Sunderland Faculty of Business & Law Undergraduate ProgrammesSIM 335 MANAGING PROJECTS

Individual Assignment Report

Project management for Juron Ltd. and Jigama Ltd. in executing business strategy

by Pham Trung Hieu, Intake 4 | ISME, National Economics University, 2011

Hanoi, 2011

1

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.

1.1 Network diagram (AON) (see Appendix 1)

To complete project, network diagram has “START” activity and “FINISH” activity at

the beginning and the end. They are “dummy” activities.

1.2 Timing of activities

Determining timing of activity concerns about activity’s Earliest-Start-Time, Earliest-

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

(2005), EST/EFT are calculated using forward pass and 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 (not start) is equal to EFT of its immediately predecessor.

EST(n)=EFT(n-1)

When multiple tasks converge, next activity’s 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.

2

Backward pass:

LFT of the ending activity equals to its EFT. LST formula:

LST(n)=LFT(n)-D(n)

LFT of each activity (not end) is equal to LST of its immediately successor.

LFT(n)=LST(n+1)

When multiple activities converge, previous activity’s LFT equals to the lowest of

succeeding LST times. Example: H has 2 successors: I, J and LST(I)=34<LST(J), hence

LFT(H)=LST(I)=34. The reason is activity I has to be implemented right before activity H.

Float or slack is “…the time available for an activity in addition to its estimated

duration”(Field and Keller, 2005). Thus,

Float(n)=LFT(n)–EST(n)–D(n)=LFT(n)–EFT(n)

Example: Float(C)=LFT(C)–EFT(C)=13–8=5

Activity total float and project float are presented in a tabular (see Appendix 2.)

1.3 Project duration and critical path

Wideman (2002) defines “project duration is the elapsed time from project start date

through to project finish date.” In this case, the project starts from activity A and ends at

activity Q. The project duration is activity Q’s LFT, equals to 93 days.

Critical path is “…the longest path from beginning to end of the project” (Field and

Keller, 2005). Therefore, project’s critical path is A-F-G-H-I-K-L-M-N-O-P-Q (see

Appendix 3.)

3

1.4 Calendaring project

Project’s 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 project 2 days.

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

delays project 1 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 project and 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.

4

There are difficulties in estimating duration. The manager’s objective opinions

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

doubled.

Non-flexibility in controlling the balance of project’s time, cost and quality because of

over-emphasis the importance of critical paths.

(Word count: 600 words)

5

APPENDICES FOR SCENARIO 1

Appendix 1

Critical pathNon – critical path

: Continuous

EST: earliest start time.D: duration (days)EFT: earliest finish time.LST: latest start time.LFT: latest finish time.

Activity Identifier

LST Float LFT

D EFTEST

1START0 0 0

0 00

K41 0 49

8 44

G13 0 26

13 21H

26 0 34

8 32

I34 0 41

7 43

J35 1 41

6 403

F4 0 13

9 134

E7 3 13

6 104

C9 5 13

4 84

D5 1 13

8 124

A0 0 4

4 40

B8 4 13

5 9T4T

1 FINISH9 0 93

0 939Q

8 0 9

5 98

N71 0 75

4 757O

7 0 7

4 797

P7 0 8

9 87

L49 0 62

13 64M

62 0 71

9 76

1

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 float 14

8

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 project plan 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.

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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

10

Earliest Finish Time = 93 days = 18 x 5 day weeks + 3 days = Wednesday, 23rd May 2012

Or the project’s finish date can be determined through the length of activities on critical path

as below:

