MANAGERIAL SYSTEMS &

OPERATIONS

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TABLE OF CONTENTS
Section 1: Personal Learning Log.................................................2
Introduction................................................................................................2
Topic1: Operations management................................................................2
Topic2: Supply Chain Management (SCM)..................................................2
Topic3: Inventory management..................................................................3
Topic4: TQM and Lean................................................................................3
Topic5: Procurement...................................................................................4
References..................................................................................................4
Section 2: Marston Lodge Inventory Management System.............6
1. Introduction............................................................................................6
2. Inventory Management System.............................................................6
3. Inventory management of Marston Lodge for present scenario:............7
4. LIFO and FIFO theories for inventory management................................8
5. Conclusion..............................................................................................8
References..................................................................................................9
Section 3: Risk Matrix and Work Breakdown Structure (WBS)......10
1. Introduction..........................................................................................10
2. Operations Management in Hotels.......................................................10
2.1 Housekeeping..................................................................................10
2.2 Laundry inventory service...............................................................11
2.3 Maintenance....................................................................................12
3. Developing an ICT system....................................................................12
3. Importance of risk matrix in underpinning project success..................13
3.1 Risk Matrix of Marston Lodge..........................................................13
4. Importance of Work Breakdown Structure (WBS) in project success....15
4.1 WBS of ICT project in Marston Lodge..............................................16
5. Recommended project team................................................................17
6. Conclusion............................................................................................17
References................................................................................................18

SECTION 1: PERSONAL LEARNING LOG

Introduction
In this learning log, I will use Driscolls (2000) reflective model (What, So
what, and Now what) to reflect upon my learning and development
experience during studying this module.

Topic1: Operations management

The key function of operations management is to transform the inputs of
any company into output. The inputs are normally labor, material,
companys assets, cash, capital, technology, equipment or other resources
provided by the company and output indicate the finished products or
services (Slack et al. 2010). Operations management ensures best quality
of output by utilising the arrangement of all the resources required for the
best results. Although, operational management is vital in any industry or
organisation, but finance, marketing, and production are the major areas
where operation effectiveness is the primary need (Slack et al. 2010).
Based on the lecture on operations management and reading around the
subject, I learned that operations management within an organisation has
several short-range or long-term objectives such as minimising costs,
increase logistic flow with minimised variability, continuous improvement,
best customer service delivery, improve productivity and profitability levels.
If an organisation successfully achieves its objective then it means it has
achieved the operational effectiveness which is measured by determining
the effectiveness of operations by best utilising the inputs and transforming
them into outputs effectively. I am sure that operations management
lecture will help in understanding the inputs, process and outputs of
different operations during my future job.

Topic2: Supply Chain Management (SCM)

A supply chain is a system of organisations, people, activities, information,
and resources involved in moving a product or service from supplier to
customer (Choi and Cheng, 2011, p. 548). In fact, supply chain operations
convert inputs in the form of raw material and resources into a finished
product which is transported to the end consumer. Four common types of
supply chains include: local, national, international and global. The supply
chain operations vary in case of each type and thus a number of risks are
also attached with them. The Supply chain risk management is a concept
which deals with the implementation of strategies to avoid risks associated
with the supply chains using risk management frameworks (Wieland and
Wallenburg, 2012).

In my previous job, I was associated with the supply chain department

where I learned the usefulness of supply chain management an
organisation with the help of two handy articles such as best value supply
chain (Bourlakis et al. 2012) and outcome driven supply chain (Melnyk et
al. 2012). Learning about how supply chain incorporates functional areas
and its importance for delivering the products and services to the customer
provided me clear insights about the subject. It is believed that lecture on
supply chain and my personal experience are so helpful in defining my
future goals at work.

