cofee shop final project

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The Tech Museum Expansion Project

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MGMT404 Project Management

DeVry University Online

Assignment Date

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Executive Summary

Over several years The Tech Museum guest surveys have shown a significant decrease in

overall visitor satisfaction due to inaccurate content expectations. They are finding that

because they are named The Tech Museum of Innovation that their visitors expect a portion

of the museum to be dedicated to information pertaining to computers. The objective from

conception was to devote their resources to science and to educate the public on how

technology affects our lives. The Tech Museum founders made a conscience decision not to

include computers in their exhibit mix. However, with the increased urgency to build

attendance, the Board of Directors decided that they must aggressively pursue this

opportunity in order to boost overall customer satisfaction and increase attendance to build

earned revenue. This proposal presents an expansion of the existing museum building that

will house a gallery devoted to the evolution of the computer.

Scope Statement

Goal Definition

This proposed construction and expansion project will be the first major strategic alteration

The Tech Museum has made to their original concept design and purpose. This building will

be a 5,000 square foot wing that will be named Computers: Yesterday, Today and

Tomorrow. The expansion will be build out over the existing courtyard next to the rear

entrance to the museum. The goal is to create a specific area that will be devoted to The

Tech’s mission to support learning and education and will focus entirely on the timeline of

computers. It will provide information and education on the inception of computers into our

society, the latest and greatest of today’s computer technology, and what our major

technology company’s R&D departments are working on for the future. This new gallery will

be set up as a self-guided path using audio technology and text graphics. The Tech

Museum will make the commitment to the public that the information expressed will always

be current and relevant. This exhibit will provide the visitor with a look at real computers

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and components from the past (40% of the exhibit space), currently available computers

and components (40% of the exhibit space) and at the end of the tour show footage on big

screen monitors of where computers are expected to be going (20% of the exhibit space).

The exhibit will provide hands on learning opportunities as well as facts and information.

They have agreements with three major computer companies that they will make available,

for exhibit display, prototypes and development information in turn for featuring their

company logo and The Tech Museum’s recognition of them as contributors.

Goals that address the mission

 The major focus of this exhibit project is to concentrate on the mission to Inspire the

Innovator in Everyone.

 Provide an environment of learning and education that benefits our children and the

community.

Goals that address self-sustainment

With this project in place we expect to stimulate public awareness that will affect these five

major revenue producing areas:

 Increase new attendance

 Increase school field trip attendance

 Build re-visitation attendance

 Increase gift and bookstore sales revenue

 Increase facility rentals

Objective definition

Looking forward at a ten-year plan they expect this new exhibit to increase their earned

revenue over that period by $5,200,000. The market surveys that have been conducted

indicate that based on current attendance figures the new exhibit will increase attendance

by 20% in year one, 15% in year two and level off to a 10% increase annually thereafter.

At that rate, based on current annual earned revenue of $6,500,000, the added earned

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revenue in year one will total $1,300,000, in year two the earned revenue increase will be

$975,000. The project cost will be covered in month one of year three.

Cost

Building expansion including plans, permits, labor and materials - $1,400,000

Exhibit interior including labor, display materials, graphics and exhibit components -

$900,000

Total Project Cost: $2,300,000

Total Project Benefit Over Ten Years: $5,200,000

Project duration expected to be 18 months.

Project Objectives

To build a 5,000 square foot addition to the existing facility that will house a new exhibit

dedicated to the evolution of computers. This gallery will include the exhibit area, a 12X12’

corner, with a register podium, where merchandise will be sold at the exit of the exhibit,

and a 1,000 square foot glasses climate controlled room for sensitive equipment. The

finished exhibit will contain computer equipment, information and educational materials on

computer technology from its inception, the present technologies and future technology

expectations. This is expected to be a 16- month project, and will be completed on a

budget not to exceed $2.3 million. Project completion and Grand Opening is scheduled for

Friday, December 2, 2005.

