rooms, bar 7 days a week, lunch and dinner 7 days a week, mini bar, room service round the 13 clock, luggage service, ironing service, same day laundry service, second service / turndown, mystery checking, etc.

In terms of coping with change, it is not an exaggeration to say that many people tend to struggle with it - to varying degrees - and as a rule, the bigger the change, the greater the likelihood they will struggle. Because of this, gaining commitment at the outset is sometimes seen as the trickiest part of the change management process – and it is undoubtedly a challenge – but sustaining change is perhaps more difficult; often, far more so than we realize.

SCHEDULE/TIME MANAGEMENT:-

One of the most valuable assets for any hotel operation is its general managers in how they spend their time. Schedules and structure are important aspects in every typical business day. There are certain circumstances that differ from hotel to hotel due to the size, type and level of service, the number of different departments as well as other management concerns that need to be coordinated, conducted while being supervised.

Quarter1:-

Page 9 of 30

[Insert appropriate disclaimer(s)]

Page 11: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

The very first thing in the hospitality managers should do when coming in to work is to always walk around the hotel taking note of how it looks and what is going on the moment you walk onto the grounds. Obviously, you want to note anything that comes to your eye that looks out of order making sure that visually the property is presentable to any guests who are either going to their rooms or coming to your hotel for a variety of different things that might be held.

Quarter2:-

This time of the day should see you through your lunchtime and is a good period for conducting inspections and training. This is also a good time to do another faction often see if all the tasks that were scheduled to be performed in the early part today been completed and executed successfully. During this walk around, it is highly recommended to stop and chat with supervisors and other staff inquiring as how they are getting on this particular workday and if there is anything you can do to help them complete their required tasks. This may also be a great time to set up one-on-one training sessions or small group brief meetings to discuss any recent problems and applicable solutions. Around noon is a good time to return any calls you did not accept in the earlier portion of the day. This is the quarter where the general manager should the hotel attending to any and all hands-on activity needed to successfully operate at a high quality level.

Quarter3:-For day shift general managers, this is the period that takes up the first half of the afternoon. This is a good time to conduct any off-site marketing or public relations activities. It is also a good time to schedule longer training sessions for staff, introduce new technology or procedures and many other tasks that may be well suited for afternoon activity. Also, since this is a less structured time of the day, use it for either making calls or receiving them. When communicating with people asking when is a good time to call, tell them this time of day.

Quarter 4:-This should be the time of day to include completion of any tasks started earlier that require same-day attention. Also, make a last moment tour of the facility before leaving so you can either attend to anything found needing attention or note same to your night manager (s) for consideration. Cross off all the things to do that have been accomplished on your list and note those in critical need for additional follow-up either tomorrow or at some other selected scheduled time in the future. If possible, always conduct a face-to-face with second shift supervisors to review any goals and challenges for their workday.A good general manager will vary arrival and departure times as well as points of entry and leaving to gain a variety of different visual perspectives concerning hotel operations.

1.5 MILESTONES

The table below lists the milestones for this project, along with their estimated completion timeframe.

Page 10 of 30

[Insert appropriate disclaimer(s)]

Page 12: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Milestones Estimated Completion Timeframe[completion of business plan ,hotel setup, infrastructure development, employment creation ,marketing, acquisition ,joint ventures, global commercialization]

[2015-2019]

1.6 PROJECT SCHEDULE:-

Project planning is a discipline for stating how to complete a project within a certain

timeframe, usually with defined stages, and with designated resources.

Phase Primary Objective

Feasibility Study At the first glance it seems little bit unrealistic to create a system for Khan

Hotel. it was a challenge to determine whether the solution we are going to

come up with will be financially worthwhile and technically feasible. But

by identifying specific departments that require better solutions, it had been

decided that, an information system to the business, can be implemented

and it will increase the quality and the performance of the system than the

current one.

Requirement

Analysis and

Specification

In this phase it encompasses those tasks that go in to determining the

needs or conditions that should be included in the system that is going

to be implemented. The members of the group is required to conduct

meetings and negotiations daily in this period of the phase to gather

the information, requirements and to have a clear idea about the

Page 11 of 30

[Insert appropriate disclaimer(s)]

Page 13: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

system that is in progress.

Then the analysis of the requirements that has been gathered should

be done in a specialized manner.