Topic3: Inventory management

Inventory is an idle stock of physical goods that contain economic value,
and are held in various forms by an organization in its custody awaiting
packing, processing, transformation, use or sale in a future point of time.
There are several types of inventory. Raw materials, purchased parts and
supplies work-in process, and component parts are inventories to many
businesses. Businesses also need tools, machinery and equipment as part
of their capital inventory. In most businesses however, finished goods are
mainly the consistent inventory, especially for small businesses (Slack et al.
2010).
During the lecture of inventory management, I inspired from the inventory
management approaches especially FIFI and LIFO concepts were interesting
but I was confused how to choose between them as a method of inventory
management. By investigating this dilemma by reading some case studies
online, I found that LIFO approach is better if the inventory costs are stable
or amplify. Normally LIFO is used by large organisations to lower down
taxes. However, it lowers down the inventory values as well and ultimately
results in weaker balance sheet. On the other hand, FIFO is a better
approach in increasing the value of inventory and achieving stronger
balance sheet to attract investors (Bloom and Cenker, 2009). By take part
in the class discussion and reading around the topic gave me clear insights
about the topic which will be beneficial for me during exam as well as in my
practical life.

Topic4: TQM and Lean

There are a number of methods have been introduced in the management
discipline to improve the performance of an organisational operations by
following the concept of continuous process improvement. These methods
are TQM (Total Quality Management), Lean, agile manufacturing, BPR
(Business Process Reengineering) and Six Sigma. In spite of many
differences among them, they are universally adopted to improve any
process. TQM, Lean and Six Sigma are closely related to each other and can

be integrated to achieve process improvement goals of any organisation

(Bozdogan, 2010).
The lecture and briefings of my teacher taught me a lesson of beware of
the danger of focussing on the toolbox and ignoring the cultural and other
people issues while considering TQM and Lean principles. The pace of
lecture was swift. In fact, I found this topic lengthy but amusing during class
activity. We covered a lot of curriculum and the lecture passed quickly.
However, I gained a massive amount of information and knowledge through
lecture content and activity. I had some good points during class but I was
afraid to discuss in the class but I will discuss with colleagues in the next
session.

Topic5: Procurement
Procurement refers to a purchase of products and services from the local
and international markets. It is essential that procurement strategy should
fulfil the requirements of the purchasers and other stakeholders. Besides,
the costs, quality and quantity constraints must be kept in mind while
practicing procurement. Two procurement types are: direct procurement
and indirect procurement (Slack et al. 2010). Direct procurement relates to
raw material and manufacturing of goods where the quantity is large and
frequency is high. While, indirect procurement is concerned with
maintenance, repair and operating supplies where quantity is low and
frequency is relatively high.
Today, I learnt the procurement concept in the class and understood the
practical issues associated with it. Through activity for developing
information needs analysis for an organisation, I learnt how needs
identification process (assessment needs identification plan) specifies
sourcing and placing orders for processing supplier management achieve
success in purchase. Although, I have no industry-specific experience but
the procurement concept reminds me the purchase of food for home use. In
fact, my home is away from town and by keeping this in mind I usually
purchase food with extended expiry dates or food that can be longer
consumable. The lecture was helpful in understanding the basics of
procurement which will consequently help me to understand the
procurement system of the company where I will work after finishing my
study.

References
Bloom, R. and Cenker, W.J. (2009). The Death of LIFO? Changing inventory
method requires managing the accounting-tax difference Journal of
Accountancy, 207(1). 44-49

Bozdogan, K. (2010). Towards An Integration of The Lean Enterprise

System, Total Quality Management, Six Sigma And Related Enterprise
Process Improvement Methods. ESD Working Paper Series, Massachusetts
Institute of Technology, Cambridge
Choi, T-M. and Cheng, T.C.E. (2011). Supply Chain Coordination under
Uncertainty. Springer
Bourlakis, M., Maglaras, G. and Fotopoulos, C. (2012) "Creating a best
value supply chain? Empirical evidence from the Greek food chain",
International Journal of Logistics Management, 23(3), pp.360 382
Driscoll, J. (2007). Practising Clinical Supervision: A Reflective Approach for
Healthcare Professionals. 2nd ed. Edinburgh: Bailliere Tindall Elsevier
Melnyk, S.A., Davis, E.W., Spekman, R.E. and Sandor, J. (2012). Outcomedriven supply chains. MIT Sloan Management Review, 51(2), pp. 33-38.
Slack, N., Chambers, S. and Johnson, R. (2010). Operations management.
Pearson Education
Wieland, A. and Wallenburg, C.M. (2012). Dealing with supply chain risks:
Linking risk management practices and strategies to performance.
International Journal of Physical Distribution & Logistics Management,
42(10)

