Due Week 4: Work Breakdown Structure According to the PMBOK Guide, "the WBS is a deliverableoriented hierarchical decomposition of the work to be executed by the project team, to accomplish the project objectives and create the required deliverables." In other words, it lists the project's deliverables and work packages. For this week, you will create a work breakdown structure (WBS) for the project you selected during Week 1. Remember that the WBS starts with your major deliverables (that you stated in your scope management plan) at the highest level. The lower levels have the work package required to complete those deliverables. Review the textbook (and the PMBOK Guide, if you have it) for some suggestions on how to create a WBS. From your work breakdown structure, develop a project task list with dependencies and add durations, using MS Project. Develop the Work Breakdown Structure Your WBS should have a minimum of 100-150 line items in MS Project and be three levels deep. Make sure to use verb-object task names (for example, "Develop software"). Enter tasks in MS Project. Create the predecessor relationships. DO NOT LINK SUMMARY TASKS OR ASSIGN RESOURCES! Deliverables for Week 4: Statement of Participation and status update The MS Project file (.mpp) saved from the Tracking Gantt chart screen Project Scope Statement Project Name All Jacked Up Coffee Shop Project Manager Owner(s) Jane Doe John Smith Project Number Prioritization 1 Statement of WorkProject Description and Project Product Our team will be creating a 3,500 square-foot coffee shop offering superior and delicious coffee for patrons and students near DeVry University. Our vision is to create a comfortable and relaxing space for the common business man or woman, student, and every day person in need of a pickme-up. Starting from the outside, the parking lot has approximately 55 parking spaces available, as well as 5 10-bike racks in the immediate or close vicinity. 4 metal tables with 4 chairs each are placed outside to allow customers to enjoy their beverage outdoors, weather permitting. When you walk inside, there is no bell on the door to alert that a customer has come in, as this can be distracting for patrons and it is not needed. Employees will have direct view of every customer who walks in. You will notice 2 security cameras, one to the left and one to the right near the entryway. Loveseats, lounge chairs, and tables are set in a comfortable fashion, some for socializing and group projects and individual working spaces for quiet work. Each work station has a charging port for cell phones, laptops, etc. along with free Wi-Fi. Soft jazz music plays to fill the voids of silence from a Bose Radio and the rest of the room has 3 more security cameras hidden for optimal safety. We will be purchasing local art from DeVry University made by students to be placed on the walls as inspiration. The location of this facility will be its main financial support. Once a steady relationship has been established between DeVry University students and faculty, more and more benefits will arrive. This coffee shop will be able to provide some students with part-time jobs and experience in the Hospitality and Retail world, as well as a meeting place off campus to network and establish relationships. If coffee is your main objective, we offer different blends of Diedrich Coffee-each made individually based upon your request of size. Because we use specifically Keurig Green Mountain machinery, you can expect each and every cup to be filtered through Chemex filters to remove all fats and oils to give the smoothest cup. Coffee will range from $4.25 to $6.75 plus tax depending on size (12oz, 16oz, 24oz), and each cup of coffee will take approximately 76-83 seconds from grounds to cup. While the customer does pay a little more per cup than they would at your average coffee joint, customers are satisfied knowing they deserve and are worth a cup of coffee specifically brewed for them. Each order begins with coffee beans grinded through a conical burr grinder, the grounds placed in the Keurig machine, and given to the customer in a porcelain mug or a to-go cup with our signature logo. The cost of the cup of coffee also covers the cost of Wi-Fi and electric resources available. If you desire a different beverage, we do also offer varieties of teas, ranging from fruity and sweet green teas to spicy, rich black teas that are also brewed similarly to our coffee. Each cup of tea will take approximately 2-5 minutes to make as we steep each cup individually with as much care. This will be made with Twinings Tea bags - not through a machine as we may lose valuable flavor. We will also have different varieties of lattes and espressos available for those that require something a bit stronger. The new KOLD Drinkmaker will allow us to also purchase sparkling soda K-cups to make flavored sparkling waters and flavored iced teas. Small pastries and healthy snacks will be available for purchase. Local fruit will be brought in to sell depending on the season, specifically bananas, apples, oranges, etc. Pastries will be bought from CloverHill Bakery to provide Danishes, cinnamon rolls, donuts, and honey buns. We will be purchasing individually wrapped pastries as we will not be equipped with a kitchen at this time. Our