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Sunderland Faculty of Business & Law Undergraduate ProgrammesSIM 335 MANAGING PROJECTS

Individual Assignment Report

Project management for Juron Ltd. and Jigama Ltd.

in executing business strategyby Pham Trung Hieu, Intake 4 | ISME, National Economics University, 2011

H a n o i , 2 0 1 1

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SCENARIO 1: Juron Ltd.

From sequence of activities provided, a network diagram is formed properly combined

with detailed explanations of how activities, float, duration and critical path are

identified.

1.1Network diagram (AON)(see Appendix 1)

To complete project, network diagram has START activity and FINISH ac tivity at

the beginning and the end. They are dummy activities.

1.2 Timing of activities

Determining timing of activity concerns about activitys Earliest-Start-Time, Earliest-

Finish-Time, Latest-Start-Time, Latest-Finish-Time. According to Field and Keller

(2005), EST/EFT are calculated using forward passand LST/LFT are determined using

backward pass technique (same as Activity-On-Arrow.) Forward pass must be

accomplished before fulfilling backward pass.

Forward pass:

Starting activity always has EST=0. EFT formula:

EFT(n)=EST(n)+D(n)

EST of each activity (notstart) is equal to EFT of its immediately predecessor.

EST(n)=EFT(n-1)

When multiple tasks converge, next activitys EST equals the highest of preceding EFT

times. Example: G has 5 predecessors: B,C,D,E,F and EFT(F)=13>EFT(B,C,D,E); hence

EST(G)=13. The reason is activity F needs to be completed before beginning activity G.

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1.4 Calendaring project

Projects EFT is 93 days. With a 5-day-work-week (no holidays), it takes 18 weeks and 3

days to complete. If project starts on Monday, 16th

January 2012 then EFT will be

Wednesday, 23rd

May 2012(see appendix 4).

1.5 Effect of delaying activities

1.5.1 If delaying activity B 2 days, it will not affect to the entire project because this

activity has 4-day-float (more than 2 days delayed) and it is not on critical path.

1.5.2 Because activity P has zero float and on critical path hence if delaying P 2 days, it

delays project2 days.

1.5.3 Because O has no float and on critical path thus if activity O is delayed 1 day, it

delays project1 day.

(see Appendix 5)

1.6 Advantages and limitations

From Field and Keller (2005) and own ideas two advantages and three limitations of

network diagram are:

Helps project manager determining total time for projectand assessing whether the

planned timing match with total time allowed.

Because of graphical present, it is easy to identify logical relationships between

activities and flow of activities to accomplish project.

Much time and resources needed to generate large networks, hence start of project

can be behind scheduled.

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There are difficulties in estimating duration. The managers objective opinions

normally underestimate time for activities. It leads to behind schedule and costs are

doubled.

Non-flexibility in controllingthe balance of projects time, cost and qualitybecause of

over-emphasis the importance of critical paths.

(Word count: 600 words)

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APPENDICES FOR SCENARIO 1

Appendix 1

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: Continuous

Critical path

Noncritical path

EST: earliest start time.

D: duration (days)EFT: earliest finish time.

LST: latest start time.

LFT: latest finish time.

EST EFTD

LFTFloatLST

Activity Identifier

1

62 719

71062

M

49 6213

62049

L

79 889

88079

P

75 794

79075

O

71 754

75071

N

88 935

93088

Q

93 930

93093

FINISH1

4

9

5

1348

B

0 44

400

A

4 128

1315

D

4 84

1359

C

4 106

1337

E

4 139

1304

F

34 406

41135

J

34 417

41034

I

26 348

34026

H

13 2613

26013

G

41 498

49041

K

0

00

000

START

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Appendix 2

According to Field and Keller(2005), network diagram has two types of activities: activities

in series and activities in parallel.

Total float and project float for each activity are calculated as below:

Activity Total Float

A 0

B 4

C 5

D 1

E 3

F 0

G 0

H 0

I 0

J 1

K 0

L 0

M 0

N 0

O 0

P 0

Q 0

Project f loat 14

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Appendix 3

The terminology critical path can be defined in many different ways, understand

comprehensively this term is necessary in developing a complete and integrated perspective.

