Project Plan

Winsome Manufacturing Company Multiple Storage Container System Project

Julius Benson, Anthony Cartica, Alex Ervin, Jack Lutz,

Linda Schacherbauer, and Kimothy WoodsUnit 5 Group Project

MGT327-0805A-01 Project Management Principles--Donald Buresh

American Intercontinental University

December 14, 2008

Winsome Manufacturing Company ▫ Multiple Storage Container System Project

Project Plan Overview

Overall Objective: Increase revenue by introducing new container system product

MSCS Project Background:

A preliminary study of market trends in plastic storage containers resulted in a finding that there is a need for a multi-container system to compete with the successful Super-Store system sold by the Shop at Home Network. Bringing the new product to market is the focus of this project. The intention of the project is to create new revenue for WMC, enhance WMC’s image with consumers, and begin a new product line which, by setting the stage for add-on products, will carry WMC into the future.

New MSCS will compete with, and exceed in features, the Shop-at-Home Network’s rival product

• Product available for sale September 1, 2009• Initial sales deliverables prepared and delivered to sister company by July 1, 2009

PROJECT SCOPE

• Design and manufacture initial sales deliverables for MSCS • Market MSCS to new commercial markets in addition to the current home

marketing.

PROJECT LEADERSHIP & COMMUNICATIONS

Leadership Communications Plan

Stakeholders Sponsor

Staffing Project Team

Home Distributors

Customers

All WMC Employees

Shareholders



PROJECT SCHEDULE

• Work Breakdown Structure – Activities

• Milestones

• Changes

PROJECT BUDGET

• Budgeting Process

• Components

• Changes



PROJECT RISKS

• Cost

• Schedule

• Performance

PROJECT METRICS

• Data Collected

• Criteria for Success

• Earned Value Analysis



TEAM• Sponsor- WMC Marketing Director• Stakeholders- WMC Sales, Marketing,

Engineering, Procurement, and Production• Key Customers- Procurement Managers

for Office/cubicle based commercial companies in the USA


Project Scope

PROJECT STAFFING• This effort will require staffing priorities of team member personnel during the

proposal stage, to support the analysis and review of this project for go-forward viability.

• If project go-ahead is given, it is anticipated that production staffing levels will need to increase. No other increased staffing needs are projected at this time.

• If staffing needs change, the Project Manager will gather metrics to substantiate need, and submit increased staffing proposals to senior management.


Project Scope

Stakeholders include:

• Sponsor, Y. L. “Win” Winsome, Jr.

• Project Manager

• Project Team Members

• WMC Management

• WMC employees

• WMC Home Sales Representatives

• Stockholders

• Customers


Project Leadership and Communications

Project Staffing

Project team will be recruited from among existing WMC staff

Each team member will contribute up to 20 hrs/wk to the project

12 to 20 team members required, depending on availability

Team can communicate & work virtually; therefore, open to all qualified WMC employees regardless of location

In addition to skills related to their specific project assignments, project staff • Must be familiar with WMC’s existing products and culture• Must possess strong oral, written, and interpersonal communication skills



Staffing Changes

• Project team hires, and any staffing changes, must be approved by the Project Manager and the team member’s department executive.

• Any need for staffing changes will be brought immediately to the attention of the project manager and/or the appropriate department head.



Project Communications Plan (by Audience)

Project Sponsor

• Weekly face-to-face status meetings: Concise “bottom line” status report plus Q & A

• Approvals needed will be presented, as they arise, in paper form for review and signature




Project team members

Constant and detailed information on activities and deadlines:

• Project master calendar maintained on WMC’s network• Targeted email invitations and reminders• Any paper documentation scanned to the network project folder• Changes, updates, and any information of interest to the project team

will be emailed to the team as available. • Project team page on WMC’s internal website, with links to calendar,

documents, all project-related information




Project team members (continued)

Regular feedback on progress• Daily status meetings on-site, with off-site team members videoconferencing in

Status meetings will be held daily at 9:00 a.m. These should last no more than 15 minutes, but will ensure that all team members have the same up-to-date information.

