OPERATIONS AND PROJECT MANAGEMENT CONSULTANCY

REPORT FOR RIVERSIDE SHOPPING MALL

Prepared and Submitted
By
Executive Summary

This consultant report analyzes and evaluates the methods for carrying out various projects
and operations at Riverside Shopping Mall. Riverside Shopping Mall is a shopping and
leisure facility with a variety of retail shops from both local and national boutique offerings.
The mall is set to undergo a series of refurbishment programs, and it is expected that certain
vendors will take advantage of this chance to upgrade and enhance their own premises and
supplied services.

The product sourcing and inventory management of Caffeine coffee supply was task five of
the project and operational consultancy report. The Caffeine's Food and Beverage Shop is
currently functioning as a single store, with plans to build a second store within the Centre
to double the volume of coffee required and to assess the need for a more structured
approach to purchasing coffee. The annual coffee cost for the current coffee ban ad then
annual coffee cost for the revised scenario is calculated in the report. And suggestion has
been given whether the discount is worthwhile and further recommendation has been given
as to how caffeine should proceed.

The seventh task provided critical information on employee resource planning at the
Riverside Customer Call Centre. The Riverside Centre includes a small call center to assist
consumers, retail occupiers, and leisure visitors in obtaining information about the mall,
opening hours, and product lines. The Centre appears to have a personnel shortfall and
wants to hire more people. The plan and expense of the recruiting, on the other hand, are
detailed in this report. The number of temporary staff and the cost of temporary staff is
calculated. Further, cost saving is calculated if a new system is introduced that will increase
the work done by each worker.

The eight tasks included Delta Tagging Merchandise Protection System process study,
capacity, and profit. Several shops are upgrading their RF merchandise tagging systems as
part of the renovation to reduce shrinkage from shoplifting. Delta Tagging is the Centre's
chosen provider, but the business is having difficulty deploying enough resources to fulfil
demand, partly due to bottlenecks in their project procedures. The production capacity of
Delta is calculated and then the gross profit is calculated for the current year. In addition to
that, the extra profit that will generated by the use of employment agency is calculated.

The night task is about the selection of the procurement and supplier of for road sweeper,
The Riverside is looking for the procure the new compact vacuum road sweeper to maintain
the roads and parking area. The selection criteria are based on the weighted them on a
scale of 1 to 10 and prices for all the three possible options.

Task ten is about the Frank restaurant in which they are looking for the make decision on
the problem occurring in the meals. Frank management is looking for the reasonable option
to hire new chef by the comparing the new high cost for the chef and cost of meals
problem.
Introduction
This is a consultancy report prepared by Infinity Consultancy to Riverside Shopping Mall
which is a shopping as well as leisure complex with several retail outlets from both local and
national boutique offerings. Presently, the mall is trying to undergo series of refurbishment
activities and it is presumed that several vendors will use this opportunity to enhance and
develop their environment and the services they provide. In addition, the management at
the shopping mall intended to attract new tenants to occupy some of vacant units through
the refurbishment.
Recently, our sales director at Infinity Consultancy has attended a ‘Meet the Buyer’ event
where the manager of the shopping mall, current tenants and new prospective tenants
were present and from which several sales has resulted to the emergency of consultancy.
However, these were followed up directly with each potential client and the particular
needs of each of the required operations.
Therefore, the sales director has provided us with all the information regarding the recent
refurbishment at Riverside Shopping Mall. Based on this information, we have analyzed the
information and made several recommendations regarding how operations or project
management performance could be improved in each area or department and in so doing,
generate increased profitability for the clients

TASK FIVE: Product sourcing and inventory management at Caffeine coffee

supplies

The Caffeine's Food and Beverage Shop is now functioning as a single store, with plans to
build a second outlet within the Centre to double the volume of required coffee and identify
the need for a more structured way to purchasing coffee. This report has developed the
project sourcing as well as the project inventory management of the project.

1.
The entire estimated cost of the coffee supplier for the current coffee bar in 2020 can be
determined using the Economic Order Quantity technique based on the information
supplied. In adopting this method, the formulae below is used.

As per the information provided in the report,

D = 76 units every 2 weeks = 76/2 x 52 = 1976
S = £38
H = £9
Therefore, the Economic Order Quantity (EOQ) can be calculated as shown below.

