PROJECT MANAGEMENT REPORT

ANIQA VIQAR AHMED JAVED BISMA SALAM SALMA VIQAR ROMANA MAHMOOD MBA-V-D

TABLE OF CONTENTS
1. 2. DESCRIPTION OF THE PROJECT SHOWCASE ....................................................................................... 3 PROJECT SCOPE STATEMENT ................................................................................................................ 5 2.1 PROJECT OBJECTIVE ............................................................................................................................ 5 2.2 DELIVERABLES ..................................................................................................................................... 5 2.3 MILESTONES ........................................................................................................................................ 5 2.4 TECHNICAL REQUIREMENTS ............................................................................................................... 6 2.5 LIMITATIONS AND EXCLUSIONS .......................................................................................................... 6 2.6 CUSTOMER REVIEW ............................................................................................................................ 6 3. PROJECT PRIORITY MATRIX ................................................................................................................... 7 3.1 TIME .................................................................................................................................................... 7 3.2 COST .................................................................................................................................................... 7 3.3 PERFORMANCE ................................................................................................................................... 8 4. 5. 6. WORK BREAKDOWN STRUCTURE ......................................................................................................... 9 RESPONSIBILITY MATRIX ..................................................................................................................... 10 DEVELOPING A PROJECT PLAN............................................................................................................ 11 6.1 NETWORK INFORMATION................................................................................................................. 11 6.2 6.3 6.4 7. NETWORK DIAGRAM OF PROJECT ................................................................................................ 0 ACTIVITY ON NODE NETWORK...................................................................................................... 0 CRITICAL PATH ................................................................................................................................ 0

COST AND FINANCES OF THE PROJECT ................................................................................................. 0 Initial Cash Outlay ..................................................................................................................................... 0 Investment by each partner...................................................................................................................... 1 Forecasted Income Statement - Show Case ............................................................................................. 2 NPV - Show Case ....................................................................................................................................... 4 Payback Period - Show Case ..................................................................................................................... 4 Annual Return to each partner ................................................................................................................. 4

8. RISK ASSESSMENT OF THE PROJECT ......................................................................................................... 5 8.1 RISK PORTFOLIO FOR LAUNCHING SHOWCASE .................................................................................. 5 8.1.1 RENTING HOUSE .......................................................................................................................... 5 8.1.2 CAF ............................................................................................................................................. 5 8.1.3 SHOWCASE ................................................................................................................................... 5

8.1.4 MARKETING.................................................................................................................................. 5 8.1.5 FINANCES ..................................................................................................................................... 6 8.2 RISK ASSESSMENT FORM................................................................................................................. 7 8.3 RISK SEVERITY MATRIX ................................................................................................................... 9 8.4 RISK RESPONSE MATRIX................................................................................................................ 10 9. THE SOCIAL IMPACT ASSESSMENT.......................................................................................................... 12 10. GANTT CHART ....................................................................................................................................... 13 11. MINUTES OF MEETING.......................................................................................................................... 14

1. DESCRIPTION OF THE PROJECT SHOWCASE

We are a group of five entrepreneurs who plan to launch a designers outlet which will show case and exhibit indigenous designerspret line of clothes, jewellery, dcor and furniture. We plan to rent a house in Islamabad for this purpose. The house will be spacious and well located within the reach of people so it can help us attract customers. We will have a complete makeover of the house to make it luminous and to the latest standards so designers would want to rent a space in our outlet and the customers love it at the first glance. This form of specialized business will bring designers from the same and related industries under one roof which will be beneficial for both the designers and the customers in this current competitive time when it is very difficult and expensive for a designer to make an impressive outlet in Islamabad. Similarly, most of the designers are not present in Islamabad which leaves customers with limited options. The outlet will not only exhibit designers but also will be having a caf which will be out sourced. We plan to have a themed caf along with designers outlet in order to attract more people. It will take at least one to two weeks in searching a good house for rent in F-6 sector. The additional work for renovation and gradation will take up to 2-3 months. As per our estimate, the outlet will be ready for launch in around 5 months. Meanwhile we will be meeting up with designers so our space is rented out completely before launch. The setup of the outlet will be exclusive and its dcor will require our complete attention and extensive work. We also plan to provide the sales people of our own who will be paid by us. We will be having a centralized sales system for which special software will be designed. And all the utilities will be paid by us. We will be having adequate security arrangements and also will be responsible for all the promotion and advertisements of the brands present in our out let. The estimated up front expenditure is 16 million rupees and estimated duration for launch is 5 months.