Opportunities to express concerns and solve problems• Problem-solving or “issues” meetings will be scheduled regularly and/or as issues

arise, and can be held in-person and by teleconference • A regular problem-solving or “Issues” meeting will be scheduled weekly. Team

members can also call for an issues meeting when an issue arises.




Project team members (continued)

Convenient Real-Time Communication Method

Team members will use instant-messaging software to communicate with each other in real time. IM software will allow team members to tell at a glance who is available, rather than playing “phone tag.” Team members can communicate via IM one-on-one, or with a few clicks can include additional members in their chat.




WMC Home Distributors• Weekly WMC Home Rep email newsletter• Home Rep area of website• Additional email updates for “big news”

WMC Customers• Advertising• Press Releases – media, public website• Catalog




WMC Employees (beyond project team)• Include updates on project in weekly company newsletter• Email “big news” to all employees• More detailed Info on internal website




Shareholders• Focus on shareholder wealth: Shareholders will want information on the project to

the extent that it affects corporate resources being used, and future revenues it may bring in.

• Primary communication in quarterly stockholder newsletter• Email updates for stockholders who have subscribed• Press releases – media, WMC’s public website



Deliverables

• Potential Revenue

• New Markets

• Add-On Capabilities

• Customer Satisfaction


Project Schedule

Team Members and Departments Represented

• Purchasing Team.. (Situational Analysis) Technological Environment, Neutral Environment, Company Environment and Competitor Environment.

• Design Production Team/Sales Team/ Marketing Team/Shipping Team…(Marketing Tactics) Promotion, Advertising, Product, Price, and Distribution.

• Marketing Team…(Target Market) Geographic Segmentation, Demographic Segmentation, and Psychographic Segmentation

• Marketing Team/Sales Team…(Problems / Solutions) Insurance, Liability, and Legal Affairs.


Project Schedule

Inputs • New Market Search• Geographic Area Search

Outputs• Network Diagrams• Geographic Search (update)


Project Schedule

• Local Tasks… Marketing Team is specifically assigned to the Target Market based on knowledge of the field. Consequently, they will also assist with Problem and Solutions being that Geographic's are a big concerning new markets.

• Resources Assignments.. The Marketing Team will determine the amount of funds needed in terms of product costs, materials needed, and when funds are allocated.

• Estimated Efforts To Complete Task…Monitoring and controlling will be used to measure performance levels to identify potential problems. Each team leader will assess group performance in the case of recommendations needed for preventive actions.

• Parametric…paperwork will not exceed 2/3 pages from each team. Meetings times are flexible dependent upon completion of assignments as it relates to completion date.


Project Schedule

Winsome Manufacturing Company Budget Plan

Customary:

Plan Set-Up Validate


Project Budget

Budget Plan Components:

•Research

•Project Information

•Industry Information

•Marketing

•Communications

•Evaluation

•Program Development

•Administration

•Total Budget Expenditures


Project Budget

MSCS Project Budget will be determined on the previous 12 months of sales and manufacturing for the new product and project that will increase our position in the market and point of view from our competitors.

A monthly statement will disclose the Budget payment amount, along with the actual project material and cost to work on the project until completion.

Any additional charges billed to WMC for the project will be paid in addition to the customary budget payment.

Budget will be monitored throughout the year and adjusted, if needed, to make sure the project budget does not exceed high monetary amounts.


Project Budget

Cost

Risk event: Need for acceleration of project completion date

Impact probability rating= 0.7

Consequence or impact value = 0.5

RF = P + C – (P*C)

RF = 0.7 + 0.5 – (0.7* 0.5)

RF = -11.65

Actions to mitigate the risk.