SECTION 2: MARSTON LODGE INVENTORY

MANAGEMENT SYSTEM
1. Introduction
During the period of last 15 years there have been vast enhancements in
the corporate social responsibility. This also focuses upon the global supply
management and inventory management systems which further enlighten
the logistics support and improving the condition of people involved in it for
product innovation and organisational development (Leenders et al, 2002).
Inventory management system is an inventory control system through
which objects and materials are administered and located (Varma, 2011). It
is used for automation of orders and accomplishment processes through
the list of orders to be received. It is used to stay away from overstocks and
organising the inventory and cash present in hand for gaining competitive
advantage (Vora, 2010). The main features include order management,
asset tracking, service management and product identification. Marston
Lodge is a well established hotel situated near Chester. It has well
established organisational structure including operational manager to ICT
manager but needs to focus upon the inventory management control. The
report focuses upon the concepts of inventory management which can be
applied for gaining benefit.

2. Inventory Management System

One of the most prestigious steps for optimising organisational
development is to develop a cost efficient solution (Stevenson, 2007). Hotel
management of Marston Lodge can emphasise upon inventory
management control for gaining maximum benefits as focusing upon the
business processes can be difficult and complicated. The supply chain
management can be rationalised through examining the cross business
units. Proper management can also answer that how the current processing
can be used for efficient inventory storage through reducing complexities
(Kimes, 2000). The data flow diagrams including the context diagrams
represent the environmental entities through processes, flow of data and
interconnections. The management of the Marston Lodge can also analyse
the changes to be made and enhancements for improvement.
The context level 0 diagram is the basic and the highest view of the whole
system through which managers can have a clear picture of organisation. It
comprises of only one process which symbolises the general functionalities
of the system, it has no data stores as all the data is stored within the
process (Angerhofer, 2000). The main steps for Marston Lodge that should be
considered while figuring out the process diagram include identifying from
where the data is captured from, distribution of the data, illustrating the
7

overall procedure, mapping the information in a proper diagram through

using appropriate symbols and linking the data in a proper flow (Suh et al,
2004).

3. Inventory management of Marston Lodge for present

scenario:
The diagram can be represented as follows:

Marston Lodge lacks the appropriate managerial system for keeping record
of its stocks. The diagram illustrated above represents the overall scenario
of the inventory management system which can be adopted by the
administrative bodies of Marston Lodge including Margret McDonald who is
the chief manager of the hotel. While dealing with goods with respect to
inner and outer logistics an inventory manger can get feedback from the
inventory management system for the current situation of the inventory.
The chief Chef Kathryn Hughes can order the amount of goods needed
8

through the system instead to local production and exporting from foreign
countries. As there is no coordination among the vendors and Lodges
management feedback regarding the cost details can be given to the
inventory system consisting of giving out order of purchase to the suppliers
and ware house for ordering deliveries. Likewise Sales order system keeps a
check on the orders required and governed by Zaynor Polowski who can
direct the officials for maintaining the status of goods. Jamie Taylor can run
the Accounts department for dealing the invoices and financial
management system of the inventories that can further provide the
feedback regarding account status and room for earning profit.

