a2z bike shop project - ucbx470 - home bike shop project ucbx470 project management august 2007...
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A2Z Bike Shop Project
UCBX470 Project Management August 2007
Jason Hall Kirill Mogilev
Pradeep Mahapatra Galen Middlebrooks
i
Rajesh Shikaram Juveria Aleem
ii
Table of Contents
Contents Project Scope .......................................................................................................................................................... 1
Vision Statement ................................................................................................................................................. 1 Business Need ..................................................................................................................................................... 1 Project Description .............................................................................................................................................. 1 Project Deliverables (Scope) ............................................................................................................................... 2 Project Objectives ............................................................................................................................................... 2 Assumptions ........................................................................................................................................................ 3 Constraints .......................................................................................................................................................... 3
Stakeholder Analysis .............................................................................................................................................. 4 Project Lifecycle ..................................................................................................................................................... 5 Work Breakdown Structure .................................................................................................................................... 6 Communications Plan ............................................................................................................................................. 7 Responsibility Assignment Matrix ......................................................................................................................... 8 Project Schedule 12 Cost Baseline ........................................................................................................................................................ 15 Cost Baseline Graph ............................................................................................................................................. 17 Risk Types ............................................................................................................................................................ 20
High-Level Risks ......................................................................................................................................... 20 Risk Assessment Metric ........................................................................................................................... 20
Risk Response Plan ............................................................................................................................................... 21
1
Project Scope
Vision Statement A2Z Bike Shop company aims to set up a network of bike rental shops to promote a healthy lifestyle for the bike riders and offer social and recreational activities by facilitating bike clubs.
Business Need Currently there are very few bay area bike rental shops that provide social and recreational activity. Since the Bay Area is known to be environmentally conscientious, the ‘Shop owner’ Bike Rental shop will provide a modern and unique recreation experience to the consumer. This service will be used to tap a potential market area for generating revenue and setup a successful business.
Project Description • This project will design and build an A2Z Bike Rental franchise bike shop in the bay
area. The shop will meet all specifications of A2Z Bike Rental and will be delivered on time and with budget to the franchisee. The shop will include:
Finished flooring and window coverings HVAC and Utility Systems Retail merchandise display space Bicycle maintenance area Inventory and rental storage areas Conference and multi-purpose rooms Handicap approved restrooms Locker rooms complete with showers Network wiring for entire facility Administrative office space
2
Project Deliverables (Scope)
Is Is Not • Verifying that all
documentation is in place before construction
• Finding the location of the shop
• Verifying that all needed sub-contractors are hired before construction / remodel
• Commercial licensing for the shop, zone compliance and city approvals
• Conducting quality review of sub-contractors
• Negotiating the contract between the A2Z Bikes and franchisee
• Delivering completed bicycle shop to its owner
• Not constructing the building
• Setting up office peripherals or any other operational support, maintenance and security
Project Objectives
Objectives Criteria for Evaluation • Obtain Project Approval • Signed Franchise agreement
• Present charter and project scope
• Review / sign-off by A2Z Bikes and franchisee
• Write Project Plan • Certification by A2Z Bike rep
• Inspect building facility • Sign off on proposed construction bids by stakeholders
• Hire sub-contractors for external / internal remodeling and utilities installation
• Conduct pre-delivery inspection with A2Z representatives and franchisee
• Deliver fully functioning and furnished bike rental facility to the client
• Final building inspection, turning keys over to franchisee
3
Assumptions • All franchise agreements between Shop owner and A2ZBike Shop are signed • Location and property already selected • Funding is established • Design specs from Shop owner are readily available • City approval obtained • Business licenses and permits are acquired • Lease/Rental contract between Shop owner and building owner is completed • Signup for Utilities will be completed by Shop owner
Constraints • Complete project with budget allocated by project sponsor • Weather • Availability of specialized materials, accessories from manufacturers • Labor union/Vendor labor, Skilled/Specialized labor availability issues • Building design and layout must meet bike shop parents specs • Major variations of building layout could affect project schedules • Natural disaster consideration • Finish project by Date xx/yy/07
4
Stakeholder Analysis
Stakeholder Name
Stakeholder Expectations
Bike
Manufacturer (Franchiser)
Engage & participate in review meetings with the project team setting up the bike rental shop. It is expected the manufacturer will choose the location of the shop, provide detailed shop design & has an agreement directly with the shop owner.
Project Team
General contractor specializing in developing bike rental shops. The expectations is to fully manage and develop the bike shop as per the specifications from the franchiser.
Building Leaser/Owner
Co-operation during the development of shop. Provides structure design as input for planning & any approvals required for securing utilities.
Sub-Contractors
Have an agreement with the General contractor and work with the project team to deliver what is expected or agreed upon. Participate in review sessions as expected by Project Team. They do not deal with the bike manufacturer, shop owner or building owner/leaser.
