Concept behind opening a coffee shop - Coffee shop has become an important aspect in America since Starbucks came out 23 years back. Every day, millions of Americans stop at a coffee shop for an espresso-based coffee drink. People who would not have dreamed of spending more than 50 cents for a cup of coffee a few years ago, now gladly pay $3 to $5 for their cappuccino, mocha latte or vanilla ice blended drink.

During the same year, there was a sitcom show that was introduced called “FRIENDS”. The show comprised of 3 couples that used to hang out at the coffee house talking to each other, spending a lot of time at the coffee house. Dealing with their day-to-day problems. That show brought a lot of cultural impact on the people and it became a routine and some kind of personal importance to spend time or start your day at the coffee house.

The coffee business is currently growing at very healthy pace. As the years, have passed, there has not been a single year where the recession has hit the business, and coffee sales have not grown. In many years, the increase has been in double digits. Plus, no coffeehouse chains have failed during this time.

Starbucks, The Coffee Bean, Peet's and other coffee chains serve average quality drinks that have the same generic design appearance. Indeed, Starbucks and The Coffee Bean are often referred to as "fast food" coffeehouses due to their "cookie cutter" design. Now that Americans' coffee preferences have broadened and matured, many are asking for more from this coffeehouse.

A slot exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere. Café Central Perk meets this need and will fill this slot. We would offer high-quality products in an upscale environment. Furthermore, our high-profile location in Blue Ash, Cincinnati provides a mixed customer base that will maintain high levels of business in every season, at all times of the day, every day of the week. Estimated schedule will depend on financial arrangement. Although, I feel 6 months should be good amount of time to get going with the coffee business.

Founders

The coffee business will be a privately-owned corporation. Amit Shilotri, M.D of Café Central Perk, has a long career as an entrepreneur and Financial advisor. He is currently the founder of Forex financial banking firm in Australia. Minesh Shilotri, M.D of Café Central Perk and a highly successful real estate broker. As a highly successful real estate broker and investor he brings several key capabilities to the business, not the least of which is his ability to procure highly desirable locations for future business. Soumitra Shilotri, M.D of Café Central Perk, has a long-established career in Marketing.

Financials

The business anticipates rapid recognition to the coffee business concept in Blue Ash, Cincinnati with revenues of $500,000+ in the first fiscal year, rising to more than $900,000+ in year three. Net profit is projected to be approximately $90,000 in year one, growing to an estimated $250,000 by year three.

Introduction

Description of Project

Few key things to implement this project, as a success would be –

1. Superior quality coffee beans

2. Quality store with storing capacity

3. A relaxing ambience with an upscale interior design

4. Prime location with an easy access to pedestrian and car traffic, all year-round tourist activity, more student population and a concentration of local corporate businesses

5. Aggressive marketing

6. Trained and friendly staff

7. Multiple revenue options including gift items, gift baskets and coffee gift card addition to coffee, pastry, chocolates, tea, juice, water and soft drinks

Success measured for business

After carefully looking and tracking the performance of the Starbucks store near Blue Ash, Cincinnati through a comprehensive and highly precise point-of-sale (POS) system, we have decided to use this as a "blueprint" for expansion. For example, sales will be tracked and analyzed by item periodically, as well as time period and cost of goods. Pre-requisite for labor will be matched to projected in-store sales based upon prior performance for maximum efficiency. Even after paying higher than average wages, we expect to allocate no more than 20% to labor costs.

Team Structure

Team will comprise of Managing Directors, Accountants, Legal, Marketing, Finance, Purchase, Supply Chain, Graphic Designers, Architects and Team of experienced workers. Amount of people required for this role is still to be calculated and will again depend on financial arrangement.

Project Purpose or Justification

Café Central Perk will be serving the finest coffee in the Blue Ash locality. There are more than 50,000 coffee shops in the U.S and the number is growing every year. Drinking coffee has become a staple drink for Americans. Americans cannot start their day without sipping a coffee. I am sure most of the people have noticed that if you start a conversation of coffee with an American, and you will realize that they are so obsessed with the idea of brewing their own coffee. If we look at Starbucks as an example, there are more than 24,000 stores worldwide with a sales/revenue income of 19.15 B per 2015 data. What, I am trying to say is, coffee business has been growing every year. Despite of recession, sales for the coffee business have been ever increasing. For your business to be successful, there is no one secret to a successful coffee shop; in fact, most secrets in business boil down to either hard work, extensive experience, or luck or a combination of all three.

Blue Ash, Cincinnati is a perfect launch market. There are number of reasons for justifying that the location is arguably one of the best locations for coffee house.

· The highly affluent local population

· Year-round tourist activity

· Ever-changing upscale student population

· Regular Corporate sector population

· Excellent auto and pedestrian traffic by our location

· High number of local special events

· Prime site location

Objectives

There was time in America, when Cadillac was considered as the quality automobile. Then came Mercedes Benz, BMW and then came Lexus, with its superb product and service approach and took over the sales from the German automobile giants. Café Central Perk will be the first Lexus of the coffee house chain industry offering an exceptional product and superior services towards their customer.

The objective behind successful venture for coffee business will depend mainly on following aspects –

1. Consistently serving the finest espresso

2. Ergonomics is vital

3. Use loyalty cards

4. Promote multiple sales

5. Merchandise your margins

6. Get your strategies right

7. Provide the best service

8. Understand business needs

9. Always have a target takeaway

10. Serve on the front line

Primary Business Objectives

Reference No.	Business Objective Description	Specific Goal
01	Control Expenses	Reduce cost of purchase for coffee roasting by at least 10% in year three
02	Strengthen market relationships	Vendors
03	Marketing	Local Media, Direct mail, Websites, Print media
04	Design	Theme coffee shop
05	Public Relations	Local Publicity programs
06	Sampling	Provide free coffee samples
07	Competitive Menu	Multi-cultural Menu
08	Target take away	Achieve net profit of $90,000 in year one

Project Objectives (Primary Project Deliverables)

Business Objective Ref. No.	Project Objective Ref. No.	Project Objective / Primary Deliverable Description
01	1	Avoid sales from middle vendor and approach the main supplier for business venture
02	2	Have different vendor for different products such as Coffee, Tea, Pastries, Water, Soft drinks, Chocolates
M03	3	Adds in local papers, Radio channels, Magazines, Business week, Forbes, Direct mail through USPS, having a website that will be fully e-commerce personal
04	4	Establish a Friends type of theme coffee shop to attract tourists, students and business people
05	5	Local market awareness in a 5-mile radius of the store
06	6	Will engage in several sampling activities to introduce potential customers.
06	7	Discount coupons will be distributed on the street, via direct mail and at special events
07	8	Multi-cultural drinks will be served as part of tea and coffee
08	9	Net profit is projected to be approximately $90,000 in year one, growing to an estimated $250,000 by year three.

