Abstract
The project management is considered as the important aspect which supports an organization to complete a specific project within a given time span. It facilitates to utilize the limited resources in an effectual manner and reduce the cost involved to a great extent. The current essay is about the creation of new NFL stadium in Oklahoma City which involves several kinds of cost. It has been found that manpower and resources arrangement requires specific focus in order to increase the chance of successful completion of the project. In addition to this, government funding can be beneficial along with the involvement of local team for the construction of the new arena.
Introduction
The project management consists of several activities related to planning, scheduling and controlling a plan to accomplish a purpose (Cleland 45). The present essay is based on the project plan of creating new NFL stadium in Oklahoma City (NFL). In this regard, cost calculation has been provided regarding the resources requirement and overall management of the project.
How much will it cost to operate?
According to the below-mentioned table, the overall cost to operate the NFL project is 1080 USD million which consists of different types of cost associated with the construction of NFL project. It consists of several types of cost and activities which proves to be effective for the completion of the project at the time. The major cost involved in the project are associated with the activities such as market analysis, the arrangement of the resources, hiring the personnel, preparing the layout, construction and monitoring as well as execution. Owing to this, specific cost structure would apply but the aspects related to project management will also be applied for the purpose of reducing the cost and increasing the benefits derived from the project (Kerzner 33).
What are the historical costs?
The historical cost for the project consists of market analysis, selection of place and resources arrangement as well hiring the personnel (Atkinson 334). In this regard, the current cost of the project is considered as the historical cost which may increase in the future in accordance with the situation of the market and inflation prevailing in the economy.
What is spent on personnel, management, operation, etc?
The amount spent on the operation consists of preparation for the layout, construction, monitoring and modification as well as execution (50+250+140+90+100) = 630 USD million. On the other hand, the amount spent on personnel is 180 USD million that involve the cost of constructor and project team. In this manner, overall management of entire project would be 810 USD million.
What direct/ indirect costs exist?
The indirect cost involved in the project would consist of market analysis, selection of the place, resources arrangement. This indirect cost accounts for 270 USD million whereas the direct cost for the project is 440 USD million. In this regard, direct cost consists of personnel working on the site, the cost incurred in the preparation of the layout and construction related expenses. All these costs are considered as the direct cost. Owing to this, management of the project should consider the same at the time of selection or preparation of the project plan (Larson 25).
What are the current facility needs and costs associated with those needs?
The current facility needs are related to management of employees such as training, use of standardized equipment for their communication. Furthermore, the cost involved in the same is 360 USD million which is related to the arrangement of resources and hiring the personnel. For this purpose, approximate 70 USD million spent on training and management of the personnel. On the other hand, equipment required in the construction would be hired with the cost 120 USD million. In this regard, several kinds of facilities are required for the successful completion of the NFL project and meeting the specified objectives for the same. It leads to cater the requirement of all related stakeholders and determine the success of the project (Meredith 56).
What revenue streams, if any, have existed over the past five years?
The revenue streams over the past five years were related to retail shops which were presented in the particular location of the site. The fund generated by the government to improve the location selected for NFL project. It would be effective for management to invest the fund in the development activities and determine the success of the project in an effectual manner.
What new revenue streams could be created?
The new revenue streams could be created by allowing moving vans and other related business to the specific location of the NFL stadium. This would increase the rent of the location and accordingly management can continuously fund its development. Furthermore, government grant and subsidies can also be used for the construction of the project and ensure its timely completion without any kind of barriers related to finance. This would be effective to improve the transportation of the location and invite more sports activities. At the same time, sponsorship can be used as the source of income in which several companies can come to promote their products and services.
What is the economic impact on the region?
Oklahoma City is considered as the very effective in term of employment, neighborhood and other related aspects. This can provide extensive support for NFL project by providing the skilled and competent employee to work on the site. With the effect of several sports activities, this city is on boom through which stadium can be used for organizing several kinds of events. It would be effective to generate the long-term income and meet the expectations of all related parties in the right manner. On the other hand, Oklahoma City is well developed through which it becomes easy to invite several parties or businesses to increase the rate of return generated by NFL stadium. Owing to this, the selected region is appropriate for the construction of NFL stadium whereby management can recover the cost of construction in relatively less time span.
