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In this assignment preparing a project proposal to open a café named Coffee Klatsch in the near future.

Background

This project is based on opening of a café “Coffee Klatsch” in the near future that has been decided by two friends Tanya and Kylie. Presently, Tanya is a student at LSBU enrolled in Accounting and Finance course and also she is experienced in administrative and customer management due to her work as Hotel Controller.  Kylie has been working as Head Barista at BBC Club situated in Portland place for several years. Hence, Kylie will be responsible for managing daily operations at the café in context to production as well as customer service. Tanya shall be responsible for managing the administrative as well as accounting aspects in context to the business. The café will be setup in a central location within close proximity of office buildings such that there is adequate availability of public transport. The vision of the café will be to offer the customers with high quality coffee than coffee retailer chains like Costa or Starbucks.

The focus of the café is to provide delivery of high quality coffee along with food items in a timely as well as friendly manner. It has been decided that three people that is Kylie along with two other employees will be working in the café. The setup of the café will be unlike the other coffee chains that is there will be two counters. One counter will be dedicated for taking orders allocated to one member and the other counter will be for service with two employees. The decision has been made that the price for coffee will be same as that offered by other coffee chains but with high quality. Kylie will be involved with quality control as it is essential for the business. A loan application has been put forwarded tManagementents

The major requirement of this project is to setup a café in central location of London such that it is close to offices as well as there is availability of public transport. The loan application for this project has been forwarded and the location has not been acquired. Hence, another requirement of this project is funding and acquisition of a place in areas such as Borough Rd or Finsbury Circus. Further, the focus of Tanya and Kylie is to start with one outlet and expand in future to open a chain of cafes at posh locations. Despite of loan application by Tanya and Kylie, they have decided to explore more opportunities for acquiring funding and improving their business plan.

History

The plan for execution could be implemented within the business plan so that the investors can get an insight into overall project. The budgeting and duration required for the project should be presented in a well-organized manner. The costs for material and resources have also to be elaborated along with profitability that will be gained from the project. This will eventually attract more potential investors as they will have a share over the same profitability gained from the project.

Aims

The aim of this project is to open a café in the central location of London to provide the customers with high quality coffee along with food items in a timely and friendly manner. The focus of this project is on planning the execution along with analysis of risks and budgeting so that the café can be setup successfully.

From the analysis of requirements, the objectives of the project are illustrated as below:

  • To setup a café in the posh area of central location adjacent to offices and proper availability of public transport.
  • To provide high quality coffee as well as food items at the same price like that of renowned coffee chains such as Costa or Starbucks.
  • To start with one outlet and develop a strong brand image for expansion in future.
  • To focus on controlling of quality, providing quick service along with maintaining consistency.
  • To provide a friendly environment to the customers while they have their morning or evening meal.

Deliverables

The deliverables that will be offered by the project in context to the provided case study are illustrated as below:

  • An environment friendly atmosphere for the customers so that they often visit the café to spend their leisure time or just to enjoy their meal.
  • Interior design of the café and menu for breakfast or lunch with different varieties of black and normal coffee.
  • Materials for advertisement of the coffee shop on a monthly basis in various local publications.

Often, project deliverables consist of rational material that is collected in a concrete method. Sometimes, however, they are consumer goods. For example, Tanya and Kylie might hire an interior design firm to design and produce custom chairs for its café shop.

In deliverables process it can be identify Internal and External Stakeholders. The customers are called an external stakeholder for the reason that they receive the deliverables. In other cases, the person receiving the deliverables is a member employee, also called an internal stakeholder. (The Management of Change, handout 2018).

When you give project deliverables to an external stakeholder, it is usually because you have completed the project and are delivering the items you have been contracted to produce. When you give project deliverables to an internal stakeholder, it is usually because your employee needs the products to complete her work.

Planning is an essential factor for successful completion of a project within estimated time and budget. The plan that has been developed for accomplishment of the project to setup a café in central location of London is illustrated as below:

Task Name

Duration

Start

Finish

Predecessors

Resource Names

Coffee Klatsch Café Opening Project

97 days

Mon 05-02-18

Tue 19-06-18

   Feasibility Analysis

22 days

Mon 05-02-18

Tue 06-03-18

      Project Startup meeting

2 days

Mon 05-02-18

Tue 06-02-18

      Stakeholder Analysis

1 day

Wed 07-02-18

Wed 07-02-18

2

      Visiting the Site

3 days

Thu 08-02-18

Mon 12-02-18

2,3

Kylie, Project Manager, Tanya

      Reviewing the Site

4 days

Thu 01-03-18

Tue 06-03-18

4

Kylie, Project Manager, Project Sponsor, Tanya

   Development of Project Charter

21 days

Fri 09-02-18

Fri 09-03-18

      Outlining the project scope and Objectives

2 days

Fri 09-02-18

Mon 12-02-18

2

Project Manager, Project Executive

      Evaluation of the benefits

3 days

Tue 13-02-18

Thu 15-02-18

7,4

Project Coordinator, Project Manager

      Analysis of risks

3 days

Fri 16-02-18

Tue 20-02-18

8,7

Project Executive, Project Manager

      Determining measures for risk management

2 days

Wed 21-02-18

Thu 22-02-18

9

Project Coordinator, Project Manager

      Identifying the constraints

2 days

Fri 23-02-18

Mon 26-02-18

7,10

Project Manager

      Estimating the cost and project budget

2 days

Tue 27-02-18

Wed 28-02-18

11,7,8

Kylie, Project Sponsor, Tanya, Financial Analyst

      Progress reporting

4 days

Thu 01-03-18

Tue 06-03-18

12

Project Coordinator, Project Executive

      Arrange Stakeholder meeting

2 days

Wed 07-03-18

Thu 08-03-18

13

Project Coordinator, Project Executive

      Approval of project charter

1 day

Fri 09-03-18

Fri 09-03-18

14

Project Manager, Project Sponsor

   Development phase

39 days

Mon 12-03-18

Thu 03-05-18

      Designing the process

5 days

Mon 12-03-18

Fri 16-03-18

15,9,14

Kylie, Project Manager, Tanya

      Designing of menu

4 days

Mon 19-03-18

Thu 22-03-18

17

Kylie, Project Executive, Tanya

      Designing the structure

7 days

Fri 23-03-18

Mon 02-04-18

18

Kylie, Project Executive, Tanya

      Development of risk management plan

3 days

Tue 03-04-18

Thu 05-04-18

19

Project Executive, Project Manager

      Development of communication plan

2 days

Fri 06-04-18

Mon 09-04-18

20,19

Project Coordinator, Project Manager

      Procurement of equipment and materials

10 days

Tue 10-04-18

Mon 23-04-18

21,19

Decoration equipment[1], Decoration materials[1], Kylie, Suppliers, Tanya

      Designing of materials

8 days

Tue 24-04-18

Thu 03-05-18

22

Decoration materials[1], Furniture[1], Kylie, Tanya

   Implementation phase

33 days

Fri 04-05-18

Tue 19-06-18

      Setup of furniture and equipment

4 days

Fri 04-05-18

Wed 09-05-18

23,22

Kylie, Project Coordinator, Tanya

      Recruitment of staffs

12 days

Thu 10-05-18

Fri 25-05-18

25,17

Kylie, Project Executive, Tanya

      Designing the interior

14 days

Mon 28-05-18

Thu 14-06-18

26,23

Decoration equipment[1], Decoration materials[1], Project Executive

      Allocation of staffs in workplaces

3 days

Fri 15-06-18

Tue 19-06-18

27,26

Kylie, Project Coordinator, Tanya

      Printing of materials

6 days

Mon 28-05-18

Mon 04-06-18

23

Decoration materials[1], Kylie, Tanya

   Project closeout

5 days

Tue 05-06-18

Mon 11-06-18

      Opening of the café

1 day

Tue 05-06-18

Tue 05-06-18

29

Kylie, Project Manager, Project Sponsor, Tanya

      Lessons Learnt and project report documentation

2 days

Wed 06-06-18

Thu 07-06-18

31

Kylie, Project Manager, Tanya

      Feedback from stakeholders

1 day

Fri 08-06-18

Fri 08-06-18

32

Kylie, Project Manager, Tanya

      Final sign-off

1 day

Mon 11-06-18

Mon 11-06-18

33

Kylie, Project Sponsor, Tanya

Resource is an essential element that has to be allocated properly according to their skills and expertise to required activities for successful execution of a project (Leading People Resource Management, 2008). The resources in context to this project comprises of human resource as well as the required materials or information technology (IT). The resources that are required for completion of this particular project to setup the café is presented as below:

Resource Name

Type

Initials

Max. Units

Std. Rate

Project Manager

Work

P

100%

£35.00/hr

Kylie

Work

K

100%

£15.00/hr

Tanya

Work

T

100%

£15.00/hr

Project Sponsor

Work

P

100%

£25.00/hr

Financial Analyst

Work

F

100%

£30.00/hr

Project Executive

Work

P

100%

£20.00/hr

Project Coordinator

Work

P

100%

£20.00/hr

Suppliers

Work

S

100%

£15.00/hr

Furniture

Material

F

£15,000.00

Decoration equipment

Material

D

£2,690.00

Decoration materials

Material

D

£1,250.00

Management Requirements

Managing Project cost involves implicates to set up the total cost of the project, securing a budget and then to be sure that it is carried within that agreed budget. It relies on other planning process like scope management and resources allocation being done successfully (Managing the Project Budget, not dated).

