Group 5 – Class Exercises

Week 2 (18th February 2011) - Project Selection

Project Selection Process

Brainstorming of Ideas

Selection Criteria

Cost benefit ratio (CBR)

Project Selection Matrix

Rejected Sacred Cow

Risk Analysis

Final decision by Project

Manager and Project Team

Brainstorming Ideas

1. Mask 11. Cards

2. Puzzle 12. Kite
3. Chess 13. Board games
4. Lego 14. Cups
5. Animal models 15. Lantern

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 Group 5 – Class Exercises

6. Doll 16. 3D Puzzle

7. Clothes 17. Roses
8. Planes 18. Books
9. Ball 19. Christmas tree
10. Rubric’s cube 20. Play house

Project Selection Criteria

1. Safe 11. High profit margin

2. Educational 12. Durable
3. Easy to manufacture 13. Easy to handle / manageable
4. Colour 14. Labour
5. Cost effective 15. Age group
6. Non-toxic 16. Attractiveness
7. Light weight 17. Functionality
8. Easily accessible materials 18. Season
9. Space effective design 19. Reusability
10. High market demand 20. Recyclable

Final 5 Projects Selected

1. Kite
2. Puzzle
3. Mask
4. Board games
5. Animal models

Cost Benefit Ratio (per unit)

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 Group 5 – Class Exercises

No Projects Cost (Pence) Selling Price Benefit Benefit/Cost

. (Pence) (Pence) Ratio
1. Kite 45 65 20 0.44
2. Puzzle 35 70 35 1
3. Mask 30 50 20 0.66
4. Board games 35 75 40 1.14
5. Animal models 35 80 45 1.29

Benefit/Cost Ratio (BCR)

1.4

1.2

0.8
BCR

0.6

0.4

0.2

0
Kite Puzzle Mask Board games Animal models
Projects

Project Selection Matrix

1
15

14 11

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 Group 5 – Class Exercises

12
Technical Feasibility (How easy it is?)

13
17

2 5

7
6 16

8
3 19

4 10 20

Net present value given success

Commercial potential

Final 5 ideas Other brainstormend ideas

Risk assessment

Probability Risk
Risk Criticality
1 2 3 4 5 1 2 3 4 5
1. Accidents 10 3 2 1 3 1 30 20 10 30 10
2. Competitors 6 7 8 3 6 2 42 48 18 36 12
3. Overbudget 8 2 5 5 5 6 16 40 40 40 48

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 Group 5 – Class Exercises

4. Fire 10 1 1 1 1 1 10 10 10 10 10
5. Overdue 7 1 3 3 3 2 7 21 21 21 14
6. Shortage of manpower 9 1 2 2 1 2 9 18 18 9 18
7. Logistics 3 2 1 2 1 2 6 3 6 3 6
8. Equipment failure 3 3 2 2 2 3 9 6 6 6 9
9. Crash of
2 1 2 2 1 2 2 4 4 2 4
communication system
10. Insufficient raw
8 3 4 2 3 2 24 32 16 24 16
materials
155 202 149 181 147
Total Risks:

Total Risk of Projects

250

200

150
Total Risk

100

50

0
1. Kite 2. Puzzle 3. Mask 4. Board games 5. Animal models
Projects

Finalization of project

Selection Method Projects Final selected project

Numeric Animal Models
Animal Models
Non-numeric Animal Models

Week 3 (25th February 2011) - Project Initiation

Stakeholder Analysis

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 Group 5 – Class Exercises

ID Brainstormed List of Stakeholders ID Key Stakeholders

1. Mr. Cringle 1
2. Project sponsor 2
3. Project team 3
4. Consumers 4
5. Employees 5
6. Suppliers 6
7. Lenders 7
8. Community 8
9. Government 9
10. Investors 10
11. Logistics 11
12. Project manager 12
13. Outsource companies 13
14. Children 14
15. Interest groups 15
16. Co-workers 16
17. Business partners 17
18. Vendors 18
19. Shareholders 19
20. Executives 20

ID Brainstormed List of Questions ID Key Stakeholders

1. What are your goals? 1
2. What are your targeted markets? 2
3. When is your due date? 3
4. What is the budget? 4
5. What information do they want? 5
6. What products sell the best? 6
7. What after-service do they require? 7
8. How do they want to be communicated? 8
9. What is their current opinion of your work? 9
10. How fast can you deliver? 10
11. What is educational? 11
12. What is hazardous and toxic? 12
13. What is the lifespan of the toys? 13
14. How do we execute the project efficiently? 14
15. How do we market our product? 15
16. Where do we market our product? 16
17. How can we improve the product? 17
18. What is the selling price of the product? 18

