Project Management: Maximizing Efficiency with Minimum Costs - Research Paper

Introduction

The significant role of project management has gained widespread academic and research attention as modern businesses and leader seek to maximize output efficiency at minimum costs. Organizations today seek to use approaches in project undertakings to ensure that a project is completed within the scheduled costs in time, financial and human resources. Primarily, project management refers to the application of knowledge, skills and techniques in overseeing a project to ensure that the objectives are attained within the set frame of time and resources (Kanna, Ahmed and Najib 607). The process entails planning, implementation and evaluation in the future to measure the progress and viability of a project in the prevailing business conditions. This paper uses the case of Palm Island in Dubai to explain how project management adds the overall economic and social value of a project. The discussion outlines an overview of the project and the relevance of project management to its success.

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Project Scope

The Palm Jumeirah is an artificial offshore island which is located in the United Arab Emirates. The popular archipelago was intended to be among the three first islands of this kind in Dubai inclusive of Palm Deira and Palm Jebel Ali which are considerably bigger than Jumeirah in size and scope. The Palm Jumeirah project was developed by now state-owned real estate firm known as Nakheel, following a master plan from American architectural company, Helman Hurley Charvat Peacock. The island project which was designed to resemble an encircled palm tree mainly received its funding from earnings in petroleum. The project also received external financing from the Industrial and Commercial Bank of China. Other key sponsors of the government-initiated project were the World Wildlife Fund, Emirates Diving Association, Mongabay, Emirates Environmental Marine group, among other community stakeholders.

The main objective of the Palm Jumeirah project was to address the revenue weakness of Dubai due to the economy's overdependence on earnings from the petroleum industry. The Dubai government created an Urban Development Company, Nakheel with the goal to improve the economy's attractiveness to foreign investment and mega projects from different investors around the world (Design Build Network 1). Nakheel overtook the project management of Palm Jumeirah in 2000 following a signed contract with Prince Sheikh Mohammed. The choice of the oversight authority was a key starting point for adding value to the project in the long-term. The choice of a stable system of project leadership helps to lay the foundation for the organizational structure and chain of command throughout the life of a project. Structured leadership in projects also adds value by ensuring efficiency in the allocation of resources. Good project managers who maintain open door policy are likely to receive high employee engagement to assess the progress at various stages of the scheduled time.

Project Cost

The Palm Jumeirah Island project officially began on 23/08/2001 to become the most ambitious and unique project in the world. The estimated cost of the Palm Jumeirah was $4-6 billion at the start but by the end of 2008, the project had utilized at least 12.3 billion US Dollars. This misappropriation of project costs is a major issue in project management especially in the case of mega projects like the Palm Jumeirah Island. In this case, the project schedule underwent different economic phases which influenced the cost of key inputs such as labour and capital to support the project (Gulf Construction 3). Proper cost management during the project added value by ensuring proper utilization of all the financial and human resources that the government of Prince Sheikh Mohammed had set aside to support the construction. Project budgets can easily increase especially in the changing modern business landscape and thus managers should strive to ensure cost control to balance between the internal costs of time and the external expenses to spent on business suppliers.

Organizational Structure

The Palm Jumeirah project also consisted of a simple organizational structure to eliminate bureaucracy in the decision-making processes. The initial structure which was used in the first and second phases of the project cycle comprised of the Project Developer Nakheel as the top-most power. Below the developer was the; Villas Consultant ACE, two Infrastructure Consultants ACE & Pearson, and Shoreline Consultants. All these consultants were put in charge of contractors and were asked with giving regular market feedback. As the project entered the third phase of the construction, there had been massive growth in the number of resources needed to complete the project. Several changes in design to accommodate solutions to past engineering mistakes in structure led to the introduction of new elements in the project structure.

The major changes in the 3rd phase leadership model were the introduction of a Project Director who directly reported to Nakheel. The global director was responsible for the Project Program in Turner, HB and PB. A project manager was also selected to head each of the three consultants who oversaw the activities in a section of the mega project. Proper planning and management of the Palm Jumeirah agenda ensured that the project retained flexibility throughout the course of its development. This element increased the ability to change the organizational structure to match the changing landscape in the management of a project (Hoffmann 9). Some long-term projects can be handed over any time there is a change of guard in the political environment and thus prior planning ensures that a project can succeed regardless of changes in leadership. Explaining the strategic goals and vision of a project at the very start ensures that each person is made aware of their job description to eliminate chances of role ambiguity within the structure. Clear structures also increase the level of accountability among project leaders in the sourcing, allocation and usage of financial and human resources of a company to complete an effective project and on time.

Project Management Tools

The effectiveness of the management approaches used during a project significantly influences its success in the long-term. The major technique used in the management of the Palm Jumeirah project is the cause and effect model (Basu 5). Also known as the fishbone diagram, the framework outlines the key players and stakeholders and analyzes the ripple effect to each party. The major tools used to make the Palm Jumeirah project success is team building and effective communication. Project managers at all levels were required to introduce and support team dynamics to promote the combination of skills and talents for effective decision making. Effective self-directed work teams also provide for free flow of information across departments to ensure healthy competition within work teams while maintaining stable personal relationships at the end of project cycles.

Project Evaluation

The Palm Jumeirah project has been considered a huge success in the history of project management given the ability to compete with the scheduled time frame (Gulf Construction 5). The Palm Jumeirah Project attained the main goal which was to open up the region to foreign investment from the rest of the world. The multibillion-dollar project currently comprises of several residences and hotels which have rapidly increased its attractiveness as a luxury tourism destination. Based on this analysis, project management significantly influenced the success of the project and added its long-term value for the Dubai economy.

Work Cited

'' The Palm Jumeirah Development in Dubai, United Arab Emirates." Design Build Network, Apr. 2019. https://www.designbuild-network.com/projects/palm-jumeirah/

"Ultra-Luxury on Palm Jumeirah (Ultra-Luxury on Palm Jumeirah)." Gulf Construction, Apr. 2019. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=bwh&AN=fc221309746013ac554571fbd180e1c80021&site=ehost-live.

Basu, Ron. Managing Quality in Projects. Routledge, 2013. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=498938&site=ehost-live.

Hoffmann, Elizabeth C. Project Management : Practices, Challenges and Developments. Nova Science Publishers, Inc, 2013. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=664083&site=ehost-live.

Kanna, Ahmed, and Najib B. Hourani. "'A Group of Like-Minded Lads in Heaven': Everydayness and the Production of Dubai Space." Journal of Urban Affairs, vol. 36, Aug. 2014, pp. 605-620. EBSCOhost, doi:10.1111/juaf.12074.