BSBPMG521 Manage Project Integration

Assessment 1 – Written or Oral Questions

1. When establishing your project, how might you:

a) Identify project objectives

When we start a project, we need to look at what will be the goals to be achieved with certain
activities implemented during the project. To set these goals, we need to clearly identify needs
and then work on monitoring and evaluating project life.

Objectives must be SMART: specific, measurable, achievable, realistic and timely. They will
indicate how the project is proceeding. The objectives are basically based on goals, feedbacks,
considerations and decisions from above.

b) Negotiate project objectives, outcomes and benefits with stakeholders

Stakeholders are important decision makers within an organization. It is of utmost importance

that the objectives, outcomes and benefits are brought to them for analysis. This is relevant for
the project to go well. All opinions and suggestions are extremely valid, but not everyone will
always easily accept benefits.

In situations like this, we need to negotiate between project stakeholders to get all parties
involved to agree to the decision made. There are some practices to use for negotiations
including: identify the factors upon which each stakeholder is insistent; identify areas for
negotiation on all sides; be prepared for all eventualities when you enter negotiations with
stakeholders so you are not caught off guard; always use reliable facts and figures that are
accurate and cannot be questioned, etc.

c) Negotiate project governance structure with relevant authorities and stakeholders?

The project governance structure needs to be discussed among all stakeholders involved in the
project so that everyone can contribute to the definition of rules and regulations that will be
used to develop the project itself. These rules should be aligned with the project objectives and
also in accordance with the industry regulations in which they operate, along with regulatory
descriptions. The stakeholders will decide together about statements of roles for project
management bodies and participants, a decision-making framework that includes a code of
ethics, a stakeholder management strategy, a quality management strategy, a project
organisation chart that clearly defines the relationship between all persons involved in the
project, etc.

2. What project documentation is required in the initiation stages of a project? Provide an

example of one of the documents.

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 The initiation stage is the moment where the foundation of the project occurs, it sets out what
the project is about, what will be delivered, by when, whom, and which methods. The
following documents are those that we have to include to generate the PID (project initiation
document):

- Business plan

- Scope

- Resources needed and costs

- Timeline

- Estimated cost/budget

- Potential risks

- Dependencies

The following document is an example of a Business Plan for a Bakery. It comes from the
website http://www.topentrepreneur.co.za/Examples%20of%20Business%20plans/Business
%20plan%20for%20a%20bakery%20pretty%20little%20cakes.html

Business plan for Pretty Little Cakes Bakery

Bakers of quirky, fun cupcakes with unusual flavours, our favourite being Raspberry Fudge!

Executive Summary

Pretty Little Cakes Bakery is a start-up bakery that is located in Somerset West, Cape
Town. Pretty Little Cakes expects to catch the interest of a regular loyal customer base
with its quirky and fun corporate image, and unusual flavour cupcakes. The company aims
to dominate the market in Somerset West due to the owner’s industry experience and the
lack of competition in town.

The Products

Pretty Little Cakes Bakery will offer a broad range of Cup Cakes with unusual flavours such
as Rainbow Cupcake, Gingerbread flavour, Banana Rum, Rose Petal, Raspberry Fudge
and trusted favourites like Red Velvet, Vanilla and Strawberry. The bakery will provide
freshly baked cupcakes at all times during business hours and will also bake to order for
orders larger than 12 cupcakes.

Customers

The cake industry has experienced significant growth in recent years in South Africa and
especially in Cape Town. Pretty Little Cakes wants to establish a large customer base of
regulars and will therefore have taste days on every first Friday of the month, where loyal
customers can taste as many new flavour cupcakes as they like, for a set price. This will

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 hopefully attract a steady stream of wedding planners and/or brides to be. This will ensure
stability by creating a healthy and consistent revenue base.

Management Team

Laura Fields has extensive experience in baking and has been supplying a large customer
base from her home for the last 4 years. She will be assisted in Managing the bakery as a
retail entity by her sister and partner, Samantha Taylor. Samantha has been the national
buyer for the Wholesale Baking Company since 2004, and recently joined her sister at
Pretty Little Cakes after investing in it.

Financial Considerations

Pretty Little Cakes have raised R$ 150.000 between the two owners’ investments and have
applied for a bank loan of another R$ 50.000, bringing the Bakery’s total capital to R$ 200
000.
PLC expects sales of about R$ 800.000 in the first year, based on previous sales from
Laura’s home business of selling cupcakes. Thereafter the owners anticipate an increase in
sales of about 15% per year, as their bakery increases in popularity (this growth figure is
based on market research conducted by JBC media group).

