Project Management: A Case Study On Hospital Development

PROJECT MANAGEMENT OF HOSPITAL DEVELOPMENT
Project Management: A Case Study on

Hospital Development
[Name of the Student]
[Name of University]
Table of Contents
Introduction......................................................................................................................................4
Part 1: Project Charter.....................................................................................................................5
A. General Information................................................................................................................5
B. Scope of the Project................................................................................................................5
C. Aims of the Project..................................................................................................................7
D. Objective of the Project..........................................................................................................7
E. Assumption..............................................................................................................................7
F. Major Constraints....................................................................................................................8
G. Project Milestones...................................................................................................................9
Part 2: Stakeholders.......................................................................................................................11
A. Identification.........................................................................................................................11
B. Stakeholder Analysis.............................................................................................................11
C. Stakeholder Impact Matrix....................................................................................................12
Part 3: Project Management Plan..................................................................................................13
A. Identification and Sequencing of Activities..........................................................................13
B. Work Breakdown Structure...................................................................................................14

Part 4: Project Life Cycle..............................................................................................................16
A. Project Life Cycle Model......................................................................................................16
B. Iterative Waterfall Model......................................................................................................17
Part 5: Project Management Process.............................................................................................18
A. Gantt Chart............................................................................................................................18
B. Monitoring and Control Process Group................................................................................18
Part 6: Quality Management of the Project...................................................................................19
A. Quality Management Plan....................................................................................................19
Part 7: Human Resource Management..........................................................................................22
C. Organizational Chart.............................................................................................................24
Part 8: Communication Plan..........................................................................................................25
A. Communication plans for the Project...................................................................................25
B. Cost Allocation......................................................................................................................28
Part 9: Milestones and Key Deliverables.......................................................................................29
A. Milestone of the project........................................................................................................29
Part 10: Risks and Mitigation........................................................................................................31
A. Identification of Project Risks..............................................................................................31

C. Closing the Construction Project..........................................................................................34
Conclusion.....................................................................................................................................34
Bibliography..................................................................................................................................35
Introduction
Project management is the systematic and methodological approach of using the
knowledge, skills, processes and methods in order to achieve the project goal within allocated
time. For this particular report, the project selected for the generating the project management
plan is the Construction of a New Hospital Building in Saudi Arabia.
Construction of every hospital building differs from each other according to its seismic
upgrades, floor renovation and infection control protocol. The significant aim of the construction
project is to complete the construction work within time and with given resources. The first need
of the project is to select an appropriate site for construction. Furthermore, after the construction
of the main building, the renovation of the different floors according to the hospital authority's
need is conduction. Apart from that, the project deals with the placing and installation of the
machinery equipment in the appropriate area are needed.
Part 1: Project Charter

A. General Information
Project Title
Project Location
Brief Description of
the Project
Construction of Sunrise Medical Hospital Building

Riyadh, Saudi Arabia
The project of a new hospital building aims at designing and
construction of the new hospital. The project also deals with the
implementation of the different facility like electricity and plumbing.
Prepared By
Date
Lastly, the project also commissions for the newly constructed hospital.
[Name of the Student]
[Mention Date]
Version
1.0
B. Scope of the Project
Following are the scope of this project
To develop new hospital comprises the selection of an appropriate site for the
building that facilitates the efficient communication and transportation.
To design and construction of the main building also come within extend within
the project scope.
To covers the renovation of the different floors, tendering contract, implementing,

and installation of the medical equipment and finally recruiting the staff members
from the hospital. The project will take at least $1 billion in total for completion.
Exclusion: The stakeholder training process is excluded from the project scope and it is
assumed, as the stakeholders are capable of the individual activities.
The project specifications:
Name
Size Of The Land
Number Of Buildings
Number Of Storey
Number Of Rooms And Beds
Specification
14,800 m of land is required of the building.
One hospital building along with parking area.
The hospital building comprises of G+4 stories.
100 medical rooms with 92m2 of per bed area.
Number Of Laboratories
Number Of Operation Rooms
Consultation Rooms
Outpatients Clinics
Elder Friendly
Parking Area
With 33 rooms in each floor.