A path is any route comprised of one or more arrow (activities) connected in

sequence. The longest path from the origin node to the terminal node is called the critical

path; this gives the expected project duration.(Nicholas and Heinemann, 2004)

Longest sequence of activities in a projectplan which must be completed on time for the

project to complete on due date. An activity on the critical path cannot be started until its

predecessor activity is complete; if it is delayed for a day, the entire project will be

delayed for a day unless the activity following the delayed activity is completed a day

earlier. (BusinessDictionary)

The critical path is defined as the series of activities that have zero float. The critical

path always runs through the project from the first activity to the last activity. Activities

with zero float are on critical path. (Burke, 2003)

Appendix 4

Here we will look into calendar to see the timing of the process and how we can approach the

earliest finish date of the project on Wednesday, 23rd

May 2012.

http://www.businessdictionary.com/definition/plan.htmlhttp://www.businessdictionary.com/definition/day.htmlhttp://www.businessdictionary.com/definition/day.htmlhttp://www.businessdictionary.com/definition/plan.html

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Monday Tuesday Wednesday Thursday Friday Week

January 2012

16 17 18 19 20 1

23 24 25 26 27 2

30 31

February 2012

1 2 3 3

6 7 8 9 10 4

13 14 15 16 17 5

20 21 22 23 24 6

27 28 29

March 2012

1 2 7

5 6 7 8 9 8

12 13 14 15 16 9

19 20 21 22 23 10

26 27 28 29 30 11

April 2012

2 3 4 5 6 12

9 10 11 12 13 13

16 17 18 19 20 14

23 24 25 26 27 15

30

May 2012

1 2 3 4 16

7 8 9 10 11 17

14 15 16 17 18 18

21 22 23

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Earliest Finish Time = 93 days = 18 x 5 day weeks + 3 days = Wednesday, 23rd

May 2012

Or the projects finish date can be determined through the length of activities on critical path

as below:

Activity Duration Earliest finish date

Start 0 Monday, 16t

January 2012

A 4 Thursday, 19t

January 2012

F 9 Wednesday, 1stFebruary 2012

G 13 Monday, 20t

February 2012

H 8 Thursday, 1s

March 2012

I 7 Monday, 12t

March 2012

K 8 Thursday, 22n

March 2012

L 13 Tuesday, 10 April 2012

M 9 Monday, 23r

April 2012

N 4 Friday, 27 April 2012

O 4 Thursday, 3r

May 2012

P 9 Wednesday, 16t

May 2012

Q 5 Wednesday, 23r

May 2012

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Or Gantt Chart is also employed to calculate the earliest finish time of the project:

Legend: activities on critical path activities on non-critical path

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Appendix 5a. If activity B is delayed 2 days

2

62 719

71062

M

49 6213

62049

L

79 889

88079

P

75 794

79075

O

71 754

75071

N

88 935

93088

Q

93 0

093

FINISH

6 115

1348

B

0 44

400

A

4 128

1315

D

4 84

1359

C

4 106

1337

E

4 139

1304

F

34 406

41135

J

34 417

41034

I

26 348

34026

H

13 2613

26013

G

41 498

49041

K

0

00

000

START

2 da s dela edA B

: Contingency effect

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Appendix 5b. If activity P is delayed 2 days

62 719

71062

M

49 6213

62049

L

81 909

90081

P

75 794

79075

O

71 754

75071

N

90 955

95090

Q

95 0

095

FINIS

4 95

1348

B

0 44

400

A

4 128

1315

D

4 84

1359

C

4 106

1337

E

4 139

1304

F

34 406

41135

J

34 417

41034

I

26 348

34026

H

13 2613

26013

G

41 498

49041

K

0

00

000

START

2 da s dela edO P

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Appendix 5c. If activity O is delayed 1 day

62 719

71062

M

49 6213

62049

L

80 899

89080

P

76 804

80076

O

71 754

75071

N

89 945

94089

Q

94 0

094

FIN

4 95

1348

B

0 44

400

A

4 128

1315

D

4 84

1359

C

4 106

1337

E

4 139

1304

F

34 406

41135

J

34 417

41034

I

26 348

34026

H

13 2613

26013

G

41 498

49041

K

0

00

000

START

1 da dela edN O

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SCENARIO 2: Jimaga Ltd.

