Riordan Manufacturing Project Management Plan – Wk 2 Preparation
Riordan Manufacturing Project Management Plan – China Move
Week 2 Preparation
PM 571 – Project Management
November 23, 2015
Table of Contents
13 H. Scope Statement Approval Form/Signatures
Scope Statement
A. Executive Summary
This project has been initiated to move the current operations to Hangzhou, China to Shanghai. The decision to move was based on two justifications; (1) Riordan’s Chinese partners and their facilities are currently located there and; (2) the Qiantang River which facilitates their shipping needs is located within the city’s limit which is adequate to accommodate the company’s shipping needs.
B. Business Objectives
1. Business Need/Opportunity/Objectives
· Save time and money by eliminating the need to ship materials 180 km to ports in Shanghai, by moving the company's operations to Shanghai.
· An increase in production volume has created the need to use container shipping companies that use ports centrally located in Hong Kong as well as Shanghai resulting in significant cost savings
· Operations can implement a more substantial urban infrastructure
· Better marketing strategy to ship our Chinese products throughout Asia and Europe
· River access to Hangzhou Bay would provide sufficient accommodations to handle the shipping needs
· The overall cost savings and opportunity to better position the shipping far exceed the additional time and effort required with the extra logistical steps
· An alternate solution would include transporting products by trucks to the Shanghai port and then loaded into containers that are shipped directly onto the ships to their final destination.
· Without the move, Riordan Manufacturing runs the risk of remaining rigid in their Operations division and lose the opportunity and ability to expand and gain a greater market share.
2. Product Description
Reduce operational expenses by relocating the current operational shipping facilities to Shanghai where cost savings can be obtained by using the ports that operate directly out of Shanghai and Hong Kong.
3. Deliverables
· Project-Related:
· Relocation research documents
· Operational procedures to enter/exit port
· Port Mappings – shore locations, layouts, schematics
· Permits / Certificate of Occupancy
· Constructed production facility
· Project Management Related:
· Case study/business case/justification
· Project Scope
· Project Charter
· Work Breakdown Structure
· Overview Strategic Plan
· Traceability Matrix
· Communications Plan
· Schedule
· Cost Analysis
· Risk Assessment
· Status Reports
· Lessons Learned
C. Project Description
1. Scope
In-Scope:
· Relocate China Operations to Shanghai
· Relocation moving costs for staff
· Construction of new production facility
· Transport of trucks, barges and containers to Shanghai port
Out of Scope:
· Housing purchase/rental for staff
· Sale of existing Operations facility
· Secure interim move facility
2. Requirements:
The requirements for making this relocation a reality include the following:
· Comprehensive detailed move plan
· Training and instructional move documentation for staff
· Construction crew to build new production facility
· Moving company to transport company equipment (trucks and barges) to Shanghai facility
· Onsite oversight of the move and construction of new facility
· Communication and coordination between staff and management and port authority
· Increased shipping destinations
· Production cost savings
· Shipping time reduction
· Streamline and simplify operations
· Less rigid—more flexible operations
· Opportunity to gain greater market share with expansion
3. Acceptance Criteria
The success completion of the project will include the following criteria:
· Operations are successfully relocated to Shanghai with minimum collateral damage
· Successful move without an undue disruption in the operations of the organization for a significant length of time.
· Evidence of operational efficiencies due to proximity
· Additional cost savings are realized
· New port location will accommodate increased production volume
· Additional shipping destinations and locations are made available
· Operational functions are streamlined and flexible
· The return on investment exceeds the budget spent to complete project.
