Assignment - g31 - Construction of Unmanned Coffee Shop

CHILLEX CONSTRUCTION Sdn. Bhd enquiry@chillex888.
com
ASSIGNMENT
UEME4253 / UEEP3413 PROJECT MANAGEMENT
ASSIGNMENT TITLE: (CONSTRUCTION OF UNMANNED COFFEE SHOP)
Academic Year/Session June 2023
Date of Submission 25/08/2023
Group Number Group 31
Student Name Student ID Year/Trimester Course
1. Chan Jia Quan 2002859 Y2S2 MH
2. Khoo Teck Leong 2005159 Y2S3 CL
3. Tan Wei Hong 2006041 Y2S3 CL
4. Yap Yong Chun 2005937 Y2S3 CL
5. Yee Yong Xian 2004855 Y2S3 CL

CHILLEX CONSTRUCTION Sdn. Bhd enquiry@chillex888.com
Executive Summary
In This project, Chillex Construction Sdn. Bhd. is proposed to a construction and business
project regards to the construction of The Unmanned Coffee Shop at Sungai Long area. The
Unmanned Coffee Shop is a shop that will serve various type of coffee such as espresso, latte,
cappuccino and so on together with some non-caffeinated beverages and some foods such as
light snack, premade baked products, and dessert. This project is mainly involving in retail
coffee and snacks store industry. This business is planned to launch in Sungai Long area
which are highly dense population of students that love beverage and snacks product. The
prices of the products will be catered to the budget for the students. The Unmanned Coffee
Shop will create a welcoming and comfortable environment to the consumers. We will
provide an excellent quality of products and services that worth the price of the products to
all the consumers. All the employees will be trained to have amiable manners when they
serve all the customers.
As a retail coffee and snacks industry, The Unmanned Coffee Shop will provide a
good quality of coffee, non-caffeinated beverages such as tea, and foods like bread, desserts
and some light snacks to the consumers. Besides, The Unmanned Coffee Shop will also
provide a comfortable AC environment which will make them at ease while enjoying our
products in the shop. We will also provide a free internet access to our customers since most
of our customers target will be the students. They will desire a relaxing environment that
provide a good internet service to hang out with friends or do a study.
The Unmanned Coffee Shop is planned to launch at Bandar Sungai Long area which
is highly dense of residents and students. This kind of crowded population provides a good
business opportunity to The Unmanned Coffee Shop as it has a mass of visitor’s flowrate.
Other than that, it has not much coffee shop is open in our desired location. Therefore, we
have not much business competitors and the price of our products will be much lower than
the other similar coffee shop such as ZUS Coffee. We are expecting our business have a great
amount of customer flow as we have not many competitors around the area. The initial
investment that required to operate The Unmanned Coffee Shop is RM 800,000. The
investment costs are included building cost, renovation cost, equipment cost, labour cost, and
product cost.
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Contents
Executive Summary ................................................................................................................... 2
1.0 Introduction .......................................................................................................................... 4
1.1 Company Background ...................................................................................................... 4
1.2 Project Definition and Background .................................................................................. 4
2.0 Project Scope and Key Deliverables .................................................................................... 6
2.1 Project Scope .................................................................................................................... 6
2.2 Key Deliverables .............................................................................................................. 6
3.0 Project Organization ............................................................................................................ 7
3.1 Organization Chart ........................................................................................................... 7
3.2 Project Team .................................................................................................................... 7
3.3 Work Breakdown Structure (WBS) ................................................................................. 9
3.4 Linear Responsibility Chart ............................................................................................. 9
4.0 Sponsorships and Major Stakeholders ............................................................................... 12
4.1 Sponsorship .................................................................................................................... 12
4.2 Major Stakeholders ........................................................................................................ 13
5.0 Market Analysis ................................................................................................................. 15
5.1 Target Market ................................................................................................................. 15
5.2 Competition .................................................................................................................... 15
5.3 SWOT Analysis.............................................................................................................. 16
6.0 Project Planning ................................................................................................................. 18
6.1 Project Time Estimation ................................................................................................. 18
6.2 Gantt Chart ..................................................................................................................... 19
7.0 Resources Allocation and Project Budget.......................................................................... 24
7.1 Material and Resources .................................................................................................. 24
7.2 Budget of the Project ...................................................................................................... 27
8.0 Risk and Risk Management ............................................................................................... 29
8.2 Risk Management ........................................................................................................... 36
9.0 Conclusion ......................................................................................................................... 43
9.1 Conclusion...................................................................................................................... 43
9.2 Recommendation ............................................................................................................ 43
10.0 References ........................................................................................................................ 45
11.0 Appendix .......................................................................................................................... 49
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1.0 Introduction
1.1 Company Background
Chilllex Construction Sdn. Bhd is a construction and project management company that is
responsible to design and construct a building. This company has been actively participated
in building design and construction since 2015. This company provides extremely dedicated
workers and have involve in being the main contractor for some construction works in
Malaysia. We possess Construction Industry Development Board (CIDB) grade 4 status and
has successful completed a few low-rise buildings project in Malaysia. Our company’s goal is
to provide excellent services and best quality of building to the customer. This company is
now planning to construct and operate a modern coffee shop that is named The Unmanned
Coffee Shop. This coffee shop will be labelled as a second wave of coffee shop as it provides
a quick service with a relatively cheap price of coffee. The Unmanned Coffee Shop will serve
a variety of hot and cold beverages but mostly will be caffeinated products such as instant
coffee, espresso, caffe latte, cappuccino and so on. This coffee shop will also provide free
WIFI internet access and comfortable AC environment for those in take customer.
1.2 Project Definition and Background

Definition
A coffee shop is a place that primarily serves variety types of coffee such as the most
common types of coffee espresso, americano, latte and cappuccino. Some coffee shop will
serve non-caffeinated beverages and food together in shop such as light snacks, dessert and
fruits that are suitable to pair with coffee. Most people refer coffee shop as a place where
people can relax to take a coffee or other beverages as they can read all source of paragraph
or chat with your friends or even have a discussion about business matters.
There are 3 different kinds of coffee shops in the coffee world. There is first, second,
and third-wave coffee shops. The term ‘wave’ comes from imagining your options for coffee
as waves. The first waves coffee shop is the shop that sell the pre-made coffee. The second
wave is those franchise shops that you can just bought the coffee through drive-thru method.
There are known for cheap coffee and quick service. The third-wave shops are generally
found in large cities that generally has an independent building owned. This kind of shop
serves beverage that is made by quality over speed of service. The product are mostly sells in
higher price compared to the other waves of coffee shop.
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Project Background
The Unmanned Coffee Shop is a coffee shop that serves various type of beverages (mainly
coffee) and foods in a comfortable and relaxing environment. The Unmanned Coffee Shop
also provides a feeling at ease to the customer in a promising cool atmosphere. All of our
employees are well-trained to give a good serve of services and product to every customer.
The Unmanned Coffee Shop is decided to launch at Sungai Long area that near
University Tunku Abdul Rahman is because the area is concentrated of population while also
having mass flowrate of people at the same time. There are several educational institutions
that are located nearby the area provides a good commercial opportunity especially for us
who sell budget product that give a huge flavor for students.
Apart from that, we choose this area because we discovered that they are not much
coffee shop is currently operating nearby our business area. Therefore, there will be not much
market direct competitors that have the similar products and services that aimed for the same
customer base with us. Other than that. Sungai Long is an accessible city that has well
infrastructure and convenient transport system that can benefits to all individual so that it can
attract customers from different other cities to travel over here with all those transport system.
Objectives
The main objective of this project is to create a business opportunity to the fresh graduates
like us and will try to expand our market if we have positive feedback from the customers.
The current aimed for this coffee shop are:
1. Provide good quality of products with an affordable price for our customer target.
2. Provide an inviting atmosphere to the customer so that they can make up their mind when
they step through the door.
3. Provide good customer services to helps retain the customer and this will be also a good
advertisement as they shared it to their friends and family.
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2.0 Project Scope and Key Deliverables

2.1 Project Scope
The Unmanned Coffee Shop is built to improve the efficiency of serving meals at least 25%
faster compared with a normal cafe without sacrificing the quality of meals and will be a
popular coffee shop for customers to chill and relax with a monthly profit of more than RM
9000.
2.2 Key Deliverables

▪ No human resources needed for selling products.
▪ Create a comfort and chill places for customer to enjoy.
▪ Earning at least RM 108,000 annually.
▪ All preparation and production of meals is complete by robot and AI automatically.
▪ Develop into check-in attraction spot.
▪ Apply the concept of High technology (Hi-Tech) in the coffee shop.
SMART GOALS
Specific Unmanned Coffee Shop is at least 25%
effective and faster than common cafe and
will be develop to a must-visit spot to archive
favorable earning.
Measurable Unmanned Coffee Shop will bring a net
profit between RM 100,000 – RM 150,000
per year and will keep increase with time.
Achievable Unmanned Coffee Shop can provide a
comfortable and cozy environment with
multiple-function robot to serve customers
and maintain the cleanliness of the coffee
shop.
Realistic Unmanned Coffee Shop has reviewed and
discussed with different experts the concept,
resources and possible outcomes of meal
production and the overall conditions in the
shop.
Timescale All the goals and key delivery able to be
achieve within 1.5 years.
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3.0 Project Organization