EXECUTIVE SUMMARY

Jimaga Ltd. is a SME company specializing in the design and supply of promotional brochures. As part

of a strategy of expansion, Jimaga Ltd. has been implementing a project for setting a warehouse.

Initially, before bring the new warehouse in operating, a precise project must have to come out to

successfully manage this new initiative at the feasibility stage. From a perspective of managing project,

this report is generated to identify crucial tasks for achieving an efficient warehouse.

The report presents in details plan, skills and competencies for the project manager including:

All the tasks related to each stage of the project life-cycle.

Concerns, stages, processes, leadership, administration and control problems associated with

managing the lifecycle of this major project.

It really helps project manager to successfully manage this project, ensuring on time and within budget.

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MAJOR FINDINGS

2.1 Warehouse project life-cycle:

To manage the project efficiently, manager should follow strictly steps in project life-cycle (PLC).

According to Weiss and Wysocki (1994), the basic project life-cycle has five stages: define, plan,

organize, execute, and close. Because of large project, this 5-stage PLC is appropriate, precise and easy

to manage activities (see Appendix 1.)

2.1.1 Stage 1: Define

a. Functional specification

Follow Tompkins and White(1984), a warehouse directly serves for traditional purposes(see Appendix

2.)Apart from that, additionally, functions of this warehouse are also implied in the corporate strategy

which focuses on targeting and r esponding to demands of l arge global organizations in marketing

campaigns.

b.

Scenario development

Scenario development comprises a range of processes which is useful for setting project objectives as

well as assessing possible risks. This also allow project manager to cover alternative circumstances that

project can operate flexibly. According to Paul Shoemaker (1993), process to develop scenario for

project is identifyingscope of time, layout ratio, and decision var iabl es; major stakeholders;current

trends; and key uncertainties(see Appendix 3.)

c. Cost-benefit analysis

It simply identifies, specifies and evaluates an assumption costs and benefits (Field and Keller, 2005.)

Financial management tools can vary according to complexity: Payback Period, Net Present Value,

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Internal Rate of Return, etc. Because payback period does not calculate time value of money and IRR

method is complex, hence NPV is suggested for the project. According to observation of same projects

for setting up warehouses, cost is estimated 40,000. (see Appendix 4.)

d. Setting objectives

Beside the objectives set up by manager of delivering the project on time and withi n budget, a

successful project must commit beyond those factors, quality in the long run(Field and Keller, 2005.)

Those objectives must strictly follow 5 indicators of SMART model (see Appendix 5.)This guarantees

satisfactions to all stakeholders and building ima[ge for the company.

e. Appointing project team:

To forming a good team, the project manager should concern about nature of works. According toField

and Keller (2005), there are four common models: function team, single team, matrix team, and

contract team. However, it can be perfect if the project have a mixed team. Because existing

warehouses staffs are experienced and acquaint with routine tasks, an assistan t manager, an

administration staff and two others warehouse staffs can be employed as supervisors and designers.

Apart from that, in a functional hierarchy in aspects of cost and labor, staffs at Financial Department

and HRM should involve into the project. For other small activities, to save budget, company can

outsource staffs. This step must be implemented precisely through interviewing skills, job description,

psychometric testing, and assessment testing (Field and Keller, 2005.)