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Project Deliverables

Intermediate outcomes - As this expansion project progresses we will deliver to our

customer, The Tech Museum, a 5,000 square foot constructed building attached to the main

building of The Tech Museum. We will complete acquisition of computer equipment and

gallery display components, as well as, the completion of the interior area including

furnishings and design of the computer evolution gallery. We will install all exhibit

components, including the donated prototypes of future technology that is donated by

technology business partners. We will complete testing of exhibit components to ensure

that all exhibits are working to specifications and we will complete an extensive walk-

through one week prior to public opening.

Final outcome - An addition to the existing museum housing an exhibit on computer

evolution named Computers: Yesterday, Today and Tomorrow, that is on-line and ready for

public visitation.

Milestones

Milestone Date

All permits approved 1/3/2005

Contractor contracts signed 1/31/2005

Ground breaking ceremony 2/4/2005

Courtyard demolition completed and foundation poured 3/25/2005

Building construction completed 4/29/2005

All electrical and plumbing work completed 5/27/2005

Fire alarms and sprinkler installation completed 6/15/2005

Final building inspection 6/24/2005

All interior work completed including paint, carpet, floor lights, exhibit

display units and furnishings

8/26/2005

Interactive and exhibit computers and monitors, including three flat- screens, installed and tested

10/28/2005

Graphics and audio system installation completed and final walk-

through and internal inspection conducted

11/20/2005

Gallery opens to the public (soft opening) 11/26/2005

Grand opening ceremony 12/2/2005

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Technical Requirements

This building will be properly licensed by the City of San Jose and will meet or exceed all

building code and safety standards. It will include 150 telephone ports for computers,

telephone and store register, and all equipment will be properly surge protected. The

gallery will be electrically self-contained and along with ceiling lights it will include recessed

floor lights that will run along the path of the exhibit. The building will be heated or air-

conditioned accordingly with the climate-controlled glass area set to a constant sixty eight

degrees. Exhibit area will include two 35” and one 72” flat screen monitors for displaying

current visitor information.

Limits and Exclusions

The project will not guarantee the content of the information provided by The Tech Museum Education

and Learning Group for the gallery graphics and audio presentations. The project responsibility only

extends to the visual and audio specifications of all exhibit equipment, not the content itself. The project

responsibility for all maintenance to the building and equipment ends upon completion. Further

maintenance and building upkeep is the responsibility of The Tech Museum. All site work is limited to the

hours of 7:30 A.M. until 4:30 P.M., Monday through Friday, except for holidays and Union imposed

designated days off. This project does not include negotiations with technology partners for donations,

nor do we take responsibility for any equipment donated to the exhibit. This addition will not include a

restroom area.

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Reporting Structure of Team Members

The Board of Directors will be responsible for the final approval of the project and will

determine the success level at completion. The Executive Committee will facilitate risk

probabilities and scope changes. This committee will meet with the Project Manager should

cost or duration problems arise. The Review Committee will conduct the final inspection and

audit, which will be presented to the Executive Committee and the Board of Directors. The

findings within the scheduled and final audits will help determine the degree of success the

project achieved. Day to day decision making responsibilities will be based on levels of

concern, as shown in the matrix below. Operational decisions will be delegated to the

appropriate level, however, should a problem arise that might affect duration or cost of the

activity, it shall be brought to the immediate attention of the Project Manager.

Decision Making and Concern Levels Matrix

Level Type Responsible Party(ies)

One Project Completion Board of Directors

Two Major Scope Changes

Major Risk Assessment

Successes/Failures

Executive Committee

Review Committee

Three Overall Project Related

Scheduling Changes

Minor Scope Deviations Communication Plan

Changes

Project Manager

Four Work packages and Related Activities

Project Team Mangers

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The following organization chart illustrates the organization of the project team for the

Expansion project.