EOQ

It is estimated that the total of 130 quantity should be ordered every 14 days and the quantity will
be ordered 26 times in a year and at £15.75 per container cost. , hence the annual cost of the coffee
supply will be
Annual cost of coffee supply =130 x 26 x £15.75 = £53,235

2.
Using the Economic Order Quantity technique, the total estimated cost of the coffee
supplier for the present coffee bar in 2021 may be determined. The above-mentioned EOQ
formula will be adopted in this technique.

As per the information provided in the report.

D = 200 units every 2 weeks = 200/2 x 52 = 5200
S = £38
H = £9
Therefore, the Economic Order Quantity (EOQ) can be calculated as shown below.

EOQ

It is estimated that the total of 210 quantity should be order every 14 days and the quantity will be
ordered 26 times in a year at £14 per container cost. Hence the annual cost of the coffee supply will
be:

Annual cost of the coffee supply = 210 x 26 x £14

Annual cost of the coffee supply = £76,440

3.
From the above analysis, it can be concluded that the suggested discount is not worthwhile since the
total cost of running the two shops will be more irrespective of the given discount. It is therefore
recommended for the coffee shop to increase their order per annum to cover their cost.

TASK SEVEN: Staff resource planning at Riverside Customer Call Center

The third project and operation consultancy report provides critical information on staff
resource planning at Riverside Customer Call Centre. The Riverside Centre includes a small
call center to assist consumers, retail occupiers, and leisure visitors in obtaining information
about the mall, its opening hours, and product lines. The Centre appears to have a
personnel shortfall and wants to hire more people. The plan and the cost of the recruitment
is discussed in this report.

The Riverside Customer Call Centre operates eight hours a day (09:00 -17:00) and five days a
week.
At the Riverside Customer Call Centre, an average of 608 calls is made per day during the
peak periods.
The peak period ranges between mid-October and January inclusive, which is about 15
weeks
Therefore, during the peak periods, a total of 45600 (608 x 5 x 15) calls is supposed to be
made
There are 3 permanents staff working at Riverside Customer Call Center.
Each of the 3 permanent staff can make 12 calls per hour
Therefore, the total calls made by the 3 permanents staff each day will be 288 (12 x 8 x 3)
calls per day
Now, within the 15 weeks peak periods, the total number of calls made by the 3 permanent
staff will be 288 x 5 x 15 = 21600
Now, within the 15 weeks peak periods, the total number of calls made by the 3 permanent
staff will be 21600 (288 x 5 x 15).
There is a total of 45600 calls to be made within the peak periods and the 3 permanent staff
can make about 21600, therefore there is about 24000 45600 -21600) calls to be made.
A temporary staff can make about 8 calls per hour
Therefore, within the peak period, a temporary staff can make about 4800 (8 x 8 x 5 x 15)
calls
Then, the total temporary staff that will be needed within the peak period is 5
(24000/4800).
Hence, 5 temporary staff will be needed.

2.
The budget for temporary staff during the peak period can be calculated as shown below.
A temporary staff cost £76.75 per 8-hour day shift
Therefore, the cost of recruiting a temporary staff within the peak period will be £5756.25
(76.75 x 5 x 15).

Since, there are 5 temporary staff, the budget of the total temporary staff will be:
5 x £5756.25 = £28,781.25

The budget of the total temporary staff will be £28,781.25.

3.
A specialized IT firm has recommended implementing an enhanced call handling system
that, according to the company, will increase productivity by allowing permanent employees
to handle 18 calls per hour and temporary workers to handle 12 calls per hour.
The system would require a one-off capital cost of £34,000. On-going revenue and
maintenance costs would be the same as the current system.
After the implementation, the total calls that would be made by 3 permanent staff within
the 15 weeks peak periods will be 32400 (3x 18 x 8 x 5 x 15) calls.
The total calls that would be made by the 5-temporary staff within the 15 weeks peak
periods will be 36000 (5 x 12 x 8 x 5 x 15) calls.
Therefore, the total calls that the staff are able to make using the proposed system and
within the peak periods will be 68400 calls (32400 + 36000).
This implies that the call center will have about 22800 (68400 -45600) excess calls.
Again, the adoption of this method will reduce the number of temporary employees hired.
This is due to the fact that the permanent staff can make around 32400 calls out of the
needed 45600 calls, then the temporary employees can make approximately 13200 calls.
Each temporary staff using the system can make about 7200 (36000/5) calls.
Therefore, the number of temporary staff that would be recommended using this system
will be 2 (13200/7200 = 1.83 = 2).
The cost of the saved by using 2 temporary staff is £17268.75 (£5756.25 x 3).
The cost of installing the system is around £34,000, which is greater than the cost savings
from recruiting temporary employees. As a result, in terms of cost, it is not advisable for the
call center to use the system.

