Project Management - Midterm Assignment - Group 2 PDF

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FOREIGN TRADE UNIVERSITYHO CHI MINH CITY CAMPUS----- -----PROJECT MANAGEMENT REPORTLecturer: Le Tuan BachPROJECT: DEVELOP ECO-FRIENDLY TAKE-AWAYMATERIALS FOR COFFEE SHOPBy Group 2Nguy n Th Quỳnh Anh – 1801015113ễ ị Nguy n Vũ Ph ng Anh – 1801015118ễ ươ Châu Ánh D ng – 1801015216ươ Nguy n Ng c Huỳn...

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FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS ----- -----

PROJECT MANAGEMENT REPORT Lecturer: Le Tuan Bach PROJECT: DEVELOP ECO-FRIENDLY TAKE-AWAY MATERIALS FOR COFFEE SHOP By Group 2 Nguyễn Thị Quỳnh Anh – 1801015113 Nguyễn Vũ Phương Anh – 1801015118 Châu Ánh Dương – 1801015216 Nguyễn Ngọc Huỳnh – 1801015358 Nguyễn Huệ Khanh – 1801015371 Nguyễn Thị Bảo Ngọc – 1801015562 Phạm Minh Uyên - 1801016010

Ho Chi Minh City, October 2020

Contents 1

Overview............................................................................................................... 1

2

The process of project selection...........................................................................2

3

The statement of work (SOW)............................................................................. 5 3.1

Description and Scope.....................................................................................5

3.2

Approach......................................................................................................... 6

3.3

Resource Requirements...................................................................................7

3.4

Risk Management............................................................................................7

3.5

Acceptance Criteria.......................................................................................12

3.6

Estimated time and cost.................................................................................12

4

Work Breakdown Structure (WBS)..................................................................12

5

Project Scheduling.............................................................................................. 13

6

Cost estimation and budgeting.......................................................................... 16

7

Organiztional Breakdown Struture.................................................................. 18 7.1

OBS............................................................................................................... 18

7.2

Responsibility Assignment Matrix (RAM)....................................................19

8

Time-Phased Budget..........................................................................................20

9

Implementation Strategy...................................................................................21 9.1

Introduction...................................................................................................21

9.2

Management Overview..................................................................................22

9.3

Major tasks....................................................................................................23

9.4

Security and Privacy......................................................................................25

9.5

Implementation Support................................................................................26

9.6

Documentation...............................................................................................27

9.7

Performance Monitoring................................................................................27

10

Earned Value Management (EVM)...............................................................28

Project Management

1

Group 2

Overview a. Background information

Business name: Ayi Coffee Shop Ayi is one coffee shop located in District 3, HCM, offers both drinking at shop and takeaways. Ayi was established in 2019 by a young business man called Linh Le. Ayi Coffee serves high-quality coffee to office workers, business people who work nearby and young people. We will sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as well as to eat in, with an indoor seating area with space for 25 customers. While there are other coffee shops in the area, we believe that there is demand for more—especially ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we believe will differentiate us from other coffee shops in the area. We are on a busy street and expect to get custom from passersby during the day. Going forward, Ayi Coffee will look to build customer loyalty within the area. We will keep a core offering but regularly rotate specials to continue generating interest within our customer base. b. Problem Statement The coffee shop was complained and criticized by customers for using singleuse-plastic cups with straw for takeaway coffee which may have a negative impact on the environment. Therefore, the shop is in need to develop another form of more eco-friendly takeaways for customers who don't bring their own personal cups. Our solution: Instead of using single-use plastic cups, customers deposit 50,000 VND to borrow cups. After using it, users can bring the cup to any store in the system and get back the original 50,000 VND. The coffee shop will need to collect the reusable cups from customers and wash them to hand over to the next customers.

1

Project Management

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c. Description of major elements (deliverables) of the completed project 1. A software system that manages the customer's receipt and collection of reusable cups. 2. Many shops jointly implement the model for the convenience of borrowing and returning reusable cups. 3. Reusable cups and straws. 4. Marketing campaign to promote the model and re-position the brand to an eco-friendly position. d. Expected benefits 

Increase customer awareness of reducing single-use plastic and using more non-plastic materials in drinking.



Position the coffee shop brand to environmentally friendly without greenwash.



Restore the brand image in the direction to sustainability and zero waste development in society.