Benefits

Project Success Criteria (Chapter 1)

High Level Requirements (Chapter 5)

Objective Ref. No.	Requirement Ref. No.	Requirement Description
1	1.01	Connections with outside vendors
1	1.02	Networking with vendors during business meetings
1	1.03	Introduce yourself personally and show enthusiasm
1	1.04	Try to be flexible on rates initially until you build their trust and your own business
2	2.01	Coffee roasting is provided by Blue Bottle coffee company, San Francisco, CA and Coava Coffee Roasters coffee company, Portland, Or
2	2.02	Tea will be supplied primarily by Chai Direct company, Indianapolis, IN
2	2.03	Water and soft drinks will be supplied by Castle Rock Water company Inc., CA
2	2.04	Pastries will be supplied by local bakery shops D’Angelo’s and Cheesecake factory.
2	2.05	Chocolates and cocoa will be from Ghirardelli chocolate company, Chicago
3	3.01	National awareness through local radio channels, magazines, local newspaper, advertisement generated though USPS mails will help drive the expansion by generating opportunities created by the media buzz and familiarizing people with the brand name. It will help set the stage for future brand identification.
4	4.01	The interior design of Café Central Perk is unlike any other coffeehouse chain. It will be a themed coffee shop from the TV sitcom Friends which will attract university students or youth crowd. We will also have a separate sitting on the second floor with our upscale stylized Italian design, featuring stained glass decorations, art glasswork, differentiates us from all others. A sitting area that will be used for business purposes.
4	4.02	The coffee shop will also have an outside sitting area.
5	5.01	Community involvement
5	5.02	Will make us an integral part of the local community. This will generate goodwill for business
5	5.03	Supply complementary product to local charities for fund-raising activities
5	5.04	Sponsor local sports teams
6	6.01	Samples will be distributed at the coffeehouse
6	6.01	Samples will be given to by-passers on the street
6	6.01	Complementary coffee will be served at charitable and civic events
7	7.01	Discount coupons will be distributed on the street, via direct mail (USPS) and also at special events
8	8.01	For business to grow eventually various authentic tea and coffee from other countries will be served
9	9.01	Strong marketing strategy will be required to achieve the targets.
9	9.02	Achieve a 7% net profit margin within the first year and 25% by FY3

Change Management (Chapter 4)

Project Change Control Narrative:

Gone are the days of one large change every 60 months. Businesses are facing agile, more complex, more interdependent and more cross-functional change than ever before. Being able to deliver outcomes on multiple changes allows a business to accomplish their strategic vision and boom in today’s changing landscape. Applying change management enables business to deliver results on each change more effectively and build expertise that can grow the business volume to tackle more changes at one time.

In coffee business, there can be various things that may need changes, e.g. cost, food, labor, design, Chef or venue (big change). These changes need approval from Manager and supervisors. Managers and supervisors are crucial because of the relationship they have with the employees in the business. They are positioned specially to coach and influence employees through their own change process.

If a change request is raised in the coffee business, then an impact analysis will be performed. This process will look at the effects of the change on other products in the coffee business, and also the effects if this change is not implemented. The approval manager or a management board takes this decision responsible for approving or rejecting change requests depending on the change request and depending on the financial aspect of the business. The reason of the impact analysis is to arrive at a balanced conclusion of the effect due to the proposed change. This will allow the management approval board to decide whether to proceed with the change or not.

Approved change requests will require new or revised cost estimates; new or alternate date of scheduling, new or alternate resource requirements for vendors, and analysis of risk response alternatives. The applied level of change control is dependent upon the application area, complexity of the specific need and urgency, and the context in which the change is requested.

Project Change Control Flowchart:

Steps	Description
Generate Change Control	A submitter completes a Change Request Form and sends the completed form to the Change Manager.
Log Change Control Status	The Change Manager enters the Change Request into the Change Request Log. The Change Request status is updated throughout the Change Request process as needed.
Evaluate Change Control	A project personnel reviews the Change Request and provide an estimated level of effort to process, and develops a proposed solution for the suggested change.
Authorize Change Control	Approval to move forward with incorporating the suggested change into the project/product.
Implement Change Control	If approved, make the necessary adjustments to carry out the requested change and communicate Change Request status to the submitter and other stakeholders.

Generate CR

Implement CR

Authorize CR

Evaluate CR

Log Updated Status

Report Status

Project Change Request Form Template:

CHANGE-REQUEST FORM

Change Request #:	Change Requested by:
Originator of Request:	Date Submitted:
Urgency of Request / Priority:
Detailed Description of Change Request:
Proposed Approach to Resolve:
Signature
Change Requester:	Approval Manager:

Project Change Log Template:

CHANGE-REQUEST LOG
Change Request No.	Originator	Description of Change	Date Submitted	Date Required	Priority	Assigned To	Status	Approval
1.
2.
3.
4.
5.
6.

SCOPE Description (chapter 5)

Café Central Perk will try to make the best effort and try to create a unique place for their customers where they can socialize with one another in a comfortable and relaxing environment while enjoying the superior quality of brewed coffee and pastries in town. We will be in the business of helping our customers to relieve their daily stress by providing piece of mind through great ambience, convenient location, friendly customer service and products of high quality. Café Central Perk will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Other deliverables that will be required for a successful venture will also include to understand the business need from the customers, always try to have a target takeaway mindset and most important to always serve the finest quality of brewed coffee made from superior quality of coffee beans.