2.1.2 Stage 2: Pl an

a. Warehouse design

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First step in this phase provides work breakdown structur e(WBS) for constructing the warehouse, to

ensure that no activity is missing. As stated by Rook (1991), WBS is a product-oriented task

hierarchy of all the work to be performed to accomplish the project contractual objectivesthat are

required to reach the final outcomes. The suggested WBS contains four major steps: developing a

warehouse prototype, operating warehouse in emulation, evaluating and reviewing the warehouse, and

finalizing the project (Gross & Associates, 2003) (see Appendix 6.)

b. Sequencing tasks

Based on work packages of WBS, the project manager with the whole team need together list all

activities in chronological orders, assume each tasks timing. Network diagram and Gantt-chart are

useful techniques in project scheduling. (see Appendix 7.) According to schedule, project manager sets

4 main milestones to trace back and review what are accomplished. This project is optimally finished in

72 days from Monday, 2nd

January 2012 to Tuesday, 10th

April 2012.

c. Time management:

Project time management is method of controlling and monitoring the time spent for each activity by

staffs (Jason Westland, 2007.) By recording on a timesheet memorandum, the project manager can

clarify and update all timing of activities, then quickly response to time management issues and make

positive changes.

d. Cost management:

Project cost management is all referred to control financial resources in objectives of efficiency and

economy. Hence, planning cost carefully is very important because you cannot control the cost of an

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item when the money has already been spent or irrevocably committed (Field and Keller, 2005.) Total

project budget is the aggregation of costs, expenditures and overheads allocated to the project. There

are three ways in assuming approximate budget for each activity: ballpark estimate, budget estimate

(top-down) and definitive estimate (bottom-up) (Joseph Phillips, 2010). Because of specialization and

objectives of this project, manager is recommended taking both the defi ni tive estimation (f ir st) and the

budget estimation (second). (see Appendix 8.)

e. Risk Planning

Risk assessment and management can be defined as analysis of specific risks (Field and Keller, 2005)

and identification of countermeasures necessary to meet the requirements identified in risk analysis

(PRINCE, 1993). Risks can cause a range of effects in terms of importance and urgency. It lengthens

times, increases costs, and reduces the outcome of delivery. Hence, there are models to identify risks

(see Appendix 9) and possible responses (see appendix 10) for the manager plan and give quick

decision when encountering. A tabular lists potential risks and suggested responses for project manager

is provided inAppendix 11.

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2.1.3 Stage 3: Organize

a. Organize team

Project human resources usually acquires experienced, skillful, and especially responsible in the field

of project. With a large project for opening new warehouse, company can allocate 1 project manager, 1

assistant manager, 1 human resource manager, 1 financial manager, 1 warehouse administration, 2

warehouse staffs from the company itself and other contracted labors. It is important that information

about plan is communicated thoroughly among project team to ensure project on schedule. Moreover,

apply good conditions, well-informed combined with motivation (monetary and non-monetary) will

create ownership, responsibility of staffs, hence increasing the performance and outcome of the project

(Field and Keller, 2005.)

b. Assign works

After organizing team, the project manager with 4 sub-managers should stand together to discuss,

appoint, and take responsible of specific tasks for sub-teams. In the roundtable, project manager

establishes framework for project organization and give each sub-team an identity to work and right to

report. Apart from that, all required documents such as schedules, procedures, checklist, budget,

manuals, etc. will be provided (Field and Keller, 2005.)

Project organization can be divided into 3 levels of management and 4 divisions of work under the

project manager. (see Appendix 12.)

2.1.4 Stage 4: Execute

a. Issue change orders

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In implementing phase, project team may encounter with unpredicted problems, differences in terms of

timing, resources or even companys requirements. Hence, project involves planning changes to closely

approach the objectives. Before doing anything further, it requires manager gathering all the planned

and actual results to compare. The variances are then taken into consideration whether they are positive

or negative. The project manager after all can develop project control loop to generate appropriate

responses (Field and Keller, 2005.)

b. Review project status

Project status is the step that simply measuring and aggregating all information taken from different

divisions in the project. As the previous stage mentioned, to track current position and improving

accuracy, the project manager should determine based on milestones. Furthermore, an automated

reporting softwarefor the project is the best supporter for manager to have a quick overview.

