PROJECT DEVELOP ECO FRIENDLY TAKE AWAY MATERIALS FOR COFFEE SHOP

Problem Statement The coffee shop was complained and criticized by customers for usingsingle-use-plastic cups with straw for takeaway coffee which may have anegative impact on the enviro

HO CHI MINH CITY CAMPUS

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-PROJECT MANAGEMENT REPORT

Lecturer: Le Tuan Bach

PROJECT: DEVELOP ECO-FRIENDLY AWAY MATERIALS FOR COFFEE SHOP

TAKE-By Group 2

Nguyễn Thị Quỳnh Anh – 1801015113Nguyễn Vũ Phương Anh – 1801015118Châu Ánh Dương – 1801015216Nguyễn Ngọc Huỳnh – 1801015358Nguyễn Huệ Khanh – 1801015371Nguyễn Thị Bảo Ngọc – 1801015562Phạm Minh Uyên - 1801016010

Ho Chi Minh City, October 2020

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1 Overview 1

2 The process of project selection 2

3 The statement of work (SOW) 5

3.1 Description and Scope 5

3.2 Approach 6

3.3 Resource Requirements 7

3.4 Risk Management 7

3.5 Acceptance Criteria 12

3.6 Estimated time and cost 12

4 Work Breakdown Structure (WBS) 12

5 Project Scheduling 13

6 Cost estimation and budgeting 16

7 Organiztional Breakdown Struture 18

7.1 OBS 18

7.2 Responsibility Assignment Matrix (RAM) 19

8 Time-Phased Budget 20

9 Implementation Strategy 21

9.1 Introduction 21

Project Management Group 2

a Background information

Business name: Ayi Coffee Shop

Ayi is one coffee shop located in District 3, HCM, offers both drinking at shop and takeaways Ayi was established in 2019 by a young business man called Linh Le.

Ayi Coffee serves high-quality coffee to office workers, business peoplewho work nearby and young people We will sell espresso-based drinks with afocus on providing quality at speed We will sell coffee to take away as well as

to eat in, with an indoor seating area with space for 25 customers

While there are other coffee shops in the area, we believe that there isdemand for more—especially ones that focus on a high-quality product We willalso provide a light lunch menu and pastries that we believe will differentiate usfrom other coffee shops in the area

We are on a busy street and expect to get custom from passersby duringthe day Going forward, Ayi Coffee will look to build customer loyalty within thearea We will keep a core offering but regularly rotate specials to continuegenerating interest within our customer base

b Problem Statement

The coffee shop was complained and criticized by customers for usingsingle-use-plastic cups with straw for takeaway coffee which may have anegative impact on the environment

Therefore, the shop is in need to develop another form of more friendly takeaways for customers who don't bring their own personal cups

eco-Our solution: Instead of using single-use plastic cups, customers deposit 50,000 VND to borrow cups After using it, users can bring the cup to any store in the system and get back the original 50,000 VND The coffee shop will need to collect the reusable cups from customers and wash them to hand over to the next customers.

c Description of major elements (deliverables) of the completed project

1 A software system that manages the customer's receipt and collection

of reusable cups

2 Many shops jointly implement the model for the convenience of

borrowing and returning reusable cups

3 Reusable cups and straws

4 Marketing campaign to promote the model and re-position the brand to

2 The process of project selection

The report was containing the results of a project screening conducted by two independent groups within the new product development department After several weeks

of analysis, it appeared that two top contenders had emerged as the optimal new project opportunities One project, code-named “Exchanged take-away cup”, applied

“reuse”method to protect the environment: Instead of using a plastic cup once and then throwing it away, customers can deposit 50,000 VND to borrow the cup of the coffee shop; they’re allowed to return the cup to any stores in the coffee shop’s system and get back 50,000 VND afterwards (material used is non-disposable plastic) The other project idea,

“Paper cup”, encourages customers to use take-away paper cups with a higher price when paying for a coffee cup The report’s aim is to prepare an evaluation of both projects in order to decide which one should be supported Because of budget restrictions, there was

no way that both projects could be funded.