Our team: Aniqa Viqar Ahmed Javed Bisma Salam Salma Viqar RomanaMehmood

2. PROJECT SCOPE STATEMENT

2.1 PROJECT OBJECTIVE
To launch a trendy designer outlet and a caf on 16thNovember, 2011 at a cost not to exceed Rs. 16 million.

2.2 DELIVERABLES
A 5090 (5500 square feet) finished outlet. A furnished cafe with all the appliances to include range, oven, microwave, dishwasher, fryers, refrigerator, television, Wi-Fi and comfortable seating arrangements. High efficiency central cooling and heating system with programmable thermostat. Centralized point of sale system in order to facilitate the designers.

2.3 MILESTONES
The project will initiate on 1st July, 2011. Secure all permits and approvals by July 14, 2011. Place finalization and renting it on July 28, 2011. Framing, sheathing, plumbing, electrical, wooden flooring, false ceiling and mechanical inspection passed August2, 2011. Secure vendor contracts by August 4, 2011. Renovation work begins on August 5, 2011. Applying for a telephone, internet and cable connections by July 29, 2011. Order for Inventory management software on July 31, 2011. Meeting with designers from 1 August to 11 August. Renovation work completed by October 24, 2011. Hiring sales staff by 14September, 2011. Purchasing the kitchen appliances, electronic equipment and miscellaneous items by 3 November, 2011. Secure contract with designers by August 11, 2011. Training of sales force by 24September, 2011. Marketing campaign started from October 25, 2011. Setting up the caf with furniture, Wi-Fi and television and music system November 11, 2011. Launch November 16, 2011.

2.4 TECHNICAL REQUIREMENTS

Latest kitchen appliances and electronic equipment for caf. Following HACCP-Based SOPs for Kitchen Food requirements Bright lighting and false ceiling Wooden flooring Generator, 15 KVA Mazda Diesel Generator, Japanese engine. Television Sony LCD 40

2.5 LIMITATIONS AND EXCLUSIONS

The outlet will be designed to the specifications and design of the team. Designers will provide their stuff and it will be showcased only in the allotted space Designer will be responsible to fill in the empty space on sale of their items Our sales team will be responsible for the sales Advertisement of the outlet will be our responsibility Utility bills for the display units will be paid by us but the caf people will pay their own dues. Each designer will be charged a specific percentage as service fee on their sales revenue in addition to the rent of the space allotted. Delivery of sold items will also be our responsibility.

2.6 CUSTOMER REVIEW

Ourselves and designers.

3. PROJECT PRIORITY MATRIX

Scope

Quality

Time

Performance

TIME CONSTRAINT ENHANCE ACCEPT

PERFORMANCE

COST

3.1 TIME
Time is a constraint because we have planned to launch an outlet and caf on a specific date for which extensive advertisement has been done and contracts have been made with the designers to launch their products on a specified date.

3.2 COST
Since we have a limited budget and tend not to exceed the specified amount our team have opted cost as an enhancer as we are inclined to optimize our project success on the stipulated budget and make the best of the resources to reduce cost.

3.3 PERFORMANCE
Viewing our project we think that time and cost are the most important elements though not compromising on the performance level but giving leeway to it but making sure performance does not lower making it hard to meet the schedule.