Activity Duration Earliest finish date

Start 0 Monday, 16th January 2012

A 4 Thursday, 19th January 2012

F 9 Wednesday, 1st February 2012

G 13 Monday, 20th February 2012

H 8 Thursday, 1st March 2012

I 7 Monday, 12th March 2012

K 8 Thursday, 22nd March 2012

L 13 Tuesday, 10th April 2012

M 9 Monday, 23rd April 2012

N 4 Friday, 27th April 2012

O 4 Thursday, 3rd May 2012

P 9 Wednesday, 16th May 2012

Q 5 Wednesday, 23rd May 2012

11

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

12

Appendix 5 a. If activity B is delayed 2 days

2

1

1

START0 0 0

0 00

K41 0 49

8 44

G13 0 26

13 21

H26 0 34

8 32

I34 0 41

7 43

J35 1 41

6 403

F4 0 13

9 134

E7 3 13

6 104

C9 5 13

4 84

D5 1 13

8 124

A0 0 4

4 40

B8 4 13

5 16

FINISH9 0 93

0 939Q

8 0 9

5 98

N71 0 75

4 757O

7 0 7

4 797

P7 0 8

9 87

L49 0 62

13 64M

62 0 71

9 76

BA 2 days delayed

: Contingency effect

13

Appendix 5 b. If activity P is delayed 2 days

Appendix 5 c. If activity O is delayed 1 day

1

1

START0 0 0

0 00

K41 0 49

8 44

G13 0 26

13 21

H26 0 34

8 32

I34 0 41

7 43

J35 1 41

6 403

F4 0 13

9 134

E7 3 13

6 104

C9 5 13

4 84

D5 1 13

8 124

A0 0 4

4 40

B8 4 13

5 94

FINISH9 0 95

0 959Q

9 0 9

5 99

N71 0 75

4 757O

7 0 7

4 797

P8 0 9

9 981

L49 0 62

13 64M

62 0 71

9 76

14

ON 1 day delayed

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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 responding to demands of large 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 identifying scope of time, layout ratio, and decision variables; 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 within 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 to Field

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

warehouse’s staffs are experienced and acquaint with routine tasks, an assistant 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: Plan

a. Warehouse design

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First step in this phase provides work breakdown structure (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 objectives…” that 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 task’s 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 definitive estimation (first) 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 in Appendix 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 company’s 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 software for the project is the best supporter for manager to have a quick overview.

c. Monitoring staff, schedule and costs

Monitoring and controlling 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)

Monitoring and controlling cost see 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 system or 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 company’s 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 company’s 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 concerns about 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 stages of the project life-cycle in his specialization. According to Field 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” by employing people with right knowledge, right skills,

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

manager’s skill of leadership to 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 processes like “an users guide” 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 placed correctly.

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 analysisFeasibility study

Functional specificationScenario developmentCost-benefit analysisSet objectivesTeam appointing

Plan

Warehouse design

Identify critical activities, time,

Time, cost managementRisk analysisQuality assurance planning

Organize

Organize team

Assign work

Execute

Issue change ordersReview project status

Report on project Review schedule and budgetQualifying

Close

Obtain client acceptance Complete documentation

Sign off Conduct post implementation audit Maintenance Value assessment

Install deliverablesEstablish control toolsRecruit staff

Sequence tasks

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

in adequate space with the proper equipment by well trained personnel in a properly planned layout

results in maximum protection of 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 152East Asia & Pacific (all income levels) EAS 161East Asia & Pacific (developing only) EAP 181Euro area EMU 221Europe & Central Asia (all income levels) ECS 216Europe & Central Asia (developing only) ECA 233European Union EUU 199Heavily indebted poor countries (HIPC) HPC 246High income HIC 169High income: non OECD NOC 176High income: OECD OEC 165Latin America & Caribbean (all income levels) LCN 220Latin America & Caribbean (developing only) LAC 220Least developed countries: UN classification LDC 250Low & middle income LMY 221Low income LIC 290Lower middle income LMC 199Middle East & North Africa (all income levels) MEA 156Middle East & North Africa (developing only) MNA 181Middle income MIC 200North America NAC 58OECD members OED 164

28

South Asia SAS 241Sub-Saharan Africa (all income levels) SSF 240Sub-Saharan Africa (developing only) SSA 240Upper middle income UMC 201World 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, Jimaga’s 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

Current trend in 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 uncertainties come 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 £10,000Year 3 £15,000Year 4 £25,000Year 5 £20,000Total £75,000

IRR 20%NPV (at 5%) £63,028

Payback Period (Years) 3.40

ROI (NPV – Investment) £23,028

Appendix 5

According to Amy Maranowicz, 2011

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Appendix 6

31

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

Level 4Level 3Level 2Level 1

Opening new warehouse

Developing a prototype

Measuring merchandise

Classifying materials

Space allowances

Building & Services

Determine features

Equipment & Handling

Layout

Organization & people

Job descriptions

Job apportionate

Training

Security & Safety

Emergency, lock systems

Protection clothes

Operating warehouse in

emulation

Evaluating & reviewing the

warehouse

Finalizing the warehouse

32

Measuring 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 characteristics of the new building and

space for office to 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 grid layout for the warehouse included merchandise, building, services,

equipment and machines, security and safety is visualized.

The warehouse worth nothing without putting people in. As Jimaga’s plan, 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, security 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.

33

Lastly, the warehouse is finalized, assessed and accepted by the company’s manager. It then

will be put into operation.