Union Workers

Sub-contractors Carpenters Facilities

Design

Construction

Team Manager

Graphics

Design

Store

Team

Facilities

Team Manager

IT

Team

IT

Team Manager

Marketing

Team

Marketing

Team Manager

Project Manager

Executive

Commitee

Review

Committee

Board of Directors

Project Organization Chart

Bill Morris, Construction Team Manager will oversee outside facility expectations. He will work closely

with Steve Eisner who will monitor customer expectations of the project. Steve has worked for The Tech

Museum for twelve years and has a firm understanding of our customer’s expectations.

High-Level Gantt Chart View

Work Breakdown Structure

The following Work Breakdown Structure or WBS Gantt Chart provides a snapshot of the

project and indicates that the project objectives will be performed by both internal and

external project team members. Because the grand opening must be advertised well in

advance to both the public and to Tech Museum members, it is imperative that the

completion date is strictly adhered to. It is important that it is understood and agreed upon

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by all stakeholders that this is considered a time-constrained project. The risks that could

affect this time-constrained structure will be discussed in the following section.

I D WBS Task Name Duration Start Finish % Comp. Cost Work

1 1 Tech Museu m Expansion Project 338 days Fri 7/30/04 Fri 12/2/05 0% $2,300,000.00 783.5 days

2 1.1 Facility Construction Exterior 168 days Fri 7/30/04 Thu 3/31/05 0% $1,195,100.00 182.5 days

19 1.2 Facility Construction In terior 64 days Tue 3/1/05 Fri 5/27/05 0% $204,900.00 74.5 days

27 1.3 Final Building Inspection 1 day Wed 6/1/05 Wed 6/1/05 0% $9,840.00 4 day s

28 1.4 Gallery Exhibit 190 days Tue 3/1/05 Tue 11/29/05 0% $852,960.00 507.5 days

66 1.5 Complete Mock Exhibit Runthrough 1 day Wed 11/16/05 Wed 11/16/05 0% $1,600.00 4 day s

67 1.6 Sof t Opening 7 day s Mon 11/21/05 Thu 12/1/05 0% $3,920.00 7 day s

68 1.7 Customer Sign Of f 1 day Thu 11/17/05 Thu 11/17/05 0% $0.00 1 day

69 1.8 Grand Opening Ceremony 1 day Fri 12/2/05 Fri 12/2/05 0% $26,680.00 3 day s

70 1.9 Project Completion Celebration 1 day Fri 12/2/05 Fri 12/2/05 0% $5,000.00 0 day s

Risk Analysis Possible Risks - The top five are marked with an asterisk (*).

Because this is a time-constrained project, any schedule delays that occur will require

adding resources, therefore, adding additional costs to the project.

 Permits delayed

 *Imminent Union strike

 Weather delays

 Material not arriving on time

 Software complications

 *Donors of prototype equipment fail on their commitment

 Scope changes by customer

 *Final building inspection requires more work

 Graphics not completed on time

 Special audio tour equipment is delayed

 Receive poor feedback on visitor surveys

 Fixtures arrive damaged

 *Electrical estimates may not be adequate for actual load on the system

 *We experience a major earthquake

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RISK ASSESSMENT

This matrix explains the level and impact the top five risks have on the project. It assesses

the potential risk by the likelihood that the risk will take place, five being the highest

probability down to one being most improbable. It also looks at the level of impact the

occurrence of the risk will have on the project. Five would be the worst case scenario and

one having little impact.

RISK SCORING MATRIX

Defined Conditions for Risk Management Analysis

Project Objective

Relative or Numerical Scales

Very Low - 1 Low - 2 Moderate - 3 High - 4 Very High - 5

Cost Insignificant Cost Increase

< 5% Cost Increase 5-10% Cost Increase

10-20% Cost Increase

> 20% Cost Increase

Time Insignificant Schedule Slippage

Schedule Slippage <5%

Overall Project Slippage 5-10%

Overall Project Slippage 10-20%

Overall Project Slippage >20%

Scope

Scope Decrease Barely Noticable

Minor Areas of Scope Affected

Major Areas of Scope Affected

Scope Reduction Unacceptable to Client

Project End Item is Effectively Useless

Quality

Quality Degradation Barely Noticable

Only Very Demanding Applications Are Affected

Quality Reduction Requires Client Approval

Quality Reduction Unacceptable to Client

Project End Item is Effectively Unusable

RISK ASSESSMENT TABLE (using the above scoring matrix)

