Mia WK6

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Risk Management Plan for Starbucks

Risk Management Plan for Starbucks

PM 584 Project Risk Management

Maria Duplantier

Leon Baudot

September 4, 2017

Table of Contents

Introduction…………………………………………………………………………………...

Project Scope Statement …………………………………………………………………..…..

Risk Management Plan………………………………………………………………………..

Conclusion…………………………………………………………………………………..…

References ………………………………………………………………………..………..…..

Introduction

The cafe is a place to eat to gather with colleagues while forgetting all the problems that exist. Excellent products from the cafe are coffee and tea. But the cafe also sells food as well as bread, cakes, and others. The cafe stands in the 16th century in Constantinople, the capital of the Ottoman Empire, Turkey. In the 17th century, the cafe had spread to Europe. In the 19th century until the 20th cafe functions increasingly widespread. In addition to serving a selection of coffees, there are snacks such as sandwiches, cakes and pastries. Even in America itself, many cafes have a food menu suitable to meet the taste of the tongue of people who do not feel full when just eating coffee and bread.

In this paper, I talked about Starbucks Coffee. Starbucks Coffee was founded in 1971 in the United States. We can find Starbucks in malls, airports, culinary districts, tourism districts even we can meet in the hospital. Until now, the number of Starbucks Coffee stores worldwide has reached over 20,300. Of these more than 11,600 stores are in the United States, the rest are spread all over the world. In addition to excellent coffee, Starbucks also provides drinks such as premium tea bags, bread, pastries, cakes, sandwiches, even selling coffee and tea-related merchandises. Comment by Grandkids: This is academic and the paper is for executive management, project sponsor and project manager

Project Scope Statement

Starbucks is known for its global coffee products and has the same coffee taste in every American outlet, basically Starbucks emphasizes the taste of coffee they make should be the same for every customer in every booth that opened it therefore they have the same standard of every coffee they sell because their coffee must have gone through the Fair Trade process and organic selection (name of the coffee, the taste and the place to grab the same raw material). In addition to selling Starbucks coffee also sells food as a friend while drinking coffee. But for food in every store Starbuck has different food variants of raw materials that are used in every outlet is different too, but the recipe and it must meet the standards in every outlet in America to ensure that the food has a satisfactory taste in the tongue lovers.

This report details the project plan to open a new Starbucks, bring together the things to watch for and the activities to be done in order to successfully open a new Starbucks. all risk identification strategically planned. To ensure that the project is completed within the time, energy and cost in a highly structured and detailed manner that which project is expected to run and finish according to the targeted date. This and the previous section should all be one and under “Introduction” as that is how they read, with just a sprinkle of background

Project Objective and Justification

Starbucks has used system marketing well and maximally, they use this system in accordance with the vision and mission they created before and with it Starbucks has achieved a very significant growth in every year that is the growth of Starbucks outlets in the world. Therefore, this marketing method has been implemented by Starbucks and the method is the key to the success of this coffee shop. I do not understand this paragraph it is very confusing ass I do not understand what you are alluding too.

To opening of 10 new Starbucks in the next twelve (12) months in three states, Arizona, Ohio and Florida, with planned scheduled openings for the first quarter are 2 in Miami and 1 Ohio, second quarter 1 Phoenix, 2 Flagstaff Arizona, third quarter 2 Tampa Florida and fourth quarter 1 Tempe Arizona and 1 Tucson Arizona.

The projects include site selection to grand opening with an estimated budget of $500,000.00 to $600,000.00 per location with a timeline of 4 months to grand opening within each designated quarter. Just a restatement of what was given

Project Deliverables

All electric heater and air conditioning work will be completed. This includes having a 90-minute power backup. And backup generator that will last for 10 hours or more. There will be three sink compartments, hand basins, bathroom, bathroom fixtures, and sound system. Appliances include coffee makers, soda machines, bulk peanut rollers, cleaning supplies, espresso machines, coffee grinders, computers, cappuccino machines, refrigerators, freezers, counter ice makers, sandwich preparation stations, markers, microwaves, dishwashers, plates, commercial blenders, high speed oven, cakes, crock pots, silverware, and tea brewer. Comment by Grandkids: ???

