Assignment

Mission/ Purpose

The mission being pursued is the establishment of a new coffee shop in Milwaukee. The purpose of initiating this project is to expand ACHs’ operations beyond Chicago. This project will serve as an opening step towards fulfilling Sam Ryder’s ambition of opening a coffee store in all states across America. The project is currently independent and does not make part of any larger project or program. Successful completion of this project is expected to boost sales by over $125, 000 in the next 3 years. This project is also expected to raise the company’s gross margins to 70%.

Description and Project Product

Identifying a gap in the market is the first step in starting or expanding a business. Entrepreneurship is the art of identifying the needs and wants of consumers in the market and providing a good or service to satisfy the demand. In this case, the Amazing Coffee Houses company is popular for its Gourmet coffee and low-fat doughnuts. Its unique products have attracted a large number of loyal customers. The economic environment in the country has been stable and good for business. For this reason, Amazing Coffee Houses has identified a potential market for its products in the Milwaukee region. Establishing operations in Milwaukee will not only bring in more revenue to the company but also be consistent with the ambition of expansion. This project will create a new operational shop in Milwaukee to promote the company’s goal of expanding beyond Chicago. The new shop to be established is expected to be capable of production and sale of coffee and low-fat doughnuts. These are the two main products supplied by ACHs company to its customers. The company has already acquired a 10-year lease by working with a real estate agent in the region. ACHs company has also purchased a building that will house the coffee shop being established.

This project involves the renovation of the purchased building. Some of the desired outcomes for this project include 2 bathrooms for the coffee shop, a coffee bar section, and tables that can effectively accommodate at least 50 customers. This work will be completed by contractors who will be engaged to perform duties such as painting and plumbing. The new shop will be strategically positioned since it is located just a few meters from the Gold Rock Museum. The project management team led by Jim Young will ensure that all the desired outcomes of the project are achieved on time. The project starts in January and will be completed by 3rd June to allow for further preparations on site. The time frame is consistent with the management's desire to have the shop operational starting from 4th July.

Objectives

It would be hardly impossible to plan and execute a project without a clear statement of goals and objectives to be met. Goals and objectives serve as the guiding principles in the process of executing a project. The overall goal of this project is to expand ACH’s operations beyond Chicago. However, there are several small objectives that are to be achieved in the process of executing this project. First, the project should be completed within the desired time-frame and within the allocated budget. Financial limitations may be a constraining factor. However, the project management team is responsible and committed to ensure that the project runs smoothly using the resources allocated. Other objectives for this project include; establishing a well-renovated coffee store in Milwaukee, ensuring the store has two classy bathrooms and designing the venue to accommodate at least 50 customers. All the designs and structures to be established must fit in the 5500-square feet space. Achieving these objectives in time will enable ACH to start operations in the new location by 4th July. The new location will boost total sales especially to the strategic location near a tourist attraction site. Sales are expected to increase by $125,000 in the long run, bringing the gross margins to 70%.

Business Need

Entrepreneurs are risk-takers who identify an opportunity and seize it before it’s too late. ACH company has been successful within Chicago. It is high time that the company considers an expansion project to establish operations outside Chicago. Furthermore, the company owners aspire to establish business operations across the nation in the future. Therefore, this project is a stepping stone towards achieving the owner’s vision of expansion. The project is viable; its cost-benefit analysis indicates that benefits outweigh costs. Some of the advantages of pursuing this project include; increased customer base, increased sales and revenues, expanded profit margins, and establishing a presence in new markets. This project will also enable the company owners to expand their management skills.