dishware will be purchased from Webstaurantstore.com, which will be Windsor Flatware Stainless Steel Dinner Forks, Windsor Flatware Stainless Steel Dinner Knives, Windsor Flatware Stainless Steel Teaspoons, Libbey 5 7/8\" Cappuccino Saucers, and assorted sizes of Libbey Tempo mugs. Our janitorial supplies such as mops, brooms, counter cleaners, fire extinguishers, wet floor signs, garbage bags, paper towels, and toilet paper will come from the same website. Other coffee-related consumables such as stirs and sugar will come from Keurig. We plan on purchasing other utensils needed such as carafes for milk and latte art wands from Keurig. The first 1-2 weeks will include our team laying out the entire facility on a blueprint. This includes where furniture will be placed, what electrical units need to be added and where, and how the back of house will be laid for efficiency. The main quarters will take up about 2,500 square feet of the facility. This leaves 1,000 square feet available for the counter, storage, and office space. The counter and work space will take up about 400 square feet, leaving about 300 square feet in the back for one dry storage closet as well as one small room for a dishwasher/cleaning products. We will utilize about 100 square feet for an office and about 100 square feet for 2 bathrooms (both unisex) and the remainder 100 square feet will be a hallway space. Electrical Inc. has been hired as our licensed electrician to install all added electrical outlets as well as make sure the proper number of breakers are installed. Most of these units will require higher voltage, so it is important that the electrician makes this available. Plumbing Inc. will be installing both toilets and sinks, as well as the dishwasher and mop station, small rinse sink at the counter, and ensure all existing water lines are flushed and cleaned. POS Inc. will be installing our POS system in order to track sales. Because the building is an existing building, we are anticipating no need for an HVAC company's assistance. Everything installed, hopefully allowing electrical and plumbing to slightly overlap, will take approximately 2-4 weeks. High-level tasks will include proper sanitation practices when installing and operating all back of house equipment and design and flow of the front of the house. In order to meet full potential for comfort and concentration, the flow and layout of the front of the house will be a task requiring some interior design and psychology background. We expect to have high quality furniture that is built to last and comfortable. The lighting will be adequate but not blinding. We will purchase minimal overhead lighting and will rely heavily on natural sunlight. Luckily, the building faces the East, so when the sun rises, we have top-to-bottom windows with retractable blinds that would face the counter staff. During the day, patrons sitting on either side will enjoy sunlight, but not direct sunrays. We will have computer lamps set up on the larger tables for those that need additional light. Wayfair.com will be utilized for finding furniture to fit the dcor and ambience the client is looking for. As of now, it has not been decided whether it will be picked out by a team member or by a hired design artist. We expect the front of the house to take 3-6 weeks to perfect. Behind the counter, efficiency and consistency will be key. Because every cup is brewed individually, baristas cannot waste any time on other tasks. Every task performed behind the counter will be as efficient as possible, making an easy flow. Equipment will be in close vicinity, tableware will be brought in from the dishwasher between down-times as well as when coffee is brewing. 2 clear-glass coolers will be available with a simple rotation of the body and 2-4 steps away from the equipment to hold milk, cream, etc. and 1 register will be available through our HP Pavilion 22m Touch All-inOne Desktop station. Under the front of the counter will be cabinets for easy access to consumables- it will be the staff's job to make sure this is stocked and ready for peak hours. To the left side of the counter will be a hallway that leads to the entryway to the counter, 2 unisex bathrooms, and an \"employees only\" door that leads to the back office and dry storage closet. The back office will equip our safety deposit box, office desk, and an HP ProLiant MicroServer Gen8 where end of day sales information will be generated. Our main server will also be located in this room as well as the First Aid kit. The dry storage closet will mainly be built-in shelving units for inventory of coffee supplies, extra cups, etc. Because there will be more available space in this room, we will use this room for the water heater, water softener, and furnace. Access to the dishwashing room is behind the counter. In this room, roughly 150 square feet, you will find the small glass dishwasher, a mop station, and a tall storage rack where miscellaneous cleaning products for the shop as well as machinery will be kept. Next to the dishwasher, a safety sink will be installed for chemical accidents. Permits obtained will include a resale permit, health permit, certificate of occupancy, sign permit, and music license. Along with these, all local and city inspections will be conducted to obtain appropriate