 The required budget for the entire project has been calculated as £67,260.00 which comprises of both labor costs and materials cost. The total budget has been calculated by totaling of the costs associated with the different activities required to accomplish the project. The required budget for setup of the café is illustrated as below:

Task Name

Cost

Coffee Klatsch Café Opening Project

£67,260.00

   Feasibility Analysis

£4,440.00

      Project Startup meeting

£0.00

      Stakeholder Analysis

£0.00

      Visiting the Site

£1,560.00

      Reviewing the Site

£2,880.00

   Development of Project Charter

£8,720.00

      Outlining the project scope and Objectives

£880.00

      Evaluation of the benefits

£1,320.00

      Analysis of risks

£1,320.00

      Determining measures for risk management

£880.00

      Identifying the constraints

£560.00

      Estimating the cost and project budget

£1,360.00

      Progress reporting

£1,280.00

      Arrange Stakeholder meeting

£640.00

      Approval of project charter

£480.00

   Development phase

£34,910.00

      Designing the process

£2,600.00

      Designing of menu

£1,600.00

      Designing the structure

£2,800.00

      Development of risk management plan

£1,320.00

      Development of communication plan

£880.00

      Procurement of equipment and materials

£7,540.00

      Designing of materials

£18,170.00

   Implementation phase

£16,470.00

      Setup of furniture and equipment

£1,600.00

      Recruitment of staffs

£4,800.00

      Designing the interior

£6,180.00

      Allocation of staffs in workplaces

£1,200.00

      Printing of materials

£2,690.00

   Project closeout

£2,720.00

      Opening of the café

£720.00

      Lessons Learnt and project report documentation

£1,040.00

      Feedback from stakeholders

£520.00

      Final sign-off

£440.00

The process that will be followed for reporting progress of the project is illustrated as below:

Activity

Frequency

Communication Method

Ownership

Responsible

Allocation of duties to resources

Weekly

Team meetings and Email

Project Coordinator

Project Manager

Completion of activities

Monthly

Formal documentation and conference calls or email

Tanya and Kylie

Project Manager

Issues or conflicts and progress

Daily

Team meetings

Tanya and Kylie

Project Manager

Budgetary requirements of the project

Weekly

Meetings and face to face communication

Project Sponsor

Financial Analyst

Evaluation of resources associated with the project

Monthly

Email and formal documentation

Project Coordinator

Project Manager

Risk ID

Risk Identification

Evaluation of Risk

Risk Analysis

Mitigation actions

Likelihood

Impact

R01

Inadequate budget of funding for the project

Adequate finding may not be available to execute the project.

Likely

Major

Sufficient funds should be arranged by the business owners prior to planning or opening of the café. Proper budgeting is an element to ensure success of a project.

R02

Improper staffing or lack of resources

The running of the café may require longer work durations for the available staffs. So they may be exhausted and it will eventually affect the business.

Likely

Minor

There must allocation of additional staffs during busier times which may demand for more workload.

R03

Selection of location

The opening of a café in the suburbs or places with fewer crowds will hamper the business.

Unlikely

Moderate

The selection of location has to be done by analyzing the possible opportunities and facilities in the area (Gido, Clements and Clements 2014). The café should be opened in a close proximity to offices, school or college and such that there is availability of public transport.

R04

Improper scheduling

There may be a possibility that an activity is not completed in estimated time or duration (Martinelli and Milosevic 2016). This will affect severely and delay the entire project.

Likely

Minor

The schedule for the project have to be planned and developed by considering the possible constraints that may occur during execution.

R05

Lack of adherence to regulatory requirements

The café has not been setup by following the local regulations in context to commercial developments. There is lack of regulations for safety and security in the café.

Unlikely

Moderate

Proper local regulations have to be taken into consideration (Nicholas and Steyn 2017). The café have to be developed with proper safety and security regulations.

According to the competitive advantage model of Porter (1985), there are two ways of gaining competitive advantage over the competitors that is cost or quality. The cost in context to this particular organization is price of the coffee that will be offered by the café. The vision of the café is to provide high quality coffee as well as food items at the same price as that of other coffee chains. Hence, the organization has chosen quality as their main factor for maintaining their competitive advantage and developing a brand image of the café.