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 Group 5 – Class Exercises

Key Key Question ID Key Question ID Key Question ID Key Question ID

Stakeholder’
s ID
1 (cringle) 1 – To 2 – Children 3 – The toys 8 – Phone calls
manufacture below 8 years must be and emails.
10000 units of old. delivered by 24th
toys which retail of December
at 1GBP per unit. 2011 at 4am to
the shed behind
my house in the
North Pole.
2 (sponsor) 4 – About 4000 8 – Phone calls 9 – Ensure that 17 – Make your
pounds. and emails. you’re able to toys more
stick to your attractive and
scope, schedule educational to
and budget. attract more
customers.
3 (team) 1 – To 3 – The toys have 14 – To work 15 – Besides
manufacture and to be delivered closely as a team making our
deliver 10,000 before 24th and monitor product more
toys to Mr. December 2011 progress attractive, it also
Cringle on time. at 4am. continuously. has to be
affordable.
Advertisements
can be done to
market the
products.
4 (consumer) 5 – The method 7 – Product 17 – Ensure that 8 – Mails or
of playing the warranty or the toy is safe, if emails.
toy and it’s enquiry services possible, make it
safety more attractive
informations and educational
20 1 – Ensure that 4 – Depends on 9 – Keep to your 17 – Find ways to

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 Group 5 – Class Exercises

(executive) the project team the amount of schedule, scope make it more
manufacture and money that the and budget at all attractive,
deliver 10,000 project sponsor times. educational and
toys to Mr. is offering have a higher
Cringle on time. profit margin.
19 5 – The cost and 8 – Phone calls, 9 – Ensure that 17 - Find ways to
(shareholder) selling price of mails and emails. the toys are make it more
the product, the manufactured attractive,
ROI and payback and delivered educational and
period. 10,000 toys to have a higher
Mr. Cringle on profit margin.
time.
12 (manager) 1 – To manage 2 – Children 5 – Report the 9 – Need to
the project team below 8 years progress of the ensure that the
well and ensure old. project from team work
it complies to the time to time. together to
three achieve the
constraints. project
objective.
6 (suppliers) 5 – The materials 8 – Phone calls 12 – Paper that 13 – The paper
that you need to and emails. contains can probably last
manufacture the hazardous for a decade or
paper animals. chemicals. so.

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 Group 5 – Class Exercises

Stakeholder Map

Keep Satisfied Manage Closely 14

2
20
12
3
Power

6
13 16
9 7 17

Monitor (Minimum Effort) Keep Informed

18

10
4

15 1 19

Interest

Project team Investors Customers Others

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 Group 5 – Class Exercises

Goal Statement

Project Budget:

 Manufacturing cost for each unit is approximately 35 pence. So, 10000 units cost 3500
pounds
 The product design cost is 100 pounds
 Peripheral cost is approximately 400 pounds
 Thus, the total costs for the entire project is 4000 pounds

Project Schedule:

 To come out with a design by 4th March 2011

 To produce a prototype by 11th March 2011
 To present the prototype to Mr. Cringle by 15th April 2011
 To deliver to Mr. Cringle by 24th December 2011 at 4am at the shed at the back of his
house in North Pole.

Project Scope:

 To produce a project plan to make 10,000 3D paper animals

 To design and produce prototype
 To bid for the project at the tender presentation
 To submit a report covering all aspects of the project

Project Objective Statement

Design, manufacture, package, store and deliver 10,000 paper animals at 80 pence each on
24/12/2011 at 4am to Mr.Cringle’s residence in North Pole.

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 Group 5 – Class Exercises

Flexibility matrix

Least Flexible Moderately Flexible Most Flexible

Schedule √
Scope √
Budget √

Project Scope Statement

An explicit description:

A D.I.Y. 3D animal model made entirely out of paper, for example cards, which are non-toxic
and non-hazardous that can serve educational purposes and also fun to make at the same
time. A variety of animal models can be provided to capture more children’s attention. It is
colourful and attractive with detailed designs to portray features of wild and domestic
animals to children. Each unit costs an affordable 80 pence inclusive of delivery costs.

A few concise sentences:

The 3D animal model is colourful, attractive, educational, safe, easy to make, fun,
environmental friendly and cheap to manufacture at the same time. Each unit costs 80
pence inclusive of delivery cost.