Objectives

The main objective is:

To become a local focal point of interest
To break even by the end of the year.

Mission

Pretty Little Cakes aspires to offer high quality baked goods at a competitive price, which
will create a loyal customer base.

The bakery hopes to become a cornerstone in the community by creating a neighbourhood

atmosphere where patrons feel relaxed and become instant regulars.

3. What information is contained in the project charter and what is the procedure you could
use for obtaining approval from relevant authorities?

The project charter is the document that has everything agreed by all stakeholders and is the
starting point for the project planning. It includes the following information: Business Plan,
Scope, Documented objectives, High-level product deliverables, Resources needed, Timeline,
Estimated cost/budget, High-level risk assessment, Dependencies, Project assumptions and
constraints, Indicators of success, Broad stakeholder identification and their respective roles
and responsibilities, Consolidated project initiation documentation (PID), Approvals and sign-
off, Project mandate, Source of project authority.

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 The project charter works as a contract between all stakeholders and when it has been agreed,
it cannot be changed, if not agreed again from all stakeholders. Everyone involved in the
project must review all the information that contains into the project charter.

4. Explain the processes and procedures you would undertake to establish the project
management plan.

The project management plan needs to be very clear, concise and report all project-related
information in detail, so that all stakeholders involved are aware of the same information. The
plan should describe the scope, roles, communication plan and responsibilities.

To then set the plan for the company, again all stakeholders need to come together and express
their views and considerations about the project. Meeting is one of the procedures used to
ensure that the plan is well established. Constantly the people involved should meet to discuss
what is needed for project implementation.

Some of others processes I would undertake to establish the management plan for the project
are procedures that combine, coordinate, define, identify and unify all information related to
the project management plan.

5. What issues might you encounter whilst executing the project in an established internal
work environment and how could you resolve these issues?

One of the main issues we may encounter in an established work environment is cultural
difference. This needs to be very well done and faced by the management team to engage
those who were already and what is to come. We can also face, and very common by the way,
the resistance to change. This is one of the most difficult to work with, as many people are
opposed to new implementations and experiences in the workplace, end up enjoying the
convenience.

Another issue that can be faced is also the dynamism of the groups. Some people like to work
in groups and some do not. Since this is sometimes necessary, the manager has a responsibility
to motivate, communicate, and encourage employees to work well with their co-workers.

The idea of managing the project is to know that several people from different styles and
cultures will be part, each with their own individualities. We have to know how to deal with
them with two differences and at the same time bring them closer together to get the most
out of their ideas.

6. Create a full and accurate project initiation document and scope statement for an
upcoming project of your choice.

PROJECT CHART

GENERAL PROJECT INFORMATION

Project name The Art Latte

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 Project manager Tim Hudson

E-mail address hudson@theartlatte.com.au

Expected start date May 25, 2019

Expected finish date Jan 13,2020

Estimated costs $66,950.00

ISSUES, GOALS, OBJECTIVES AND DELIVERABLES OF THIS PROJECT

Problem or issue As businesses around the Cafe grow, the

actual size is not supporting the number of
customers
Purpose of project Work on a space expansion of the actual
location
Business Case With the expansion of the Cafe, we will be
able to receive more customers according
to demand; profits will also increase
Goals Expand the venue space; find reliable
people to add to our team
Expected deliverables Expand space and hire new people with
the expected budget and time

PROJECT SCOPE AND SCHEDULE

Within scope Expand space to receive the expected

demand of customers
Outside scope Install a new security system

PROJECT RESOURCES

Project team Tim is the general manager and the

supervisors are working on specific tasks
Support resources All the budget of the project will be out of
the Cafe´s Revenue
Special needs Before stakeholder´s approval, all
supervisors will report to the general
manager

Cost Type Responsible Rate Quantity Amount

Construction Tim $ 39,000.00 1 $ 39,000.00

Human Resource Amanda $ 3,500.00 5 $ 17,500.00

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 IT Paul $ 3,800.00 1 $ 3,800.00
Security team Tim $ 3,325.00 2 $ 6,650.00
TOTAL COSTS $ 66,950.00

PROJECT BENEFITS AND CUSTOMERS

Project Owner Tim - general manager

Key Stakeholders Owner, General Manager, Supervisors

Expected Benefits Increase demand; increase profits and

reduce lost

PROJECT RISKS

Risks - Does not fit the public

- Does not find necessary employees
- Over budget costs
- Government/construction requirements

Prepared by: Tim Hudson Date: 02/04/2019

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