1. Create a core project team

2. Allocate the use of outsourcing


Project Risks

Calculating Project Risk: RF = P + C – (P*C)

Where:

P = the selected probability C = the selected consequence or

impact value

Cost

Risk event: Plastic used in commercial application more costly than expected



RF = 0.2 + 0.3 – (0.2* 0.3)

RF = -0.1

Actions to mitigate the risk:

1. Conduct market research before commencing production

2. Locate alternative materials


Project Risks

Cost

Risk event: Workers not trained to handle commercial segment work load



RF = 0.5 + 0.4 – (0.5* 0.4)

RF = -0.11


1. Provide appropriate training to current workers

2. Recruit new workers who are suitable for the commercial production and marketing


Project Risks

Schedule

Risk event: Production department not able to meet its target dates



RF = 0.3 + 0.3 – (0.3* 0.3)

RF = -0.3


1. Request report from the production department on how the target will be achieved. Discuss and evaluate their strategies.

2. Access additional resources to meet target dates


Project Risks

Risk Event: Production Department unable to comply with project design specifications



RF = 0.4 + 0.4 – (0.4* 0.4)

RF = -0.8


1. Request a production trial run for commercial products.

2. Outsource this segment of the production work


Project Risks

Performance/Quality

Risk event: Plastic selected for use is not acceptable for commercial use



RF = 0.3 + 0.3 – (0.3* 0.3)

RF = -0.3


Get competitor intelligence for the materials being used in the commercial segment.


Project Risks

Risk Event: Printing errors detected during final inspection



RF = 0.5 + 0.4 – (0.5* 0.4)

RF = -0.11


1. Reprint packaging

2. Establish a more acute inspection detail


Project Risks

Project CollectionMeasurement of Progress and Performance

Data Collection Metric

Planned Work

Actual Work

Cost of Actual Work

Data Collection Departments

Marketing

Purchasing

Design

Sales


Project Metrics

Metric Measurable

INPUTS

• Budgeted Cost of Work Scheduled (BCWS)-Activity Budget• Budgeted Cost of Work Preformed (BCWP)-Planned cost of scheduled

work.• Actual Cost of Work Preformed (ACWP)- Actual Cost of activities.• Budget at completion- (BAC)• Estimate at Completion-(EAC)


Project Metrics

Metric Measurable

OUTPUTS

EARNED VALUE

The % of activity complete times its Budget SPI = BCWP/BCWS

SPI<1 means project is not on schedule.

CPI = Cost Performance Index.

CPI = BCWP/ACWP

CPI<1 mean project is over budget


Project Metrics

Project Collection Milestone Reporting

Master Work Schedule (MWS) will identify the major deliverables.

Activities will be scheduled over time based on expected completion date.

Milestones established based on project deliverable dates.

Schedule to be updated based on Activity reporting.

Allocate cost.

Metrics to be capture at beginning and end of any Scope Changes.

Plot Actual Activity to analyze data and confirm.

Analyze data and provide performance results.


Project Metrics


Barriers to Success

Actions for Success

Logistical Barriers

• Time… This pertains to maintaining shipping schedules, hours worked on project, communications with stakeholders and sponsors.

• Background Knowledge…Team structure as it relates to experience, product knowledge as well as marketing strategies.

• Distractions… Maintaining project duties as well as regular duties. Attending meetings late and half prepared and miscommunications.

• Access.., Requires full participation of all members in time allotted for project. Fulfillment of Scope statement along with company milestones.

• Funding… Account developments, negotiations with implementing the sale, pricing, product guarantee offers, overall expenses including materials, company travel and advertising.


Barriers to Success

Logistical Barriers – Actions for Success In reference to the logistical barriers listed, the actions for success include the following;

• Time…Constant communication with all team members, sponsors, and stakeholders between meetings and otherwise.

• Background Knowledge…Placement of team members to groups as it relates to their knowledge of the field they are assigned to.

• Distractions…Documentation of all meetings as well as progress reports for the purpose of preventing any second guessing all assigned duties.

• Access…All team members are expected to maintain their share of work to prevent overworking fellow team members. This also pertains to team members that are responsible for continuing their regular scheduled duties.