c. Monitoring staff, schedule and costs

Monitori ng and controll ing activities:different level of manager may have different reporting line

and schedule. Periodic reports can be submitted daily from warehouse staff to warehouse

administrator and from warehouse administrator to assistant manager can review weekly or

monthly. Another method to keep a good communication and motivation among project team is

organize progress review meetings. Though this is costly but it can help the manager improve

efficiency and quality of project works. (Field and Keller, 2005)

Monitori ng and controll ing costsee many constraints include allowable project budget, extra costs,

under costs. The manager can base on normally accounting systems but it is inappropriately and

imprecisely clarifying cost already spent according achievement and how much money for work

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left.To solve this problem, referring to Field and Keller (2005), there is a method called earned

value systemor budgeted cost of work performed to monitor project cost.

d. Controlling quality

Quality management for warehouse is crucial when there may have potential risks (planning phase)

occur during the operation. This regards to loss of goods, machinery, legally binding with staffs

(injuries, deaths), efficiency in operation, and the companys reputation. The project manager therefore

must assure quality based on WBS checklists in which warehouse design is concerned. Using quality

control techniques, the project manager can perform this frequently until the end of the project to

ensure outcome delivered meets stakeholders requirements.

2.1.5 Stage 5: Close

In this stage, before the warehouse delivered to the company, it needs to re-check and must be accepted

by the companys manager. All the documents is completed and signed off; relieving labors and

resources; informing and disclosing warehouse to stakeholders (Weiss and Wysocki, 1994.)

According to Spirer(1983), project closure should be concern as a small plan which also has problems

itself in aspects of emotion for project staffs, clients and intellection for internal, external organizations

(see Appendix 13.) This will help to maintain the outcome warehouse and develop inspiration for every

stakeholders in future business.

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2.2 Project manager skills and competencies

A project manager involves in project from very first stage to the completion of project. Before doing

any actions, this selected person initially must have characteristics of:

Pioneer who acquires outstanding energy levels, enthusiastic and challenge problems

Stakeholders who interested in and concernsabout the project and absolutely compulses with

the outcomes

Politician who create vision, transparent objectives, communicating, persuading, influencing,

integrating and leading people, especially truthful.

All of those will create extraordinary competencies for a project manager, supporting he/she in

implementing project successfully (example see Appendix 14.)

Beside essential personality, the project manager must comprehensively understand main duties along

with every stagesof the project life-cycle in his specialization. According toField and Keller(2005),

he/she with the supporting of an assistant firstly starts with the identification of objectives, planning the

flow of activities step-by-step and estimating how much time, resources, what skills needed to complete

the project.

The manager then must assembling a team byemploying people with right knowledge, right skills,

right attitude to form sub-teams to complete different project areas. This stage require the project

managers skillof leadershipto unite, motivate and communicate everyone contribute to teamwork and

feel like they are a part of the project success. It also takes into account ability to delegate and appoint

tasks for specific staffs. It is not simply giving away works irresponsibly but the project manage must

show processeslike an usersguide includes time, resources and detailed methods to implement. For

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example, when the sub-manager appoints warehouse staffs to measuring merchandise in advance

without guidance, they fail to do this and consequently the problem takes overtime and much cost to

handle. This leads to the destruction in merchandising and totally destroy project.

In execution stage, the project manager must ensure to monitoring and controlling any changes related

to project itself, clients and stakeholders to re-planning the project to a new baseline. It is required

skills of making judgments and adjustments and it is when computer-aided software engineering

(CASE) tools is placedcorrectly.

Apart from the main project duties (internally), the project manager usually also has responsible to

report and liaise with different level of management from general director, clients, sponsors to

stakeholders and this is when skills of using reporting-line is applied.

Follow through all the competencies and skills in the whole project life-cycle is definitely essential for

success of project manager. Whether the project fails or succeeds, it totally lies under the responsibility

of manager.

