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Anntas Ltd is an organization which provides inflatable toys to children toys retailers. These products include: beach balls, rubber boats, and an extensive range of swimming aids. Now the company is planning to expand its business, and it is planning to develop a new toy (non inflatable) for the retail industry. The following report outlines the activities which will be addressed to put the project into action.
It is estimated that the project will be finished in 48 days.
Net work diagram(Field &Keller, p.197, p.198. p391.)
List of activities :
Before the implementation of the project , a comprehensive market research will be conducted , in the research , the customers need and want will be analyzed. This includes the how customers feel about our current products, and how they expect us to expand our business. This market research will be conducted by our market research team and is expected to be done in 4 days.
After the market research is done, a business plan will be delivered to the Board of Directors. In the plan, issues concerning market strategy of our new products will be addressed. The plan will be written by A. it will take 5 days including the start of the plan to the approval of the Board of Directors.
B will spend 10days to design what kind of toys we are going to manufacture.
negotiating the use of the new land, 9 days will be spent , and B will be responsible for it.
B will also be responsible to apply for the building permits from the government agencies since our original site may not be enough to expand our business. 8 days will be spent since working the process is complex.
During this stage, B will hire a construction company and estimate the cost to construct the land we are going to use.6 days will be spent.
After the successful negotiation of the use of the land, C,D,E,F will go and sign contract to use the land representing our company. the whole process will cost 4 days
After we have got the building permit, G will go and apply for a bank loan. This will be done within one day.
H will work out an inventory plan. This procedure takes place after the business plan has been approved.
10 days will be spent on the construction and remodeling of the site and H will be supervising at the site.
After the design of product has been delivered, J and I will be dispatched to purchase the material needed to produce the new toys.
K will go to the patent office and confirm the new logo we are going to use for the new products. I day will be used.
advertising and marketing will cost two days and will be conducted by K
L and M will totally 6days to select and order supplies and machines which will be used to manufacture the new toys. New staff will also be hired.
When the equipment ordered is delivered, N will lead a group to have all the equipment installed. They will spend 8 days in doing me since it will be a huge project.
Fixtures will be ordered by O within 2 days.
P will go and check the outcome of the final project and one day will be needed.
Q will be responsible to hold an opening event.
The path in the middle is its critical path since its length is the longest. I choose it as the critical path because it is the major project of the whole expansion plan.
If the project starts on 11, January, 2010, it will probably be finished on 18th, March, 2010, and a minimum time of 48 will be used.
According to the diagram, the longest path is the one in the middle. So I choose to calculate the time needed for this path. The optimistic time used for activities which takes more than one day will be to, the most pessimistic time required is tp the most likely time tm is given in the diagram. Assume that to of D,E,H,G,F,J,O,Q,R is as the following: 9,8 ,1, 4, 6, 10 ,8,1,1, thus we can see that the optimal total time is 48 days.
a). a one day delay on activity P will not affect the duration of the whole project. As we can see, the path which P is in has abundant time.
b). N is again not in the critical path and its change will not affect the whole project.
c). I is in third path, it has 28 days of slack time and thus one day delay will not affect the whole project.
Field , M., Keller,L, S., and Keller , L., 2007, Project Management, Cengage Learning
This Project Feasibility Report for the proposed new depot for Touprom, a SME company located in Shire City, specializing in the renting of plant equipment (power tools, dump truck, cement mixers, vibrating plates, compressors) .This report documents the need for the proposed new depot, and outlines the activities required to manage the major project. The company has an opportunity to open another depot to store off-hire plant in Gondo City, 250 miles south to our existing depot. This new depot will include two huge storerooms and an office .
This new depot will provide us the opportunity to collocate with local construction companies in Gondo and enable us to take advantage of the efficiencies provided by the transportation infrastructure around this area. The recommended site is an ideal for the company.
Because the available site is currently owned by the local government, and the depot has been unoccupied, the land is available at a price substantially below local market rate. The site is a gateway location to the Town and is a development opportunity that will never present itself at such a low cost again.