After the gathering and the analysis of the requirements the team

should perform the requirement specification.

Software Design This is the transitional phase of the project. Here the design moves

from schematic phase to contract document phase. In this phase the

crew should prepare drawings and other presentation documents,

crystallize the design concept and describe it in terms of architectural,

electrical, mechanical and structural system.

Development

and Integration

In this phase the designed functions in above phases will be

implemented as codes using the language C# in this project.

Here the connection of the Crystal reports should also have to be

considered when the functions are implemented.

Testing The Test Phase focuses on a technical investigation in which the

results describe the quality of the system. Testing cannot confirm a

system functions properly under all conditions but can establish that it

fails under specific conditions. Those possible conditions and the

bugs of the system will be identified in this phase of Testing.

The project crew will work here to test several kinds of testing. Such

as,

• Unit testing

• Integration testing

• Regression testing

• System Testing

Deployment

(Installation)

This is the phase that the crew handover the system in to the hands of

the client to its environment that the system will be prevailed long

term.

Page 12 of 30

[Insert appropriate disclaimer(s)]

Page 14: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Maintenance Maintenance part is the phase that requires the most effort within the

entire life cycle of the project.

The modification of a software product after delivery to correct faults,

to improve performance or other attributes, or to adapt the product to

a modified environment." Software maintenance is the concluding

part of the software development process.

Here if the client wants any modification of the functions of the

system or to add new features to the system, the project team should

be ready to render the service to the client.

Gantt chart

1.6.1 Dependencies

This year, the hospitality industry is in for a lot of pain. OTA dependency continues to plague the hospitality industry, despite gains in the past three years and positive trends in all three industry indicators. This isn’t new. What’s new is the pain to the bottom line inflicted by the fat commission checks hoteliers are now paying Expedia and other OTAs.

COST/BUDGET MANAGEMENT:-

Fixed Costs

Page 13 of 30

[Insert appropriate disclaimer(s)]

Page 15: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Fixed costs are normally not affected by changes in occupancy or sales volume. They are said to

have little direct relationship to the business volume because they do not change significantly

when the number of sales increases or decreases. The term fixed should never be taken to mean

static or unchanging, but merely to indicate that any changes that may occur in such costs

are related only indirectly or distantly to changes in volume.

Examples of Fixed costs are:

• Land, Building Taxes to government.• Wages to employees.

• Hotel employee’s health premium.

• Out sourced services contracted for fixed amount in a month eg:- security services.

• Yearly maintenance contract fees (AMC) for all equipments, machineries and software’s.

• Fixed internet, telephone plans.

• Advertising cost.

• Yearly external auditing cost.

• Payroll.

• Provision.

• In house moves / satellite TV.

• Music entertainment.

• Reservation expenses.

• Subscription - Newspaper, magazine etc.

• Human resources.

• Sales & marketing.

• Interest on loan.

• Other fixed charges etc.

Variable Costs

Variable costs are clearly related to hotel occupancy and business volume. As business volume

or occupancy increases, variable costs will increase; as hotel occupancy decreases, variable costs

should decrease as well.

Examples of variable costs are:

• Food, beverages, housekeeping cleaning supplies.• Flower arrangements.

• Guest room amenities.

• Guest room, restaurants and banquets linen.

• Banquet HVAC costs.

• Stationeries used in Front desk and restaurants.

Page 14 of 30

[Insert appropriate disclaimer(s)]

Page 16: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

• Chemicals for laundry and water treatment plants.

• T/A commission.

• Flower & decorations.

• Guest supplies -amenities.

• Guest relations.

• Laundry operations.

• Laundry Uniform.

• Printing supplies.

• Entertainment.

• Telephone & Fax.

• Transportation.

• Other operating supplies.

• Administration & General.

• Human resources.

• Sales & Marketing.

• Management Fees etc.

Cost Management is a technique to optimize the revenue earned from a fixed, perishable resource. The challenge is to sell the right resources to the right customer at the right time. Cost Management implements the basic principles of supply and demand economics in a tactical way to generate incremental revenues. There are three essential conditions for revenue management to be applicable:

• That there is a fixed amount of resources available for sale.

• That the resources sold are perishable. This means that there is a time limit to selling the resources, after which they cease to be of value.

• That different customers are willing to pay a different price for using the same amount of resources.

