Essay: Projects management

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1. INTRODUCTION

Projects management is defined by the British Standards Institution “A project is a unique set of coordinated activities, with a definite starting and finishing point, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters. (Paul D Gardner, 2005 P2)

The history of project Management dated back to the construction of the massive Egyptian pyramids and the great wall China. But modern day project management is associated in early 1900’s with Henry Gantts development of the barchart and during 1950’s and 1960’s in America and Britain techniques and tools used in military and aerospace projects is the beginning of the development of the special project management techniques and tools.

The last decade has witnessed a vast development in the hospitality industry with its demand for new trends and innovation taking centre stage and the industry today has stirred from being an accommodation and service provider to offering consumer products to its consumer.

Examples of the projects related to Tourism and Hospitality industry are,

 Advertising campaigns on Holiday packages

 New revenue generating project for a hotel for example: adding a sports centre Social events to fund raiser activities.

 Entertainment projects.

 Renovation of a hotel rooms or restaurant with upgrading features.

 Hotel web based projects

The hospitality industry is moving though an evolutionally process in a supply-led market to a demand-led market. As the industry has become more globalized factors such as culture, economies, climate and geographical preference creates an impact on the end product where customer preference may differ or is less accepted at the time of its purchase. The modern day traveler is more sophisticated than of its previous generations with high levels of expectations that augment a more responsive product. (Rinsley & Ingram 2006).

Features of project include,

 A Start and finish

 A life Cycle

 A Budget

 Team Building

 Dependability on the entire project

1:1 Project Management and its importance.

Project management is essential for a project as it is about managing a process and the people who participate in it. It hosts the organization to mitigate the risks by essentially manage people, resources and the delivery of products, not the work itself.

Planning, organizing, Controlling, Leading and motivating are the main four activities that carried out in project management , This can be differ to each organization from project objectives with investment towards the project with a broad scope of professionalism.

Many companies are adopting a “management by projects\’ approach to conducting business as a

Way of shortening product development times, lowering costs, and increasing quality, reliability and profit margins (Meredith and Mantel, 1995: 9)

1:2 Stages Associated with Project Management

PMI defines project management as “the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project.” (Projectinsight,2016)

Project can be divided into five basic phases throughout the process of the directing and controlling of the project from the start to end.

Each and every phase of a project hold an important place as it has different organizational goals for each phase. As an example at the initiation of the project considered on creativity and problem solving, during execution and control it emphasizes on turning the laid plans into reality, tight control of changes and rapid decision making are predominant needs. (Paul D Gardner,2005) A project manager will hold the responsibility to delegate team members with relevant tasks which would be carried out under his supervision mitigating risks, with quality controls, ensuring customer and employee satisfaction. (Trevor L. Y 2010)

1:3project management framework

Purpose of the project management framework is to create and share a clear understanding of the basis of a project and share this understanding among all shareholders.

Primarily the challenge would be to achieve all project goals and its objectives of, Scope time, Quality and budgets. Secondly the challenge would be is to optimize the said allocations and necessary inputs, incorporating to meet pre-defined objectives.

1.4 Project Management Knowledge areas

Further discussed in Project Management body of Knowledge (PMBOK) has break down in to nine knowledge areas.(David F, Greg H,2004)

I. Project Integration – Adjoins with three main steps, It involves input to develop the plan and the processes to keep on track.

• Planning – as an example planning tasks for the projects, setting and allocating duties, setting the designs, allocating the budgets for building a overwater wedding pavilion project.

• Control – Conducting meetings of staff and reviewing and monitoring the progress, controlling budgets.

• Execution –Taking necessary actions to implementing the project as an example making staff carry out the set tasks, Testing the efficiency of the project.

II. Project Scope Management

Includes processes required that ensures all work required to complete the project successfully. This area is composed of project initiation, scope planning, definition, verification change control. Main concern is to control and define of what is and is not included in the project that meets sponsor goals and objectives.

As an example when promoting over water wedding package in Maldives, the main objective of the sponsor would be to renovate an existing deck in to a unique overwater wedding pavilion which generates revenue.

III. Project Cost Management

These are the areas where it focus on projects resource planning, cost estimating, budgeting and control of the project.

