shopping world - a project planning case

Gift World

A Project Planning Case

WALEED EL-NAGGAR

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AUGUST 2012

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1. Initiating the Project

You are a project manager for Gift World, a chain of retail stores specializing in gift

shopping with products varying from small gifts to house machines. You’re fairly new to the

position, having been hired to replace a project manager who recently retired.

Gift World currently owns 24 stores in 12 cities. The headquarters for Gift World is in El-

Mohandeseen, Cairo. The company has 750 employees (full-time and part-time), 100 of

whom work at headquarters.

The company’s mission statement reads, “Great shopping experience for great houses.”

Recently, the vice president of marketing paid you a visit. Samir Ghaly is a very nice and

well-dressed man. He shakes your hand and gives you a broad, friendly smile.

“We’ve decided to go forward with our 25th store opening! Sales are up, and our new line of

ceramic cookware is a hot seller, which will serve the Mother’s Day shopping. I don’t know

if you’re familiar with our store philosophy, so let me take a moment to explain it. We like to

place our stores in neighborhoods that are somewhat affluent. Our market studies show that

most of our shoppers have a monthly income of more than LE 8,000 per family. So, we

preferred to place our stores in areas where those folks usually shop.

“We’re targeting the type of customer who wants to have fancy items and prestigious

belongings they see in TV movies. So, the stores are cheerful and convey a fun, energetic

feel, if you will.

“Our next store is going to be right here in New Cairo. Because this is going to be our 25th

store, we plan on having a 25th grand-opening celebration, with the kind of surprises and

activities you might expect for such a notable opening.

“Our stores generally occupy from 200 to 300 square meter of retail space, and we typically

use local contractors for the build-out. A store build-out usually takes 120 days from the date

the property has been procured until the doors open to the public. I can give you our last

opening’s project plan so you have a feel for what happens1. Your job will be to procure the

property, negotiate the lease, procure the shelving and associated store furnishings, get a

contractor on the job, and prepare the 25th store festivities. My marketing folks will assist you

with that last part.

“You have six months to complete the project, any questions?”

1 Isn’t that nice? A project plan for a similar recent project, you are so lucky with this historical data.

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You take in a deep breath and collect your thoughts. Samir has just given you a lot of

information with hardly a pause in between thoughts. A few initial ideas drift through your

head while you’re reaching for your notebook.

You work in a functional organization with a separate projectized department responsible for

carrying out projects of this nature. You already know that Samir is in the executive ranks

and carries the authority and power to make things happen. Therefore, Samir is the perfect

candidate for project sponsor.

You grab your notebook and start documenting some of the things Samir talked about,

clarifying with him as you write:

- The project objective is to open a new store in New Cairo six months from today.

- The store should be located in a wealthy area.

- The store will carry the full line of products from simple gifts to house machines.

- The grand opening will be accompanied by lots of propaganda as it’s the 25th store

opening.

You have a question or two for Samir.

“Is there a special reason we have to open, let’s see, six months from now, which is

February 1st?”

He responds, “Yes, we want the store open the first week in February for 2 reasons. First,

it’s close enough to Mothers’ Day followed by Eastern Easter which means a lot of

shopping. Second, many weddings are held in summer and most of the shopping for the

news homes starts in February to May.

“Another question, Samir, is there a budget set for this project yet?”

“We haven’t set a hard figure,” Samir replies. “But again, from past experience we know it

takes anywhere from LE 0.75 to LE 1 million to open a new store. And we don’t want to

forget the big celebration for the grand opening.”

“Thanks Samir. I’ll get started writing the project charter right away. I’ll be putting your

name on the document since you’re the project sponsor.”

Samir concludes with, “Feel free to come to me with questions or concerns at any time.”

One week later.

You review your notes and reread the project charter you’ve prepared for the Gift World

retail store one last time before looking for Samir. You finally run across Samir in a hallway

near the executive meeting room.



“Samir, I’m glad I caught you. I’d like to go over the project charter with you before the

kickoff meeting tomorrow. Do you have a few minutes?”

“Sure,” Samir says to you. “Let’s have it.”