Appendix 7

Activity Identifier Activity Description Duration

(days)Human

Resources Predecessor

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

G List equipment and handling machines for warehouse and office 1 1 -

H Determine space, necessity, volume for equipment and machines 3 2 G

I Purchasing equipment and machines 14 2 H

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

K Purchasing equipment for security and safety 7 2 J

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

Q Reconstructing building in necessary 15 5 L, P

34

areas

R Putting equipment and machines to warehouse and office 2 5 Q

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 Company’s manager check and accept 1 2 X

Z Completing document, sign off, delivering outcome 5 4 Y

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2

START0 0 0

0 00

G13 0 26

13 21

H26 0 34

8 32

E7 3 13

6 104

A0 0 4

4 40

B8 4 13

5 9T4T

N71 0 75

4 757

M62 0 71

9 76

K41 0 49

8 44

I34 0 41

7 43

J35 1 41

6 403

F4 0 13

9 134

C9 5 13

4 84

D5 1 13

8 124

O

7 0 7

4 797

P7 0 8

9 871

L49 0 62

13 64

3W

8 0 9

5 98V

8 0 9

5 98U

8 0 9

5 98

T

8 0 9

5 98

S

8 0 9

5 98

R

8 0 9

5 98

Q

8 0 9

5 98

2

1

3 Z

8 0 9

5 98

FINISH9 0 93

0 939Y

8 0 9

5 98X

8 0 9

5 98

36

Appendix 8

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

The Ballpark Estimate comes from corporate objectives, normally draws a “bird’s eye view” of 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 Definitive 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:

37

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

Estimate cost proportion of opening the warehouse

Appendix 9

Source: Energy Institute

Layout areasRedesign floor, ceiling, wall, door

MachinesShelves, binsPreservation

ComputersSoftwaresPrint, fax

38

Appendix 10

Source: The Business Owner, 2009

Appendix 11

Example for a warehouse risk identifications:

39

40

41

42

Source: Health and Safety Executive, 2007

Appendix 12

A proposed work assignment for warehouse project:

43

According to Field and Keller (2005)

Appendix 13 (According to Spirer, 1983)

Project manager

Warehouse administrator

Warehouse staffs

Contracted labors

Human resource manager

Contracted staff

Financial manager

Contracted staff

Assistant manager

supporting

Financial information, cash flow, budgeting

Recruiting, staffing, contracting, payroll

Constructing, operating

supportingsupporting

controlling

Managing whole project: people,

process, warehouse

Developing prototype, controlling, analyzing

& reviewing

Documenting, scheduling,

servicing meeting, facilities

reporting

Operating, supporting

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 be reassigned -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 remaining deliverables -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 -disposing of material of project

-agreement with client on remaining deliverables-obtaining needed certifications -agreement with suppliers on outstanding commitments-communicating closures -closing down physical facilities -determining external requirements for audit trail data

44

Appendix 14

For the project manager’s competencies, it should 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

Don’t let deadline decide work

Create visual feedback system

o Everything clarity

o Focus

o People accountability

(According to Deborah Bigelow, 2000.)

45

REFERENCES

Books

Bigelow, D. (2000) What makes a good Project Manager, Expert Series, PM Solutions, April 2000,

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Hall, New York

Burke, R. (2003) Project Management, Planning and Control Techniques. John Wiley and Sons

Field, M., Keller, L. (2005), 6th ed., Project management. Open university, Thomson, London, pp. 35-

289

Nicholas, J.M and Heinemann E. B. (2004) Project management for business and engineering

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Paul Shoemaker (1993) Multiple Scenario Development: its conceptual and behavioral foundation,

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Rook, P. (1991) ‘Project planning and control’ in McDermid, J.A. (ed.) Software Engineer’s Reference

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Spirer, H. F. (1983) ‘Phasing out the project’ in Cleland and King op. cit.

Tompkins, James A. and White, John A. Facilities Planning, John Wiley and Sons, New York, 1984.

Tompkins et al. Facilities Planning, 2nd. ed., John Wiley and Sons, New York, 1996.

Westland, J. (2007) The project management life cycle, AEW Services, Vancouver, BC, p. 7

Weiss, J. W. and Wysocki, R. (1994) 5-Phase Project Management: A Practical Planning and

Implementation Guide, Addison-Wesley, Reading, Mass

46

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BusinessDictionary (N.D) [Critical Path] [online] (cited 20th December 2011)

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47

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48