IV. Project Time Management

“Time” is the key element to the project and it directly effects on the success of the project. Managing time of a project includes activities such as sequencing duration estimating schedule development and time controlling.

As an example creating a calendar of refurbishing overwater wedding pavilion and estimating duration to build the wooden deck.

V. Project Quality Management

This area involves all activities in quality planning, assurance and control. Includes processes required ensuring that the project is satisfactory on the terms it was undertaken. As an example, project of building a sea food restaurant- HAZARD food quality assurance.

VI. Project Human Resource Management

Effective utilization of individuals included in the project comprising with organizing and planning, recruitment and team building. Example- Planning on how many trained and untrained staff required for the project.

VII. Project Communications Management

Includes processes required for successful communication of the project, it ensures collective data and its distribution of project information. Includes communications planning, information distribution, performance reporting and administrative closure. Example: Arranging meetings for project staff and planning of project phases.

VIII. Project Risk Management

Includes processes with identifying and analyzing the responses to risks of the project and its mitigation. Risk management includes identification of the risks, responding, monitoring and controlling it.

IX. Project Procurement Management

Includes processes of acquiring goods and services from external sources than of its project team, consisting of planning, solicitation, source selection and administration and close out

1.5 Stake holders of a Project

Project stake holders are both internal and external people and the organizations who are actively involved in the project .Stake holders’ skills and knowledge of the project may on influence the success of the project.This will include A project sponsor, A project manager and his team, supporting staff, the end customers, suppliers etc.

2. Project Finance Management tools

Application of a collection of tools and techniques to direct the use of diverse resources toward the accomplishment of a unique, complex, one-time task within time, cost, and quality constraints. Each task requires a particular mix of these tools and techniques structured to fit the task environment and life cycle (from conception to completion) of the task.

2:1 Cash Flow

This represents a summary of the actual or anticipated incomings and outgoings of cash in a project over an accounting period. It used as basis of budgeting and planning of the project. Data present in a cash flow usually would include operating activities, investing activities, financing activities. The project confirms it viability when the income generates is greater than the expenditure.

2:2 Cost benefit analysis

Cost benefit analysis performed to establish the financial feasibility of the project. It also can be used to take into account the benefits the company receives as well as the benefits that accrue to the community at large.

2.3 Net Present Value (NPV)

“Think of a project as an abandoned suitcase containing money, If the amount of cash is positive, you will pick it up. If the suitcase contains \’negative cash\’ which would diminish your wealth you will leave it alone. (Paul .D, 2005) NPV simply states how much money is in the suitcase and whether it is positive or negative.

2:4 Pay Back Period:-

It shows the time taken to gain a financial return equal to the original investment. It usually express in years or months.

3. Project Time Management tools

3:1 Gantt Charts

These charts are invented by Henry Guntt in the early twentieth century. It is another common method of scheduling information of the project.

Figure 3: 1 – Gantt chart

Source – Google images

Above graphic represents milestones and demonstrates individual resources with schedule timings. Mile stones play an important part in planning and managing projects.

3:2 Critical Path analysis – (CPA)

This is a powerful tool which effectively used to plan all tasks that has to be complete as part of a project. It further relates to interdependent activities which connect with many other elements.

3.3 Network Diagram

Network diagram defined as a graphical presentation of the project of the projects activities showing the planned sequence of work. It required the information only for two items which are list of activities and the logical relationship between the activities.(Rory B.2003)

Figure 3:3 Network diagram Source – Author

Comparison of Gantt chart and network diagram characteristics

Figure 3:3 Comparisons of Gantt Charts and Network diagram features

Source Paul .D 2004, P254

3:4 Project Management Software – (PMS)

There are several soft ware’s used in the project management to deal with large projects. The software provides features of scheduling, planning, tracking and reporting, costs and budget management, and further communication and administrative systems. Procore, workflowMax, BuildTools , BuilderTREND are some of the award winning PM softwares named in 2015. (best project management software reviews , 2016)

Figure 3: 4 – Project management software Source – Google images

4. Theories in Project Management

4.1 Total Quality Management – TQM

“According to William P. Anthony t al (1996) TMQ is a strategic, integrated system of management for achieving satisfaction that involves managers and employees and uses quantitative methods to continuously improve quality.” (John N.M , 2009 ,P.13)

Figure 4:1: TQM Framework Source: Beterfield et.al,2009

4:2 Information Management (IM)

Information management is the collection, storage, dissemination, archiving and destruction of information. It enables teams and stakeholders to use their time, resource and expertise effectively to make decisions and to fulfill their roles. (IPMA, 2016)

4:3 Management by objectives

It is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources.

