Table of Contents s416

TABLE OF CONTENTS 1

INTRODUCTION 1

Project Charter 1

Project PLAN 1

Project Life cycle management 9

Work-Break down structure 9

Project Budget 10

REFERENCES 12

Project Charter: 13

Risk Register: ……. 1

Project Change Request 1

Project Register 1

sCHEDULE 2

Project Plan

INTRODUCTION

Aussie Ltd is a company specialising in design and supply of signage. Aussie is planning for expansion and so they have recently acquired a 35000 sq. feet for developing their new ware-house facility. This new facility will house all man-power and goods of the existing 25000 sq. feet warehouse with expansion provision. The location of the new ware-house fits in Aussie’s strategy of expansion as it would help in meeting demands of global organizations. Viewing the strategic importance of completing the project in time, cost and operationally efficient manner, Aussie has appointed Pm Company as project management consultants. This report gives the project plan including the project management tools and techniques that would be required in executing the project.

Project Charter

Project charter was created and authorized by the sponsor MR Tim

Project PLAN

Document Management

Distribution List

Record the details of all project stakeholders accessing this document.

Name / Position / Signature / Date
MR. Tim / Client / 10-03-2013
MR. Huy / Development / 10-03-2013
Mr. Hang / Project Director / 10-03-2013

Version Control

Record all approved changes to this document.

Revision # / Change Description / Approval Date / Author
00 / Nil / 12-03-2013 / Pm

Project Registration

Project Name

Aussie Warehouse project.

Project #

Project plan

Creation Date

10-03-2013

Sponsor/Client

MR. Tim

Aussie LTD

1 King William, Adelaide, South Australia, 5000

Project Director

Mr.Hang

Pm Company

Executive Summary

Rationale

The present capacity of the existing ware house of Aussie Ltd has constraints of space and they need to have a bigger warehouse and therefore the building has been procured. the feasibility of the building has been checked and PM company has been appointed as Project management consultant.

Business Drivers

The new location is good in terms of supply chain and will provide competitive advantage to connect with international clients.

Key Objectives

Provide a world class ware house facility as per specification within the budgeted cost and schedule.

Benefits

· Increase in sales by 20 %.

· Transportation cost to reduce by 10 %.

· Reduce lead time by 2 days.

Impacts

· Increase in profits.

· Reduction in inventory.

Project Information

1 Integration Management

1.1 Methodology

Project plan will be the master document. This will have inputs from all process groups.

1.2 Change Control

Any change shall be recorded through the change control form. Change Control board shall comprise of:

· Project Director

· Business Development head

All changes shall be undertaken after approval from Change control board.

1.3 Performance Reporting

Monthly progress reports shall be issued to client and all stake holders. Performance review shall be done by project manager o weekly basis.

1.4 Audit

Quality Audits, process audits and documentation audits shall be conducted.

Type of Audits / Frequency / Auditor
Quality Audits / Every month and on request / Quality Inspector
Process audits / Once in 3 months / Project Director
Documentation audits / Every month / PM

1.5 Dependencies

Nil

2 Scope Management

2.1 Deliverables

1) Contracts and specifications.

2) Conceptual design note of the operation of the warehouse.

3) Design of loading un-loading system.

4) Design of Roads.

5) Design of Conveyor system

6) IT security system concept note and design.

7) Security and Time office Design and Drawings.

2.2 Inclusions

Construction supervision

2.3 Exclusions

Recruitment.

2.4 Handover

Drawings and documents shall be shared during the project and the final as-built documents with contract closure documents shall be part of final signoff.