The first evaluation team used a scoring model, based on the key strategiccategories, to evaluate the two projects The categories they employed were: (1)

2

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Project Management Group 2

strategic fit, (2) profitability of technical success, (3) financial risk, (4) potential profit,

(5) strategic leverage (ability of the project to employ and enhance companyresources and technical capabilities), (6) safety, (7) competitive advantage usingthese categories, the team evaluated the two projects as shown here Scores werebased on: 1=low, 2=medium, and 3=high

Project “Exchanged take-away cup”

Project “Paper cup”

anticipated inflation rate of 3% over the life of the project The findings of this

team were as follows:

Project “Exchanged take-away cup”

Unit: VNDInitial investment 100.000.000

Anticipated stream of

Anticipated stream of

Inflow Outflow Net flow Discount NPV

Thus, according to this analysis, Project “Exchanged take-away cup”

would be the project of choice

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Project Management Group 2

3 The statement of work (SOW)

3.1 Description and Scope

- The coffee shop was complainted and criticized by customerfor using one-time-plastic cup with straw for takeaway coffee

- The coffee shop located in District 3, HCM, offer both

b.Background drinking at shop and takeaways

- Arabica coffee is the specialty

- Sustainable cups, straws, spoons, lids with afforable cost forbusiness and customers

c.Description of major - Effective systems to control the exchanging cups activities of

elements (deliverables) of customers for operating the models

the completed project - Attractive Marketing's campaigns to get customer's attention,

brand impression and increase the number of people recognizenew materials

-Increase customer awareness of reducing plastic and usingmore non-plastic materials in drinking

d.Expected benefits -Position the coffee shop brand to environmentally friendly

without greenwash

-Restore the brand image in the direction to sustanability andzero waste development in society

e.Priorities assigned to each

Sustainable materials with operating systems

3.2 Approach

a.Major milestone/ key

events anticipated

1 Develop software to control reusable cup

3.Implement software on partner shop 15/9/2020

5 Tranning program on using new system 7/9/2020

6 Review on system and reaction 15/11/2020

a Critical path method

b Critical chain project management

f Feedback directly on store

c Plans for status report

Monthly, to see the effectiveness of the project

updates

3.3 Resource Requirements

a Reusable Material for cups and straw: inox cup and straw, glass cup

b Marketing Materials: posters, flyers, envelopes, vouchers,

c Software: technical and specialized coding software for each customer

having a self-code, computer applications

d Redesign the layout, cup and stores

e Hardware: online transaction

f Servive: home service collecting cup and straw

3.4 Risk Management

a Risk management objective

The purpose of the Risk Management Plan is to identify the risks for the

“Develop environmentally-friendly take-away materials for coffee shop”

campaign, and develop strategies to mitigate avoid the issues that are outlined

plan All risks were outlined and identified, a countermeasure was determined for each risk Every effort will be made by the staff to ensure that the required steps are taken to mitigate the risks, should they arise Since all of the risks were determined to take place

on the day of the campaign, all staff has been briefed on the approaches to take, and that they should be done in a timely manner The Project manager will be on site, all staff will report to them and the information will be conveyed to the Stakeholders.

c Risk Breakdown Structure

1.1 Client expectation1.2 Competitors1.3 Environment2.Internal:

2.1 Technical2.1.1 Performance2.2 Organizational2.2.1 Funding safety2.2.2 Skilled resources

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Project Management Group 2

d Qualitative Risk Analysis

Probability and impact matrix

new supplier for

new material cups

and straws can

increase costs

- Cost of installation

and training of staff to

operate the new system

C Expand the search for more Project 30manufacturers, negotiate a more manager

optimal price with large andperiodic orders Optimizingusage process, applying supplychain management technologyfor all stages

2.2.1 The mobilization of B Always monitor the progress of Project N/A

large amounts of

money in a short

period of time

outside the estimate

can reduce the

reserve fund, if not

able to turn around

capital in time, it will

affect the operations

in the future

2.2.2 Using the new

system has a direct

impact on existing

resources It may

be the lack of staff

in the operation of

the new system but

the excess of old

staff lacking skills

or training

1.1 Health problems -

infectious diseases

when sharing cups

Customers will feel

annoyed, each time

they borrow a cup

to take away, they

incur an extra fee

activities, prepare contingency director plans and evaluate replacement when the operation has a big difference compared to project baseline

A Implement retraining plans or Project 50hire more skilled human manager

resources Always monitor andAllocate reasonable humanresources when the project isunderway

cleaning cups before and afterlending, how to display andpromote images to givecustomers peace of mind whenusing the same cup with others

