Project Management Business: Vintage-All - Case Study Example

PROJECT MANAGEMENT BUSINESS PLAN: VINTAGE-ALL Table of Contents Table of Contents 2 Introduction: 3 Project Aims and Objectives: 4 Project Planning Process: 4 Project Methodology (PMBOK): 6 Contribution of the project towards Vintage-ALL: 13 Conclusion: 13 Reference List: 15 Introduction: Project management process includes various methods and systems which are being implemented based on the necessity and relevancy of the process with the situation (Cleland and King, 2008). As project functions and complexities have increased, new methodologies have been designed in order to meet the project needs. However, it is essential to know the contribution of these methodologies in a comparative manner. Gido and Clements (2012) studied that most critical aspect of any project is to ensure its quality, time and budget management process. The project methodology selected for the business processes are aimed towards these three aspects mainly. The case given is related with Vintage-ALL, an Australian manufacturer for domestic and commercial furniture. Although, Vintage-ALL has a distribution warehouse established in Sydney, the international operations are mainly commenced from their factory in Zheijang Province in China. The primary distribution network of the company is formed of wholesalers, retailers and online shopping platforms such as Amazon.com. The products produced in the factory are shipped to its major warehouses situated in China, USA, Germany, and Australia. Although the revenue turnover of the company is increasing, the firm is not able to generate an acceptable profitability from their operations. The managerial authority of Vintage-ALL is focused on installing an innovative technology based project which can redirect the company towards profit making scenario. Project Aims and Objectives: Observing the problems stated by the senior managerial team of Vintage-ALL, the various aspects of the project aim can be established. For instance, implementation of technology will be an inclusive project feature. The aim of the project will be to establish a project structure that would help Vintage-ALL to enhance their profitability by 3% initially with the help of introducing an innovative technology in the work process of the firm. The objectives of the project process are as follows: To assess the need for implementation of a new project in the work process of Vintage-ALL To identify and implement a suitable technological method in the work process of Vintage-ALL To select and implement a suitable project methodology for carrying on the project of Vintage-ALL To examine the compatibility of the organizational structure with the selected project method Project Planning Process: The project planning process will imitate by identifying the problems being faced by Vintage-ALL in deriving a profitable work process. From the given information, it can be assessed that Vintage-ALL is not facing problems in context of their quality or customer satisfaction as the annual revenue of the firm is increasing. Thus, it can be observed that the problem of Vintage-ALL is increased operational expenses. Vintage-ALL operates in around 40 countries around the world, but the primary distribution means are limited and situated in few countries. Also, despite the huge market operation of the company, Vintage-ALL is hacking only one manufacturing unit situated in China. As a result the logistics segment of the company can be held responsible for growing expenses. The technological need of Vintage-ALL is considered for reducing their operational expenses and should relate to each of the functional segments of the business. The present work monitoring system used by Vintage-ALL is Systems, Applications and Products in Data Processing (SAP) which has helped them in designing the entire operational plan and also has an automated theme for monitoring the business process of the firm. However, Vintage-ALL should try to change this basic technological monitoring and measurement process and the most cost effective process available is Enterprise Resource Planning (ERP). Also Vintage-ALL will have the option of customizing the ERP software as per their needs and project compatibility. In order to reduce the operational expenses of the firm, Vintage-ALL has focused on implementation of innovative technology or upgrading an existing technology. This consideration has also formed the basic framework of the project plan. However, in order to proceed with the process, a specific project methodology is reburied. As per the organizational structure of the firm, some of the project methodology options that can be considered are Projects in Controlled Environment (Prince 2), Project Management Institute, Project Management Body of Knowledge (PMBOK) and TenStep. Prince 2, PMI and TenSteps are mostly used for gaining excellence for a short-term project duration (Schwalbe, 2010). On the other hand, PMBOK can be implemented for short-term as well as long-term scenarios and hence PMBOK will be the project mythology being utilized in the business process (Williams, 2008). From the above discussion the main theme of the project process can be laid out which includes two primary variables namely Customized ERP and PMBOK methodology. The project planning process in relation to PMBOK will begin with initiation, planning, executing, monitoring and controlling and closing (dos Santos, 2008). These will be the five steps of the entire project process that will first focus on reducing the expenses of the logistics process and enhance the scope of profitability of the firm. Project Methodology (PMBOK): The project methodology as per the PMBOK method includes the various stages of project development. The five stages of the PMBOK methodology has been reflected in the below diagram: Figure 1: PMBOK methodology (Source: Williams, 2008, p - 46) In relation to the project plan of Vintage-ALL, the process of developing the business growth structure can be managed with various factors that