preparation of case analysis for project management... case is all about : Design, construct and equip a local hospital and securing necessary funds for constructions of a 20 bed capacity general hospital in the city of Kanpur. The project aims at providing an ROI of 15% and is to be started by 25th July 2014 by completing the project without exceeding the budget of 5.61 crores

1. By Group 7 –
ASHISH JHA - 20
ISHANI DAS - 37
POOJATIWARI - 53
RAMYA RAVIKUMAR - 61
SHIVAM NIGAM - 72
ABHISHEKTIWARI - 84
VINAY PILLAI - 86
Hospital – SEHAT
Customer name – Dr Siya Bharadwaj
Project Co-ordinator - Ms.Punya Awasthi

2.  Ms. Siya Bharadwaj, a MBBS from AIIMS has come
back to her home town Kanpur and wants to start a
hospital at a small level of 20 bed capacity.
 For this she has come to a professional Ms.Punya
Awasthi, who has an experience in forming project
proposal and helping in implementing it.
 She has an aim to help people by taking care of
health issue and a commercial aim to get at least
15% ROI.

3.  Project Scope Statement :
Design, construct and equip a local hospital and
securing necessary funds for constructions of a 20
bed capacity general hospital in the city of Kanpur.
The project aims at providing an ROI of 15% and is
to be started by 25th July 2014 by completing the
project without exceeding the budget of 5.61 crores.

4.  Project Objectives:
• To complete the project within the time boundary
i.e. 30th September 2015.
• To ensure that the project is completed within the
given budget.
• To earn adequate return on investment.
• To ensure that the supplies are timely.

5.  Project sponsor :
Bharadwaj and Sons 40%
Bank 60%

6.  Customers:
The customer or we can say beneficiaries of the
project are the people in the region who don’t get
good and timely medical facilities.This project will
serve the men, women and children by providing
the best health care facilities.

7.  Summary of EconomicViability:
• Phase 1: This phase involves running of a hospital
for patients in the region. It is proposed to establish
this 24*7 facility in a 5,000 square feet space in the
region.The unit will have separate facilities for
male, female and children.The estimated land cost
is INR 70 lakh which is expected to be funded by
Bhardwaj & sons and by bank loan.

8. • Phase 2: This phase involves the establishment of a
20 bed hospital in about 5000 square feet of land.
The hospital will have a built up area of 5,000 square
feet.
• Phase 3: This involves the recruitment and
marketing.
• The estimated project cost is 5.61 crores.
• This whole project is a health care facility so focus
is not on profit gain. But since the sponsors are
involved so this project aims at 15% ROI.

9.  Preliminary Stakeholders Analysis
• Project Sponsor: Kashinath Bharadwaj, Executive
Vice President, Bhardawaj & sons
• Bank: HDFC Bank
• Project Manager: Ms. Punya Awasthi
• Key person of project: Ms. Siya Bharadwaj

10. Major Deliverables

11. Deliverables Description
Deliverable 1- System Design
Study the hospital’s requirement and needs.
Getting statutory approvals.
Deliverable 2 - Construction Procurement of land
Legal Approval
Hiring an Architect for designing
Hire a contractor for construction
Deliverable 3 – Equipment
Quotations and Contracting fromVendors for
various Equipments
Furnishing
Ambulance, stretchers etc
Deliverable 4 – staffing and marketing
Recruitment of specialists, administrative staff,
supporting staff etc.
Advertising through newspapers and local
television channels
Deliverable 5- Analysis
Analyzing at each step that the project is running

12. Summary budget

13. Cost of Project Total (in Rs.)
Land cost@ 990 per sq. feet 0.70 crores
Construction cost 1.20 crores
Machinery & equipment 1.96 crores
Furnishing 0.90 crores
Vehicles 0.22 crores
Contingencies – 5 % construction cost 0.06 crores
Funding operating losses 0.50 crores
Recruitment 0.02 crores
Advertising 0.05 crores
Total estimated project Cost 5.61 crores

14. Cost Break down as per different major
activities or materials involved

15. Material / activity involved Cost (in Rs.)
LAND @ Rs.990 / square feet 7000000
Construction:
Contract to a regional contractor (raw
material, labour etc.)
3200000
Machinery & equipment
25 Hospital bed 250000
25 Bench 2500
5 Cabinet 30000
2 Conference table 25000