Page 15 of 30

[Insert appropriate disclaimer(s)]

Page 17: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

QUALITY MANAGEMENT:-

Starts with Good Hiring:-

Quality suffers when new employees can’t fulfill the expectations of the hotel manager and continue to under-perform despite repeated disciplinary actions. Quality suffers when ineffective managers are given roles beyond the scope of their abilities. Effective quality management starts with the hiring process, which should include strict policies that require hiring managers to closely check references and place new hires on probation for a period of time.

Embraces All Staff Members:-

Employees in the hotel industry are all expected to provide exceptional customer service. From the maid who tidies up the room to the front desk, maintenance staff and general manager, employees working in hotels must undergo continuing training and mentoring to remember their mantras. Effective quality managers include customer-service appraisals in their regular reviews. Individual staff members are rated and promoted based on their performance. Effective quality management results in a team that works together to retain and improve the quality of service they provide.

HUMAN RESOURCE MANAGEMENT:-

The book approaches hospitality human resource (HR) management as a decision making process that affects the performance, quality, and legal compliance of the hospitality business as a whole. Beginning with a foundation of the hospitality industry, employment law, and HR policies, the coverage includes recruitment, training, compensation, performance appraisal, environmental and safety concerns, ethics and social responsibility, and special issues.

Throughout the book, Human Resources Management focuses on unique HR dilemmas faced by managers in the hospitality industry, including:

• Understanding the needs of a broad employee group, from hourly workers with tip credit eligibility questions to high level accountants ensuring Sarbanes-Oxley compliance

• How hospitality managers who must act as one-person HR departments can make effective decisions and understand the consequences to themselves, their workers, and employers

• Working with labour unions in the hospitality industry using the labour-related legislation that affects the industry

Page 16 of 30

[Insert appropriate disclaimer(s)]

Page 18: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

• Managing employees in a global hospitality enterprise

COMMUNICATIONS MANAGEMENT:-

Compelling communication skills are important in a hotel regardless of some staff members not being guest-facing. A few hotels spend considerable amount of money on training their staff to interact with the guests. Good communication skills are a learned art and not a natural skill so one should consider training to enhance staff skills. Excellent communication skills enhance guest experience as it conveys that you are listening to your guests, valuing their feedback and conveying clear messages. Apart from communicating with the guests, your staff ought to know how to write emails. Good communication skills will impress your guests which will further prove beneficial to your hotel business. - Communication Matrix.

Conduct Staff Training:-

Arrange for a communication skills program that will be helpful for your employees to communicate effectively with the guests in crucial circumstances like dealing with complaints, co-coordinating between departments, attending to guests at the front desk and helping in documentation like menus, bills, reports and other hotel procedures. The training should be conducted once a month so that they get a chance to improve their communication skills. Also, encourage your hotel staff to communicate with each other in English.

Listen to your Employees:-

Successful communication is a two-way process which requires the management to periodically listen to their staff member’s views and ideas. If the management head does all the talking, employees tend to become lethargic. You need to listen to your employees as they are the ones dealing with the guests on a direct, day-to-day basis. For all you know, they might have ideas to better customer service or improvising of hotel functions if they encounter problems. The best way to listen to your employees is to hold feedback sessions on a weekly basis, take their inputs seriously and reward them. Motivate your hotel staff to help you in taking the hotel business forward.

Train your Staff on Attending to Guests:-

Your employees should know how to communicate well with your guests. There may be instances where your hotel might receive a complaint from guests in verbal or written form through reviews. The person in-charge to solve these matters must be well-trained in order to handle the issue wisely and subtly rather than ignoring it or dismissing it. Urgent matters can be handled with ease if your staff has good communication and behavioral skills.

The Mirror Technique:-

Page 17 of 30

[Insert appropriate disclaimer(s)]

Page 19: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

The best way to successful communication is to observe your guest’s own communication style and to respond accordingly. For instance, when you are dealing with a guest, you may notice that some guests make small conversations and others may be interested in the issue to be dealt with quickly and spontaneously. So observe your guests and act accordingly as it is important to think how you address your guest or deal with complaints (use humor for light-hearted guests).