The whole project is estimated to take about one year and the budget will be around £ 10 million.
Project management differs from management of other activities mainly because of its limited time and framework and a unique set of activities involved, which gives to a rise to a host of unique problems. (Stevenson, 2005, p.728). Concerning the life cycle of our project, concerns, stages , processes, leadership, administration and control problems will be discussed.
Current business analysis
The company has been enjoying a constant growth in business volume since 2000. This has generated the need to expand as we are seeing more opportunities being lost due to our impotence in stocking more plants.
Touprom provide plant for three kinds of clients:
"do it yourself " enthusiasts
Small building contractors
Large construction companies
See Appendix A
The company has two competitors in the current location(in the city of Shire).
Rentwell. It is also an SME in Shire. It has a depot of 60,000 square metres. it is the major competitor of Touprom. But it is not planning to open a new depot in Gondo.
Traviller. It a small plant renting company with only small business scales. It serves mainly individual customers.
The company currently occupies a depot in the city of Shire . the current is of 80,000 square metres and employs 15 staff. In the city of Gondo, the company has one office which is responsible for the business there.
It is estimated that a project team will be established from the personnel extracted from current staff. Also, ten more staff will be hired.
Statement of Project Need
The plant renting industry is a fastest growing industry. The existing depot is undersized as we keep ruing our business, more and more off-hire tools are cumulated and it is such a huge waste to get rid of them since most of them are in good condition. The opening of the new depot will allow the old depot to transfer some newer plant to the new site. The vast majority of business is generated in or near the area of our new depot site, while the demand from the area where the existing depot is located is falling. Findings in the 2007 market research showed that 90 percent of the business of with big construction company attributes to the Gondo area.
The population of the City of Gondo grew by almost 30 percent, from 10,126 to 13,121, between 2000 and 2009. The city estimated that population would increase 50 percent to a population of 15,000 by 2012. Such huge population growth require many new houses and apartment be built and thus provide us large business opportunities. Besides, there is no decent plant renting company in Gondo now since it is a newly developed city. All the plant needed in Gondo is rented from the three companies(including Touprom) in the city of Shire.
The objective of opening the new depots are:
Provide better accessibility to the customers in Gondo for our business.
Establish better reputation for our company
Expand our inventory and off-hire plant storage;
Create a warm and welcoming spirit within the company;
Create a great workplace environment in the new depot;
Ensure the safety and security ;
Demonstrate sustainability and environmental stewardship;
Maximize energy conservation;
Utilize natural light and ventilation;
Design for snow management, provide cover at parking areas;
The criteria to the opening of the new depot are listed below, in descending order in importance.
The maximum cost of the project is below 1000,000.
The cost of expansion must be covered in five years
The whole project should be finished within three months.
The new depot shall be designed to provide long-term value by balancing initial construction costs with projected life cycle operational costs. To maximize value and limit ownership costs, the standards require architects, engineers, and designers to develop building components and assemblies that function effectively for the target lifetime. These criteria provide the basis for planning and design solutions. Thus the new site should be energy saving(using natural lake), highly accessible to the customers(near the highway).
Estimated Project Cost
The estimated project cost to construct the recommended project is £ 10 million . This is based on a project of 100,000 square metres with 10 parking spaces, an office and two storerooms. Construction costs are estimated to be £7 million and include site grading, site drainage, lighting, landscaping, drives, office, plant tacks, and parking spaces. Construction costs include allowances for furniture, fixtures, and equipment and data, communications, and security. Construction costs are escalated to the start and midpoints of construction and carry a 5 percent contingency. Project costs are added to the construction costs and include fees for architectural and engineering design services, inspection, special consultants, geotechnical and land survey consultants, materials testing, project management, property appraisals, legal services, utility connections, and plan check fees for the state fire marshal and access compliance.
The detailed cost estimate is provided in Appendix B.
The Company need firstly to negotiations with the local government for land scale of 100,000 square metres. The initial estimates indicate that the land costs will be significantly lower than current market value. The company is scheduled to take ownership of the property in February, 2010. Once the site acquisition has been completed, the company will begin the implementation of the detailed project planning. Funding for site acquisition is required as soon as possible from the bank.