“The project charter states the purpose of the project, which of course is to open the 50th Gift

World store in New Cairo. I also documented some of the high-level requirements, many of

which we talked about last time we met. I documented the assumptions and constraints you

gave me with the understanding that we’ll define these much more closely when I create the

scope statement. I’ve included a section that outlines a preliminary milestone schedule, and

I’ve included some preliminary return on investment calculations. Using your estimate of

LE1 million as our initial budget request and based on the projected inflows you gave me last

week, I’ve calculated a payback period of 19 months, with an IRR (Internal Rate of Return)

of 18 percent.”

“That’s impressive,” replies Samir. “That’s even better than our Nasr City store. If I recall,

the payback period there was just over two years. Let’s hope those numbers hold true.”

“I think they’re reliable figures,” you say. “I researched our data based on recent store

openings in similar areas and factored in the economic conditions of the New Cairo area2.

Since they’re on a growth pattern, we think the timing is perfect.

“As you know, the project kickoff is scheduled for tomorrow. What I’ll need, then, is for you

to talk about the project and the goals, talk about the commitment you’ll need from the

management team to support this project, and introduce me as the project manager.

I’ve already forwarded a copy of the project charter to the meeting attendees so that they can

review it before the meeting. And I included a list of the assumptions we’ve made so far as

an appendix of the charter. Lastly, I’ll need you to ask everyone present to sign a copy of the

project charter.”

“Sounds like you’ve covered everything,” Samir says. “I don’t anticipate any problems

tomorrow, because everyone is looking forward to this store opening.”

Project Charter Checklist

- Project objective: To open a new store in New Cairo six months from today (February

1st, 2012).

- Business need or demand for project: Company data concludes that the Gift World

consumers have monthly incomes of more than LE 8,000. New Cairo area is home to a

2 Once again, you are very lucky to have these historical data



large number of people with that income. Currently, there is no Gift World store in that

area, but there appears to be a demand for one.

- Project Manager: Waleed El-Naggar, PMP certified project manager.

- Project Sponsor: Samir Ghaly, VP of marketing.

- Organizational structure: Functional organization with a separate projectized

department.

- Project Selection Method: Payback period calculated at 19 months and IRR calculated

at 18 percent.

- Created project charter: Project charter contains the following:

- High-level overview of project

- List of measurable project objectives

- High-level risks

- Summary milestone schedule with initial completion date of February 1st, 2012.

- Summary budget of LE 1 million (besides the grand opening ceremony).

- Project manager authority levels

- Definition of roles of project sponsor and project manager

Next steps: Kickoff meeting set up to discuss charter and obtain sign-off.



2. Develop Project Scope Statement

The project charter kickoff meeting was held and well attended. You’re ready to start

gathering requirements and writing the project scope statement and have a question or two

for Samir. You knock on his door, and he invites you in.

“What’s up” he says.

“I’m ready to define the deliverables and requirements for this project. I want to make sure I

get the right people in the meeting. Who are key stakeholders you recommend I speak with?”

“I can think of a few people that you will certainly need. There’s Hesham Fawzy from

Facilities. He’s in charge of store furnishings, shelving, things like that—any supplies for the

stores that aren’t retail products. He can help out with store build-outs too.

He supervised our last five stores and did a very good job.”

“Anyone else?” you ask.

“You should also talk to Dalia Roshdy, the director in charge of retail products. She can help

with the initial store stocking, and once the store is open, her group will take over the

ongoing operations. All the store managers report to Dalia.”

You thank Samir and tell him you’re going to contact Hesham and Dalia and set up a

brainstorming session to determine requirements.

A few days later:

You review your notes and reread the first draft of the project scope statement you’ve

prepared for the Gift World retail store before looking for Samir. After your meetings with

the stakeholders, you were better able to refine the project objectives and deliverables.

“Samir, I’m glad I caught you. I’d like to go over the project scope statement with you before

I give it to the stakeholders. Do you have a few minutes?”

“Sure,” Samir says to you. “Let’s have it.”

“The project objective is to open the 25th Gift World store in New Cairo by February 1

st.

When I met with Hesham, he confirmed it takes around 120 days to do the store build-out.

That includes having the shelves set up and in place, ready to stock with inventory.”

Samir asks whether Hesham told you about his store location idea.