RISK EVALUATION

Risk Probability Cost Schedule Scope Quality Risk Score

Union Strike 90% 4 5 3 3 13.5

Donor of Prototype Fails to Deliver 60% 2 5 5 4 9.6

Final Building Inspection Requires More Work

40% 4 5 3 1 5.2

Electrical Estimates May Not Be Adequate for Actual Load on the System

40% 3 4 3 2 4.8

Major Earthquake 10% 5 5 3 4 1.7

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RISK RESPONSE MATRIX

This next matrix gives an overview of response that would take place should any of these

risks occur and those responsible for implementation of the response.

Risk event

Response: Accept, Reduce, Share,

Transfer

Contingency plan Trigger

Who is

Responsible

Union Strike Accept

Hire non-union workers to proceed with the work not requiring a high level of skill.

Union negotiations are not finalized by 10/31/04

Bill Morris

Donor of Prototypes Fail to Deliver Reduce

We will fill that space with a technology component from our retired Cyberplace exhibit.

Negotiations and commitment between The Tech Museum and their current technology business donor fails.

Steve Eisner

Final Building Inspection Requires More Work

Transfer

Two workers from each sub- contractor will be on hand the day of the inspection.

City of San Jose building inspector is not satisfied with the completed work.

Steve Eisner

Electrical Estimates Not Adequate for Actual Load on the System.

Transfer

Electrical sub- contractor has contingency plans to increase the capacity of the electrical system.

When full electrical load is applied to the system

Bill Morris

Major Earthquake Accept

Earthquake insurance has been purchased to cover partial economic losses.

This is not an event that can be anticipated.

Pat Helmling

Highest Risk #1 – Union Strike

The negotiations between workers and the Carpenters Union are not going well and it is

anticipated that the contract that the union is proposing will be rejected. The current

contract expires on October 31, 2004 which comes right at the beginning of our construction

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phase of the project. Because there is no way to predict how long a strike could go on, if

there is to be a strike, we are prepared to use our contingency plan.

We have contracted with several independent, non-union carpenters and have entered into

a will-call agreement with them. These selected carpenters will receive a bonus so that they

will prioritize our request should they be needed to work on our project. They have agreed

to make themselves available starting November 1, 2004 until otherwise notified by us, to

come to work on the project on a days notice. If a strike deems it necessary to call them on

the project, they will perform certain unskilled tasks that will keep the project moving and

will help to minimize the delay a strike would cause. These carpenters will not perform any

special skills work or deviate from original plans. The agreement is that they will work for

us for the duration of the strike and be paid union wages. This event will cause added costs

to the project and those overages will be charged to the budget reserve account.

Added Costs:

Bonus paid for immediate work

Additional time for fencing

Material costs

Overtime costs

Highest Risk #2 – Electrical Estimates Not Adequate for Actual Load on the System

In his experience, Bill Morris has encountered problems concerning specifications of the

electrical layouts. Bill has been in several situations where bids have been accepted from

electrical contractors that assure that their estimates are accurate and even exceed the

requirements necessary. On several of the occasions, once full load was placed on the

system, it proved too much for the specification. An electrical system failure could have far

reaching implications, but the cost to the project to change the specification at any point

during the project would be extremely costly. The major risk that this poses is, should this

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occur and because this risk would be so late in the project, it could delay the opening of the

gallery and place marketing efforts in jeopardy.

