Introduction to the Project
The aim of the current document is to provide the reader with a clear picture of the proposed development on the plot owned by Massachusetts Movers Inc. The said development is meant to improve the working conditions in the company. To this end, the proposed building will be fitted with state of the art load- handling facilities. The project to improve the working conditions will be authorized by the company’s board of directors.
The project is expected to cost the organisation a total of $5.4 million dollars. The current project brief will be forwarded to the board of directors to help them make an informed decision with regard to authorising the formulation of the Project Initiation Document (herein referred to as PID) (Kousholt 2007).
There are various strategies that will be implemented to manage the proposed project. The organisation has recommended the use of PRINCE 2 methodologies, which will be complemented by the Microsoft Project 2010. The latter is the software proposed for this project.
In this proposal, several aspects of the proposed project are highlight. They include background information, where the project is justified, as well as the plan and design of the proposed project.
In addition, the proposal provides information on the strategies proposed in implementing the project. The proposed monitoring and evaluation strategies are also highlighted, in addition to the closing of the proposed project.
Background Information: Justifying the Proposed Project
Massachusetts Movers Inc. has emerged as a household name in the storage and transportation of goods in transit. The company serves various states in the United States of America. In addition to the USA market, the company has expanded its operations to other countries and continents, such as Canada, South America, and Europe.
Due to this unprecedented growth in the company’s operations, the management team is forced to come up with strategies on a frequent basis to address emerging problems. One such challenge is the inefficiency of the company to handle the surge in demand as a result of its limited capacity. It is noted that the facilities at the company’s headquarters are small and inadequate. In addition, the company lacks a fully equipped warehouse.
Other factors affecting the capacity of the company include lack of enough office space to accommodate the employees and other stakeholders, such as customers and distributors.
In addition to this, the company has to deal with unsatisfied customers and frequent breakdowns of the antiquated machines, which brings operations in the warehouses to a standstill. Suppliers have also expressed their lack of trust in the operations of the company (Anderson 2009).
The management came to the realisation that if they fail to address the emerging problems, the future of the company will be jeopardised. To address the problem, the company bought a piece of land on the outskirts of the Lagon International Airport. The objective of the company in purchasing this land was to build its headquarters to cater for its operations in the United States of America.
In addition to this, the company plans to build a state of the art warehouse adjacent to the headquarters. The envisaged developments will catapult the company to greater heights and put it in a good position to compete with other organisations in the market (Phillips 2003).
The Plan and Design of the Proposed Project
Overview
The major objective of the proposed project is to build a 48 storey building, which will house the headquarters of the company. In addition, the project aims at coming up with a modern warehouse. The building will serve as the company’s nerve centre, from where operations in all the branches will be regulated (Dinsmore 2005). The scope of this proposal will encompass such operations as the tendering process.
In addition, it will address issues to do with architectural works, financing and managing risks associated with the project among others. It will ensure that the project meets the necessary requirements, including environmental and legal provisions. The proposed project will be undertaken in a period of 3 years. As earlier mentioned, it is expected to cost the company approximately 5.4 million US dollars.
The proposed project has various goals and objectives. They include establishing a fully automated load- handling section, creating enough office space to house all the departments, enhance customer satisfaction, and increase the efficiency of the company in utilising the limited resources (Harmon 2007).
The current state of the offices hinders the efforts made by the company to achieve these objectives. The offices are decentralized due to lack of enough office space at the headquarters. The decentralisation negatively impacts on the efficiency of the company. In addition, the project will enhance communication within the company.
Currently, the company loses approximately 15,000 US dollars in a month due to these inconveniences. Apart from such losses, there are the monthly expenses incurred in paying rent for the offices housing the various departments. If such expenses are reduced, the company will restructure and expand its operations across the globe.
The expected restructuring that will take place on completion of the project includes renaming the company and giving it a global identity (Ireland 2006).
The company will significantly benefit from the project. Some of the expected benefits include cutting down on the cost of operations, improving coordination of interdepartmental activities, and a reduction on the losses accrued on a monthly basis. As a result, the company will start making profits from the outcomes of this project (Kerzner 2003).
The stakeholders have expressed their support for this project. They view it as a milestone in the history of the company. Suppliers argue that the project will increase their business since the tendering system will be harmonised in Massachusetts. Most of the company’s clients are in full support of the project. They see this project as a way of improving the efficiency of the company (Harriso & Lock 2004).
The clients support the location of the new headquarters because the facilities will be close to the airport, enhancing the logistics involved in transferring the goods from the point of arrival to the point of storage. The company’s members of staff view this project as something that is long overdue. They pledge their full support to the project.