3 Laboratories in the ground floor
12 Operation rooms, four at each floor.
7 consultation rooms in the ground floor
No outpatients clinic in the hospital building.
Installation of Lifts.
Yes, parking area is allocated besides the hospital building.
C. Aims of the Project
The significant aim of the project is designing and construction of the construction of the
hospital building. Apart from that, the project also aims at an effectively design and implements

the electricity and water supply of the building. Furthermore, the project also commissions
different types of workers for the construction of the hospital building.
D. Objective of the Project
The objectives of the project are summarized below:
To evaluate the need for the selected site for the hospital building
To efficiently design and construct the hospital building according to clients

requirement
To commission the hospital
E. Assumption
Following are the key assumption of this project
The project has to be completed within 2 years.
The project has to be developed within $1billion.
The total man-hour needed for the constructing the hospital is 6000 hours.
The operation function of the hospital building does not come with the project
Efficient transportation and communication facility is provided for the completion

of the project.
F. Major Constraints
Time, quality and cost are the major parameters of the construction project management
activity. The time is the most vital of the constraints. It defines the actual time required to
complete the construction project. The time required to complete the project is directly
proportional to the objective of the construction. The second constraint of the project is the total
cost required for the project. The total cost comprises of the cost of the resource, labor cost, risk
estimation, etc. The last and the final constraint of the project is the scope or quality. The scope
of the project has the potential to affect the daily business.
Cost
Quality
Scope
Time
G. Project Milestones
Milestones
Completion Date

Architectural Design
Select and Finalize design
Call out for Designs
Construction Work
Electrical Work
Circuit Breaker Installation
Electrical appliances Installations
Wiring
Plumbing Works
Piping
Sanitary Fittings
HVAC
Ducting
Equipment Fitting
Interior and Exterior Decorations
Paint
Decorate Exterior
Install Doors
Install Windows
17th July 2012

17th July 2012
3rd July 2012
31st March 2014
18th August 2014
28th April 2014
9th June 2014
18th August 2014
28th July 2014
2nd June 2014
28th August 2014
16th September 2014
22nd July 2014
16th September 2014
18th November 2014
18th June 2014
18th June 2014
28th April 2014
21st April 2014
Part 2: Stakeholders
A. Identification
Stakeholders are the group of people that are affected or involved in the project of
developing a hospital building. The stakeholder includes the customers, project team, project
sponsors, suppliers, support staffs, and even the opponents of the project. In this project, the
main stakeholders are government, Insurance industry, society, health care providers, hospital
administrators, local body representative and electrical, and civil engineer.
B. Stakeholder Analysis
Stakeholder
Electrical and Civil Engineer
Government
Insurance Industry
Society
Health Care Providers
Hospital Administrators
Benefits
Provides efficient design and construction of the
building.
Provides energy saving and effective electrical
equipment for the hospital.

Controls rules and regulation of the hospital.
Provides effort in licenses and regulatory business.
Access to affordable and quality health care.
Provides medical care and
Provides Efficient management and financial
resource
C. Stakeholder Impact Matrix
10
11
High
Government
Hospital Administrator
Keep
Manage
Satisfied
Insurance Industry
Closely
Electrical
and Civil
Engineer
Power
Monitor
Society
Low
Keep
Informed
Health care, provider
Interest
High
12
Part 3: Project Management Plan

A. Identification and Sequencing of Activities
Task Name
Project1
Site Preparation
Site Selection
Site Survey
Architectural Design
Select and Finalize design
Call out for Designs
Construction Work
Electrical Work
Circuit Breaker Installation
Electrical appliances
Duration
730 days
60 days
30 days
30 days
60 days
60 days
50 days
444 days
100 days
20 days
30 days
Start
Wed 2/1/12
Wed 2/1/12
Wed 2/1/12
Wed 3/14/12
Wed 4/25/12
Wed 4/25/12
Wed 4/25/12
Wed 7/18/12
Tue 4/1/14
Tue 4/1/14
Tue 4/29/14
Finish
Tue 11/18/14
Tue 4/24/12
Tue 3/13/12
Tue 4/24/12
Tue 7/17/12
Tue 7/17/12
Tue 7/3/12
Mon 3/31/14
Mon 8/18/14
Mon 4/28/14
Mon 6/9/14
Installations
Wiring
Plumbing Works
Piping
Sanitary Fittings
HVAC
Ducting
Equipment Fitting
Interior and Exterior
50 days
85 days
45 days
40 days
121 days
81 days
40 days
166 days
Tue 6/10/14
Tue 4/1/14
Tue 4/1/14
Tue 6/3/14
Tue 4/1/14
Tue 4/1/14
Wed 7/23/14
Tue 4/1/14
Mon 8/18/14
Mon 7/28/14
Mon 6/2/14
Mon 7/28/14
Tue 9/16/14
Tue 7/22/14
Tue 9/16/14
Tue 11/18/14
9,10
Decorations
Paint
Decorate Exterior
Install Doors
Install Windows
45 days
57 days
20 days
15 days
Wed 9/17/14
Tue 4/1/14
Tue 4/1/14
Tue 4/1/14
Tue 11/18/14
Wed 6/18/14
Mon 4/28/14
Mon 4/21/14
9,10,11,13,14,16,17
7
7
7
B. Work Breakdown Structure
Predecessors
2
3
3
5,6
7
7,9
7
13
7
7,16
13
14
WBS of Development of a New Hospital
Part 4: Project Life Cycle