3.1 Organization Chart
Project
Manager
Engineering Project Administration

Manager Controls
Human
Senior Project Planning Quantity Accountant Resource
Contractors
Engineer Engineer Surveyor Manager
Figure 1: Organization Chart of the Project
3.2 Project Team

Table 1: Staffing
No. Role Name Academic Qualification Task
1. Project Manager Yap Yong Chun PhD level in Civil ▪ Conduct meeting with all workers
Engineering from and staff to ensure the progress of
Nottingham University the project.
▪ Overlook the overall project and
responsible to coordinate and
integrate activities across multiple
functional lines.
▪ Monitoring the relations with
clients as well as the sponsorship
and stakeholders.
2. Senior Project Yee Yong Xian Master level in Civil ▪ Monitor the productivity of the
Engineer Engineering from workers at the construction sites.
University Technology ▪ Improve on critical activities to
Malaysia make sure the project complete
on time.
3. Contractors Khoo Teck Leong Degree in Civil ▪ Carry out a lot of activities such
Engineering from as arranging materials, machines
University Technology and equipment.
Malaysia ▪ Leading the team to execute the
project’s activity.
4. Planning Engineer Tan Wei Hong Master level in Material ▪ Prepare cost estimation such as
Engineering from material and labor costs for
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Campbell University project services.

▪ Prepare and submit the
premeeting submittals.
▪ Manage the design, planning and
construction of construction
projects.
5. Quantity Surveyor Chan Jia Quan Masters in quantity ▪ Review the construction plans
survey from and preparing quantity
Loughborough University requirement.
▪ Prepare the cost load values for
all activity according to the
project schedule.
6. Accountant Loh Jia Xin Degree in Accounting and ▪ Prepare financial reports to the
Finance from University clients.
of Surrey ▪ Monitor and maintain the budget
of the project throughout the
project.
▪ Process the invoices requisitions
and purchase orders.
▪ Review the contractors’ bills and
approve the payment.
7. Human Resource Tan Wei Han Degree in Management ▪ Recruit and manage workers.
Manager from University of Surrey ▪ Conduct payroll, training
programs and solve the conflicts
between workers.
▪ Guarantee the workers’ benefits
and safety.
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3.3 Work Breakdown Structure (WBS)
Figure 2: Work Breakdown Structure (WBS)
3.4 Linear Responsibility Chart
R = Responsible, S = Supporting, A = Approval Required, M = Monitoring

PM = Project Manager, SPE = Senior Project Engineer, CT = Contractor,
PE = Planning Engineer, QS = Quantity Surveyor, AC = Accountant,
HR = Human Resource Manager
Table 2: Linear Responsibility Chart

Main Task Subtask Task Specification PM SPE CT PE QS Ac HR
Planning Design of Discuss and decide the design A S R S
Building and of the coffee shop and
Technology technology used.
Details Drawing Confirm details plan and R S S S
drawings of the project to
avoid any confusion.
Budget and Calculating and estimating A S S R R R
Estimating the budget, resource
allocation and material
required for the entire project.
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Approvals Application for the approval A R S

with the main stakeholders
with clear identification and
involvement in the project
Building and Foundation Laying the foundation to the M R R M M S
Structure location of the building to
ensure the building more
stable.
Interior Build the structure of the shop M R R M M S
according to the floor plan
including the walls and floors
Exterior Build the external structure of M R R M M S
the shop such as roof, fence
and car park.
Finishes Floor Tiling Lay out the floor tiles at the M R S M
interior of the building.
Painting Color the paint on the walls, M R S M
roofs and external structure of
the building.
Furniture Move chairs and tables into M R S M
the coffee shop.
Utilities Electricity Electricians install the M R R M S
electrical devices and
equipment.
Lighting Install the light components at M R R S
the coffee shop.
Drainage Install efficient drainage M R R S
System system and toilet system at
the coffee shop.
Technology Cashier System Apply unmanned technology M R S M
System to the cashier system.
Coffee Brewing Set up automated coffee M R S M
System brewing system which does
not require manpower.
Packaging Install automated packaging M R S M
System system that allow customer to
collect themselves.
Budget and Cost Prepare the financial report to A M M R S
Quality Accounting the client from time to time
and maintain the budget
throughout the project.
Resources Manage the labors to support A R M S R
Management the project and control
material used for the project.
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Site Inspection Conduct site walkthrough M S R

throughout the project to
ensure everything carried
smoothly.
Contract Verify the floor plan and the M S R S
Compliance building to ensure everything
is in accordance with the
contract document.
Closeout Site Clean up Remove all the dirt and clean M R R M M S
whole site.
Equipment Remove all the temporary M R R M M S
Demobilization structure and equipment used
in the construction.
Final Inspection Conduct inspection at the site R S M M
physically to ensure
everything is completed.
Document Handover the document and R S S
Handover the buildings to the client.
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4.0 Sponsorships and Major Stakeholders

4.1 Sponsorship
Sponsorship is a vital component in a construction project. It is an individual who provides
resources such as financial resources for the initiation of this project. A project sponsor just
monitors the entire project from a high-level of standpoint and set the mindset to priorities the
benefits of the project towards themselves. In this project, the sponsorships can be divided
into three main categories which are financial sponsor, material sponsor and manpower
sponsor.
Figure 3: Manpower Sponsorship

Firstly, manpower sponsor provided by Goh Ah Lek Enterprise. Since this
construction project requires large number of workers for the task activity and the project
team are lack of workers, so Goh Ah Lek Enterprise provide labor that allow to work in this
project. The labors provided by GAL Enterprise are all expert in construction area and their
salary also in acceptable range. For example, the workers have many experiences in
plastering the wall of the building.
Figure 4: Financial Sponsorship

Apart from that, financial sponsor is provided by Meta Company. The construction
project requires at least one-billion Ringgit Malaysia to initiate due to the new technology
and urban location which is at Bandar Sungai Long, Kajang. Since Meta Company have good
relationship with Starbucks Company, so it gives financial support to the Starbucks to build
the first Unmanned Coffee Shop in Malaysia. With the financial support from Meta Company
and the money lent from the bank, the construction project can be initiated and carried out
smoothly.
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Figure 5: Material Sponsorship

In addition, material sponsor by the YTL cement and Ikea Malaysia. YTL cement
sponsor quarter of the cement required for the construction process. YTL cement not only is
the sponsorship of the project, but also the supplier of this project. All the building materials
are bought from YTL cement since the product quality is satisfied for that company. Ikea
Malaysia provide some furniture such as tables and chair to the Unmanned Coffee Shop that
allow customer to enjoy their beverage comfortable.
4.2 Major Stakeholders

Stakeholders Role in the Project Impact on the Project
Internal Project Manger o To monitor and ensure the High Impact
entire project is in accordance
with the contract document.
o To ensure the project is
completed within the time
given.
Project o To construct the coffee shop by High Impact
Construction using their technical skills and
Team ensure the process is smooth.
Support Staff o To give the support on human Medium Impact
resources during the project to
ensure the project can be done
within the time given.
Sponsors/ o To provides the resources in High Impact
Funders terms of equipment, moneys
and materials for the
construction work.
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External Client o Starbucks High Impact

o To give the instruction and the
whole project require to fulfill
their requirement.
Media o To spread the information High Impact
about the project to let more
people know about the coffee
shop.
o To advertise the project via
social media platforms such as
Facebook, Tiktok and
Instagram.
Suppliers o To supply the materials and Medium Impact
devices required to build the
coffee shop through the
business.
Customers/ End- o Residents and workers around High Impact
Users the area.
o To spend on the products after
the coffee shop is launched.
Associations o Siemens Company High Impact
o To provide technology for the
system inside the coffee shop
to make the entire business
become automated and does
not require manpower.
Creditor o CIMB Bank Berhad High Impact
o Lent money to the client to
allow the construction project
to have enough money to be
carried out.
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5.0 Market Analysis

5.1 Target Market
Unmanned Coffee Shop is a Starbuck coffee shop that serves with many different types of
premium coffees such as latte, americano, espresso and cappuccino. The price ranges for the
beverages are around RM10. Other than that, the coffee shop also provides cakes and some
desserts with the affordable price ranges which are between RM 5 to RM 10. The target
market of the construction of Unmanned Coffee Shop is on the residential, UTAR students
and staffs. Not only that, the location of the coffee shop also consists of many tuition centers
such as TTC education and also secondary school. Therefore, the coffee shop might be the
choice for the students to make the assignment discussion and rest at a comfortable
environment. Besides, the residents at Sungai Long can purchase the beverage on the way to
work to start the day with a delicious coffee. Since the coffee shop is the first Unmanned
Coffee Shop in Malaysia, so this will be the attractive point to the people around this area to
spend on this coffee shop. According to the Weekend Plan (2022), Starbucks Coffee is the
top coffee shop chain in Kuala Lumpur.
5.2 Competition
Figure 6: Main Competitors