5 .CONCLUTION –

It has been concluded that project management has of very much importance for the organizations success and growth. Organizations that do not implement the practices of project management have to suffer a lot in terms of resources, time and money.

In such a competitive world organizations have to take necessary actions to reduce their cost and resources on any given tasks in projects. Project management is one of the tools from which one organization could use its resources efficiency and minimize costs. It has tangible and intangible benefits, therefore every organization have to think of implementing the project management tools and techniques.

Task 2

1. Introduction

Hospitality industry is known as one of the most widely diversified industries in the world as it has a broad category consisting of hotels, restaurants, event planning and cruise lines to theme parks worth to the tune of several billion dollars worldwide.

As it has been shown from the above historical perspective, the hospitality industry has reached a stage in its evolution where it requires adaptation and the application of greater flexibility to its existing and new products. This will entail the development of new concepts with inherent ways or means to change content, service or image in an economical way. Service methods can be readily altered as they are primarily based in personnel skills, investment in people will need to increase and retention of staff will require a new approach to human resource management. The more difficult element will be the ability to create flexibility in the physical property

1:1 Description of the Project

“Sea bubble” Overwater wedding package

The initiation of this project would be to refurbish an existing old deck which is located in the shallow waters, away from the island. This freestanding pavilion is accessible only by boat, offering a spectacular view of the sea with a glass-bottomed aisle in a chapel-like venue that is just a few feet over the stunning blue sea. Completion of the “Sea bubble” over water wedding package” will take the common beach weddings to a whole new level, with a Maldivian fusion. to provide memorable experience to the guests.

2. RESEARCH FINDINGS

Survey has been conducted by the resort during the guests stay in the resort. Questionnaire (Refer appendix A) has distributed among 50 young couples and the results has taken to recognize the perception of the over water wedding and its interest amongst the young generation. Analysis shown as below.

According to the survey 84% would prefer to have their wedding in a unique location while 16% would prefer usual location.

Further according to the survey, 54% has stated that they would choose over water wedding pavilion while 46% has stated the location as beach and restaurant.

Further about the food the guests preferred on their wedding day 44% has stated on fusion, while 28% has agreed on sea food 16% Maldivian food, other 12% has agreed on other food verities.

During the wedding ceremony 40% has shown interested on traditional Maldivian Music on their wedding day as they have explained that they loved to experience the music in foreign country , 34% Jazz music, 18% Classical music , 8% has shown interest on traditional church music.

According to the analysis 66 % of them have stated that they are able to spend US$3000-US$3500 amount for a wedding package, while 18% are able to pay higher amount and 16% indicates only able to pay US$2500-US$3000 amount.

According to the facts of the research it was fond 105 resorts are currently operating in Maldives and only 1 resort is currently operating the over water wedding package as all the other resorts promotes beach wedding packages .

 According to the survey total analysis upon the guests it was indicated that more than 50% of them preferred to have their most memorable day on a very unique location and experience traditional Maldivian music. As well as mostly the young generation preferred go for a simple elegant wedding with a white wedding theme on their wedding day

 . Currently 105 resorts are operating in Maldives and only 1 resort promotes over water wedding package. Considering these factors it was decided to promote the “sea bubble” over water wedding package.

2.1 Market Survey

It is essential to conduct SWOT analysis to identify the current market and its needs.

3. PROJECT AIM AND OBJECTIVES

Refurbishing the existing over water deck and turn it in to a luxurious over water Wedding pavilion and launching as a “Sea bubble” over water wedding package will takes 3 months duration.