Results of Great Communication Skills:-

- Improved customer service

- Better understanding of the instructions from supervisors among the staff members

- Great understanding of the latest technology used by hotels

- Boosted confidence to approach guests

- Positive attitude towards the workplace and higher level of understanding between the department heads

RISK MANAGEMENT:-

A strategic framework for hotel safety and security has been designed for owned and managed

hotels and is illustrated below showing the identified groups of risks and describing the

management activities carried out to mitigate the risks.

The red wheel illustrates the groups of risks which IHG's risk managers around the world work on

with IHG general managers and their management teams in order to minimize the risks and keep the

hotels safe.

Over the years we have developed risk management strategies to assess and treat individual types of

risk. This has involved developing policies, standards and guidelines, raising awareness levels,

training staff on the controls and systems which have been developed for their use and reviewing

and reporting upon progress and continued risks. These management activities are represented by

the purple wheel.

Security risks, particularly the threat of terrorism, have increased. In recent years, IHG has

developed an increasingly sophisticated response that is intelligence-led and risk-based. The

security risk environment is highly dynamic and needs to be managed both centrally and locally in

hotels. In common with all risk strategies, there are three elements that must be developed and

maintained: physical and technical systems, people capabilities and processes and procedures.

Page 18 of 30

[Insert appropriate disclaimer(s)]

Page 20: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

1.7 RISK LOG:-

Risk one: Fire damage

Cover needed: Fire/ property damage

Cafes and restaurants that cook on-site are susceptible to fires, particularly from grease, oil and

electrical sources.

The risk of fire damage depends on the type of cooking carried out, the equipment used and the

construction of the premises. For instance, a cafe serving prepared sandwiches and drinks has a

much lower risk than a fish and chips shop with large deep fryers, grills and exhausts that attract

grease.

Fire cover (sometimes known as property damage) can cover the cost of losing your business

contents and stock in a fire and other events such as rain, wind, hail storms or impact from

vehicles. It can also cover the damage to the actual building, if you own the property.

It is important to cover the full cost of replacing your entire contents and stock or you run the

risk of underinsuring. This can be a costly and – with some advice – easily preventable mistake.

Risk two: Breakdown of equipment and spoilt food

Cover needed: Equipment breakdown

Cafes and restaurants are reliant on their cooking and refrigeration equipment to trade. Business

owners need to be prepared for the possibility of these machines unexpectedly failing.

Page 19 of 30

[Insert appropriate disclaimer(s)]

Page 21: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Fire cover includes insurance for business contents and stock against external perils like fire or

the weather. However, equipment, or machinery, breakdown covers the replacement of broken

down equipment and parts when they fail unexpectedly.

The failure of refrigeration equipment can also put your perishable stock at risk, and fortunately,

equipment breakdown cover normally also covers the costs of replacing spoilt food and drinks

due to the breakdown.

Risk three: Food poisoning

Cover to consider: Public and product liability

If a customer suffers food poisoning from a meal your business has provided, you could be

legally liable to provide compensation for the injuries they suffer. If a customer – or worse,

multiple customers – sues your business after contracting a bout of food poisoning, you may

have to pay them damages for pain and suffering, medical expenses, lost income from being

absent at work, and legal fees.

If multiple customers take action against you, the costs can quickly mount up. These costs can be

hard hitting for restaurants or cafes, many of which operate with tight cash flows.

This is where product liability insurance comes in. Product liability covers your business if it is

sued by a third party as a result of injury or illness caused by your food or drink. You can still be

liable if you are providing food or beverages produced elsewhere.

You can set the level of cover for your business from $5 million to $20 million.

Of course, the reputational damage from a food poisoning outbreak can be crippling for

restaurant or café or hotel, so it’s best to avoid them in the first place. Most outbreaks occur due

to poor-quality, spoilt or deteriorating stock, so it is crucial that you properly manage your

produce to make sure it is still fit for consumption.

You must be absolutely vigilant to ensure your food handling and preparation practices are

completely hygienic. Ensure your premises are regularly cleaned and well maintained and that

your equipment, such as fridges or cool rooms, is kept in good working order.

Risk four: Customer injuries

Cover to consider: Public liability

Injuries, illness and property damage caused by customers slipping, tripping or falling are

common in the foodservice industry and can lead to very significant claims.

Page 20 of 30

[Insert appropriate disclaimer(s)]

Page 22: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

The most common claims of this kind experienced in cafes and restaurants include injuries from

slips on spilt food or drink, tripping on furniture or fixtures and falling down stairs. It is also

common for customers to fall from defective furniture, such as broken chairs.

