SKY DUBAI PROJECT

Dubai Sky Resort Project

Alikhon
9786
412 Business Project Management
Dr. Christian Amponsan

12/7/16

DUBAI SKI RESORT PROJECT

2
Abstract

When opportunities present themselves at the doorstep managers often try to be the first to take
advantage of them and e market leaders. However, in a hurry to be the first to take advantage of
the opportunity Project managers and organisation make mistakes in the evaluation of the
projects financials and suitableness to the fortunes of the organisation. Long-term projects must
therefore be evaluated to meet the necessary economic and financial parameters of the
organisation and the market in general before they are given a go ahead.
Thus, the Project team led by Fatima would have to take care of the project location in the first
place apart from devoting time to establish the projects economic viability. The right moves
would help the team zero in on the right business model for the project.

DUBAI SKI RESORT PROJECT

Dubai Ski Resort Project

Introduction
The Dubai Ski Project is being considered on a priority basis since the firm has already
enjoyed tremendous success in the first Dubai mall ski project. However, the current project
being considered is quite larger and involves a large budget as well. However, as the location is
well outside the city centre other factors like transportation facilities and time constraints to
reach the venue shall be considered as well. The project team must consider a variety of factors
to choose the most suitable location and must also undertake a detailed financial analysis as well
(Bredillet, 2007).
The team director and her team has the unenviable task of selecting the design, finding
manpower with experience to undertake construction and also to keep the cost down to
minimum. This would ensure that the project makes economic sense to the promoters.
Literature review
A project can be defined as a complex set of independent activities or tasks which are
interconnected and must be completed in whole to give it a shape. If one of the sub task or
activity is delayed or made badly the entire project would become a headache for the Project
managers (Dalcher, 2004).
In the whole scenario it would be great if the project outcomes can be predicted with some
degree of certainty before the project is actually started. The performance indicators would then
help the project team to try for some necessary changes to be made to make the project attractive.
However, in general the predictions happen to be off target and there is always a great t degree of
uncertainty regarding their goals and time constraints. So it is quite imperative for Fatima and
her team to make fairly accurate projections and work within the limited budget to achieve the
project goals (Lewis, 2007).
Discussion
Major Deliverables that contains at least three levels of detail
Some of the Major Deliverables of the project as follows:

DUBAI SKI RESORT PROJECT

1) Designing and finalizing the work breakdown structure.

2) Estimate the time duration of the sub tasks and cost involved.
3) Select the appropriate contractors and allot work to project teams.
4) The next step is to estimate the probable demand and explore project viability (Munns &
Bjeirmi, 1996).
Major Deliverables associated with planning the project
Deliverables are tasks which are scheduled to be completed in time and within a budget. A
deliverable might be report which was scheduled to be completed within a particular time frame
and are of vital importance to the overall completion of a project (Movassaghi, 1990).
1) Allocating sub tasks to project teams.
2) Taking experienced contractors on board to complete particular tasks.
3) Complete the project sub tasks in time allocated.
WBS alleviate some of the problems that occurred during the first meeting?
Work break down structure is defined as the breaking down of larger project tasks into smaller
parts so that the smaller sub tasks can be accomplished within a short period and overall project
can be completed in the shortest possible time. Each sub tasks would be devised in a manner so
that they can be supervised easily (Gray & Larson, 2000).
WBS is helpful in alleviating problems of estimating and control of a project:
a) Tasks can be allotted to project teams and responsibilities can be identified.
b) Building an effective project team.
c) It would help in identifying milestones and points of overall control.
d) Cost estimating is easy and time and risk can be minimized.
Fatima fined additional information to help her develop WBS structure
Fatima and her team would do better to rely on a variety of sources to accumulate information to
develop the right WBS to reduce uncertainty and keep costs within budget:
1) The first source form where Fatima and her team can get firsthand information for building
their WBS is the existing similar projects of similar kind anywhere in the world. These can be

DUBAI SKI RESORT PROJECT

the sources from where information can be collected regarding the costs and designing of the
project (Wakshull, 2002).
2) The project team members shall contact the project team members of Olympics or ski world
projects and collect right kind of information. Most other information can also be consulted form
consultants.
3) Team members shall meet often (once in 2-3 days) to share and exchange information and
discuss the same to reach more conclusive WBS.
Fatima and her Team members use the WBS to generate the cost estimates for the
tournament
Once the WBS is prepared with inputs taken from various sources and the general design of the
project is finalized the entire project would be sub divided into smaller parts so that each sub part
can be allocated to project team members for verification and execution. The project execution
would be easier with sub division of project tasks and project can be completed within budget.
As tasks are divided into deliverable sub parts cost estimation of such smaller portion would be
dome by the allocated team members. Once all the team members have done their individual cost
estimations, the same would be aggregated and presented to the budget committee of the
promoter group for approval and work can be started as soon as the budget is allocated (Gray &
Larson, 2000).
WBS makes it easier for project teams to allocate a limited budget. For this the team member
often have to juggle costs and select the low cost alternative. However sometimes a high cost
alternative can be selected because it is believed to be able to provide a better return on the
investment and higher quality overall product.
WBS breakdown would also provide an opportunity to the teammates to estimate costs along
with the period within which the project can be completed.

