IKEAs New Showroom - Project Management - Assignment Example

Project management IKEA’S NEW SHOWROOM 16/03/2012 Contents Contents 2 1.Introduction 4 1.1.Project charter 4 1.2.Project title 5 1.3.Project need 5 1.4.Project description 5 1.5.Project timeline. 5 1.6.Goals and objectives 5 1.6.1.Objective 1. 5 1.6.2.Objective 2. 5 1.6.3.Objective 3. 6 1.7.Assumptions, risks and constraints 6 1.8.Risk Analysis 6 1.9.Budget 7 2.project definition 8 2.1.Scope of the project 8 2.2.Stakeholders 8 2.3.Required resources 8 3.The project plan 8 3.1.Project quality 9 Step 1: Work Breakdown Structure (WBS) 9 Step 2: Activity task 10 Step 3: Gant chart 11 Step 4: Critical path analysis 12 Stakeholders’ roles 13 Risk management matrix 14 Project budget 14 4.Administration and monitoring the project. 15 First report on progress 16 Revised WBS 17 Revised Gant Chart 18 Revised CPA chart 19 Second report on progress 19 5.project review 20 6.Conclusion 21 1. Introduction This is a report on renovation of two storerooms into a showroom. Based on a meeting held between various stakeholders, it was decided that a business plan be developed on the renovation of the two store rooms. This report therefore looks into various steps undertaken and the basis of decisions made in developing a new showroom. Several meeting were held by the stakeholders to see a successful completion of the project. 1.1. Project charter The project is on renovation of two storerooms with the aim of creating a new showroom where customers can access and purchase goods. IKEA needs the new showroom in order to secure a competitive edge and enhance its performance. The current showroom has been found to be inadequate and leasing a new one would result to additional operational costs and thus not practical. In addition, new goods needed a more refined showroom for high quality presentation. This is based on the experience held from previous customers who indicated that the presentation of a service or product influenced their intention to purchase it. Since IKEA has been in existence and will get some of the staffs from the already hired staff, it will be easier for new staff members to adopt to its organizational culture. The new showroom presents the advantage of lowered conditioning and electricity costs since it is more spacious and open. This means that only one part of the show room will require cooling/heating and lighting. In addition, compared to the convectional closed office, the showroom will host more staff thus increasing its ability to serve more customers. 1.2. Project title Adopting a new design for the showroom 1.3. Project need It is necessary the IKEA adopts a new design for the showrooms. This will be achieved through the demolition of the wall dividing the two store rooms . The aim of this is to meet the emerging customer needs for space. 1.4. Project description The project will involve demolition of the wall which divides the two store rooms and their renovation to create adequate space for customer and employee convenience and attraction. 1.5. Project timeline. This project will commence on the 1st of October 2011 and will be expected to be completed on 29th October 2011. 1.6. Goals and objectives The goal of this project is to create a larger showroom for IKEA. 1.6.1. Objective 1. To merge the two storerooms and renovate them 1.6.2. Objective 2. Redesign the internal design of the new showroom 1.6.3. Objective 3. Open the new showroom before the set completion date. 1.7. Assumptions, risks and constraints Assumptions It is assumed that the demolition of the wall in between the two rooms will not affect the stability of the building. Every customer will be comfortable with the paint. 1.8. Risk Analysis Risk Description Probability Repercussion Person responsible response Inadequate funds low Catastrophic Project manager Mitigation Time wastage Moderate Major Team members Mitigation Interference with electricity wiring High Minor Team members Mitigation Water leakage Likely Major Team members Mitigation Load bearing Moderate Major Team members Accept Employee safety Moderate Moderate Project manager Mitigation Inadequate furniture Low Moderate Project manager 1.9. Budget Item Cost in $ Responsible personnel Architect 1, 000 Mahannad Construction 4,000 Mahannad Painting 1,000 Majed Electricity repair 1,000 Majed Project team 5,000 Suliaman, Mahannad, Siliaman Carpet 1,000 Suliaman Item relocation 2,000 Majed Relocation of items 500 Majed New furniture 3, 000 Suliaman Human resource requirement Total number: 30 No. of builders: 10 No. of people to lay the carpet: 4 No. of painters: 9 No. of electricians: 4 Interior designers: 1 Delivery men: 2 Material and equipment Materials and equipment needed include safety gears, carpet, building tools and furniture among others. 2. project definition 2.1. Scope of the project The customer satisfaction level will be enhanced. As customers become more satisfied with the adopted strategy, productivity in IKEA will improve. The project will require $ 18, 500 to ensure that the project is completed as per the plan and within the duration. 2.2. Stakeholders The internal and external stakeholders are made up of sponsors, suppliers, project management team, builders, painters, carpet layers and the owner. 2.3. Required resources Required resources include safety gears, paint, furniture, carpet, building tools and equipment and building materials. 3. The project plan After approval by the management, the project plan targets to complete the entire plan in 20 days. Implementation will begin immediately an approval is passed by the management team. To achieve this, a one day meeting will be held by the management team where the plan and business quote will be presented. Once approved, the renovation of the two stores into a showroom will begin by demolition of the wall in between the stores followed by removal of the carpet. An electrician will then repaired electricity wires that will have been interfered with. After this, an appropriate color will be selected and the painter be booked to do the painting. An inspection of the entire job will then be done and the management be given a chance to evaluate the project for approval. Majed will then be required to source for the appropriate furniture based on quality and price for installation. Installation for selected furniture will take place the following day. A report will then be written. 