business licenses. The fire department will conduct their proper inspections as well to test all installed alarms, fire extinguishers, and ensure no fire hazards exist. Business insurance will be purchased through Food Shops Insurance from State Farm. We anticipate this process to take about 3 weeks. The coffee itself is an important aspect of the coffee shop, however, with the proper equipment and beans picked out, it does not require as much of a thought process. A menu development process will be put in place once all machines are working and closer to the 5 month period. Each employee will be required to be certified in sanitation and be trained fully on each machine. Employees will be trained in general customer service, upselling, opening and closing procedures, and beverage construction for approximately 2 weeks with supervision. Once the 2 week period is over, they will be on their own. We are estimating 5-7 part-time employees will be employed to run the store 7 days a week from 6:00A.M. to 8:00P.M. Generally, 2-3 employees will be on staff during peak hours as each employee will be able to make about 7 cups of 16 ox coffee every 5 minutes. Peak hours will include 6:00A.M.-9:00A.M. and 2:00P.M.-5:00P.M. Monday-Friday and 6:00A.M.-10:00A.M. on Saturday and Sunday. Our baristas will be properly trained to execute these drinks properly using the following machinery: Conical Burr Grinders, Keurig K155 OfficePRO Premier Brewing System, Rivo Cappuccino & Latte System, Keurig KOLD Drinkmaker. We intend to have 5 coffee grinders, 5-8 OfficePRO Premier Brewing Systems, 4 Rivo Cappuccino & Latte Systems, and 2 Keurig KOLD Drinkmakers. These machines will keep the cost of coffee down as you will not need to use as much for an excellent cup of coffee. We have special mineral buildup cleaners that the baristas will use on these machines to ensure the best tasting brew every time. Baristas will also rotate responsibility for cleaning the front of the house when patrons leave. When you're ready to leave the shop, you will leave through the door you came, but will notice the emergency exit on the north side of the building. The smell of coffee will linger, reminding you to come back soon! Our crew intends on monitoring the progress of this project from start to finish ensuring the customer's vision is completely and thoroughly laid out. We intend on checking back 6 months after project's end to make sure everything is functioning properly and the flow of the shop is performing well. All coffee machinery has a 5-year warranty and the furniture has a 2year protection warranty as well. Project Deliverables This coffee shop will take over a 3,500 square foot space. The shop will offer superior and delicious coffee. It will also have accommodations for customers to be able to charge their devices, such as computers; comfortable seating in order for customers to be able to relax and space for people to complete studies and work duties. The biggest part of the coffee shop will be the unique coffee that will be brewed and served. Deliverables that will be generated from this project: 1. The creation of the menu and choosing the types of premium coffee, non-coffee options and foods we want to include. Completed by August 1, 2016. (Based on target market and their wants/likes). 2. The design of the coffee shop. Deciding whether we will hire an outside designer or design it based on our vision. Completed by May 1, 2016 3. Creation of our ethics and standards for the coffee shop. Completed by August 15, 2016 4. Obtaining all necessary licenses and permits regarding food service. Completed by July 1, 2016. 5. Knowing and understanding our target market to ensure we will offer something unique compared to our competition. Completed by July 1, 2016. 6. Determining how and where we will advertise our business. Completed by May 1, 2016. 7. Creating a user friendly point of sale system such as tablets to check customers out on. Completed by September 1, 2016. 8. Figuring out the software we will use to keep track of our sales and goals. Completed by September 1, 2016. 9. Deciding if we will offer a drive thru or a pre-order/delivery system. Completed by May 1, 2016. 10. Creation of our 'brand' and using that throughout our design to show our coffee matches our style choice. Completed by May 1, 2016. 11. Confirming legal structure and financials. Completed by June 1, 2016. 12. Choosing our employees- it is imperative to find employees that have a love for coffee and serving people in the way we do in order to provide a quality experience every time for our customers. Completed by September 1, 2016. . Project Objectives The objective of this project is to open a coffee shop that will operate within the city. We will provide our best customer service and serve quality drinks. We also will provide free Wi-Fi and outlets so customers can plug in their computers and/or phones. The start cost is $20,000. The goals of the project include the following. Consistency to keep our customers coming back Project Assumptions Proper training in customer service and for our amazing recipes Financial growth The assumptions on the project are based on the wants and needs of the stakeholders. The following statements are assumptions regarding the project and execution that will occur during the project process: 1. The project will be completed within 6 months from the start date. 2. The project will be completed under the budgeted amount. 