Starbucks will be convenient for its customers. Decorative items will include chairs, lamps, curtains, clocks, bins, coffee mugs, cabinets, bookcases, tables for 50 people, rugs, paintings, sofas, granite tables, display cabinets and shelves for storing supplies and stage for live music performances. Will add to customer convenience

Starbucks items also include legal services, liability insurance, workers compensation, maintenance agreements, food permits, residential certificates, and license permits.

This is like a series of bullet points but in paragraph format as it has no details

Milestones

First Quarter: Jan-Mar (2018) at Miami and Ohio

· Prepare for full finance - January 1

· Project Approval – January 12

· Contact the utility and prepare for the date of the requirement - January 15

· Permission / license - January 25

· Determine which supplier / contractor to use - February 3

· Complete installation of all equipment - February 16

· POS installation complete - February 27

· Install furniture - March 5

· Work is done – March 20

· Grand Opening – March 30

Second Quarter: Apr-Jun (2018) at Phoenix and Flagstaff Arizona

· Prepare for full finance - April 1

· Project Approval – April 12

· Contact the utility and prepare for the date of the requirement – April 15

· Permission / license - April 25

· Determine which supplier / contractor to use - May 3

· Complete installation of all equipment - May16

· POS installation complete - May 27

· Install furniture - June 5

· Work is done – June 20

· Grand Opening – June 30

Third Quarter: Jul-Sep (2018) at Tampa Florida

· Prepare for full finance - July 1

· Project Approval – July 12

· Contact the utility and prepare for the date of the requirement – July 15

· Permission / license - July 25

· Determine which supplier / contractor to use - August 3

· Complete installation of all equipment - August 16

· POS installation complete - August 27

· Install furniture - September 5

· Work is done – September 20

· Grand Opening – September 30

Fourth Quarter = Oct-Des (2018) at Tempe Arizona and Tucson Arizona

· Prepare for full finance - October 1

· Project Approval – October 12

· Contact the utility and prepare for the date of the requirement – October 15

· Permission / license - October 25

· Determine which supplier / contractor to use - November 3

· Complete installation of all equipment - November 16

· POS installation complete - November 27

· Install furniture - December 5

· Work is done – December 20

· Grand Opening – December 30

Good right on target

Quality Requirements

· Starbucks must comply with local regulations for commercial firms, fire safety regulations

· All electrical and AC equipment used must pass LEED 40 certification

· Cables used for cabling should have a thickness of more than 30 cm

· The painting used must be of excellent quality, certified by its judgment

· Large size freezer with a capacity of more than 400 liters

· Shelves must have the capacity to store more than 60 large boxes

· Glow marks should be made of high quality plastic with a thickness of more than 0.6 inches

These need details/explanation

Technical requirements

· Starbucks must comply with all applicable laws and regulations Comment by Grandkids: This si not technical

· There should be a 5-year warranty with the same day or the next business day for all equipment

· Cables, air conditioners must be certified for safety and quality

· The coffee maker should have a capacity of making 1000 copies a day

· The menu should be printed on thick paper that has GSM of more than 200

Assumption and Limitation

· in the budget, any other expenses are not included in the calculation

· project will run in accordance with the plan given by the owner

· The contractor is permitted to subcontract the work as required, but is solely responsible for it

· Contracting and preparing staff is not inside the extent of the undertaking

· The guarantee applies only to furniture

Risk Management Plan

Management of risk in the project includes measures to understand and identify potential problems that may occur, evaluate, monitor and manage risk.

Risk management increases the likelihood of success, reduces the likelihood of failure and uncertainty in leading the overall goals of the organization.

