Fruitful occasions.Project Management - Essay Example

?Running Head: Project Management Project Management [Institute’s Executive Summary: The project is based on Fruitful occasions, a competitive service that expedites in serving delicious fresh fruits and flowers nationwide for any occasion from household to corporate sector. The research is based on project management methodology, which facilitates its employees to learn and develop the artistic flower making in combination with fresh fruits and cater this expertise as a hallmark for the company. The philosophy used in developing the project is based on the traditional (PMBOK Guide) A guide to the Project Management Body of Knowledge. It also incorporates the benefits and pitfalls of different techniques uses to breakdown the work structure and tools used to plan and execute the project. The risk management structure is enforced and in place during the entire project cycle and different strategies are being used to mitigate and manage possible risk. The risk management structure monitors the progress of the project executed and develops strategies to reduce the impact of any future risk on the project as well. The project is based in Bahrain and further implications of productive prospective are included contained in the project scope. 1. Project Overview: Fruitful Occasions is a service that facilitates serving delicious fresh fruit and flowers nationwide for any occasion. It specialises in artistic flower making in combination with fresh fruits, which not only looks pleasant to eyes but also taste delicious. Customer satisfaction is the key element therefore fresh gourmet chocolate and fruits are utilised in bouquets and gift sets so that it could create a lasting impression for special occasions. Orders can either be customised or placed from catalogue through the website. Customers can select order according to the occasion or random and add to their shopping cart. Payments are accepted through PayPal, Credit and Debit Cards only. Customer’s details are saved in the order form in order to maintain confidentiality of the order. Once the order has been placed, the invoice will be sent to the customer for acknowledgement. With the acceptance of order, a contract will be established between the client and the company. In case of changes in price, first it will be communicated to the customer, if agreed then the order will be preceded (Fruitful Occasions, 2012). This report illustrates the entire project life cycle from execution, planning, scheduling and controlling the process by usage of resources in finite time to achieve a suitable goal. It will facilitate towards provision of exclusive services in Bahrain, which includes gifts delivery, flowers and fruits bouquets nationwide. The project is time specified and within qualitative and cost constraints (Kerzner, 2009). 2. Characteristics of the Project: It is implemented under the Project Charter, which encompasses the needs and specification of the project within its defined scope. The characteristics of the project are further illustrated below (Kerzner, 2009, pp. 23-27). 2.1 Aims and Objectives: The aim of this project is the execution of flower and fruits gift services in Bahrain, which shall be par excellence of the customers’ demands. The objectives are finite as it aims to reach household and corporate sector. It works on demand and premium delivery services to ordinary delivery services that is attainable and can be measurable in terms of profit and happy customers. 2.2 Scope and Constraints: The scope of the project facilitates to provide premium or excellent quality flowers and fresh delicious fruits to the new market. It will also focus on high customer satisfaction and PR reviews. The funds for the project are within the project scope as executed by the company’s management and board. Lastly, the time is critical and important for the project life cycle therefore it is essential for the project to be completed with the prescribed time limit. 2.3 Stakeholders: The main stakeholder of the project is the company owners, management, employees and the customers. The employees and the customers are the foremost key stakeholders for execution of this project (Meredith and Samuel, 2011, pp. 15-20). 2.4 Budget: The budget for the project is allocated by the company’s board and is important for the implementation of the project. 2.5 Approach: The project will be executed on PMBOK Guide approach that is based on covering the entire project life cycle from “Imitation, Planning, Execution, Monitoring and Controlling to Termination of the project” (Kerzner, 2009, pp. 12-20). The benefit of using this methodology could improve the productivity of the bouquets and gift service and can have a huge impact on the profitability of the business. The resources will be effectively utilised with a standardised approach (Project Management Best Practices, 2012). 