MGT201A Project Management

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The project for redevelopment of the Royal North Shore Hospital consisted of redevelopment of more than 53 outdated buildings for turning it into an integrated campus of purpose built facilities (Royal North Shore Hospital - BVN. 2017). This project was particularly complex as the specialized health requirements associated with the project required extreme precision that included accommodated patient movement, proper material selection along with the infection control. The contract value of the project was nearly $721 million and started in the year 2008 and ended on July 2014. The Hospital is located in South Wales, Australia.

Project Purpose and Justification

The project of redevelopment of the Royal North Shore Hospital has been undertaken for enhancing the quality of the service provided by one of the oldest hospitals of the country. The purpose of the project is to deliver a remarkable piece of health infrastructure and complete the project to the highest standard and it is associated with the health and treatment of the people. The budget estimated for the project includes the cost of designing and implementation of the security measures while executing the complex constructional work (Royal North Shore Hospital – BVN, 2017).

The business objective aims at improve the operational efficiency of the already existing hospital for providing appositive environment for the patients and the staffs of the hospital.  

Project Objectives and success criteria

The project objectives that mutually support the milestone identified for the project along with the project deliverables have been identified. In success of the project largely depended on the successful completion of the following objectives (Royal North Shore Hospital, 2017):

• Develop an acute hospital, tertiary and quaternary services
• Over 5000 rooms and 126 departments
• 14 Inpatient wards
• 34-bed mental health unit
• 60-bed intensive care unit
• Inpatient Therapy Areas
• Cancer care centre
• Acute dialysis unit
• Staff Amenities
• Ambulatory care centre
• Academic and Liaison psychiatry
• Emergency department
• Helipad
• Interventional Suite
• Pharmacy
• Medical imaging department
• Vascular ultrasound
• Pathology
• Mortuary
• Psychiatric emergency care
• Respiratory investigations unit
• Transit lounge
• Sterilizing services department
• Facilities management
• Administration

The major success criterion of the project is timely implementation and completion of all the mentioned objectives within the allocated budget. The project implementation phase should also consider the safe shifting of the inpatients during the project execution.

The initial budget of the project was although $721 million, it underwent a number of budget revision with the final budget of the project being $1.2 billion. The redevelopment project included the creation of a new master plan for a site of 11 hectare, which was designed into a new acute building. The new Royal North Shore hospital thus developed is one of the largest and most complex hospitals that provide tertiary and quaternary services. The new building developed is the centerpiece of the redevelopment project, which covers an area of 100,000m². The project consisted of developing a building for incorporating 60-bed intensive care services, nine 30-bed inpatients units, a 34-bed mental health unit, a major radiation and oncology centre along with a major emergency department (Royal North Shore Hospital, 2017).

 Project Requirements

The requirements of the project in order to achieve the project success are –

- The separation of the back and font end of the building should not influence the efficiency of the area

-  Design should allow the variable location of the wet areas

- The redevelopment process should include an innovative physical layout

- The layout should minimize the patient and the staff travel by providing shortest travel distance possible

- The planning should involve the improvement of the operational efficiency of the hospital

Scope for addition of new requirements was kept open throughout the project implementation phase that helped in development of one of the finest projects of country (Royal North Shore Hospital, 2017):.

The following constraints pertain to the redevelopment of the Royal North Shore Hospital (Kerzner, 2013):

- The planning and the design of modification of the old building must be compatible with the structure and architecture of the old building.

- Atleast one project manager and 5 construction manager should be provided as the resources of the project

The following are the list of assumptions for the project. Upon agreement and signature of this project charter, all participants acknowledge that the assumptions made are true:

- This project has a complete support from all the project sponsors, project stakeholders and all the departments of the Royal North Shore Hospital.

- The project purpose will be readily communicated and circulated throughout the project team members prior to the deployment of the project

- The construction manager will look after all the resource requirement of the construction project throughout the project deployment.

- The budget of the project has been set by estimating the price hike of the materials and the labors that can be seen over the years.