4. WORK BREAKDOWN STRUCTURE

SHOWCASE OUTLET

Renting house

Showcase

Cafe

Finances

Operating Management software

HR

Marketing

Inspection

Storage and racks

Installation and Decor

Budget

Hiring of sales force

Advertisement

Contracting with vendors

Meeting and Contracting with designers

Purchasing furniture and applainces

Training of Sales force

Installation of phone, cable and internet Utility connections and conversions

Air conditioning

Paint

Paint

Lights

Lights

Flooring

Wooden Flooring

5. RESPONSIBILITY MATRIX
PROJECT TEAM ANIQA AHMED BISMA SALMA ROMANA R S R R R S R R R S R S R R

TASK Applying for permits and approvals Searching and renting house Contracting with vendors Managing Finances Meeting with designers Meeting for outsourcing caf Ordering a tailor made inventory management software Purchasing kitchen and electronic appliances Hiring and Training of sales force Advertising and marketing campaign Launch R= Responsible S= Support

S R

R R S

S S R R

R R R R

10

6. DEVELOPING A PROJECT PLAN

6.1 NETWORK INFORMATION ACTIVITY
A B C D E F G H I J K L M N O P Q R

DESCRIPTION
Showcase outlet Approvals and permits Finding and renting house Utility connections & conversion Framing and inspection of house Applying for telephone, cable and internet connections Contracting with vendors Flooring Lighting Paint Air conditioning Order inventory management software Meeting and contracting with designers Purchasing furniture, appliances, crockery and decoration items Hiring sales staff Training sales force Marketing and promotion Dcor and final setting Launch

DURATION PREDECESSOR
14 14 3 5 4 2 38 17 15 10 7 10 10 7 10 20 8 5 A B B B D F G H I C E J K N L M,O P,Q

11

6.2 6.3 6.4

NETWORK DIAGRAM OF PROJECT ACTIVITY ON NODE NETWORK CRITICAL PATH

7. COST AND FINANCES OF THE PROJECT

Initial Cash Outlay

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Legal fee for approvals & permits Commission to the property dealer Rent & Security for the house Ptcl connection charges & conversion (gas, elec) fee Renovation design fee (architect) Renovation work (5500 sq ft x Rs. 1200) Security cameras installation Fixtures & fittings (racks, reception etc) Music system installation Computer with software & accessories for reception Office setup for the management Kitchen & caf appliances Decore (wall hangings, welcome logo etc.) Interior designer fee Air conditioners (with fitting) LCD TVs Purchase of a delivery van Advertisement & Marketing campaign for launch Setting of caf (furniture etc.) Generator 5 KV Launch through a PR firm Grand Total of the Cash Outflow 50,000 100,000 2,600,000 25,000 200,000 6,600,000 250,000 350,000 250,000 200,000 500,000 600,000 250,000 100,000 1,200,000 520,000 750,000 300,000 215,000 500,000 200,000 15,760,000

Notes
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Legal fee plus lobbying with CDA officials & District Administration Half month rent paid as commission to the dealer (Rs. 200,000 x 0.5) One year rent paid in advance & one month rent as security (Rs. 200,000 per month) PTCL connection & conversion of electricity & gas tariff to commercial Architect fee for the complete designing of the outlet Complete renovation (flooring, ceiling, paint, lighting etc.) 16 security cameras with recording (complete installation) Wood and metal work in the outlet (racks, shelves etc.) Installation of speakers in all corners of the outlet with base unit at the reception Computer with printer, bar code scanner & custom inventory management software Office table, chairs, couches, tv, water dispenser, mini fridge, computer, fax etc. Cooking appliances, baking ovens, deep friers, freezers, point of sale etc. Metal logo at the reception, wall art for the beautification of the outlet Interior designer for consultation for the decore and setup of the outlet 3 standing / tower air conditioners & 12 wall mounted split units 5 - 40 inches Sony Bravia LCDs with Dish Tv Purchase of a slightly used Shehzore pick up van for the delivery of furniture Advertisement in the newspapers, getting moppies, hoardings & billboards Caf furniture ( tables, chairs, couches, wall paintings etc.) Generator will work on natural gas and also have an automatic start system Launch of the outlet through a renowned PR / event management company

Investment by each partner

Mr. Ahmed Ms. Aniqa Ms. Bisma Ms. Romana Ms. Salma 20% 20% 20% 20% 20% 3,152,000 3,152,000 3,152,000 3,152,000 3,152,000

Forecasted Income Statement - Show Case

Year 1 Revenues Rent from the outlet (designers) Rent from the caf Service charges (15 % of sales) Delivery charges (Rs. 1000 per trip) Total Revenue Less Expenses Rent of the house Electricity bills Gas bills Telephone bills Security guards salary Sales staff salary Cleaning staff salary Office stationary Shopping bags Maintenance of the van Driver's salary Maintenance of the outlet Miscellaneous Advertisement expense Total Expenses Operating Profit 19 Less Taxes Year 2 Year 3 Year 4