3. The business will maintain repeat customers due to the atmosphere and quality of the product. 4. DeVry University students will use the facility as an off-site meeting place. 5. Machinery will fully function for a minimum of 3 years without the need for servicing. 6. All furniture and charging stations will withstand 3 years of daily, consistent usage. 7. The coffee flavor will reflect and represent the true freshness of how coffee should be served, thus raising the stakes for the competition. 8. Employees will learn POS system with ease. 9. Minimal inventory kept on hand as shipments will come weekly and turnover will be fast for product. 10. Advertising costs minimal due to location. 11. Parking spaces sufficient for maximum capacity. 12. Security issues minimal due to ADT surveillance system and low cash on-hand. 13. HVAC Company not needed for first 12 months of operations. 14. Counter layout will ensure optimal efficiency. 15. This coffee shop will attract competitor's customers. Project Constraints High level constraints may include: 1. Accidental electrical fire 2. Natural disasters such as tornados, earthquakes, etc. 3. Accidents such as automobile accidents involving team members 4. To meet deadline if machinery or furniture on back-order or no longer available 5. Funds being cut back from stockholders backing out 6. Full technology scope may not fit budget 7. Possible laws with restrictions on businesses near Universities 8. Limited coffee suppliers available 9. Limited team members on hand 10. Kitchen not able to be installed due to space Exclusions The initial launch of All Jacked Up Coffee will not include: 1. Expanded plans with other partners besides Keurig Green Mountain and Chase Bank 2. Plans for renewing equipment after 36 month period. 3. Contracts with furniture vendors for furniture upkeep after 36 months. 4. Contracts for internet and other telecommunication services. 5. Contracts for professional cleaning services ( if applicable) 6. Plans for expansion or franchising opportunities 7. Required contracts for additional coffee vendors, 8. Agreement with Muzak for music streaming services 9. Budget for interior design services 10. Budget for exterior design/landscaping services Acceptance Criteria 1. Completing the project in a maximum of 6 months from the start date. 2. Completing the project within the allotted budget. 3. Fulfilling all agreements with Keurig Green Mountain. 4. Successfully completing and passing all health and safety regulations. 5. Executing and having all permits, including but not limited to, electrical and zoning permits. 6. Completing a test run of all machinery and appliances. 7. Performing a complete cleaning of all machinery and appliances. Technical For All Jacked Up Coffee to operate properly, there will be certain Requirements infrastructure requirements that must be in place. For example, in order to take credit cards, we will need internet access for processing through PayPal, our selected credit card processing company (PayPal, 2016). We will also need a back-end server which will collect data from our front-of house POS system, which will allow us to follow sales through the company, as well as manage staff, inventory, consumables, and do business planning. For the back end server, a basic HP ProLiant MicroServer Gen8 G1610T 2.3GHz 2-Core 1P 4GB-U B120i Non-Hot Plug SATA Server should be sufficient (HP, 2016b). We will also have a HP Pavilion 22m Touch All-inOne Desktop with Windows 10 Home 64 operating system, AMD Carrizo A108700P quad-core processor [1.8GHz, 2MB L2 Cache], and 4GB DDR3L-1600 SODIMM (1x4GB) RAM (HP, 2016a). Because our business is so small, redundancies like RAID systems or elaborate backup systems are not feasible. We will make sure our data is secured by subscriptions with Carbonite (Carbonite, 2016). The Pro Basic plan allows us to backup unlimited computers, assuring us the ability to recover completely should we ever have a computer disk failure, damage to our equipment, or computer theft. We will also have a matching HP Pavilion 22m Touch All-in-One Desktop station for the front of house to act as our POS station. We will require internet access, which we will acquire from Verizon FIOS which will act as our internet access, as well as the internet access we distribute to the customers (Verizon, 2016). We will utilize a Sonic TZ 200 Firewall to protect our network from intrusion (Gaskin, n.d.). The Sonic TZ Firewall will have wireless enabled for company and staff, and visitors will access WiFi via a Netgear R6300 dual band router placed within the firewall demilitarized zone (DMZ) to protect confidential company data (PCWorld, 2016). In addition, we will also be equipped with ADT Security throughout the facility for Food and Beverage Businesses (ADT, 2016). Type Name Project Manager Approval Customer or Sponsor Approval APPROVALS Signature Jane Doe Date 3/20/16 References Carbonite. (2016). Business Computer & Workstation Backup. Retrieved from http://store.hp.com/us/en/ConfigureView?catalogId=10051&urlLangId=&langId=1&storeId=10151&catEntryId=1029655&quantity=1 Gaskin, J. E. (n.d.). SonicWall TZ 200 