Risk Management Plan
PAGE
1
Running head: RISK MANAGEMENT PLAN
Risk Management Plan
Students Name
Institutional Affiliation
Risk Management Plan
COFFEE SHOP PROJECT CHARTER
|
Project Name |
Yolo Coffee Shop | ||
|
Project Manager |
Michael Smith |
Prioritization |
High |
|
Owner(s) |
Yolo Dairy |
Start Date: |
20/03/2014 |
|
Scheduled Completion Date: |
20/05/2014 |
Read more about Research Paper Writing Help for Any Student. Feel free to order your paper from Essays-Services and forget about your worries.
|
Mission/ Purpose |
What is your project going to accomplish? How does this project relate to overall goals and objectives of the company? Is it part of a program or larger project? The new coffee shop will offer market for our own Yolo milk from the diary farm. The main goal of the Yolo Diary is to ensure maximum daily sales of milk. Therefore, a considerable amount of milk would be used in our coffee shop everyday hence increase in the sales. |
|
SOW |
What will this project create? What is the product of the project? At a high level, how do you plan on doing the work of the project? What are the high-level deliverables for this project? This project will create high-quality coffee products and complementary services. The product of the project is coffee. The work of the project will be organized in a way that will allow maximizing the companys profits and the level of consumers satisfaction. Major project deliverables Deliverable Description The initiation (Submitting the project charter) Meeting the project owner for submission Discussions and analysis for clarity Making necessary changes on document Signing of project contract The planning (Division of duties) Each team to receive its allocations and prices Teams to plan work as per time and budget The execution Each team to carry out their assignment Monitoring the implementations to ensure they lie within time and budget Ensure the work is satisfactory to the owner. |
|
Objectives |
What objectives, if any, of the company is this project designed to meet? Offer the best customer service in town hence increase the companys publicity; By the end of the year, the coffee shop should be able to hit 30% of the total milk sales. |
|
Business Need |
Why should we do this project? What will be gained, changed, or modified? Is there a financial or business reason to do this project? This area should contain any feasibility studies, NPV, PI, PB, or PBD used to advance the project. The coffee shop will offer market for the milk. The company aims to make 30% of its sales in this coffee shop. The preliminary idea was to start a milk supply shop. A feasibility study was done on the PI. It was discovered that consumers in this town prefer ready made coffee to milk hence the idea of a milk supply shop was further developed into a coffee shop. The coffee shop is therefore a marketing strategy for the Yolo Dairy to help increase the daily sales, increasing the companys profits to the desired percentage. The coffee shop will also act as an advertisement medium. |
|
Project Manager and Stakeholders |
Who will lead this project? Who are the major stakeholders? Position Name/ Title/ Company Email/ Phone Sponsor Yolo Dairy yolod@org.co.ke Project manager Michael Smith msmith@gmail.com Sales representative John James jjul@gmail.com |
|
Milestones |
What are the key milestones dates associated with the project? Note: Target date is 20/05/2014 Key milestone Date Project start 20/03/2014 Acquire the target space/shop 25/03/2014 Renovations and modifications 05/04/2014 Wall painting 10/04/2014 Interior designing (Gheo touch) 14/04/2014 Purchase furniture 20/04/2014 Install shelves and tables 05/05/2014 Complete layout of the shop 15/05/2014 Purchase kitchen utensils 16/05/2014 Recruit staff 18/05/2014 Sign off 19/05/2014 Official opening of shop 20/05/2014
|
|
Budget |
What is the order-of-magnitude budget for this project? Order of magnitude budget/Budget Estimate Purpose Amount Rent(6 months) $3,000 Legal fees $1,000 Renovation $5,000 Interior design $10,000 Labor $25,000 Furniture $100,000 Utensils $35,000 Contingency allowance $10,000 Business insurance (p/a) $1,000 Miscellaneous $1,000 Total estimate budget $191,000 |
|
|
|
|
User Acceptance Criteria/Quality |
What are the minimum success criteria as defined by the key stakeholders? The space that is planned to be rent is a thousand square feet with all the space free for the desired modifications and design. The space can accommodate about fifty comfortable seats. The target customers are the local ones. |
|