1 2 3 4

8,400,000 1,200,000 900,000 180,000 10,680,000

9,408,000 1,320,000 1,350,000 300,000 12,378,000

10,536,960 1,452,000 1,800,000 480,000 14,268,960

11,801,395 1,597,200 2,700,000 720,000 16,818,595

5 6 7 8 9 10 11 12 13 14 15 16 17 18

2,400,000 450,000 120,000 60,000 360,000 600,000 120,000 25,000 25,000 20,000 144,000 50,000 25,000 800,000 5,199,000

2,640,000 495,000 130,000 65,000 400,000 672,000 132,000 35,000 40,000 25,000 162,000 50,000 30,000 750,000 5,626,000

2,904,000 545,000 140,000 70,000 440,000 752,640 145,200 45,000 50,000 30,000 180,000 50,000 35,000 550,000 5,936,840

3,194,400 599,500 150,000 75,000 484,000 842,957 159,720 45,000 55,000 35,000 192,000 50,000 40,000 350,000 6,272,577

5,481,000
1,041,390

6,752,000
1,282,880

8,332,120
1,583,103

10,546,018
2,109,204

Net Operating Profit

4,439,610

5,469,120

6,749,017

8,436,814

Notes 1 Rs. 700,000 per month in first year and 12 % increase every year 2 Rs. 100,000 per month in first year and 10% increase every year Sales forecast: yr 1 - 500,000 p/m, yr 2 -750,000 p/m, yr 3 -1,000,000 p/m, yr 4 -1,500,000 3 p/m 4 trips per month forecast: yr 1 - 15, yr 2 - 25, yr 3 - 40, yr 4 - 60 5 Rs. 200,000 per month in first year and 10 % increase every year 6 average taken for the whole year & 10 % increase every year 7 average taken for the whole year & Rs. 10,000 increase every year 8 average taken for the whole year & Rs. 5,000 increase every year 9 2 guards at Rs. 30,000 per month for the first year and rounded 10 % increase every year 10 4 sales people at Rs. 50,000 per month for the first year and 12% increase every year 11 1 sweeper at Rs. 10,000 per month for the first year and 10 % increase every year 12 Rs. 10,000 increase in years 2 & 3 with increase in activity and stable for year 4 (EoS) 13 Increase with decreasing proportion due to discounts on large orders and affiliation 14 oil change, filter etc. - inflationary increase forecasted Year 1: Rs. 12,000 p/m - year 2: Rs 13,500 p/m - year 3: Rs. 15,000 p/m - year 4: Rs. 16,000 15 p/m 16 Maintenance of cameras and other fixtures / fittings (fixed) 17 Precautionary head with petty expenses also catered. Rs. 5,000 annual increase forecasted 18 Advertisement in newspapers, through billboards, hoardings, moppies etc. 19 19 % tax rate applied for the first 3 years and 20 % for the 4th year as per govt. policy 19 % tax rate where income is between Rs. 4,550,000 - 8,650,000 & 20 % for above

NPV - Show Case

Discount factor @ 18 % 1.0000 0.8475 0.7182 0.6086 0.5158 NPV

Year 0 1 2 3 4

Cash flow 15,760,000 4,439,610 5,469,120 6,749,017 8,436,814

PV -15,760,000 3,762,381 3,927,837 4,107,660 4,351,615

389,493

Payback Period - Show Case

Year 0 1 2 3 4 Cash Outflow 15,760,000 0 0 0 0 Cash Inflow 0 4,439,610 5,469,120 6,749,017 8,436,814 Payback Period = Balance 15,760,000 11,320,390 5,851,270 -897,747 -9,334,561 2.87 2 years, 10 months & 13 days approx.