“Yes, Hesham gave me a contact name of the leasing agent, and I’ve left him a voicemail.

The sooner we can get that lease signed, the better. It takes Hesham 120 days to do the build-



out, and Dalia said she needs 2 weeks lead time to order the initial inventory and stock the

shelves. That puts us pretty close to our February 1 deadline, counting the time to get the

lease papers signed.”

“Sounds good so far,” Samir replies. “What else?”

You continue, “I’ve included an updated description of the products and services the new

store will offer, based on the documentation that was written from the last store opening.

Dalia reviewed the updated description. The store will include some new products that we’ve

decided to include such as cookware from famous chefs.

“Hesham has already made contact with a general contractor in New Cairo, and he is ready to

roll once we’ve signed the lease.

“One more thing, Samir, since we’re targeting a grand ceremony, I talked to some of your

folks in marketing to get some ideas. They are thinking we should have some great

giveaways as door prizes and that we will want the food catered. They also thought having

some live cooking demonstrations with some famous chefs would be a good attraction.”

“Sounds like you’re on the right track. So, what’s next?” Samir asks.

“Once you approve the scope statement, I’d like to send a copy to the stakeholders. My next

step is to break down the deliverables and requirements I’ve documented here into the WBS

so we can get rolling on the work of the project.”

Scope Planning Checklist

The main topics discussed in the case study are as follows:

Stakeholder analysis for requirements gathering: Hesham Fawzy (Facilities) and Dalia

Roshdy (Director of Retail Products) interviewed. Needs, wants, and expectations recorded

and requirements prioritized.

Constraints: February 1st for the grand opening.

Assumptions: These are the assumptions:

- A store build-out usually takes 120 days.

- Dalia Roshdy will help with the initial store stocking.

- Hesham Fawzy will provide supplies for the stores that aren’t retail products, such as

store furnishings, shelving, and so on, and can help with the store build-out as well.

- The budget for the project will be between LE 0.75 to LE 1.0 million.



- Dalia needs 2 weeks lead time to order the initial inventory and stock the shelves.

The project scope statement includes the following:

Project objectives: Open 25th store by February 1 in New Cairo.

Project deliverables: These are the project deliverables:

- Build out storefront, including shelving.

- Retail product line will be delivered two weeks prior to grand opening.

- Have grand-opening party with cooking demos.

Project requirements: These are the project requirements:

- Sign lease within 14 days.

- Offer new lines of gifts.

The WBS includes the following:

- Level one is the project.

- Level two is subprojects or deliverables.

- Level three is deliverables.

- Last level of WBS is the work package level, where time and cost estimates can be

defined in the next process.



3. Creating the Project Schedule

You worked with the stakeholders to document the activity list last week. After creating the

first draft of the project schedule network diagram, you went back to each of them to ask for

time estimates for each of the activities. The Head of Information Technology, Asser El-

Tahhan put some estimates shown here:

1. Procure the T1 connection. This takes 30 to 45 days. This activity can be done

concurrently with the other activities listed here. Asser will perform this activity.

2. Run Ethernet cable throughout the building. This activity depends on the lease being

signed and must finish before the build-out can start. The estimated time to complete

is 16 hours, which was figured using parametric estimating techniques. Asser has one

person on staff that can complete this specialized activity. His first available date is

October 5.

3. Purchase the router, switch, server, and rack for the equipment room and the four

point-of-service terminals. Delivery time is two weeks. Asser will perform this

activity.

4. Install the router and test the connection. Testing depends on the T1 installation at

demarcation. The time estimate to install is eight hours. Asser’s team will perform

this activity.

5. Install the switch. Based on past experience, the time estimate to install is two hours.

Asser’s staff will do this activity.

6. Install the server and test. The testing depends on the T1 connection installation.

Based on past experience, the time estimate to install is six hours. Asser’s staff will

do this activity.

7. The web team will add the new store location and phone number to the lookup

function on the Internet site. The time estimate is two hours. Asser will assign his

applications programming manager to this activity. This activity depends on the lease

being signed.

Hesham and Dalia have each written similar lists with estimates and potential resource

assignments. You begin to align all the activities in sequential order and discover a problem.