are related with the growth of the organization. The aims and objectives of the project also have been developed in a manner that so as to relate with the organizational objectives. The steps of the project methodology will be defined with the various activities embedded in each steps. Figure 2: Project Initiation (Source: Created by Author) The initiation stage of the project will begin by identification of the problem faced by the business, which in this case is the growing operational expense. Once the problem will be determined, feasibility study will be conducted to understand the possible threats posed by the problem. The probable impacts related with the project problem can be evaluated by studying the feasibility of the project plan (Meredith and Mantel, 2011). Clarifying the nature of the project problem, the next step will be to assess the project team development and creating a project outline which will also reflect the roles of each member of the project team (Atkinson, 2009). The final activity of the project team will be to conduct a review of each activities performed in the first stage. Project planning is the most crucial step in the project development process. This stage includes the investigative, appraisal, problem solving skills and foresight of the project team. The project development process of the Vintage-ALL is directly related with the project objectives. Figure 3: Project Planning (Source: Atkinson, 2009, p.339) The project planning process will mainly include the various strategies used for each activity of the plan. The resource planning process will include the acquiring of the Customized ERP software and the resource efficiency that can be achieved by it. The financial planning process will focus on laying out the budget for the entire project plan and also layout the financial implications of the project process (Atkinson, 2009). The quality plan will mainly set the benchmark for each of the project activities and for ensuring the best possible results. The risk plan is one of the most essential segments of the planning process which will determine the foresight and risk analysis capability of project team. The project team will determine the possible risks and uncertainties that may hamper the project process (Lee and Kim, 2009). The acceptance and communication plans are related with the collaboration of the project team and create flow of information within the project team. The procurement and supplier management plan relates to the other infrastructural functions which will be required while implementing the Customized ERP software in Vintage-ALL. Figure 4: Project Planning (Source: Created by Author) The project execution has also been designed according to the project activities which create a parallel relation with the project planning process. All the project activities have been kept under a monitoring board which can constantly update and assess the project progress. One of the key functions as described in the above diagram is conducted by the communications planning process which is ensuring inter-connection and collaboration among the activities (Bonk, 2013). Time management process will depend on the fluency of work transfer and adaptability. Every team of the project group should be able to communicate their progress to other teams for developing a chain process in the project development (Meredith and Mantel, 2011). On the other hand, cost management and quality management process will be focused on by the team leaders of the project group who will finally report to the financial and the project head. This will also create communication with the organizational heads so as to keep the project in track with the organizational objectives (Wideman, 2002). The risk and issue management again will focus on the details of each activity and evaluate their implications on the project outcome. Also the problems and uncertainties faced by the project teams will be assessed by the risk and issue management groups. Focusing directly on the implementation of Customized ERP software in Vintage-ALL, the processes will be mainly related to the change management activity within the database and information management process of the firm. As the software is installed, all the functional aspects of Vintage-ALL will be directly reflected on the software and the primary database of the company. This will require the installation of a larger server and also keeping a backup server for managing the existing files of the company. Going back to the process of procurement of the ERP software, the procurement management team will be handling this responsibility. The procurement process is not only about gathering the needed resources but also assuring the quality of the resources and the after sales service provided by the concerned supplier (Jiang, Klein, and Means, 2007). The supplier management team will be responsible for handling all the issues related with the software installation, operations and use process. The most crucial task is to create platform for the employees of the firm so that they can understand and use the benefits of the project cause. Connecting the operational functions of the business with the project is done by the acceptance process. In practical terms, this will be the section where the employees are being trained for using the software installed in the system. The monitoring and control process of PMBOK is generally installed in all the project steps so that a continuous vigil can be maintained and the succeeding project stages can be accustomed in accordance with the changes made in the project plan. Some of the key factors that may bring in changes in the project of Vintage-ALL will be work process or unexpected rise in demand of the products and services which may hamper the project maintenance process. Another factor that can probably change the project process is the maintenance of data and its transfer to a new server. Figure 5: Monitoring and Control (Source: Created by Author) As reflected in the above diagram, all the