“Goals and objectives must be clear statements of purpose. Each with its own purpose that drives the end result of the project. Goals and objectives must be SMART Specific, Measurable, and Agreed upon, Realistic and Time-based.” (Project smart, 2016)

Evaluation was proved that there is a high demand for unique wedding package as many customers had shown interest on unique location with a romantic ambience on their wedding day. Unique features and the romantic atmosphere of “Sea bubble over water wedding package” is ideal solution for their preferences. Further uniqueness of this package will takes beach weddings to a whole new luxury level, creates competitive advantage among the competitors Further as it proves to generate greater income comparing the beach wedding package.(Beach wedding currently US$ 1500 , over water wedding package can estimate at US$ 3000)

a) Deliverables

Convert existing over water wooden deck to a over water chapel like pavilion

Wood, equipment and other facilities

Well trained staff for the service, Food and beverage and wedding coordinating staff

Advertising and Marketing

a) Operational Objectives – First three years of operation:

Highly control the cost on operational activities

Promotions for the package

Achieve a profitable return on investment.(87%)

b) Operational limitations

Due to the unexpected weather conditions

4. RESOURCES REQUIREMENT AND RESOURCES

“Putting a cost against project resources and mapping them onto a schedule produces a time-

Phased chart or table of project resources, called a \’project budget\’ or \’cost plan\’” (Paul D,2005)

4:1 Resource requirement

As the initiation of this project for refurbishing the existing old over water deck in to overwater chapel alike wedding pavilion cost will be estimated US$ 8520 for procurement servicers such as: renovating the existing wooden deck, recruitment, salary, advertising and promoting and finally launched as a whole new wedding package. Completion of the project will take 3 months starting from 01st Of April 2016 to 01st of June 2016.

Table 4:1 Cost for investment

Components that would be made available in the over water wedding pavilion

 20 Guests seating arrangements in the overwater wedding pavilion

 Two glass bottom floors

 wooden pillars

 wedding decoration

a) Income Sources

The main source of income for this wedding package would be selling over water weddings for European and Chinese customers during the year. Sea bubble wedding package is forecasted to sell throughout the year. But as the Maldives islands get their rainfall during southwest and northeast monsoons it is ideal to sell this package during the best climate in Maldives with clear skies and calm water which is during the time between May and November

There are some newly introduce food and beverage items include for this package. (Refer appendix 3)

Product value additions

 Guests will receive a Cold/hot towel on arrival.

 Complimentary upgrade to sunset villa on wedding night. (on availability)

 Complimentary bottle of champagne on wedding night.

(Refer appendix 3) for wedding package entitlements.

The Maldives is one of the most popular island destinations for weddings and honeymooners, and this year it was named as the world’s best beach destinations at the Worlds Travel Awards. (Daily mail, 2016) Renovation of the free standing over water pavilion will create a breathtaking wedding venue, set over the Indian Ocean. This light and airily pillared structure with romantic atmosphere and friendly staff is assured to provide whole new experience for the guests on their blessed day.

4:2 Resource analyses

It is further important to identify the stakeholders of the project for their contribution and expertise at different stages of the project. The level of coordination and efficiency would eventually result the project successful. Following is a summary of its stakeholders. (Digital purview, 2013)

Table 4:2 :Stake holders of project

b ) Project Milestones

Scheduling of activities of the “Sea Bubble Over water wedding package” with an estimated duration should be determined based on resources utilized for each activity as explained in Network Diagram Figure 5.4. Following are the milestones needed to be accomplished.

Table 4:3 : Project Milestones

5. PROJECT TIME MANAGEMENT

Effective time management includes a number of processes required to ensure timely completion of a project. The five steps involved in project time management are introduced as defining project tasks, task sequencing, duration estimating, schedule development and time control. (Timothy J, 1999)

5:1 Work Breakdown Structure (WBS)

The over water wedding package will comprise different stages for the project to be completed as listed below.

5:2 Gantt chart

The Gantt chart has been created for visually monitoring activities and milestones of the project.

5.3 Critical Path of the Project

The Critical path of the project is highlighted in red colored bars of the Gantt chart in Figure

5.4 Network Diagram

Network diagram defined as a graphical presentation of the project of the projects activities showing the planned sequence of work. It required the information only for two items which are list of activities and the logical relationship between the activities. (Rory B.2003)

Figure 5:1 – Network diagram of over water wedding package

Critical path of this project is highlighted in red color arrows as it takes the longest time to complete it – 73 Days.