Dalia needs 14 days to hire personnel and stock shelves, meaning that the build-out must be

finished by January 16. Build-out takes approximately 120 days and can’t start before

September 20 because of the contractor’s availability. This is a problem because Asser’s

Ethernet cable expert isn’t available until October 5, and he needs 2 days to complete the



cabling. This pushes out the build-out start date by almost 2 weeks, which means the project

completion date, or store-opening date, is delayed a long time

After gathering more information from Asser, you head to Samir’s office.

“So, Samir,” you conclude after filling him in on all the details, “we have two options. Hire a

contractor to perform the cable run since Asser’s person isn’t available or push the store

opening out by two weeks.”

Samir asks, “How much will the contractor charge to run the cable, and are they available

within the time frame you need?”

“Yes, they are available, and I’ve already requested that Asser book the week of September

18 to hold this option open for us. They’ve quoted a price of LE 10,000.”

“OK, let’s bring in the contractor. At this point, LE 10,000 isn’t going to break the budget.

How is that planning coming anyway? Signed a lease yet?”

“Yes, we’ve signed the lease. Hesham has been meeting with Tiba construction on the build-

out. We’ve used Tiba on 3 out of the last 5 new stores and have had good luck with them.”

You spend the next couple of days working on the project schedule in Microsoft Project,

clarifying tasks and activities with Hesham, Asser, and Dalia. You decide that a Gantt chart

will work excellently for reporting status for this project. You stare intensely at the problem

you see on the screen. The Grand Opening task is scheduled to occur 13 days later than when

you need it! Grand opening must happen February 1 and 2, not February 13 and 14 as the



schedule shows. You trace the problem back and see that Grand Opening task depends on

Train Store Personnel, which itself depends on several other tasks, including Hire Store

Personnel and Install and Test Hardware. Digging deeper, build-out can’t begin until the

Ethernet cable is run throughout the building. Asser already set up the time with the

contractor to run the cable on September 18. This date cannot move, which means build-out

cannot start any sooner than September 20, which works with Tiba’s availability.

You pick up the phone and dial Hesham’s number. “Hesham,” you say into the receiver, “I’m

working on the project schedule, and I have some issues with the Tiba activity.”

“Shoot,” Hesham says.

“Tiba Construction can’t start work until the Ethernet cable is run. I’ve already confirmed

with Asser that there is no negotiation on this. Asser is hiring a contractor for this activity,

and the earliest they can start is September 18. It takes them two days to run the cable, which

puts the start date for build-out at September 20.”

“What’s the problem with the September 20 date?” Hesham asks.

“Dalia wants to have the build-out finished prior to hiring the store personnel. During the last

store opening, those activities overlapped, and she said it was unmanageable. She wants to

hire folks and have them stock the shelves in preparation for store opening but doesn’t want

contractors in there while they’re doing it. A September 20 start date for Tiba puts us at a

finish date of January 26, which is too late to give Dalia time to hire and stock shelves. My

question is this: is 85 working days to finish a build-out a firm estimate?”



“Always—I’ve got this down to a science. Tiba has worked with me on enough of these

build-outs that we can come within just a couple of days of this estimate either way,”

Hesham says.

You pick up your schedule detail and continue, “I’ve scheduled Tiba’s resource calendar as

you told me originally. Tiba doesn’t work Fridays, and neither do we. Their holidays are Eid

El-Fetr, Eid El-Adha and Revolution Day, but this puts us too far out on the schedule. We

must have our February 1st opening date.”

“I can’t change the 120 days. Sounds like you have a problem.”

“I need to crash the schedule,” you say. “What would the chances be of Tiba agreeing to split

the build-out tasks? We could hire a second contractor to come in and work alongside Tiba’s

crew to speed up this task. That would shorten the duration to 100 days, which means we

could meet the February 1st date.”

“It won’t happen. I know Tiba. They’re a big outfit and have all their own crews. We

typically work with them exclusively. If I brought another contractor into the picture, I might

have a hard time negotiating any kind of favors with them later if we get into a bind.”

“All right, how about this?” you say. “I’m making some changes to the resource calendar

while we’re talking. What if we authorize Tiba’s crew to work 115% of the usual hours? This

means that 75% of their crew work every Saturday and they can be off Friday? Another

option is to work 1 extra hour every day”

“I think Tiba would go for that as long as they get compensation. You realize it’s going to

cost you?”