The competition for the beverage is fierce due to many beverages shop in Sungai Long area
such as MiXue, Chagee, ZUS Coffee, Tealive, and Costa Coffee. Since every shop have its
own and constant customers, so it is a challenge for the coffee shop to get the customers and
operate the business. However, the main competitors for the Unmanned Coffee Shop are ZUS
coffee and Costa Coffee because both of them provide same types of beverages which are
coffee. The competitors’ features and weaknesses are list at the table.
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Table 3: Features and Weaknesses of the Competitors.
Competitors Features Weaknesses

MiXue The prices for the beverages and ice The beverages and ice cream
cream are very cheap and affordable does not have many choices.
for all the students.
Chagee The environment for the shop is very The price for the beverages is
comfortable and there are many very expensive which is
special drinks are introduced. around RM 15 per cup.
Tealive The choice for the beverages is very Less special drinks
wide which is from milk tea to coffee introduced where the menu is
and the prices also affordable. fixed for over many years.
ZUS Coffee The environment is comfortable, and The price is still expensive
many promotions is provided. and the coffee tastes flat.
Costa Coffee The quality coffee is fine, and the The location of the coffee
price is affordable. shop placed beside oil station
and the place is small.
5.3 SWOT Analysis

SWOT analysis is a basic framework that is used to develop a strategic planning and also
evaluating a project. It assesses the current and future potential of the project as well as the
internal and external factors that will affect the project. It helps to determine the terms which
is beneficial to the project or will be a threat to the project. Thus, SWOT analysis will allow
the project to maximize its profit and minimize the failure or problems occurs throughout
whole construction project.
Strength:
For the construction project, the planning team and construction team are reputable and have
many experiences for the construction project. For example, the team had completed the
construction of first unmanned convenience store in Malaysia. Then, the team had cooperated
for a fifteen-year period and so there is no problems exist between the members. The team
consists of a broad range of specialist and experts that will help the construction project to be
carried out successfully. The client of the coffee shop is Starbuck and thus the reputation of
the coffee shop is good due to the brands and have recognition with customers. In addition,
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the coffee shop located at a suitable area, and it provides premium quality of the coffee and
cakes with affordable prices.
Weaknesses:
For the construction project, there are many public holidays during the construction period
which will cause delay of the project. Then, the project only can be carried out at weekdays
because the area does not allow any construction at weekend due to the location near the
residential area at Sungai Long. Lack of the budget and the increment of the building material
cost due to the increase of the demand for cement and blocks. The technology used for the
coffee shop is still new and required several tests.
Opportunity:
The team have been working hard to find the sponsorship to accommodate the initiation
modal for the project. Meta Company have good relationship with Starbuck will help to
advertise the project to the public. The coffee shop applies new technology which will be the
attractive point of the business and attract many customers to have a look on the new
technology. The location of the coffee shop consists of many potential customers which are
students and residents in Sungai Long. They can rest or have a meeting at the coffee shop.
Threats:
For the construction project, the workers might sudden absence due to the private issue will
become the threats of the project because the project might not be completed on time. Besides
that, technical difficulties also are the threats during the construction. For the Unmanned
Coffee Shop, the problems might exist due to the technology is still new and the problems
cannot be solved quickly because there are no people on duty at the coffee shop. Moreover,
the beverages business in Sungai Long is fierce due to many beverage shops as the
competitors to the Unmanned Coffee Shop. Then, the customers might change to other shop
due to the promotion and new items of other beverages shops.
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6.0 Project Planning

6.1 Project Time Estimation
EXPECTED
OPTIMISTIC PESSIMISTIC MOST LIKELY
PHASE TASK TIME (TE)
(O) (DAYS) (P) (DAYS) (M) (DAYS)
(DAYS)
Planning Design of Building and
60 100 80 80
Technology
Details Drawing 6 15 10 11
Budget and estimating 3 8 5 6
Approvals 2 5 3 4
Building and Foundation 20 30 25 25
Structure Interior 60 90 70 72
Exterior 10 25 15 16
Finishes Floor Tiling 5 15 10 10
Painting 4 9 6 7
Furniture 2 6 4 4
Utilities Electricity 2 8 5 5
Lighting 3 9 6 6
Drainage System 5 15 8 9
Technology Cashier System 1 3 2 2
System Coffee Brewing System 5 18 12 12
Packaging System 2 9 6 6
Budget and Cost Accounting 3 7 4 5
Quality Resources Management 2 6 3 4
Site Inspection 5 10 8 8
Contract Compliance 2 7 4 5
Closeout Site Clean up 1 4 2 3
Equipment
1 3 2 2
Demobilization
Final Inspection 1 5 4 4
Document Handover 1 6 3 4
Remarks:
Expected time is rounded up.
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6.2 Gantt Chart
19
20
21
22
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7.0 Resources Allocation and Project Budget

7.1 Material and Resources
The process of bringing an Unmanned Coffee Shop to life relies on carefully selecting
and seamlessly integrating an array of materials and resources. These components encompass
a wide spectrum, ranging from foundational building materials to intricate mechanisms that
drive the automated systems. Collectively, these elements propel the overarching vision
forward.
The evolution of the Unmanned Coffee Shop unfolds through distinct stages,
encompassing the establishment of a strong foundation, interior design, technological
infrastructure, exterior landscaping, and final embellishments. Throughout these phases, the
meticulous selection of materials plays a pivotal role in shaping the ambiance, functionality,
and aesthetic appeal of the coffee shop.
The foundation serves as the cornerstone of structural integrity, and in this phase, key
confirmed materials include:
• Steel Rebar (diameter of 25mm, standard length 12m): These robust structural pillars
form the foundation, ensuring unwavering stability and enduring strength for the
coffee shop's framework (CRSI: Concrete Reinforcing Steel Institute, n.d.).
• Reinforced Concrete Foundation: Analogous to a coffee cup's base, this fortified
concrete foundation guarantees stability and resilience.
• Concrete Blocks: These fundamental building blocks shape walls and partition spaces,
defining the layout of the coffee shop.
The essence of any coffee shop lies in its interior design. The confirmed materials that
contribute to the ambiance and allure of the coffee shop's interior encompass:
• Wood Flooring (Light parquet texture seamless 17627): Wood flooring infuses the
space with warmth and sophistication, creating an inviting and comfortable
atmosphere (Flowers, n.d.).
• White Wall Paint (Sherwin-Williams Snowbound SW 7004): The application of white
paint generates a clean and inviting atmosphere, visually captivating customers and
enhancing their overall experience. (Mouton-Brisse, 2022)
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• Glass Windows (Toughened Glass): Transparent glass windows serve as a visual link
between the interior and the surroundings, allowing customers to enjoy outdoor views
and fostering a sense of openness.
• Polished porcelain Tiles: These durable and water-resistant tiles are an ideal choice
for covering walls, especially in areas like restrooms and the brewing space.
At the heart of the Unmanned Coffee Shop lies its technological prowess, achieved through
the seamless integration of confirmed materials. The synchronized system of automated
machines, robots, and ordering systems operates tirelessly around the clock, ensuring swift
and accurate order processing and preparation (Hogarth, 2014)
• Automatic coffee machine (NESPRESSO)
• Robots for cleaning and serving (Teksoft)
• Ordering system (StoreHub)
Moreover, an inviting outdoor garden offers a serene space for customers, with lush
landscaping elements, plants, trees, and seating contributing to its inviting ambiance. Reliable
water supply company, Air Selangor, also in charge to ensure a reliable water supply and
effective drainage system for the smooth operation of an Unmanned Coffee Shop.
The final stage encompasses distinctive elements that define the coffee shop's
character. Thoughtfully positioned lighting fixtures enhance the ambiance, creating an
inviting and captivating atmosphere. The furniture, including chairs and tables designed by
IKEA, is arranged to create a comfortable and welcoming environment.
Materials and resources list for construction of Unmanned Coffee Shop is shown in
TABLE 7.1
TABLE 7.1: Material and Resources

No Items Units Cost/Unit (RM) Total Cost (RM)
1.0 Foundation and
Building Phase
(Sponsored quarter by
YTL cement)
1.1 Steel Rebar (diameter 35 3,910.30 136,860.50