Product description: 3D Paper Animals

Is: Is not:
 Made of paper  Made from toxic or hazardous paper
 Educational  Made from recycled paper
 For children under 8 years old  Suitable for children under 3 years old
 Colourful and attractive  Contain violence
 About animals  Extremely durable

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 Group 5 – Class Exercises

 Affordable  More expensive than the retail price of

 Environmental friendly 1 pound
 Simple
 Safe

Brainstorming of Major Deliverables (MD)

1. Study various animal models 15. Packaging of products

2. Risk assessment 16. Delivering of final products
3. Delivery of raw materials and 17. Size of product
equipment to the manufacturing 18. Design of paper animal model
department 19. Labelling of products
4. Storing of raw materials, equipment and 20. Monitor the project budget
products 21. Purchasing of equipment and raw
5. Research and development of the materials
product 22. Pricing of final products
6. Manufacturing method 23. Follow-Up of customer
7. Prototyping of product 24. Networking with suppliers and vendors
8. Ensuring compliance with rules and 25. Deciding the types of raw material
regulations
9. Quality assurance of products 26. Estimating employees' salaries
10. Presentation of prototype to customer 27. Allocating R & D funds
11. Estimating raw material cost 28. Employees' training and welfare
12. Ensuring raw material safety 29. Meetings and discussions
13. Quality control of raw materials 30. Planning of project
14. Selection of equipment

Week 4 (4th March 2011) - Project Initiation

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 Group 5 – Class Exercises

Affinity Diagram

Handling Logistics
Designing Product
1. Packaging of products
1. Size of product
2. Delivering of final products
2. Design of paper animal model
3. Labelling of products
3. Study various animal models
4. Delivery of raw materials and
4. Risk assessment equipment to the manufacturing
5. Research and development of the department
product 5. Storing of raw materials, equipment
and products

Monitor Manufacturing
1. Manufacturing method
2. Prototyping of product
3. Ensuring compliance with rules and
regulations
4. Quality assurance of products
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13
Managing Administration
1. Monitor the project budget
2. Purchasing of equipment and raw
materials
3. Pricing of final products
4. Estimating employees' salaries
5. Allocating R & D funds
6. Employees' training and welfare
7. Meetings and discussions
8. Planning of project
 Sourcing Raw Materials
Provide Marketing 1. Deciding the types of raw material
Group 5 – Class Exercises
1. Presentation of prototype to customer 2. Estimating raw material cost
2. Follow-Up of customer 3. Ensuring raw material safety
Major Deliverables
3. Networking with(MD)
suppliers and 4. Quality control of raw materials
vendors 5. Selection of equipment
MD ID Completion Criteria
1. Designing product 1.1. Finalize on the size and design of paper animal model
1.2. Submission of final design to the Project Manager
1.3. Design approved by the Project Manager and Mr. Cringle
1.4. Final design passed to the Manufacturing Manager
2. Handling logistics 2.1. Delivering raw material and equipment to the
manufacturing department
2.2. Storing of raw materials, equipment and products
2.3. Labelling and packaging of products
2.4. Delivering the final product to Mr. Cringle
3. Monitor manufacturing 3.1. Ensure the prototype of product is completed
3.2. Ensure that the product complies with the rules and
regulations
3.3. Assuring and controlling the quality of final product
4. Managing administration 4.1. Ensure that the project runs within the budget provided
by the Project Sponsor
4.2. Deal with the purchase of equipment and raw materials
4.3. Finalize on the pricing of product
4.4. Allocating employees’ salaries
4.5. Provide funding for R & D
4.6. Provide training to employees
4.7. Ensure that the employees’ welfares are met
4.8. Arrange meetings and discussions
4.9. Planning of the project
5. Provide marketing 5.1. Presenting the prototype of product to Mr. Cringle
5.2. Follow-up on the customer
5.3. Networking with all suppliers and vendors
6. Sourcing raw materials 6.1. Finalize on the types of raw material and its supplier
6.2. Determination of the cost of raw materials and
equipment
6.3. Ensuring the safety of raw materials

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 Group 5 – Class Exercises

6.4. Quality control of raw materials

MD Is/Is not

Situation Definition: Designing Product

Is:
 Colourful
 Made entire out of paper
 Safe for children below 8 years old
 Consists of a few animals
 Educational and attractive
 Recyclable
Is not:
 More than 5 colours
 Made of toxic or hazardous paper
 Safe for children below 3 years old
 Limited to one design of animal
 Boring and uncreative
 Hazardous to the environment

Situation Definition: Handling Logistics

Is: Is not:
 Delivering on time  Late during deliveries
 Packaging and labelling of product  Designing the packaging and labelling of
product
 Storing and delivering the raw materials,  Purchasing the raw materials,
equipment and product equipment and product

