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Project Proposal: The set up of the Start-up Company - Sturata Inc (SI) Background

The entrepreneur Ryan ONeal and the investor Jeff Hoffman request project management services from John Consulting Group (JCG) to set up a new company Sturata Inc, or SI. SI will operate warehouses that will use autonomous mobile vehicles that will deliver produce to the accorded platform. JCG is to set up SI and implement the business proposal. It will create the start-up company, install the warehouse and robots system and produce one control station and 50 units of vehicles per week. The set up of SI will be a project. It will consist of two phases. Phase A will include research, design and development and Phase B will be production. The system will undergo extensive testing and safety shall be assured between vehicles and people moving in and about the warehouse. There will be more than 100 suppliers of components and subsystems of robots and other technical systems of the project and will be designed in-house. Sturata Inc or SI will be located in Vermont, the United States of America. The set up project team include the clients as chief executive officer and chief technical officer. JCG is the interim chief operating officer. The team is supported by a vice president for administration chief financial officer, and liaison function officer. 100 professionals shall be recruited to carry out the required technical and engineering work. The project team must begin works as they are employed and have work be done accordingly. No company is set up to undertake the project so far and all legal and administrative work to formulate the legalities of the business is also built-in this start-up project.

Problem Statement
The owners of SI want to purchase the Japanese company Ryoichi. Ryoichi is based in Tokyo. It includes thirteen closely-knit engineers and has an impressive portfolio of contract work delivered. Ryoichi has the skills and expertise to design autonomous mobile vehicles; therefore, SI plan to buy Ryoichi as a contract company and use it as a design and development centre. The buy will be through the use of stock options and cash to finance the purchase for US$1.25 million 30/70 cash/options ratio ( Week 4 Individual Project Assignment). However, there are concerns about the buy of the Japanese company including difficulties in communications, and team members entrepreneurial spirit and tightly interweaved structure. Also, recent developments indicate executive team members spent 60 hours developing hiring plan and engaging recruiters in week one. In the second week of operations Ryoichi requested revision in the buyout offer to a 50/50 cash/options ratio. Jeff Hoffman suffered a serene heart-attack and is hospitalised. Dr. ONeal took 5 days leave to travel to Ireland to attend burial ceremonies of his grandmother. These events have almost shattered the original start-up project plan and more than half the project contingency buffer has been absorbed in just one week. The project management service provider, JCG is under a lot of pressure to keep the project on schedule. This has created the condition for no more room for error. And the executive team has requested control leadership stress therapy.

Problem Resolution
The clients Dr. Ryan ONeal and Jeff Hoffman will provide $12 million to set up Sturata Inc. The company will contract suppliers to deliver the various components and system of the mobile vehicles. The company will design the mobile vehicles in house. These men are both convinced if the company begins operating in 10 months; it will grab hold of a set of dedicated customers in the U.S. and maintain future venture funding. John Consulting Group or JCG will set up this start-up company, make the system available at customer sites in 10 months and establish a production operation to develop one control station and 50 vehicle units per week. A critical project requirement is to implement the business idea and launch the product within 10 months.

The opportunity is the clients are both experts in robotics and warehouse management and there will be recruited more than 100 professionals to do all the technical and engineering work. The company also intend to open up a production centre in China.

Project Proposal
JCG will deliver the following for the proposal to set up Sturata Inc, create the start-up company, install the system at customer sites and develop one control station and 50 units of vehicles per week. Executive summary Background Information Project Objective Problem Statement & Recommended Solutions Project Scope Statement Organisational Design Plan Interface (External & Internal) Diagram Stakeholder Conflict Resolution Activity Plan Ryoichi Purchase Assessment Report Leadership & Team members Stress Management Plan Code of Ethics for Sturata Inc. Appendices Bibliography

Project Plan Approach

The project is to establish a company to develop and operate an innovative system in warehouse order fulfilment including a group of autonomous mobile vehicles. The overall task is to create the start-up company, install the system at customer sites and operate one control station and develop 50 units of vehicles per week. However, due to SI the short-term plan to purchase a Japanese company to use for design and development and the long-term plan to open a production centre in China, the project has to take no specific organizational structure until is completed established and successfully operational.

Project Management Approach

Establish project team including core team, client team and the team of contractors Plan and conduct joint project planning sessions and generate detailed project plan Develop team development strategy and development plan Deliver the various project components by phases Establish team operating rules and agree upon team meetings Establish project scope statement, WBS, project schedule, staffing (resource) management plan, cost estimates, risk management plan, communications plan, quality plan and change management process Assign resources Incorporate the company Register the company and its trademark Establish bank accounts Establish website

Obtain insurances and make VAT and PAYE registration Prepare and implement marketing and promotion Manage Project team implement set up project plan

To ensure the establishment, delivery and operations is undertaken smoothly and without interrupting production, the supply of components will be done by various suppliers on an RFQ process. The procurement process shall include the following activities:

Conduct a Tender process to involve: o o o o Issue Request for Information of RFI Issue Request for Proposal of RFP Selection preferred tenders and notice to Suppliers Issue Suppliers contract

Conduct delivery of materials and products by: o Supplying components and subsystems

Conduct review of Suppliers including: o o components and subsystems contracts and delivery results

1.0 Organizational Design Plan The organizational design plan will be developed after detailed analysis of the project business case and feasibility study report. The questionnaire will address issues to determine the companys organizational structure based on companys goals; future organization direction; organizational alignments; work or job requirements and responsibilities; staffing levels, units and work areas; appropriate pay levels for job positions; responsibility levels and market pay practices; and professional search assignments.

2.0 Interface (External & Internal) Diagram

The interface diagram will display the various interfaces between teams and units within the company. It will also show team and units interfaces with external organizations and other regulatory bodies. It will show each stakeholder and describe the leadership skills required for each interaction at these interfaces. 3.0 Stakeholder Conflict Resolution Activity Plan The plan will identify potential issues and problems expected to evolve amongst the project key stakeholders and create concrete activities and a plan to ensure these problems and issues be resolved to avoid potential conflict and setback to the project implementation plan. .. 4.0 Ryoichi Purchase Assessment Report This will be a summary report on the buy in deal to purchase the Japanese company Ryoichi. The report considers behavioural issues with regard to Sturata Inc. buying Ryoichi and the need to put in place a structure that assimilates the integration of Ryoichi employees within the new company. 5.0 Leadership & Team members Stress Management Plan

This plan will focus on SI leadership and team member stress recovery activity plan. The plan will focus on individual team members and the team as a collective group. The plan will recommend the best ways to control leadership and team stress and suggest ways leaders can lessen stress for team members. 6.0 Code of Ethics for Sturata Inc. The Code of Ethics for Sturata Inc. will highlight the value system of the organisation based on its multicultural and cross-functional nature. The code will include general employee conduct in a multicultural environment; conflict of interest and post-work activities; how to record organizational communications; ; Suppliers, Customers and Partners relationships with customers and partners; the company view on gifts, favours, and commissions; and the companys culture and staff responsibility to society and environment.

Wong, B.T.Z. (2007) Human factors in project management: concepts, tools, and techniques for inspiring teamwork and motivation. San Francisco: Jossey-Bass. Meredith, J.R. & Mantel, Jr., S.J. (2009) Project management: a managerial approach . 7th ed. Hoboken, New Jersey: John Wiley & Sons.
Glindinning. M. (2009) Kiva robots save Zappos shoe leather, Material Handling Wholesaler [Online]. Available from: (Accessed: 22 February 2009).

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