25mm)/tonne
1.2 Reinforced Concrete 1500 22.50 33,750
Foundation/50kg
1.3 Concrete Blocks (100mm × 32,000 0.80 25,600
200mm × 400mm)
25
(Sponsored) (49,052.63)
Total cost 147,157.87
2.0 Interior Design
2.1 Wood Flooring tiles (Light 30 80.20 2,406.00

parquet)/m2
2.2 White Paint (SW 7004), 2 150.50 301.00
20 L
2.3 Toughened Glass (for 2 120.30 240.60
windows)/m2
2.4 Polished Porcelain Tiles 800 1.90 1,520.00
(300mm × 600mm)
Total cost 4,467.60
3.0 Technological
Integration
3.1 Automatic Coffee Machine 3 12,800.10 38,400.30
(NESPRESSO)
3.2 Cleaning and Serving 2 7,900.60 15,801.20
Robots (Teksoft)
3.3 Ordering System (StoreHub) 1 1,500.00 1,500.00
Total cost 55,701.50
4.0 Coffee Ingredients
4.1 Espresso (1kg) 10 100.00 1,000.00
4.2 Coffee powder (0.5kg) 15 120.00 1,800.00
4.3 Chocolate powder (1kg) 5 70.00 350.00
4.4 Fresh milk (1 L) 100 8.00 800.00
4.5 Condensed milk (1kg) 50 7.00 350.00
4.6 Plastic cup 12oz. (1000 10 50 500.00
pieces)
4.7 Plastic cup 160z. (1000 10 70 700.00
pieces)
4.8 White Sugar (5kg) 5 5.50 27.50
4.9 Brown Sugar (5kg) 5 7.00 35.00
Total cost 5,562.50
5.0 Exterior Landscaping
5.1 Flowers seedlings 20 1.50 30.00
5.2 Trees seedlings 6 4.50 27.00
5.3 Artificial grass 20 17.00 340.00
landscaping/m2
5.4 Swing 1 280.30 280.30
Total cost 677.30
6.0 Sanitary fixtures
6.1 Sinks 2 79.50 159.00
6.2 Toilet seat 5 230.00 1,150.00
Total cost 1,309.00
7.0 Furniture (IKEA)
(Sponsored quarter by
IKEA)
7.1 Lighting Fixtures 12 136.50 1,638.00
7.2 Coffee Tables 11 60.00 660.00
7.3 Large Table 2 230.00 460.00
7.4 Small Table 3 180.50 541.50
7.5 Outdoor Table Set 2 320.70 641.40
26
7.6 Chairs 30 25.55 766.50

7.7 Sofa 4 160.65 642.60
7.8 Door 1 310.35 310.35
7.9 Water dispenser 1 320.50 320.50
7.10 Air conditioner 5 270.00 1,350.00
(Sponsored) (1,832.71)
Total cost 5,498.14
Total Cost from task 1 to 220,373.91
task 7
7.2 Budget of the Project

The estimated budget of project of construction of Unmanned Coffee Shop is found to
be RM557,885.91 after the deduction of sponsorship.
Table 7.2 Project Budget
Particulars Materials Labor Fixed Cost Total Cost

(RM) (RM)
Total
Total Cost Cost per
Days Cost
(RM) Day (RM)
(RM)
1.0 Planning and Administration
1.1 Design and Architectural - 92 674.30 62,035.60 10,500 72535.60

Rendering
1.2 Plans and Drawing - 32 900.70 28,822.40 7000 35822.40
1.3 Business Licenses - 20 500.30 10,066.00 - 10,066.00
1.4 Approvals - 36 720.50 25,938.00 - 25,938.00
Total Cost Task 1 - 126,862.00 17,500 144,362.00
2.0 Construction phase
2.1 Foundation and Building 196,210.50 20 1258.00 251,600.00 - 447,810.50

0
(Sponsored by YTL cement and (49,052.63) (62,900.00) (111,962.63)
Goh Ah Lek Enterprise)
Total Cost Task 2 147,157.87 188,700.00 - 335,847.87
3.0 Interior Design
3.1 Flooring 2,406.00 3 400 1,200 - 3606.00
3.2 Window installation 240.60 3 400 1,200 - 1440.60
3.3 Porcelain tiles installation 1,520.00 2 400 800 2,320.00
3.4 Painting 301.00 3 400 1,200 1501.00
Total Cost Task 3 4,467.60 4,400 - 8,867.60
4.0 Sanitary fixtures installation
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4.1 Sinks installation 159.00 1 150 150 - 309.00
4.2 Toilet seat installation 1,150.00 1 250 250 - 1,400.00
Total Cost Task 4 1,309.00 400 - 1,709.00
5.0 Machine installation
5.1 Automated coffee machine 38,400.30 7 11,200.00 78,400.00 - 116,800.30
5.2 Robot 15,801.20 7 120,801.20

15,000.00 105,000.00
5.3 Ordering system installation 1,500.00 7 900.00 6,300.00 - 7,800.00
Total Cost Task 5 55,701.50 189,700.00 - 245,401.50
6.0 Exterior design
6.1 Artificial grass landscaping 340.00 - - - 200.00 540.00
6.2 Plantation 57.00 - - - 120.00 177.00
6.3 Swing installation 280.30 - - - 50.00 330.30
Total Cost Task 6 677.30 - 400.00 1,047.30
7.0 Utilities installation
6.1 Electrical - 4 400 1,600 500.00 2,100.00
6.2 Watering - 3 400 1,200 500.00 1,700.00
Total Cost Task 7 - 2,800.00 1,000.00 3,800.00
8.0 Finishing
8.1 Furniture installation 7330.85 3 400 1,200 - 8,530.85
8.2 Ingredients placement 5562.50 3 400 1,200 - 6,762.50
(Sponsored by IKEA) (1832.71)
Total Cost Task 8 11,060.64 2,400.00 13,460.64
9.0 Close-up
9.1 Cleaning - 2 500.00 1,000.00 250.00 1,250.00
9.2 Final inspection - 2 800.00 1,600.00 - 1,600.00
9.3 Handover - - - - 500.00 500.00
Total Cost Task 9 - 2,600.00 750.00 3,350.00
Total Cost 220,373.91 517,862.00 19,650.00 757,885.91
(META Sponsorship) (200,000)
Overall Total Cost 220,373.91 517,862.00 19,650.00 557,885.91
28
8.0 Risk and Risk Management
The process of identifying, evaluating, and mitigating or preventing risks that might occur
throughout the life of a project is known as risk management in project management. There
are a total of 4 essential steps of the risk management process. They are risk identification,
risk quantification, risk response and monitor and review. Firstly, identifying any occurrence
that could potentially have a negative (risk) or good (opportunity) impact on the project's
goals such as the project milestones, the project's financial trajectory, and the project's scope
is the first stage in the risk management process. Secondly, risk quantification (Step 2) is the
process of analyzing recognized risks to generate information that can be used to determine
how to respond to the related risks. Thirdly, the process of generating strategic options and
deciding on measures to improve opportunities and lessen threats to the goals is known as
risk response. Last but not least, to monitor is to continuously evaluate what has been done,
and to review is to periodically evaluate how well risk response has worked. Risks include
any circumstance that could have an impact on the project's performance, timing, or budget.
Therefore, risk analysis and management are always a critical part of project management to
ensure that the project is constantly on time and able to achieve its goal successfully (Ray,
2021).
Once potential risks are identified, they are examined to ascertain their quantitative
and qualitative impact on the project so that appropriate mitigation strategies can be put in
place. Quantitative utilises objective data instead than relying on a quantitative number while
qualitative in the other hand uses the subjective data. In order to analyze risks, we need to
examine their probability of risks occurrence, their impact, and the danger zone of the risks
(Gonzalez, n.d.).
In terms of probability, "high" indicates there is a greater than 60% chance that the
risk will occur; "medium" means there is a more than 20% chance that the danger will
materialize; and "low" means there is a lesser than 20% chance that the risk happens. The risk
impact will also be graded as High, Medium, or Low. High denotes a risk that will
significantly affect the product's functionality, delivery schedule, or price. Medium denotes a
slight adjustment to the project, budget, or schedule. Low risk products have little or no
likelihood of changing in terms of performance, cost, or schedule. Risks with high or medium
29
ratings fall into the danger zone, whereas risks with low or medium ratings fall into the safer
zone.
After that, we must take action in response to the risks after recognizing and analyzing
the risks. A risk response strategy that aims to avoid, mitigate, or accept risks that fall within
the danger zone is essential. The primary cause of the dangers is removed for avoidance.
Additionally, the word "mitigate" refers to the action of lessening the likelihood that a risk
may materialise or its effects. We accept and acknowledge the risks, but we wait to act until
those risks manifest. To meet the objectives and effectively finish the project, the team
members must brainstorm and work together to identify, analyse, and resolve the risks (Anon,
2023).
8.1 Potential Risk
Table 8.1: Risk Identification
Risk Probability Impact Danger

Zone
Inaccuracy in Estimating the Cost Medium Medium No
Maintenance and Repairs High High Yes
Security Concerns High High Yes
Customer Dissatisfaction High High Yes
Equipment Malfunctions Medium Medium Yes
Data Privacy Low High Yes
Legal and Regulatory Compliance Medium High Yes
Limited Flexibility Medium Medium No
Quality Control Low Medium No
Unforeseen Situations Low High Yes
Competitor Response Medium High Yes
Supply Chain Delay High High Yes
30
8.1.1 Inaccuracy in Estimating the Cost

