POLITECNICO DI MILANO

Faculty of industrial and information engineering

Industrial Project Management

Professor: Franco Caron

Group members:

Luise Räuchle – 836152

Sandeep Kumar Mishra – 835298
Matteo Biagiotti – 837220
Matteo Mascetti – 853977
TABLE OF CONTENTS:
0. Introduction ........................................................................................................................................................................................................................................................ 3
1. Work breakdown structure ................................................................................................................................................................................................................................. 4
2. WBS / OBS ........................................................................................................................................................................................................................................................ 5
3. Project Network ................................................................................................................................................................................................................................................. 6
4. Gantt Chart: ........................................................................................................................................................................................................................................................ 7
5. Workload profile of a critical resource .............................................................................................................................................................................................................. 7
6. Analytic cost estimate for each work package ................................................................................................................................................................................................... 8
7. Physical progress baseline ................................................................................................................................................................................................................................. 9
8. Cost baseline .................................................................................................................................................................................................................................................... 10
9. Risk register ..................................................................................................................................................................................................................................................... 11

TABLE OF FIGURES
Figure 1: Work breakdown structure ......................................................................................................................................................................................................................... 4
Figure 2: WBS / OBS ................................................................................................................................................................................................................................................ 5
Figure 3: Network diagram ........................................................................................................................................................................................................................................ 6
Figure 4: Gantt chart .................................................................................................................................................................................................................................................. 7
Figure 5: Analytic cost estimate................................................................................................................................................................................................................................. 8
Figure 6: Physical progress baseline .......................................................................................................................................................................................................................... 9
Figure 7: Cost baseline............................................................................................................................................................................................................................................. 10
 0. Introduction

The aim of this project is the organization of a social entertainment event namely a concert. Due to the organizational complexity of concerts, the event requires a lot of
preparation and therefore a detailed project plan and schedule. The concert is supposed to be carried out in a concerts hall, granting space for 15.000 people and international
artists of different categories are supposed to be engaged in order to create a creative variety of musical input. The project team wants to develop a holistic concept, containing
all major aspects for the successful event execution. This involves concrete planning of the work packages, cost analysis and risk consideration. In this paper, a project
management schedule is employed linking all organizational aspects with the project team and their tasks.
 1. Work breakdown structure

Figure 1: Work breakdown structure

The first step in the project plan is the setting up of the work breakdown structure. The major points to consider are the project management, the sales, the security, the site
location, the marketing and the concept development. The figure 1 shows the WBS, the activities which are internally executed are highlighted in blue whereas the outsourced
activities are highlighted in green. The project management consists of human resource, financial management and business planning. All these activities are tasks of the
project team. The work package sales consists of ticket sales, carried out externally and merchandising which consists of the procurement and the e-commerce. The
procurement is done internally and the e-commerce is outsourced. The work package security consists of the steward, the fire fighter service, the police and the medical
service. It is completely responsibility of the externals; the project team just focuses on scheduling their attendance. The site location involves two aspects, the core features
and the utility infrastructure. The core features are the design of the location, the procurement of all the required assets and the construction of the equipment. The
construction will be carried out by the crew of the artist since they have the required experience. The utility infrastructure can be split up into the further packages layout
design, procurement and construction. Similarly as in the core features, the construction is done by externals. The work package marketing is divided into the sub-points
media, flyers, and website and sponsor relations. The media service is procured by the project team, which means the communication will be carried out by the service
provider. The flyers are procured and distributed by the project team, just the printing is ordered by a printing center. The website is set-up by professionals however
maintained by the project team. The sponsor relations are based on the research to find them and maintaining the relations with them which is all done by the project team.
 2. Work breakdown structure / Organization breakdown structure

Figure 2: WBS / OBS

The project team requires four members in order to efficiently manage the workload and to provide the expertise needed for such an event. The first team member is the
project manager who takes care of all the organizational aspects of the project. Consequently his tasks are the whole work package project management. The second member
is the art director who is responsible for the creative part of the project. The main responsibility is the design of the core features of the site and the layout design. Additionally
he supervises the construction work on the site location to ensure that all the requirements for the event are met. Furthermore the PR and Marketing manager is a part of the
project team, taking responsibility for the engagement of the artists and scheduling of the event program. Another task assigned to the PR and Marketing manager is the ticket
sales and the merchandising. Finally the project team needs a supply chain and purchasing manager who connects the internal with the external organization. He is involved in
most of the procurement processes and manages the provision of the security services during the event.
 3. Project Network

Figure 3: Network diagram

The network diagram shows the flow of the scheduled activities and their duration. Certain work packages cannot be addressed before others are finished. The preliminary
requirement for the concert is the artist, therefore the booking of the artist is the first step and before it is finished no other activity can start. In the next step the project team
begins to search for sponsors and organizes the line-up booking to provide a concrete concert pan. These activities are the foundation of the project. After they have been
carried out the project team can start to address several activities simultaneously namely the media procurement, the flyers procurement, the website set-up, the merchandising
procurement, the core features design, the infrastructure layout design and the organization of the security services. Finally the Media communication can start, the flyers can
be printed and the website can be administrated and updated by the project team. Furthermore the sales of the tickets and the e-commerce start. In respect to the site
management, the core features procurement can be executed and the steward is instructed in the location. The procurement for the required infrastructure can be implemented
in the same time. The last activities to be carried out before the concert can begin are the construction of the infrastructure and the core features as well as the distribution of
the flyers to attract more attention to the event.
 4. Project scheduling without constraint:

