1. Assignment One: Individual assignment: Project Management

Describe in detail how you would go about planning and controlling a project that you are involved in. In your assessment consider the following:

The factors both internal and external that need to be identified

A project definition of the in terms of:

1. The project objectives2. The project scope3. The project strategy

Project planning and deciding how you would execute the project

The technical considerations required for the project Project control including risk, monitoring and feedback Any other considerations that you feel may enhance your

presentation.

The project is to be presented in the form of a case study.

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Table of ContentsBackground information.........................................................................................3Innovation Culture..................................................................................................3Customer base........................................................................................................4Marketing Strategy.................................................................................................4Expansion southwards............................................................................................5

The Project.................................................................................................................6Desription...............................................................................................................6Need........................................................................................................................6Feasibility...............................................................................................................6Cost Effectiveness..................................................................................................6

Project Planning and Control.........................................................................................7Stakeholders impacting on the project.......................................................................7

Customers...............................................................................................................8Society....................................................................................................................8Government............................................................................................................8Creditors.................................................................................................................8Shareholders...........................................................................................................9Manager..................................................................................................................9Owners...................................................................................................................9Employees..............................................................................................................9

Scope............................................................................................................................10Project Objective......................................................................................................10Deliverables..............................................................................................................10Technical Requirements...........................................................................................13Limits and Exclusions..............................................................................................14Risk, monitoring and feedback.................................................................................15

Conclusion....................................................................................................................16

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Background informationGorima’s has been in the spice business since 1981, for almost 30 years. The

company began by producing a single innovative product, Magi Masala. This product

was the first of its kind in South Africa, and probably in the world. What made Magi

Masala unique was the fact that it was the first all-in-one spice blend that could be

used to cook a traditional South African Indian curry. Unlike other “dry” curry

powders it was referred to as a “wet” Masala because it contained fresh ginger and

garlic. Due to a lack of marketing resources, the product was promoted at flea markets

and sold on a door-to-door basis. On this basis, one of South Africa’s leading

supermarket chains – OK bazaars – opted to list Magi Masala in the stock listing for

its Durban stores. From here, the company grew by introducing new variants to the

original product as well as obtaining listings with other supermarket chains.

In 1986, Gorima’s branched out into direct retail by opening a store at Durban’s first

shopping mall – The Workshop – in the CBD. Again, this concept was a first for

South Africa – no store existed at the time that specialised in the retail of spice and

curry blends. This store was 11 square metres in size, located in a hidden corner of the

mall. What drew customers to the store was the delightful aroma that emanated from

it bringing in many a curious individual. These individuals would leave as delighted

customers, excited at the prospect of being enabled to prepare their own curry. At that

time, however, there were insufficient stock line items to fill the shelves of the store.

Innovation Culture

From the first day of trade, the culture of Gorima’s has been one of innovation with

regard to its product offerings. The input and feedback from customers have been

invaluable in growing the company’s product line. In doing so, Gorima’s has moved

on from being a store specialising in Indian food ingredients to one that offers

products for use in Indonesian, Japanese and Thai cooking. As customers demand

more healthy food options, products like dried fruit, nuts and seeds have become an

important stock item for Gorima’s.

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Customer baseFrom being a manufacturer and wholesaler of a single product, Gorima’s has become

the dominant spice retailer in the Durban market. The growth of Gorima’s can be

attributed to the shopping patterns of its customers. As customers moved away from

shopping in the CBD to malls in Durban’s suburbs, Gorima’s opened stores in those

malls to keep their custom. As a result Gorima’s stores can also be found in City

View (formerly known as Game City), Gateway, La Lucia, Musgrave, Pavilion and

Westwood shopping malls. Gorima’s also has a strong domestic tourist customer base

and this necessitated opening a branch at uShaka Marine World as well.

Apart from a loyal local customer base, customers from other parts of South Africa

regularly purchase their spices either by telephone or on their annual holiday visits to

Durban. Gorima’s customers can be found in all continents around the world – either

being South Africans settled abroad or people who have visited Durban from abroad.

Gorima’s has won the Your Choice Award for “Best spice shop” five times in the six

years the competition has been run. These awards are given to businesses that have

been voted for by the readers of Durban newspapers published by Independent

Newspapers. Ironically, Gorima’s spends virtually nothing on advertising and relies

heavily on word-of-mouth promotion.