“Project management is all about trade-offs. We can’t move the start date, so chances are the

budget might take a hit to accommodate schedule changes or risk. Fortunately, I’m just now

wrapping up the final funding requirements, or the cost budget, so if you can get me the

increased cost from Tiba soon, I’d appreciate it. This change will keep us on track and

resolve Dalia’s issues too.”

“I don’t think Tiba’s crew will mind the overtime during the holiday season. Everyone can

use a little extra cash at that time of year, it seems. I’ll have the figures for you in a day or

two.”



Project Scheduling Checklist


Estimate Activity Durations

Estimate Activity Resources

Developing project schedule

Calendars

Lead and lag time

Critical path

Duration compression

Crashing

Fast tracking

Utilizing project management software

Producing project schedule

Milestones

Gantt chart

Resource leveling



4. Project Budget & Communications Plan

After creating the first draft of the project schedule network diagram, you went back to each

stakeholder to ask for cost estimates for each of the activities. Asser’s estimates are shown

here with the activities he gave you last time:

1. Procure the T1 connection. This takes 30 to 45 days and will have ongoing costs of

LE 3,000 per month. Procurement costs are covered in the monthly expense.

2. Run Ethernet cable throughout the building. The estimated time to complete is 16

hours at LE 100 per hour, which was figured using parametric estimating techniques

(cost = LE 1,600).

3. Purchase the router, switch, server, and rack for the equipment room and four point-

of-service terminals. The estimated costs are LE 17,000.

4. Install the router and test the connection. Testing depends on the T1 installation at

demarcation (8 hours), install the switch (2 hours), and install the server (6 hours)

with an hourly cost of LE 87 per hour. Total cost is LE 1,392.

5. The web team will add the new store location and phone number to the lookup

function on the Internet site. The time estimate is two hours at LE 96 per hour (Cost =

LE 192).

Hesham and Dalia have each written similar lists with time and cost estimates. Using this

information, you create the activity cost estimates and are careful to document the basis of

estimates. The following list includes some of the information you document in the basis of

estimates:

- Asser’s use of parametric estimates for his cost estimates.

- Hesham’s use of both analogous and parametric estimating techniques.

- Dalia’s use of reserve analysis to include contingencies for unplanned changes involving

vendor deliveries.

- Assumptions made about vendor deliveries and availability of the T1 and assumptions

made regarding when lease payments begin.

- The range of possible estimates is stated as plus or minus 10%.

You also document the cost performance baseline and project funding requirements. Since

this project will occur fairly quickly, there are only two funding requirement periods needed.

The communications management plan is also complete, and you’ve asked the key

stakeholder to review it before posting it to the intranet site for the project. You want to make



certain you’ve identified stakeholder communication needs, the method of communication,

and the frequency with which they will occur.

Budget Sheet

Activity Cost Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Procure T1 Connection 12,000EGP 6,000EGP 6,000EGP

Run Ethernet Cable 1,600EGP 1,600EGP

Purchase the router 17,000EGP 17,000EGP

Installation 1,392EGP 1,392EGP

Web Updates 192EGP 192EGP

Build out 400,000EGP 80,000EGP 100,000EGP 100,000EGP 100,000EGP 20,000EGP

Stock shelves 20,000EGP 20,000EGP

Personnell Training 25,000EGP 25,000EGP

Grand opening 50,000EGP 50,000EGP

Contingency 650,000EGP

Total Budget 1,177,184EGP 106,184EGP 106,000EGP 100,000EGP 100,000EGP 65,000EGP 50,000EGP

Communication Plan

Item Audience Output Timing Resp. Project Kickoff Meeting

Project Manager Retail Director Project sponsor Facilities manager

Meeting Minutes Start of the project Project Manager

Weekly Management Meeting


Project Status Report/Project Tracking Sheet

Weekly (Wednesday) Project Manager

Status Report Project Manager Retail Director Project sponsor Financial Manager Senior Management

Project Status Report

Weekly (Thursday) Project Leader

IT Contractor (Sigma IT) Meeting

Project Manager IT Head Sigma IT project manager

Meeting Minutes.