Forecasting mistake may lead to inaccurate cost and material estimations. The financial
stability aspect, such as the utilization of incomplete data, is one of the elements that affect
cost estimation. This is said so if the costs are underestimated, the business may not have
enough funds to cover expenses, leading to financial instability and potential closures.
Additionally, the cost of materials, labor, or equipment may fluctuate from time to time due
to the inflation factor, which is another source of inaccurate estimation. Overestimating or
underestimating costs results in inadequate resource allocation and unexpected expenses,
which eventually affect operational efficiencies, deteriorated customer service, and
productivity. Furthermore, underestimating costs could result in pricing coffee too low, which
would diminish profit margins and make it impossible to continue operating the business. At
worst, it will lead to bankruptcy of the coffee shop (Coffee Shop Startups, 2017).
8.1.2 Maintenance and Repairs

An Unmanned Coffee Shop is a coffee shop whereby all the duty is done by robots and
machines. As a result, there may not be much oversight if there are lack of on-site
human present. This makes it difficult to spot maintenance problems or malfunctions right
away, which can cause issues like equipment breakdown or maintenance issues to get worse
before they are fixed. In other words, it will cause a lapse in service. The coffee shop cannot
serve customers during this time, which results in lost sales and possible reputational harm to
the company. In addition, Unmanned Coffee Shops rely largely on sophisticated equipment
and technology. Specialized experts are urgently needed for repairing or replacing such
equipment, which may need specialized knowledge and parts, prolonging downtime and
increasing repair costs, especially if technological malfunctions or cyberattacks happen
regularly.
8.1.3 Security Concerns

Security concerns can pose significant risks to the Unmanned Coffee Shop. Without on-site
staff, the store may be subject to theft, vandalism, or unauthorized access, which endangering
the premises, inventory, and equipment. This is said to be the case due to the lack of staff,
which makes the store an easy target for thieves and vandals. Thieves can commit theft by
targeting the equipment, supplies, and valuable items inside the coffee shop, while vandals
secretly damage the property or the interior décor. On top of that, unmanned businesses rely
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primarily on automated payment systems that may be vulnerable to fraud or hacking, which
might result in financial losses for the company as well as a loss of client confidence. Hence,
this will damage the reputation and image of the company (Tode, n.d.).
8.1.4 Customer Dissatisfaction

Customer dissatisfaction can be an extreme risk when running an Unmanned Coffee Shop
because it may be difficult to resolve problems quickly in the absence of human workers.
Customers may become irate and leave, possibly as a result of ineffective or malfunctioning
technology, incorrect orders, a lack of personalization, and a lack of human interaction. As an
illustration, an Unmanned Coffee Shop loses the personal touch of human interaction, making
it more difficult to address customer concerns, resolve issues, or accommodate specific
requests. Frustration and dissatisfaction may result from this impersonal encounter.
Additionally, negative word-of-mouth reviews have the potential to spread swiftly and harm
the reputation and long-term profitability of the coffee shop (Afzal, n.d.). This is stated to be
the case when automated systems misinterpret consumer orders or when programming errors
result in wrong items being served. Because they had to wait for a coffee for roughly 15
minutes but ultimately didn't receive the right drinks that they had ordered, the client will be
disappointed and dissatisfied.
8.1.5 Equipment Malfunctions

It is possible for equipment to fail at any time throughout the activity. Because our
Unmanned Coffee Shop is open 24 hours a day, seven days a week, the machines function
around the clock. As a result, equipment malfunctions are widespread. Malfunctions can
cause unanticipated downtime, disturbing the usual flow of business and generating order
processing delays. As a result, an incident could occur. By giving you an example, one robot
barista at Punggol Hawker Centre malfunctions which causes it to pour coffee dramatically
onto ground (Chua, 2023). Due to the delay caused by equipment breakdowns, resulting in
equipment glitches and incorrect drink preparation. Conversely, cause dissatisfaction of
customer and frustration among customers who expect efficient and reliable service from
automated system. The project's progress will be hampered by equipment failure and a fall in
production. Expensive maintenance and component replacement may also cause the project
to go over budget.
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8.1.6 Data Privacy

Due to the acquisition of consumer personal information for transactions, which, if
mishandled or compromised, could lead to breaches, loss of assurance, and legal
ramifications, data privacy becomes a possible problem for Unmanned Coffee Shops. This is
because Unmanned Coffee Shops frequently need customers to supply personal information
for order processing and payment, raising worries about how this information is handled and
used. When adequate safeguards are not in place, customer data might be subject to hackers
or unauthorized access, potentially resulting in sensitive information breaches (Phillips, 2022).
Concerning your information, Unmanned Coffee Shops typically rely on third-party vendors
for data storage or processing, which introduces additional parties who may potentially
mishandle the data and pose a risk of compromising the customer's financial information
when customers enter payment details into automated systems to purchase a coffee. As
consequence, the customer trust in the coffee shop's operations diminishes.
8.1.7 Legal and Regulatory Compliance

Legal and regulatory compliance can become a potential risk for operating an unmanned
coffee shop due to some factors. First of all, automated coffee shops may lack direct human
supervision, raising issues about health and safety regulations. To name a few examples,
accidents, food safety breaches, or inadequate hygiene, could result in legal penalties. In
contrast, the proprietor of the shop will be fined, or the shop will be shuttered for up to one or
two weeks for poor hygiene (Anon, 2022). Aside from that, coffee shops are normally
required to have a variety of licenses and permits in order to operate, such as health permits,
business licenses, and food handling certifications. Failure to get and maintain these permits
may result in legal consequences. Furthermore, if the coffee shop uses automated transaction
systems, it must assure transparent pricing, accurate product descriptions, and fair
refund policies to avoid breaking consumer protection regulations. Finally, exploiting
copyrighted content, trademarks, or branding without sufficient license could result in
intellectual property challenges.
8.1.8 Limited Flexibility

Limited flexibility might be an issue for an unmanned coffee shop since it limits its capacity
to adjust to changing market conditions. For example, if a coffee shop cannot adapt its menu
to include popular seasonal beverages such as pumpkin spice lattes during the fall season, it
may miss out on attracting customers looking for trendy flavors, resulting in decreased sales
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and customer dissatisfaction (Kanniah, 2022). However, it also limits its ability to quickly
integrate innovative technology such as contactless payment systems, possibly alienating
tech-savvy customers who prefer convenient and secure payment options. As a result, due to
its inability to align with evolving consumer preferences, industry trends, and compliance
requirements, the unmanned coffee shop is at a competitive disadvantage compared to other
coffee shops that readily embrace these advancements, ultimately stunting the unmanned
coffee shop's growth potential and limiting its market share.
8.1.9 Quality Control

Quality control becomes a potential risk when operating an unmanned coffee shop due to the
absence of human oversight, which can lead to inconsistent product quality, equipment
malfunctions, and customer dissatisfaction. In the absence of skilled baristas, there's a higher
chance of improper preparation of beverages, resulting in taste variations and dissatisfied
customers. Without prompt human involvement, machinery like coffee makers or automatic
milk frothers could malfunction, disrupting business operations and possibly affecting the
consistency of the final product. For example, if a coffee maker isn't kept up with, it can
generate drinks with different intensities and flavours, irritating consumers who count on
consistency. Furthermore, issues with ingredient replenishment, like running out of certain
types of milk or syrups, can result in incomplete or incorrect orders. Well, even though
machine can produce as much as the same coffee that we brew but humans have something
that machines don’t taste (Malone, 2017).
8.1.10 Unforeseen Situations

Due to their unpredictable nature and the absence of immediate human intervention, these
situations can be ranged from technical malfunctions to unexpected customer behavior which
lead to operational disruptions and compromised the product quality. For instance, a sudden
software error that affects temperature control on the coffee machine could result in irregular
brewing and subpar beverages. Similar to this, if there is no backup generator and there is a
power outage, the entire business could shut down, which would be unsatisfactory to the
customers. Unpredictable behavior from customers is still another one. There is no human
staff on duty to respond quickly if a consumer spills a drink or makes a mess at the automated
kiosk. In the meanwhile, some staffs also being verbally abused or physically assaulted by
customers and the shop owner over not cleaning up the mess caused by the customers. As a
34
result, subsequent customers may have a bad experience and the coffee shop's reputation may
suffer.
8.1.11 Competitor Response
The most common competitor for unmanned coffee shop is the traditional-styled coffee shop.
Traditional coffee shops might adapt to changing market dynamics, potentially affecting the
unmanned shop’s competitiveness. For example, competitors might emphasize personalised
service and human interactions, by highlighting the benefits of having staffs to take orders,
answer questions and create a more welcoming atmosphere. Besides that, traditional shops
might emphasize on the community engagement such as hosting events, workshops, or
gatherings. This help to foster a sense of community and human connection where they use
the opportunities of the unmanned coffee shop in lack of human interaction. This could
resonate with customers seeking a more traditional coffee experience (UNIDUC, n.d.). Lastly,
competitors might use marketing campaigns to emphasize the emotional and social aspects of
enjoying coffee in a human-driven environment and they also might offer promotions,
discounts, or loyalty programs to attract customers.
8.1.12 Supply Chain Delay