We also need some long term and short term assets in the coffee business

Long term asset: Refrigerators (under counter and storage), preparation counter, ice machine, cash register, espresso machine, coffee brewer, bars, shelves, music system, blenders, dish washer, microwave, storage racks, computer, scanner, printer, toasters, panini makers, sink, TV.

Short term asset: Furniture including tables and chairs for 20 people, furnishings, carpet for the coffee shop, lights (fancy and normal), cups, lids, straws, sugars.

HiGH Level Work Breakdown Structure, Milstone Schedule and Project Boundaries

Work Breakdown Structure

1. Work Breakdown Structure – Café Central Perk

1.2 Construct Physical Location

1.4 Purchase Supplies and Go Live

1.3 Hire Employees

1.1 Create Business Plan

1.2.1 Select Location

1.3.1 Advertisement

1.1.1 Identify Partners

1.4.1 Inventory Levels

1.2.2 Select Contractor

1.2.3 Design Floor Plan

1.1.2 Create Business Name

1.4.2 Identify Suppliers

1.3.2 Interview Process

1.2.4 Prepare Site

1.1.3 Register Business

1.2.5 Foundation

1.3.3 Training

1.4.3 Place Initial Orders

1.2.6 Framing

1.1.4 Procure Capital

1.2.7 Roof

1.4.4 Schedule Delivery

1.2.8 Electrical

1.1.5 Determine Hours of Operation

1.4.5 Final Inspection

1.2.9 Plumbing

1.1.6 Determine Staff / Manager / Chef Pay Rate

1.2.10 Interior Design

1.4.6 Go Live

1.2.11 Outside Design

1.1.7 Determine Menu, Identify Products and Quantity

1.2.12 Purchase Furniture and Equipment

Summary Milestone Schedule (Chapter 6)

Milestone #	WBS #	Description	Completion Date
1	1.1.3	Register Business	15th Nov 2017
2	1.1.4	Procure Capital	1st Dec 2017
3	1.1.5	Determine Staff, manager and chef	1st Mar 2018
4	1.2.3	Design Floor Plan	15th Dec 2017
5	1.2.5	Foundation	15th Jan 2018
6	1.2.8	Electrical	15th Mar 2018
7	1.2.9	Plumbing	25th Mar 2018
8	1.2.10	Interior Design	5th Apr 2018
9	1.2.12	Purchase Furniture and Equipment	1st May 2018
10	1.3.1	Advertisement	1st Feb 2018
11	1.4.3	Place Initial Order	1st June 2018
12	1.4.5	Final Inspection one week before the grand opening	7th June 2018
13	1.4.6	Go Live	15th June 2018

Project Exclusions

· Café Central Perk will serve only coffee, tea and lite snacks.

· Coffee beans will not be sold in the coffee shop.

· Lunch and Dinner will not be provided.

· Outside food is not allowed in the coffee shop.

· Pets are not allowed inside the coffee shop.

Assumptions (Chapter 5)

· Our stakeholders will protect our business.

· Drinking coffee will continue to be considered an “affordable luxury.”

· 20 - 25 % target to be achieved over the next 3 years as Café Central Perk becomes well known.

· Quality of national coffee chains will remain same or decline slightly rather than progress as they standardize their stores.

· Blogs and coffee association says that the coffee industry is too saturated and hence will reach maturity by 2020.

· Despite recession, the coffee industry will keep showing strong growth every year as it has been for the last 2 decades and the positive growth for specialty coffee drink will continue to grow at healthy rate.

Constraints (Chapter 5)

· Project Schedule

· Project must start by November 15th 2017

· Project must be completed by June 15th 2018

· Cost

· Cost of construction should not exceed $30,000

· Labor

· As the business is new, labor need to be flexible with their time. Overtime will not be paid, although workers who continue to work and finish their task will be compensated through bonus at end of the year.

· Weather

· Due to bad weather in the Midwest during winter, project schedule may get delayed.

Product Deliverables & Acceptance Criteria (Chapter 5)

Deliverables	Date Available	Acceptance Criteria
Create a unique place for the customers where they can socialize with one another in a comfortable and relaxing environment	15th June 2018	Feedback from customer
To serve consistently the finest espresso	15th June 2018	Feedback from customer
Achieve a 7% net profit margin within the first year and 25% by FY3	15th June 2019	Target Sales for first year

Table x. Key Project Deliverables

PROJECT SCHEDULE (Chapter 6)

Time management is a key aspect and it is closely knitted to scope and cost area in a project. When project activities are scheduled, we use aggressive timeline and put a clear focus on determining realistic project deadline. Project schedule is the beating heart for the project. It captures the essence of what the project will accomplish and how it will be done. It is imperative to stick to the project schedule to accomplish the results on time. I have divided my project management deliverables into different phase; Initiating, Planning and Executing.

Task ID	Task Name	Start Date	Finish Date	Duration
1.0	INITIATING
1.1	Create business plan	20 Sep 2017	30 Sep 2017	10 days
1.2	Identify Stakeholders and explain business plan to them	01 Oct 2017	15 Oct 2017	15 days
1.3	Finalize Physical Location	17 Oct 2017	27 Oct 2017	10 days
1.4	Milestone: Register Business / Licenses	01 Nov 2017	15 Nov 2017	15 days
1.5	Finalize Contractor	20 Nov 2017	30 Nov 2017	10 days
1.6	Milestone: Design Floor Plan	01 Dec 2017	15 Dec 2017	15 days
1.7	Milestone: Foundation	20 Dec 2017	15 Jan 2018	26 days

2.0	PLANNING
2.1	Create Frame for shop	20 Jan 2018	30 Jan 2018	10 days
2.2	Prepare Roof, Walls and painting for shop	01 Feb 2018	28 Feb 2018	28 days
2.3	Milestone: Start Advertisement for workers, chefs, managers	01 Dec 2017	01 Feb 2018	60 days
2.4	Milestone: Prepare Electrical wiring for shop	01 Mar 2018	15 Mar 2018	15 days
2.5	Milestone: Prepare plumbing options for sink and toiletries	15 Mar 2018	25 Mar 2018	10 days
2.6	Start Interview process for hiring workers, chefs and managers	20 Dec 2017	20 Feb 2018	62 days
2.7	Milestone: Create Interior designing for shop	01 Mar 2018	05 Apr 2018	36 days
2.8	Milestone: Purchase Furniture and Appliances	05 Apr 2018	05 May 2018	30 days
2.9	Identify inventory needs to start the business	07 May 2018	14 May 2018	07 days
2.10	Identify suppliers and finalize them. Negotiate on prices.	15 May 2018	20 May 2018	05 days