Annual Return to each partner

0 1 2 3 4 Ahmed -3,152,000 887,922 1,093,824 1,349,803 1,687,363 1,866,912 Aniqa -3,152,000 887,922 1,093,824 1,349,803 1,687,363 1,866,912 Bisma -3,152,000 887,922 1,093,824 1,349,803 1,687,363 1,866,912 Romana -3,152,000 887,922 1,093,824 1,349,803 1,687,363 1,866,912 Salma -3,152,000 887,922 1,093,824 1,349,803 1,687,363 1,866,912

28.17% 34.70% 42.82% 53.53%

8. RISK ASSESSMENT OF THE PROJECT

There will be less risk in the initial stage of launching the caf and outlet but as the work progresses then risk will increase from time to time which will result in higher cost or may slow the productivity of work. Some of the potential risk factors are below: Unavailability or shortage of the latest equipment. Continuous increase in the prices of utility services. Load shedding. Increase in the prices of wood and other raw materials. Bad marketing campaign. Unavailability of furniture and crockery.

8.1 RISK PORTFOLIO FOR LAUNCHING SHOWCASE

8.1.1 RENTING HOUSE Rentals exceed the expected budget 8.1.2 CAF Hardware malfunctioning of the appliances Fixtures going loose and worny Internet issues House not on the desired location

8.1.3 SHOWCASE System freezing: thermostat Fire breakout Electricity and sanitation failures Lighting not up to the standard requirements

8.1.4 MARKETING Wrong choice of message Wrong medium and timings selected where people may overlook

8.1.5 FINANCES Account may cheat or make blunders The budget may exceed

8.2 RISK ASSESSMENT FORM

RISK EVENT LIKELIHOOD IMPACT DETECTION DIFFICULTY 5 WHEN OCCUR

SYSTEM FREEZING(THERMOSTAT)

ANY TIME

HARDWARE MALFUNCTIONING (OF THE APPLIANCES USED) FIRE BREAKOUT

ANYTIME IN USE

SHORT CIRCUIT

LIGHTING NOT UP TO THE

STANDARD REQUIREMENTS

POST INSTALLATION

ELECTRICITY AND SANITATION

FAILURES

START UP

INTERNET ISSUES

ANYTIME

ACCOUNTS PERSON CHEATS

ANYTIME

BUDGET EXCEEDS

EVERY TIME WORK GETS DONE

WRONG MESSAGE IN THE ADDS

ONCE THE ADD ON-AIR

WRONG CHOICE OF MARKETING MEDIUM

ONCE THE ADD LAUNCH

RENTALS EXCEEDS THE EXPECTED

WHEN ON THE HOUSE HUNT

NOT THE DESIRED LOCATION

DURING THE TRACK

FIXTURES BECOME LOOSE OR WORN

O UT

ANYTIME

8.3 RISK SEVERITY MATRIX

BUDGET EXCEEDS

RENTALS EXCEED THE

LIKELIHOOD

EXPECTED

INTERNET ISSUES
FIXTURES BECOME LOOSE

NOT THE DESIRED

LOCALE WRONG CHOICE OF

SYSTEM FREEZING
ELECTRICITY AND

MESSAGE WRONG CHOICE OF MEDIUM ACCOUNT PERSON CHEATS SANITATION FAILURE

HARDW ARE

LIGHT NOT UP TO
THE STANDARD

M ALFUNCTIONING

FIRE BREAKOUT

3
IMPACT

8.4 RISK RESPONSE MATRIX

RISK EVENT RESPONSE CONTINGENCY PLAN TRIGGER WHO IS RESPONSIBLE AHMED

SYSTEM
FREEZING(THERMOSTAT)

MITIGATE

REINSTALL THE SYSTEM

STILL FROZEN AFTER

HALF AN HOUR

HARDWARE
MALFUNCTIONING (OF THE APPLIANCES USED)

