Ingredients of Successful Project Management of Kitchen Redecoration - Business Plan Example

Kitchen Redecoration Project 0 Project background One of the means by which companies seek to grow and maintain or achieve profitability is by carrying out projects. The activities in every project are unique, are connected to each other and take place in a particular sequence with the aim of being completed in accordance with the specifications provided, within the time period allotted and without surpassing the funds allocated (Wysocki 2009). This project seeks to redesign a kitchen and will involve some risk and uncertainty. It is of great importance that in the process of managing the project, that it is properly controlled and coordinated. This of course has to be done in such a way that it conforms to quality standards. This project will follow the usual cycle involving the four phases – initiation, planning, execution and closure (The Project Management Institute 2008). 2.0 Business and Project Aims and Objectives The aim of our business is to make a suitable return on investment by providing tasty and healthy meals in an aesthetically pleasing environment. The realisation of this goal depends on customers’ support. In order to get this support, the product must meet customers’ requirements. The need has to exist for a project to be initiated and this is no different in this particular scenario. This need is related to the customers’ wishes and the need for the continued existence of the business. 3.0 Current Situation- Problem/Opportunity Statement The need exists for a more spacious and aesthetically pleasing kitchen where our customers can see how their food is being prepared. Customers have expressed the need to see the area in which their various dishes have been prepared and in order to satisfy their wishes the decision has been taken to redesign the kitchen in such a way that management will be confident that it meets their requirements. There are a number of alternatives available to achieve this goal and these will be assessed appropriately. 4.0 Analysis of Options and Recommendations Three options are available to get the project done. They include: – moving temporarily to another building which needs some repairs; carrying out the redesigning project while the restaurant is in operation but outside of opening hours; or closing down for three (3) weeks. These options have advantages and disadvantages. Moving to another location will involve moving equipment and utensils. This takes time and it may not be possible to complete the process outside of business hours. Additionally, staff would have to be paid – in most cases overtime rates to facilitate this move to and from the temporary location. Furthermore, other expenses including rent and minor renovations of the facilities at the temporary location would be incurred. Carrying out the project outside of opening hours would allow the project team to work during the night from 9:00 pm to 7:00 am when no meals are being prepared. This would involve ten (10) hours of work each day. These hours are outside of normal hours but would not necessarily mean differences in hourly rates. However, arranging things in such a way to make the kitchen functional during normal working hours may pose a problem. In fact, items of equipment and utensils would have to be rearranged everyday in order to facilitate the efficient and effective operation of the business. This would involve too many activities that would become part of the project and would also constitute additional as well as unnecessary work for all concerned. In fact, when the team members on the project arrive at the work area each day they would have to rearrange things before they can get started. Therefore, they would have to be paid for the time taken to do unnecessary work. This also means that the work takes longer, especially since the project team members would have to spend some time rearranging things to facilitate the continuation of the project before they leave each day. Closing down for the period seems to be the best option. The only disadvantage is that business may be lost. However, if this is done during a period when business is usually slow and profits are non-existent or extremely low then nothing much will be lost in terms of income from the business. In fact, the redesigned kitchen could draw more customers to the business, thus setting off the losses or any reduction in revenue during the period. 