3.0	EXECUTING
3.1	Milestone: Place initial order	21 May 2018	01 Jun 2018	10 days
3.2	Milestone: Final inspection before the grand opening	01 Jun 2018	7 Jun 2018	07 days
3.3	Milestone: Go Live	15 Jun 2018	15 Jun 2018	0 days

Summary High Level Budget (Chapter 7)

Cost for the coffee shop will depend on long term, short-term assets and startup expenses. Our costs are an estimate of $233,500 for opening inventory and operating capital. Many of these costs are onetime costs and won’t be reoccurring.

Long-term assets: $52,000

Counters / Shelves / Bars	$10,000
Coffee brewer machine	$2,000
Coffee Espresso machine	$8,000
Cash Register (2)	$15,000
Milk Coolers (4)	$2,000
Large Refrigerator	$1,500
Ice machine	$3,000
Preparation Counter	$9,000
Under counter Refrigerators (3)	$1500

Short-term assets: $23,000

Light Fixtures	$5,000
Carpet Finishing	$2,000
Tables, Chairs, Furnishings	$15,000
Other Accessories	$1,000

Start-up Expenses

Construction
Architecture design	$10,000
Site demolition	$20,000
Lighting	$13,000
Plumbing	$9,000
Flooring construction	$7,000
Bathroom construction	$3,000
Painting	$2,000
Licenses / Permits for coffee shop	$5,000
TOTAL	$69,000
Legal
Accountant	$3,000
Lawyer	$5,000
Insurance	$2,000
TOTAL	$10,000
Marketing
Advertisement	$3,000
Graphic Designer / Menu Boards / Website	$5,000
Brochures / Cards	$1,000
TOTAL	$9,000
Office
Equipment’s for office	$2,000
Computer / Printer / Scanner	$3,000
Stationary	$1,500
Telephone / Gift item displays	$1,500
TOTAL	$8,000
Appliances
Dishwasher	$2,000
Coffee Blenders	$2,500
Microwave	$500
Toasters / Oven / Panini maker	$1,500
Music system	$1,000
Storage racks / shelves	$1,000
Coffee bean grinder	$1,500
Other Accessories (cups, lids, sugar, etc.)	$2,500
TOTAL	$12,500
Go Live
Inventory cost	$25,000
Supplier cost	$20,000
Delivery cost	$5,000
TOTAL	$50,500
TOTAL START-UP EXPENSES (Construction + Legal + Marketing + Office + Appliances + Go Live)	$158,500
TOTAL FUNDING REQUIRED (LONG TERM ASSESTS + SHORT TERM ASSESTS + START UP EXPENSES + Go Live)	$233,500

Budgeted Item	Nov 17	Dec 17	Jan 18	Feb 18	Mar 18	Apr 18	May 18	Jun 18	Total
Long term assets			$10,400	$10,400	$10,400	$10,400	$10,400		$52,000
Short term assets			$5,000	$5,000	$5,000	$5,000	$3,000		$23,000
Startup expenses	$10,000	$34,500	$34,500	$9,000	$8,000	$6,000	$6,500		$108,500
Go Live								$50,000	$50,000
Time Period Total	$10,000	$34,500	$49,900	$24,400	$23,500	$21,400	$19,900	$5,000	$233,500

Quality Management Plan (Chapter 8)

Quality Assurance:

Quality Assurance focuses on Project Processes. Think of quality assurance as activities that help to prevent quality problems while developing project deliverables. Quality assurance ensures that your project processes are appropriate and consistently followed.
Quality Assurance Process/Procedure (Activities you will use to help avoid the need for rework)	Quality Standards for Process / Procedure1	Monitoring Quality Assurance Activity and Frequency2 (Audits, Process Reviews, Process Analysis, Assessments, etc.)	Who is Responsible for performing Assurance Activity and reporting results
Coffee bean vendor qualification	USDA / Koshar (K) Mark	Yearly procurement	Café Manager / Owner
Café Equipment Cleaning and Maintenance	ISI Mark	Quarterly	Café Manager / Owner
Formal Change Control Process	Business requirement	Every time there is a need for change control	Café Manager / Owner

1Stakehlder’s standards /expectations for the processes

2 Activity that will be performed to monitor if project processes /procedures are being followed and standards / expectations are being met

Quality Control:

Quality Control focuses on Project Deliverables. Quality control is a set of activities designed to evaluate project deliverables. Quality control focuses on finding defects in deliverables / verifying that requirements are being achieved.
Deliverable Name/Description	Metric (Attribute that will be measured)	Physical or Performance Quality Standard1	Quality Measurement Activity and Frequency2	Who is Responsible for performing Control Activity and reporting results
Initial design plan of coffee shop	Floor plan design	Government standard for the Blue Ash area	Architect designer and 1 review cycle	Owner
Roasted coffee beans	Color and scent of coffee beans	SCAA certification	Lab testing and Every lot purchased	Buyer

Project Organization & Resources (Chapter 9)

Internal Team Structure

Narrative: Describe the internal team structure of the project, as well as how the project relates to the rest of the organization. Explain the logic/rationale behind why you think your proposed team structure is best for your project.

Café Central Perk is a privately owned corporation and the team comprises of owner of the coffee shop who also operates as the general manager / managing partner.

A manager will assist in maintaining and reviewing operations of the restaurant and the entertainment venue/bar.

A senior chef will be hired to manage kitchen operations and be crucial to maintaining food inventory stability and assistance in menu development.

An assistant manager will be hired who will provide regular table service as well as assistance to the manager.

A sous-chef will be hired to perform secondary management functions in the kitchen as well as provide assistance to the chef in kitchen / cooking functions.

Part-time personnel’s will be hired to handle cashier, bartending, serving, dishwashing and cleaning functions.

