Question
SUMMARIZE Managing a theme park's construction project is a complex activity as it involves, as Swarbrooke (2002) observes, managing resources, time and quality in an
SUMMARIZE
Managing a theme park's construction project is a complex activity as it involves, as Swarbrooke (2002) observes, managing resources, time and quality in an intricate interrelationship. Two kinds of resources must be managed: people and materials. A variety of types of people are involved in the development process of a park and there are a variety of needs, ranging from architects to decorators through marketing specialists, local authorities and specialized craftsmen. Coordinating them on site is fundamental, given that otherwise delays may be incurred, leading, as Disney found out with its Paris project, to high extra costs. Also, from a resources point of view, materials are managed, that is to say, all necessary elements for the physical construction of the facility. As in the case of the staff, the deficient management of materials may lead to delays and therefore, again, extra costs. Secondly, project management involves setting a work schedule, whose target is the opening of the park on a predetermined day, which is usually widely publicized in advance. Delayed or incomplete opening usually mean a loss of consumer confidence in the park: hence the importance of appropriate management of time and, in particular, a series of tasks in the appropriate order and manner. Finally, the theme park project management team must ensure that its construction takes place with the suitable standards of quality both from the point of view of the resources and time and from the perspective of the demand segments it aims to attract. Good estimation of budgetary needs is essential in this respect. For this, control systems must be laid down. On the basis of these premises, experience and judgement are usually important for the management of the construction of a theme park. However, useful, well-known project management techniques exist, particularly those like critical path analysis (CPA), 'a time-based technique for managing projects which recognizes and plans the need for interaction between the various players involved in the development process' Swarbrooke (2002), and the programme evaluation and review technique (PERT), a technique that disaggregates the theme park project into a number of tasks and jobs on the basis that the duration of a project does not necessarily coincide with the sum of the times of the activities as a whole that are to be developed between the start time and the end. Obviously it is possible to apply mathematical techniques of linear programming that facilitate the planning of a more effective use of resources during the development process. In summary, the management of the development of a theme park should take into account some critical points, which, if they have been properly handled, ensure the viability of the project:
- The adaptation of investment to the real needs of the project. As demonstrated during the appearance of theme parks in France at the end of the 1980s, underestimating investment needs usually has highly negative results for the viability of the park. One of the most notorious examples is the case of Zygofolis, in which the real investment made was finally double the foreseen (from 150 million francs to 300 million) and led to a financial crisis, which, in conjunction with other design and management factors, brought about the closure of the park. The causes of the lack of foresight concerning the investment are usually a consequence of the non-compliance with planned execution schedules, the need for supplementary work, mistaken valuation of infrastructure costs, the need to build annexed facilities that had not been borne in mind initially or changes to the project itself.
- Fulfilling the construction schedule and expenditure forecasts during this phase of the project. In other words, the material construction phase of the park is fundamental from the point of view of its economic viability. There are many parks where delays in the process of construction have had important financial consequences that have left them in serious difficulties. As Rector (1997) remarks, it is critical, in this respect, to define on real bases the schedule for the development, the budget to be used and the operations to be performed so as to reasonably fulfil expectations.
- The conception of contingency plans that allow dealing with the diverse problems that may affect the development process, from those arising due to adverse weather to those that are a consequence of delays in the delivery of materials, as well as other common occurrences, like the non-compliance with commitments to complete certain phases of the project, labour-related problems, increases in labour costs or the price of materials, currency fluctuations, the requirements of inspections or regulations and changes to the project itself, which may be put forward once the construction work is under way.
- The appropriate scale of the organizational, operations and marketing needs at the time of the start-up of the park. Braun (1993) notes that a multitude of examples exist of parks that have failed as a result of the deficient planning of operations and marketing during the phases leading up to their opening. This is why the formation of a human team trained in general and specialized subjects, according to their role, is a factor that needs careful planning. Also, prior to opening, the relevant park public relations, communications and commercialization programmes should have been activated. Other critical areas that require meticulous planning before opening are general management, operations and the development of shows and entertainment
- The necessary training of teams with the right, high level of professional experience, thoroughly committed to the product and visitor satisfaction. It is well known that the running of a theme park generally depends on a large seasonal workforce, presenting high turnover rates. Nevertheless, the personnel are fundamental as regards the operation of the park: hence the need for parks to set out precisely each employee's functions and to have very strict control systems. In this respect, in the mid-1990s, Disney had over 1100 specific job descriptions at its parks. Hence also the importance theme parks give to matters like staff selection and training and the entertainment of the operators at their work posts.
- The creation of efficient attraction operations and maintenance programmes as a basis for visitor safety and satisfaction. This is one of the most important aspects to be borne in mind, especially as regards the mechanical attractions. It must not be forgotten that the public's behaviour may alter an attraction's operability and give rise to problems. Hence the need for well set-out protocols for the use and upkeep of each one. Though each park has its own operations manual with specific indications for every contingency the International Association of Amusement Parks and Attractions has drafted complete manuals to give guidance on this matter for less experienced operators.
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