5.0 Goals/Scope of the Project In analysing the need for customers to be able to see how their meals are prepared, the objective of redesigning the kitchen at the current location was deemed to be necessary. According to Schwalbe (2009) this process entails a definition of the scope of the project – that is, the actual work that will be undertaken, and the specific product that will be delivered at the end of the project period – that is the result of the project. The goal of this project is to fulfil the requirements of the customers of the business who contribute to its success. The project will involve creating the new design for the kitchen; removing unnecessary partitions to facilitate ease of view by customers; relocating various outlets – electrical, telephone and water to facilitate the design; redecorating the area – including adding details and painting the area. 6.0 Processes or Stages/WBS It is important that all projects meet operational, time and cost criteria. The project manager should therefore consider the triple constraint of scope, time and cost which needs to be balanced against each other in order to facilitate successful completion of the project (Schwalbe 2009). The scope is integrally connected to the time and cost of the project as it facilitates the determination of both. The cost will determine how beneficial and profitable the project will be. The sequence of activities to be undertaken in this project will have to be determined and a work breakdown structure (WBS) completed. The WBS is a means of determining the cost of the project and the time it will take to complete as it breaks down the project into its constituent parts. It is one of the means by which the hierarchy of work products are represented in such a way that their relationships and their dependencies can be identified. The activities involved in this project are listed in Table 5 of the Appendix. The WBS for this project is illustrated in Appendix 1. It shows the major tasks to be performed and the activities involved in completing them. All the processes are of importance and must be properly executed. Painting an area is not just applying paint. It is ensuring that the paint is properly mixed and evenly applied to the area. It is also ensuring that where several colours are used, they are well coordinated so that they appeal to customers and add a look of elegance to the restaurant. See Process Description form labelled as Figure 5 in the Appendix for details. 7.0 Project Duration Plan (Network/CPM) There are a number of tools available to project managers to ensure the completion successful projects. The Gantt chart and Network diagram are two useful tools. They are used to schedule the activities of the team on this project. The Gantt Chart which is shown as Figure 2 in the Appendix provides information on the schedule for all fifteen (15) activities – when they start and when they should end, and what activities can be performed simultaneously. It shows that the utilities can be disconnected (C) and equipment can be removed from the kitchen area (D), while materials are acquired and prepared (D). The critical path method was designed to help in scheduling, monitoring and controlling large and complex projects (Heizer and Render 2006). The network diagram which is represented by Figure 3 in the Appendix uses the Activity on Node (AON) approach where the activities are represented by the rectangular nodes as shown in Diagram 1 below, in order to determine the critical path. Diagram 1- Activity Node The activity node shows the identification number of the Activity (denoted A in this case); its duration – labelled D in the diagram; its earliest start (ES) time/date in the top left box; its earliest finish (EF) time in the top right box; its latest start (LS) time; and its latest finish (LF) time. The earliest time that an activity can start is the activity’s ES – assuming all preceding activities have been completed. The earliest time that an activity can finish is the activity’s EF – assuming the project starts on time and the preceding activities have been completed. EF is calculated by adding the duration of the activity to the earliest start time. The latest time that an activity can start is the activity’s LS. It is the latest time the activity can start without experiencing cost and time budget issues. The latest time that an activity can finish without delaying the other activities and the entire project is the activity’s LF. The critical path provides information on the longest time for project completion. The information suggests that the ‘Kitchen Redesign Project’ should take 22 days. This path is represented as the path through A, B, E, F, G, I, J, K, M, N, and O. It is highlighted using thick blue lines and was arrived at using forward pass to determine early start (ES) and early finish (EF) times and backward pass to determine late start (LS) and late finish (LF) times (See Figure 3). The forward pass establishes the ES as the EF of the preceding activity and adds the duration activity to obtain the EF. This is computed for all activities after which the LF is computed for the last activity in the sequence based on the EF of that activity. The LF for the final activity is computed in order to proceed with backward pass which establishes LS and LF for all activities. The backward pass follows the same procedure as in the forward pass. The exception is that it is in the reverse direction. For activities with more than one activity following them – for example, Activities A, K and G – LF is the earlier of the LS for B and C; I and J; and L and M respectively. 