Marketing StrategyThe marketing strategy of Gorima’s is to be well located i.e. in high traffic areas of

shopping malls close to a major anchor tenant that in most cases is a national

supermarket chain. This strategy ensures maximum physical exposure to potential

customers as well as convenience to regular customers. This is a costly strategy as

gross rental expenditure amounts to R1000 per square meter in some locations. For

this reason, Gorima’s is not faced with heavy competition in the retail trade. This also

means that Gorima’s has not been motivated to spend on marketing efforts like

research and promotions to bolster its brand. The growth of Gorima’s has been due to

its interaction with its customers and the personal level of service that it offers. The

challenge that the company faces, amidst this growth, is how it will retain its personal

level of service. The fact that Gorima’s has been an owner managed operation since

inception meant that it was in contact with it customers on a daily basis when there

were less than 4 stores. As the distribution centre grew and 4 more stores were added,

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owner focus has shifted, unintentionally, to other operations issues like human

resource management, stock management and accounting procedures away from the

driving force of the organisation, the customer.

Expansion southwardsGorima’s presence in Durban is strong in most parts of Durban i.e. Central (City

View, Musgrave, Workshop, uShaka), North (Gateway, La Lucia) and West

(Pavilion, Westwood). In the South of Durban, Gorima’s does not have a presence,

which makes is inconvenient for customers from areas like Isipingo, Umlazi,

Chatsworth and Amanzimtoti. To serve these areas two malls have opened namely,

Umlazi Mega City in 2006 and Galleria, Amanzimtoti in 2009. A spice store has

already opened in Galleria since the mall opened and this means that Gorima’s has

lost the custom of those individuals frequenting that mall. In order to retain its

position as the dominant spice retailer in Durban, the owner/managers of Gorima’s

have authorised the opening of a new store in the south of Durban, either at Umlazi

Mega City or at Galleria.

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The Project

Desription1. To plan and execute the establishment of a new Gorima’s store in a mall south of

Durban by 31 October 2010.2. The project manager is Arshad Moola.

Need1. To have a fully operational Gorima’s store in the south of Durban before the 2010

festive period.2. To become a well-known purveyor of good taste to shoppers in the south of

Durban by December 2011.

Feasibility1. The project was deemed feasible for the following reasons:

a. Research has shown that both Umlazi Mega City and Galleria have become shopping destinations for residents of the areas surrounding them.

b. Customer feedback from existing Gorima’s has shown that they would like a store in these malls.

c. The project manager chosen for the task has had experience in the establishment of 5 other Gorima’s stores and has 10 years of experience working at Gorima’s.

Cost Effectiveness1. Choosing to establish a business in malls with an already-developed, relatively

stable and growing level of foot-traffic like Umlazi Mega City and the Galleria would mean that the business would be making a profit from the first day of trade.

2. The profitability of this business would make it pay for itself within a year of being first established.

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Project Planning and Control

Stakeholders impacting on the projectThe stakeholders affecting this project consist of parties who are in Gorima’s as well as outsiders who will be vital to the continued functioning of the business.

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SuppliersSuppliers for this project range from once-off suppliers, who will supply goods and services only up to the completion, to regular suppliers who will continue to supply the business entity on a regular basis after completion of the project.

Once-off suppliers Palfridge Kzn – coolers and freezer Badat’s Appliance Store – freezer, microwave oven Klint Scales – Scale Simane Woodworks – all shop fitting i.e. shelving, displays, counters; tiling;

plumbing Paul Tomlinson – air extraction system Budget caterware – samoosa fryer and counter-top oven Makro – fax machine and cordless handset Surveillance options – CCTV recording system Brainwave Projects – Signage

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Partners in Design – Store layout and design specifications HL Electrical – Electrical connections and light fittings

Regular suppliers Atomgate – Internet service provider Standard Bank Merchant Services – Credit Card sales processing terminal Telkom – Telephony and ADSL line rental Gorima’s Warehouse – inventory supplier of approximately 70% of goods HRK Africa – Point of sale computer system and ongoing support Home Industries – daily supply of various fresh food items Old Mutual Investment Group Property Investments – landlord of prospective

site at Umlazi Mega City Broll – managing agent of Galleria Wholesale inventory suppliers – deliver to the store on a weekly basis Furm packaging – packets and consumables MI Cassim Brokers - Insurance

CustomersCustomers of Gorima’s would be the regular patrons of either Galleria or Umlazi Mega City. The demographic profile of these customers is to be provided by the respective landlords or managing agents.

SocietySociety would encompass all the people and groups in close proximity to the prospective site.

An important source of customers is the employees of the stores located in the prospective mall.

The relationships that Gorima’s has with its immediate neighbours in the mall are also key to the effective functioning of the business.

GovernmentLocal government regulations stipulate that store plans must be submitted to the municipality for approval before shop fitting commences. Due to the nature of goods being sold, a certificate of acceptability must also be obtained from the local health department.

CreditorsCreditors will include all suppliers initially. All once-off suppliers’ accounts will be settled within 90 days of the store opening. Regular suppliers will be settled within 30 days of them supplying a statement of account.