Public liability cover is crucial for any cafe or restaurant owner. It can cover legal costs, medical

expenses, and damages, the expenses incurred by rendering first aid to others and compensation

for any damaged or destroyed customer property.

Also, while not related to injuries, public liability can also provide cover for any third-party

property in your care if it is destroyed or damaged as a result of your business’ actions or

negligence.

Risk five: Theft, fraud and burglary

Covers to consider: Burglary, Money and Employee Dishonesty

Your premises could be burgled while they are closed or held up by armed robbers while you are

trading. Unfortunately, your customers and even your employees could also steal from the

business.

It’s not only money at risk either, any particularly expensive stock, such as high-quality wines

and whiskies, could be particularly lucrative for thieves.

The main cover offered by insurers is burglary (or theft) cover. It covers the loss of stock and

contents from theft and armed hold ups. However, it does not normally include any cash stolen

or items lost as a result of employee fraud.

Money provides cover specifically for any cash stolen, lost or damaged. Given the amount of

cash that changes hands and kept of premises on a typical day of trading, theft is a key risk for

cafe and restaurant owners. You can elect to insure your cash during business hours, outside

business hours, in transit and at your private residence.

Employee fraud and dishonesty covers the loss of stock, business contents and money caused by

an employee’s acts of theft or fraud. It replaces the more limited protection provided by burglary

and, as unfortunate as it can be, it covers a broad range of circumstances where an employee may

have been stealing from you.

ISSUE MANAGEMENT:-

LABOR & SKILLS SHORTAGE

Page 21 of 30

[Insert appropriate disclaimer(s)]

Page 23: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

The problem of attracting and retaining qualified workers, once an issue only in an isolated number of markets, is increasingly becoming a global challenge.. Demography, wage levels, failure to adequately address worker satisfaction and a reputation for long hours and low pay are all cited as contributing factors. Creative hospitality professionals have begun to develop innovative strategies for capturing and keeping high quality workers.

CONSTRUCTION COSTS

All construction costs and the costs for furnishings, fixtures and equipment (FF&E) will continue to escalate in 2007, although at a pace a little slower than experienced in the period from 2004 through 2006. According to the Associated General Contractors of America, construction costs, driven primarily by materials costs, spiked dramatically in 2004. The annual increase for construction materials in general was approximately 10 percent in 2004, followed by 6.0- percent and 8.8-percent increases in 2005 and 2006, respectively. This compares to increases of 3.8 percent in the consumer price index and 3.7 percent in the producer price index for the period from August 2005 to August 2006. In 2004 and 2005, these two latter indices experienced annual increases averaging about 4.0 percent.

THE FUTURE OF HOTEL PROFITS

We can anticipate that it will become increasingly difficult to sustain profit growth and improved return on investment performance. And for several reasons including:1) increasing operating costs that will outpace the growth of Revenues Per Available Room (RevPAR). 2) the rising costs of capital and the need for reinvestment that will adversely affect hotel returns. 3) Increasing labor and benefits costs that are being driven by changes in demographics, government regulations and labor agreements, and 4) higher energy costs.

EMERGING MARKETS

The World Tourism Organization estimates that global tourism visitation (as measured by arrivals) has increased from 550 million in 1995 to 770 million in 2005 and is expected to continue to increase reaching 1,561 million by 2020. China alone is expected to generate 100 million outbound tourists by 2020 up from less than 15 million currently.

Page 22 of 30

[Insert appropriate disclaimer(s)]

Page 24: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Multicultural Issues

The newest trends and topics surrounding hospitality research and development is the management of multicultural talent and the political landscape affecting the hospitality industry. Franchise is becoming the biggest industry in the world, the success of franchise lie in the understanding of ownership, internal and external customer- and workforce-related - and top legislative matters, insights of marketing and promoting. With the development of globalization, multicultural issues are facing and disturbing the industry operators.

ISSUE LOG:-

The side effects of fighting air pollution and managing international trade are giving local restaurant owners a severe case of indigestion.Federal regulations that divert the nation’s corn supply to ethanol plants and a fight with Mexico over tomatoes are among the factors driving higher prices for local eateries, say industry experts.These and other issues are driving the associations that represent the hospitality industry to seek help from elected officials and regulators.