Supply chain delays can pose significant risks to operating an unmanned coffee shop due to
their potential to disrupt inventory management, customer satisfaction, and revenue streams.
For instance, if the delivery of coffee beans is delayed, the store may run out of stock,
resulting in dissatisfied consumers and lost sales opportunities. This situation is getting worse
when there is no staff to explain or address the delays where the customers may lose trust in
the shop's reliability. Customers may become even more irritated if other necessary things
like milk or pastries take longer than expected to arrive at the shop. Customers may consider
the shop as unreliable as a result of these delays and causing them to choose the competitor
instead, which could harm its reputation and loss of profit.
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8.2 Risk Management

Table 8.2.1: Inaccuracy in Estimating the Cost
Risk Probability Impact Danger Zone
Inaccuracy in Estimating the Cost Medium Medium No
Management - Mitigate
Before opening a coffee shop, the team member should always undertake in-depth study to
acquire precise information about every aspect of the Unmanned Coffee Shop, including
location, size, equipment, furnishings, and operational requirements. The next step is to
conduct a market analysis before developing a budgeting plan that accounts for all potential
expenditures, including those for construction and equipment as well as utilities, permits, and
marketing. Team members should use another advance strategy, such as purchasing materials
during promotions or taking advantage of purchase discounts, when expenses exceed the
budget. Additionally, money needs to be set aside to buy back up materials in case the
original ones break down. Last but not least, to obtain a better idea of potential costs, consult
professionals in the industry including operators of Unmanned Coffee Shops, architects, and
constructors.
Table 8.2.2: Maintenance and Repairs

Maintenance and Repairs High High Yes
Management - Mitigate
Team member should establish a proactive maintenance schedule for all the equipment. With
a thorough proactive plan, we can routinely examine and service the equipment to avoid
breakdowns and spot the possible problems before they are getting worse vary from time to
time. Furthermore, because of automated machines are run continuously straight for 24 hours,
we may invest in high-quality equipment known for durability, reliability, and
longer lifespan. Although they are more expensive than standard models, well-built
machinery typically needs fewer replacements and maintenance. As a result, this can reduce
the maintenance cost, prevent equipment downtime and improve overall efficiency (Admin,
n.d.). In addition, we can have a supply of key spare parts on-hand to address routine
malfunctions right away without having to wait for replacements and training for staff
members play an important role in keeping the machine in good condition. When a staff
member visits the shop for routine inspections, we can engage a skilled technician to provide
36
them full training so they can recognize and report problems accurately (Christiansen, 2021).
Table 8.2.3: Security Concerns

Security Concerns High High Yes
Management – Avoid
We can prevent our customer’s information from leaking out to the hackers by installing the
cybersecurity such as Firewalls. Network security programs called Firewalls, where it can
monitor and censor network traffic. They can be modified to follow your security guidelines,
allowing only authorized traffic, and preventing unsafe or undesirable traffic. By installing
the Firewalls, the hackers can’t hack the customer’s information through the Wi-Fi network
installed in the coffee shop (Rollins, 2022). In addition, to monitor and secure the premises,
we can also use alarms, access control systems, and surveillance cameras. This is suggested
so that surveillance systems can work with security alarms to send alerts in the case of an
unauthorized entrance, motion detection, or other suspicious activity. These warnings can be
delivered to the owner, security guards, or a monitoring center for prompt action (Habas,
2023). Hence, with the aids of surveillance cameras, alarms, and access control systems, the
security of the Unmanned Coffee Shop can be guaranteed.
Table 8.2.4: Customer Dissatisfaction

Customer Dissatisfaction High High Yes
Customers have a significant impact on whether a company succeeds or fails. According to
certain businessmen, as they often say, "the customer is always right." As a result, client
feedback can be used as testimonials and endorsements, so increasing a company's
reputation. To begin, we should collaborate as a team to ensure that self-service kiosks,
payment systems, and other technologies are well-maintained, routinely updated, and capable
of handling huge volumes without malfunctions. Furthermore, provide clearer and more
intuitive directions for customers to properly manage the self-service process. Meanwhile,
customer input and loyalty are critical to success. As an outcome, we should not only
37
encourage customers to provide feedback, allowing us to discover areas for development or

skills and solve issues as they arise, but we may also implement loyalty programs or special
offers to stimulate return visits and foster customer loyalty (Needle, 2022).
Table 8.2.5: Equipment Malfunctions

Equipment Malfunctions Medium Medium Yes
Management – Mitigate
To avoid the problem of equipment failure, a rigorous maintenance plan should be developed,
ensuring that all equipment is regularly inspected, cleaned, and serviced. Furthermore, in
order to benefit from bug fixes and performance enhancements, we must keep the software
and firmware up to date. Staff training is also important in preventing equipment problems. If
you have staff, make sure they are trained well and have basic skilled or knowledge about the
parts of the equipment so that they can be handling simple equipment problems and
doing minor repairs when they pay a visit to the Unmanned Coffee Shop. Finally, we must
maintain solid relationships with equipment providers not only to enable timely access to
replacement parts and technical support, but also to verify that all equipment is under
warranty and that employees could understand the requirements for repairs or replacements
(Silva, 2017).
Table 8.2.6: Data Privacy

Data Privacy Low High Yes
To begin, create a detailed privacy policy that explains how customer data will be gathered,
utilized, and protected. The policy defines the security procedures in place to protect the data
and highlights the rights of customers have over their information, such as the option to
access, correct, or delete it, in cases where this can help to create trust between the customer
and the company. Aside from that, we gather just the required customer data for transactions,
such as the customer's name, contact number, and payment credentials, and we ensure that no
unnecessary information is stored. Last but not least, by implementing Vendor Due Diligence
38
(VDD), we may reduce the risks associated with providing customer data to the third-party
providers. VDD will identify the suppliers who will have access to customer data and then
assess the risks associated with these vendors, such as data breaches, noncompliance with
privacy legislation, or insufficient security measures. Following that, VDD will develop a
questionnaire to collect information from vendors on their data privacy and security practises
in order to ensure effective data protection and the establishment of robust contractual
agreements. Finally, throughout the business, it will continually monitor the vendor's
performance and security practices (Angert, 2020).
Table 8.2.7: Legal and Regulatory Compliance

Legal and Regulatory Compliance Medium High Yes
Before starting up a business, we must do as much as research as possible so that we
understand the law and regulation of the country. Before open an unmanned coffee shop, we
can develop policies and procedures. By giving an illustration, develop clear and detailed
rules and procedures that define how your unmanned coffee shop will handle various
compliance standards, such as food safety, data protection, accessibility, and more. It is
critical for establishing consistency in operations, preserving compliance, and minimizing
legal and regulatory risks. Furthermore, undertake a complete legal audit of the coffee shop's
operations to identify all applicable rules and regulations, such as health codes and data
protection legislation, and avoid using copyrighted content or trademarks without necessary
authority. Lastly, we must stay current by routinely monitoring changes in laws and
regulations that may affect the compliance needs of the coffee business. Staying informed can
assist us in adapting our practices as needed. (Esquires Coffee UK, 2021).
Table 8.2.8: Limited Flexibility

Limited Flexibility Medium Medium No
Risk management for limited flexibility in operating an unmanned coffee shop involves a
39
multifaceted approach. Firstly, we may develop a flexible and diverse supplier network that
makes it easier for us to locate and store in-season or trendy ingredients. To give you an idea,
we can collaborate with local farms for fresh produce or specialty suppliers
for unique flavors. With the aid of this plan, we able to adapt to changing market conditions.
Secondly, we can offer an alternative channel like their own branded name such as RC
Coffee. RC Coffee is a fully automated first robotic coffee café in Canada. RC Coffee had
their own branded app where its function is to actively seek and consider customer input
through surveys and app evaluations submitted by users. Moreover, RC Coffee app also has
the social media interactions amongst their customers which helped them better understand
their requirements and preferences, and they could utilise this knowledge to inform changes
to their new and forthcoming drinks. (RC Coffee, n.d.). Lastly, by creating backup plans for
various scenarios, such as unexpected shifts in demand or regulatory changes, and describing
the specific steps to take in each case, we may create a scenario planning.
Table 8.2.9: Quality Control