3. Implication of the Project: The project is implicated according to the chosen methodology in Bahrain and will focus on the entire project life cycle. It is applied through five main processes as explained below: 3.1 Project Initiation: The initiation of catering for artistic services in flower and fruits making will be started in Bahrain. This is an eye catchy art and not only it looks good but will also taste delicious for mouth-watering appetites. The project is approved and assessed by the management followed by a project charter that will act as a guideline for the entire business proposal. The project charter is the systematic guideline for making and selling the products according to the company’s standards. The scope of the business proposal is evaluated and required resources are provided for the start-up. The company policy follows a strict fresh gourmet fruits, chocolates and flowers that are designed in such a way that caters almost every occasion. The investment for the project is provided in the project charter and associated risk are also discussed at this phase (Kerzner, 2009). 3.2 Planning: It is a crucial stage as the products and delivery services are planned according to the business policies. The most important ingredient for the products at this stage is the provision of appropriate resources in the Bahrain market. The customers want pure artistic combination of gourmet fruits and flower within reasonable period and price. The prices are another competitive strategy at this stage to enter the market but also not compromising on the quality of the ingredients used in creating the products. The delivery and lead-time in processing the order is also discussed and initiated among the team to incorporate steady flow of inventory within the time limit. The deliverables identified are provided and risk associated with the products is assesses and planned accordingly. This process delivers the main business idea, execution and portfolio. Various techniques and tools are used to aid the project plan during the planning process. The Work Break down Structure (WBS) approach was used in planning and projecting the business plan throughout its life cycle. It is represented in form of charts that breaks down work segments into structured smaller working units. It is more effectively managed if broken down into smaller units as compared to as a one huge whole project (Haugan, 2002, pp.13-21). It will help to plan and allocate appropriate resources such as fresh flowers and fruits, bouquet ingredients, iceboxes, etc. Appropriate cost in making, scheduling and delivering will be planned and monitored by the team. It will also list down further expenditure if required by the project team. The breaking down of work will facilitate different team members working on their assigned task such as the Flower artist will be responsible for arrangement of flowers according to the perfect occasion etc. This will improve the communication flow within the management and will help in catering for the customer’s demands. It will also increase the productive lead-time in producing the bouquets and omit duplication or omission of making wrong orders (Haugan, 2002, pp.13-21). Following steps are involved in WBS process of the Project: 1. Specification of the project objective that will foresee the entire project cycle: Serving delicious and fresh bouquets of artistic flowers and fruits to the people of Bahrain nationwide 2. The decomposition stage where the work is broken down into smaller units: The main business project will be broken down in following small units. The making of artistic flower and fruit baskets and bouquets ( production team), delivery schedule for special occasion (delivery team), orders and payments (Finance and Budgeting team), customer queries and feedback (customer care team) etc. The work is only assigned to employee’s specialising in their area of expertise that makes it easier to monitor and work within the project scope (Fruitful Occasions, 2012). 3. Templates, business plans, and charting are used to disintegrate the project so that it does not overlap or miss any order for reaching the production team in time. The framework is useful planning tool and help in monitoring the progress of the work structure (Haugan, 2002, pp.13-21). Once the planning and development of the agenda is completed the project team comprising of the management and the specialised employees will integrate the project. The deliverables are achieved and incorporated throughout the process with the project scope (Kerzner, 2009, pp. 8-35).s 3.3 Budget and Finance: The total budget for the project will be accredited by the company’s board or higher management will propose the budget for the new venture. It will include the start-up cost of the website, order forms, delivery vans, ingredients for the production, product making cost, warehouse etc. The total cost will be approved and allocated to different WBS units. 