The marketing, and accounting function will be handled by independent contractors/consultants.

Team Organization Chart:

Owner / General Manager

Senior Chef

Manager

Sous-Chef

Assistant Manager

Coffee maker - 1

Coffee maker - 2

Dishwashers - 1

Server - 1

Server - 2

Server - 3

Cashier - 1

Cashier - 2

Project Organization: Major Project Roles & Responsibilities:

Identify the individuals performing the project's primary/main roles & responsibilities. This can be used to establish accountabilities throughout the project’s lifecycle
Major Role / Function1	Major Responsibilities	Name and Title (May be multiple names per Major Role)
Customer satisfaction is priority	Managing the entire team of coffee shop and customer satisfaction	Owner / General Manager (SOUMITRA SHILOTRI)
No hassle to operate the coffee shop on day to day basis	To assist in maintaining and reviewing operations of the restaurant and the entertainment venue/bar	Manager (SANKET)
To train staff for day to day work	Training staff and will provide regular table service and will provide assistance to the manager.	Assistant Manager (VICKY)
To provide daily specials in the menu	To manage kitchen operations and be crucial to maintaining food inventory stability and assistance in menu development	Chef (ASHWIN)
To provide assistance to the chef in kitchen	To perform secondary management functions in the kitchen and provide assistance to the chef in kitchen	Sous-Chef (SHIVRAJ)
Serve coffee to customer as per customer requirement	To prepare coffee as per customer requirement and serve coffee to customer	Coffee Maker 1 (AVANI)
Serve coffee to customer as per customer requirement	To prepare coffee as per customer requirement and serve coffee to customer	Coffee Maker 2 (POOJA)
To ensure the utensils and glassware’s are available to use when required	To clean utensils and glassware’s used for making coffee	Dishwashers 1 (ABHISHEK)
Snacks and bakery items should be bagged before giving to customer	To serve snacks, bakery items to customers as per their request	Server 1 (JAYESH)
To quickly provide coffee and snack items to people waiting in the car and keep the car line moving	To serve snacks, bakery items and coffee to customer who arrive at the drive way window and to bill the customers for their order either by cash or card (Debit or Credit)	Server 2 (UDIT)
Clean tables and make room for new customers	To clean all tables, chairs, desk tops of coffee spills and dust, take out the trash, vacuum the coffee shop first thing in the morning and clear tables to make room for customers	Server 3 (ANIKET)
Bill the customers for their order either by cash or card (Debit or Credit)	Bill the customers for their order either by cash or card (Debit or Credit), to get survey from the customers before they leave the coffee shop and ask them about their experience in the coffee shop, smile and provide service to customer	Cashier 1 (JANVI)
Bill the customers for their order either by cash or card (Debit or Credit)	Bill the customers for their order either by cash or card (Debit or Credit), to get survey from the customers before they leave the coffee shop and ask them about their experience in the coffee shop, smile and provide service to customer	Cashier 2 (ASHWINI)

Project Team Members: External Interfaces:

Identify project personnel who are charged with establishing/maintaining key relationships with people /organizations outside the project team. This can be used to establish accountabilities throughout the project’s lifecycle
Team Member Name and Title	External Organization / Entity for which Team Member is the Primary Interface / Liaison
Owner (SOUMITRA)	Architects, Compliance, Regulators, Stakeholders, Marketing, Finance, Legal
Manager (SANKET)	Suppliers, Vendors, Customers, Purchase, Marketing, Supply Chain, Finance
Assistant Manager (VICKY)	Customers
Chef (ASHWIN)	Customers
Sous-Chef (SHIVRAJ)	Customers
Coffee Maker 1 (AVANI)	Customers
Coffee Maker 2 (POOJA)	Customers
Server 1 (JAYESH)	Customers
Server 2 (UDIT)	Customers
Cashier 1 (JANVI)	Customers
Cashier 2 (ASHWINI)	Customers

RACI Chart

· Responsible role (R) – Identify who is responsible for doing the work. - Who is assigned to and will perform the work?

· Accountable role (A) – Identify who has final decision and 'ownership' of the work. Who has the authority to sign off for the work?

· Consulted role (C) – Identify the subject matter experts that have the information needed to complete the work. Whose input is needed before decisions are made or work begins?

· Informed role (I) – Identify who needs to be updated on the progress of the work (after decisions/actions are taken)? Whose work depends on this deliverable?

* Please find the excel file for RACI Chart attached in Unit 9 assignment folder under Moodle.

Equipment and Training Needs (Chapter 9)

Equipment:

· Coffee brewer machine

· Coffee espresso machine

· Coffee blender

· Coffee bean grinder

· Oven

· Panini maker

· Toaster

· Microwave

· Dishwasher

· Computer, printer and scanner

· Cash register machine

Training:

· Coffee maker 1 and 2 will be provided training on how to use and clean the coffee brewer machine, coffee espresso machine, coffee blender and coffee bean grinder.

· Cashier 1 and 2 will be provided training on how to use the cash register machine.

· Server 1 will be provided training on how to use and clean the oven, Panini maker, microwave and toaster.

· Server 2 will be provided training on how to use and clean the oven, Panini maker, microwave and toaster. Server 2 will also be provided training on how to use the cash register and how to use and clean the coffee brewer machine, coffee espresso machine, coffee blender and coffee bean grinder.

· Dishwasher 1 will be provided training on how to use the dishwasher.

· Manager, Assistant manager, chef, sous chef, coffee maker 1, coffee maker2, server 1, server 2, cashier 1, cashier 2 – all will be provided training how to serve the customer rightfully and also how to follow the change control process.