3 Time Management

183.1 Schedule

Activity No / Activity Description / Duration
(weeks)
1 / Understanding customer requirements / 1
2 / Approval of requirements from client / 1
3 / Identifying space for truck parking and approval from municipal authority. / 2
4 / Finalizing civil contractor for loading unloading facility and parking space development, pallets for warehouse, conveyors etc. / 3
5 / Take approval for road widening, strengthening, construction / 2
6 / Assigning contract for road works / 3
7 / Assigning contract for IT system integration / 3
8 / Mobilizing of machinery for civil contractor / 2
9 / Mobilizing machinery for road contractor / 2
10 / Road Works / 21
11 / Loading –unloading shed / 10
12 / Parking lot / 12
13 / Security and time office / 10
14 / Installation of fire alarm and firefighting system / 3
15 / Pallets, conveyors / 14
16 / Internal partitions for office space / 12
17 / Permission from water supply and electrical authorities / 3
18 / Installation of IT system / 2
19 / Recruit staff for ware-house , time office and house keeping / 2
20 / Installation of CCTV cameras high intensity lights / 1

3.2 Milestones

Approval of project requirements from client: 2nd week

Award of contract to civil, Road, IT contractors 5th week

Approval from all statutory bodies and civic authorities 5th week

Completion of loading-unloading shed 20th week

Completion of IT works 24th week

Completion of road works 28th week

Project closure 30th week

4 Cost Management

4.1 Budget

Total project budget is $ 6 million.

4.2 Estimating methodology

Bottom up with normalization for duplicates and consideration for missed scopes.

4.3 Confidence level

90 %

4.4 Contingency

5 %.

4.5 Source of Funds

Aussie Ltd shall release funds as per invoice raised by contractors and approved by PM company.

4.6 Cash Flow

End of month. Credit period 45 days.

5 Human Resource Management

5.1 Stakeholders

Stake holder / Requirements / Importance /
Owner / On-time completion
Least Cost
Smooth operation
Material and man-power safety. / Very-High
Very-High
High
High
PM company / Timely approvals by Owner / Very-High
Vendors for civil works, material handling and Automation works / Advance payment
Support for approval
Existing Drawings
Lodging facility / Medium
Medium
Medium
Low
Human Resource consultant / Advance payments
Labor relationship management / Medium
Medium
Adjacent Plot Owners / No damage to existing infrastructure
Develop infrastructure
No adverse pollutants or hazardous material
No waste disposal or encroachment of neighboring sites / High
Medium
High
High
Employees / All requirements of safety health and environment (SHE)
Travel arrangement
Recreation and basic facilities like food and water / High
Low
Medium
Municipal corporation / All municipal laws, tax laws.
Road and fire safety regulation / High
High

5.2 Resource Capability

All are fixed rate contracts.

6 Communications Management

6.1 Organisational Structure

6.2 Escalation

As per contract if project gets delayed because of reasons solely attributable to Aussie Ltd then PM company will be paid at the rate of 1 % of contract value per week .

7 Procurement and Contracts Management

No in-house make capacity exist so only buy decisions are to be taken. 4 contracts are planned for the project. The contracts are listed below:

· Contracts for Road works.

· Contract for Interiors, unloading bay, parking shed , time office.

· Conveyor galleries and material handling.

· Human resource consultant.

8 Risk Management

8.1 Constraints

Budget and schedule are major constraints.

8.2 Assumptions

· Building meets all statutory and technical requirements. The only modifications required are from the perspective of warehouse.

· The location has provision of water, fire station and medical facility.

· The risk associated with tax-laws and integration feasibility with other supply chain units have been taken care before acquiring.

· The project is viable from accounting perspective.

8.3 Potential Issues

The property of neighbor --- Ensure no damage to their property.

8.4 Risk

Refer to Risk register template.

9 Quality Management

The minimum required quality for all deliverables and works are defined in contract through technical specifications.

Authorisation

10 Recommendation

The project is very critical from strategic perspective of the client and also has future expansion plans. The project has a challenging timelines and so the role of PM Company will be critical.

11 Approval

Record the decision that has been made on the project.