The project’s charter highlights the need to cut down on the company’s cost of operations from 154 billion US dollars to 125 billion US dollars in a period of five years. The reduction will translate to increased profits from the company’s operations. However, the project has not factored in contingencies.
The project will take approximately 3 years to complete. It is subdivided into four major phases. The four include contracting stage, earth work and construction, installation of equipment stage, and inspection stage.
The Plan and Design
Managing the Proposed Project
The project will be managed by the Project Management Department. The department is charged with the responsibility of seeing this project through to its completion. It will authorise the use of money for the project, including paying the contractor.
In addition, it will assess and evaluate the progress made in implementing the project (Cleland & Gareis 2006). The department will be run by a project manager with the help of support staff.
To improve the effectiveness of the project, an oversight committee will be set up to regulate the activities of the contractor. The team will report on its findings to the project management board. In addition, the team will assist the contractor in securing certification and licenses.
The Project’s Communication Plan
Communication between the company and the contractor will be conducted through the project management department. To this end, the department will be assisted by the oversight committee.
The communication channel will be structured in such a way that confusion is reduced to the bare minimum. Any other communication channel structured outside the one sanctioned by the board of directors will be invalid.
Employees will be notified on the progress of the project through memos, notice boards, and company magazines (Phillips 2003). Interested stakeholders will be notified through the various brochures published by the company. In addition, information about the project will be disseminated through the official website and official magazines.
Analysis and Management of Risk
The project is basically a construction undertaking, which means that there are numerous challenges likely to be encountered. The biggest challenge is the failure of the contractor to complete the project on time.
The failure may expose the company to numerous risks since plans to receive future consignments have already been made. The lease on the premises currently occupied by the company will expire exactly three years from now. What this means is that the company will either have to increase its lease term or rent the premises for a period, which will increase operation costs.
There is also the risk of suppliers delaying to deliver raw materials. Another risk facing the project is possible strikes by the employees working for the contracted company.
Capital constraints may hinder the completion of the project considering the current economic situation (Anderson 2009). Capital constraints may result from high prices of products and fluctuations in the value of foreign currency (Anderson 2009). Other risks that may arise are recorded in the risk register.
Risk management involves planning for future uncertainties. The company has put in place several measures to manage these risks. For example, the contract stipulates that if the contractor fails to deliver the project on time, a fine of 150,000 US dollars will be imposed every day. In addition, there are regular evaluation reports that will be provided after every two months from the time the project is initiated.
The reports form part of precautionary measures to estimate quantity of the remaining work. Furthermore, the company has entered into a deal with a consortium of banks to finance the project in case of future capital shortages (Burke 2007).
According to the updates given in the risk register, appropriate measures will be put in place, depending on the intensity of the risk. Such measures include reducing the risk, containing the risk, retaining the risk, and transferring the risk. The project’s software will also assist in managing these risks (Kousholt 2007).
Executing the Project
Overview
Under this section, the proposal highlights the various measures put in place to ensure the project is completed on time.
The Lifecycle of the Project
The project will take a period of three years and the management expects it will be completed as scheduled. As already indicated, the project is broken down into various stages, which form its lifecycle. They include the contracting period, earth work and construction period, installation of equipments, and inspection of the project by the relevant department. The phases are established as per the work breakdown structure (WBS).
The Initial Stage
The initial stage is the contracting phase. The process will involve sourcing for the right contractors. The contractors will bid for the project through an open bidding system.
The bids will be opened by a panel selected by the company’s board of directors. The contractor in possession of the required skills and experience will be selected by evaluating the profile of the respective company. In addition, the contractor is required to have a strong financial background.
During the initial stage, the relevant department will evaluate the architectural designs. The evaluation of the designs will be carried out for a period of less than two months. The evaluation will ensure that the successful bidder gets a clear picture of what is expected from the project (Kerzner 2003). The contractor will be informed appropriately with regard to the company’s stipulated requirements.
An oversight team will be set up at this stage. The responsibility of this team is to coordinate the activities of the contractor and the company. The team will also carry out regular inspections and monitor the progress made by the contractor in executing the project.
The team will submit their report to the company. The team is expected to assist the contractor in securing licenses and related certifications from the federal government, municipal government, and other government agencies.
Earth Work and Construction Stage
The second stage in the life cycle of the project is earth work and construction. At this stage, the contractor is expected to move to the site and commence the implementation of the project. The stage involves visible work on the ground.