4. LIFO and FIFO theories for inventory management

First In First Out (FIFO) and Last In First Out (LIFO) are the two accounting
methodologies which are used for verifying the worth of unsold inventory,
cost of goods to be sold and stock repurchases (Disney, 2002). FIFO
comprises the usability of oldest inventory as the items to firstly sell. The
associated cost of the inventory that was bought first is the cost expensed
first. In addition LIFO includes the most recent items are recorded as sold
first. The LIFO reserve refers to the difference between the price of
inventory under the LIFO and FIFO methods. Most organisations make use
of these methodologies for maintain their inventory systems. In the hotel
management system including the present case scenario, FIFO can be used
for keeping a check on food, linens stocks, repair or maintenance of rooms
and kitchen. During the Profit and Loss statement month it is one of the key
components which can lend a hand in determining profits. For instance if
there is a large profit of a month despite of high food prices and prices are
not adjusted for the menu but upon the proposed price on shelves then the
price can be revised periodically. Hence the customers are unaware of the
flaring fluctuating prices on food items. In the present economic conditions
LIFO encompasses the higher amount than FIFO. The later undervalues
price of liabilities due to overpricing and overvalues the in-hand stock. FIFO
grades lower COGS on the income statement in addition to higher rate of
earnings. However when the earnings or profit is higher the taxes are also
higher which results in lower earning after paying taxes. On the contrary
LIFO depicts lower pre-tax earnings and greater after tax earnings. Hence
the relationship among the pre and post tax earnings is complicated which
should be avoided by Marston Lodge (Gul, 2001).
For food inventory each item presents a provisionally unrealised profit. If
any item is spoilt it cannot be used further due to inefficient inventory
management which can lead to loss (Cushing, 1992). The concept of
turning the inventory should be applied for the Marston Lodge for keeping
a check on the entire inventories including food items. For efficient usability
FIFO system can be used for stocks through keeping an eye on them as
9

soon as they arrive. They should be marked in the inventory management

system by sales order system when delivered by suppliers. Hence the firstly
items delivered should be firstly used by the management hence following
the concept of FIFO (Sweeney, 1994).

5. Conclusion
Inventory management system is wholly about the specification of
percentage of stocked goods. It is necessary for every organisational
development at varying locations and supply networks for foregoing
planned course of stock production. The report focuses upon the inventory
system for Marston Lodge which can aid the managers to keep an eye on
the entire inventory. In addition FIFO methodology should be used by the
management for food items as well as on the accounting systems to avoid
rapid fluctuations in the market.

References
Angerhofer, B. J., & Angelides, M. C. (2000). System dynamics modelling in supply chain
management: research review. In Simulation Conference, 2000. Proceedings. Winter (Vol. 1,
pp. 342-351). IEEE.
Cushing, B. E., & LeClere, M. J. (1992). Evidence on the determinants of inventory accounting
policy choice. Accounting Review, 355-366.
Disney, S. M., & Towill, D. R. (2002). A discrete transfer function model to determine the
dynamic stability of a vendor managed inventory supply chain. International Journal of
Production Research, 40(1), 179-204.
Gul, F. A. (2001). Free cash flow, debt-monitoring and managers' LIFO/FIFO policy choice.
Journal of Corporate Finance, 7(4), 475-492.
Kimes, S. E. (2000). A strategic approach to yield management. Yield management, 3-14.
Leenders, M. R., Fearon, H. E., Flynn, A. E., Johnson, P. F., & Flynn, A. E. (2002). Purchasing
and supply management (Vol. 20). Boston: McGraw-Hill.
Stevenson, W. J., & Hojati, M. (2007). Operations management (Vol. 8). Boston: McGrawHill/Irwin.
Suh, S., Lenzen, M., Treloar, G. J., Hondo, H., Horvath, A., Huppes, G., ... & Norris, G. (2004).
System boundary selection in life-cycle inventories using hybrid approaches. Environmental
Science & Technology, 38(3), 657-664.
Sweeney, A. P. (1994). Debt-covenant violations and managers' accounting responses. Journal
of Accounting and Economics, 17(3), 281-308.
Varma, N. K. (2011). Inventory management system (Doctoral dissertation, California State
University, Sacramento).

