Project Coffee Shop 1

The Coffee Shop Project

<<Name>>

MGMT404 Project Management

DeVry University Online

 Table of Contents

Introduction.................................................................................................................................................3
Scope statement..........................................................................................................................................3
Work breakdown structure.........................................................................................................................5
Network diagram.........................................................................................................................................6
Risk Management plan................................................................................................................................8
Resource Management plan........................................................................................................................9
Communication Management Plan...........................................................................................................12
Introduction - A coffee shop has always been more than a place to have a

beverage. It is a place to socialize, ideate, have fun and meet new people.

As Starbucks puts it, it’s the third place, a home away from home or office.

Also, due to the competitive and busy lifestyles that people lead today, a

coffee house near their work or home has become a major point of

relaxation. This report details out a project plan for opening up a coffee

shop, bringing together the various things that must be considered and

activities that should be performed to successfully open the coffee shop.

Various elements of the project such as project scope, work breakdown

structure, resource management plan, and communication plan and risk

management are addressed, thus ensuring that the project is effectively

thought out and planned in a structured and very detailed manner.

Scope statement – The scope statement of the project is discussed in this

section, essentially all the activities that are required to make the project

a success

Project objective – To start a niche and specialty themed coffee

shop within three months at a cost not to exceed $100,000

Deliverables –

a. A coffee shop with a seating capacity of 30 people and with an

area of 1000sft
 b. All electrical and air-conditioning work completed. This includes

having power backup of 60 minutes.

c. Equipment includes coffee makers, fridge, freezer, mixers,

jukebox
d. Furniture includes chairs and tables for 30 people, a counter

with a cabinet and shelves to store inventory

e. Glow Signboard measuring 2ft x 6ft outside the shop
f. Menu card, menu board, posters for the coffee shop

Milestones

a. Lease agreement signed and deposit paid for property –

October 1st
b. Inspection of electrical wiring and air conditioning completed –

October 15th
c. Equipment purchased and tested – November 15th
d. Interior and exterior painting completed – November 15th
e. Furniture, Shelves and Counter/Cabinets installed – December

10th
f. Sign board installed and tested – December 24th
g. Menu card, menu board, posters finalized and sent for printing –

November 30th
h. Final inspection one week before opening – December 24th

Technical requirements

a. The coffee shop must meet the local regulations for

commercial establishments, fire safety regulations

b. All electrical equipment and air conditioning used should pass

LEED 25 certification
c. Cables used for wiring should have a thickness of greater than

25cm
d. Painting used should be of premier quality, as certified by its

rating
 e. Large size freezer with a capacity of more than 300 liters
f. Shelves should have a capacity of being able to store more than

50 large boxes
g. Glow sign should be made out of high quality plastic,, with a

thickness of more than 0.5 inches

Limits and exclusions

a. Work would be carried out as per blueprint provided by the

customer
b. Work timings at site limited from 6.00 AM to 6.00 PM
c. Buying inventory such as coffee, sugar and disposables are not

in scope
d. Contractor reserves the right to subcontract work, but would be

responsible for the work to be delivered

e. Customer is responsible for providing the designs and artwork

for the menu and posters

f. Marketing and advertising are not part of the project and would

be done separately
g. Budget does not include deposits, rents and employee

salaries and other costs which would be part of coffee shop

operations

Reviews with customer

a. Food industry consultant

b. Coffee shop owner

Work breakdown structure – The work breakdown structure for the

coffee shop project, which is a breakdown of the different phases of the

project into constituent activities and tasks at a granular level is shown in

the below image. As can be seen the project is broken down into 6 major
phases and sub tasks, which would be done in parallel to successfully

achieve project goals.

Gantt chart Entry Table

Network diagram – Given that the project is on a very tight schedule of

being completed within a very aggressive schedule, it is very critical that

we are able to effectively identify the activities that are on the critical path

and manage them well so that they are not delayed and can be completed

within time. The network diagrams of the project with the activities on the

critical path are shown below; the activities that are in red are the

activities that are on the critical path. The network diagram for the coffee

shop project is shown below that gives a different view of the project

activities and schedule that can be used to see what are the tasks that are

happening in parallel, the amount of float that is available should it be

necessary in case there are delays.

Network Diagram
Risk Management plan – Another key area that would need focus for

effectively and successfully completing the project would be ensuing that

there is a structured approach to identifying the various risks that can come

on to the project and then following best practices to ensure that proper

responses and contingencies for the various risks are prepared. For the

coffee shop project the risk evaluation matrix that is used for identifying the

various risks that can impact the project, the degree of impact on the three

constraints, the probability of the risk occurring are performed to come up

with a weighted risk score that helps in effectively ensuring that major risks

are identified and proper responses to these risks made.