3.1. Project quality In measuring the project quality, a clear understanding of the expected outcome is important. This will act as the guideline in the entire process. Secondly, quality assurance processes will be followed during selection of various deliverables applicable in the project. This will involve a division of the delivables into procedures to be followed in accomplishing different roles and responsibilities. This calls for implementation of a quality control mechanism throughout the renovation process. Step 1: Work Breakdown Structure (WBS) This is a hierachial tree structure which is exhaustive of tasks and deliverables to be performed inorder for the project to be termed as complete. It forms a basis for project planning and a very common tool in project management. The major tasks to be executed in this project include designing the interior, scheduling, renovation of the showroom, cleaning, electrification, painting, laying the carpet, reorganization of the furniture and a review of all tasks . Each task is divided into sub-tasks. Step 2: Activity task This is developed based on the WBS. It includes an arrangement of different tasks to be carried out based on commencing date, duration of time and dependency. This is important in developing a clear understanding of the existing relationship between different tasks. As explained in the table below, the management team meeting will take a day, followed by quotation by the building company. Approval process will take (1) day, relocation of storerooms (1), remobal of the carpet (1), demolition of the wall (2), repairs (1), clearing the waste (2), Majed booking the electrician (0.5), wiring (1), selection of colors (0.5) , booking the painter (0.5), wall painting (1), inspection of the building (1), rectification and minor touches (0.5), project approval (0.5), Suliaman visiting different furniture retailer(0.5), furniture selection and price comparison (0.5), furniture installation (1), allocation of worker in different areas (1), completion of the final report (2). Step 3: Gant chart This is a very important tool in project monitoring. It is a graphical representation various tasks base duration taken to complete each task against time progression. It is used in scheduling and planning projects. This project will take 20 days to complete with office designing being the first step. The Gant chart below shows various tasks with arrows indicating the order in which different tasks will be completed. Step 4: Critical path analysis This is a sequence of the critical events that cannot be carried out concurrently. It is the most time consuming step. It has 4 different pathways with the longest being (ABCDEFGHNOPQRSTU) goal and will take 20 days. The duration taken by the longest path is equal to the duration taken by all paths. Stakeholders’ roles The project teams is tasked with the responsibility of evaluating the project through out the project plan process. The builders will give orders, review timelines and exercise control over the work and workers on site. Reports will be forwarded to the owner by the builders and lastly, a detailed report be developed. Risk management matrix Risk Description Probability Repercussion Person responsible response Inadequate funds low Catastrophic Project manager Mitigation Time wastage Moderate Major Team members Mitigation Interference with electricity wiring High Minor Team members Mitigation Water leakage Likely Major Team members Mitigation Load bearing Moderate Major Team members Accept Employee safety Moderate Moderate Project manager Mitigation Inadequate furniture Low Moderate Project manager Project budget Item Cost in $ Responsible personnel Architect 1, 000 Mahannad Construction 4,000 Mahannad Painting 1,000 Majed Electricity repair 1,000 Majed Project team 5,000 Suliaman, Mahannad, Siliaman Carpet 1,000 Suliaman Item relocation 2,000 Majed Relocation of items 500 Majed New furniture 3, 000 Majed A sum of $18,500 is required in order to complete this project. There must also be shareholder and management approval evidence. The selected project management team must also be approved by shareholders and IKEA management. This team will develop formal forms to be sent to the sponsors requesting for funding. The forms will pass through the stakeholders and the owner for approval before being sent to the sponsor. In addition, the business plan, confirmation letter got from the council and sponsor , a list of materials and the amendments will be presented by the team. The confirmation will be received via e-mail, phone call or a letter. 4. Administration and monitoring the project. The project management team is expected to keep updating the stakeholders on the developments during and on completion of the project. This is because every process of the plan and budgeting determines the success of the project. First report on progress Reduction in project time by 25%. The reduction in time required will require that an extra painter be recruited. This must be readjusted in the budget plan. Revised WBS Since the management intends to reduce the project time by 25%, it means the project will take 15 days instead of the previous 20 days to complete. This calls for a quick completion of some tasks to cater for the five reduced days. To achieve this, relocation time from the stores will reduce by a day, repairing of the wall and waste collection by 2 days , painting of the wall and checking prices for furniture by half a day each and allocation of duties to workers by a day. Revised Gant Chart The revised Gant chart indicates a reduction of time required by 5 days (that is 25%). Revised CPA chart This critical pathway indicates a reduction of time to 15 days. This is a shorter time for completion of the project. Second report on progress Item Cost in $ Responsible personnel Architect 1, 520 Mahannad Construction 6,500 Mahannad Painting 1,500 Majed Electricity repair 1,000 Majed Project team 4,000 Suliaman, Mahannad, Siliaman Carpet 1,000 Suliaman Item relocation 1,480 Majed Relocation of items 500 Majed New furniture 2, 000 Suliaman The reduction in time required means additional workers are needed hence the increased expenses. 5. project review The project management team managed to complete the project on time and successfully. Allocated budget was adequate and the management and survey team were satisfied with the results. The team clearly demonstrated step by step management of projects. Some lessons were learnt throughout the project process. To begin with, a reduction in the time required increased the budget cost. The completion of the project was sooner than planned. During the process, the risk management matrix proved to be of great help in unexpected situations such as when half the money has already been used, project team can consider saving money elsewhere. This project management plan has given me a better experience on planning a project, completion of a project on allocated budget, appropriate measures to take and progressive planning. The project has been helpful in developing my career path since I look forward to being a confident project manager in future who co-workers can trust to handle projects successfully. 6. Conclusion On conclusion of the project and report, I will have gained experience on planning and budgeting for a project. This project has enabled me to understand project planning and management in IKEA abd this knowledge is applicable in any company I may work with in future. Read More