2

The process of project selection The report was containing the results of a project screening conducted by two

independent groups within the new product development department. After several weeks of analysis, it appeared that two top contenders had emerged as the optimal new project opportunities. One project, code-named “Exchanged take-away cup”, applied “reuse”method to protect the environment: Instead of using a plastic cup once and then throwing it away, customers can deposit 50,000 VND to borrow the cup of the coffee shop; they’re allowed to return the cup to any stores in the coffee shop’s system and get back 50,000 VND afterwards. (material used is non-disposable plastic). The other project idea, “Paper cup”, encourages customers to use take-away paper cups with a higher price when paying for a coffee cup. The report’s aim is to prepare an evaluation of both projects in order to decide which one should be supported. Because of budget restrictions, there was no way that both projects could be funded. The first evaluation team used a scoring model, based on the key strategic categories, to evaluate the two projects. The categories they employed were: (1) 2

Project Management

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strategic fit, (2) profitability of technical success, (3) financial risk, (4) potential profit, (5) strategic leverage (ability of the project to employ and enhance company resources and technical capabilities), (6) safety, (7) competitive advantage. using these categories, the team evaluated the two projects as shown here. Scores were based on: 1=low, 2=medium, and 3=high.

Project “Exchanged take-away cup” Category

Importance

Score

Weighted Score

1. Strategic fit 2. Profitability of technical success

3 2

3 2

9 4

3. Financial risk

2

2

4

4. Potential Profit 5. Strategic leverage

3 1

3 2

9 2

6. Safety

3

3

9

7. Competitive advantage

1

2

2

Score

39

Importance

Score

Weighted Score

1. Strategic fit

3

2

6

2. Profitability of technical success

2

2

4

3. Financial risk 4. Potential Profit

2 3

1 3

2 9

5. Strategic leverage

1

1

1

6. Safety 7.Competitive advantage

3 2

2 2

6 4

Score

32

Project “Paper cup” Category

The result obtained by this first team suggested that Project “Exchanged takeaway cup” would be the best choice for the next new project. The second team of evaluators presented an NPV analysis of the two projects. In that analysis, the evaluators assumed a required rate of return of 15% and an 3

Project Management

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anticipated inflation rate of 3% over the life of the project. The findings of this team were as follows:

Project “Exchanged take-away cup” Unit: VND Initial investment Anticipated stream of future cash flows:

100.000.000 Inflow

Outflow

Net flow

Discount

NPV

Factor

-

-

100000000 100000000 1

100000000

Year 1 Year 2

20000000 30000000

20000000 0,847 30000000 0,7181

16940000 21543000

Year 3

50000000

50000000 0,608

30400000

Year 4

80000000

80000000 0,5157

41256000

Year 5 Calculated NPV

120000000

120000000 0,437

52440000 62.579.000

Project “Paper cup” Unit: VND Initial investment 50.000.000 Anticipated stream of Discount Inflow Outflow Net flow future cash flows: Factor -

NPV -

Year 1

50000000 50000000 1 10000000 10000000 0,847

50000000 8470000

Year 2

25000000

25000000 0,7181

17952500

Year 3

30000000

30000000 0,608

18240000

Year 4 Year 5

40000000 60000000

40000000 0,5157 60000000 0,437

20628000 26220000

Calculated NPV

41510500

Thus, according to this analysis, Project “Exchanged take-away cup” would be the project of choice. 4

Project Management

3

Group 2

The statement of work (SOW) 3.1 Description and Scope - The coffee shop was complainted and criticized by customer for using one-time-plastic cup with straw for takeaway coffee

a.Summary of work

which may have a negative impact on the environment.

requested

- The shop needs to devise a way to reduce one-time-plastic materials and replace them with more sustainable ones. - The coffee shop located in District 3, HCM, offer both drinking at shop and takeaways.

b.Background

- Arabica coffee is the specialty. - Sustainable cups, straws, spoons, lids with afforable cost for business and customers. c.Description of major

- Effective systems to control the exchanging cups activities of

elements (deliverables) of

customers for operating the models.

the completed project

- Attractive Marketing's campaigns to get customer's attention, brand impression and increase the number of people recognize new materials. -Increase customer awareness of reducing plastic and using more non-plastic materials in drinking. -Position the coffee shop brand to environmentally friendly

d.Expected benefits

without greenwash. -Restore the brand image in the direction to sustanability and zero waste development in society.

e.Priorities assigned to each element in the project

Sustainable materials with operating systems.

