Project Work Flow Arla Foods Page 1

Project Management - Work Flow

Once a Project is assigned by Supply Chain PMO( Program Manager) office to a Project
Manager (PM), then the PM needs to develop a project plan- highlighting the resources
required to execute the project.

PM Generates a Project Charter assigning Sponsor, Stakeholders, Support functions and
holding a stage gate stake holder meeting to kick off the project

PM shall reference pertinent Project details such as Floor Plan, PFDs , Business Case to verify
project needs for scope development purposes

Review and confirm the budget and project number from the Program Manager in addition
review the resources plan and highlight any risks in completing the project. Perform a
stage gate to review any risks and safety concerns. Document and follow through the risks
and safety concerns through the life cycle of the project

Develop the Scope using the User Requirement Specification (URS) for Capex exceeding
$50,000. Alternatively verify the purchase using a vendor PO system that details the scope
of supply. Sign off must include Sponsor, stakeholders as required prior to purchase.

Verify Scope/Schedule/ Budgeted amount perform stakeholder engagement and obtain
buy in from stakeholders

Update Action Plans accordingly by conducting regular meetings especially at specific stage
gates which are (Contract award /Planning/Scope development , Project Execution, Project
Close out)

Contracts - Are required for Capex exceeding $100,000 ( Arla Agreement for the Purchase
of Machinery )

Request at least 3 quotes from different Vendors and perform a technical analysis against
the scope document. If single source ensure a detailed review against the scope document
is conducted. Address all exceptions and ensure a risk assessment is conducted

Evaluate Quotes against the Scope with Stakeholders.

Place the order based on technical evaluation and reviewing with Sponsor and or
Stakeholders and inform the Program Manager for verification of Lead times and Invoicing


Project Work Flow Arla Foods Page 2

Execute and Close out Project accordingly. File Documents Electronically in the appropriate
project Folder