Weekly (TBD) IT Head

Build-out contractor (Tiba) Meeting

Project Manager Retail Director Tiba construction Project Manager

Closure Meeting


Meeting Minutes At the end of the project and major deliverables

Project Sponsor

Communications plan also includes a communication directory with all contact details of

different project stakeholders.



Project Budgeting and Communication Planning Checklist


Estimate Costs

Determine Budget

Cost aggregation

Reserve analysis

Expert judgment

Parametric estimates

Cost performance baseline

Project funding requirements

Plan Communications

Determine effective and efficient communications

Review stakeholder register and stakeholder management strategy

Communications requirements analysis

Communication technology

Communication methods

Communications management plan

Stakeholder needs

Format and language for information

Time frame and frequency of communication

Person responsible for communication

Methods for communicating

Glossary of terms



5. Risk Planning

Asser knocks on your office door and asks whether you have a few minutes to talk. “Of

course,” you reply, and he takes a seat on one of the comfy chairs at the conference table.

You have a feeling this might take a while.

“I think you should know that I’m concerned about the availability of the T1 line. I’ve

already put in the call to get us on the list because, as I said last week, there’s a 30- to 45-day

lead time on these orders.”

“We’re only part way through the Planning processes. Do you need to order the T1 so soon?

We don’t even know the store location yet,” you say.

“Even though they say lead time is 30 to 45 days, I’ve waited as long as five or six months to

get a T1 installed in the past. I know we’re really pushing for the early February store

opening, so I thought I’d get the ball rolling now. What I need from you is the location

address, and I’ll need that pretty quick.”

“We’re narrowing down the choices to a couple of properties, so I should have that for you

within the next couple of weeks. Is that soon enough?”

“The sooner, the better,” Asser replies.

“Great. I’m glad you stopped by, Asser. I wanted to talk with you about risk anyway, and

you led us right into the discussion. Let me ask you, what probability would you assign to the

T1 line installation happening six months from now?”

“I’d say the probability for six months is low. It’s more likely that if there is a delay, it would

be within a three- to four-month time frame.”

“If they didn’t get to it for six months, would it be a showstopper? In other words, is there

some other way we could transfer Dalia’s data until the T1 did get installed?”

“Sure, we could use other methods. Dalia won’t want to do that for very long, but

workarounds are available.”

“Good. Now, what about the risk for contractor availability and hardware availability and

delivery schedules?” you ask.

You and Asser go on to discuss the risks associated with the IT tasks. Later, you ask Dalia

and Hesham the same kinds of questions and compile a list of risks. In addition, you review

the project information for the Atlanta store opening because it’s similar in size and scope to

this store. You add the risks from that store opening to your list as well. You divide some of

the risks into the following categories: IT, Facilities, and Retail. A sample portion of your list



appears as follows, with overall assignments made based on Perform Qualitative Risk

Analysis and the probability and impact matrix:

- Category: IT

- T1 line availability and installation. Risk score: Low

- Contractor availability for Ethernet installation. Risk score: Medium

- POS and server hardware availability. Risk score: Medium

- Category: Facilities

- Desirable location in the right price range. Risk score: High

- Contractor availability for build-out. Risk score: Low

- Availability of fixtures and shelving. Risk score: Low

- Category: Retail

- Product availability. Risk score: Medium

- Shipment dates for product. Risk score: Medium

After examining the risks, you decide that response plans should be developed for the last

two items listed under the IT source, the first item under Facilities, and both of the risks

listed under Retail.

Asser has already mitigated the T1 connection and installation risk by signing up several

months ahead of the date when the installation is needed. The contractor availability can be

handled with a contingency plan that specifies a backup contractor should the first choice not

be available. For the POS terminals and hardware, you decide to use the transfer strategy. As

part of the contract, you’ll require these vendors to deliver on time, and if they cannot, they’ll

be required to provide and pay for rental equipment until they can get your gear delivered.

The Facilities risk and Retail risks will be handled with a combination of acceptance,

contingency plans, and mitigation.

You’ve calculated the expected monetary value for several potential risk events. Two of them

are detailed here.