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CONCLUSION

To support the project manager for Jimaga Ltd. project, this report is written as a good plan includes

detailed phases in the project life-cycle, concurrent with contemporary skills and competencies needed

for project manager in controlling project. Hence, the manager should see this as a serious user

manual to set up the new warehouse efficiency and meeting the objectives requirements of the

corporate.

(Word count: 2183 words)

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APPENDICES FOR SCENARIO 2

Appendix 1

The Basic Warehouse Project Life-cycle (referring to Weiss and Wysocki, 1994)

Appendix 2

Traditional purposes of a warehouse:

receiving;

identification and sorting;

dispatching to storage;

placing in storage;

storage;

retrieval from storage;

order accumulation;

packing;

shipping; and

record keeping.

Define

Issues analysis

Feasibility study

Functionalspecification

Scenariodevelopment

Cost-benefitanalysis

Set objectives Team

appointing

Plan

Warehousedesign

Identify criticalactivities, time,

Time, costmanagement

Risk analysis Quality

assuranceplanning

Organize

Organize team

Assign work

Execute

Issue changeorders

Review projectstatus

Report onproject

Reviewschedule andbudget

Qualifying

Close

Obtain clientacceptance

Completedocumentation

Sign off

Conduct postimplementation

audit Maintenance

Valueassessment

Sequence tasks

Recruit staff

Establish control

tools

Install deliverables

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When constructing a new warehouse, the manager should also take into consideration of storing goods

in adequate spacewith the proper equipmentby well trainedpersonnelin a properly planned layout

results in maximum protectionof items. (Tompkins et al., 1996)

Appendix 3

Scenario development stage:

Identify the scope of time, layout ratio, and decision variables.

Assuming that when Jimaga Ltd. operating this strategy to integrate with global environment, the

company accept the standard time for constructing and finalizing a new warehouse. Hence,

referring to the statistic of World Bank for time required to build a warehouse , the average time

required is 207 days. Because the company has already acquired a building, there no need time for

construction, but they must redesign structure more or less. Assuming that construction takes a two-

third of total time, hence the optimal time for this project (redesign & setting up) is 72 days.

Country Name Country Code Days (2010)

Arab World ARB 152

East Asia & Pacific (all income levels) EAS 161

East Asia & Pacific (developing only) EAP 181

Euro area EMU 221Europe & Central Asia (all income levels) ECS 216

Europe & Central Asia (developing only) ECA 233

European Union EUU 199

Heavily indebted poor countries (HIPC) HPC 246

High income HIC 169

High income: non OECD NOC 176

High income: OECD OEC 165

Latin America & Caribbean (all income levels) LCN 220

Latin America & Caribbean (developing only) LAC 220

Least developed countries: UN classification LDC 250

Low & middle income LMY 221Low income LIC 290

Lower middle income LMC 199

Middle East & North Africa (all income levels) MEA 156

Middle East & North Africa (developing only) MNA 181

Middle income MIC 200

North America NAC 58

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OECD members OED 164

South Asia SAS 241

Sub-Saharan Africa (all income levels) SSF 240

Sub-Saharan Africa (developing only) SSA 240

Upper middle income UMC 201

World WLD 207

There is no optimal ratio for office and warehouse, but depends on human and land resource, the

administrative office may acquire a small area for work room, customer services room, file room,

lunch/rest room and other special rooms.

After feasibility stage, decision for withdrawal is no longer valid. But within the objectives of time

and budget, Jimagas manager can still decide how much resources the company willing to invest.

Identify major stakeholders. Boddy and Buchanan (1992) developed a process of stakeholder

mapping. It generally is a category of people directly/indirectly, strongly/weakly influent to the

project. They are interest people, sponsor, champion, client, customer, or the owner. They have

aims, expectations and influence to the project

Curr ent trendin warehouse management: this small step is essentially taken to support for planning

stage, ensuring the best efficient and economic way in building warehouse. According to Lee Yan

Ni, Roland Tok, See Yi Lin, and Seet Hui Ling(2009), current trends for warehouse setting up are:

o Installation of RFID/WMS/EDI

o Advanced material handling systems

o Increase height allowance as land

o Adopting cross-dock activities

Identify key uncertaintiescome from decision-making progress, modeling, analyzing activities for

project.