Preliminary project schedules have been developed assuming that funding is included in the 2010-2011 budget act and the site acquisition process is successful. Per the current schedule, the process for the government approval for the site acquisition will begin in March 2010 through April 2010, land acquisition will occur from March 2010 through May 2010, preliminary planning will occur concurrently from August June through July 2010, construction documents will be generated from August 2010 through September 2010, and construction will begin in October 2010 with completion scheduled for February 2011.
Key or required staff
In this project, a team aiming at putting the plan into practice will be established , including a project manager, which is me, and several other staffs.
During the execution of the report, efforts must be made to motivate and sustain people. It is natural that project members will count on me to solve all the problems and help removing all the obstacles. So as the project manager, I am required o be able to solve problems. In order to do so, I will: firstly: set a good example and be optimistic with the project; secondly , an environment of open communication must be created within the team in which members communicate and cooperate in an honest , straightforward and direct way. Thirdly, though work is important, members in the team are supposed to have fun, too. Parties will be thrown after the successful implementation of each stage of the project. Fourth, expectations of team members will be clearly defined. This will be put down on papers to avoid later problems. For example , if any problems occur, people who are responsible will not state that "it is not my responsibility. " fifth, toward my team members, I must be considerate and respectful. Team members should be granted with what they deserve.
Technical skills. Being the entire management of the project, any technical issues occurred in this project will be expected to be resolved by the project manager. On the other hand, team members are responsible for all the detailed technical problems that occur in the project, so all the team members should be professional in the industry.
Concerns such as financial return, market share, and public perceptions are all concerns which need to be taken into consideration. For example , whether the project will go within budget.
There are also concerns with workers, too. For example , the establishment off a project team may be a difficult thing since the company leader would not allow then to interrupt their regular job since it requires training new employees to do temporary jobs (Stevenson, 2005, p.734).
Basically there are four stages in a project life cycle, they are definition, planning , execution , and termination. (Stevenson, 2005, p. 734)
Definition: this stage consist two parts: concept and feasibility analysis. In this stage, the expected costs, benefits, and risks will be discussed.
Processes: this stage demonstrate the detail of the work and illustrate necessary human resources, time and cost.
Execution. During this stage, the project will be done. For example , the depot will be constructed, remodeled, and equipment will be installed.
Termination. In this stage, the new depot will be delivered, personnel will be reassigned , leftover materials, and equipment will be dealt with.
A process is "a series of actions bringing about a result."(Dictionary, 3rd ed.) It is usually defined by the project life cycle. For example, the negotiation of the use of the land can be considered ad one of the processes of the project.
Kotter (1990)distinguishes the importance of leadership in a project by defining its roles:
Establishing direction. Leadership is needed to outline a vision of future development of the companies even before the implementation of the project.
Aligning people. To achieve the vision set, communicating the vision by words is necessary. For example , team members will be told that the company will be able to enjoy a constant growth and become more competitive after the successful implementation of the project.
Motivating and inspiring. it is crucial that leadership exist in a team and keeps motivating as well as inspiring the team members.
Administration problems may occur during the lifecycle of the project. So formal and informal policies must be clearly stated including hiring and firing guidelines, employee performance reviews. (Baguley, 2003, p.85)
Controlling is very important in a project. So project performance must be monitored and measured regularly to identify variances from the plan. for example , during the project , it is very possible that significant variances will be observed such as a missed activity finish date. Once it is observed, adjustment to the whole project planning will be needed. Such problems will also cause overtime or tradeoff between budget and schedule objectives.
The project is expected to meet all our criteria. After examining the current financial situation of the companies, I strongly recommend that the project be put into practice as soon as possible. The city of Gondo is a whole new business arena for our company with little competition and huge opportunities. Management is very important in project since it provides guidance for the whole project. This feasibility report proposed a project of opening a new depot for Touprom, which provide the service of plant renting. It is estimated that within the proper management, the project will be carried out well.(word amount: 2,025)