3.4 Monitoring and Failure: The significant aim of the project is to measure the progress of the project and whether the profitability and customer satisfaction in delivering the bouquets are met. An annual survey will be conducted to obtain the feedback from the prospective and old customers to monitor the deliverable services. The customer feedback along with the process report of the products will be send to the management to monitor the progress of the project and whether the business plan is incorporated according to the company’s aims and objectives. Any failure or lapses in making the bouquets or delay in deliverables will also be checked and reported to make possible changes for the future deliverables. In any stage, if there are many late deliveries and unsatisfactory customer services than alteration shall be needed to cater for the customers’ demands (Kerzner, 2009, pp. 8-35). The monitoring of the work units can be restrained by a rule of 8/80, which states that no work unit should exceed 80 hours or lesser by 8 hours. It should be in the range and help as an important monitoring strategy (Haugan, 2002, pp.13-21). 3.5 Risk Management: It is important strategic processes, which identify the risk, adhered to the project and mitigate it in order to maintain the organisation’s sustainable benefits. It should be penetrated in the business operations and organisational culture so that employees will be responsible for managing and reducing risk at every stage. If appropriate risk is identified and managed it time than it might not overlap the work process and may increase the success probability of the business venture (Pfleegau and Lewis, 2005, pp. 74-78). The integral areas of risk management process are considered in execution of the project: 1. Risk Identification: A formal process that should be taken at every interception of the project from the initiation to the closing stage. It will help to identify pitfalls encompassing the project scope or goal. The identification element will be preceded in the roles and responsibilities of each unit so that each unit identify its potential risk during the entire project life cycle. It can be done by brainstorming and boardroom meeting within the team to identify potential risk in the process. Provision for unconditional risk shall also be made during each phase, which i.e. condition and consequence of the risk element. The WBS could possibly aid to identify any missing risk in the planning the project which is essential as it could have a huge impact on the entire project life cycle (IRM, 2012). 2. Risk Analysis: A detail evaluation of the possible risk outcome in the entire project is necessary during the initiation and planning process. If any critical risk is exposed to the project, it should be communicated to the higher management for its further occurrence. Four areas are identified for a detail analysis of the risk management process(Heldman, 2005, pp.6-20): i. Risk probability: It all depends upon the occurrence of any unforeseeable events such as traffic jams, road accidents or bad weather could result in delay in deliveries to the customers. It can be ranged from higher, medium to lower level. If the risk is of high level and critical to the entire project it is treated as a constraint that could affect the project scope and its objective (Damodaram, 2008). ii. Risk Impact: The impact is an important measure, as the consequences of the risk can either or either not affect the project scope or its objective. If the impact is at large, for e.g. during New Year’s Eve there will be higher deliveries and if larger or many orders did not reached in time than it could have a huge impact on the business as well as the customer service (Damodaram, 2008). iii. Risk Exposure: If the exposure is at large i.e. higher impact and higher probability than it is critical for the entire project scope. If the impact is at large but the probability is low then it can be mitigated. If the exposure is low due to lower impact and probability, then it is likely that the risk might not occur during the project phase. iv. Prioritization: Marking the risk and dealing it is essential part of the project phases. It can be served either through Risk Management Matrix by rating through exposure of the risk or contingency plan. If the impact and probability is higher and the risk is deducted then it should be immediately handled by the team. The exposure is numbered by 1 to 9. If the exposure is above five, then it should be a higher risk and needs immediate attention. If it is lower than five then it is critical but due to its lower occurrence it can be dealt if there is any chance of occurrence (Damodaram, 2008, pp. 5-20). 3. Risk Planning: This facilitates an action plan to finish or mitigate the risk from the project life cycle. It can be facilitates through Risk Assessment Framework which focuses on the following : a. Acceptance: The risk that cannot be mitigated and is incorporated within the project scope and schedule. b. Avoidance: The unlikely possibility of risk that could occur and does not have a huge impact on the business such as next day deliveries due to bad weather on a normal working day. c. Transference: If the probability of occurrence is higher than it can transferred to either within the organisation or to third parties. d. Reduction: The possibility of the risk that can be controlled by the staff, for example, using fresh ingredients, good customer satisfaction. 