3.2 Approach a.Major milestone/ key events anticipated

Milestone 1. Develop software to control reusable cup system and redesign cup 2. Find material suppliers 5

Expected date 3/8/2020 23/8/2020

Project Management

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3.Implement software on partner shop 4. Marketing campaign 5. Tranning program on using new system 6. Review on system and reaction a. Critical path method b.Special standards or methodologies to be observed

15/9/2020 1/9/2020 7/9/2020 15/11/2020

b. Critical chain project management c. Agile Project management d. New product introduction, communication with stakeholders e. Feedback online f. Feedback directly on store

c. Plans for status report updates

Monthly, to see the effectiveness of the project

3.3 Resource Requirements a. Reusable Material for cups and straw: inox cup and straw, glass cup b. Marketing Materials: posters, flyers, envelopes, vouchers,... c. Software: technical and specialized coding software for each customer having a self-code, computer applications d. Redesign the layout, cup and stores e. Hardware: online transaction f. Servive: home service collecting cup and straw 3.4 Risk Management a. Risk management objective The purpose of the Risk Management Plan is to identify the risks for the “Develop environmentally-friendly take-away materials for coffee shop” campaign, and develop strategies to mitigate avoid the issues that are outlined. b. Risk approach The approach for the campaign included speaking to the stakeholders (interviewing) based on their first location launch, brainstorming, and discussing, staff to determine the top risks that must be accounted for when completing the project 6

Project Management

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plan. All risks were outlined and identified, a countermeasure was determined for each risk. Every effort will be made by the staff to ensure that the required steps are taken to mitigate the risks, should they arise. Since all of the risks were determined to take place on the day of the campaign, all staff has been briefed on the approaches to take, and that they should be done in a timely manner. The Project manager will be on site, all staff will report to them and the information will be conveyed to the Stakeholders. c. Risk Breakdown Structure 1. External: 1.1 Client expectation 1.2 Competitors 1.3 Environment 2.Internal: 2.1 Technical 2.1.1 Performance 2.2 Organizational 2.2.1 Funding safety 2.2.2 Skilled resources

Project Management

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d. Qualitative Risk Analysis Probability and impact matrix Probability

Threats

0.9 0.7

2.1.1

0.3

2.2.2

2.2.1

0.2

0.4

0.1 0.05

0.1

0.8

e. Identified Risks ID

Description

Grand

Mitigation actions

Responsible

Value

staff

(triệu đồng)

Expand the search for more

Project

new supplier for new

manufacturers, negotiate a more

manager

material

optimal price with large and

2.1.1 - Sourcing from a cups

C

and

straws can increase

periodic

orders.

costs.

usage process, applying supply

- Cost of installation

chain management technology

and training of staff

for all stages.

30

Optimizing

to operate the new system. 2.2.1 The mobilization of

B

Always monitor the progress of 8

Project

N/A

Project Management

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of

activities, prepare contingency

money in a short

plans and evaluate replacement

period

time

when the operation has a big

outside the estimate

difference compared to project

can

baseline.

large

amounts of reduce

the

director

reserve fund, if not able to turn around capital in time, it will affect the operations in the future. 2.2.2 Using

the

new

A

Implement retraining plans or

system has a direct

hire

more

skilled

human

impact on existing

resources. Always monitor and

resources. It may be

Allocate

the lack of staff in

resources when the project is

the operation of the

underway.

reasonable

Project

50

manager

human

new system but the excess of old staff lacking

skills

or

training. 1.1

Health problems infectious

diseases

B

Ensuring

the

process

of

cleaning cups before and after

when sharing cups

lending, how to display and

Customers will feel

promote

annoyed, each time

customers peace of mind when

they borrow a cup to

using the same cup with others

take away, they incur an extra fee

9

images

to

give

20

Project Management

1.2

Many

cafes

Group 2

have

A

on

par

with

similar campaigns

competitors but can provide

Competitors

with

better service with more value

potential

such as more durable and eco-

stronger

could invest in better

friendly

glass

borrowing time, easy and quick

or

cheaper

It

is

quality,

increased

still

limited

C

Emphasis on the long-term

because loan cups

positive

are plastic, money to

environment, so it’s worth to

invest

trade-off

in

influence

on

environmentally friendly cups is more expensive and cannot be applied

RECOMMENDED ACTIONS FOR GRADES OF RISKS GRADE

RISK MITIGATION ACTIONS

A

Mitigation actions, to reduce the likelihood and seriousness, to be identified and implemented as soon as the project commences as a priority

B

Mitigation actions, to reduce the likelihood and seriousness, to be identified and appropriate actions implemented during project execution

C

Mitigation actions, to reduce the likelihood and seriousn...