DUBAI SKI RESORT PROJECT

0

2,000,000
(1+0.25)1
2,500,000
(1+0.25)2
3,000,000
(1+0.25)3
3,500,000
(1+0.25)4

The NPV of the Dubai Ski project is coming to be a negative -1,332,500 and this indicates
towards an unviable economic estimation. Form the value the project seems to be destined for
rejection.
The assessment of the project location is estimated as follows form the given data. The location
which garners the highest weighted average score would be recommended to be chosen as the
location of the Dubai ski resort.
Location 1:
Category
Labour Cost
Labour Productivity
Labour Supply
Licensing
Material Supply
Transport Cost
Infrastructure
Total
weighted average

Weight
20
20
10
10
10
15
20
105
(205/105)

Sayed
Approach

weighted
score
3
2
2
3
2
1
1

60
40
20
30
20
15
20
205
1.95

DUBAI SKI RESORT PROJECT

score
Location 2:
Category
Labour Cost
Labour Productivity
Labour Supply
Licensing
Material Supply
Transport Cost
Infrastructure
Total
weighted average
score

Weight

North
Entrance

20
20
10
10
10
15
20
105

weighted
score
2
3
2
1
2
3
2

40
60
20
10
20
45
40
235

(205/105)

2.24

Location 3:
Category
Labour Cost
Labour Productivity
Labour Supply
Licensing
Material Supply
Transport Cost
Infrastructure
Total
weighted average
score

Weight
20
20
10
10
10
15
20
105

weighted
score

Al Barsah
3
1
3
1
3
3
3

(205/105)

60
20
30
10
30
45
60
255
2.43

The third location (Al Barsah) has the highest location wise average weighted score and thus it is
recommended for the ski project to the team of Fatima.

Conclusions/Recommendations

DUBAI SKI RESORT PROJECT

Dubai Ski resort Project is by no means an easy project. Fatima and her team has to
accomplish a dual task. First of all the project must be completed within the stated budget and
within a reasonable period. Secondly the team also ensure by selecting a particular location that
the resort would be able to draw a fairly large no of visitors on a daily basis in the initial stage of
the project to run economically independently (Dalcher, 2004).
However, the provided numbers of the project do not initially inspire confidence. Thus the
project team needs to alter the revenue model of the project apart from taking suitable
advertising an marketing campaigns to make the footfall higher. At present the dice is loaded
heavily against Fatima & her team and by the time the projects physical construction is
completed they must undertake to revise and restate the projects goals in realistic terms.

DUBAI SKI RESORT PROJECT

References
Bredillet, C. N. (2007). Project Management: Achieving Competitive Advantage. Academy of
Management Learning & Education, 6(4), 570572.
http://doi.org/10.5465/AMLE.2007.27694957
Dalcher, D. (2004). Project Management. Project Management Journal, 35(2), 51. Retrieved
from http://0-search.ebscohost.com.brum.beds.ac.uk/login.aspx?
direct=true&db=buh&AN=13380474&site=ehost-live&scope=site
Gray, C. F., & Larson, E. W. (2000). Project Management: The Managerial Process. McGrawHill. Retrieved from http://www.engr.sjsu.edu/fayad/current.courses/cmpe203fall2014/docs/ERM/Project Management 5th Edition.pdf
Lewis, J. P. (2007). Fundamentals of Project Management. Management.
http://doi.org/10.1109/TPC.2008.2001256
Movassaghi, K. K. (1990). Project management A managerial approach. European Journal of
Operational Research, 45(2-3), 372373. http://doi.org/10.1016/0377-2217(90)90203-N
Munns, A. K., & Bjeirmi, B. F. (1996). The role of project management in achieving project
success. International Journal of Project Management, 14(2), 8187.
http://doi.org/http://dx.doi.org/10.1016/0263-7863(95)00057-7
Wakshull, M. (2002). Modern Project Management (Book). Project Management Journal, 33(1),
60. http://doi.org/10.1109/MEI.2001.954596