A. Project Life Cycle Model
Choosing a project life cycle model helps in dividing the entire project into sequential
manageable phases. An appropriate life cycle model helps in providing an efficient framework
for budgeting, scheduling project milestones, allocating resource and manpower. In this
particular project for the development of a new hospital building, Iterative Water Model is
chosen. For the iterative water life cycle model, the entire project is divided in to five sequential
phases.
1. Feasibility Phase: In the feasibility stage of the waterfall model, the selection of site,
analyzing the project requirement and needs, analyzing the cost, stakeholders and schedule are
done. Once this phase is completed, one cannot change the planning done in the feasibility phase.
2. Planning Phase: In the planning phase of the life cycle model, the scope for
developing the hospital, recruiting the planning team, identification of the activities and the
resource needed to complete those activities are done.
3. Executing Phase: During the execution phase, the actual construction of the hospital
building is done. Furthermore, the installations of the primary electrical and plumbing services
are also made.
15

4. Monitoring and Controlling Phase: During this phase of the project life cycle, the
effective control and monitor of the cost, effort and scope are analyzed. The risks and issues are
also identified in this phase. For mitigating the issues, the project is again moved to the planning
or execution phase as required.
5. Closing phase: Whether the project meets the requirement for the feasibility phase is
verified, and the project is closed after the completion of the development of the hospital
building.
B. Iterative Waterfall Model
16
17
Feasibility
Phase
Planning
Phase
Executing
Phase
Monitoring and
Controlling Phase
Closing Phase
Part 5: Project Management Process

A. Gantt Chart
B. Monitoring and Control Process Group
Project Manager
Quality Assurance Manager
Part 6: Quality Management of the Project

A. Quality Management Plan
18
The three significant qualities that will achieve in delivering a high quality project are
Customer Satisfaction
Prevention over inspection
Continuous enhancement
The project manager and the hospital authority will mainly focus on the delivering the
customer need. Prevention over inspection in the development of hospital will focus on the cost
and effort used in the project. The continuous development or enhancement of the hospital
building is out of the scope for the project.
B. Total Quality Management
Total quality Management is the advanced methodology used in the development of the
hospital building for assuring and verifying the quality of the project. The four significant
element for the development of the hospital building is proper planning, construction,
communication, implementation of the basic application, quality control, risk management and
commissioning for the hospital. For this project the construction manager will have the complete
responsibility for commissioning the appropriate worker for the project. Furthermore he will
monitor every integrated task and identify the risks involved. The project manager will need to
communicate with all the employees and staff on a regular basis. The regular communication
will make them involved in the project and will assist them in sharing any thoughts or queries
regarding the project.
19
C. Quality Assurance
Quality Assurance is a systematic way of satisfying the design, planning, and
development of the hospital building. Furthermore, the identification and installation of the
primary services are also covered in the Quality Assurance.
D. Quality Control
With the systematic development of the hospital development project, the monitoring and
controlling the integrated task including the actual construction of the building, implementing the
primary services are reviewed by Quality Control.
For total quality control of the hospital development project, the following process will
be followed
Documenting the existing process
20
Evaluation of the process of best quality
Planning and Design of the new strategy
Implementing the strategy
Review
21
Part 7: Human Resource Management

A. Strategic Approach to Human Resource Management
The human resource management of the development of the hospital building comprises the two
significant element
Selection and Recruitment

Performance Management of the workers
The process of recruiting the right people for the right job in
the project. Recruitment of the workers for the project is
done externally.
Every integrated job is reviewed for the description of the
work profile.
Different people are employed for planning and design of
the hospital building, for on-site construction, for electrical
Selection and Recruitment
appliances installation, and for plumbing services.

