Improvement Plan for Automating the Ordering Process - Project Objectives - Stakeholders - Budget

Questions:

You are required to the following in your report:

1.Outline the objectives of the project (Step 1 of Design Thinking Methodology, Record your interactions).
2.Define the problem (Steps 2 of Design Thinking Methodology).
3.Identify and list the stakeholders.
4.Finalise the requirements for the change using Waterfall steps namely, Planning and Analysis phases
5.Prepare a System Request Form
6.Draft budget for the project based on the requirements and assumed timeframe (Budget in an Excel Spreadsheet)
7.Competitive advantage that might be gained in developing the new information system?
8.Possible effects for Crinitt Venice if its information system project fails?

Answer:

Introduction

The report has aimed to suggest an improvement plan for incorporating automation in the ordering process. It has included a 12 months budget for implementing the change plan. Some of the various types of the other scope of the study is seen with System Request Preparation and Finalizing the requirements for change using waterfall steps.

Project Objective

The report objectives are based on preparing a system request form for automating the restaurant’s manual ordering process. The various types of the suggestions for the development of the report has been seen with linking the inventory of stock and ordering process for tracking “wastage/inconsistencies” and streamlining the ordering process. The report will also develop a budget for the financial requirement in developing the new mobile app which will have exclusive deals for the customers (Georgievski and Bouman 2016).

Defining the Problem

The present problem is seen with taken into consideration with manually taking of orders in by hand on pads with carbon paper. In addition to this, the inventory is manually monitored by Head Chef who is responsible for supervising the manual recording of the stocks on a note pad at the end of each day of work.

Identification of the List of Stakeholders

The main stakeholders of the restaurant have been identified with the customers, manager, Lisa, Head Chef, Mark. In addition to this, the waiters, chefs and bartenders are also identified as the major stakeholder of the company (Ivanov, Webster and Berezina 2017).

Finalizing the requirements for change using waterfall steps

Budget

Start-up Requirements

	Start-up Expenses
	Fixed Costs	Particulars	Amount ($)
		Premises (RENT & RATES)	$15,000
		Staff Salaries	$100,000
		Executive Salaries	$100,000
		Interest on loan 8%	$6,600
		Accountant Fees	$100,000
		Payroll Tax	$1,200
		Retainer contracts	$1,600
		Sales and Marketing	$2,500
		Postage & Telephone	$350
		Brouchers	$100
		Website Development Expenses	$5,000
		Logo Designs	$300
		Market survey	$750
		Preliminary expenses	$150
		Lease payments	$1,500
		Total Fixed Costs	$335,050
	Total Yearly Costs
		Rent	$15,000
		Lease payments	$1,500
		Interest on loan 10%	$6,600
		Postage & Telephone	$350
		Maintainance	$100
		Salaries	$200,000
		Total Average Monthly Costs	$223,550
		x Number of Months:	12
		Total Yearly Costs	$2,682,600
	Total Startup Expenses		$3,017,650

	Start-up Assets
	Owner Funding
		Owners Fund	$35,000
		Total Owner Funding	$35,000
	Loans
		Bank Loan	$66,000
		Other
		Total Loans	$66,000
		Total Start up Funds	$101,000
	Assets
		Equipment	$200,000
		Vehichels	$30,000
		Computer	$42,000
		Total Fixed Assets	$272,000
	Total Start-up Assets		$373,000

X-Axis Label	Sales	Gross Margin	Net Profit
Month 1	$90,000	$221,390	($131,390)
Month 2	$126,000	$242,106	($116,106)
Month 3	$176,400	$271,417	($95,017)
Month 4	$246,960	$310,962	($64,002)
Month 5	$345,744	$364,196	($18,452)
Month 6	$484,042	$436,542	$47,500
Month 7	$677,658	$534,633	$143,025
Month 8	$948,722	$667,837	$280,885
Month 9	$1,328,210	$848,990	$479,220
Month 10	$1,859,494	$1,095,708	$763,787
Month 11	$2,603,292	$1,432,186	$1,171,106
Month 12	$3,644,609	$1,891,695	$1,752,914

(1) SALES FORECAST
Month	0	1	2	3	4	5	6	7	8	9	10	11	12
Projected Sales		90,000	126,000	176,400	246,960	345,744	484,042	677,658	948,722	1,328,210	1,859,494	2,603,292	3,644,609
(b) Cost of sales		50,000	65,000	84,500	109,850	142,805	185,647	241,340	313,743	407,865	530,225	689,292	896,080