What would it cost to build a new arena to be used by the local team?
The cost involved in building the new arena would be little higher than the current project because of additional requirement. However, employing the local team, management can reduce the cost to a great extent. This would be effective for business to increase the rate of return and reduce overall cost. In this regard, it might be possible that cost would be saved by 120 USD million as skilled and competent local employees can be hired for the purpose of funding the project. Furthermore, it might be possible that cost of arranging resources would also be reduced to a great extent. This enables management to save the majority of the cost and manage all related activities in the right manner. This proves to be effective to meet the short as well as long-term objectives (Winter 645). Therefore, an association of the local team is an effective way to save the cost and increase the rate of return. For example, local team would not require the residential home and separate food facilities. They just need to simple training specifically related to the project. However, the extra cost may be incurred due to the communication. For this purpose, standardized tools and equipment would be provided for team members to determine uninterrupted work on the site.
Where would we put it?
The major cost would be put into the mapping the site and selecting the personnel as well as arranging the resources. At the same time, an appropriate place can be selected so as to ease the people interested in the same. For example, the new arena could be constructed in the industrial areas or the peaceful one where the large mass of public can access the good quality of services. This aids to meet the expectations of all related stakeholders such as management, users, employees and government etc.
How would we pay for it?
The cost incurred on the construction of new arena would be paid from income generated by NFL stadium and retail shops as well as other sponsorship parties operating their business in the same location at the time of sports activities. At the same time, cost-effective sources such as bank loan and overdraft can also be availed to the owner of the stadium. The cost would be paid for varied activities associated with the project so as to accomplish specified activities of the same. This leads to work effectively on the project activities so as to generate the higher rate of return.
Does it make sense for local government to help fund it?
The local government sources are considered as the effective source of finance for the completion of any project. The government provides finance at a relatively less cost through which borrower can easily pay its long as well as the short-term obligation. However, the long granting procedure of the government might cause the delay in the project. For this purpose, it crucial for management of the new arena to assess the entire requirement in a right manner and apply for the fund in an advance to ensure uninterrupted project activities. The local government would also help by funding the project as it would promote employment in the city and accordingly living standard of the people would be increased. At the same time, an economy of any country is based on the taxation and other related revenue sources of the government. Owing to this, if the government support such kind of project then it would be likely to increase the revenue. Owing to this, local government would definitely ensure the economic growth by funding the projects like creating the new arena.
Would enough revenue be generated from arena events to justify building it?
The new arena would be constructed for organizing any kind of sports activities, concerts and music festivals or any other ceremonies. It would be effective for management of the arena to charge the higher fee to give the arena on rent. Accordingly, the huge amount of money would be generated. On the other hand, being a developed city; Oklahoma's new arena can attract many corporate bodies to organize varied kind of ceremonies and attract media to organize several kinds of programs. This is because new arena would be designed to showcase sporting events or performances, theatre and any kind of functions. It reflects that enough revenue can be generated easily inviting business or corporate business or small entrepreneur to increase their sales turnover. For example, moving vans, small restaurants can be invited to sell their food at the time of any kind of activities. Apart from this, shops related to sport equipment or fashion aspects can also be opened at the same place so as to increase the revenue and recover the cost in the relatively less time span.
Work cited
Atkinson, Roger. "Project management: cost, time and quality, two best guesses and a phenomenon, it’s time to accept other success criteria." International journal of project management17.6 (1999): 337-342.
Cleland, David L., and Lewis R. Ireland. Project management. McGraw-Hill Professional, 2006.
Kerzner, Harold. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons, 2013.
Larson, Erik W., and Clifford Gray. Project Management: The Managerial Process with MS Project. McGraw-Hill, 2013.
Meredith, Jack R., and Samuel J. Mantel Jr. Project management: a managerial approach. John Wiley & Sons, 2011.
Winter, Mark, et al. "Directions for future research in project management: The main findings of a UK government-funded research network." International journal of project management 24.8 (2006): 638-649.