If we would have to postpone the grand opening, it would undermine all of the pre-opening

advertising. Because this has been deemed a time-constrained project, we would need to

add resources and schedule overtime to make sure the project is completed on time. The

contingency plan for this risk is to require from any electrical sub-contractor interested in

bidding on this project, a written guarantee that should specifications not perform to the

fullest extent that the said sub-contractor will provide all labor and materials and pay all

overtime costs to ensure we stay within time limits.

Communication Plan

Stakeholders:

Pat Helmling – Project Manager

Bill Morris – Head Construction Contractor and Construction Project Team Manager

Steve Eisner – Facilities Project Team Manager and The Tech Museum Director of Facilities

Lisa Meyers – IT Project Team Manager and The Tech Museum Director of IT Team

Facility Design Project Team

Graphics Project Team

Board of Directors

Store Project Team

Review Committee

Executive Committee

John Ito – Marketing Project Team Manager and The Tech Museum Director or Marketing

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Communication Plan Matrix

The following chart shows the layout of the how project information will be communicated to and from the various stakeholders

and the person(s) responsible for that communication.

Document Description

Audience Expected Action Comm. Class

Input Method Output Method

Frequency Resource

Project

Newsletter

All project

team members

and all Tech

Museum Employees

Communication

Project information

Optional Project update

forms and personal

observations

E-mail First Monday

of each month

Pat

Issue Log All project

team members

Update any issues

that could adversely affect

the project, i.e.

risks or delays

Mandatory E-mail to PM or

log in binder located in PM

office

Reviewed in

person

Daily Steve and

Pat

Project

Update

Meeting

All project

team leads

and managers

Interaction and

project updates

Mandatory In person Minutes

recorded and

sent to audience

Weekly

Mondays

Pat

Project

Status Report

All project

team members

Summarize

updates from update meeting

Mandatory Project update

forms, issue log and scope

change log, and outcomes from

Project Update Meeting

Short outline

of project statue e-mail

and hardcopy document

Weekly

Tuesdays

Pat

Scope

Update Meeting

Review

Committee and

Executive Committee

Update and

review of the project scope

statement

Mandatory In person Minutes

recorded and sent to

attendees via e-mail

Biweekly Pat

Scope

Change Log

All project

team

Record all scope

changes and their

Mandatory Scope Change

Form

Reviewed in

person

Daily Pat

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managers affects on the

project

Executive Update

Report

All project team

managers, Review

Committee,

Executive Committee

and Board of Directors

Update project status, including

potential risks or delays

Mandatory Project status reports, issue

log and scope change log

In person and hardcopy

documentation

Monthly Pat

Informal

Project Comments

All project

team members

Any comments

concerning the project. Ideas or

suggestions for improvement of

processes

Optional E-mail to Steve

or in person using bulletin

board in PM office

Posted in PM

office

As needed Steve

Advertising Report

All project managers

Update on the advertising and

opening of the completed project

Mandatory Marketing Department

communication

E-mail Biweekly John

Deliverables

Signoff

All project

managers and

Executive

committee

Review and

signoff of deliverables

Mandatory Project status

report and scope statement

In person On each

deliverable completion

date

Steve

Issue

Analysis

and Resolution

Meeting

All

concerned

parties and project

team managers

To resolve issues

and/or risks

Mandatory Issues log, face-

to-face

discussions

E-mail and

hardcopy

documentation

As necessary Pat and

Steve

The communication plan will be reviewed at the project update meetings for possible

changes. The proposed changes or additions will be reviewed by all project managers for

approval. Changes will be communicated through e-mail and an updated hardcopy will be

placed on the project communication bulletin board in the PM office. Changes will be

presented to the executive committee in the executive update report.

The Tech Museum holds a leadership committee meeting every week that the project

manager has been invited to attend. This meeting consists of organization wide information

and is where top decisions are made that impacts the organization as a whole. By attending

this meeting the project manager will be able to have prior knowledge of any decisions that

will affect the project, and will communicate all pertinent project information to this

leadership team. For the duration of the project, an informal project update will be a

permanent agenda item.