10

Vora, K. B. (2010). Inventory management system.

11

SECTION 3: RISK MATRIX AND WORK BREAKDOWN

STRUCTURE (WBS)
1. Introduction
Marston Lodge is a 4 star hotel consisting of 100 bedrooms and situated in
a beautiful place in between Chester and Manchester. The hotel has a
range of facilities around it which include: gardens, pastures, race course
and all importance places like airport, rail links, hill walking wildlife, and
Welsh border are near to it.
It is mentioned in the case study that hotel bookings have been down over
the years due to recession effects, poorly cleaned rooms, lack of onsite
activities, and long queues at check in and check out.
The key aim of this report is to analyse the issues that Marston Lodge is
facing within the hotel. The hotel owner Musalem Al Arami wants to
increase the profit of the hotel by initiating an improvement project with ICT
(Information Communication Technology) facilities. For this purpose, this
report discusses operations management, and the issues the Marston
Lodge faces, and how the risk matrix and the WBS (Work Breakdown
Structure) will underpin project success and thus help create a better
customer experience.

2. Operations Management in Hotels

A widespread literature on operations management in hotel management
context is available which discusses how to create a better customer
experience (Pycraft, 2000; O'Fallon and Rutherford, 2011). Some key
activities in hotel management operations include housekeeping,
maintenance, laundry inventory and services, check-in and check-out and
ensuring fire and security maintenance systems etc. These operations are
described in the following subsections.
2.1 Housekeeping
Room cleaning
Hayes and Ninemeier (2007) pointed out some surveys in the hospitality
industry which confirm the reality that housekeeping is one of the most
important areas from guests point of views. In this regard, they found room
cleaning extremely relevant as a core element of housekeeping. In fact,
cleaning guest rooms properly is a vital job because guests always require
a pleasant environment and it is also important in terms of improving
profitability of the hotel when they refer other customers (Jones, 2008).
However, as mentioned in the case study of Marston Lodge that customers
are unhappy from the room cleaning services and this problem is due of
12

work overburden on staff. So, in all the situations, James Thoma (the
operations manager) and Jim Talbot (the head cleaner responsible for all
cleaning standards at Marston Lodge) should check each angle and corner
of the guest room including tables, floors, ceilings, beds, toilets and other
belongings of the room in order to make sure they are dust free and
completely hygienic. The staff responsible for cleaning can get feedback
from the customers when they are leaving the rooms. By doing this, they
can use this feedback to improve the services for the future. Negative
feedback will enable operations manager to put effective strategies in place
to offer better service to guests (O'Fallon and Rutherford, 2011). These
feedbacks should be monitored through the proper implementation of an
ICT system.
Check-in / Check-out
Check-in and check-out system in any hotel is one of the important systems
which need special attention (Vallen and Vallen, 2013). This system is
related to cleaning as well. For example, a housekeeping system is said to
be functional if the front desk is aware of check-ins and check-outs so that
cleaning of rooms can be arranged accordingly. As mentioned in the case
study that check-in and check-out systems are inadequate and most of the
guests seem unhappy from the existing facilities. This also reflects cleaning
and other housekeeping activities as well. Therefore, hotel manager and
other responsible staff in Marston Lodge must take this into account
seriously and implementing a proper ICT system is the best solution for
managing check-in and check-out system.
2.2 Laundry inventory service
The laundry quality control and inventory system needs to be managed
properly which greatly support hotel operations. In fact, these contribute
greatly to the management of hotels. Jones (2008) in this regard asserts
that controlling inventory and quality control through software is important
in order to supervise and control the laundry system and also to minimise
the loss and damages. Using software can reduce the damages as they can
be quickly traced and recorded and hence immediate action can be taken
on urgent basis. This not only reduces costs and expenditures but also
contributes greatly to the increment of hotels profitability. In the words of
Sharma (2003), use, balances, supply levels are critical control information
that must be routinely maintained through software to ensure availability of
materials when needed (p. 310). Hayes and Ninemeier (2007)
recommended a systematic tool for manually controlling inventory. This tool
is called a product usage report which contains the amount of an
inventoried item that hotels can use to manage inventory for a particular
time period such as weekly, monthly, quarterly, and/or annually.
13

