Project Summary Report
djownson33ah
wk_5_team_assignment.xlsxCover Page
| Project Requirement/Risk/Cost Paper |
| Learning Team A: Amy Johnson, Anthony Cunha, Ariell Williams, Damien Johnson, and Daniel Bailey |
| CPMGT/300 |
| October 10, 2016 |
| Mr. John Sessions |
Project Requirements Matrix
| Requirements | Phase of Project | Cost to complete | Responsible Party | Duration to Complete |
| Business Loan: The new shop may require a business loan to obtain. | The loan is needed for work to be started and is used in the planning phase. | Closing cost of 1 to 2% of the business loan of $500,000. | The money would likely come from investors that work directly with Goodyear. The client would be the one obtaining the business loan. | 20 Days to find best interest rates and complete full loan process |
| Building Space: The new shop will require either an existing building that may or may not require alterations - or - the creation of an entirely new building. | The location of the build is needed for the work to start and in the planning phase. | Already existing auto garages are available with parking and multiple garage bays for $250,000 | Project Manager is to work with the client on an optimal location. | 45 Days to find a piece of land or usable building to be renovated |
| Construction (Layout, Labor, etc.): Regardless of the outcome on building space, the new shop will require some construction advice on the layout of the new shop and any costs associated with working with a third party company. | Construction exists only in the execution phase of the project. | Renovation budget will be $100,000 for a pre-existing location | Project Manager will work with the construction team to ensure the thoughts and ideas of the client are reflected in the design. | Renovation: 120 Days Construction: 180 Days |
| Business License: The new shop will require a business license to conduct business. | The business license is a requirement before any building can be started - planning phase. | Automotive repair license in the state of Ohio cost $225.00. (Ohio board of motor vehicle repair, 2016) | The project manager has delegated a planning and facilities team to work with construction and on getting the business license in time. | 30 Days to obtain license |
| Equipment/Machinery: The new shop will require the appropriate shop equipment and machinery. This equipment includes lifts, mount and balancers, alignment machines, etc. | The gain or purchase of equipment is in the planning but the use of is in the execution phase [I suspect you will purchase the equipment at the beginning of the execution phase. Operation (use) of the equipment begins when the project is finished] | Cost of equipment varies and the cost will be a minimum of $50,000 | The project team will order the proper equipment. | 60 Days to find appropriate equipment |
| Tools: Many mechanics come equipped with their own tools, however, the shop will need to have the basics on hand such as oil guns and various types of wrenches. | Purchase of hand tools is done in the execution phase | Cost of tools should be at a minimum - $1500. | The project team will ensure the appropriate tools are available to the employees in time. | 15 Days to supply basic tools |
| Shop Supplies: The new shop will require shop supplies such as oil, tires, rims, etc. | With the purchase of shop required items for sale is in the execution phase | All tires, oil, and other supplies will be replaced once the customer purchases with an initial investment of $20,000 | The project team will order all appropriate shop supplies. | 45 Days to find and order needed supplies to be shipped to shop |
| Office Equipment/Computers: The new shop will require additional equipment for the office part of the business. This equipment includes computers with the proper business information systems that track inventory, costs, and customer information. | Office equipment and build out of office is execution phase | Office equipment will cost $15,000 | The project team will order the office equipment. | 30 Days to obtain proper computer equipment and software |
| Office Supplies: In addition to shop supplies, the new shop also requires office supplies such as paper, pens, staplers, etc. | Office supplies are listed in the planning phase and purchased in the execution | The average cost of business supplies for a small business is $19/month (Small business, 2016) | The project will order the office supplies | 1 Shopping trip to a office supply store, then monthly ordering after initial buy [monthly odering - again leaking over into operations] |
