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Sweet Berry coffee shop is a business-oriented project whose main objective is to provide beverage and pastry services to customers, across different market segments in the hospitality industry, within the locality. Beverage products offered by the shop will include iced, blended, and hot coffee, hot and iced tea, and several other pastry accompaniments. Sweet Berry coffee shop is a limited liability business operating under a mother company known as Berry Restaurants Company.
The building where the coffee shop is to be located will be acquired through a three-year lease contract with the option of extending the contract. The property occupies a space of 1400 square feet, situated in a strategic location that is accessible to customers. The coffee shop will consist of a restaurant and a coffee bar with a capacity of holding 120 customers. The project will be implemented and supervised by a team appointed by the project manager in consultation with the project’s sponsor, Mr. Abraham Jefferson. The Project team members include:
- Eng. James Patton- Project chief structural engineer.
- Christina Brito-Project finance director.
- William Ashley- Project manager.
- Wendy Keppler- Logistics manager.
- Wilkison Johnson- Project human resource manager.
Eng. James Patton, who is the project’s chief engineer, possesses years of experience in interior design, especially in hospitality establishments. He will be responsible for property management and other design-related duties in the acquired building. Christina Brito will be responsible for controlling the financial resources that are required in implementing the project and relative financial estimations of services and equipment that need to be purchased.
William Ashley, the project manager, is responsible for managing the whole project. He will be responsible for planning, monitoring, evaluating, and coordinating with other functional heads of the team during the implementation phase of the project.
Wendy Keppler, the project’s head of logistics will be involved in acquiring the necessary materials needed for executing the project. She is an experienced logistician and will be in charge of purchasing, supplying, and storing materials needed during the implementation of the project. Finally, Wilkison Johnson will be responsible for the recruitment and management of the human resource segment that is vital during the implementation phase. The team will be meeting every week to review the progress and development of the project under the guidance of the project manager.
Sweet berry coffee project’s implementation phase will be initiated on 16th June 2013 and it is expected to end by 2nd August 2013. This phase is set to take place after the sponsor’s approval. The project’s scope entails the purchase and installation of equipment, materials, utensils, and cutlery that is needed in a typical coffee shop. Other activities will involve designing and refurbishing the acquired building, budgeting and planning, and labor cost for implementation of the project. The project team is expected to deliver a monthly status report on the progress of the project, the project’s scope, and the evaluation processes (Harold, 2003).
|Project activities||Cost in dollars||Additional cost|
|Purchase of 3 coffee making machines, baking ovens, and other building accessories||68,000||The cost of a three-year lease of the building at 375,000 dollars|
|Purchase of the service equipment, utensils, and cutleries||16,000|
|Refurbishing of the building including designing the interior and painting||27,000|
|10% contingency cost||52,900|
|GRAND TOTAL COST||581,900 dollars|
The budget formulated by the project team takes into account the crucial activities involved during the project implementation phase. The cost of implementing these activities was agreed upon through a survey on the market value of products, materials, and services needed in implementing the project by the project’s financial director. This budget takes into account the fluctuation in prices of materials and the projection of the economic conditions in the period of implementation. This includes a 10% contingency amount to cater for the fluctuation in prices (Fleming, 2005). The estimated amount for this budget was considered realistic and workable by the project team and, therefore, approved.
Fleming, Q. (2005). Earned Value Project Management. New York: Project Management Institute.
Harold, K. (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. New Jersey: Wiley publishers.