As an example, the desirable location has an expected monetary value of $400,000. The

probability of choosing an incorrect or less than desirable location is 40 percent. The

potential loss (impact) in sales is LE 1 million.



The expected monetary value of the product availability event is $50,000. The probability of

the event occurring is 40 percent. The potential loss in sales is $125,000 for not opening the

store in conjunction with the Garden and Home Show.

Calculating the monetary value of all the medium and high risks leads at the end to a total of

LE 650,000 for the project contingency.

Risk planning Checklist

- Plan Risk Management

- Identify Risks

- Documentation reviews

- Information-gathering techniques

- Perform Qualitative Risk Analysis

- Risk probability and impact

- Probability and impact rating

- List of prioritized risks

- Perform Quantitative Risk Analysis

- Interviewing

- Expected monetary value

- Plan Risk Responses

- Avoidance, transference, mitigation, and acceptance strategies

- Risk response plans documented



6. Planning Project Resources

You’re just finishing a phone conversation with Dalia, and you see Samir headed towards

your office.

Samir walks in, crosses his arms over his chest, and says: “I thought I’d drop by and see

whether you have signed a lease and gotten Hesham started on that build-out yet”.

“I just got off the phone with Dalia,” you reply. “The Realtor found a great location, and

we’ve set up a tour for tomorrow.”

“What has been the holdup?” Samir asks. “I thought we’d be ready to start the build-out

about now.”

“I’ve been working on the project plans.”

“Project plans,” Samir interrupts. “We already have a plan. That schedule thing and risk stuff

and the budget you drew up over the last couple of weeks spelled things out pretty clearly.”

“I’m almost finished with the project plans. I’d like you to take a look at the human resource

plan after I review with you what we’ve done to date.”

“I don’t understand why you’re wasting all this time planning. We all know what the

objectives are.”

“Samir,” you reply, “if we put the right amount of effort and time into planning, the actual

work of the project should go pretty smoothly. Planning is probably one of the most

important things we can do on this project. If we don’t plan correctly, we might miss

something very important that could delay the store opening. That date is pretty firm, I

thought.”

“Yes, the date is firm. But I don’t see how we could miss anything. You and I have met

several times, and I know you’ve met with Dalia and Hesham. They’re the other key players

on this.”

“Let me finish,” you reply. “I have met with all the key stakeholders and after you review

these last few documents I have for you, we’re finished with the planning phase of this

project. Asser drafted a procurement statement of work. He needs to hire some external

resources—and I noted that in the human resource management plan by the way—to help run

Ethernet cable, procure a T1 line, and purchase some routers and switches. The purchase of

the routers and switches will be accomplished using a fixed-price contract and the human

resources he needs will be procured using a time and materials contract.



Dalia also drew up a procurement statement of work for the gift product lines purchase. I

documented a lot of the human resource plan when we worked through the activity

estimating and duration exercise and put some finishing touches on it yesterday.

It includes a RACI (Responsible-Accountable-Consult-Inform) chart for all our project key

deliverables.” You sneak in a quick breath because you don’t want Samir to interrupt. “And

the quality management plan is complete.

After your review, I’ll distribute it to the key stakeholders. The quality management plan

describes how we’ll implement our quality policy. You know the old saying, ‘Do it right the

first time.’ I took the time to write down the specific quality metrics we’re looking for,

including the lease signing date (this one must start and finish on time) and the IT equipment

specifications, and Dalia has documented the different products lines specifications.”

Samir looks impressed but you can’t tell for sure.

“After I look at the last of these planning documents, are we ready to actually start working?”

“Yes, as soon as the lease is signed. I anticipate that happening by the end of this week.

Tomorrow’s tour is the fifth location Dalia will look at. She’s very happy with the third

property she saw but wants to look at this last property before she makes her final decision.”

“Great. Let’s take a look at that human plan or whatever it is.”

After reviewing the last of the planning documents, Samir signs off on the project plan

RACI Chart

Activity Project

Manager

Sponsor Retail

Director

Facilities IT Head

Project Planning R A C C C

Overall budget R A I I I

Build-out A I R I I

Project Reporting R A C I I

Technical Reviews A I I R


shopping world - a project planning case

Leadership & Management