Risk Score = Probability x Impact

Evaluation of Risk

Event (Risk)	Probability	Cost	Schedule	Scope	Quality	Risk Score
Contractor completed project Not according to plan	30%	4	4	3	4	4.5
Awaiting Local Authority approvals for licenses exceeded time frame	30%	5	5	2	2	4.2

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Risk Management Plan Starbucks

9

Risk Management Plan Starbucks

	Test failures on coffee machine and
	Other applications.	25%	3	5	4	4	4.0
	Delivery wrong furniture. Failure to
	follow specifications	25%	4	4	4	4	4.0
	Business contracts delay in signing	25%	3	5	5	2	3.8
	Installation Issues, Cabling and
	Wiring Installation	25%	3	4	3	3	3.3
	Lease agreement issues in
	Signature. Not available	25%	3	5	2	1	2.8
	Late arrivals on ordered materials	20%	4	4	1	1	2.0
	Menus & Marketing material
	printing delays	10%	3	4	3	2	1.2

Identify risks, ratings, risk responses, contingency plans if risks arise, trigger risks and people who are responsible. The goal is that the project goes according to plan so below is a table for the risk response matrix:

Matrix of Risk Response

Event (Risk)	Risk	Contingency Plan	Trigger (Risk)	Responsible
	Response	Or Backup plan		(Person)
Contractor completed project	Eliminate	the draft of employment	At confirmation	Painting Services
Not according to plan		contract within the	of contract	Contractor,
		specified time period and		Wiring and
		the fine if not completed as		Plumbing
		planned contract with time		Contractor
		.
Awaiting Local Authority approvals for licenses exceeded time frame	Mitigate	Mirror other business. Plan in advance. Reschedule if delay cause Major impact.	If there are more than one week in delay	Project Manager

Test failures on	Share	Early testing is advised	Document	Project Manager
coffee machine		upon the arrival	delivery of
and		of new equipment,	equipment,
other		purchase	equipment
applications		Warranty. If needed	failure
		Order replacement
Delivery wrong	Transfer	Establish an inspection	Carpenter	Carpenter
Furniture.		area to ensure	submit design
Failure to follow		design as per
specifications		specifications
		requirements
Business	Mitigate	Follow up and give	More than on	Project Manager
contracts delay		documentation for	week in delay
in signing		specific	after
		Deadlines for approval.	signing
		Schedule meeting for	business
		Delay issues.	contract
Installation	Share	Early inspection with	Signing up	Plumbing and
Issues, Cabling		Wiring Contractor to	rental and	Wiring Contractor
and Wiring		detect any existing	lease
Installation		problems	agreement
		and to act appropriately

	Lease	Mitigate	Contact landlord from	Contract	Project Manager
	agreement		one week prior to	approval for
	issues in		deadline	business
	sign off		to review and finalize
	Signature. Not		agreement
	available		and ensure that everything is done on time

	Late arrivals on	Mitigate	Order early. Request	At time of	Project Manager
	order materials		confirmation on order	ordering the
			delivery time frame	material
	Menus and	Eliminate	Top priority for	Signing of	Marketing
	Marketing		Marketing Executive and	business	Executive
	material		to	contract
	printing delay		ensure completion track	and once
			progress weekly	marketing
				activities starts

You identified risk so what are the processes you are going to implement for risk management and reporting? “Risk Identification and reporting process”

Conclusion

Risk Management is part of the process of implementing a project, especially the enterprise scale which is very important but often ignored. Stages of Risk Management implementation include risk collection in Risk Identification, risk analysis in Risk Assessment, developing anticipation scenario in Risk Response Development, documenting all process into Risk Management Plan, to execute RMP in Risk Response Development is a continuous process in execution of a project with the ultimate goal to succeed the project.

Based on the analysis of all risk identification above, it can be stated that the risk of this project can be controlled

Where are the Quality requirements and constraints for the project?

Good effort, but please see comments as you are missing some of the requirements, off the mark on another, lacking details and have some confusing portions as noted. (-4 organization, - 15 content) 81/100

References

Cloete, K. (2009). Risk Management Plan.

Stephenson, G. R. (2001). Risk Management Plan (No. DOE/NV--781). Bechtel Nevada Corporation (US).