| Hire Manager: The new shop will require a new manager to run operations. | Hiring of new managers and staffing is in the performance and monitoring phase | The company will pay the manager of the store $60,000/year | The customer [because this is a business "customer" here and elsewhere is a bit confusing. Who is the sponser?] will be in charge of hiring the management staff. | Post job: 21 Days Interview/Selection Process: 14 Days |
| Hire Certified Employees The shop requires certified mechanics to execute daily shop operations. | Any staffing and interviews are done by upper management in the performance phase | Auto mechanics make an average of $15/hour and the shop will need at least 4 mechanics. The cost will be $2400/week for the life of the project (Pay scale, 2016) | The customer will handle the hiring of the all personnel. | Post job: 21 Days Interview/Selection Process: 14 Days |
| Train Certified Employees: The new employees will be required to be trained on how to properly operate the machinery and interact with the customers. | Training is also a part of the performance phase | Certified mechanics are trained on the equipment in school and will only need a 1 week refresher and will cost $2400. | The customer will be in charge of ensuring the staff is trained appropriately. | 14 Days to train new employees |
| Marketing: The new shop requires the appropriate marketing to advertise to the neighborhood and make them aware of the new services available to them. | Marketing is applied once the project is complete and apart of the closure phase. [you may wish to begin this earlier so you have customers lined up at the door on opening day] | The startup marketing cost will be $5000 | The project team will work with the customer's marketing team to collaborate on how to properly work together. | 25 Days to set up marketing techniques and designs to advertise new shop location |
| References: | ||||
| Ohio board of motor vehicle repair. (2016). Retrieved from http://mvrboard.ohio.gov/registration.stm | ||||
| Pay scale. (2016). Retrieved from http://www.payscale.com/research/US/Job=Automobile_Mechanic/Hourly_Rate | ||||
| Small business. (2016). Retrieved from http://smallbusiness.chron.com/average-cost-per-month-office-supplies-12771.html |
Learning Team A Project Requirements Matrix Goodyear Expansion Project CPMGT/300
Risk Assessment Matrix
| Risk | Potential of Occurring | Level of Impact | Mitigating the Risk |
| Cash flow- if the cash flow is slow or stopped then the project cannot proceed. | Medium Potential | High Risk, a lack of cash flow could cause the entire project to fail | Goodyear's investment team have been making money off of this company for a long time. It is essentially up to the Project Manager to ensure that their money is being spent wisely, but must also communicate any changes in costs immediately. It is not an option to run out of funds, so the PM must ensure a detailed, error-proof budget. |
| Business license- needed before construction can begin, problems with state and county | Low Potential | Medium, Research is required for the location of the business to find out if a business license is available and the requirements for getting the license. | As the opening date for the new shop approaches, the company will look at getting the finalized licensing, having state inspections and ensuring they meet all standard regulations. A new shop can suffer by not meeting all requirements to operate efficiently and not meeting codes required by the state. Goodyear management will ensure that all equipment is standard, all employees meet all qualifications and attend trainings, the building structure is up to code and services are completed with the highest quality of products and execution procedures. In doing so, Goodyear can expect to pass all inspections and regulations to acquire all licensing to operate. |
| Inspections for building- building must pass inspections to open for business | Low Potential for not passing - the shop is expected to pass | Medium, A bad inspection could be detrimental but the training of the mechanics will keep inspection problems to a minimum. | |
| Building/remolding- many risks involved with building or remolding, deliverables being late or damaged. | Medium Potential - accidents can happen. | Low, garages are available all over the country and renovation will be minimal if the garage was already designed for an auto shop. | |