All issues and/or problems will be logged in the issues log that will be reviewed daily by the

project manager and the facilities team manager. It will be the responsibility of the project

manager and the facilities team manager to follow up on the issues and try to resolve them

at this level. If the issue can not be resolved, and a risk factor is involved, then a special

meeting will be called that will include those citing the issue and all project team managers.

If there is still no resolution to the issue/risk, a review will be conducted by the executive

committee who will then decide on a solution to minimize or neutralize the risk. If necessary

a new course of action will be determined.

Performance Measurement and Control Approach

The quantitative measures that will monitor project cost and schedule performance will be

the use of budget and tracking reports generated by the project software. We will be

looking at deviations from baseline numbers in comparison to time phased work completed.

Using this information we can determine affects on the budget down to the individual work

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packages, and if we are encountering activity delays. We will use the Gantt Tracking Chart

to determine the critical path of the project and identify those task that need to be given

special attention. We will include a measurement report as part of the project status report

and the executive analysis report. Should it be determined that action needs to be taken,

we have addressed those steps earlier in this report.

Qualitative measures will be performed primarily by Bill and Steve, through scheduled

project walkthroughs, who will bring to the project manager’s attention any areas of

concern. It is our commitment to our customer to adhere to the high quality of standards

that this museum prides itself on by producing a high quality architectural structure, as well

as, presenting to their visitors, state of the art exhibit components. Between the vast

experience of Bill in the construction business and the knowledge of customer expectation

from Steve, we can be sure that this team is well qualified to measure the quality of the

project during the building and design phases.

Audit Process and Timetable

- Unscheduled Audits

The review committee will conduct surprise audits of both project cost and schedule, and

perform project site audits through on-site inspections of work being performed. These

audits will include short one-on-one impromptu meetings with project team members to

determine the level of team dynamics.

- Deliverable Audits

Audits will be scheduled on the date of completion for all project deliverables. Once the

audit is complete and we are assured of customer satisfaction, the deliverable signoff

agreement will be signed.

- Team Phase Audits

As each phase comes to a close an audit will be performed by all involved parties. All

budget and schedule reports will be examined and a team walkthrough will be conducted to

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determine if project work does or does not meet quality standards. If it is deemed that

improvements need to be made, the team will determine who will be responsible for the

rework and what the additional costs and scheduling time will be. Once the rework is

completed, the process will be repeated until all parties are satisfied we have met the

quality criteria.

- Final Audit

The final audit will be conducted by the review committee, along with an outside project

consultant. Once the audit is complete, the audit team will take its findings and

recommendations to the Executive Committee for project success evaluation. The audit will

look at all areas of qualitative and quantitative performance measures, as well as analyzing

team interaction and motivation levels. The audit team will also provide a lessons learned

report in the final audit packet. The auditors will review the project manager in all areas of

cost and schedule performances, and the level of cohesiveness maintained by the project

team. The communication plan will also be reviewed to determine if the content was

practical, informational, and/or significant to its target audience.

Customer Review

After all audits have been finalized and the Executive Committee has presented its

conclusions, a review will be conducted by Board of Directors that will determine if the

project has been successfully completed. Along with the findings presented by the

Executive Committee, the Board will measure the quality of the delivered product by

conducting visitor surveys during the two weeks of soft opening. They will look at reaction

to the design of the building, the interior design, and exhibit content. This Board will also

make a judgment on the quality of the management of this project by comparing the

project specifications outlined in the scope statement to the end product to determine if it

meets customer project expectations.

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Conclusion / Recommendation

Visitor surveys indicate that an exhibit dedicated to computer technology is long overdue.

This Exhibit Expansion Project will benefit The Tech in many ways. First, it will supply

added revenue to the bottom line, it will give to the community an exhibit of area relevance,

it will serve as a student learning vehicle, and it will give past visitors a reason to come

back to The Tech. Finally, this is an opportunity for The Tech Museum to show that they

listen to the community and area visitors by giving them the experience they have been

seeking and requesting.

References

None