It is also evident from the comments of laundry staff in the case study that
the laundry system in Marston Lodge always has problems due to high staff
turnover. The system at the hotel is not functioning well and therefore
requires proper planning. In this regard, the hotel can put into practice a
software system to effectively control and manage the laundry system. By
implementing this solution as a part of ICT strategy will help operations
manager and the head for laundry responsible to replace the manual
system with computerised so that turnover of people cannot affect the
laundry system.
2.3 Maintenance
Hayes and Ninemeier (2007) argue that maintaining essentially required
facilities is also a massive department which is accountable for upholding
all interior and exterior facilities in the hotel. Interior facilities refer cleaning
and maintenance of all furniture inside the hotel whereas exterior facilities
include the outside look of the hotel. As compared to exterior facilities, it is
more critical to maintain the attractiveness of interior looks of the hotels
especially in an environment when the hotel is too busy all the time.
According to Jones (2008), interior looks have a considerable impact on the
enjoyment and perceptions of guests while their stay at the hotel.
Three key staff members Sonia Prentergrass (head of facilities
management), Darren Dawes (hotel maintenance manager) and KiriBawe
(ICT manager for infrastructure) are responsible for interior and exterior
maintenance. Therefore, it is necessary for them to develop an effective
strategy to maintain the beautifulness of costly furniture. The major
responsibility applies to the hotel maintenance manager to look into the
matters of room redecoration, building works, external cleaning, and
electrical refits etc.

3. Developing an ICT system

An ICT system normally consists of three basic technologies such as
information technology, telecommunication technology, and networking
technology (Doyle, 2000). In the hospitality sector, it may also consider
security systems, credit card system, and audiovisual system (Buhalis and
Schertler, 1999). Based on this, a proposed ICT system for Marston Lodge is
developed in table 1.
Table 1: ICT system for Marston Lodge

ICT
Technology
Information
technology

System components

Hotel example

Computer
hardware General use:
(Computer, laptop, printer,
o Record keeping
scanner, photocopy)
Specific use:
14

Computer
software
o Check-in/check-out
(operating
system,
o Laundry
system
application software for
records
managing
hotel
operations)
Telecommunicat Phones (both landline and Communication including:
ion technology
mobile phone), fax and
o General enquiries
email
o Booking
Networking
Wireless connection,
Facilities including:
technology
website, internet caf etc.
o Online booking
o Communication
o Email
o Advertising
Audiovisual
Projectors, equipment for
o Staff
training
&
system
online video conferencing
development
etc.
o Workshops
&
seminars
Credit
card Debit and credit card
o For billing & invoicing
system
including Master card, Visa
card, American express
Security system Room security cards, CCTV
o For
safety
and
cameras
security of guests
and hotel staffs
Source: Mpofu and Watkins-Mathys (2011)

3. Importance of risk matrix in underpinning project success

Hotel industry carries different types of risk factors and they are associated
with different services offered by hotels. Hotels management should be
capable of handling and managing risks at the right time. A general opinion
exists that hotel industry involves non-hazardous materials such as
beverages and food and therefore the risk level is low (Saouma, 2012). But
in reality, several operations in hotels need hazardous chemicals and other
materials for cleaning, storage, polishing, cooking in order to maintain high
level
standard
of
housekeeping
and
other
hotel
operations
(Cholamandalam, 2010). Based on this discussion, it seems that managing
hotel risks by developing a comprehensive ICT system is extremely
important in relation to provide guests a safe and sound environment for
enjoying during their stay.
The risk matrix, in the context of hotel risk management, has been
extensively used by the experts and organisations to assess and evaluate
the risks associated with the projects (Barth, 2008; Bharwani and Mathews,
2012; Saouma, 2012). In addition, several types of risk matrices have been
used to:
Rank risk factors by finding their probabilities and impacts;
15