Communications Plan (Chapter 10)

Stakeholder communications requirements

Communications Table / Matrix Example (complete your own)

Communication Item	Frequency of Communication	Format/ Media/ Distribution Channel	Content Author(s)	Reviewer(s) Approver(s) (sign-off before distribution	Audience/ Recipients (Stakeholders who will use the communication items)	Feedback Mechanism
Achieving quality	Monthly	Face to face meeting	Owner, Manager	Owner, Business partner	Customer	Face to face meeting
Timely delivery	Quarterly	WebEx	Manager, Assistant manager	Manager	Stakeholder	WebEx
Staying within budget	Quarterly	WebEx	Owner, Manager	Owner	Stakeholder	WebEx
Resource allocation	Yearly	Video conference	Owner	Owner, Manager	Stakeholder	Video conference
Customer satisfaction	Quarterly	WebEx	Manager	Owner, Manager	Stakeholder	WebEx
Financial impact	Monthly	Face to face meeting	Owner	Owner, Manager	Stakeholder	Face to face meeting

Escalation procedures (for resolving communication issues)

Site Level: An attempt is made to resolve the issue at the site level that is face to face. Strategies are made to resolve mutual conflicts. If it still doesn’t get resolved the matter is then escalated to the store manager. For instance, if the supplier is being delaying the purchase order every time the order is sent and if he continues to do the same mistake, this will be escalated to Level 1 i.e. manager will be notified.

Level 1: If attempt at site level is not sufficient, it will be escalated to the management level. At this stage of the escalation process, general manager / owners will review the issue and attempt to reach a solution. At this level, the general manager / owners will advise and meet with those internal and external persons who are involved with the dispute and attempt to reach a solution. Once a solution is reached, a follow-up meeting will be carried out between owners/managers and external parties within mutually agreed amount of time to ensure that the action have been fulfilled and the problem solved

Revision procedures (for updating the communication plan)

· Each stage of project deliverable development will be delivered as per the agreed project WBS and schedule.

· Every team member has the ability to propose changes.

· Changes will be logged in the logbook and will be escalated to the project manager to review and approve changes.

· Owner, manager, will sign off each stage of project deliverable development where appropriate as per the agreed project WBS and schedule.

Status Report Format

Manager:	External Client:	Date:
Progress and Achievements:	Items for Escalation:
Milestones
Milestone Description	Date	Owner	Comments



Top Risks and Issues
Risk / Issue	Severity	Action	Owner



Goals for next reporting period
Budget:	% Spent:

PROJECT RISK MANAGEMENT (chapter 11)

Sources of Project Risk: Risk Category

Event Space

Power and Mechanical Failures

Weather

Poor Attendance

Customer Issues

11.1 Detailed Risk Register

Recreate the following table in Excel and submit with this assignment.

* Please find the excel file for Risk Register attached in Unit 11 assignment folder under Moodle.

Procurement management Plan (chapter 12)

Make/Buy/Lease analysis and Procurement Needs

Procurement management is the process by which a company can purchase goods and services from an outside organization.

Manager (Sanket) is responsible to communicate with the external organizations and finally completing it and presenting the analysis.

The first thing to consider will be identifying the need for the coffee shop and whether it is a necessary resource and if it is available in the store. Once the manager has a clear picture of what products or services are required, the company needs to consider the scheduling time and costing. Once the suppliers and costing are decided, the terms of contract will be negotiated. There will be a contract that will be legally binding document and it will be prepared by the company’s legal department. The final copy will be signed by the General Manager / Owner (Soumitra) and should contain all the terms agreed upon.

The final approval authority decision for Make / Buy / Lease is taken by the General Manager / Owner (Soumitra) and in certain cases taken by the Manager (Sanket).

Describe Items or Services essential for project success that could be Made, Purchased or Leased.
Item or Service to be Procured	Description / Technical Information	Why is item / Service Needed	Make Buy Lease	Type of Contract	Need By Date	Purchase Approval Authority
*Long term assets as per section 7 (high level budget)	*All items are mentioned in section 7 (high level budget)	To prepare coffee and to store ingredients used in coffee	Buy	Written Contract (Initial – once only) Fixed Price Plus Incentive	1st MAY 2018	General Manager / Owner (Soumitra)
*Short term assets as per section 7 (high level budget)	*All items are mentioned in section 7 (high level budget)	Proper functioning of the coffee business and to attract customers	Buy	Written Contract (Initial – once only) Fixed Price Plus Incentive	1st MAY 2018	General Manager / Owner (Soumitra)
*Startup expenses as per section 7 (high level budget)	*All items are mentioned in section 7 (high level budget)	To construct the coffee shop and for smooth functioning of the coffee shop	Lease	Written Contract (Initial – once only) Fixed Price Plus Incentive	5th APRIL 2018	General Manager / Owner (Soumitra)
*Appliances for coffee shop as per section 7 (high level budget)	*All items are mentioned in section 7 (high level budget)	To prepare coffee, sandwiches, cleaning utensil used in coffee preparation and for storage purpose	Buy	Written Contract (Initial – once only) Fixed Price Plus Incentive	1st MAY 2018	Manager (Sanket)
Coffee bean, Tea, Water, Juices, Soft drinks, Pastries, Chocolates, Cocoa	Coffee bean, Tea, Water, Juices, Soft drinks, Pastries, Chocolates, Cocoa	For coffee and tea preparation and other drinks which will be required for the coffee business	Buy	Written Contract (Monthly) Fixed Price	1st JUNE 2018	Manager (Sanket)

* Due to large quantities, reference for section 7 (high level budget) is provided. All Items with description are mentioned in section 7 (high level budget) in detail.

Procurement Source Selection Process

Manager will work with the team to identify all items that needs to be procured for the successful completion. Manager will consult the General Manager and they both will review the procurement list before submitting it to the contractors and purchasing department. The contracts and purchasing department will review the procurement items and will determine whether it is better to buy or lease the items and then they will eventually start with vendor selection, purchasing, negotiation and contracting process. Final decision will be taken by the general manager / owner after reviewing the contracts along with purchasing department.

Vendor Performance Management and Closeout

The selection criteria will be based on following things:

· Ability of the vendor to provide items by the required delivery date

· Quality product

· Cost

· Expected delivery date

· Past performances of the vendor / supplier

These criteria will be measured by the committee (General Manager, Manager, Assistant Manager). The ultimate decision will be made by the owner based on above criteria.

Once the closeout obligations under the contract have been met, a review of the process will be conducted and the goal is to identify which elements of the procurement process were successful and which were the ones where there were delays, if any occurred. Documentation should be prepared and shares with the team and the supplier and vendor. The supplier will also be advised in writing that the obligations under the contract has been fulfilled, if they have been fulfilled. Planning is the key for efficient procurement for the business.