stages of the project are being monitored continuously which is finally analyzed and examined in the monitoring and control phase. Based on the examinations, the previous stages will be modified if necessary. This also ensures the accuracy in the project development process and finally helps in the project closure (Meredith and Mantel, 2011). The monitoring process will be also consider all the probable changes that may be needed after the project completion and develop contingency plans for them. Another essential task of the monitoring and control process is to prepare a plan for stopping the project in case of any unprecedented threats (Crawford, Pollack and England, 2008). The final step of the project is the closure. The project closure process has two primary activities namely project closure which includes reviewing the quality of performance of every project activity and assessing the project results in terms of the aim and objectives of the project. Figure 6: Project Closure (Source: Created By Author) The development of the entire project process is directed by the project aims and objectives which are finally assessed in the project closure stage. The project closure will ensure that all the activities have been performed in accordance with the organization process and also consider the outcome of the project in relation to the organizational objectives. Contribution of the project towards Vintage-ALL: The project process has been developed considering the needs of the business process to reduce their operational expenses. The managerial body of the organization has considered that implementation of an innovative technology can help them in reducing their operational process. In this regard the Customized ERP software has been considered for implementing in the business process. The primary benefits of ERP for the business process is that unlike their existing software SAP, ERP can monitor the operations of the entire process and also is easy to operate for the employees (Carmichael, 2010). ERP processes can be customized according to the needs of each of the business functions which will increase the accuracy in the process of information storing and database management (Kloppenberg and Opfer, 2007). Furthermore, ERP can be stored in a mother server where it can update the data automatically by detecting any sort of delicacy or irregularities in the data. This will help Vintage-All to streamline their operational process and also relate their supply process with the demand in the various markets (Chapman and Ward 2010). Proper utilization of the ERP information network is also expected to reduce the logistics process in the long-run as the company can assess the trends of sale and demand in various markets around the world and transport the materials from their storehouses accordingly. Conclusion: The focus of the research was on the project methodology PMBOK and its contribution in the case of Vintage-ALL. In order to reduce the operational expenses of the company by implementation of an innovative technology, the basic software of activity monitoring was selected. The existing monitoring of Vintage- ALL was mainly conducted with the help of SAP which is effective in designing the work layout of the firm. Thus, Customized ERP was selected for performance monitoring of the company and was implemented in all the operational processes. The project methodology was selected as PMBOK as it suits the need and nature of the project and also can examine each activity of the project in a detailed manner. The project management process of the company was segmented in accordance with the five stages of PMBOK that helped in categorizing the needed activities in relation to the aims and objectives of the project development process. PMBOK methodology as observed focuses on developing the project plan in relation to the aim of the project and the overall organizational objectives. The project monitoring and control process has been developed with a probable contingency plan which can stop the project in case of an emergency or negative outcomes. Reference List: Atkinson, R., 2009. Project management: cost, time and quality, two best guesses and a phenomenon, it’s time to accept other success criteria, International Journal of Project Management, 17 (6), pp. 337–342. Bonk, S., 2013. PMI PMBOK’s Risk Methodology. VA Forum for Excellence. Carmichael, D. G., 2010. Project planning, and control. 5th ed. Canada, New York: Taylor & Francls. Chapman, C. and Ward, S., 2010. Managing Project Risk and Uncertainty. 5th ed. New York: John Wiley & Sons. Cleland, D. I. and King, W. R., 2008. Project management handbook. 4th ed. New York: Van No strand Reinhold. Crawford, L., Pollack, J. and England, D., 2008. Uncovering the trends in project management: journal emphasis over the last 10 years, International Journal of Project Management, 24, pp. 175–84 dos Santos, F. R. S., 2008. FMEA AND PMBOK Applied to Project Risk Management, Journal of Information Systems and Technology Management. 5(2), pp. 364-374 Gido, J. and Clements, J. P., 2012. Successful Project Management, 5th ed. London: McGraw-Hill Education. Jiang, J.J., Klein, G., and Means, T.L., 2007. Project risk impact on software development team performance. Project Management Journal 31 (4), pp. 19–26. Kloppenberg, T. and Opfer, W. A., 2007. The current state of project management research: trends, interpretations and predictions. Project Management Journal, 33(2), pp.5–19. Lee, J. W. and Kim, S. H., 2009. An integrated approach for interdependent information system project selection, International Journal of Project Management, 32, pp. 111–118 Meredith, J. R. and Mantel, S. J., 2011. Project management: a managerial approach. 8th ed. New York: John Wiley & Sons, Inc. Schwalbe, K., 2010. Information Technology Project Management. 4th ed. Chicago: NTC Business Books. Wideman, R.M., 2002. Comparing PRINCE2 with PMBOK. AEW Services, Vancouver: Canada. Williams, M., 2008. The Principles of Project Management. 4th ed. Germany: Grin Verlag. Read More