Situation Definition: Monitor Manufacturing

Is: Is not:
 Ensuring the quality of product at all  Periodic checks on the product qualities
times
 Efficiently identifies and address all  Ignoring minor defects
product defects
 Ensuring the prototype is ready on time
 Delivering the prototype
 Ensuring the manufacturing process
 Finding loopholes in rules and
complies to the rules and regulations
regulations

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 Group 5 – Class Exercises

Situation Definition: Managing Administration

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16
 Group 5 – Class Exercises

Is: Is not:
 Ensuring the project is run within budget  Providing the budget
 Purchasing of raw materials and  Delivering raw materials and equipment
equipment
 Finalize on the price of the product  Selling the product
 Financing the R & D  Executing the R & D
 Providing training to employees  Manufacturing the products for the
employees
 Arranging meetings and discussions  Chairing the meetings and discussions

Situation Definition: Provide Marketing

Is: Is not:
 Presenting the prototype to Mr Cringle  Manufacturing the prototype
 Networking with suppliers and vendors  Dealing with financial issues with
suppliers and vendors

Situation Definition: Sourcing Raw Material

Is: Is not:
 Deciding on the raw material and its  Delivering and storing the raw material
supplier  Purchasing the raw material and
 Determining the cost of raw material equipment
and equipment
 Ensuring the safety of raw materials  Setting the rules and regulations for the
raw materials
Team Roster

Team Member Role Core / Responsible MDs Contact

Extended Information
Su Bolwin Project Manager Core all 016-7056699
Abbas Taherali Yusufali Technical Manager Core Monitoring 014-7198848
manufacturing
Celestia Chan Sze En IT Manager Core all 016-9141586
Debra Low Yeat Choo Public Relations Core Provide marketing 017-6131784

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 Group 5 – Class Exercises

Manager
Kon Kee Jun Production Manager Core Monitoring 016-2085889
manufacturing
Nurul Ain Mat Aron Finance Manager Core Corporate and 013-9333934
administration
Samah Rahamtalla Marketing Manager Core Provide marketing 017-3421240
Mohamed
Thang Wei Mein Logistic Manager Core Logistics / 013-7792912
Providing
manufacturing
Wardah Farhana Quality Control Core Providing 019-3001601
Mokhtaruddin Manager manufacturing

Team Rules

1. Be participative. 5. Be consistent.
2. Be responsible. 6. Be constructive.
3. Be punctual. 7. Be efficient.
4. Be informed. 8. Be creative.

Project Charter Outline

Section Charter Content

1. Project Selection
1.1. Brainstormed ideas
1.2. Project Selection Criteria
1.3. Cost Benefit Ratio
1.4. Project Selection Matrix
1.5. Risk Assessment
2. Project Initiation
2.1. Stakeholder Analysis
2.2. Project Goals
2.3. Project Objective Statement (POS)

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 Group 5 – Class Exercises

2.4. Flexibility Matrix

2.5. Project Scope Statement
2.6. Product Scope Statement
2.7. Major Deliverables
2.8. Affinity Diagram
2.9. Team Roster
3. Project Planning
3.1. Work Breakdown Structure (WBS)
3.2. Activity Sequencing
3.3. Milestone Definition
3.4. Project Gantt Chart

4. Project Monitoring and Control

4.1. Scope Baseline
4.2. Project Cost Baseline

5. Project Closure

Week 5 (11th March 2011) - Project Planning

Activity Definition

Brainstorming

MD MD Name Work Required

1.0 Designing Products 1.1. Define criteria for the product
1.2. Study animal model
1.3. Design animal model
1.4. Approval from PM and Mr.Cringle
1.5. Prepare prototype
1.6. Material Selection
1.7. Designs handed to Production Manager
2.0 Logistics 2.1. Acquire raw materials

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 Group 5 – Class Exercises

2.2. Hand materials to production team

2.3. Packaging final products for delivery
2.4. Storing raw materials, equipment and final
products
3.0 Monitoring Manufacturing 3.1. Develop manufacturing method
3.2. Outsourcing
3.3. Comply with rules and regulations
3.4. Assuring quality of product
4.0 Corporate and Administration 4.1. Monitor the budget
4.2. Insurance
4.3. Purchasing of equipment
4.4. Pricing of products
4.5. Handling taxes
4.6. Auditing the accounts
4.7. Estimating labour cost
4.8. R & D cost
4.9. Employee training
4.10. Employee welfare
5.0 Provide Marketing 5.1. Prototype presentation
5.2. Networking
5.3. Communication with Mr.Cringle and project
sponsors
6.0 Raw Material Sourcing 6.1. Provide potential material options for
design and production
6.2. Selecting supplier
6.3. Estimate material cost
6.4. Evaluate material safety
6.5. Quality control of raw materials