TASK Eight: Process analysis, capacity, and profit Delta Tagging Merchandise
Protection System

Several shops are upgrading their RF product tagging systems as part of the renovation to
help reduce shrinkage from shoplifting. Delta Tagging is the Centre's chosen provider, but
the business is having difficulty deploying enough resources to meet demand, partly due to
bottlenecks in their project processes.
1.
The Delta manage each task based on the following process:

According to the information provided, there are four primary procedures involved in the
implementation of a new CCTV, and everyone works for 8 hours per day, 5 days per week.
As a result, the capacity of each process should be determined in order to determine the
Delta's weekly production capacity.

Sales visit capacity: According to the information provided, the average time for a sales visit
is 8 hours. As a result, the capacity of one salesman each week for 40 hours is 8 (40/5)
hours. Because there are two salespeople, the overall capacity or number of sales visits in a
week is 16 (2 x 8) hours.

Site Survey capacity: According to the information provided, the average duration for one
site survey is 16 hours. As a result, the capacity of one surveyor each week for 40 hours is
2.5 (40/16). Because there are three surveyors, the overall capacity or number of site
surveys in a week is 7.5 (2.5 x 3).

Manufacture capacity: According to the information supplied, the average time for one
manufacturing is 20 hours. As a result, the capacity of one team each week for 40 hours is 2
(40/20). Because there are five teams, the overall capacity or manufacturing in a week will
be 10 (2 x 5).

Task 09
1. Analyze all the information and, using a weighted scoring system, provide
a coherent recommendation as to which vehicle, Riverside should select.
Installation capacity: According to the information provided, the average duration for one
installation is 30 hours. As a result, the capacity of one team each week for 40 hours is 1.8
(40/22). Because there are six teams, the overall capacity or number of installations in a
week is 10.8 (1.8 x 6).

2.
The annual gross profit

The annual gross profit made by the company for the previous years can be calculated as:

- Charge per CCTV = £45,000

- Total units' costs (cost of materials and staff costs) £28, 000 per system.

-All other fixed overheads cost £85,000 per week (85000 x 50) 4,250,000.

- The company trade for 50 weeks a year.

- The company develops and install 8-10 systems a week (Assuming 10 systems per week).

Therefore, the annual gross profit generated by the company previous can be calculated as.
Annual gross profit = (45,000 x 10 x 50) - (28,000 x 10 x 50) - (85,000 x 50)
Annual gross profit = £4,250,000

Therefore, the company generates a gross profit of about £4,250,000.

3.
The use of employment agency (assessing the staff to be recruited)

If the company decides to hire more temporal staff from an agency, the extra staff will be
for the site surveyor sector and the cost attracted for the year will be:

Salesman = £300 x 5 x 50
Salesman = £75,000

Surveyor = £400 x 5 x 50
Surveyor =£100,000

Fabrication technician = £1000 x 50

Fabrication technician = £50,000
Installation team = £1250 x 50
Installation team = £62,500

The total extra cost of staff will be = (75,000 + 100,000 + 50,000 + 62500)
Total extra cost of staff = £287,500

Also, the number of systems developed per week will increase from 10 to 13 (25% increase)
system. Therefore, the new profit can be calculated as follows.

Extra profit = (45,000 x 13 x50) - (28,000 x 13 x 50) - (85,000 x 50) - (287,500)

Extra profit = £6,512,500 - £287,500
Extra profit = £6,225,000

The extra profit will be £6,225,000.

TASK Nine: – Procurement and supplier selection
Road Sweeper Procurement

1. Analyze all the information and, using a weighted scoring system, provide a
coherent recommendation as to which vehicle, Riverside should select.