STAKEHOLDER ANALYSIS (chapter 13)

Stakeholder Register with Roles and Responsibilities

Stakeholder Name	Organization	Role/Position (in Current Organization)	Key Project Roles and Responsibilities
Soumitra Shilotri	Internal	Sponsor / General Manager	Managing the entire team of coffee shop and customer satisfaction
Sanket	Internal	Manager	To assist in maintaining and reviewing operations of the restaurant and the entertainment venue/bar
Vicky	Internal	Assistant Manager	Training staff and will provide regular table service and will provide assistance to the manager.
Ashwin	Internal	Sr. Chef	To manage kitchen operations and be crucial to maintaining food inventory stability and assistance in menu development
Shivraj	Internal	Sous-Chef	To perform secondary management functions in the kitchen and provide assistance to the chef in kitchen
Avani	Internal	Coffee Maker	To prepare coffee as per customer requirement and serve coffee to customer
Pooja	Internal	Coffee Maker	To prepare coffee as per customer requirement and serve coffee to customer
Abhishek	External	Dishwasher	To clean utensils and glassware’s used for making coffee
Jayesh	External	Server	To serve snacks, bakery items to customers as per their request
Udit	External	Server	To serve snacks, bakery items and coffee to customer who arrive at the drive way window and to bill the customers for their order either by cash or card (Debit or Credit)
Aniket	External	Server	To clean all tables, chairs, desk tops of coffee spills and dust, take out the trash, vacuum the coffee shop first thing in the morning and clear tables to make room for customers
Janvi	Internal	Cashier	Bill the customers for their order either by cash or card (Debit or Credit), to get survey from the customers before they leave the coffee shop and ask them about their experience in the coffee shop, smile and provide service to customer
Ashwini	Internal	Cashier	Bill the customers for their order either by cash or card (Debit or Credit), to get survey from the customers before they leave the coffee shop and ask them about their experience in the coffee shop, smile and provide service to customer
Jim	External	Architect	Designing the coffee shop in the given time frame
John	External	Accountant	Run the payroll for all employees working at Café Central Perk
Brian	External	Compliance Auditor	Audit the coffee shop looking for safety issues and non-compliance
Joanne	Internal	Marketing	Come up with strategic ways to expand the business
Emily	Internal	Finance	Approval and budgeting the business financially and to make sure annual targets are achieved
Rebecca	External	Legal	Prepare contracts and maintain them for all employees working at Café Central Perk
Michelle	Internal	HR Manager	Recruitment of staff for the business and maintain benefits of all employees working at Café Central Perk
David	Internal	Purchase	Prepare purchase orders and communicate with finance and vendors for all materials required for smooth functioning of the business
Meghan	Internal	Supply Chain	Negotiate with vendors for pricing and communicate with finance and purchase for all materials that are required for smooth functioning of the business and not to ensure all the materials required for business reaches on time at the coffee shop
Vendors	External	Suppliers	Supply material to the organization on timely manner
Customers	External	Consumers	To provide customer feedback
Competitors	External	Competitors	To reduce sale for client
Media	External	Media	Coverage strategy
Bank	External	Bank	To provide financing

Stakeholder Analysis

Name	Power / Interest	Current Engagement Level	Desired Engagement Level	Stakeholder Management Strategy
Soumitra Shilotri	High / high	Leading	-	Should acknowledge and monitor concerns of all stakeholders and should take their interest appropriately into account in making decision and operations
Sanket	High / medium	Supportive	Leading	Should listen to and openly communicate with stakeholders about their concerns and contributions and about the risk that they assume because of their involvement
Vicky	Medium / high	Supportive	Leading	To make sure that the working conditions are better for customers and employees
Ashwin	Medium / high	Supportive	Leading	Come up with new exotic dishes
Shivraj	Medium / high	Supportive	Leading	Come up with new exotic dishes
Avani	Medium / high	Supportive	Leading	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Pooja	Medium / high	Supportive	Leading	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Abhishek	Low / medium	Neutral	Supportive	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Jayesh	Low / medium	Neutral	Supportive	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Udit	Low / medium	Neutral	Supportive	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Aniket	Low / medium	Neutral	Supportive	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Janvi	Medium / high	Supportive	Leading	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Ashwini	Medium / high	Supportive	Leading	Should be paid above the legally mandated wages and improve corporate social responsibility performance
Jim	High / high	Supportive	Leading	To finish the designing of coffee shop on schedule
John	Medium / high	Supportive	Leading	Social responsibility to run payroll on time
Brian	High / high	Neutral	Supportive	Complies with government rules and regulations
Joanne	High / high	Leading	-	Solicit marketing strategies and obtain feedback on project planning
Emily	High / high	Leading	-	Track company’s financial performance and address concerns to investors
Rebecca	High / medium	Supportive	Leading	Frequent communication and addressing concerns are imperative to make sure company does not have to fight legal battles
Michelle	High / high	Leading	-	Hire right people according to project specification requirement
David	High / high	Leading	-	Communicate project schedule and material requirement ahead of time to ensure delivery
Meghan	High / high	Leading	-	Solicit frequent updates and develop plan for alternate supply source
Vendors	Medium / Low	Neutral	Supportive	Ensure timely delivery
Customers	High / Medium	Neutral	Supportive	Warm and friendly relations are emphasized within the company
Competitors	Low / high	Disagree	Supportive	Provide frequent status reports and updates
Media	Low / medium	Neutral	Supportive	Provide frequent status reports and updates
Bank	High / medium	Neutral	Supportive	Pay returns on time

Monitoring & Control Procedures (Chapters 5-7)

All changes and team performances will be regularly updated to the stakeholders through reports and on-going documentation. All changes will be accessed and addressed by the manager and general manager of Café Central Perk and will be communicated to the sponsor. You need to monitor progress against the schedule. If you remain on schedule and your schedule continues to represent the path to project completion, you may not have to update it again. If you detect a variance against your schedule, corrective actions may be necessary. Other monitoring and control procedures include managing budget, managing time, managing risks, managing vendor performance, perform quality control checks and administer procurements.