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Project Management Group 2

similar campaigns competitors but can provide

Competitors with better service with more value

stronger potential such as more durable and

eco-could invest in better friendly quality, increased

glass or cheaper borrowing time, easy and quick

are plastic, money to environment, so it’s worth to

environmentally

friendly cups is more

expensive and cannot

be applied

RECOMMENDED ACTIONS FOR GRADES OF RISKS

A Mitigation actions, to reduce the likelihood and seriousness, to beidentified and implemented as soon as the project commences as a priority

B Mitigation actions, to reduce the likelihood and seriousness, to be identified and appropriate actions implemented during project execution

C Mitigation actions, to reduce the likelihood and seriousness, to be

identified and costed for possible action if funds permit

D To be noted - no action is needed unless grading increases over time

3.5 Acceptance Criteria

a Detailed acceptance - Each stage of project deliverable development will be

process and criteria signed off by author, project manager, functional leader

appropriate before implemented-The Activities described in this SOW is completed,

b Termination of including provision of the Deliverables Materials

provisions of the Agreement identified in the Schedule

3.6 Estimated time and cost

a Estimated time to complete project work 5 months

b Estimated costs to complete project

100,000,000VND

work

4 Work Breakdown Structure (WBS)

Develop eco-friendly

take-away materials for

Develope software to control the reusable cups

Provide a brief about how the software be like and its

Conduct a research on technology agencies which

Find material suppliers to provide designed

Create a brief with the designed reusable cups and

Make a proposal for others coffee shops to offer reusable

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WP2 Create a list of potential coffee shops 1.3.2

WP1 Advertise on social media (Facebook, Instagram ) 1.4.1

Design promotional materials (voucher, coupons,

Training for main coffee shop's staff on using the

Training for partners' staff on using the software and

At the first scope, 5 work packages are undertaken mainly during August and September Our peoject sets a basis which is strong and secure enough to have a platform for implementing and controlling our system It contains the sketch requiring

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about 1 month and 1 more for building completely detailed software afterobtaining feedback.

Whereas, the period between August and September lasting about 2 weeks is used for creating a brief with the designed reusable cups and reusable straws After the next 1 month, our second scope of contracting with material suppliers will be finished.

As shown in the presented schedule below , September seems to be the most significant month as we take advantage of it to be well-prepared for what-to-do next The software in Deliverable 1 has to be finished, contract with material suppliers in Deliverable 2, prepare a perfect proposal and plentiful database of partners for implementing the software in Deliverable 3, start executing the marketing activities in Deliverable 4 And the last Deliverable for September is Training.

The third, the fourth and the fifth Deliverables are continued until nearlythe end of October, except the process of implementing our software onpartner’s shop, this action will last until 14 December This is also the date wefinish gathering customer's reactions and feedback in Deliverable 6, which isexecuted for approximately 1 month

In the last 3 weeks, we sum up the costs for about 5 days, make finalreports, evaluate and analyze the outcome until 3 January for further lessons tomake another successful project

Totally, our project runs for about 5 months with 6 deliverables including

23 work packages Recently, we have had 8 packages done and 8 ones are inprocessing with the completion percentage fluctuating from 16% to 45%

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Project Management Group 2

Provide a brief about how the

software be like and its functions

with estimated budget

Conduct a research on technology

agencies which could create the software

Review preliminary design document

Obtain feedback/input on design

Finalize agency detailed design

03/08/202009/08/2020

08/08/202022/08/2020 10/08/2020 31/08/2020 01/09/2020 20/09/2020 01/09/2020 30/09/2020

Find material suppliers to provide designed reusable cups, straws

Create a brief with the designed reusable

23/08/2020 06/09/2020cups and reusable straws

Select and purchase material from

01/09/2020 30/09/2020suppliers

Choose and contract with material

20/09/2020 04/10/2020producers

Implement the software on partner's shop

Make a proposal for others coffee shops to 15/09/2020 29/09/2020

offer reusable cups model

Create a list of potential coffee shops 15/09/2020 30/09/2020

Choose and contract with other coffee

30/09/2020 19/10/2020shops

Implement the software on partner's shop 01/10/2020 14/12/2020

Execute marketing activities

Advertise on social media (Facebook,

01/09/2020 30/10/2020Instagram )

Design promotional materials (voucher,

10/09/2020 19/09/2020coupons, flyer, )

Carry out collaborating campaign with

15/09/2020 09/10/2020partners

Run viral clips on cafe-lover forums,

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