Program Resource and Planning (PRP) is one of the most
popular techniques used for the development of the new hospital
building project. According to PRP techniques, the workers are
evaluated on the basis of skill or competency. Without evaluating
the performance of the individual worker, the project cannot be
Performance Management
properly managed. Evaluating the performance will help in

understanding the how much they are contributing to achieving the
project goal.
22

B. Key Resource in the Project
Key Resources
Resources Name
Project Manager, Quality Assurance Manager, Negotiation Manager,
Financial Manager, Construction Manager, Logistics Manager, Budgeting
Human Resources Team, Architectural Design Team, Electrical Team, Plumbing Team,
Financial
Construction Manager, On-site Construction Worker.

Equity Capital, Debt Capital
Resources
Water, Cement, Marble Chips, Earth, Steel, Bricks, Coarse Aggregate, Fine
Aggregate, Sand, Glazed Tiles, Woods.
Raw Materials
Operation Theatre, X-Ray Tabletop, Gastroscope, Electrocardiograph,
Medical
Lights, Anesthesia Trolley, Syringe Pump, Electro-Surgical Unit, Operating
Equipment
Instrument Set, Defibrillator, Ventilator ICU, Patient Monitor, Delivery

Bed, Incubator Laboratory, Refrigerator, Patient Trolley.
C. Organizational Chart
23
Part 8: Communication Plan
24
25

A. Communication plans for the Project
Who
Hospital
What
Why
When
Overview of the Discussion about Once a Week.
Authority
development
any
project.
planning
change
How
Meeting.
in
and
Project
construction.
Issues regarding Communication,
Manager
entire project.
Anytime.
Meeting,
verbal
monitoring
and
or
written
analyzing
the
communication.
project in every
phase
of
Landscape
development.
Issues with the Regarding
the During
Architect
design
MEP Engineer
hospital.
Communication
and
of
of feasibility phase
construction.
of the project.
Discussion and Twice a week.
controlling implementation
individual
team.
the site
the Meeting.
MEP of
the
MEP
services.
Identification of
the impact of the
MEP services on
the design of the
hospital building.
Meeting,
or
verbal
written
communication.
26

Civil Engineer
Communication
Regarding
the On
regular Meeting,
verbal
and designing the change
in
the basis.
or
hospital
of
the
communication
as design
clients
hospital building.
requirement.
About
written
the
progress of the
hospital
development
Structural
Developing
project.
the Report about the On
Engineer
design
and daily progress of basis.
reviewing
the construction
structural
of the hospital
specification
Source
Capital/ Bank
the hospital
of Providing
regular Meeting,
or
verbal
written
communication
of building.
Submitting
a Once a month.
Meeting
and
efficient financial report on the use
written
resource for the of the resource in
communication
completion of the the project.

Electrical
project
Designing
and Change
Design Team
installing
the implementing the basis.
basic
services
lighting,
electrical design
and On
of
the
like electrical services

in the
hospital
regular Meeting,
verbal
communication
27

ventilation
and building.
electricity line in Designing

the hospital.
electrical
network for the
on-site
construction
team.
and Providing report On
Plumbing
Designing
Design Team
installation of the to
basic
the
project basis.
regular Meeting,
communication
plumbing manager for the
services for the implementation

development
the
building.
of of the plumbing
hospital facility
on
the
construction site
and within the
hospital.
B. Cost Allocation
Task Name
Resource Names
verbal
Cost
28

Construction of a
$1,000,000,000.00
New Hospital Building
Site Preparation
$167,000,000.00
Project
Manager,
Negotiation
Site Selection
$83,500,000.00
Manager
Project
Manager,
Quality
Site Survey
$83,500,000.00
Assurance Manager
Architectural
$249,000,000.00
Design
Select and
Architectural
Design
Team,
$83,000,000.00
Finalize design
Project Manager
Call out for
Architectural Design Team
$166,000,000.00
Designs
Construction Manager, On-site
Construction Work
$83,000,000.00
Construction Worker
Electrical Work
$167,397,600.00
Circuit Breaker
Electrical Team
$83,400,000.00
Electrical Team, Project Manager
$83,500,000.00
Electrical Team
$497,600.00
Installation
Electrical
appliances Installations
Wiring
Plumbing Works
Piping
$83,602,400.00
Plumbing Team
$83,500,000.00
29

Sanitary Fittings
Plumbing Team
HVAC
$102,400.00
$167,000,000.00
Ducting
Electrical Team
$83,500,000.00
Electrical Team
$83,500,000.00
Equipment
Fitting
Interior and
$83,000,000.00
Exterior Decorations
Paint
$20,750,000.00
Decorate
Exterior design Team
$20,750,000.00
Install Doors
$20,750,000.00
Install Windows
$20,750,000.00
Exterior
30
Part 9: Milestones and Key Deliverables