Government Agency
They work with General contractor for all approvals & inspections. They do not deal with the bike manufacturer, shop owner or building owner/leaser.
Shop Owner (Franchisee)
Has an agreement with the Bike Manufacturer. Interfaces with the project team for period inspections & review meetings.
6
Work Breakdown Structure 1. Initiation
a. Obtain Project Approval b. Write Project Charter c. Write Project Plan d. Select Team Members
2. Planning a. Initial Facilities Inspection b. Verify Permits and Zoning c. Verify Utilities
i. Gas ii. Electric iii. Sewer
d. Hire Sub‐Contractors i. Electrical ii. Plumbing iii. Carpentry iv. Interior Design
3. Execution and Control a. Execute original Project Plan b. Monitor Progress c. Identify and rectify problems d. Control Sub‐Contractors
4. Review and Evaluation a. Conduct Regular Sub‐Contractors Performance Reviews b. Report on progress to A2Z Bikes and franchisee
5. Closure a. Verify work completed b. Final walk‐thru with owner and A2Z Bikes c. Turn keys over to owner
7
Communications Plan
Topic of Communication
Sp
on
sor
Pro
ject
M
an
ag
er
Pro
ject
Team
Su
b-
Co
ntr
act
or
Fra
nch
iser Frequency Method of
Communication Method of Delivery
Project Charter O I once meeting/email Word Project Scope S O O once meeting/email Word WBS S O O once meeting/email Word Project Schedule
S O I I ongoing meeting/email MS Project
Cost Baseline S O once meeting/email Word Risk Plan R O ongoing meeting/email Word Status Report (includes weekly meeting minutes)
R O I I weekly email
Word
Sub-contractor Proposals and Coordination
S,O,R
S,O,R
weekly
Quality Inspection Report
O O S Milestone based
meeting/email
Word
Safety Certification
O O S once email
Word
Lessons Learned
O I once email Word
KEY: O = Owner I = Input R = Reviewer S = Sign off
15
Cost Baseline
Task Duration Days Daily Rate Misc. Cost Total Cost
Phase 1 – Project Initiation Obtain Project Approval 2 $600.00 $1,200.00 Write Project Charter 5 $600.00 $3,000.00 Write Project Scope 5 $600.00 $3,000.00 Project Scope Review 3 $600.00 $1,800.00 Project Scope Approval 1 $600.00 $600.00 Write Project Plan 5 $600.00 $3,000.00 Identify & Define Resources 5 $600.00 $3,000.00 Phase 1 Totals: 26 $15,600.00 Phase 2 ‐ Project Planning Initial Building Inspection 3 $800.00 $500.00 $2,900.00 Verify Permits and Zoning 2 $600.00 $1,200.00 Verify Utilities 5 $600.00 $3,000.00
Solicit / Review Sub‐Contracting Bids 5 $600.00 $3,000.00 Hire Sub‐Contractors 3 $600.00 $1,800.00 Phase 2 Totals: 18 $11,900.00 Phase 3 – Construction Structural Modifications 21 $1,000.00 $10,000.00 $31,000.00 Build out Retail Area 90 $1,800.00 $10,000.00 $172,000.00 Build out Service Area 60 $1,800.00 $10,000.00 $118,000.00 Build out Storage Area 30 $1,800.00 $5,000.00 $59,000.00 Build out Conference Area 45 $1,800.00 $5,000.00 $86,000.00 Build out Locker Rooms 45 $1,800.00 $10,000.00 $91,000.00 Build out Admin. Offices 21 $1,800.00 $5,000.00 $42,800.00 Build out Storefront 14 $1,800.00 $5,000.00 $30,200.00 Build out Receiving Station 14 $1,800.00 $2,000.00 $27,200.00 Build out Outdoor Facilities 14 $2,000.00 $2,000.00 $30,000.00 Phase 3 Totals 354 $687,200.00 Phase 4 – Review and Evaluation Contractor Reviews 45 $600.00 $27,000.00 Stakeholder Progress Reports:
25% Completion 7 $600.00 $4,200.00 50% Completion 7 $600.00 $4,200.00 75% Completion 7 $600.00 $4,200.00
100% Completion 7 $600.00 $4,200.00 Completion of Scope Verification 7 $900.00 $6,300.00 Phase 4 Totals: 80 $50,100.00
16
Task Duration /Days Daily Rate Misc. Cost Total Cost
Phase 5 ‐ Project Closure Pre‐Delivery Inspection 3 $900.00 $2,700.00 Stakeholder Inspection 3 $1,000.00 $3,000.00 Turn over store to Franchisee 1 $1,000.00 $1,000.00 Phase 5 Totals: 7 $6,700.00
Project Grand Total: $771,500.00
Cost Baseline Graph
Phase 1-Project Iniiation