 Risk Response Matrix
Person

Respon Responsibl

Risk Event se Contingency Plan Trigger e

Supply

delayed by

Delays in supply of Eliminat Redo schedule, more than one Project

material e eliminating all slack week manager

Lease agreement Have three backup Agreement

signing being locations ready as not signed by Project

delayed or denied Mitigate alternatives October 15th manager

Licenses and other Engage

permissions not expert/consultant Licenses not

getting approved who will be able to approved by Project

in time Share advise and expedite October 10th manager

Include in terms

while buying that

Fridge and coffee delivery delays do

maker being on not happen and get Time of Project

long lead time Transfer confirmation purchase manager

Delays in painting Include condition in While contract

due to contractor agreement for timely is being Interior

delays Transfer completion prepared designer

Materials and

paints used not of Inspect material for Material Painting

high quality Mitigate quality and grade delivery date contractor

 Intimation

Food industry from

consultant not Organize for another consultant Project

being Accept expert or consultant post contact manager

available
Inspect early after

Cabling and lease is signed, so Lease

wiring installation that appropriate agreement Interior

installation issues Mitigate action can be taken signed designer

have long term fixed

priced contracts and

Increase in prices also have some

of inventory and extra buffer in Price list of Project

logistics Accept budget for inventory manager

price increase

Resource Management plan – Given that coming up with the coffee shop

would incur a lot of effort, time and investment, having the right people for

the project and managing the project team in an effective and efficient

manner would be very important. The project team for this project is given

below would be there for the duration of the project, and assigned various

tasks that would need to be done. There would be additional people

engaged if required based on any specific requirement that may be there.

S Name Role E-Mail Telephone

No Address
1 Your Name Project Manager,

Owner
2 Name 1 Interior Designer
3 Name 2 Painting Contractor
4 Name 3 Shop Manager
5 Name 4 Staff Member
6 Name 6 Investor

Resource Assignments – The various resources who are engaged to work

on the project are shown below, and assigned to various tasks that show

their project responsibilities which would be very useful to track the project

effectively and manage the resources in a efficient manner. This would also

help to see what resources are over allocated so that they can be addressed

to ensure that project schedule and cost are not impacted. The image below

show the resources from the above table assigned to the various tasks

followed by the resource assignments as per project schedule which shows

the various dates and the duration for which each of the resources would be

working on the project.

Resource Assignments
 Resource Assignments with Schedule

Communication Management Plan - The communication plan is a very

key component of successful project execution which would help the project

team to effectively work together, be updated and resolve issues in a value

creating manner, and would be an essential component of successfully

completing the project. The attached plan shows the different types of
communications, the form of communication, people who are involved with

contact information, the frequency of communication and the person who is

responsible for ensuring completion of deliverable. It essentially has all the

things that are necessary for keeping all relevant stakeholders updated,

bringing in clarity and setting right expectations and ensuring that any

obstacles in way of successful project completion are removed. The

communication plan for the project is presented below

Communication Plan
What Who/Targ Purpose When/Fr Type/Met Contacts
et equency hod(s)
Project All Communicate Once at Meeting PM@Proje
Kick Off stakehold plans and project ct.Com
Meetin ers stakeholder start Sposor@Pr
g roles/responsibil oject.Com
ities Team@Proj
Set expectations ect.Com

Project All Update Weekly E-Mail PM@Proje

Status stakehold stakeholders on ct.Com
Reports ers and progress of the Team@Proj
Project project. ect.Com
Sponsor
 What Who/Targ Purpose When/Fr Type/Met Contacts
et equency hod(s)
Team Entire To review Schedule Meeting PM@Proje
Meetin Project detailed plans d as per ct.Com
gs Team (tasks, project Team@Proj
Individual assignments, requirem ect.Com
meetings and action ent
for sub- items). Weekly
teams for the
duration
of phase
completio
n
Project Project Update Sponsor Monthly Meeting PM@Proje
Sponso Sponsor on status and ct.Com
r and discuss critical Sposor@Pr
Meetin Project issues. Seek oject.Com
g Manager approval for
changes to
Project Plan and
any budgetary
approvals.
Quality Project To inspect Monthly Meeting at PM@Proje
Audit Manager, project progress Project ct.Com
Food and take Site Consultant
Industry recommendatio @Project.C
Consultan ns for om
t improvement
Site Inspection
 What Who/Targ Purpose When/Fr Type/Met Contacts
et equency hod(s)
Open All To resolve any Ad-hoc as Meeting PM@Proje
issues stakehold open issues that and when ct.Com
meetin ers need resolution needed Team@Proj
g ect.Com

Project All Final project Once at Meeting PM@Proje

Closure stakehold signoff and Go end of ct.Com
Meetin ers Live project Sposor@Pr
g oject.Com
Team@Proj
ect.Com