(2) CASHFLOW FORECAST
	Preop
Month	0	1	2	3	4	5	6	7	8	9	10	11	12

CASH INFLOWS
Cash from Sales		90,000	126,000	176,400	246,960	345,744	484,042	677,658	948,722	1,328,210	1,859,494	2,603,292	3,644,609

Directors loans	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000	66,000
Capital Employed	100,000	35,000	40,000	15,000	10,000	50,000	12,000	15,000	20,000	25,000	10,000	20,000	25,000
Other cash inflows

TOTAL CASH INFLOW	166,000	191,000	232,000	257,400	322,960	461,744	562,042	758,658	1,034,722	1,419,210	1,935,494	2,689,292	3,735,609

CASH OUTFLOWS

Payments for materials		50,000	65,000	84,500	109,850	142,805	185,647	241,340	313,743	407,865	530,225	689,292	896,080
operating expenses ( )	0
Premises (rent, rates)	0	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000
Wages and salaries	0	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000
General expenses	0	300	300	300	300	0	0	0	0	0	0	0	0
Interest and bank charges payable	0	6,600	6,600	6,600	6,600	6,600	6,600	6,600	6,600	6,600	6,600	6,600	6,600
Lease payments	0	1,500	1,545	1,591	1,639	5000	5001	5002	5003	5004	5005	5006	5007
Corporation Tax		-56,310	-49,760	-40,722	-27,430	-7,908	20,357	61,296	120,379	205,380	327,337	501,903	751,249
Market survey costs	0	750	758	765	773	780	788	796	804	812	820	828	837
Other preliminary expenses	0	150	165	182	200	220	242	266	292	322	354	389	428
capital expenditure
Plant and other capital expenditure	0	42,000	42,000	42,000	42,000	42,000	42,000	42,000	42,000	42,000	42,000	42,000	42,000
financing repayments
Loan repayments			6,000	6,000	6,000	6,000	6,000	6,000	6,000	6,000	6,000	6,000	6,000
TOTAL CASH OUTFLOWS	0	159,990	187,608	216,216	254,932	310,497	381,634	478,301	609,821	788,983	1,033,341	1,367,019	1,823,201
Cash flow summary
NET CASHFLOW FOR PERIOD	166,000	31,010	44,392	41,184	68,028	151,247	180,407	280,358	424,900	630,227	902,153	1,322,273	1,912,408
OPENING CASH BALANCE	0	166,000	197,010	241,402	282,586	350,614	501,860	682,268	962,625	1,387,526	2,017,753	2,919,906	4,242,179
CLOSING CASH BALANCE	166,000	197,010	241,402	282,586	350,614	501,860	682,268	962,625	1,387,526	2,017,753	2,919,906	4,242,179	6,154,587

(3) DEPRECIATION SCHEDULE
Month	0	1	2	3	4	5	6	7	8	9	10	11	12
Fixed Assets
Furniture	200000	180,000	160,000	140,000	120,000	100,000	80,000	60,000	40,000	20,000	0	-20,000	-40,000
Vehicles	30000	24,000	19,200	15,360	12,288	9,830	7,864	6,291	5,033	4,027	3,221	2,577	2,062
Plant and Machinery	42000	33,600	26,880	21,504	17,203	13,763	11,010	8,808	7,046	5,637	4,510	3,608	2,886
Total book values (i.e. net fixed assets)	0	237,600	206,080	176,864	149,491	123,593	98,874	75,099	52,080	29,664	7,731	-13,815	-35,052



Monthly Depreciation
Furniture-10% straight line		20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000	20,000
Vehicles - 20% reducing balance		6,000	4,800	3,840	3,072	2,458	1,966	1,573	1,258	1,007	805	644	515
Plant & machinery-20% reducing balance		8,400	6,720	5,376	4,301	3,441	2,753	2,202	1,762	1,409	1,127	902	722
Total monthly depreciation		34,400	31,520	29,216	27,373	25,898	24,719	23,775	23,020	22,416	21,933	21,546	21,237

(4) PROFIT AND LOSS FORECAST
	Preop
Month	0	1	2	3	4	5	6	7	8	9	10	11	12

Revenue	0	90,000	126,000	176,400	246,960	345,744	484,042	677,658	948,722	1,328,210	1,859,494	2,603,292	3,644,609

Cost of sales	0	50,000	65,000	84,500	109,850	142,805	185,647	241,340	313,743	407,865	530,225	689,292	896,080

Gross profit	0	40,000	61,000	91,900	137,110	202,939	298,395	436,318	634,979	920,345	1,329,269	1,913,999	2,748,528