4. Risk Monitoring and Control: The implementation of the action plan is taken in the last phase that monitors any other occurrence of the risk and whether appropriate actions are mitigating the risk and protecting the project. A monitoring unit will be established which will specifically analyse the occurrence and likelihood of the risk and ensure an action plan is in place to reduce its impact on the overall project. Potential awareness should be communicated within the management team to ensure any possible risk occurring in any project unit can be dealt. Once the risks affecting the projects are dealt, they should be reported and dissolved for future correspondence (Damodaram, 2008, pp. 5-20). 4. Gantt Chart: The graphical representation of planning and scheduling the work structures on a horizontal bar chat pictorial is called a Gantt chart. It aids to understand the allocation of desired resources allocated to the project. It also helps to target any lapses or slow work in progress during the project. A target is set and monitored to achieve so that the project is completed within the scope, budget allocated, and project objectives. The whole project is depicted in a graphical representation on a bar chart that tells the progress of each unit and if it is ahead of time or lacking any resource. It also helps to understand the project’s actual performance and whether the goals are met according to the completion date. This tool is helpful during the planning phase and monitoring phase (Kerzner, 2009). It is illustrated as follows: 1. The project is executed for a fixed date and time, which can be measured in weeks or months. Checkpoints will be established to monitor each phase. 2. Identify the possible WBS processes to plot on the Gantt chart. 3. List of work structure is formed with their appropriate date and time in the project management software. 4. Prioritising and arranging the work structure according to their occurrence and relevance on the bar chart (Kerzner, 2009, pp. 25- 31). 5. Project management software is used appropriate for creating a Gantt chart to ensure that all the work structures are listed and managed according to the project scope. 6. The Gantt chart will show the work in progress, finish task, any over lapping task on another work structure and any pitfalls in the project (Kerzner, 2009, pp. 25- 31). 7. Milestones are tiger points, which indicate that a major phase of the project is completed therefore when a critical task is completed within the scope it will be marked as a milestone in the project life cycle. 8. A completed information notes should be in place for the entire project phase and labelled on the Gantt chart. It reveals any critical information necessary for the project, which can affect the individual project phase (Kerzner, 2009). A Gantt chart is created to show the process of Initiating the business plan in Bahrain over 4 months period: Conclusion: The project was completed and successful following the PMBOK methodology. The scope was well reversed and the project objectives were achieved. The team at Fruitful Occasions were successful in implementing the artistic flower and fruit making bouquets to the Bahrain market. Customer satisfaction, increase in orders and uniqueness of the business venture are few qualitative factors anticipated during the project life cycle. The appropriate risk management helps to undermine any deviations in the plan and actions are taken to mitigate its affect. Risk prevention helps to save time and budget during the project and management References: Damodaram, Aswath. 2008. Strategic Risk Taking: A framework for Risk Management. Pearson Prentice Hall. Haugan. T, Gregory. 2002. Effective Work Breakdown Structures. Management Concepts. Kerzner, Harold. 2009. Project Management: A Systems approach to planning, scheduling and Controlling. John Wiley & Sons. Heldman, Kim. 2005. Project Manager’s Spotlight on Risk Management. John Wiley &Sons. Fruitful Occasions, 2012. Terms and Conditions. Fruitful Occasions. Retrieved on November 30, 2012: http://www.fruitfuloccasions.co.uk/acatalog/info.html IRM, 2012. A Risk Management Standard. The Institute of Risk Management. Retrieved on November 29, 2012: http://www.theirm.org/publications/documents/Risk_Management_Standard_030820.pdf Pfleegau, L. Shari and Lewis, Rosland. 2005. Software Cost Estimation and Sizing Methods: Issues and Guidelines. Rand Corporation. Meredith, R. Jack and Mantel, J. Samuel. 2011. Project Management: A managerial Approach. John Wiley & Sons. Project Management Best Practices, 2012. Introduction to the Project Management Best Practices: PMBOK and PRINCE 2. IT Business edge. Retrieved on November 30, 2012: http://www.itbusinessedge.com/cm/community/features/guestopinions/blog/introduction-to-project-management-best-practices-pmbok-and-prince-2/?cs=36808 Read More