$-$500.00
$1,000.00$1,500.00$2,000.00$2,500.00$3,000.00$3,500.00
Obt
ain
Pro
ject
App
rova
l
Writ
eP
roje
ctC
harte
r
Writ
eP
roje
ctS
cope
Rev
iew
of
Pro
ject
Sco
pe
App
rova
l of
Pro
ject
Sco
pe Writ
eP
roje
ctP
lan
Def
ine
&Id
entif
yR
esou
rces
Task
Cos
t
Phase 2-Planning
$-$500.00
$1,000.00$1,500.00$2,000.00$2,500.00$3,000.00$3,500.00
InitialBuilding
Inspection
VerifyPermits and
Zoning
VerifyUtilities
Review Bidsof Sub-
Contractors
Hire Sub-Contractors
Task
Cos
t
17
Phase 3-Construction
$-$20,000.00$40,000.00$60,000.00$80,000.00
$100,000.00$120,000.00$140,000.00$160,000.00$180,000.00$200,000.00
Structu
ral M
odific
ation
Build o
ut of
Retail A
rea
Build o
ut of
Service
Area
Build o
ut of
Storag
e Area
Build o
ut of
Confer
ence
Area
Build o
ut of
Lock
er Roo
ms
Build o
ut of
Admin
office
s
Build o
ut of
storef
ront
Build o
ut of
reciev
eing s
tation
Build o
ut of
outdo
or fac
ilities
Task
Cos
t
Phase 4-Review
$-$5,000.00
$10,000.00$15,000.00$20,000.00$25,000.00$30,000.00
Con
duct
Con
tract
orR
evie
ws
Pro
gres
sR
epor
ts T
oS
take
hold
ers
25%
com
plet
ion
50%
com
plet
ion
75%
com
plet
ion
100%
com
plet
ion
Ver
ifyC
ompl
etio
nof
Sco
pe
Task
Cos
t
18
19
Phase 5-Project Closure
$-$500.00
$1,000.00$1,500.00$2,000.00$2,500.00$3,000.00$3,500.00
Conduct Pre-DeliveryInspection
Inpection by Stakeholders Receipt of keys andturnover
Task
Cos
t
20
Risk Types
High-Level Risks • Project Risks
– Cost Risk – Scope Risk – Schedule Risk – Project Management & Organizational
• External Risks – Vendor Risk – Liability Risk - Safety Risk & Regulatory Compliance Risk – Force Majeure – Earthquakes, Floods, etc
• Qualitative Risks Assessment – Cardinal Scales : For Impact of Occurrence, Ex: 0 to 10 – Ordinal Scales : For Impact on Project, Ex: Low, Medium & High
• Strategies for Threats – Avoidance – changing plan to eliminate the risk – Transference – shifts consequence of a risk to a third party, including
ownership – Mitigation – reduces probability and/or consequences of an adverse risk to
acceptable level – Acceptance – risk is assumed. Contingency plan may be developed or team
may deal with the risk only at the time of occurrence
Risk Assessment Metric
Assessment
Probability
High > 50%
Medium 25% - 50%
Low < 25%
21
Risk Response Plan
No. Risk Description Area Probability of Occurrence
Impact on Project
Priority Strategies A/T/M/Acc
Owner Status
1 Permits
Schedule High High 1
Avoidance by getting appropriate permits on time
PM Open
2 Project Cost Overrun Cost High Medium 2
Avoidance by following best practices and weekly meeting. Mitigation through Scope re-assessments
PM Open
3 Project Scope Creep Scope High Low 3
Mitigation – thorough regular assessments & Change Control
PM Open
4 Sub-Contractor’s delays with specialized parts/equipments
Schedule Low High 4
Mitigation - Negotiate with alternate preferred Sub-Contractor’s . Use influence to acquire parts & expedite execution
PM Open
5 Sub-Contractor’s actual price is more than estimated price
Cost Med Medium 5
Mitigation – Scrutinize the Sub-Contractor’s quote carefully before contract
PM Open
22
signatures. Monitor billed Invoices on a regular basis. Renegotiate
No. Risk Description Area Probability of Occurrence
Impact on Project
Priority Strategies A/T/M/Acc
Owner Status
6 Vendor project execution delays
Schedule 8 Medium 6
Avoidance by using Best Practices for construction/execution Transference – by shifting ownership to Vendors
PM Open
7 Sub-Contractor’s goes out of business before project completion
Schedule Low Medium 7
Mitigation – Negotiate with alternate preferred Sub-Contractor’s
PM Open
8 Resource re-Allocation/Hiring
PM & O Low Medium 8
Avoidance by buy-in from Managers Mitigation by closely monitoring progress
PM Open
9 Project funding - reallocated to some other project
Cost Low High 9 Acceptance Sponsor Open