This work focuses on preparing a detailed and methodical project plan on furniture manufacturing in the UAE (Abu Dhabi) and attempts to come up with the best possible project management practices to ensure that the assignment is completed efficiently in the shortest possible time.
Background
Project Idea and Description
- The project idea is to start a furniture manufacturing business in the UAE (Abu Dhabi).
- Unlike its competitors, this business will offer its customers furniture at a low cost.
- The business will attempt to attract customers by allowing them to pay for (invest in) the quality of the furniture, not for the advertising campaign.
- It will be an online-based business; therefore, the costs would be significantly lower – customers would be able to place an order at any time from any location.
- The workshop will be situated in Abu Dhabi, and the main product line shall include everything necessary to furnish a home, office, or educational institute.
- Customers proximate to the workshop will be privileged as they are exempted from paying for the transportation cost.
Project Purpose and Justification
- A huge number of tourists visit Abu Dhabi annually, and hotels are compelled to refurbish their décor to attract them; consequently, there is a strong need for modern furniture in the market.
- This business aims to offer furniture with innovative design, made from leather, cardboard, nutshells, wood composites, eco-friendly plastic wood, and high-quality hardwood.
- Besides being a furniture manufacturer, an important purpose of the business will be to ensure environmental sustainability and low carbon emissions.
- For a competitive advantage, the items must be available at cheaper rates.
Project Objectives
The main objective of this project is to enable the customers of Abu Dhabi to access the best and the most contemporary forms of furniture at relatively lower cost.
- The company will engage with local community in order to ensure communal welfare as part of the company’s corporate social responsibility.
- The business will start to fully engage in corporate social responsibility from the second year of its operation.
- The entrepreneurs believe that ensuring environmental justice should be a key concern for every business entity; as a result, this furniture business would conduct an environmental impact assessment before starting the project.
- It will also make sure the operation is as eco-friendly as possible.
- The entrepreneurs have the intention of reaching the break-even point by the end of the first year of operation.
- In order to ensure that the business is cost-effective and operationally efficient, the owners would try to implement lean management techniques throughout all departments.
- These techniques must include a “just in time approach” and measures to ensure economies of scale.
- The business would try to undertake cost-effective advertising measures through social media, the corporate website, direct emails, and so on.
Project Initiation
Project Life Cycle
Project Charter
Requests for Proposal (RFP)
This furniture manufacturing company will seek proposals from the contractors to establish a unique outlet. In this case, the request for proposal shall describe the statement of work, requirements for participants, project objectives, evaluation and acceptance criteria, deliverables, items supplied by the owner, bid information, type of contract, payment terms, schedule, and so on.
Proposal
Contract
This furniture manufacturing company will set terms and conditions to sign a contract after May 18, 2017, and both parties must follow clauses to mitigate risks arising from misrepresentation, delays, changed materials specification, errors in price, natural disasters, non-compliance of privacy policy in case of online transaction, and security concerns.
Project Scope
Acceptance Criteria Analysis
- It will fulfill the legal requirements of the United Arab Emirates to obtain a commercial license from the Department of Economic Development.
- Assurance regarding workplace safety.
- Use of high-quality equipment and raw materials.
- It will avoid negative influence on the environment; so, it will achieve the level of ISO 14001 and ISO 18001 from the same authority.
Project Deliverables
- Organization of the workshop.
- Recruiting experienced employees.
- Launching a website successfully and ensuring online order placement system.
- Starting production of furniture.
- Processing the orders of the customers.
Customer Requirements
- Stylish furniture at reasonable prices.
- Customers seek furniture with environmentally suitable materials.
- Clients looking for comfortable furniture.
- Satisfaction of clients through products and service.
Stakeholder Management
- This furniture manufacturing company is committed to build long-term maximum value.
- Integrity and responsible actions strengthen its commercial performance.
- Members of support team communicate with employees by maintaining a regular two-way flow of information to motivate stakeholders.
Requests for Commercial and Environmental License
The Department of Economic Development is a license-issuing authority in the UAE; thus, a company applies for a license by meeting the legal criteria and paying the fees. Here, the fees include:
- Industrial license fees: AED 250.
- Environmental license fees: AED 250.
- Activity fees: Subject to activity type.
- Main product fees for permanent license: AED 1,000.