8.0 Risk Management Every project involves risk and these risks are normally associated with the usual time and cost budget issues. The risks involved in this project includes: funds not available to complete the project on time; unavoidable absence of team members with special skills; material shortage; various acts of God; and certain critical activities not completed on time. The matrix in the Appendix provides additional information on the risk associated with the project. It provides information on whether the related risk is a threat or an opportunity; the probability of its occurrence; the nature of the cost; how it will affect the schedule; how it will affect the performance of the project; the score; and whether the risk can be quantified. 9.0 Quality Control Policy/Plan Completing a project that meets a particular standard is very important. A Quality Control Policy needs to be in place on which a plan can be formulated. In order to ensure quality there needs to be proper communication and the project needs to be properly monitored. This means that the actual work completed at relevant stages will be compared with the plan and corrective action taken to ensure that it they agree. Proper monitoring and feedback will ensure that there is little or no reworking. This will help to prevent the project from going over the time scheduled as well as the cost budgeted. In the event that the scope of the project needs to be changed due to unforeseen circumstances, this needs to be communicated quickly before other unnecessary activities are performed. This will require a revision of the project plan which should be communicated to all stakeholders. If something is going wrong, this can be corrected in time to prevent costly reworking and waste. 10.0 Resources Statement A resources statement is very critical to any project. This statement indicates the resources required for the project. The plan which includes the design of the kitchen is one of the most important items. It is the design that will determine the amount of materials required to carry out the project. Table 5 in the Appendix provides a list of additional resources. 11.0 Procurement Management Plan Procurement management is the process of recording purchasing decisions, deciding on an approach and identifying sellers (Project Management Institute 2008). Getting the contractor and the architect is a vital part of this plan. In terms of materials the contractor will be relied on obtaining materials that conforms to standards in the construction industry. See Supplier Evaluation Form for the project labelled as Figure 6 in the Appendix. 12.0 HR Management Plan A HR management plan is critical to the success of any project. All persons engaged on the project needs to be properly organised and controlled in or to have the project completed on time and within budget. The persons assigned to carry out different activities need to have the skills and experience in the respective area. This means a selection plan will be necessary. This will involve reviewing the personnel files for the experience and qualifications of various employees in order to determine the best fit for various team member positions on the project team. The architect and the contractor will be chosen by a process of tendering. The choice of person for these two positions will be based on experience and the amounts tendered. This project will include a project manager who will be recruited from the restaurant management team; the accountant; a carpenter; an architect; the contractor who is external; an electrician; a telephone technician; a plumber; painter; a mason; and two casual workers. The project manager has skills in project management and will discuss matters with the contractor, the accountant, and the architect to make sure they are aware of the requirements for the project. The project manager will prepare the project plan including the WBS, Gantt chart, the network diagram, the HR plan, the communication plan and the risk management matrix. The cost will be discussed with the accountant who will then prepare the budget for the project. The architect, electrician, telephone technician, plumber, carpenter, the mason, one of the casual worker and the contractor are from outside the organisation. All others – the painter, the accountant, one of the casual worker and the project manager are from the organisation. It is expected that based on the communication plan all members of the team will have a spirit of cooperation. An organisation chart shows the reporting relationships in an organisation. At the top is the project manager. The architect and the contractor reports to the project manager while the other members on the team report to the contractor. The organisation chart is shown as Figure 4 in the Appendix. 13.0 Communication Plan Communication is an important aspect during the planning and execution phases of the project. The members of the project team need to be informed of the purpose of the project. There are so many things to communicate – in the planning stage – the proposed start of the project; the employees of the restaurant that will be involved; and the activities that they will take part in. The method by which the various groups will be communicated should be outlined to ensure that the team is effective. In terms of the persons to be engaged on the project, their supervisors need to be informed so that they can make the necessary plans to do without the skills of these team members during the period in which the project will take place. For this purpose there will be a ‘Kick off Meeting.’ The purpose of the Kick off Meeting is to ensure that all the project team is aware of all the requirements of the project – its scope; the expected date on which the project will start; the team members involved; their roles; and the deliverables. It is important that all parties are prepared for the task and that the project and its objectives are fully supported. See Kick off Meeting Agenda Form labelled as Figure 7 in the Appendix. All stakeholders of the project need to be informed of any changes to the project plan. The stakeholders of a project are the people who show active involvement in or who are impacted in some way by the project, whether in a positive or a negative manner (The Project Management Institute 2008). In relation to this project, they include the champion, sponsor, customers, users and the project team. The sponsor of the project is the organisation that will provide the financial resources. The restaurant manger made the decision that the project should be carried out and played a crucial role in developing the project and so he will be the champion of the project. The customers (external stakeholders) and the users (internal stakeholders) are the persons who use the product (The Project Management Institute 2008). See Table 4 in the Appendix for a Stakeholder Register. When various milestones are accomplished stakeholders should be informed. 14.0 Milestones A milestone is a point of major significance in a project (The Project Management Institute 2008). They represent deliverables that help to facilitate control of the project (Roberts 2009). One of the major milestones in this project is the completion of the main structure. This will be arrived at when the area is properly rendered – that is the mason work has been completed. At that point, the only major task to be accomplished is the mason work which involves carpentry where the additional details are added. This signifies a major event – after which the final task is the painting of the area. Milestones are critical activities – they are included among the critical activities in the project. They are activities J, M and O. 15.0 Cost Management Funds are limited with a number of alternatives competing for its use and so managing cost is an extremely important issue. There are a number of issues that can lead to cost overruns. They include: late start of the project leading to rescheduling of activities– this normally requiring a recalculation of figures; reworking activities which normally result in waste of materials; activities taking longer than expected; unexpected increase in the cost of materials and labour; change in the scope of the work; and unexpected items of expenditure. The contractor has provided an estimate of the cost of the project - including materials. This along with the cost of the architect and other expected items of expenditure are shown in Table 2 in the Appendix. It is expected that within the first year of reopening the project will yield financial benefits in real terms and that the cost will be recovered at the net present value (NPV) in real terms of approximately £2,888. The NPV is the found by setting of the cost of the project against subsequent cash flows. The cost f the project is expected to be no more than £13,000 and the profits from the restaurant in the first year - £17,000. The discount rate is not expected to exceed 7%. See Table’s 3 and 4 for details. 15.0 Recommendation/Suggestion A successful requires some of all the ingredients of successful project management. They include; proper resource planning – human and material; a proper communication plan; a risk management plan that takes into consideration all the risks involved; a cost management/financial plan; a procurement plan; a quality control plan; and a project management plan. If these are not done, it is highly likely that the project will face challenges. Additionally, all projects face challenges. It is how they are managed that is important. Once the project manager has the right leadership skills to manage the project, the project team should be sufficiently motivated to carry out the task to successful completion of the project. Although this is a small project, it still requires all the elements of project management. I recommend that the project be carried out as it will facilitate a number of benefits for the organisation. Since Activity A does not involve the actual work in the kitchen area of the restaurant it could be done before the project starts. This will reduce the number of days of restaurant closure by three (3) days. At the end of the project the final product should be assessed to determine whether it will meet the objective of the project. The project should be accepted when stakeholders are satisfied with the results. References ATP. (2004). Draft FY2004 Competition Project Kickoff Meeting. [Online] Available at http://www.atp.nist.gov/files/kickoff-092004.pdf [Accessed 3rd May 2014] Heizer, J and Render, B. (2006). Operations Management. 