 Present risks graphically using particular tools such as risk map;

Help management in addressing risk factors with extreme impacts;
and
Promoting meaningful discussion which aims to finding appropriate
strategies to mitigate the impacts of most crucial risks immediately
(Garvey, 2008)
It is inherent to keep in mind the basic aim of the risk matrix. Regardless of
any specific field, in most of the small and medium sized projects,
management often ignores the key objectives of risk matrix and the
potential impacts on the project as a whole. Basically, the fundamental aim
of the risk matrix is to analyse and prioritise various risk factors by
categorising them in specific groups. These categories are coloured to
identify their importance. For example, red-yellow-green colours are used to
reflect high-medium-low priority risks (Kendrick, 2009).
3.1 Risk Matrix of Marston Lodge
ICT projects often have a compound profile because of their abstract
features, unique cost structures and complexity. By working on the case
study of Marston Lodge, some critical risks are identified from the study of
Department of Treasury and Finance in Australia. This study was aimed to
conceptualise ICT projects by evaluating solutions and options. Table 2 is
constructed for showing risks associated with ICT project in the Marston
Lodge. The table contains risks and their description, probability, impact
and the level of risk. The risk level is also shown in figure 1 where different
ICT-related risks are mapped into it using risk ID.

R1

Obsolesce
nce risk

R2

High cost

Technology changes so quickly. The ICT

system will become obsolete due to
changing technology in all aspects.
ICT system carries high cost of
technological equipment (i.e. Machinery
costs 12,500 in case study for laundry
system ) Also, high upgrade costs are

Risk Level

Result

Description

Impact

Risk

y Probabilit

Risk ID

Table 2: ICT risks for Marston Lodge

25

25

16

R3
R4

R5
R6
R7
R8

R9

associated with ICT components

Technical
Risks of system failures, system defects,
risks
inappropriate solutions
Inexperien Lack of implementing ICT can result in
ce risk
judgement errors and improperly using ICT
technical facilities
Security
Hacking attempts, key card security,
risk
password securities etc.
Stakeholde The solution cannot be accepted until
r risks
approval is taken from all stakeholders
Personnel
Lack of staff, loss or over dependence on
risk
key project staff
Vendor
Additional contracts with hardware and
risk
software vendors for implementing
communication, security, and networking
system
Time
Time investment for implementing ICT
investmen system
t

20

16

16

16

12

Source: Department of Treasury and Finance (2012)

Figure 11 Risk matrix

Probability
Impact

Almost
Certain
>80% (5)
Likely
50 80%
(4)
Possible
30 50%
(3)
Unlikely
10 30%
(2)

Rare
<10% (1)

Risk
Criteria

10

15

20

25
(R1, R2)

4
3

16

20

(R4, R5,
R6)

(R3)

15

12

(R8, R9)

(R7)

10

Insignifi
cant (1)

Minor
(2)

Modera
te (3)

Major
(4)

Catastroph
ic (5)