- Branch product fees for permanent license: AED 500.
Reserving the Trade Name
In order to reserve the trade name, this furniture manufacturing company must pay AED 40 to the Department of Economic Development.
Place Size for Manufactory
The main office will have an area of 10,000 m2 and shall include –
Table 1. Place Size.
Project Planning
Scope of Work
Work Breakdown Structure (WBS)
Initial Risks
- Exhaust inexorable financial pressure to survive.
- Unsuitable temperature conditions may damage the raw materials.
- High accident rate is the primary risk in making hotel furniture.
- The extent of the noise causing hearing loss in employees.
- Threats of substitute products and bargaining power of buyers.
- Staff mistakes may cause financial loss.
Information System Development
Responsibility Assignment Matrix
Sequence of Activities (Milestones Schedule)
Table 3. Sequence of Activities.
Resource Plan
Table 4. Resource Plan.
Workers
The workers shall act in accordance with the preferences of the people of Abu Dhabi. Furthermore, they would implement the organization’s vision, control the furniture distribution channel, and supply inventory to increase sales and growth. A total of 50 workers, including a factory manager, two production managers, and five logistics personnel are needed.
Suppliers
The workshop will receive supplies of all the essential tools and materials for furniture manufacturing. It should coordinate with other third parties (Al Khaznah Tannery, Al Eskafi Leather Industries, Abaad Wood Industries, and Royal Wood Factory) to collect wood, leather, imitation leather, fabric, metal, and many other materials. In addition, the furniture manufacturing company will import wood from outside the country using the ports of Dubai or Abu Dhabi; in addition, it will also collect equipment and tools from suppliers in China, Italy, and Germany.
Preliminary Roles and Responsibilities
Chief Financial Officer Ameera Al Katheeri, Project Director and Head of Communications Mezna Al Mansoori, and Chief Industry Expert Eslah Al Hammadi are responsible to supply funds to implement the project; the CFO will control and monitor the financial system, the Project Director will analyze the employees’ performances, and the Chief Industry Expert will focus on overall operations management.
Quality Plan
In order to ensure quality, the furniture manufacturing company is committed to complete work in accordance with the specifications, maintain international standards, monitor project progress, evaluate performance of the employees,and deliver products on time; however, Eslah Al Hammadi is responsible for maintaining quality control.
SWOT Analysis
Table 5. SWOT Analysis of Furniture Manufacturing Company.
Regulatory Factors
In order to establish and operate a furniture manufacturing company in Abu Dhabi, the entrepreneurs will consider the domestic regulations of the area. The management team will collect a commercial license from the Department of Economic Development, and will strictly follow terms and conditions of the authority to operate the business, to open a new branch, to share profits or losses, and to ensure good governance.
Risks Management Matrix
Network Diagram
Financial Plan (Cost)
Yearly Rent
Table 7: Yearly Rent.
Salary and Fees
Table 8. Salary and Fees for Employees.
Estimated Budget and Funding
The group consists of three people who will equally invest from their savings accounts to establish the furniture manufacturing company; as a result, they all remain equal partners of the venture, and the distribution of equity investment will be the following:
Table 9. Funding for the project.
Table 10. Total Investment and Depreciation Costs.
Projected Income Statement for 3 Years
Table 11. Projected Income Statement for 3 Years.
Project Performing
- Engage highest efforts to attain project objectives.
- Step-by-step assessment of the progression and the remaining trend.
- Re-design necessary changes with narrow the gaps.
- Continuous monitoring and progress controlling with baseline analysis.
- Change management to ensure stakeholders’ satisfaction.
Project Closing Actions
- Assess the design, development, and testing processes.
- Compliance with completion criteria.
- Collect outstanding payment.
- Recognize and evaluate staff planning.
- Project implementation.
- Archive all acceptance documents.
- Assess lessons learned so far.
Conclusion & Lessons Learned
Throughout the implementation stage of the project, the closing phase is one of the most significant sessions for the team members, since at this stage the group will exchange their views and ideas with all the stakeholders and offer opportunities to improve the conditions further through attaining:
- Objectives of the project.
- Significance of project planning and success with outstanding outcomes.
- Clear assignment for eliminating the negative impact for future endeavors.
- Conceptualization of the VOC in selection.
- Benchmark for the continuous improvement process.