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Appendix 4

Example for IRR,NPV, and ROI calculation

Initial Investment (40,000)

Projected cash flow

Year 1 5,000Year 2 10,000

Year 3 15,000

Year 4 25,000

Year 5 20,000

Total 75,000

IRR 20%

NPV (at 5%) 63,028

Payback Period (Years) 3.40

ROI (NPVInvestment) 23,028

Appendix 5

According toAmy Maranowicz, 2011

Appendix 6

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Work Breakdown Structure for Opening new Warehouse (referred to Gross & Associates, 2003)

Level 4Level 3Level 2Level 1

Opening newwarehouse

Developing a

prototype

Measuring

merchandise

Classifyingmaterials

Spaceallowances

Building &Services

Determinefeatures

Equipment &Handling

Layout

Organization &people

Job

descriptions

Jobapportionate

Training

Security &

Safety

Emergency,lock systems

Protectionclothes

Operatingwarehouse in

emulation

Evaluating &reviewing the

warehouse

Finalizing thewarehouse

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Measur ing merchandise takes initiative to classify kinds of goods based on their features to

adapt with condition in the warehouse. To the case of Jimaga, goods are not only promotional

brochures but they can be carton boxes, work-in-process, raw materials (inks, papers, glues, films, etc.),

or office facilities (computers, stationary, staff uniforms, etc.)

Consequently the space for each kind is calculated and how they would be stored. For specialization,

cubic feet unit is used to measure. Apart from useful space, additional areas should be left for

overstock, expansion or warehouse traffic.

The second step concerns about determining physical characteri stics of the new bui ldingand

space for off iceto manage service activities in the warehouse.

With a few staffs in the large warehouse area, the assistance of equipment and handling

machines is significant in lifting and picking products efficiently. Depending on kinds, volume and

speed, appropriate methods should be applied manually or automatically as trucks, conveyors, racks or

pallets.

Next step, a detail gr id layout for the warehouse included merchandise, building, services,

equipment and machines, security and safety is visualized.

The warehouse worth nothing without putting peoplein. As Jimagasplan, staffing structure is

the same as the existing structure in existing site. Hence, the manager should invest more on handling

in and out methods to improve efficiency and training people to accommodate with the new warehouse.

In any building, secur i ty and safety are very important issues, especially for warehouse to

prevent thief, robbery, injury, fire or toxicity. There are many solutions include alarm system, guard,

protection clothing for staffs.

Next, the warehouse prototype is operating in trial to test the smoothness and efficiency as well

as other potential risks and changes needed to evaluate and review in the following step.

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Lastly, the warehouse is finalized, assessed and accepted by the companys manager. It then

will be put into operation.

Appendix 7

Activity

IdentifierActivity Description

Duration

(days)