1. Monitor and Control Phase Activities

· Provide regular status report updates

· Track and manage project issues and risks

· Conduct project change management wherever necessary

· Perform quality management

2. Monitor and Control Phase Deliverables

· Completion of issues and risk log

· Completion of change request log

Closeout CRITERIA

1. Communicate among the team that the project has been approved.

2. The management will complete a close out report for each employee. This report will serve as an opportunity and recommendation (in case the employee wants to move on to a new role) for the management team to provide feedback to the team based on their performance and conclude how did they meet their goals.

3. Archive all blueprints (design and approvals) for the coffee shop in case there is a requirement in future to open another coffee shop.

4. Consistently serving the finest espresso and to keep customers happy – that should be the main motive of the business.

5. To reassign resources as per business needs. For example; if you used contractors for your job, the closing phase gives you chance to determine if you want to hire them for some other role.

PMP Template 2017 V4 (1)

V1.0

Rank

Based on

Risk Factor

ID / Number

Risk

Reference paper, WBS and PPT/Project_WBS-Final.mpp

Reference paper, WBS and PPT/Team Kick off Meeting.pptx

Project name: opening a coffee shop

Team Kickoff Meeting

Date: 10 October, 2017

Prepared by: Soumitra Girish Shilotri

Picture reference: https://awol.junkee.com/sydney-is-getting-a-friends-themed-pop-up-cafe/15081

Agenda

INTRODUCTION

PROJECT OBJECTIVE

SUCCESS OVERVIEW

TEAM ORGANIZATION / ROLES & RESPONSIBILITIES

EXCLUSIONS / CONSTRAINTS / ASSUMPTIONS

HIGH LEVEL WORK BREAK DOWN STRUCTURE

HIGH LEVEL TIMELINE

HIGH LEVEL BUDGET

PRODUCT DELIVERABLES & ACCEPTANCE CRITERIA

CLOSING

QUESTIONS

introduction

Coffee shop has become an important routine in the USA, since Starbucks came out 23 years back.

Every day, millions of Americans stop at a coffee shop for an espresso-based coffee drink. People who would not have dreamed of spending more than 50 cents for a cup of coffee a few years ago, now gladly pay $3 to $5 for their cappuccino, mocha latte or vanilla ice blended drink.

project OBJECTIVE

Consistently serving the finest espresso

Ergonomics is vital

Use loyalty cards

Promote multiple sales

Merchandise your margins

Get your strategies right

Provide the best service

Understand business needs

Always have a target takeaway

Serve on the front line

Success overview

Team organization / roles & responsibilities

A manager will assist in maintaining and reviewing operations of the restaurant and the entertainment venue/bar.

A senior chef will be hired to manage kitchen operations and be crucial to maintaining food inventory stability and assistance in menu development.

An assistant manager will be hired who will provide regular table service as well as assistance to the manager.

A sous-chef will be hired to perform secondary management functions in the kitchen as well as provide assistance to the chef in kitchen / cooking functions.

Part-time personnel’s will be hired to handle cashier, bartending, serving, dishwashing and cleaning functions.

The marketing, accounting, legal, finance, purchase, supply chain, architects, graphic designers functions will be handled by independent contractors/consultants.

Exclusions / constraints / assumptions

Exclusions	Constraints	Assumptions
Café Central Perk will serve only coffee, tea and lite snacks.	Project Schedule	Our stakeholders will protect our business
Coffee beans will not be sold in the coffee shop	Cost	Drinking coffee will continue to be considered an “affordable luxury.”
Lunch and Dinner will not be provided	Labor	20 - 25 % target to be achieved over the next 3 years as Café Central Perk becomes well known.
Outside food is not allowed in the coffee shop	Weather	Quality of national coffee chains will remain same or decline slightly rather than progress as they standardize their stores
Pets are not allowed inside the coffee shop.		Blogs and coffee association says that the coffee industry is too saturated and hence will reach maturity by 2020.
		Despite recession, the coffee industry will keep showing strong growth every year as it has been for the last 2 decades and the positive growth for specialty coffee drink will continue to grow at healthy rate.

High level work break down structure (WBS)

High level timeline

Milestone #	WBS #	Description	Completion Date
1	1.1.3	Register Business	15th Nov 2017
2	1.1.4	Procure Capital	1st Dec 2017
3	1.1.5	Determine Staff, manager and chef	1st Mar 2018
4	1.2.3	Design Floor Plan	15th Dec 2017
5	1.2.5	Foundation	15th Jan 2018
6	1.2.8	Electrical	15th Mar 2018
7	1.2.9	Plumbing	25th Mar 2018
8	1.2.10	Interior Design	5th Apr 2018
9	1.2.12	Purchase Furniture and Equipment	1st May 2018
10	1.3.1	Advertisement	1st Feb 2018
11	1.4.3	Place Initial Order	1st June 2018
12	1.4.5	Final Inspection one week before the grand opening	7th June 2018
13	1.4.6	Go Live	15th June 2018

High level budget

Budgeted Item	Nov 17	Dec 17	Jan 18	Feb 18	Mar 18	Apr 18	May 18	Jun 18	Total
Long term assets			$10,400	$10,400	$10,400	$10,400	$10,400		$52,000
Short term assets			$5,000	$5,000	$5,000	$5,000	$3,000		$23,000
Startup expenses	$10,000	$34,500	$34,500	$9,000	$8,000	$6,000	$6,500		$108,500
Go Live								$50,000	$50,000
Time Period Total	$10,000	$34,500	$49,900	$24,400	$23,500	$21,400	$19,900	$5,000	$233,500

Product deliverables & acceptance criteria

Deliverables	Date Available	Acceptance Criteria
Create a unique place for the customers where they can socialize with one another in a comfortable and relaxing environment	15th June 2018	Feedback from customer
To serve consistently the finest espresso	15th June 2018	Feedback from customer
Achieve a 7% net profit margin within the first year and 25% by FY3	15th June 2019	Target Sales for first year

closing

At the end, a project closeout report will be filled out for each employee and contractor.

This report will serve as an opportunity for the Manager to provide team members with feedback and also rate their performance over the phase of project completion.

This report will finally conclude, how individual employee and contractor meet their or did not meet their goals.