If we summarize all the drawbacks of manual hotel management system we can mention as follows

•It is much time consuming.

•Often the data are lost and the employee or manager is not aware of this.

•Lots of Manual labor is required for manual record keeping.

•Data is not always reliable as it is hand written and some human errors might have occurred example wrong telephone number among other.

•Difficulty of searching and retrieving records.

Slow process of reservation.

•Low in security.

Page 23 of 30

[Insert appropriate disclaimer(s)]

Page 25: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

•Files are prone to theft unauthorized modification due to low data security levels and standards.

•Retrieval of guest records is extremely difficult.

PROCUREMENT MANAGEMENT:-

Implementing a strategic sourcing initiative for operating supplies and equipment into a hotel's purchasing process allows hotel purchasing managers to expand their budget while building strategic, long-term relationships with suppliers that ensure consistent quality and availability of OS&E products and services needed to run daily hotel operations. With a focus on supplier alliances, hotel purchasing groups will be able to expand beyond a tactical role in procuring hospitality supplies to acting as strategic members of a hotel's organization.

Source One's team of professional and experienced purchasing project managers is your single resource for multiple responsibilities including strategic sourcing, procurement, and delivery coordination. Our conceptual budgets help you cost out each OS&E item and our understanding of your hotel and restaurant operations allows us to optimize purchasing schedules and provide cash-flow projections aid planning. We work on your behalf to accrue the operating supplies your business needs while establishing and improving vendor relationships.

Source One's experts can help reduce costs and improve supplier relationships in the following categories:• Amenities• Bed, Bath and Table Linens• Commercial Laundry• Fitness Equipment and Supplies• Engineering and Facilities Maintenance Supplies• Extended Stay, Time Shares and Condo Supplies• Food and Beverage• Kitchen Equipment• Guest Room Amenities• Housekeeping and Cleaning Products• Linens and Bedding• Office Supplies and Equipment• Paper Products• Signs and Print Solutions• Small Appliances• Trash Receptacles and Liners• Uniforms

Page 24 of 30

[Insert appropriate disclaimer(s)]

Page 26: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

COMPLIANCE RELATED PLANNING:-

The hospitality industry includes hotels and other forms of accommodation, as well as restaurants and catering establishments of all descriptions. As with any industry, the hospitality industry has a framework of rules, regulations and guidelines for issues pertaining to human resources.

Statistics reveal that more than 80% of all referrals to the CCMA are for unfair dismissals and that more than 63% of these are awarded in favor of the employee.

For the human resources department within your establishment, the main objective is to create an environment where employees can achieve their personal goals and objectives, and those of the company.

Various labor laws have been introduced to regulate issues relating to the employment of staff, minimum wages, the working conditions, the employment relationship and the termination of the employment agreement within the hospitality industry.

These are prescribed by two Bargaining Councils and one Sectional Determination for various areas and establishments.

Page 25 of 30

[Insert appropriate disclaimer(s)]

Page 27: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Appendix A: Project Management Plan ApprovalThe undersigned acknowledge they have reviewed the <Project Name> Project Management Plan and agree with the approach it presents. Changes to this Project Management Plan will be coordinated with and approved by the undersigned or their designated representatives.

[List the individuals whose signatures are desired. Examples of such individuals are Business Steward, Project Manager or Project Sponsor. Add additional lines for signature as necessary. Although signatures are desired, they are not always required to move forward with the practices outlined within this document.]

Signature: Date:

Print Name:

Title:

Role:

Signature: Date:

Print Name:

Title:

Role:

Signature: Date:

Print Name:

Title:

Role:

Page 26 of 30

[Insert appropriate disclaimer(s)]

Page 28: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

APPENDIX B: REFERENCES[Insert the name, version number, description, and physical location of any documents referenced in this document. Add rows to the table as necessary.]

The following table summarizes the documents referenced in this document.

Document Name and Version

Description Location

< Strategic practices in hotel operation >

[HOTEL MAINTENANCE MANAGEMENT]

http://www.diva-portal.org/smash/get/diva2:457050/FULLTEXT01.pdf

Page 27 of 30

[Insert appropriate disclaimer(s)]

Page 29: Report on new Business plan to set up a 7 star hotels

310-Project Management Project

Page 28 of 30

[Insert appropriate disclaimer(s)]