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 Group 5 – Class Exercises

Work Breakdown Structure (WBS)

MD MD Name Level 1 Level 2 Level 3

1.0 Designing Products 1.1 Define criteria for the product
1.2 Study animal model
1.3 Design animal model
1.4 PM and Mr. Cringle approval
1.1.1 Market survey
1.1.2 Analyse survey
1.1.3 Interview Mr. Cringle
1.2.1 Examples reference
1.2.2 Feasibility comparison
1.3.1 Draft design
1.3.2 Model Selection
1.3.3 Finish the design
1.4.1 prototype preparation
1.4.2 Approach PM and Mr. Cringle
1.1.1.1 Create a questionnaire
1.1.1.2 Interview customers
1.1.1.3 Carry out the survey
1.1.3.1 Arrange meeting
1.1.3.2 Present design
1.2.1.1 Book reference
1.2.1.2 Internet reference
1.2.2.1 Group discussion
1.2.2.2 Group decision
1.3.1.1 Refer example
1.3.1.2 Manual drawing
1.3.1.3 Computerized drawing
1.3.2.1 Produce design
1.3.2.2 Design approval
1.3.3.1 Touch up
1.4.1.1 Design finalization
1.4.1.2 Make the prototype
1.4.2.1 Arrange meeting
 Group 5 – Class Exercises
1.5 Material Selection 1.5.1 Define criteria
1.5.2 Survey material
1.6 Designs delivery 1.6.1 Finalise the design
1.6.2 Production manager approval
2.0 Logistics 2.1 Acquire raw materials 2.1.1 Arrange transportation
2.1.2 Confirm acquisition
2.2 Material delivery 2.2.1 Material delivery
2.2.2 Manager confirmation
2.3 Final products packaging and 2.3.1 Design packaging
delivery
2.3.2 Prepare packaging material
2.3.2 Selection of delivery method
2.4 Raw materials, equipment and 2.4.1 Allocating space
1.4.2.2 Give presentation
1.5.1.1 Regulations checks
1.5.1.2 Consult Mr.Cringle
1.5.2.1 Options survey
1.5.2.2 Analyse survey
1.6.1.1 Finishing touches
1.6.1.2 Team examination
1.6 .2.1 Approach manager
1.6.2.2 Acquire confirmation
2.3.1.1 Approach marketing
2.3.1.2 Approach designer
2.3.2.1 Potential packaging material
search
2.3.2.2 Packaging material selection
2.3.2.1 List options
2.3.2.2 Method selection
 Group 5 – Class Exercises

final products storage 2.4.2 Sort the raw materials

2.4.3 Store materials
3.0 Monitoring 3.1 Develop manufacturing method 3.1.1 Research feasible methods
Manufacturing 3.1.2 List down possible
manufacturing methods
3.1.3 Decide on one manufacturing
method
3.2 Outsourcing 3.2.1 Determine areas requiring
outsourcing
3.2.2 Determine outsource
solutuons
3.3 Rules and regulations 3.3.1 Confirm rules and regulations
compliance

3.4 Assuring quality of product 3.4.1 Define the criteria for the
product
4.0 Corporate and 4.1 Monitor the budget 4.1.1 Determine the budget
Administration
4.2 Insurance of product 4.2.1 Selection of insurance 4.2.1.1 Survey of insurance
company company
4.3 Purchasing of equipment 4.3.1 Selection of suitable 4.3.1.1 List out potential equipment
equipment that could be used and their
 Group 5 – Class Exercises

suppliers
4.4 Pricing of products 4.1 Determine the profit margin and
cost of production
4.5 Handling taxes
4.6 Auditing the accounts
4.7 Estimating labour cost
4.8 R & D cost
4.9 Employee training
4.10 Employee welfare
5.0 Provide Marketing
6.0 Raw Material
Sourcing

Work Breakdown Structure (WBS) Dictionary

Code Task Name Responsible Completion Criteria Output Assumptions

person
 Group 5 – Class Exercises

Linear Responsibility Chart

Legend: Responsible for (∆), Sign off authorization (*), Keep informed (=D)

Core Team
Project IT Finance Marketing Logistic QC
MD WP Technical PR Production
Manage Manage Manage Manager Manage Manager
Manager Manager Manager
r r r r
Group 5 – Class Exercises