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ShareholdersThere is to be no external shareholding of the store. All shareholders are to be involved, directly or indirectly, in the running of the store.

ManagerThe manager of the new store will also be a part owner of the business.

OwnersOwners of the new store are to comprise:

Existing shareholders of other Gorima’s stores – 60% New store manager – 40%

EmployeesNew staff would have to be recruited and trained in existing stores for at least six weeks prior to opening the new store. These staff would have to be computer literate in order to operate the point of sale software as well as the digital recording system.

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Scope

Project Objective1. To have a new Gorima’s store ready to trade on Saturday 30 October 2010.2. Performance to be measured on:

a. Time – Completion of all setting up operations within in the period of beneficial occupation granted by the landlord i.e. 1 month.

b. Cost – Using available funds to complete the required tasks.c. Target - to have a fully-fledged branch running by 1 November 2010.

Deliverables1. Functional kitchen for the purposes of cooking only where preparation cannot take

place, compliant with health regulations2. Cold storage for the goods required for cooking.3. Cold storage for frozen goods sold as is.4. Cooling for beverages to be sold.5. Shelving, displays and other merchandising fittings in accord with other Gorima’s

stores.6. Weigh station for sale of loose masalas.7. Operational point of sale system compatible with the weighing system.8. Digital video recording system9. Adequate ambient and display lighting.10. Signage consistent with Gorima’s branding.11. Connectivity with Gorima’s Head Office.12. Certificate of Acceptability from the Department of Health.

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Milestones

Activity

Significant Event

Expected Date of

Completion

Resources required/3rd

Part contracted

Time Assessment Immediate

Preceding Activity

A Design process 25 September 2010

Project manager, Owners, Manager, Designer (Partners in design)

2 weeks

-

B 3rd Party briefing 30 September 2010

Project Manager, each of the 3rd parties in separate meetings

1 week

A

C Premises key handover

1 October 2010

Landlord, Simane Woodworks

1 Day

B

D Tiling 4 October 2010

Simane Woodworks

3 days

C

E Plumbing 7 October 2010

Simane Wood Works

1 Day

D

F Electrical and light fitting installation

7 October 2010

HL Electrical

1 Day

C

G Drywall partitioning

6 October 2010

Simane Woodworks

3 Days

D

H Extraction and ducting installation

8 October 2010

Paul Tomlinson

2 Days

D,F

I Display manufacture

11 October 2010

Simane Woodworks

13 Days

B

J Shelving procurement

11 October 2010

Simane Woodworks

13 Days

B

K Shelving and display installation

18 October 2010

Simane Woodworks

5 Days

G,I,J

L CCTV Installation

19 October 2010

Surveillance Options

1 Day

F,K

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Activity

Significant Event

Expected Date of

Completion

Resources required/3rd

Part contracted

Time Assessment Immediate

Preceding Activity

M Appliance delivery

19 October 2010

Badat’s Electrical, Palfridge KZN, Project Manager, Budget Caterware

1 Day

L

N Signage installation

19 October 2010

Brainwave projects

1 Day

F

O Phone Line installation

19 October 2010

Telkom SA 1 Day

F

P Point of Sale Hardware installation

19 October 2010

HRK Africa, Project Manager

1 Day

F,K

Q Insurance 15 October 2010

MI Cassim Brokers, Project Manager

1 Day

C

R Site inspection 20 October 2010

Project Manager, Owners, Manager

1 Day

P

S Troubleshooting 25 October 2010

Respective 3rd Parties, Project Manager

3 Days

R

T Key handover to manager

26 October 2010

Manager, Project Manager

1 Day

S

U Software training

26 October HRK Africa, Manager, Staff members

1 Day

T

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V Inventory Receiving & Merchandising

29 October 2010

Manager, Owners, Project Manager, Staff members

4 Days

U

Activity

Significant Event

Expected Date of

Completion

Resources required/3rd

Part contracted

Time Assessment Immediate

Preceding Activity

W Credit Card Terminal Delivery

26 October 2010

Manager, Standard Bank Merchant Services

1 Day

V

X Certificate of Acceptability

29 October 2010

Project Manager

30 Days

-

Y Store Opening 30 October 2010

Store open to trade. Owners, Manager, Staff members, Project Manager.