 Project scope

The scope of the project is to create a campus that provides easy access for the community and provides a stable and welcoming environment for the hospital staffs and the patients. It should address the land use of project in terms of sustainability, availability and divestment for the activities for supporting the redevelopment of the Royal North Shore Hospital Campus. The project should further provide a robust and a flexible framework for expansion of the services in future.  The scope of works in the project of redevelopment of Royal North Shore Hospital includes:

- Site clearance and demolition of the portion that is needed to be re-developed

- Removal of the contaminated material along with the safe transfer of the inpatients

-  Develop a solution that would maximize the operability of the hospital and reduce the overall cost of the NSW health

 - Development of Acute Services building

- Development of a community health building

- Douglas building refurbishment

- Additional works as well, which includes pedestrian link bridges and civil works

Risk management and minimization plan

Construction projects are generally very complex as it is associated with various internal and external risks. In order to eliminate any kind of risks creeping into the system, a strict set of codes, laws and regulations are needed to be followed. One of the best ways of eliminating the risks associated with the construction project is to identify and understand the types of risks that are associated with a project and categorize them before the start of the project.  The different risks associated with this project are elaborated in the following paragraphs.

Types of Risks 

The different types of risks that is associated with the project are technical risks, logistical risks, environmental risks, project management risks, financial risks, socio-political risks and so on (Burke, 2013).

The major risks associated with the project include risks associated with the services and site age. Since it is one of the oldest buildings of the country, there were no proper infrastructure drawings. A team of engineers and electricians have surveyed and documented the existing services, which was required for the partial demolition works.  

The project size is huge and therefore the complexity of the project increases as well. A progressive inspection throughout the execution of the project is necessary for minimizing the risk of rework while upholding the highest quality and standards of the work.

Another problem or complexity of the project includes the size of the project team.  The estimated project team members are more than 5250 people. Managing such a huge team is indeed a difficult task and therefore it is a significant area of  risk as well.

As identified from the above image, the major risk management process followed in this project is assessment of risks followed by the identification of the risks. After identifying the different risks associated with the project, the different risk control measures are evaluated. The primary risk management techniques include reduction of identified risks, retention of the risks or removal of the risk. Risk avoidance is not an option for this project considering the complexity of the processes (Larson & Gray, 2013).

Risk Management Matrix 

Resourcing plan

The resources associated with this project include Human resources, construction project personnel along with the construction material and resources (Walker, 2015).

The human resources include project team members who are responsible undergoing the construction work. The materials consist of the long delivery materials, special materials, alloys, and transportation systems to be used in the project.

The different resource requirements of the project re planned and approved by the project manager before the initiation of the project. The resources correspond to the budget allocated for the project (Sears et al.,2015).

Managing scope creep and variations

Certain rules are standards and regulations are followed for managing the scope creep of the project. The project manager is needed to be vigilant form the day one in order to deal with the new requests as soon as possible. Another major standard that was followed during the project in order to manage the scope creep of the project is to understand the requirements and the objectives of the client. Furthermore, the project requirements are thoroughly studied and understood before the project initiation. The project further had the flexibility of changing scope that helped in managing the project variation in a proper way.

Customer management issues

The project did not face major customer management issues as the project management process included proper management of the customers’ requirements. The redevelopment project did not hamper the normal operation of the hospital however, the patients and the staffs are safely transferred before project implementation.

Project Close

A project checklist has been prepared after the end of the project for the use of the project manager for ensuring all the requirements have been fulfilled throughout the project life cycle.

 References 

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.

Chou, J. S., & Yang, J. G. (2012). Project management knowledge and effects on construction project outcomes: An empirical study. Project Management Journal, 43(5), 47-67.

Fewings, P. (2013). Construction project management: an integrated approach. Routledge.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Larson, E. W., & Gray, C. (2013). Project Management: The Managerial Process with MS Project. McGraw-Hill.

 Pritchard, C. (2013). The project management communications toolkit. Artech House.

Raftery, J. (2003). Risk analysis in project management. Routledge.

Royal North Shore Hospital - BVN. (2017). BVN. Retrieved 22 November 2017, from http://www.bvn.com.au/projects/royal-north-shore-hospital/

Royal North Shore Hospital. (2017). Nslhd.health.nsw.gov.au. Retrieved 22 November 2017, from http://www.nslhd.health.nsw.gov.au/Hospitals/RNSH

Sears, S. K., Sears, G. A., Clough, R. H., Rounds, J. L., & Segner, R. O. (2015). Construction project management. John Wiley & Sons.

Walker, A. (2015). Project management in construction. John Wiley & Sons.