• Funding…All team members will comply with the funding allotted for the project. Extra funding will be allowed based on the request submitted by the project manager to upper management.


Barriers to Success

Communication and Decision-making Barriers

•Winsome Co. will set up a budget committee that will be responsible and held accountable for the affairs concerning the Budget including any amended changes that occur.

•The budget plan will be collaborated and discussed only within the management division at Winsome Co.

•The budget will be amended several times during its tenure, hence the confidentiality and analylizing of the budget on a case by case basis.

•The budget plan change meetings will commence on the 1st of the month following the actual decision that is made by the committee and approval of such a change.


Barriers to Success

•The Budget committee will communicate these meetings concerning these changes by phone, fax or via e-mail.

•No formal decisions will be made by such means, the actual closing of the final decisions will be made at the Project’s board meeting

•All supervisors, managers and Project Managers will attend these meetings as well as have a fair say as to the outcome of the final decision with the staff and the project in their best interest.


Barriers to Success

Communication and Decision-making Barriers – Actions for Success

Scope and Complexity Barriers

Manpower Resources- there is risk of market timeline access due to inability to have qualified manpower available to support proposed increased production due to commercial market penetration.

Complexity Increase- design changes to Multiple Container System (if required) increase risk of differentiation from the current home sales product, decreasing compatibility with the current product, thus increasing production costs.


Barriers to Success

Leadership & Staffing Barriers:

• Lack of Buy-In– Reluctance by management to give up time from their best employees– Employee hesitation to give up “known quantity” work assignments to devote time to the

new project• Time and budget constraints• Difficulty facilitating teamwork among employees from different departments who may not

typically work together– Personality conflicts– “Turf wars” between departments


Barriers to Success

Leadership & Staffing Barriers – Actions for Success:

• Gain buy-in by clearly communicating how this project aligns with company goals

• Make sure team members understand what the contribution of each department will be, so that they understand the importance of their own roles, and the roles of others

• Ensure clear communication of project goals and expectations


Barriers to Success

Priorities and Goals Barriers

• If there are radical changes in market research and market intelligence report.

• If there are any changes in the cost structure at Winsome.

• If there is a sudden change in the financial/human resources available for the plant.

• There may be need for changes in the plan if there are sudden or unexpected changes affecting the supply of raw material.


Barriers to Success

Priorities and Goals Barriers – Actions for Success:

•Significant changes will be presented by the project manager to the project sponsor for review or approval. If the financial impact of the change is very large and risk the entire project, the project manager will place the proposal for change to the project sponsors.

•For approval, the project manager will carefully evaluate the changes; he will assess the authenticity of the risk assessment. He will then compare these with the industry best practices.


Barriers to Success

Cultural Barriers

Lack of Inclusiveness• Lack of diversity – Failure to recruit project team members based on

stereotypes that result in inaccurate perception and attributions.

• Failure to recognize the many different values, cultural backgrounds and experience of team members.

• Lack of exposure to diversity resulting in conflict and tension among team members.

Lack of Effective Communication• Communication gaps that don’t promote exits to communication

barriers.


Barriers to Success

Cultural Barriers – Actions for Success

Overcoming cultural barriers within the project team can best be facilitated through:

•Diversity training –Self-awareness activities–Cultural awareness activities –In-house, or by outside consultant

•Ensure that the overall culture of the organization is –Open–Diverse–Inviting


Barriers to Success


Questions?

References

George, J., & Jones, G. (2005). Understanding and managing organizational behavior.

Upper Saddle River, New Jersey: Prentice Hall

Wilkens, T. T. (1999). Earned value clear and simple. Retrieved December 12, 2008,

from Project Smart Web site: http://www.projectsmart.co.uk/

docs/earned-value.pdf

Project Management Institute, Inc. (2004). A Guide to the Project Management Body

of Knowledge: PMBOK® Guide (3rd ed.). Newtown Square, PA: Project

Management Institute, Inc.

Project Plan

Documents