The PESTLE analysis that has been conducted on this particular project to setup the café has been categorized as below:

Political factors

  • Increase in business participation
  • Employment laws
  • Tax policies

Economic factors

  • Taxation
  • Sudden inflation on price of coffee.
  • Wealth of customers
  • Changes in fee by competitors

Socio/Cultural factors

  • Lack of education for required skills and expertise
  • Trends in lifestyle
  • Brand image

Technological factors

  • Advertisement of the café with the help of social media.

Legal factors

  • Follow up of correct regulations for employment
  • Maintain the safety and security regulations

Environmental factors

  • Maintain clean surrounding and adherence to anti-litter laws
  • Proper measures for waste management

To focus on controlling of quality to provide fast service, along with maintaining consistency.

Professional bureaucracy has the operating core as its key part, uses standardization of skills as its main coordinating mechanism, and employs vertical and horizontal decentralization. The organization is relatively formalized but decentralized to provide autonomy to professionals. Highly trained professionals provide non routine services to clients. Top management is small; there are few middle managers; and the structure is usually undersized. Nevertheless, the support staff is normally huge to provide clerical and maintenance support for the professional operating core. The goals of professional bureaucracies are to innovate and provide high-quality services (Mintzberg, 1979).

Hence, she has to make use of various observational techniques for fulfilling the quality requirements as it is central to the business. There is also a need to implement strong professional culture which will in turn lead to enhancements in the experience of customers (Mir and Pinnington 2014). Kylie should analyze and evaluate the products or services that will be offered by the café to check that those meet the requirements of customers.

Solution

According to Deming, W.E (1986), to achieve the best quality will be needed to create constancy of purpose toward improvement of product and serviced. Constantly improve the system of production and service.

The success criteria for this particular project on setup of café “Coffee Klatsch” is presented as below:

  • The team members associated with the project has the required skills and expertise.
  • The project is completed within the estimated time and budget.
  • The project has been completed according to the specifications and required objectives (Tooand Weaver 2014).
  • Positive feedback acquired from the customers in terms of quality and service of the café.

The proposal to setup a café illustrates that proper allocation of budget and resources is an essential element for success of the project. The proposed plan for the project shows that it will require 97 days to complete considering the beginning is on 05 February 2018. The costs associated with resources and materials shows that a budget of £67,260.00 is required for completion of the project. The analysis has also been done that Kylie have to be aware of the tools and techniques that can be used for quality control of the business.

References

Cicmil, S., Cooke-Davies, T., Crawford, L. and Richardson, K., 2017, April. Exploring the complexity of projects: Implications of complexity theory for project management practice. Project Management Institute.

Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.

Gido, J., Clements, J. and Clements, J., 2014. Successful project management. Nelson Education.

Heldman, K., 2015. PMP project management professional exam deluxe study guide: updated for the 2015 Exam. John Wiley & Sons.

Jiang, J.J. and Klein, G., 2014. Special section: IT project management. Journal of Management Information Systems, 31(1), pp.13-16.

Kendrick, T., 2015. Identifying and managing project risk. American Management Association,.

Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons.

Charles Sturt University. (2008) version 1.0, Leading People Resource Management. Available from:https://www.csu.edu.au/__data/assets/pdf_file/0007/51946/Resource-Management.pdf [Accessed on 26th January 2018]

Lock, D., 2017. Project management. Routledge.

Lock, M.D., 2014. The essentials of project management. Ashgate Publishing, Ltd..

Management of Change, 2018, Handout Composition, Business Project Management, Jan 2018

Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Mintzberg, 1979. The Structuring of Organizations (Theory of Management Policy)

Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), pp.202-217.

Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.

Paul Newton, (not dated), Managing the Project Budget, Project Skills: Available from: https://www.free-management-ebooks.com/dldebk-pdf/fme-project-budget.pdf. [Accessed on 26th January 2018]

Porter, M.E., 1985. Technology and competitive advantage. Journal of business strategy, 5(3), pp.60-78.

Portny, S.E., 2017. Project management for dummies. John Wiley & Sons.

Snyder, C.S., 2014. A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute.

Todorovi?, M.L., Petrovi?, D.?., Mihi?, M.M., Obradovi?, V.L. and Bushuyev, S.D., 2015. Project success analysis framework: A knowledge-based approach in project management. International Journal of Project Management, 33(4), pp.772-783.

Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual framework for project governance. International Journal of Project Management, 32(8), pp.1382-1394.

Turner, R., 2016. Gower handbook of project management. Routledge.

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