- X,W

Technical Requirements1. Fully tiled shop-floor.2. Wall-bands and shelving installed as per design requirements.3. Masala counter as per design requirements.4. Electronic weighing scale, SABS approved with barcode label printer.5. Impulse Heat sealer, 400mm.6. Electrical and lighting as per design requirements.7. Anvil electric fryer with dual frying bowls each with a 5 litre capacity.8. Anvil count-top oven, electrically powered.9. Stainless steel table, 1.2m x 1.5m.10. Hand-wash basin, with plumbing.11. Dual-sink commercial-application wash basin with plumbing for hot and cold

water.12. Air extraction system as per design requirements, fully compliant with health

regulations.13. Chest freezer, 320 litre capacity.14. Sliding double glass door Merchandiser fridge, 1140mm wide.15. Swing single glass door freezer, 650mm wide.16. HRK Point of sale terminal with barcode scanner, cash drawer and receipt printer;

linked to back-office system at Gorima’s Head Office.

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17. Telkom ADSL line.18. Internet connectivity.19. 4 Camera digital video recording system, linked to Gorima’s Head Office.20. Cordless telephone.21. Fax machine.22. Samoosa and savoury display unit, with in-built heating to comply with health

regulations.23. Gorima’s signage, as per design requirements.

Limits and Exclusions1. Warranties for all equipment, shop fittings and displays to be transferred to the

client.2. Lease negotiations to be conducted by owners and manager.3. Choice of mall to be decided upon by the owners and manager.4. Choice of store location within mall to be decided by the owners and manager. 5. Inventory procurement and merchandising thereof will be the responsibility of the

owners and manager.6. Staff recruitment and training to be conducted by owners.7. Meetings with designer to be conducted jointly i.e. owners, manager and to be

present.

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Risk, monitoring and feedbackRisk Risk Level

L/M/HLikelihood of Event

Mitigation Strategy

Project Size    Person Hours L : approx 150 man

hoursCertainty Assigned project manager,

Involved owners, new manager has been recruited, Landlord co-operation imperative

Estimated Project Schedule

L: 1 month Certainty Planning detailed, execution tracked 6-hourly

Team Size at Peak L: 20 members Certainty Ensure each subcontractor works to specified timelines

Number of Interfaces to Existing Systems Affected

H : Minimum 3 Certainty All team-members are involved in other day-to-day activities – project to be carried over quiteter business time

Project Definition    Narrow Knowledge Level of Users

M: Owners and manager have high level of experience in specific fields

Likely Newer components of business need to be highlighted to all parties

Project Scope Creep L: Similar projects have been executed before

Unlikely Regular meetings with all parties

3rd Project Deliverables L:Design specifications will be detailed

Unlikely Alternative vendors should be kept on standby

Timeline Estimates Unrealistic

L: Most parties involved have worked on a similar type of project

Unlikely Consult with vendors regarding timelines

Number of “one-man” 3rd party vendors

H:at least 3 vendors are sole-owner businesses

Unlikely Vendors should be bound by contract in which clauses stipulate that they will pay alternative contractors if needed

Project Leadership    Owners and Manager Focus

M: team members involvement in non-project operational issues will distract attention away from project

Likely Team members should be penalised for slow delivery, a team ethos and culture needs to be established early on

Absence of Commitment Level/Attitude of Users

M:Salaried team members won’t work past specified times

Likely Incentivise achievement of deliverables, promote importance of each members input

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Risk Risk LevelL/M/H

Likelihood of Event

Mitigation Strategy

Project Staffing M:Labourers of 3rd parties not in control of project manager

Unlikely 3rd Party vendors to ensure that all their staff are not left unsupervised

Physical Location of Team prevents effective management

M: Key team members are not in close proximity to site

Unlikely Arrange transport for team members at all times

Project Team’s Shared Work Experience creates poor working relationship

M: Differing views will hamper progress

Unlikely Strong leadership is necessary as well as a mandate to the project manager to make final decision on disputed views

Project ManagementProcurementMethodology Used foreign to team

L: All vendors have been used before, of which some are still new

Unlikely Owners and manager to meet all vendors in person

Quality Management Procedures unclear

H: Quality control has been assigned to 3rd party vendors

Likely Onsite checks to be done daily

LandlordHours of work M: Mall management

strict about work-times of contractors

Likely Brief mall management before work commences, ensure all 3rd party vendors are aware of centre rules

Security L:Mall security is usually tight making a safe environment to work in

Unlikely A log must be kept of all key holders

Waste management M:Mall management stipulates that all waste must be disposed of off-site

Likely All contractors to be briefed on disposal of their waste

ConclusionWhile not an overly complicated project, the following is essential for efficient and effective completion thereof:

co-ordination amongst all parties directly involved in the store, constant communication with all parties involved, keeping them up to date

with the progress of the project as a whole and when each of the parties will have to make their contributions,

regular visits to the site by the project manager to ensure that work is done to the owner’s satisfaction,

ensuring that design plans are followed, troubleshooting any design flaws with the designer and the contractor

concerned.

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