Question:

Case study scenario: John Readings Pty. Ltd. Re-design Bookstore Caf

John Readings is an Australian book publisher, distributer and retail business with stores located throughout Australia and New Zealand and a large online business. At present a total of ten retail outlets located in state capitals contain Cafes. As part of the company's future development plans all retail outlets will soon have Cafes located within them. However, before this can happen, the current Caf design for the ten retail outlets need to be refreshed and upgraded. The upgrade includes a fresh new menu, new furniture and layout design as well as a play area for children.

You were successful in your application for the Project Manager role and have just had confirmation from Damian Black CEO that the project steering committee will include the Procurement Director, Marketing Director, the Director of Finance and the Caf Operations Manager. The project is now ready to commence.

An architect has been contracted to design the new look and feel and this has been approved by the steering committee.

The architect and building contractor have provided costing estimates on which the project budget is being based. They have advised, in order to minimise business disruption, the order of works will be:

Stage 1 - Two days (no business disruption)

- Playground fit out and flooring

- Fencing and shade sail installation

- Landscaping and new outdoor furniture

Stage 2 - Two days (caf closure)

- Removal of booths

- Repainting of caf dining area interior

- Laying of floating floor over existing tiled floor caf dining area only

- New dining furniture and artwork

The Procurement Director has identified preferred suppliers for furniture and fit outs including the playgrounds.

Damian Black, CEO has advised the following:

It is assumed the marketing staff will contribute to the project, helping with the branding and other promotional items as required. The existing team is able to fully participate in training where required.

It is assumed construction can take place simultaneously with other project deliverables.

Constraints - budget and time are sufficient for the project, all products purchased for the caf and playground will meet with the organisational quality standards and safety standards. Only approved preferred suppliers will supply equipment and furniture.

The project is dependent on external dependencies, which involves consultation with the architect, building contractor and consultant chef.

Building contractor was chosen based on his assurance that caf shutdown times would be minimised to two days and the trade of the attached bookstore would be able to continue.

Kitchen modifications, equipment and fit out work will not be included in the project and any requirements will need to be drawn from the operational budget for repairs/maintenance/equipment.

You have a budget of $200,000 per store and the project is scheduled to commence on 10/01/2021 and be completed by 10/05/2021.

Case Study Questions......

1. Draft an email to the Project Sponsor to confirm project finance expenditure limits and obtain authorisation to expend resources deemed necessary for the project.

2. Draft an email to the Finance Manager about the project budget. Ensure you ask questions to confirm the requirements of the project budgeting process.

3. You have received a terse email from the consultant chef who is threatening to walk away from the project. He is not happy that the project scope does not include improved kitchen appliances. Document the issues in them in the project issue register you have developed for the project.

4. You have just had a telephone call from the architect who has advised you that the fit out of the Collins Street store will exceed budget as the existing tile floor in the dining room must be removed and the concrete refinished before the floating floor can be laid. Budget costs are expected to be exceeded by $10,000, in addition, the caf will be shut down for an additional 3 days. What actions will you take? Update the issue register to reflect the issues and the solutions.

5. Draft an email to all stakeholders informing them of approval of the project scope which has now been received from the Project Sponsor. Your email must discuss next steps for implementing scope management and must recommend two improvements to the process.