High-Level Project Assumptions What are the assumptions on which the project is based? The project will be completed on 19/05/2014 and start running on 20/05/2014 There will be no legal issues to deal with in the renting of the property The project will stay in the budget The coffee shop will sell only coffee Readily available market High sales will be achieved Consumers will be the local people in town Employ experienced staff High-Level Project Constraints What are the major limiting factors that affect the project? The project must end by 20/05/2014 if the anticipated yearly sales are made The furniture is to be acquired on order hence stress on time The interior designer is only available for a week as from 14th Might not get experienced staff If the license will be approved or declined Exclusions and Boundaries What are the boundaries of the project? What is to be included and what is to be excluded from the project? The scope of the project The coffee shop project involves starting of a new coffee shop in town. The Yolo Dairys vision is to make the place an effective high sale joint for the milk product as well as offering the best customer service in town. The project includes several tasks. In scope (included): Acquiring of new space/shop Renovations and shop modifications Wall painting and interior designing Purchases e.g. furniture and utensils Installation of shelves and tables Staff recruitment Out scope (excluded): Staff training Staff payments |
|
|
Major Risks |
What are the major risks affecting the project? Overrun costs Unavailability of immediate labor Changes in consumers demand Delays in furniture delivery Tougher competition than it was expected Higher costs of resources Low profitability Inadequate level of employees qualification High season vulnerability Low quality of complementary services The Project Priority Matrix is presented in Table 1. Table 1. The Project Priority Matrix
Constrain Enhance Accept Scope
X Time
X
Budget X
|
|
Thus, the scope of the project should be accepted. Time should be enhanced as the selected period of time may not be sufficient for completing all abovementioned functions. The budget should be constraints as the level of profitability may be lower than it is expected. The risk scoring template is presented in Table 2 (in relation to overrun costs). Table 2. The Risk Scoring Template Project Objective Relative or Numerical Scales Very Low - 1 Low - 2 Moderate - 3 High - 4 Very High - 5 Cost
X
Time
X
Scope
X
Quality
X
The risk management analysis of all abovementioned risks is presented in Table 3. Table 3. The Risk Management Analysis
RISK EVALUATION
Risk Probability Cost Schedule Scope Quality Risk Score
Tougher competition 30% 4 3 4 5 4,8 Lower profitability 20% 5 4 4 3 3,2 Changes in consumers' demand 30% 3 2 2 3 3,0 Unavailability of labor 20% 4 4 4 2 2,8 Higher costs of resources 30% 5 1 2 1 2,7 Inadequate level of qualification 20% 4 2 1 5 2,4 Overrun costs 10% 4 3 4 2 1,3 Delays in furniture delivery 20% 1 3 1 1 1,2 Low quality of complementary services 10% 1 1 1 4 0,7 High season vulnerability 10% 2 2 1 1 0,6 Thus, the main risks are associated with tougher competition than it was expected and lower profitability. These risk factors may significantly affect the ultimate results of the projects realization. In order to minimize these risks, risk response matrix should be developed. It is presented in Table 4. Table 4. Risk Response Matrix Risk Event Response Contingency Plan Trigger Person Responsible Tougher competition mitigate strengthen one's competitive positions through additional diversification the company's market share Yolo Diary Lower profitability share increase profits through permanent innovations rate of profit Yolo Diary Changes in consumers' demand accept additional marketing research the dynamics of sales John James Unavailability of labor eliminate reserves of immediate workforce the demand for labor Michael Smith Higher costs of resources transfer diverdification of suppliers average variable costs Michael Smith Inadequate level of qualification mitigate addiitonal trainings and courses the level of consumers' satisfaction John James Overrun costs transfer optimize cost structure average total costs Michael Smith Delays in furniture delivery eliminate insurance contracts that may eliminate these delays period of delivery Michael Smith Low quality of complementary services eliminate constantly improve the quality of all complementary services consumers' satisfaction Michael Smith High season vulnerability mitigate sales and brand promotion the dynamics of sales John James |
|
KEY STAKEHOLDERS |
||
|
Project Manager Authority Level |
Name: Yolo Diary Task: I will be in charge of the team and all other tasks in the project by making sure that all the requirements are fulfilled under proper project specifications. I am permitted to approve all the expenditures to the maximum as allocated in the budget. |
|
|
Project Core Team |
Nelly Nelsons- Time/Risk Manager Task: Sees to it that all the project contracts and documents are properly prepared, accepted and implemented from the beginning to the end of the project, in time. She maintains the time plan and budget as well as offering administrative support. Joshua Gant- Finances Manager Task: Prepares and maintains the budget. He defines the sources of funding and expenditure. Jane Porter- Quality Manager Task: He is to keep track of the proceedings of the project and makes sure that all deliverables are submitted and reviewed in time. Harry Henry- Procurement officer Task: In charge of all licensing issues. Will also contract administration services. |
|
|
Subject Matter Experts (SMEs) (include company and channel designations if applicable) |
Clarke & Sons |
|
|
APPROVALS |
||
|
Type Name |
Signature |
Date |
|
Project Manager Approval: |
|
3/16/2014 |
|
Customer/Sponsor Approval: |
Yolo Diary |
3/16/2014 |