Human

ResourcesPredecessor

A Identify goods store in warehouse 1 1 -

B Classify goods 1 1 A

C Identify goods space 1 2 B

D Goods conditioning 1 1 B

E Determining building characteristics 7 3 -

F Clarifying warehouse and office spaces 2 2 E

GList equipment and handling machines

for warehouse and office1

1-

HDetermine space, necessity, volume for

equipment and machines3

2G

I Purchasing equipment and machines 14 2 H

J Assessing security and safety 2 1 D, F, I

KPurchasing equipment for security and

safety7

2J

L Visualize detail grid layout 7 2 C, K

M Work/job description 1 1 -

N Work/job apportion 1 1 M

O Staff employment 15 2 N

P Training 7 2 O

QReconstructing building in necessary

15 5 L, P

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34

areas

RPutting equipment and machines to

warehouse and office2

5Q

S Putting equipment for security and safety 1 2 Q

T Putting goods to inventory 2 5 R

U Putting people to warehouse and office 1 17 S, T

V Running prototype 5 17 U

W Review the delivery 2 5 V

X Adjusting and finalize the delivery 5 5 W

Y Companys manager check and accept 1 2 X

ZCompleting document, sign off,

delivering outcome5

4Y

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35

49 6213

62049

L

79 889

88079

P

75 794

79075

O

4 128

1315

D

4 84

1359

C

4 139

1304

F

34 406

41135

J

34 417

41034

I

41 498

49041

K

62 719

71062

M

71 754

75071

N

4

9

5

1348

B

0 44

400

A

4 106

1337

E

26 348

34026

H

13 2613

26013

G

0

00

000

START

1

2

88 935

93088

Q

88 935

93088

R

88 935

93088

S

88 935

93088

T

88 935

93088

U

88 935

93088

V

88 935

93088

W 3

88 935

93088

X

88 935

93088

Y

93 930

93093

FINISH

88 935

93088

Z3

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Appendix 8

Joseph Phillips(2010) gives out three models to estimating costs for a project as follow:

The Ballpark Estimatecomes from corporate objectives, normally draws a birds eyeviewof the

project outcomes, and has lots of wiggle room.

The Budget Estimate(or top-down estimate) is most often based on analogous estimating budget

experience from a similar project and applying them to the current project.

The Defin iti ve Estimate (or bottom-up estimate) though takes time but this method provide an

accurate calculation for project total budget. The definitive estimate bases on a work breakdown

structure (WBS).

Above all, in order to have better cost management for the whole project, suggested cost breakdown

structure is provided below:

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20% 40% 20% 10% 5% 5%

Estimate cost proportion of opening the warehouse

Appendix 9

Source:Energy Institute

Layout areas

Redesign floor,ceiling, wall,door

Machines

Shelves, bins

Preservation

Computers

Softwares

Print, fax

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Appendix 10

Source: The Business Owner, 2009

Appendix 11

Example for a warehouse risk identifications:

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Source:Health and Safety Executive, 2007

Appendix 12

A proposed work assignment for warehouse project:

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According toField and Keller(2005)

Appendix 13 (According to Spirer, 1983)

Projectmanager

Warehouseadministrator

Warehousestaffs

Contracted

labors

Humanresourcemanager

Contracted staff

Financialmanager

Contracted staff

Assistant

manager

Operating,supporting

reporting

Documenting,scheduling,

servicing meeting,

facilities

Developing prototype,controlling, analyzing

& reviewing

Managing wholeproject: people,

process, warehouse

controlling

supportingsupporting

Constructing

, operating

Recruiting, staffing,contracting, payroll

Financialinformation, cash

flow, budgeting

Project termination

problems

internalclientstaff

intellectualemotional

external

-fear no future work-loss of interest in tasks remaining-loss of project-delivered

motivation

-loss of team identity-selection of personnel to bereassigned

-reassignment methodology-diversion of effort

-change in attitude-loss of interest in project-change of personnel dealing with

project

-unavailability of key personnel

-identification of remainingdeliverables-certification needs

-identification of outstanding

commitments-control of changes to project-screening of uncompleted tasks

not needed-closure of work orders and work

packages-identification of physical facilities

assigned to project-identification of project personnel-accumulation and structuring of

project historical data

-dis osin of material of ro ect

-agreement with client oremaining deliverables-obtaining needed certif

-agreement with supplie

outstanding commitmen-communicating closure-closing down physical

facilities-determining externalre uirements for audit t

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Appendix 14

For the project managers competencies, itshould be referred to the case of a senior vice president of a

Fortune 500 organization which he endeavored to construct a program for discipline, innovation,

structure, training, leadership and an important visual feedback system that his team was able to reduce

15% to 25% of project life-cycle and cut-down 10% cost. And secrets are revealed:

Encourage work through innovation

Logical process and clear structure

Follow discipline

Did not allow shortcut

Dont let deadline decide work

Create visual feedback system

o Everything clarity

o Focus

o People accountability

(According toDeborah Bigelow, 2000.)

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