ü Approved / ¨ Postponed / ¨ Cancelled / ¨ Review

12 Sign off

Project Director --- Date15-03-2013

Development--- Date15-03-2013

Client--- Date 15-03-2013

13 Appendices

Refer to the template below

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Project Life cycle management

The project goal is to meet requirements of customer and other important stake holders. The goal for the ware house project is to “Execute a warehouse which would meet all operational requirements with least cost and time and shall meet all environmental and statutory requirements”. The ware house should be able to meet all requirements of the supply chain. The next phase is project planning which involves budgeting, resource planning, work-breakdown structure, division of responsibility etc. This also requires a communication plan and first level schedule. Major contracts are assigned in this phase (Kerzner 2008 and Heyworth 2002).Project execution is next phase; this requires maximum resources in-terms of man-hours and funds. From project management perspective this requires regular schedule evaluation; cost evaluation, change request handling, and conflict management etc. (Lewis 2007 and Heyworth 2002). Success of this phase is highly dependent on qualities of the Project Manager and his resource handling capabilities. This phase has maximum scope change requests and extra claims. The chance of delay is maximum in this phase. The project closure procedure ensures completion of the project in all respects. The closing stage requires closure of all contracts and final settlement with respect to payment and demobilization of resources. The site hand-over and handover of archives of project documentation to client is done in this phase. Final stage is evaluation which is done to evaluate the success of project and for knowledge transfer to next project. Sometimes the project extends beyond the closure as maintenance contracts generally any new contract after closure should be considered as new project.

Work-Break down structure

Ware house requirements are very specific and the requirements for a ware-house project require knowledge of supply chain also (Meindl 2010). First level work break down structure is shown below.

1. Understanding needs of customer

a. Present and future plans.

b. Transportation plans

c. Storage requirements

2. Getting client approval

a. Scope agreement and concept note approval

b. Approval on schedule and cost budget.

c. Important drawings and documents.

3. Getting approval from local authorities.

a. Submit documents.

b. Coordinate inspection visit.

c. Modify as per comments or provide clarifications and get approvals

4. Identifying civil contractors.

a. Develop specification and scope documents.

b. Release tenders

c. Bid analysis and recommendation.

d. Finalize contractor.

e. Select contractor.

5. Identifying information system and material handling contractors.

a. Develop specification and scope documents.

b. Release tenders

c. Bid analysis and recommendation.

d. Finalize contractor.

e. Select contractor.

6. Approval of execution drawings and documents.

7. Approval of execution drawings by information system and material handling contractors.

8. Construction works.

a. Boundary wall.

b. Cabins and partition walls.

c. Weighing bridge

d. Time office.

9. Executing material handling works

a. Erection of monorail and cranes.

b. Pallet installations

c. Conveyor installation.

10. Inspection and testing of material handling works.

11. Information system installation.

a. Automation

b. MRP and other system installation.

12. Recruitment

a. Identify resources at various levels.

b. Housekeeping staff contract.

13. Project closure

Project Budget

Budget
Cost Head / Contract Value ($ millions)
Road & drain works
Roads
Internal / 0.1
External / 0.6
Drains
Internal / 0.05
External / 0.15
culverts / 0.05
Civil& Architecture works
Unloading area / 0.2
Parking shed / 0.2
Time office / 0.2
Interiors / 0.5
Material Handling works
Conveyors / 0.8
crane and hoist / 0.2
weigh bridge / 0.2
Pallets / 0.5
IT Works
CCTV cameras / 0.2
JIT installation / 0.5
Pallet Automation / 0.5
Hr Consultant / 0.05
Ware house Insurance / 0.1
Administrative expenses / 0.2
Project expenditure / 0.2
Contingency Reserve / 0.5
Total / 6

REFERENCES

Meredith, Jack and Mantel, Samuel (2008)Project Management: A Managerial Approach, London: John Wiley & sons

Harold Kerzner (2000).Project Management-A Systems Approach to Planning , Scheduling and Controlling. 7th ed. Newyork: John Wiley & Sons. p1-1000.

Project Management Institute (2008).A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 4th ed. USA: Project Management Institute. p1-495.

John M. Nicholas , Herman Steyn (2008).Project Management for Business, Engineering, and Technology. 2nd ed. Berlington: Elsevier. p15-450.

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