4. Risk Assessment
· Move will take longer than five year scheduled plan resulting in millions of dollars in cost overruns and expenditures and major profit loss
· Staff turnover due to new location
· Language barriers
· Business etiquette differences
5. Constraints
· Five year timeframe
· Limited budget
· Only Operations department is moving
6. Assumptions
· Lot/space availability at Shanghai port
· Government contracts have been signed
· Permits have been secured
· Ability to secure contracts with shipping companies in Shanghai
· Increased production warrants move to Shanghai
· Budget is secured by Business/Project Sponsor
7. Critical Success Factors
· Project schedule will be accepted
· Organization management plan will be approved
· Port contracts are approved
· Lot / Land is available to build on
10. Roles and Project Stakeholders
Roles & Definitions
Project Sponsor
|
Responsible for financing the project and supplying executive-level approvals. Is considered the key stakeholder as well as reviews, approves and sign-offs on the project deliverables. |
Project Owner |
Responsible for initiating the projects providing funding, hires consultants, and reaps the rewards of the deliverables. Sets the ground rules and definitions for policies. Works with the Project Manager to make final decisions on major project issues surrounding policy. |
Project Manager |
Responsible for overseeing project management functions. Responsible for creating all key documents including scope statement, project charter, project schedule, risk management plan, communications plan, monitors all task-related activities and tracks progress. Responsible for reporting status to all levels of the project team to ensure transparency. |
Steering Committee |
Provides guidance in issue management and serves as the ultimate decision maker for items that exceed the Project Manager’s authority level. Serves as an advocate for stakeholders that do not sit on the committee. |
Stakeholder |
Anyone that has a stake in the project’s success or failure. Provides the requirements necessary for the project’s completion. Majority of stakeholders for this project include the Operations team, vendors, the Shanghai port authority, project owner, project sponsor, customers, shipping companies, etc. |
Team Member |
Anyone listed within the project plan either as a direct team contributor or managerial representative of that member. Provides analysis, designs documents that help to enhance the existing process. |
D. Project Approach
Planned Approach
The project will be completed in phases including project initiation, project planning, project design, development, project execution and post implementation with a number of deliverables within. Among these categories are the structural part, the project initiation part, project planning part and project execution part. The activities are listed as follows:
Work Breakdown Structure
Task |
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1.0 Management and Support - Initiation |
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1.1 Provide Project Management |
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1.1.1 Evaluations & Recommendations |
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1.1.2 Project Scope |
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1.1.2.1 Submit Preliminary |
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1.1.2.2 Project Team Selection |
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1.1.3 Approve Scope |
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1.1.4 Implement Scope |
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1.1.5 Project Charter |
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1.1.5.1 Submit |
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1.1.5.2 Review |
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1.1.6 Approve Charter |
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1.1.7 Implement Charter |
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1.2 Provide quality control |
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1.3 Project Status Meetings |
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1.4 Materials and supplies |
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1.5 Transportation / Housing |
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1.6 Varied costs |
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1.7 Contractor Services |
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1.8 Risk Management |
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2.0 Physical Facilities - Planning |
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2.1 Planning |
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2.1.1 Define move strategy |
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2.1.2 Secure land / lot in Shanghai |
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2.1.3 Build new facility |
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2.1.4 Move plan |
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2.1.4.1 Conduct facilities inventory |
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2.1.4.2 Conduct applications inventory |
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2.1.4.3 Prepare move plan |
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3.0 Facilities Move |
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3.1 Site preparation |
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3.1.1 Prepare site plan |
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3.1.2 Prepare physical site |
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3.1.3 Provide Power |
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3.1.4 Connectivity |
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Obtain Certification of Occupancy |
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E. Communication Plan
Any staff or management issues will be communicated up the chain of command in the same manner, from staff members to departmental managers, to senior management. (Eric Kasten, (2012). The following strategies have been established to promote effective communication between all stakeholders:
· The Project Manager presents the project status to the Project Owner on a weekly basis. In addition, impromptu meetings will be scheduled when necessary to address issues or changes occur. Monthly status reports will be delivered to all key stakeholders along with meeting minutes. The project manager provides a written status report to the Project Owner on a monthly basis and distributes the project team meeting minutes.