| State regulations- any and all state regulations, building, business, tax, safety | Medium Potential - politics change all the time. | Low - As long as the team stays aware of what is needed, there shouldn't be any problems. | |
| Federal- regulations for business, OSHA, ASE Certifications | Medium Potential - politics change all the time. | Low - Again, as long as the team is aware of all regulations, the project should not be impacted too much. | |
| Vendors- supplying the right amount of tires and parts at the right price | Medium Potential - the project cannot expect that there will not be any delays. | Medium - There are contracts in place to ensure products are delivered on time, however, uncontrollable problems can occur. | A business relies on the products they have in stock or on hand. If they do not have the proper supplies or enough of the parts they cannot conduct their services to their fullest capability. While ordering parts and supplies it is possible for a vendor to fall short on the delivery end. Multiple things could happen, not enough in stock to cover orders, shipping errors, miscommunication, errors on order invoices and much more. The shop management will conduct double checks on all orders to ensure no mistakes are being made on invoices. A shop floor manager will be in charge of taking the initial order of supplies they will need for the next month, send the order to the office managers who will conduct their double check and get the approval. Picking the most respectable vendors will also help prevent such risks from happening. Looking at their success rates, reviews, and competitive pricing is all a part of choosing which vendor is best for the new shop. Of course there will be multiple vendors but all will need to go through the same quality checklist to ensure they will provide excellent service and get the orders in correctly and shipped to the shop on time. The new shop should leave enough products and supplies on stock to avoid this potential, if there should be an error in shipping or supplies being back dated. |
| Competition- competition is good for business but can also put strain on business | Medium Potential - business is business. | High, location brings in customers, ensuring people will be able to get into the parking lot will help people come to the shop. A bad location alone can doom the shop before it ever changes its first tire. | Goodyear provides excellent customer service and top of the line products and services. Focusing on those core standards and striving to provide the best products and services will help prevent the loss of customers and cash flow in the business. Also, staying aware of current deals, innovations in the industry and new products like to stay ahead of the completion will help. If Goodyear is to start falling to a competitor damage control will be administered. |
| Market risk- the possibility for investors to lose money in the business | Medium Potential - the economy is unpredictable. | Medium - As long as there are cars on the road, there will be a need for a mechanic or tire shop. | |
| Hiring staff- knowledge technicians are needed to operate the business, wages to be competitive. | Low Potential - The company knows how to effectively hire employees. | High, Qualified technicians are a must for success, finding them and offering competitive wages could be difficult | Goodyear's management staff has been hiring for this company for many years and has an efficient system of collecting applications and interviewing every candidate. Certified mechanics are always needed, however great customer service skills are also a must. |
Learning Team A Risk Assessment Matrix Goodyear Expansion Project CPMGT/300
Project Cost Breakdown
| Requirement | QTY. | Price | Parts Total | Labor Hours | Labor Wages | Labor Total | Grand Total | ||
| Building | 1 | $250,000.00 | $250,000.00 | 0 | $250,000 | ||||
| Construction Quote | 1 | $100,000.00 | $100,000.00 | 0 | $100,000 | [column G needs $] | |||
| Business License | 1 | $225.00 | $225.00 | 0 | $225 | ||||
| Equipment/Machinery | |||||||||
| Launch Heavy Duty Full Diagnostic Machine | 2 | $1,800.00 | $3,600.00 | 0 | $3,600 | ||||
| Bend Pak Lift - 10,000 lb. Capacity & Installation | 3 | $2,800.00 | $8,400.00 | 18 | $50.00 | 900 | $9,300 | ||
| Ranger Tire Changer & Wheel Balancer Combo | 2 | $4,000.00 | $8,000.00 | 0 | $8,000 | ||||