A. Milestone of the project
Milestones
Deliverables
Date
Site Selection
The feasible site was selected in Riyadh, Saudi 13th February 2012
Arabia for the construction of the hospital.
Survey
Selected site was surveyed to complete the design of 24th February 2012
the hospital building.
Design
The
appointed
civil
engineer
has
efficiently 3rd July 2012
completed the design of the hospital according to

clients requirements.
Construction
The Construction of the hospital was completed 31st March 2014

according to the initial design and planning.
MEP
The implementation of the Mechanical, Electrical and 16th September 2014

Plumbing Services were completed.
Medical
Various medical equipment and facilities were 21st April 2014
Facilities
successfully installed on the hospital premises.
Completion
The hospital construction project was successfully 21st April 2014

completed.
B. Key Deliverables
Site Selection
Design of the Hospital Building
Construction of the Building
Installation of the MEP Services
Installing the Medical Equipment
Complete and End Project
31
32
Part 10: Risks and Mitigation

A. Identification of Project Risks
The risks involved in the development of the hospital building are multi-dimensional. The
significant aim of the project management is to effectively complete the undertaken project
within given time and resources. In project management, any factor or decision that has a
negative effect on the scheduled time and cost of the project is defined as the risk.
In this particular project, the risks are broadly classified into five categories-
Serial
No.
Quality Risks.
Cost Risks.
Socio-Political Risks.
Personnel Risks.
Deadline Risks.
Risk description
Cell
references
Quality Risks: The particular design and construction specification of B1
the hospital was not mentioned beforehand.

Cost Risks: The delay in the payment of the on-site construction worker C4
33
has initiated lack of interest and reduced the productivity of the team.
Socio-Political Risks: Risk arises from certain restriction on the A2
construction of the hospital building on the selected site and restriction
of employing and availability of expatriate workers.

Personnel Risks: Disagreement in the project execution team, lack of C2
communication between the team members and the project manager
may be certain type of risk.

Deadline Risks: Due to continuous change in project plans, the deadline C4
for the integrated task has been increased. For this reason, the
commissioning and inauguration date is delayed.
Risk
Identification
(Unlikely)
B
(Moderate)
1 (Trivial)
2 (Minor)
3
C
(Likely)
D
(Certain)
1
3
(Lost
Time)
4 (Major)
5,
2
5 (Fatal)
B. Mitigation of the Identified Risks
For the mitigation of the identified risks, the following process is needed to be followed.
After identification, the risks need to be properly assessed for implementing a control procedure.
After applying a control strategy, the identified risks are monitored to verify the impact of risk

mitigation. For mitigating the identified risks in the hospital building development project, the
following actions could be taken.
Identified Risks
Quality Risks
Mitigating Actions
The verification and reviewing the feasibility of the hospital building design
before starting the construction.
Before integrating the task within the team of the project, all the specification
Cost Risks
needs to be clearly provided.

With proper discussion and management with the financial department of the
project, the payment can be delivered on time to the employees.
The new budget plan is created with the change in the planning of the entire
Socio-Political
project.
By communicating with the hospital authorities and legal authorities, the
Risks
lease of the land for the construction of the hospital building can be revised.
The employment of the skilled indigenous labor and worker will mitigate the
Personnel Risks
identified issue of area restricted recruitment.

During the planning and execution of the designing and construction of the
hospital building, the consent and participation of the all the members of the
project need to include.
A daily communication ad discussion meeting set between the different team
members and project authorities will help in mitigation the lack of
Deadline Risks
collaboration and communication.

After any change in the project plan and implementation, the scheduling
needs to be revised according to the given deadline.
C. Closing the Construction Project
34

The construction of the hospital project was successfully completed with the given
resource and on 21st April 2014. All the human resources associated with this project were
released from their duties. Finally, on 1st may 2014, the ribbon cutting ceremony took place for
the grand opening of the hospital. The construction project end there but the operation manuals,
as-built drawings and training to use the medical equipment were done on a course of six
months.
Part 11 Project Procurement Management
procurement.docx
Conclusion
This project management report described the plan of constructing hospital building that
differs from other extension such as floor renovation, seismic upgrades, protocol of infection
control, etc. However, through this project management plan, analyst represented that project
will complete within the given time and allocated resources. Moreover, with the help of detail
design plan, project manager ensure the renovation of floor design that was more important for
conduction. Apart from that, analyst represented the risks or the project including mitigation
plan.
35
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Project Management: A Case Study On Hospital Development

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PROJECT MANAGEMENT OF HOSPITAL DEVELOPMENT