· The Project Owner and Steering Committee will receive immediate notification upon issues impacting the project with all pertinent details to address and mitigate.
· Project team status meetings will occur on a weekly frequency to review, update and provide progress on tasks, activities, issues and risks that impact the project and project schedule.
· Status meeting minutes will be distributed to all key stakeholders including the Project Sponsor, the Steering Committee and project team members.
· A project folder will be created and located on SharePoint to archive all project-related documentation and for auditing purposes.
1. Stakeholder Analysis
Stakeholder(s) |
Deliverable / Document Type |
Frequency |
Communication Method |
Responsibility |
Key Stakeholders
|
Project Kickoff Meeting |
Once |
Face-to-Face WebEx |
Project Manager |
Project Manager Client Sponsor Client Owner |
Project Status |
Weekly |
Face-to-Face WebEx |
Project Team Leads, Consultant, Contractor |
PMO |
Dashboard Content |
Weekly |
Email/WebEx |
Project Manager |
Project Team Leads |
Project Status |
Weekly/As Needed |
Face-to-Face WebEx |
Project Manager; Project Team |
Sponsors |
Overview of Strategic Plan |
Once |
Presentation via WebEx Face-to-Face Presentation |
Project Manager |
Vendors |
Detailed Project Status |
Weekly |
|
Project Manager |
Consultant |
Assessments/Survey (Preliminary and Final) Findings |
As Completed |
Face-to-Face WebEx |
Project Manager
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Project Team |
Project Status |
Weekly |
Face-to-Face WebEx |
Project Team Leads, Project Manager |
F. Project Charter
Project Title: |
Move to Shanghai |
Project Start Date: |
11/23/2015 |
Project End Date: |
12/30/2020 |
1. Project Objectives
· Save time and money by eliminating the need to ship materials 180 km to ports in Shanghai, by moving the company's operations to Shanghai.
· An increase in production volume has created the need to use container shipping companies that use ports centrally located in Hong Kong as well as Shanghai resulting in significant cost savings
· Operations can implement a more substantial urban infrastructure
· Better marketing strategy to ship our Chinese products throughout Asia and Europe
· River access to Hangzhou Bay would provide sufficient accommodations to handle the shipping needs
· The overall cost savings and opportunity to better position the shipping far exceed the additional time and effort required with the extra logistical steps
· An alternate solution would include transporting products by trucks to the Shanghai port and then loaded into containers that are shipped directly onto the ships to their final destination.
· Without the move, Riordan Manufacturing runs the risk of remaining rigid in their Operations division and loose
2. Approach
The project will be completed in phases including project initiation, project planning, project design, development, project execution and post implementation with a number of deliverables within. Among these categories are the structural part, the project initiation part, project planning part and project execution part. The activities are listed as follows:
G. Authorizations
Approval Matrix |
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Scope Statement |
Project Changes |
Project Deliverables |
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Project Manager |
X |
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Project Sponsor |
X |
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X |
Project Owner |
X |
X |
X |
Stakeholders |
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X |
H. Scope Statement Approval Form/Signatures
Project Information:
Project Name: |
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Project ID: |
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Project Manager: |
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This document provides approval for project deliverables and for the activities performed for this project. Your approval is represented by providing your signature and serves as acceptance of adequate performance mutually shared by all project stakeholders including quality of deliverables, costs and expenses of the project.
Stakeholder ________________________________________ Title _____________________
Signature __________________________________________ Date ______________________
Stakeholder ________________________________________ Title _____________________
Signature __________________________________________ Date ______________________
Stakeholder ________________________________________ Title _____________________
Signature __________________________________________ Date ______________________
Stakeholder ________________________________________ Title _____________________
Signature __________________________________________ Date ______________________
Stakeholder ________________________________________ Title _____________________
Signature __________________________________________ Date ______________________
I. References
Eric Kasten, (2012. Basics of Project Management. Amazon Digital Services Publishing
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