Considering the both factors of weighting scoring system and as well financial aspects of all
three options on which the Riverside team had agreed on to judge the three potential
vehicle companies. We see that.
Clean Sweep scored 33 out of 60 points.
Roth clean gained 38 out of 60 points.
EBG had a total of 43 out of 60 points.
Hence by looking at the scoring system it can be inferred that EBG has a clear-cut edge over
Clean Sweep and Roth Clean.
In terms of financial stability, EBG offers a price of 66,000 while Clean Sweep has 87,000 and
Roth clean 69,000. Even when adding the annual cost charges, EBG proves to be much
cheaper and more sufficient in terms of pricing as well as other factors. But there is lease
option available for the clean sweep which need to evaluate more in details with the
aspects of finance available for the riverside.
2
Advise Riverside if the alternate lease proposal from Clean Sweep would be beneficial.

Clean Sweep has option of lease by the annual cost of 16,870 for the four year which is by
the total cost in four year is 67,480. This can be best cheaper option as compare to the
remaining two options, but lease option has other aspects for the business like on company
liabilities can be increase. So, decision of lease liability for the clean sweep is cheaper.
TASK Ten: – Quality management and cost analysis
Frank’s New York Steakhouse

1. Calculate how many problem meals are occurring at Franks each week – and split
them between how many are external quality problems (noticed by the customers)
and how many are internal quality problems (noticed by the kitchen staff before
leaving the kitchen).

Franks normally serve 600meals/week with a figure of 4% quality problems in all meals then
an average of 48 problem meals goes out of Frank’s kitchen each week. The 40% of total
problem in meals spotted before the meals serve to the customers so this internal quality
control problems and this is by figure of; 19.2 (approx. 19) meals/week are identified before
leaving the kitchen. While the rest is external problems which identified by the customers
and which is 28.8 around 29 meals.

2.Use your response to 1. to calculate the total cost of quality problems at Franks over
the course of a year (internal and external quality costs)

By the calculation of 48 problem meals/week then over the course of a year 2400 problem
meals are served. Out of which 40% cost £8/meal, which is 960 problems meal internal
hence contributing to a number of £7,680 to the cost of the quality problems. While the rest
60% cost £30/meal, making a dent of £43,200 to the total expenditure. This leads to a final
number of £50,880 in the case of quality problem meals.

3.Analyse whether the suggestion from the senior waitress would be rational in terms
of the costs and benefits.

The cost of a quality control supervisor is £24,000 which is £26,880 less than what Frank’s is
spending at the moment. Employing an individual of such caliber guarantees that the
number of quality problem meals would be significantly reduced (if not totally nullified due
to human error) saving Frank’s a fortune in the long run. Hence, the suggestion is rational.
4.Analyse whether the suggestion from Tony’s wife would be a good idea in terms of
the costs and benefits.

If we consider the previous ratio of only 1% quality problem meals with the previous chefs,
then it gives us a total of only 0.24 problem meals/week which is a huge contract to the
present 24 problem meals/week scenario. But this is an ideal situation where the expertise
of the assigned chef is guaranteed. It might be the case that the new chef leads to even
more problem meals/week than before. Hence, the suggestion of hiring a quality control
supervisor is much better.
Student ID. 314181

Conclusion
This consultant report analyzes and evaluates the methods for carrying out various projects and
operations at Riverside Shopping Mall. The mall is set to undergo a series of refurbishment
programs, and it is expected that certain vendors will take advantage of this chance to upgrade
and enhance their own premises and supplied services. Task five of the report calculated the
annual coffee cost for the current coffee cost and revised annual coffee cost which are
calculated to be £53,235 and £76,440 respectively. Further recommendation was also given regarding
the discount related to coffee supplier. In task seven, the number of temporary staff required is
calculated and It was concluded that 5 additional tempo rary staff is required and the cost of the
temporary staff is calculated to be £28,781.25. In addition, it was concluded that the cost of installing
an enhanced call handling system is higher than the cost saving though the implementation.
Task eight, calculates the Delta’s production capacity in terms of sales visit, site survey,
manufacture and installation. Further, the company made a gross profit of £4,250,000. The
extra profit that will be generated by the use of employment agency is £6,225,000.