High

12

Mediu
m

Low

17

4. Importance of Work Breakdown Structure (WBS) in project

success
Valacich et al. (2009) defined WBS as the process of dividing the project
into manageable tasks and logically ordering them to ensure a smooth
evolution between tasks (p. 58). The importance of defining tasks and
subtasks and most importantly their sequence is given high importance
while construction WBS (Project Management Institute, 2013). During
performing tasks, some activities can be performed parallel while other can
be completed in a particular order. This order depends on the requirements
of the project and outcomes required on the basis of available resources.
In the hotel industry, hotel managers adopt WBS (formally or informally) as
a part of their project management strategy by considering the importance
of WBS in the success of the project (Bansal, 2010). WBS as an inherent
part of the planning process helps the hotel management to make sure the
delivery of project deliverables. Furthermore, a more transparent project
scope is articulated prior to the commencement of actual work. This
ensures the success of the project. Homer and Gunn (1995) assert that
WBS is an intelligent structure of work breakdowns in a precursor to
effective project management (p. 84).
Experience project managers in the hotel industry believe that certain
things can upset the system of entire hotel regardless of how the planning
was done and tasks were distributed (Bansal, 2010). The causes of
complete or partial project failures, if they take place, can be found due to
nonexistent or poorly construction WBS. In both cases, the hotel system
can be disturbed with unpleasant outcomes which often require re-planning
and/or extension of the projects. The unplanned project activities in hotel
context can lead several issues as evident in the case study of Marston
Lodge where the hotel bookings are going down day-by-day due to lack of
planning regarding: check-in & check-out, laundry inventory management,
and allocating proper time to cleaning staff to clean each room. In this
regard, WBS is the first step for rescheduling activities by initiating,
planning, executing, and controlling and monitoring project activities
(Project Management Institute, 2013).
4.1 WBS of ICT project in Marston Lodge
Table 3 shows a proposed WBS for ICT project to be implemented in the
Marston Lodge. It shows a typical WBS applied on hotel case study. The
typical WBS consists of a project life cycle which consists of 5 stages such
as initiation, planning, execution, control and closure (Sachs, 2011).
Table 3: Proposed WBS for ICT project planning

Level 1

Level 2

Level 3

Case study
18

1.
ICT 1.1
project
Initiation
for
Marston
Lodge

1.2
Planning

of Marston
Lodge
1.1.1 Risk identification and - See risk
analysis
matrix in
1.1.2 Development project charter figure 1
1.1.3 Project charter submission
1.1.4
Stakeholder
review
of
project charter
1.1.5 Take approval on project
charter
1.2.1 Developing initial statement Project scope
of scope
is to eliminate
1.2.2 Cost estimation
issues (see
1.2.3 Project team development
section 1 for
1.2.4 Assignment team roles
issues)
1.2.5 Initial meeting
1.2.6 Project plan development
Cost
1.2.7 Submission of project plan
estimation of
1.2.8 Project scheduling
ICT system
including
laundry
system
upgradation

Work
Breakdown
Structure
(WBS)
1.3
1.3.1 Define user requirements
User
Execution 1.3.2 Validate user requirements
requirements:
1.3.3 Design system
record
1.3.4 Acquire hardware & software keeping,
resources
online booking
1.3.5 Test the system
facilities,
1.3.6 Staff training
improving
1.3.7 Implantation of system
check-in &
1.3.8 Go live
check-out
systems,
updating
billing system,
workshop and
seminars for
staff training
1.4
1.4.1 Set project management
Developing a
Control
1.4.2 Set risk management
risk
management
strategy
to
address risks
identified
in
19

table 2
figure 1
1.5
Closure

and

1.5.1 Documentation
1.5.2 Procurement audit
1.5.3 Update files and records

5. Recommended project team

Table 4 contains the recommended project team for this ICT project.
Table 4: Recommended ICT team

Name
James Thoma
KiriBawe
Sonia Prentergrass
John Smith
Darren Dawes
Zaynor Polowski
Margaret McDonald
Jamie Taylor

Designation
Hotel Operational manager
ICT manager maintains hotel systems and ICT
infrastructure, hotel web site, software licences, is
responsible for data management and protection
Head of facilities management, responsible for the
hotel infrastructure and security
Head of hotel security
Hotel maintenance manager
Hotel Business manager
Contract manager
Hotel inbound logistics

6. Conclusion
It is identified that ICT system development can address the current issues
that Marston Lodge is facing. In this regard, two project management tools
such as risk matrix and WBS can contribute greatly to the success of ICT
project success. Risk matrix is used to identify critical risk factors
associated with the ICT project whereas WBS give project manager a clear
idea of tasks and subtasks to be performed for the project success.

20

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