Project Manager: Austin Kenny Sponsor: Mitchell Evans, Vice President of Operations
Date: 01/10/2020
Prepared by: Austin Kenny, Project Manager
Revision History
| Revision date | Revised by | Approved by | Description of change |
| 01/10/2020 | Martin Kilns | Mitchell Evans, Vice President of Operations | To replace non-biodegradable packaging polythene bags with edible packages for ice cream cones (Yarnell Ice Cream Co.) |
Project Goal:
- Introduce the edible customized packaging as a replacement to the paper bags and other non-biodegradable packaging materials
- Ensure that an alternative measure is taken concerning the packaging activities
- Increase customer satisfaction in the authenticity of the new packaging design.
- Increase sales by reducing the cost ofpackaging
- Address Customer preferences on appearance and design
Problem/Opportunity Definition:
- An increased complained by the World Health Organization on increasing amounts of non-biodegradable material and other forms of pollutants within the country
- A close economic consideration on cheaper alternatives to food packaging formed a crucial basis for this proposal
Proposed Solution
- Storage, order and delivery of commodities will still occur at the designated places
- Only well-known and medically certified packaging companies will be given tenders to package the food commodities.
- GlobalGlobal communications and meetings will be held to address issues relating to design and account on profitability arising from Sales.
- A certified medical officer and staff will have a separate office the Packaging Institutions to evaluate the cleanliness of Yarnell’s ice cream packages.
Project Selection & Ranking Criteria Project benefit category:
❑ Compliance/Regulatory ❑Efficiency/Cost reduction ❑Revenue increase
Portfolio fit and interdependencies
- Certified and Acknowledged Packaging Companies, Aesthetic, Superior and Creditable Packaging Designs
Project urgency
- Estimated implementation period 5-6 month.Project to be in effect immediatelyupon completion of the implementation phase
Cost and Benefit Analysis
| Tangible Benefits |
| Benefit
● Introduction of other manufacturing companies to a new market venture ● Increase in profitability due to a reduction in capital cost of purchasing single-use non-biodegradable packages among food processing or production companies ● Customer satisfaction due to regulation of food prices |
| Value & Probability
● Reduced Inventory on Packaging Commodities ● Improves foodquality production
|
| ● Reduces stock from being obsolete
● Leads to technological advancement in terms of food packaging
|
| Assumptions Driving Value
● Additional partnership ● Technological benchmarking
|
| Intangible Benefits |
| Benefit
● Environmental conservation is achieved ● Facilitates strategic planning ● Increases organizational transparency ● Increased organizational responsibility
|
| Value & Probability
● Increased customer satisfaction and brand loyalty ● Opportunities for career advancements |
| Assumptions Driving Value
● Brand Recognition ● Competence |
| Cost Categories | Amount |
| Internal Labor hours | 25,000 |
| External costs (5 delivery trucks) | 65,000 |
| Contractor and Installation Payments | 58,000 |
| Financial Return | |
| Estimate increased annual sales revenue will be 63% |
| Machinery, Safety Gears and other equipment | 1,200,680 |
| Personnel training | 12, 000 |
Business Requirements
- Agreement between Packaging companies and Food Production Industry
- Accreditation and Licensing by the Health Institution
Scope
Major project activities
- Packaging of the ice cream
- Distribution and delivery of commodities to the customers
- Creation of alternative business opportunities to other manufacturing companies.
Out of scope activities that are critical to the success of the project
- Contract terms with other institutions
- Customer appreciation of the diversity of packaging materials
Major Obstacles
- High costs associated with stationing the project
- Inability to access the company’s logo for the new packages
Risks
- Poor coordination among companies that have already adopted the system
- Limitation of Market preference of the original product
- Access to materials that make the boxes edible
Schedule Overview
| Estimated Project Completion Date: 07/16/2020 |
| Major Milestones |
| Approval of the proposed packaging Criteria 04/01/2020 |
| Collection of Project Data 04/10/2020 |
| Submission of gathered data 04/28/2020 |
| Acknowledgement of proposed technical requirements 05/05/2020 |
| Purchase of the new machinery 05/19/2020 |
| Installation of modern Packaging machinery 06/12/2020 |
| Final Launch of the Proposed Project04/20/2020 |
| External Milestones Affecting the Project |
| Economic stance on purchasing Machineries 04/20/2020
Availability of Machineries 04/20/2020 |
| Impact of Late Delivery
Incurred losses to the company Increased CAC of the company accounting to negative customer reviews of the new package
|
Works Cited
Verzuh, Eric. The Fast Forward MBA in Project Management. Wiley, 2016.
Harrison, F. L., & Lock, D. (2004). Advanced Project Management: A Structural Approach. Gower Publishing
Camilleri, E. (2011). Project Success: Critical Factors and Behaviour. Aldershot, England: Gower Publications
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