Firewall Is More Than a Router | PCWorld. Retrieved from http://www.pcworld.com/article/203537/review_sonicwall_tz_200_firewall.html HP. (2016a). HP Pavilion 22m Touch All-in-One. Retrieved from http://store.hp.com/us/en/ConfigureView?catalogId=10051&urlLangId=&langId=1&storeId=10151&catEntryId=1029655&quantity=1 HP. (2016b). Small Business Marketplace. Retrieved from http://store.hp.com/us/en/ConfigureView? catalogId=10051&urlLangId=&langId=-1&storeId=10151&catEntryId=1029655&quantity=1 PayPal. (2016). PayPal Payments Pro. Retrieved from https://www.paypal.com/webapps/mpp/paypalpayments-pro PCWorld. (2016). R6300 Dual Band Wireless Router - IEEE 802.11ac. Retrieved from http://www.pcworld.com/article/203537/review_sonicwall_tz_200_firewall.html Verizon. (2016). Verizon Fios. Retrieved from http://store.hp.com/us/en/ConfigureView? catalogId=10051&urlLangId=&langId=-1&storeId=10151&catEntryId=1029655&quantity=1 ADT Security Systems (2016). ADT Small Business. Retrieved from http://www.adt.com/business/food-and-beverage-business-solutions Keurig (2016). Keurig Green Mountain, Inc. Retrieved from http://www.keurig.com/ Cloverhill (2016). Retrieved from http://www.cloverhill.com/ State Farm Insurance (2016). Small Business Solutions. Retrieved from https://www.statefarm.com/small-business-solutions/insurance/business-owners-policies/foodshops WebstaurantStore Food Service Equipment and Supply Company (2016). Retrieved from http://www.webstaurantstore.com/vendor/cac-china.html Wayfair LLC (2016). Wayfair.com www.wayfair.com Project Charter Project Name Project Team All Jacked Up Coffee Shop Owner(s) John Smith Mission/ Purpose Project Description and Project Product 1 Start Date: April 1, 2016 Scheduled Completion Date: Jennifer Douglas, Jenny Dyer, Maribeth Fulong, Samantha Gonzales, Nicholas Gray, Trent Goode Project Number Prioritization October 1, 2016. Strong Matrix We are creating a comfortable place where students and business people can go to enjoy a delicious cup of coffee as well as spend time working on their school work, job duties and/or other things that are important to them. The company thrives on providing customers with the perfect tasting coffee, brewed one cup at a time for the ultimate freshness and flavor. This project will create a 3,500 square foot coffee shop. The shop will offer superior and delicious coffee. It will also have accommodations for customers to be able to charge their devices, such as computers; comfortable seating in order for customers to be able to relax and space for people to complete studies and work duties. Deliverables that will be generated from this project: 1. Comfortable place for customers to relax in. 2. The best and most flavorful coffee in the area. 3. An escape from the normal study location or office. 4. A place to enjoy fresh and true coffee flavors. 5. Increase sales/advertisement for our partnership with Keurig. Project Charter Objectives Business Need Milestones A key objective is to offer higher than normal customer service and serve quality drinks at our coffee shop. We offer free Wi-Fi and outlets so customers can plug in their computers. Goals will be proper training, consistency, amazing recipes and financial growth. We should open up this coffee shop because it will benefit us financially. Coffee shops are the place to go to get your favorite blend of coffee, for college students to study, family and friends to meet up, and business people to work on projects or have meetings. Even if someone doesn't like coffee, we will offer other beverages so they will be satisfied as well. Opening this coffee shop has both a financial and business benefit for us. It will bring in an income. Also, by serving the finest coffee and espresso, and providing the best customer service, we'll have a great reputation and will drive customers to keep coming back in. Our key milestones during the estimated time of four to six months will encompass many features and characteristics that go into creating our coffee shop. The following milestones are the top ones we will be concentrating on during our project: 1. The creation of the menu and choosing the types of premium coffee, non-coffee options and foods we want to include. 2. The design of the coffee shop and whether we will hire an outside designer or design it based on our vision. 3. Creation of our ethics and standards for the coffee shop. 4. Knowing and understanding our target market to ensure we will offer something unique compared to our competition. 5. Determining how and where we will advertise our business. 6. Creating a user friendly point of sale system such as tablets to check customers out on. 7. Deciding if we will offer a drive thru or a pre-order/delivery system. 8. Creation of our 'brand' and using that throughout our design to show our coffee matches our style choice. 9. Confirming legal structure and financials. 