Milestones

Below are some of the key project milestones that will indicate the project is moving towards the desired direction.

a. Project scope management- 3 days; ends by 7/1/2019.

b. Finalizing contracts and procurement-2 days; ends by 9/1/2019

c. Stakeholder assessment and briefing-10/1/2019

d. Risk analysis and mitigation policy formulation-12/1/2019

e. Tear-down of the existing structures-3 weeks; ends 15/2/2019

f. Renovation activities; painting etc., 2 months; ends 28/4/2019

g. Project quality assessment and management- 1week; ends 8/5/2019

h. Project’s cost analysis and management- 4days; ends 15/5/2019

i. Project evaluation and assessment- 1 week; ends 20/5/2019

j. Unveiling/launch the newly renovated coffee shop-1 day; 5/6/2019

Budget

User Acceptance Criteria

The management and owners of the company will accept a project that falls within their financial capacity and is achievable within their desired timeframe. Assessment of all project stakeholders is essential to meet the minimum project requirements. Three parameters below will be used to assess project success.

a. Process success-evaluation of all processes and procedures undertaken.

b. Stakeholder’s success-evaluation of all stakeholders and their success in completing the project.

c. Expected outcome- evaluation of the achieved project objectives. Completion and launch of the new coffee store.

High-Level Project Assumptions

Some of the assumptions made in this project are stated below.

a. The project will be completed on time as anticipated.

b. The economy will remain stable for the entire year.

c. The local community will provide labor services.

d. Demand for coffee and doughnuts will be high in the region.

e. The majority of visitors at the museum are coffee consumers.

f. Competition is not very high in the region.

g. The project will not require capital injection for up to one year after completion.

High-Level Project Constraints

Some of the constraints in executing the project are as follows;

a. A short time-frame may affect the quality of the project.

b. The project management team is new to this kind of duty.

c. Financial constraints may limit the work to be done.

d. Legal regulations that must be met in the Milwaukee region.

e. Insufficient labor services in the region may affect the project.

f. Prevailing economic conditions may affect the costs associated with the project.

g. The contractual processes may take longer than anticipated.

h. Some materials required for the project are rare to find in Milwaukee.

Exclusions and Boundaries

Some of the items that are not relevant to be included in the project include;

0. Specific days that work shall be in progress.

0. Contractors’ relationship with subcontractors.

0. Occupational health and safety regulations at the premises.

0. Survey and architectural services before starting the project.

0. Renovation specification for the premises.

0. Minimal or maximum number of workers in the project.

0. Salaries for each person involved in the project.

Major Risks

Some of the risk factors associated with executing the project include;

a. A change in the project management team.

b. Lack of extra finances when need arises.

c. Poor communication among stakeholders.

d. Legal issues causing delays in project completion.

e. Accidents in the process of project execution.

f. A change of objectives and priorities by the company management.

g. Identification of tasks that had not been planned for in the project.

Work Breakdown Structure

Project: ACH’s Milwaukee WI Expansion Project

· 1.0 Project’s Scope Management

· 2.0 Structural work at the new premises

· 2.1 Teardown existing structures

· 2.2 Renovating the building

· 2.3 Installing necessary structures to suit a coffee shop business

· 3.0 Power connections

· 3.1 Remove existing power cables

· 3.1.1 Install new power cables and appliances

· 3.1.2 Install power sockets and switches for computers

· 3.2 Install decorative wiring and lighting circuits

· 3.3 Test the power systems installed.

· 4.0 Painting the renovated shop.

· 5.0 Furnishing the shop.

· 6.0 Running checks and fixing errors

· 6.1 Handing over to management. (Launch)

KEY STAKEHOLDERS

Project Core Team

a. Developing the project plan and proposal.

b. Engaging project sponsors and company management.

c. Documentation of all documents generated for the project.

d. Conducting project evaluation and assessment.

e. Supervising the project until its completion.

f. Coordinating contractors and involved in the project.

g. Facilitating resource allocation for the project.

Subject Matter Experts (SMEs)

a. Interior design experts will be required to assist in furnishing the new shop.

b. IT experts will be required to install the latest software that is consistent with the digital era of sales and marketing.

c. Financial experts would be very beneficial to the project. Their expertise could be applied to reduce the project’s cost.