MITIGATE

ORDER A NEW ONE

REPLACEMENT DOESNT WORK

ROMANA

FIRE BREAKOUT

ACCEPT

FIRE EXTINGUISHERS AND

FIRE ALARMS WHEN SMOKE DETECTED ,CONNECTION WITH FIRE BRIGADE

WHEN SMOKE
DETECTED

THE WHOLE TEAM

LIGHTING NOT UP TO THE

STANDARD REQUIREMENTS

MITIGATE

REINSTALLED BY OTHER
BRANDS

NOT SOLVED WITHIN 24 HOURS NOT SOLVED WITHIN 24 HOURS

SALMA

ELECTRICITY AND SANITATION

FAILURES

MITIGATE

GET OTHER EXPERIENCED

PARTIES TO FIX IT AND PLUMBERS ON THE GO

BISMA

INTERNET ISSUES

MITIGATE

CALL FOR THE SERVICE

PROVIDERS

DOESNT GET
SOLVED WITHIN ONE HOUR EVEN AFTER REFRESHING THE SYSTEM

ANIKA

ACCOUNTS PERSON CHEATS

MITIGATE

A PERSON TO COUNTER
CHECK THE ACCOUNT PERSON

YEARLY AUDIT

AHMED

BUDGET EXCEEDS

MITIGATE

MAKE COMPROMISES ON UNWANTED LESS PRIORITY EXPENSES

ONE THE PAYMENT OF WORK DONE

AHMED

WRONG MESSAGE IN THE ADDS

AVOID

REPOSITION THE ADD

IF THE EXPECTED RESPONSE NO MET AFTER ONE MONTH

ROMANA

10

WRONG CHOICE OF MARKETING MEDIUM

AVOID

CHANGE THE SELECTED MEDIUM

IF THE EXPECTED RESPONSE IS NOT MET AFTER A MONTH

ROMANA

RENTALS EXCEEDS THE

EXPECTED

MITIGATE

RENOVATION EXPENSES COMPROMISED

IF THE OWNER DOESNT NEGOTIATE FURTHER AFTER A WE E K

THE TEAM

NOT THE DESIRED LOCATION

ACCEPT

MARKETING IN A MORE
STRONGER WAY

IF AT THE END OF SIX MONTHS THE RIGHT LOCALE IS NOT ATTAINED

THE TEAM

FIXTURES BECOME LOOSE OR

WORN OUT

MITIGATE

PROFESSIONALS CALLED TO FIX OR REPLACE

IF NOT FIXED WITHIN TWO DAYS

BISMA

11

9. THE SOCIAL IMPACT ASSESSMENT

Islamabad is now becoming a more social society like Karachi and Lahore. Designer outlets and cafes are increasingly gaining popularity among the local masses and this sector is flourishing day by day. There is seen that this business is gaining momentum for the past few years and people who have invested in such projects have grown and have accomplished a great deal. It will have a social impact on the life of the people because it will change the living standard of the people and under one roof they will be getting excellent services and products with satisfaction as an outcome. Knowledge of the people will increase through knowledge of various brands of around Pakistan. The main issue that will cause problem will be the parking since we plan to setup Showcase in a residential area. The people in the surrounding may get affected by that. Secondly the garbage disposal of the caf which will be dealt effectively and will not cause any discomfort to the neighbourhood.

12

10. GANTT CHART

Task Task A Task B Task C Task D Task E Task F Task G Task H Task I Task J Task K Task L Task M Task N Task O Task P Task Q Task R Start 0 14 14 14 14 19 21 59 76 91 17 18 101 24 31 140 152 160 Duration 14 14 3 5 4 2 38 17 15 10 7 10 10 7 10 20 8 5

Task Q Task O Task M Task K Task I Task G Task E Task C Task A 0 20 40 60 80 100 120 140 160 180 Start Duration

13

11. MINUTES OF MEETING

MINUTES OF MEETING
No
1

Date
24-03-2011

Duration
30 minutes

Agenda
Brainstorming on the possible projects Alternative options available Pros & cons of each alternate

Attendees
Ahmed Aniqa Bisma Romana Salma Ahmed Aniqa Bisma Romana Salma Ahmed Aniqa Bisma Romana Salma Ahmed Aniqa Bisma Romana Salma Ahmed Aniqa Bisma Romana Salma

06-04-2011

20 minutes

Coming up with the name for project Deciding on scope statement Deciding on location and budget

15-04-2011

30 minutes

Deciding on WBS Allocating responsibilities

29-04-2011

30 minutes

Arranging finances Stating preliminary work on project Contacting property dealers

12-05-2011

30 minutes

Work on making Risk Portfolio And Risk Assessment

14