6. Financial Analysis

The financial assessment is based on the project and descried as follow.

6.1 Project cost

It is estimated that this project will cost US$ 500,000 as a rough approximation, invested by two partners. Cost will include renovating the existing old wooden over water deck, material cost, wages, Boat rentals and advertising and promotions as well. This cost may vary due to the changes of market price.

6:2 Cash flow statement

Table 6:2 Cash flow statements

Above document has taken in to consideration yearly over a period of 5 years. This has shown the income generates from the operation (assumed as 5 wedding packages sell per month at rate of $3000 multiply by 1Year) the income generates is greater than the expenses which confirms the project viable. Indicated figures have shown that sales increase by 10% each year.

6.3 Cost benefit analysis

Analysis will help to determine money value of the benefits and costs to the community of projects to establish whether they are worthwhile.Table 6:3 Cost benefit Analysis

6:4 Payback period

As per the calculations the restaurant will take 2 years period to recover a financial return of the initial investment.

6:5 Net present value (NPV)

NPV has been calculated on the present value of the overwater wedding package and future value with inflation and its return on the project. When the value of NPV is positive the project shows its viability for further consideration of its implementation. By introducing a discounting rate of 20% as shown in table – Appendix 2 – IRR work sheet, shows a positive value of US$ 888,248.83.

6:6 Internal Rate of Return – (IRR)

Further to the calculations made in table – Appendix 2 – IRR work sheet, shows that when the discounting factor is increased the NPV value decrease. Therefore when the IRR is between 60%-70% the NPV value becomes negative,(36,100.97) illustrating the project viable.

Figure 6:6 IRR – Over water restaurant

6:7 breakeven analysis

6:8 Account Rate of Return – (ROI)

In this method first calculate the annual profit, which simplify the total outlay deducted from the total gains, divided by the number of years in investment will run. The profit then converted into a percentage of the total outlay used as following table.

7.Human Resource Objectives

Human Resource Management is the of key and strategic importance to the project-oriented organization. Every time a new project or program is started, the human resource configuration of the organization changes .Within this dynamic environment, different and additional practices are required from the traditionally managed organization.(Project management institute Inc ,2016)

7:1 Requirement

In order to succeed this project of the overwater wedding package it is essential to select and channel the qualified personnel to fulfill the requirements of customer expectations. Qualified wedding planners, chefs, hostess, bartenders and other clerical staff would require at different levels.

7.2 Training

Experienced and skilled workforce will make an great impact for the effectiveness of the project. Assigning unskilled, inexperience labor will unnecessarily increase the organizations costs and time for quality training programs.

On job training, HAZARD food standard trainings for the food and beverage staff, customer care training which can be conduct for different levels such as from boat captain to villa hostess and whoever staff involved in the package. At the initiation itself team building training is essential to conduct as it will determine achieving goals of the project.

7:2 Motivation

“ Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.”

(Web finance,Inc ,2015)

Employee motivation

Maslow‟s hierarchy of needs explains that motivation is an unconscious attempt on behalf of each individual to satisfy certain inner needs that foresee a response. It is therefore the responsibility of the management to apply appropriate leadership styles that could motivate the workforce of meeting with the ultimate objective. (Helen D.2011)

Employee development programs, team building, employee surveys are some of the motivational techniques which can be followed.

Customer motivation

In order to attract more number of customers it will be essential use attractive advertising online, and personalize or customize the product (as an example wedding flower arrangements according to guest preferences).

8. Marketing strategies and Objectives

The over water wedding concept will take the typical beach wedding style to a whole new level as it is a very fresh concept to Maldives. Therefore it is essential that a comprehensive marketing plan is implemented to be competitive and mitigate its financial risk. Changes in customer perception cab be change due to market trends and demands.

8.1 Target Markets

“The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behavior and might require separate products or marketing programs”

(Kotler et.al,2010,P66)

Adaaran prestige vadoo’s current target markets are Asian, Europe, Middle East regions serving their Middle class, Working class populace. Target demographic segments such as Chinese ,European nationalities /Income between$ 5000-10000/ Age 25-35 /Generation-Millennial would be the ideal target markets for cater the product.