Gross Margin		221,390	242,106	271,417	310,962	364,196	436,542	534,633	667,837	848,990	1,095,708	1,432,186	1,891,695
Expenses/overheads
Premises (rent, rates)		15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000	15,000
Salaries		100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000
General expenses		300	300	300	300	0	0	0	0	0	0	0	0
Executive Fees		100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000
Payroll Tax		1,200	1,260	1,323	1,389	1,459	1,532	1,608	1,689	1,773	1,862	1,955	2,052
Utilities		1,600	1,680	1,764	1,852	1,945	2,042	2,144	2,251	2,364	2,482	2,606	2,737
Sales and Marketing		2,500	3,000	3,600	4,320	5,184	6,221	7,465	8,958	10,750	12,899	15,479	18,575
Postage & Telephone		350	357	364	371	379	386	394	402	410	418	427	435
Repairs and Maintenance		100	103	106	109	113	116	119	123	127	130	134	138
Website Development Expenses		5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000
Preliminary expenses		150	165	182	200	220	242	266	292	322	354	389	428
Lease Payments		1,500	1,545	1,591	1,639	1,688	1,739	1,791	1,845	1,900	1,957	2,016	2,076
Total expenses/overheads		227,700	226,865	227,639	228,542	229,298	230,538	231,997	233,715	235,745	238,146	240,990	244,366
Profit before tax		-187,700	-165,865	-135,739	-91,432	-26,359	67,857	204,321	401,264	684,600	1,091,124	1,673,009	2,504,163
Tax @ 30%		-56,310	-49,760	-40,722	-27,430	-7,908	20,357	61,296	120,379	205,380	327,337	501,903	751,249
Profit after tax		-131,390	-116,106	-95,017	-64,002	-18,452	47,500	143,025	280,885	479,220	763,787	1,171,106	1,752,914
Transfer to reserves		-187,700	-165,865	-135,739	-91,432	-26,359	67,857	204,321	401,264	684,600	1,091,124	1,673,009	2,504,163

Balance Sheet
Assets	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Month 10	Month 11	Month 12
Current Assets
Cash	$106,050	$137,050	$124,650	$110,900	$116,650	$116,651	$116,652	$116,653	$116,654	$116,655	$116,656	$116,657
Accounts receivable	$90,000	$126,000	$176,400	$246,960	$345,744	$484,042	$677,658	$948,722	$1,328,210	$1,859,494	$2,603,292	$3,644,609
Total current assets	$196,050	$263,050	$301,050	$357,860	$462,394	$600,693	$794,310	$1,065,375	$1,444,864	$1,976,149	$2,719,948	$3,761,266
Fixed (Long-Term) Assets
Vehicles	$30,000	$160,000	$140,000	$120,000	$100,000	$80,000	$60,000	$40,000	$20,000	$0	-$20,000	-$40,000
Furniture	$200,000	$19,200	$15,360	$12,288	$9,830	$7,864	$6,291	$5,033	$4,027	$3,221	$2,577	$2,062
Equipment	$42,000	$26,880	$21,504	$17,203	$13,763	$11,010	$8,808	$7,046	$5,637	$4,510	$3,608	$2,886
(Less accumulated depreciation)	$34,400	$31,520	$29,216	$27,373	$25,898	$24,719	$23,775	$23,020	$22,416	$21,933	$21,546	$21,237
Intangible assets	$50,700
Total fixed assets	$288,300	$174,560	$147,648	$122,118	$97,695	$74,156	$51,325	$29,060	$7,248	-$14,202	-$35,361	-$56,289
Total Assets	$484,350	$437,610	$448,698	$479,978	$560,089	$674,848	$845,635	$1,094,434	$1,452,112	$1,961,947	$2,684,586	$3,704,977