Figure 4: Gantt chart

The Gantt chart is a tool to illustrate the time period of a certain project and the allocation of the workforce on the activities that need to be carried out simultaneously. This
facilitates the management of the resources which in this case are mainly the workforce of the project team. The overall duration of the project is scheduled with a time period
of three months, which is the time needed to organize the event until the day of the event. The managers can either dedicate full-time effort on one work package or split up
their time among several projects.

5. Workload profile of a critical resource

None of the resources considered in our project appeared to be critical, this because the period of preparation for the concert is long enough to guarantee time to people in
order to complete their activities. So the criticalities of the project does not happen to be the resources but the risk associated to it and the respect of the time.
 6. Analytic cost estimate for each work package

The analytic cost estimate focuses on analyzing the occurring costs in each work package. These costs are mainly the costs for the work force. The art director and the PR /
marketing manager are paid 25 Euros per hour whereas the Supply chain manager is paid a total of 30 Euros per hour.

Figure 5: Analytic cost estimate

Additionally the workforce of the steward, the police, the medical service and the firefighters are calculated with an average of 25 Euros per person per hour. Other than the
project team however the workforce of them is just required for the days of the actual concert. Further costs that arise throughout the project are about 5000 Euros for the core
features construction and the site as well as 3000 Euros for the utility infrastructure construction. The printing of the flyers has been calculated with expanses of 500 Euro and
10 Euros per hour of distributing them during the distribution period. Finally the artists need to be paid for performing on the concert. Due to the reason that several different
artists are going to perform the budget for the artist booking is set to 10.000 Euro. The two figures above illustrate the total amount of the costs per work package. It is
obvious that the artists require the biggest investment. The total estimated cost for the concert is 45.336,00 Euro.
 7. Physical progress baseline
In order to evaluate the physical progress baseline of the project, it has been necessary to make a distinction among the work packages. For work packages the Standard Man
Hours approach has been used. In particular, it has been possible to define the percentage progress as the ratio between the hours of work spent and the total hours needed to
complete the whole work package, net of operators’ productivity.

1,200 hrs

1,000 hrs

800 hrs
WORK (HRS)
600 hrs

400 hrs

200 hrs

0 hrs
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Remaining Cumulative Work Remaining Cumulative Actual Work

Baseline Remaining Cumulative Work

Figure 6: Physical progress baseline

It is possible to see from the diagram that the behavior of the curve is linear. It is also worth to notice that the picture shows the „Remaining Works“ Trend, therefore the
Physical Baseline curve is the complementary of this one.
8. Cost baseline
Following the same reasoning used to evaluate the physical progress baseline, it is possible to evaluate the cost baseline by calculating the cumulated curve of the costs in
time. The tool allows, in a second time, to compare the costs upfront at time now with the total costs planned at time now, performing the project costs control.

Chart Title

9% € 50,000.00

8% € 45,000.00

7% € 40,000.00

€ 35,000.00
6%

CUMULATIVE COST
% COMPLETE

€ 30,000.00
5%
€ 25,000.00
4%
€ 20,000.00
3%
€ 15,000.00
2% € 10,000.00
1% € 5,000.00

0% € 0.00
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Cumulative Percent Complete Cumulative Cost

Figure 7: Cost baseline

As for the physical progress baseline, the cost baseline is the main tool that allows the economical-financial control of the project. The sustained costs are confronted with
the cost baseline evaluated at time now, which represents the planned trend of the project. It is clear from the picture that the most of the project cost are held at the end of
that, this happens because the staging is the set of activities that cover the most of the costs.
 9. Risk register

Risk identification: In order to prepare the risk register and the probability/impact matrix we first have to identify the probable risks involved in the particular project.
Considering the complexity of this particular project there are many risks involved. In order to make the management easy it is important to group risks. Risks can be a cause
of the following:-

Risk Group Risk

Types

Human Massive crowd expected which High level of crowd

can cause stampede or crushing participation expected

Technological Mechanical instrument failure Electricity

Natural Traffic control Fire Control

Environmental Bad weather Waste Management

Risk Assessment:-Once the risks have been identified it is time to assess the risks considering both the occurrence probability and the severity impact on the concert. The risk
exposure depends upon both the probability and impact. Since we do not know the amount of cost the occurrence of any particular risk can cost we will take up a qualitative
method to prepare the probability/impact matrix and subsequent ranking of risk.

The probability/Impact matrix:-

Probability

H
Waste Management Fire Control
M
Stampede and Crushing Mechanical Instrument Electricity Failure
L Failure
Traffic Control Bad Weather

L M H Impact