8.2 Marketing implementation

“Millennial represent an increasing percentage of the buying power in our economy. They have money and are ready to spend” (Hubspot 2016) In order to succeed the package best suitable marketing strategies should be followed,

 Using latest and newest social networks: Via facebook , Twitter, Yangme (China)

 Web development : Insert E-Flyers to Adaaran prestige Vadoo website

 Package promotions through tour operators and travel Agents

 Brand awareness programs : Example “ Tell the story” concept –share customer experience about their magical wedding experiences and share videos through social media networks.

8:3 Positioning

Adaaran prestige Vadoo has identified the requirements of the different customer segments in order to offer satisfied customer service. “Sea bubble over water wedding package “can be a differentiated value addition for their product line. Its unique features provide more value comparing to the competitor products. This able to create competitive advantage and build a stable position in the Market.

While the brand has been position in the market Adaaran prestige Vadoo still require to sharpen their positioning strategies in order to compete in the future. Positioning strategies such as ,

 Benefits positioning: focuses on a benefit this product provides to the target audience. Examples – Sea bubble wedding package will provide a “Unique and magical over water wedding experience” which can be unforgettable lifetime experience.

 Product Attributes: Highlighting a specific attribute of the product can also be compelling. For example- “ Romantic white wedding theme”

9. Risk Associate with the project

The 2000 edition of the Guide to the Project Management Body of Knowledge (PMI, 2000) states that a project risk is: an uncertain event or condition that, if it occurs, has a positive or negative effect on a project outcome. (Paud D ,P161)

All projects carry some level of risk and how this is dealt with affects project success. Risk management plan includes define objectives, Identify risks, Quantify risks, Develop response, Risk control .

9:1 Factors to consider

During the operation of the project it is important to make changes and adjustments when necessary in order to mitigate risk which can cause in future. Review and report progress of the project, communicating with project team and shareholders, appreciate them during the project will assist successful completion of the project.

10. Forecasting plan

Forecasting plan is an extremely important part at initial stage of planning a project. Forecasting exercises will determine the project’s scope, possible constraints, and potential risks.

a. Productivity of over water wedding package

As shown in appendix 3 revenue breakdown analysis of the over water wedding package, revenue has calculated under two seasons. It is important that sales are tracked often. As an example daily, monthly, yearly revenue forecast plans can be made by the management and it has to be monitored regular basis. Further regular updates and discussions on revenue, review customer suggestions, schedule staff according to seasonal and off seasons will make an impact on achieving higher revenue.

b. Project evaluation:

Should be assessed on set goals, timelines and required criteria of stake holder expectations. Project evaluation is necessary before the closure of the project and handing over the project to the management. At the end of the evaluation, evaluator has to present it with brief description of the evolution to the key stakeholders which include process issues, identified mistakes, suggestions on how the evaluation can be improved.

c. Closure of the Project

Project closure essentially combines two processes \’first the commissioning of the project deliverables and their acceptance by the sponsor, and second to document all experiences in the project.\’ (lPMA, 1999: 40)

Successful completion of the “sea bubble wedding package” would be ,

 Close down technical and financial elements of the project.

 Conduct project enclosure meeting with management and reconciling the management reviews with the final product about wedding package.

 Reward all the staff who involved in the project in various ways.

11. CONCLUSION AND RECOMMENDATIONS

The main purpose of this project to introduce an overwater wedding package in Adaaran prestige Vadoo, catering to the requirement of the customers. , specially targeting the European and Chinese customers. Uniqueness of this concept will take the typical beach weddings to a whole new level. It is therefore considered that attention to detail is an important component when developing a concept like this.

“A project will not necessarily be a success even if it was implemented successfully by the operator and user. There are many projects that failed in its implementation phase which have later proven successful. Further we cannot assume that a project with major failures in terms of time, cost and quality flaws will turnout as failures. For example the Sydney Opera house , was initially to be completed in six years , with a budget of 7.2 Million Australian Dollars. In reality it took nearly sixteen years with 102 million Australian Dollars spent to complete. Today it’s got international recognition and has bought in financial gains and has placed Sydney on the international map”.(Dr. Knut Samset-2004)

Cost factor is another agenda that needed to be highlighted and it needed to be tackle thoroughly in order to reduce the unnecessary cost incurs during the project.

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