Project Management

You have been appointed as a project manager to manage the implementation of a new

distribution centre for ABC Ltd, a national grocery retailer. The new distribution centre will

replace 5 existing regional centres. It will have 500 staff in total. While most of the staff will

be relocated from existing centres, new staff will be employed to fill the remaining vacancies.

There will be a newly constructed 100,000 sqm complex with 25 loading bays. The new

distribution centre will include packing, wrapping and dispatch to a large network of grocery

outlets on a timely basis. It will require a new fleet of vehicles, which are currently

outsourced to a third party transport operator.

You have been appointed directly by the Chief Supply Chain Manager, and she is counting

on you to complete this project successfully. The project is seen as critical since efficient

supply chain operations affect all the major areas of the business, and therefore affect the

overall profit of the business. The new distribution centre will streamline the whole supply

chain for ABC and is expected to improve overall profits by $2 million per year.

This is considered a greenfield project since there are no systems, processes, infrastructure

or even any staff as yet. You have much flexibility in designing this project.

Some of the keytasks are:

· The project has been approved in principal only, so realistic time lines and expense budgets are required by management as an early project milestone.

· The project team has not been formed yet, so it must be designed and resourced.

· The location of the new distribution centre has not been decided yet, so a selection process is needed.

· The new distribution centre has not been designed and constructed yet. None of the systems have been selected yet, so a process must be put into place to achieve this.

Note that the above task list is incomplete. Based on the case and your assumptions, you

need to include additional relevant tasks to complete this assignment. You need to research

typical components for this project so as to better define milestones, tasks, outcomes, costs

and resources. Project managers always have to gain some knowledge of components of

their projects.

Your project should have at least 80 tasks, perhaps many more. You will use MS Project as

the basic tool to manage this. In the labs you will be shown the principals for each step and

then you will need to complete/expand/explore in your own time.

Here are the estimated costs for the main components of the project:

Item Estimated cost

Construction of the building $3,000,000

Fit-out of the building $700,000

Warehouse management system $500,000

Inventory management system $300,000

RFID technology $200,000

Security system $100,000

Consultancy costs (average) $500 per day

Project team member’s salary (average) $300 per day

Project manager’s salary $600 per day

(Project Charter below)

Project Charter

Project: ABC Ltd Distribution Centre Date April 5 2013

Scope Overview

The purpose of this project is to build a new distribution centre for ABC Ltd, a national grocery retailer. This new distribution centre will replace 5 existing regional centres will streamline the whole supply chain for ABC.

The objectives include:

· Selection of the location on which the new building will be constructed

· Employing and training of additional staff to fill the remaining vacancies

· Acquiring of machines and vehicles for the operations of the company

Business Case

The purpose of this project is to build a new distribution centre for ABC Ltd, a national grocery retailer and will streamline the whole supply chain for ABC. The replacement of the 5 existing centres and constructing it to one will centralize the production of the company.

Some of the benefits of this include;

· Efficient decision making

· Smaller workforce

· Easier implementation of policies

· Uniform products and services

· Consistent organisational system

· Cost effective

In addition, the construction of the new centre is expected to improve overall profits by $2 million per year.

Milestone Schedule and Deliverables

Risks and Assumptions

Stakeholders

Resources Required

· Funding $6,744,000

· People __25 - 30_

Equipments:

· Excavators,

· Loaders,

· Graders,

· Backhoe,

· Bulldozers,

· Concrete Mixers,

· Scaffolding,

· Welding,

· Brazing,

· Soldering Equipment,

· Surveying equipment

Team Operating Principles

· Respect

· Honesty

· Taking Responsibility

· Understanding Team Members’ Point of View

· Having patience

· Promote Team Cooperation

· Fulfil Commitments

· Sharing of thoughts and opinions

Lessons Learned

· Stakeholders should always be involved and informed

Ensure that stakeholders are always involved. For instance, regularly seek input from the sponsor to ensure that project requirements are being met. Keep stakeholders informed of the project’s status or progress and communicate project changes in a timely manner.

· Methodology over Technology

Technology is very important especially when it comes to projects. But technology is useless if it is not being used at its greatest potential. Make sure that the methods used throughout the project are suitable and appropriate. Ensure that best business practices are used. Seek opportunities to improve ways of doing things to bring optimum results.

· Documentations are important

Mistakes cannot be avoided. It is possible to make mistakes even if preparations are made. But mistakes done can be dangerous if not noted or documented. Documentations of such mistakes are important for the team to learn from it, to define what went wrong and to avoid repeating the same mistakes.

· Skilled Staff

As the quote says, “You are as strong as you’re weakest link”. Even if you have a good project manager, but have an unskilled staff, things won’t work out. Make sure to employ staff with skill sets that fit the job.

Commitment