8th ed. Upper Saddle Rver, New Jersey: Pearson/Prentice Hall Project Management Institute (2008). A Guide to the Project Management Body of Knowledge (PMBOK Guide). 4th ed. USA: Project Management Institute Roberts, T (2009). Project Plans: 10 Essential Elements. [Online] http://www.projectsmart.co.uk/project-plans-10-essential-elements.html. [Accessed: 3rd May 2014] Schwalbe, K. (2009). Information Technology Project Management. 6th ed. USA: Cengage Learning. Wysocki, R.K. (2009). Effective Project Management: Traditional, Agile, Extreme. 5th Edition. USA: Wiley Publishing Inc. Appendix 1 – Work Breakdown Structure Figure 1 Gantt Chart – Kitchen Redesign Project ID Description of Activity Time (Days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A Create Design B Acquire and prep materials C Disconnect Utilities D Remove Equipment E Secure area and set up frames F Remove partitions and clear work area G Run electrical wires H Run telephone cable I Plumbing work J Mix concrete and render area K Relocate and add vent L Cover utility outlets and cords M Add details – carpentry and fittings N Mix paint O Paint area Critical events Milestone Flexible events Figure 2 Network Diagram - Kitchen Redesign Project Figure 3 Critical Path: A, B, E, F, G, I, J, K, M, N, O Organisation Structure – Kitchen Redesign Project Figure 4 Project Process Form Process: Painting  Date:   Project: Kitchen Redesign Materials Process Painters Plastic 1. Spread plastic on the floor Primmer 2. Prime the walls of the kitchen area. Mix paint and thinner Paint 3. Pour paint into mixing bucket Thinner 4. Add Thinner Paint brush 5. Paint walls Figure 5 Supplier Evaluation – Kitchen Redesign Project Name of Supplier Expected quality Score 1-10 Performance Contractor Good 8 High Design Good 9 High The contractor will provide all the materials necessary for the project Figure 6 Kick-off Meeting Agenda– Kitchen Redesign Project Date: Time: Venue: Project Management Team Project Manager: Name Phone Number Email address Architect: Name Phone Number Email address Contractor: Name Phone Number Email address Goals Meet all team members and establish communication Discuss key success factors – plans and objectives; milestones; business goals and objectives Discuss how the Kitchen Redesign Project fits with the goal of the organisation Background Reason for the project Scope of the project Establishing Expectations Project management and planning Change management Quality control procedures Closeout procedures Benefits of the Project Benefits for customers Benefits for users Benefits for all other stakeholders Establish Date for Start of Project/Next Meeting Figure 7 Source: Adapted from ATP 2004 Risk Management Matrix- Kitchen Redesign Project ID Threat/ opportunity (T/O) Title Probability Cost Schedule Performance Score (1-10) Quantifiable Risk Risk 1 T Insufficient funds L M M  H  6 Yes Risk 2 T Absence of team members L M M  H  5 Yes Risk 3 T Material shortage L VH H  H  9 Yes Risk 4 T Time overrun M M M  M  9 Yes Risk 5 O Reduce the hours spent on some activities L M M  M  7 Yes Table 1 Cost Budget – Kitchen Redesign Project Description Cost (£) Accumulated Cost/Running Balance (£) Architect - Creating Design 250 250 Contractor and materials 10,000 10,250 Other items of expenditure 2,500 12,750 Table 2 Net Present Value Analysis Year Cash Flow (£) PV Factor (7%) NPV 0 (13,000) 1 (13,000) 1 17,000 0.9346 15,888 Total 2,888 Table 3 Stakeholder Register Project Name: Kitchen Redesign Project   Stakeholder Designation Department Role in Project Type of Stakeholder Type of Communication Expectations Interest Influence on Project Outcome Organization Sponsor N/A Sponsor Internal Weekly Meeting High High High Restaurant Manager Restaurant Manager N/A Champion Internal Daily Meeting High High High Contractor   N/A Contractor External Daily Meeting Moderate Moderate Moderate Project Team Project team N/A Several Internal and External Daily Meeting High High High Customers Customers N/A   External Weekly Meeting Moderate Moderate Low Users Kitchen Staff     Internal Weekly Meeting High High Low Accountant Accountant Accounts Preparing budget and comparing budget with actual Internal Weekly Meeting Moderate High Moderate Table 4 List of Additional Resources – Kitchen Redesign Project Cement Sand Stones Nails Electrical wire, fittings and outlet Telephone cable Air conditioning materials – vents, etc Paint Thinner Wood for detailing the area Wall tiles Prefabricated arch Table 5 List of Activities – Kitchen Redesign Project Activity Description A Create design (to be done before the project work actually starts at the location) B Acquire and prepare materials (to be done off-site) C Disconnect utilities D Remove equipment E Secure area and set up frames F Remove partitions and clear work area G Run electrical wires H Run telephone wires I Plumbing work J Mix concrete and render K Relocate and add additional a/c vents L Cover utility cords M Add carpentry and other details N Mix paint O Paint area Table 6 Read More