Liabilities and Owner's Equity
Current Liabilities
Accounts payable	$24,000	$25,000	$27,000	$25,000	$27,000	$27,001	$27,002	$27,003	$27,004	$27,005	$27,006	$27,007
Accrued Rent	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000	$15,000
Bank Charges Payable	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000	$3,000
Short-term loans	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000	$10,000
Income taxes payable	-$56,310	-$49,760	-$40,722	-$27,430	-$7,908	$20,357	$61,296	$120,379	$205,380	$327,337	$501,903	$751,249
Accrued salaries and wages	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000	$100,000
General Expenses	$300	$300	$300	$300	$0	$0	$0	$0	$0	$0	$0	$0
Lease Payment	$1,500	$1,545	$1,591	$1,639	$1,688	$1,739	$1,791	$1,845	$1,900	$1,957	$2,016	$2,076
Current portion of long-term debt	$150,000	$140,000	$130,000	$140,000	$130,000	$130,001	$130,002	$130,003	$130,004	$130,005	$130,006	$130,007
Total current liabilities	$247,490	$245,086	$246,170	$267,510	$278,780	$307,098	$348,091	$407,230	$492,288	$614,304	$788,931	$1,038,339
Long-Term Liabilities
Long-term debt	$66,000	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$60,007
Less: Loan Repayment		$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000
Deferred income tax	$1,000	$0	$176,290	$109,982	$84,946	$84,947	$84,948	$84,949	$84,950	$84,951	$84,952	$84,953
Total long-term liabilities	$67,000	-$6,000	$170,290	$103,982	$78,946	$78,947	$78,948	$78,949	$78,950	$78,951	$78,952	$138,960
Owner's Equity
Owner's investment	$35,000	$40,000	$15,000	$10,000	$50,000	$12,000	$15,000	$20,000	$25,000	$10,000	$20,000	$25,000
Net Profits	-$131,390	-$116,106	-$95,017	-$64,002	-$18,452	$47,500	$143,025	$280,885	$479,220	$763,787	$1,171,106	$1,752,914
Reserve and Surplus	-$187,700	-$165,865	-$135,739	-$91,432	-$26,359	$67,857	$204,321	$401,264	$684,600	$1,091,124	$1,673,009	$2,504,163
Total owner's equity	-$284,090	-$241,971	-$215,756	-$145,434	$5,189	$127,357	$362,346	$702,148	$1,188,820	$1,864,910	$2,864,115	$4,282,077
Total Liabilities and Owner's Equity	$30,400	-$2,885	$200,704	$226,058	$362,915	$513,401	$789,386	$1,188,327	$1,760,058	$2,558,165	$3,731,998	$5,459,376

Timeframe Consideration

Activity Sequence	Week 1	Week 2	Week 3 &4	Week 5 & 6
Ideation	ü
Designing the app		ü
Automating the ordering process		ü	ü
Tracking of wastage/inconsistencies and streamlining the ordering process			ü
Monitoring the review				ü

Competitive advantage gained from the new information system

The innovation brought in the new system will be bring about the various consideration for the competitive advantage by giving restaurant new ways to outperform their rivals. The various types of the changes in as per the new system will considerably reduce the ordering time in compare to the restaurants which are still following the manual ordering system (Asif et al. 2015).

Possible effects for Crinitt Venice

The identified effects for Crinitt Venice is depicted with the reduced ordering time along with enhanced tracking of wastage/inconsistencies and streamlining the ordering process. The new app will be conducive in availing various initiatives such as pre-ordering and live tracking of the order. These changes will be conducive for both the strategic objectives and competitive advantages (Oleynik, Nikolenko and Yuzefova 2015).

Conclusion

The main findings of the report have shown that in the initial five months the business will earn loss. However, it will start earning profit from the 6^th month and will be able to maintain a linear growth throughout the year. In addition to this the innovation brought in the new system will be bring about the various consideration for the competitive advantage by giving restaurant new ways to outperform their rivals. The various types of the changes in as per the new system will considerably reduce the ordering time in compare to the restaurants which are still following the manual ordering system.

References and Bibliography

Asif, M., Sabeel, M., & Mujeeb-ur-Rahman, K. Z. (2015, November). Waiter robot–solution to restaurant automation. In Proceedings of the 1st student multi disciplinary research conference (MDSRC). University of Wah, Pakistan.

Chen, X.P., Yao, X. and Kotha, S., 2009. Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists' funding decisions. Academy of Management journal, 52(1), pp.199-214.

Georgievski, I., & Bouman, T. (2016). On the relationship between automation and occupants in smart buildings. environment, 2, 3.

Honig, B. and Karlsson, T., 2004. Institutional forces and the written business plan. Journal of Management, 30(1), pp.29-48.

Ivanov, S. H., Webster, C., & Berezina, K. (2017). Adoption of robots and service automation by tourism and hospitality companies.

Karlsson, T. and Honig, B., 2009. Judging a business by its cover: An institutional perspective on new ventures and the business plan. Journal of Business Venturing, 24(1), pp.27-45.

Kumari, S., Sada, S., Singh, V., & Karthik, B. (2016). Data Optimization and Transmission in Restaurant Using Virtual Reality.

Mason, C. and Stark, M., 2004. What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels. International small business journal, 22(3), pp.227-248.

Oleynik, P. P., Nikolenko, O. I., & Yuzefova, S. Y. (2015). Information System for Fast Food Restaurants. Engineering and Technology, 2(4), 186-191.

Timmons, J.A., Spinelli, S. and Tan, Y., 1994. New venture creation: Entrepreneurship for the 21st century (Vol. 4). Burr Ridge, IL: Irwin.

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