Quality Control Low Medium No
In order to avoid quality control for robot barista, we can implement regular maintenance
schedules, such as bi-weekly checks of automated coffee machines. This can assist in
locating and fixing technical issues before they have an impact on the quality of the beverage.
Additionally, we were able to track the temperature and brewing time spans of the robot
barista using real-time monitoring systems. These solutions enable us to alert workers in
situations of deviations. For instance, the system warns workers to take action if the milk
frother malfunctions and fails to produce the proper consistency of froth. Additionally,
contingency plans are crucial for maintaining quality control. This is suggested in order to
ensure smooth operations and preserve constant product quality in the event that the main
coffee machine breaks down. Thus, robot barista can regularly replicate different beverage
characteristics down to the smallest nuances using programmed personal preferences. The
amount of espresso shots, milk froth, or sweet syrup in a jar is always the same amount
(Rozum, n.d.).
40
Table 8.2.10: Unforeseen Situations

Unforeseen Situations Low High Yes
To deal with unforeseen incidents that can interfere with operations and jeopardize quality,
we can take proactive action. Contingency planning is a vital tactic. Creating detailed
protocols for various scenarios, such as power outages or equipment failures. These can
guarantee the production of a structured response. To give you an example, in the event of an
unexpected power interruption, operations can be seamlessly maintained until power is
restored using an automated backup power source (Kirvan, 2022). Implementing flexible
programming is another tactic aside from that. An automated system that monitors demand
can change the timetables for replenishing ingredients if it notices to be exceptionally high
demand at a certain period. Lastly, regular staff training able the staff to make decision
quickly and precisely during unforeseen situations. If a system malfunctions, trained staff can
troubleshoot remotely or guide customers through the ordering process manually.
Table 8.2.11: Competitor Response

Competitor Response Medium High Yes
To counter competitor response, the unmanned coffee shop could focus on its own unique
selling points, such as convenience, speed of service, innovative technology, and potentially
lower operating costs. For example, according to research done by expert, most robot baristas
can make more than 100 cups in an hour, while human baristas can make at least 60 cups per
hour where all the coffee being brewed are mostly the same (Caballero, 2022). This explained
that by using robotic barista, time and money both can be saved up compared to human
barista. In the side for innovative technology, we can use designing intuitive self-service
kiosks with clear instructions can help customers navigate the ordering process seamlessly
and let the customer to customize their own preference coffee. For instance, offering various
milk alternatives, sweeteners, and flavour choices allows customers to tailor their beverages
to their preferences. Continuously monitoring the market and adjusting strategies accordingly
will be crucial to maintaining a competitive edge.
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Table 8.2.12: Supply Chain Delay

Supply Chain Delay High High Yes
There are many solutions that can be used to prevent inventory management, customer
satisfaction, and revenue streams from getting disrupted by supply chain delay. Firstly, we
can diversify our suppliers not only for supplement but also for machine part or equipment. In
order to diversify suppliers, we have to establish clear communication channels with
suppliers which ensures timely updates. For example, regular updates on stock levels,
expected delivery dates, and any potential delays. Besides that, maintaining a safety stock of
critical items to act as a buffer against unexpected delays is an important plan. This helps
prevent stockouts and ensures customer orders can be fulfilled even during disruptions. This
is said so if one supplier encounters delays, having backup suppliers and safety stock would
prevent shortage and customer dissatisfaction, enabling the shop to continue
operations smoothly. Lastly, utilize historical data and predictive analytics to forecast
demand patterns. This helps optimize inventory levels and anticipate when supply chain
disruptions might occur. Hence, forward planning and managing delivery expectations are
important steps when dealing with supply chain delays (Yoong, 2021).
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9.0 Conclusion
9.1 Conclusion
An unmanned coffee shop is a retail concept in which all tasks are carried out by machines
and AI technology, with no workers or service personnel present. All transactions are carried
either online or through mobile applications. In contrast to the conventional old-style coffee
shop, the unmanned coffee shop concept eliminates the conventional aspects of the coffee
shop using smartphone-related technology and artificial intelligence. The main objective of
our project is to increase efficiency in order to serve drinks at least 25% faster than a typical
coffee shop without compromising the quality of meals while also creating a comfortable and
relaxing environment for customers to sit and enjoy the aromatic coffee that the machine
barista has blended. The project, which will begin on July 18 and be finished in six months, is
divided into five primary smart goals. They are specific, measurable, achievable, realistic and
timescale. Furthermore, market analysis has been done through the SWOT analysis where our
team had cooperated with experienced contractor and the location of the coffee shop is a
good location due to urban area. In addition, each stakeholder in this project has been
carefully analyzed and listed, along with their function. It has also been suggested that Goh
Ah Lek Enterprise, Meta Company, YTL cement and Ikea Malaysia serve as the project's
primary sponsors. Also, a clear and well-defined organization chart, work breakdown
structure (WBS), and linear responsibility chart are illustrated in order to finish the project
effectively and efficiently. All of the resources for materials, equipment needed in the phase
of interior design, technological integration, coffee ingredients, exterior landscaping, sanitary
fixtures, and furniture are addressed and suggested in the project budget. The expected
project cost, which includes personnel, material, and fixed costs, is RM557,885.91. To
completely avoid the chance of compromising the project schedule, budget, and performance,
all risk analysis and management strategies are proposed. With all the thought and analysis
put into the project by Chillex Construction Sdn. Bhd., it is projected that it will be
successfully finished and meet the needs of customers and end-users.
9.2 Recommendation
The requirement to identify project scop, project planning, budgeting, economic benefits,
ease of construction, scheduling impacts, and risks can make it difficult and time-consuming
to manage an unmanned coffee shop efficiently. Delivering a top-notch project to the
customer on schedule and under budget will undoubtedly benefit your business. Therefore,
43
there are certain tips that should be taken into account in order to have a perfect project and
match your customer's expectations.
Firstly, we as a team members should plan carefully and strategically. This is because
it takes a lot of time and money to build an unmanned coffee shop. Hence, in order for the
project to be performed within budget and in accordance with plan, it is essential to carefully
plan the project and define a detailed organizational chart. The project scope, including the
team members' tasks, objectives, and milestones, must be clearly defined. During the
planning process, it's also necessary to create a safety plan, a communication plan, an
assessment of the risks, and a response plan.
Secondly, when the construction process starts, the project manager must keep an eye
on the development to ensure that all of the activities are proceeding as planned. The root
reason of any project or activity delay must be found as soon as possible. A trustworthy
consultant is crucial for ensuring that all documentation is readily accessible and in place so
that the project runs well. In addition, a trustworthy and licensed supplier is especially
important because they keep the terms of the agreement and never put off finishing the
project. In order for the project to always stay on track, the project manager must take the
initiative to oversee the project, alter the plan, and seek solutions to issues.
Thirdly, establishing an effective communication tool, method, or system is essential.
This is due to the fact that effective team communication is crucial to preventing
miscommunication, delays, and additional costs associated with reconstruction or re-planning.
The team manager should explain the daily or weekly tasks to the team members, so they are
clear on their responsibilities. When issues arise, team members can talk to senior
management to gain a deeper understanding of the project and inspire new ideas. Open, direct,
and transparent communication is always necessary to complete a successful performance
assignment.
Lastly, early investment in planning, programming, and design can help to reduce
project costs and delays. New functionality must be developed to cover the expanded scope
when the scope triangle creeps. In this case, you have three options: add time by delaying the
project so you have more time to add functionality; add expense by purchasing high-quality
equipment to avoid frequent repairs and maintenance; or decrease quality by sacrificing some
non-essential needs in favor of the new ones. An excellent project manager will always
choose options that balance resources, quality, and time effectively.
44
10.0 References
Admin., n.d. Spare Parts Management: Best Practices and Techniques - MOSPART. [online]
Available at: <https://mospart.com/spare-parts-management-best-practices-and-
techniques/#:~:text=Properly%20managing%20spare%20parts%20can> [Accessed 12
August 2023]
Afzal, S., n.d. How do you measure the impact of negative reviews on your business
performance? [online] Available at: <https://www.linkedin.com/advice/3/how-do-
you-measure-impact-negative-
reviews#:~:text=According%20to%20research%2C%2094%25%20of> [Accessed 13
August 2023]
Angert, J., 2020. What is Vendor Due Diligence? - Vendor Centric. [online] Available at:
<https://vendorcentric.com/single-post/what-is-vendor-due-diligence/> [Accessed 14
August 2023]
Anon, 2022. What Could Poor Food Hygiene Cost Your Business? | Magna Food Health and
Safety. [online] Available at: <https://magna-fhs.com/what-could-poor-food-hygiene-
cost-your-business/> [Accessed 15 August 2023]
Anon., 2023. Risk Response Meanings and Purposes. [Online] Available at:<
https://financialcrimeacademy.org/risk-response-meanings-and-purposes/> [Accessed
11 August 2023].
Caballero, M., 2022. What Is a Robot Barista? Explained. [online] Available at:
<https://fullcoffeeroast.com/what-is-a-robot-
barista/#:~:text=Most%20robot%20baristas%20can%20make> [Accessed 16 August
2023]
Christiansen, B., 2021. How To Establish Strong Maintenance Training Programs. [online]
Available at:< https://limblecmms.com/blog/maintenance-
training/#:~:text=Benefits%20of%20maintenance%20training&text=Reduced%20pla
nned%20and%20unplanned%20downtime,failure%20in%20the%20first%20place.>
[Accessed 12 August 2023]
45
Chua, I., 2023. Robot barista at Punggol Hawker Centre malfunctions, pours coffee
dramatically onto ground. [online] Available at:
<https://mothership.sg/2023/05/robot-barista-punggol-malfunctions/> [Accessed 14
August 2023].
Coffee Shop Startups, 2017. Understanding The Costs of Starting a Coffee Shop (Explained)
| How to Open a Coffee Shop. [Online] Available at:<
https://coffeeshopstartups.com/the-true-costs-of-starting-a-coffee-shop-explained/>
[Accessed 12 August 2023].
CRSI: Concrete Reinforcing Steel Institute, n.d. Reinforcing Steel. [online] Available at:
<https://www.crsi.org/reinforcing-basics/reinforcing-steel/> [Accessed 14 August
2023]
Esquires Coffee UK, 2021. Coffee Shop Health and Safety Checklist. [online] Available at:
<https://esquirescoffee.co.uk/news/coffee-shop-health-and-safety-checklist/>
Flowers, J., n.d. 10 benefits of solid hardwood flooring. [online] Available at:
<https://www.build.com/benefits-of-wood-flooring/a21744> [Accessed 15 August
2023]
Gonzalez, Z., n.d. Qualitative Risk Analysis & Quantitative Risk Analysis. [online] Available
at:<https://safetyculture.com/topics/qualitative-and-quantitative-risk-
analysis/#:~:text=As%20mentioned%20earlier%2C%20qualitative%20risk>
Habas, C., 2023. What Is a Security System and How Does it Work? [online] Available at:
<https://www.safewise.com/home-security-faq/how-do-security-systems-work/>
Hogarth, T., 2014. The benefits of Automatic Coffee Machines, Cafe Corporate. Available at:
<https://cafecorporate.com.au/2014/07/benefits-automatic-coffee-machines/>
46
Kanniah, J.C., 2022. Designing an autumn menu for your coffee shop. [online] Available at:
<https://perfectdailygrind.com/2022/08/designing-an-autumn-menu-for-your-cafe/>
Kirvan, P., 2022. What is contingency plan? - Definition from WhatIs.com. [online] Available
at: <https://www.techtarget.com/whatis/definition/contingency-plan> [Accessed 16
August 2023]
Malone, A., 2017. Why Baristas Won’t Be Replaced by Robots (Yet). [online] Available at:
<https://machina-coffee.com/blogs/industry-perspective/why-baristas-wont-be-
replaced-by-robots-yet> [Accessed 16 August 2023]
Mouton-Brisse, S., 2022. Ask an expert: Should white be used in store design? Storefront.
[online] Available at: <https://www.thestorefront.com/mag/conseils-de-pro-faut-il-
utiliser-du-blanc-dans-une-boutique/> (Accessed 13 August 2023)
Needle, F., 2022. The Benefits of Customer Feedback, According to Experts. [online]
Available at: <https://blog.hubspot.com/service/benefits-of-customer-feedback>
Phillips, A., 2022. How Do Hackers Steal Credit Card Information? | TechTarget. [online]
Available at: <https://www.techtarget.com/whatis/feature/How-do-cybercriminals-
steal-credit-card-information> [Accessed 14 August 2023]
Ray, S., 2021. The Risk Management Process in Project Management. [Online] Available
at:< https://www.projectmanager.com/blog/risk-management-process-steps>
[Accessed 11 August 2023].
RC Coffee. n.d. RC Coffee. [online] Available at:

<https://www.rccoffee.com/#:~:text=FULLY%20AUTOMATED%20COFFEE%20K
IOSK%20%7C%20OPEN%2024%2F7&text=RC%20Coffee%20partners%20with%2
0the> [Accessed 15 August 2023]
Rollins, J., 2022. Top Cybersecurity Risks of Working from A Coffee Shop. [online] Available
at: <https://www.cloudnexusit.com/2022/08/09/cybersecurity-risks-of-working-from-
a-coffee-shop/> [Accessed 13 August 2023]
47
Silva, M., 2017. How To Empower Retail Employees with Technology. [online] Available at:
<https://www.shopify.com/retail/how-to-empower-retail-employees-with-technology>
Tode, A.C., n.d. Mobile payment data breaches to grow in the next 12 months: report | Retail
Dive. [online] Available at:
<https://www.retaildive.com/ex/mobilecommercedaily/mobile-payment-data-
breaches-to-grow-in-the-next-12-months-report> [Accessed 12 August 2023]
UNIDUC, n.d. Robots serving coffee shops with new technology and pros and cons. [online]
Available at: <https://uniduc.com/en/blog/robots-serving-coffee-shops-with-new-
technology-and-pros-and-cons> [Accessed 16 August 2023]
Weekendplan. 2022. Top 7 Best Coffee Shop Chains in Kuala Lumpur 2023. [online]
Available at: <https://www.myweekendplan.asia/top-8-best-coffee-shop-chains-in-
kuala-lumpur-2022/> [Accessed 12 August 2023]
Yoong, K., 2021. How can roasters prepare for disruptions to the coffee supply
chain? [online] Available at: <https://mtpak.coffee/2021/11/coffee-supply-chain-
disruptions-how-to-prepare/> [Accessed 17 August 2023]
48
11.0 Appendix
11.1 Meeting Minutes
49
50
51
52
11.2 Floor Plan
Water
Dispenser Sink Large
Table
Swing
Speaker
Flowers
Automated
Coffee Table Machine Trees
Robots
Chairs
Sofa Ordering
Machine
Toilet Outdoor
Table Set
Door Small
Table Self-service
Station
53
Floor Plan in 3D
54

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CHILLEX CONSTRUCTION Sdn. Bhd enquiry@chillex888.

UEME4253 / UEEP3413 PROJECT MANAGEMENT

ASSIGNMENT TITLE: (CONSTRUCTION OF UNMANNED COFFEE SHOP)

Academic Year/Session June 2023

Date of Submission 25/08/2023

Group Number Group 31

Student Name Student ID Year/Trimester Course

1. Chan Jia Quan 2002859 Y2S2 MH

2. Khoo Teck Leong 2005159 Y2S3 CL

3. Tan Wei Hong 2006041 Y2S3 CL

4. Yap Yong Chun 2005937 Y2S3 CL

5. Yee Yong Xian 2004855 Y2S3 CL

1.2 Project Definition and Background

2.0 Project Scope and Key Deliverables

2.2 Key Deliverables

3.0 Project Organization

Engineering Project Administration

Figure 1: Organization Chart of the Project

3.2 Project Team

Campbell University project services.

3.3 Work Breakdown Structure (WBS)

Figure 2: Work Breakdown Structure (WBS)

3.4 Linear Responsibility Chart

R = Responsible, S = Supporting, A = Approval Required, M = Monitoring

Table 2: Linear Responsibility Chart

Approvals Application for the approval A R S

Site Inspection Conduct site walkthrough M S R

4.0 Sponsorships and Major Stakeholders

Figure 3: Manpower Sponsorship

Figure 4: Financial Sponsorship

Figure 5: Material Sponsorship

4.2 Major Stakeholders

External Client o Starbucks High Impact

5.0 Market Analysis

Figure 6: Main Competitors

Table 3: Features and Weaknesses of the Competitors.

Competitors Features Weaknesses

5.3 SWOT Analysis

6.0 Project Planning

7.0 Resources Allocation and Project Budget

TABLE 7.1: Material and Resources

1.1 Steel Rebar (diameter 35 3,910.30 136,860.50

2.1 Wood Flooring tiles (Light 30 80.20 2,406.00

7.6 Chairs 30 25.55 766.50

7.2 Budget of the Project

Table 7.2 Project Budget

Particulars Materials Labor Fixed Cost Total Cost

1.1 Design and Architectural - 92 674.30 62,035.60 10,500 72535.60

1.3 Business Licenses - 20 500.30 10,066.00 - 10,066.00

1.4 Approvals - 36 720.50 25,938.00 - 25,938.00

Total Cost Task 1 - 126,862.00 17,500 144,362.00

2.0 Construction phase

2.1 Foundation and Building 196,210.50 20 1258.00 251,600.00 - 447,810.50

3.0 Interior Design

3.1 Flooring 2,406.00 3 400 1,200 - 3606.00

3.2 Window installation 240.60 3 400 1,200 - 1440.60

3.3 Porcelain tiles installation 1,520.00 2 400 800 2,320.00

3.4 Painting 301.00 3 400 1,200 1501.00

Total Cost Task 3 4,467.60 4,400 - 8,867.60

4.0 Sanitary fixtures installation

4.1 Sinks installation 159.00 1 150 150 - 309.00

4.2 Toilet seat installation 1,150.00 1 250 250 - 1,400.00

Total Cost Task 4 1,309.00 400 - 1,709.00