The use earth movers, trucks, concrete mixers, and other equipments involved in construction will be evident. The duration of this cycle is one and a half years. The stage is expected to be capital intensive and thus, the company will provide a down payment of 50 per cent of the total contract amount. Periodic inspections and evaluations will be carried out by the company (Dinsmore 2005).
Installation of Equipments
After the completion of the construction works, the contractor is expected to fit the warehouse with modern and sophisticated goods-handling equipments. The cycle is expected to last for a period of not more than one year. Given that the equipments will have to be bought, the contractor will be paid 25 per cent of the remaining 50 per cent. The rest of the money will be held by the company until the work is fully completed.
Inspection Stage
The final stage in this project will be inspection by the project’s board of directors. Upon satisfaction with the work done, the board will recommend the next step to be taken by the company. If satisfied with the work done, the contractor will hand over the buildings (Lock 2007). The company is obliged to clear the balance owed to the company at the end of the project. Appendix 1is a diagrammatic representation of the project’s plan:
Monitoring and Evaluation
Monitoring and controlling a project entails regular assessments of the progress made in implementing the project to ensure the objectives are met. Monitoring a project highlights potential problems while controlling is simply taking corrective measures to ensure the project remains on course. Progress reports are prepared using PRINCE2 methodologies.
There are various activities undertaken in monitoring and controlling projects. The techniques used include performance measurement and tracking techniques, cost analysis techniques, variance and trend analysis techniques, change management techniques, project plan management techniques, and problem solving techniques (Harriso & Lock 2004). In addition, auditors and quality assessors are engaged at this stage.
The above mentioned techniques will help the oversight team to make the relevant changes on the scope of the project, its schedule, and cost. It will help in revising the goals of the project appropriately.
The techniques will ensure that the project’s deliverables conform to the quality and standards established in the quality management plan. All the relevant changes will be communicated to the relevant stakeholders. The aim is to ensure that it remains on course to realise the set objectives. In the case of the proposed project, monitoring and controlling will ensure that the contractor completes the buildings on time (Phillips 2003).
Closing the Project
At this stage, the buildings will be inspected to confirm that the objectives of the project were met. The final project report will be prepared to facilitate the closure of the project. At this stage, the activities of both the contractor and the project management board will be concluded. The documents and materials relevant to the project are retained by the company.
The documents are subject to internal and external audit. Such documents include the Earned Value Management, which provides a quantitative analysis of what the company earned versus the money spent and time taken to complete the project.
Contract closure is effectively carried out after both parties have fulfilled the applicable conditions specified in the contract. After the post completion report, the company is expected to pay the remaining balance of 25 percent.
The final payment heralds the end of the contract. The report will give a summary of the achievements made in implementing the project. It critically analyses the level of completion in terms of the scope, cost, and quality.
Conclusion
The use of PRINCE 2 methodologies and Microsoft Project Software helps in managing a given project. The two help in managing the objectives of the project and the expectations of the business entity funding the project.
PRINCE 2 methodologies are instrumental in managing projects, especially with regard to monitoring, controlling, and evaluating a project in a dynamic environment. Microsoft Project 2010 assists in minimising and managing risks associated with a project. The two enhance the achievements made in implementing a project.
References
Anderson, C 2009, ‘What are the top ten core business processes?’, Bizmanualz, vol. 25 no. 2, pp. 32-48.
Burke, R 2007, Project management techniques, college edn, Pearson Prentice Hall, Cape Town.
Cleland, D & Gareis, R 2006, Global project management handbook, McGraw-Hill Professional, Texas.
Dinsmore, P 2005, The right projects done right!, John Wiley and Sons, Chicago.
Harmon, P 2007, Business process change: a guide for business managers and BPM and Six Sigma professionals, 2nd edn, Morgan Kaufmann, New York.
Harriso, F & Lock, D 2004, Advanced project management: a structured approach, Gower Publishing Ltd., New York.
Ireland, L 2006, Project management, McGraw-Hill Professional, New York.
Kerzner, H 2003, Project management: a systems approach to planning, scheduling, and controlling, 8th edn, John Wiley & Sons, New Jersey.
Kousholt, B 2007, Project management‎: theory and practice, Nyt Teknisk Forlag, California.
Lock, D 2007, Project management, 9th edn, Gower Publishing Ltd., New York.
Phillips, J 2003, PMP project management professional study guide, McGraw-Hill Professional, New York.
Appendix
A Diagrammatic Preview of the Project’s Plan
Adapted from: Burke 2007