16. 2 Emergency trolley 1000000
5 Executive chair 180000
30 stool 45000
2Waste paper tub 700
5 Oxygen set 5000
2 Binocular microscope 33000
1 Glucose analyzer 32000
2Weighing scale 9800
1Water distiller 120000
5 Surgeons stool 5000
2 ICU bed 150000
2 ECG Monitor 740000
2 Syringe pump 15000
3 ventilator 1200000

17. ICU instruments 1000000
Furnishing
30 Fan 36000
1 Air conditioner 22000
2 LED 8000
Wooden furniture (table, sofa, chair etc.) 150000
Vehicles
2 Ambulance 1500000
Recruitment
Expense on advertising for recruitment + per
head interview scheduling cost
2000000
Advertisement
Newspaper n(half page inTOI) 1212750
Hoarding ( GT road) 336000

18.  Cash INFlow
• Expected patients per day- 10
• Average charges-
Appointment fee- 100 Rs
Special appointment- 300 Rs
Sehat Hospital Project Proposal

19. Summary Milestones

20. Milestone Description
Month
s
Start Dates
Phase 1 –
Construction
Confirm the needs and project plan 1 25th July 17, 2014
Acquisition of land, carry out site
development.
2 25th August 2014
Obtain necessary statutory approvals. 2 25th October 2014
Prepare Master Plan and building
construction plans.
8
25th November
2014
Phase 2 –
Equipment
Equipment 2 25th June 2015
Furnishing 1 25th July 2015
Phase 3 – Staffing
and Marketing
Recruitment andTraining. 2 25th July 2015

21. Gantt chart of the Project

22.  WBS For Construction of Hospitals
1. Confirm the needs and project plan
 Confirm the needs for the service of the hospital.
 Confirm the market size, quality of services and
the capacity to serve.
 Prepare cost estimates and check with the
estimated budget.
 Prepare a preliminary schedule.
 Verify the cash flow and the project feasibility
assumption.

23. 2. Acquisition of land, carry out site development.
 Evaluate available sites and select the site.
 Negotiate the land acquisitions with the suppliers
and purchase of the land.
 Soil testing and land classifications.
 Architectural drawings.
 Approvals and permit.
 Site development.
▪ Arrange water.
▪ Arrange Electricity.
▪ Construct boundary walls and fence.

24. 3. Obtain necessary statutory approvals.
 Receive approvals for construction of the plan.
 Receive approvals from the board of medical
sciences.
 Receive Electricity supply approvals
 Receive approvals from the water supply
authority

25.  Prepare Master Plan and building construction plans.
 Select and appoint architect.
▪ Prepare overall Floor-wise layout plan.
▪ Construction details for lintels, staircase, walls
windows and doors.
▪ Colour schemes.
▪ Specification for flooring, fittings and fixtures.
▪ Prepare electrical cables layouts
▪ Prepare fire escape and sprinkler layout plans.
▪ Prepare air conditioning scheme and ducting layouts.

26.  Carryout Construction activities at the site.
▪ Select the prime contractor.
▪ OP Block
▪ Clinical Block
▪ Clinical lab block
▪ ICU block
▪ General Ward (Male)
▪ General Ward (Female)
▪ Admin Block
▪ Doctors Block

27.  Equipment and Furnishing
 Equipment
▪ Vendor Quotations
▪ Contracting with vendors
▪ Medicals contracting
 Furnishing
▪ Prepare the master plan for interiors decoration.
▪ Install Reception
▪ Install Room Furniture. – Beds, saline etc.
▪ Install ICU’s
▪ Install Doctors room and others.

28.  Recruitment and
Marketing
 Recruitment and
Training.
▪ Doctors
▪ Nurses
▪ Clerks
▪ Accountants
▪ Human Resources
▪ Drivers
 Marketing
▪ Print media
▪ Pamphlets
▪ News papers
▪ Outdoor
advertisements
▪ Hoardings

29.  Assumptions Risks :
 The staff may not be professional enough to handle
the equipment with care.
 Delay in getting the necessary approval for
construction of the hospital.
 The necessary resources may not be delivered on
time.

30.  Time constraint while recruitment and selection
of staff.
 Mismatch between demand and supply
 The loan sanction might get delayed from the
bank.
 Prices of raw materials , interest rates might
increase in case of inflation
 Political changes.

31.  Constraints
 Competition from other local private health
centers.
 Government owned hospitals are cheaper
 Doctors might charge high fees.