| Ranger Alignment Machine | 1 | $11,000.00 | $11,000.00 | 0 | $11,000 | ||||
| Oil Changing Machine | 3 | $2,000.00 | $6,000.00 | 0 | $6,000 | ||||
| Air Conditioner Pumping Machine | 1 | $2,000.00 | $2,000.00 | 0 | $2,000 | ||||
| Oil Extractor | 3 | $500.00 | $1,500.00 | 0 | $1,500 | ||||
| Floor Jacks | 3 | $1,500.00 | $4,500.00 | 0 | $4,500 | ||||
| Air Compressor | 2 | $3,000.00 | $6,000.00 | 0 | $6,000 | ||||
| Equipment Total | $51,900 | ||||||||
| Tools | |||||||||
| 413 pc. Craftsman Mechanics' Tool Set | 2 | $400.00 | $800.00 | 0 | $800 | ||||
| Torque Wrench | 2 | $75.00 | $150.00 | 0 | $150 | ||||
| Fuel Injector Tool Kit | 1 | $125.00 | $125.00 | 0 | $125 | ||||
| Crankshaft tool | 1 | $100.00 | $100.00 | 0 | $100 | ||||
| Oil Pans | 3 | $50.00 | $150.00 | 0 | $150 | ||||
| Assorted Specialty Tools | 1 | $500.00 | $500.00 | 0 | $500 | ||||
| Tools Total | $1,825 | ||||||||
| Shop Supplies | |||||||||
| Oil (Various weights) | 1 | $5,000.00 | $5,000.00 | 0 | $5,000 | ||||
| Tires (Various brands and sizes) | 1 | $5,000.00 | $5,000.00 | 0 | $5,000 | ||||
| Rims (Various brands and sizes) | 1 | $5,000.00 | $5,000.00 | 0 | $5,000 | ||||
| Other Fluids | 1 | $5,000.00 | $5,000.00 | 0 | $5,000 | ||||
| Shop Supplies Total | $20,000 | ||||||||
| Office Equipment | |||||||||
| Computers/Cash Registers | 3 | $3,000.00 | $9,000.00 | 0 | $9,000 | ||||
| Office Chairs | 3 | $1,000.00 | $3,000.00 | 0 | $3,000 | ||||
| Printer/Fax/Copier | 1 | $2,000.00 | $2,000.00 | 0 | $2,000 | ||||
| Phones | 3 | $50.00 | $150.00 | 0 | $150 | ||||
| Waiting Room Chairs | 8 | $100.00 | $800.00 | 0 | $800 | ||||
| Television/DVD Combo | 1 | $750.00 | $750.00 | 0 | $750 | ||||
| Coffee Machine | 1 | $200.00 | $200.00 | 0 | $200 | ||||
| Office Equipment Total | $15,900 | ||||||||
| Office Supplies | |||||||||
| Paper | 1 | $100.00 | $100.00 | 0 | $100 | ||||
| Toner | 3 | $100.00 | $300.00 | 0 | $300 | ||||
| Paper Clips | 10 | $5.00 | $50.00 | 0 | $50 | ||||
| Staples | 10 | $5.00 | $50.00 | 0 | $50 | ||||
| Staplers | 3 | $20.00 | $60.00 | 0 | $60 | ||||
| Soap | 12 | $0.75 | $9.00 | 0 | $9 | ||||
| Toilet Paper | 100 | $0.50 | $50.00 | 0 | $50 | ||||
| Seat Covers | 12 | $5.00 | $60.00 | 0 | $60 | ||||
| Office Supplies Total | $679 | [merge cells C48 thru G48] | |||||||
| Grand total | $440,529 | [merge cells C49 thru G49] |
Learning Team A Project Cost Breakdown Goodyear Expansion Project CPMGT/300
Comments
| Team A, | |||||||||||||
| Nicely done. As a reminder, be sure to format all the tables the same (color scheme, font, merged cells, text wrapping, cell margins, centering, etc. Think about the designations (names) used for stakeholders. For example, the simple stakeholder term “customer,” is that the retail customer or the customer of the project? You might want to make a short data dictionary for the team so stakeholder terms don’t get mixed up between all the individual submissions. The same holds true for the name of the business and other terms used as you pull together the final WK5 paper. Think about expenses for the project. Usually things like buying equipment and material gets covered but office expenses, expenses for hiring and training employees, travel, marketing, etc. sometimes get missed. If you are providing a new product or service, either internally or externally, you may have to “sell it” to certain stakeholder groups. As an example, the obvious one for a retail business is Grand Opening, or Coming Soon. Will that be a part of the project or will that be handled by operations? As we have discussed, is that in the scope or not in the scope? The answer will impact the schedule and budget as a minimum. A lot is happening in your project so be sure to get the order and dependencies correct in the WK4 schedule. | |||||||||||||
| ` | Unsatisfactory | Needs Improvement | Meets Requirements | ||||||||||
| Points | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Score* | ||
| Content & Development | 70% | x | 7.00 | ||||||||||
| Organization & Structure- Introduction, conclusion, transitions | 10% | x | 1.00 | ||||||||||
| Format- APA, Citations | 10% | x | 1.00 | ||||||||||
| Grammar, Punctuation, Spelling, Readability, Word Count | 10% | x | 1.00 | ||||||||||
| Total | 100% | Total | 100% | ||||||||||
| Assignment Grade | A | ||||||||||||
| % of Total Grade | 5% | Points | 5.00 | ||||||||||
| Other (if applicable): | Days Late: | = | 0.00 | ||||||||||
| Excessive Quotes: | = | 0.00 | |||||||||||
| * x x grades inbetween | Total Points: | 5.00 |