10. Choosing our employees- it is imperative to find employees that have a love for coffee and serving people in the way we do in order to provide a quality experience every time for our customers. Project Charter Although some attempt to open their doors in less than four to six months, according to Bellissimo, this is rarely done (Opening a Coffee Shop, 2016). Therefore, as part of our strategy, we will take the first 30 days to plan and perform a market analysis. The second month will be spent purchasing supplies, furniture, and inventory, while the third month will be benchmarked for reassessment, establishing target market, and making sure Jacked Up Coffee is on track for opening the following month or in the sixth month. Budget Since we will be opening a 3,500 square foot coffee shop that will be in walking distance from DeVry University our budget options are very important to us. We will have a three-year lease with the option to extend this an additional two years at the end of the first three years. The partners have accumulated $150,000 of the estimated $190,000 in start-up funds. We expect to obtain the remaining balance needed through a Chase Bank commercial loan. We estimate that our sales revenue will rise from $625,000 in FY1 to $1 million in FY3. The reasoning behind these numbers is the fact that we are selling premium coffee, which we can sell at a higher cost per cup than other stores. Additionally, since we will be using conical burr grinding with Chemex filters, we can use significantly less coffee per cup, which will reduce our overhead operating costs. We estimate that from start to finish, it will take four to six months to get our store opened and ready to greet the first customer (\"Opening a Coffee Shop,\" 2016). Estimated Labor $30,000 Estimated Materials $50,000 Estimated Contractors $30,000 Estimated Equipment and Facilities $50,000 Estimated Travel $30,000 Total Estimated Cost $190,000 Project Charter User Acceptance Criteria Minimum success criteria as defined by stakeholders consists of completing the project before the 6 months under the budget set for us. We will monitor and measure the project quality by keeping a checklist to ensure we are on time with each part of the project and that we complete all requirements. We will determine if the project is a success by: 1. Completing the project in a maximum of 6 months from the start date. 2. Completing the project within the allotted budget. 3. Fulfilling all agreements with Keurig Green Mountain. 4. Successfully completing and passing all health and safety regulations. 5. Executing and having all permits, including but not limited to, electrical and zoning permits. 6. Completing a test run of all machinery and appliances. 7. Performing a complete cleaning of all machinery and appliances. 8. Having all user acceptance criteria approved and signed off on by the project manager. High-Level Project Assumption s The assumptions on the project are based on the wants and needs of the stakeholders. The following statements are assumptions regarding the project and execution that will occur during the project process: 1. The project will be completed within 6 months from the start date. 2. The project will be completed under the budgeted amount. 3. The business will maintain repeat customers due to the atmosphere and quality of the product. 4. DeVry University students will use the facility as an off-site meeting place. 5. Machinery will fully function for a minimum of 3 years without the need for servicing. 6. All furniture and charging stations will withstand 3 years of daily, consistent usage. 7. The coffee flavor will reflect and represent the true freshness of how coffee should be served, thus raising the stakes for the competition. Project Charter High-Level Project Constraints Exclusions and Boundaries The main items that will have to be acquired prior to opening day would be a business operation license, a federal employer identification number, a fictitious business name permit, a health department permit, a city sales tax license, a state sales tax license and fire department permit. Depending on the area that we will be starting up in there could be a state and city sales tax license requirements. The items that would not be on the project plans would be items like the IT service provider; which garbage company will service the store; and which utilities provider will be established. This project will not include any continuous improvement plans. All of the initiatives of the project have been established. Any and all change requests must be routed through the project manager. Major Risks Owning any type of business comes with a certain level of risk, of course, All Jacked Up Coffee is not exempt to those risks. The following are risks and challenges the coffee shop with face: 1. 2. 3. 4. 5. 6. 7. Following and dealing with food safety issues. Preventing against theft and providing a security system. Fire safety Equipment reliability and lifespan. Completing the project by the set time of 6 months. Completing the project under the allotted budget. Creating a place that will differ from other coffee shops and reach the set profit/revenue goal. Project Charter KEY STAKEHOLDERS The stakeholders behind All Jacked up Coffee are all the people that have something to gain or lose as a result of the success or failure of the business. Anyone that would be sponsoring our startup costs would be considered a stakeholder while all of the owners/operators of the business would also be considered part of that group. As the company grows and possibly starts to sell stocks our number of stockholders will change and so will our responsibility to them. Project Manager Authority Level Project Core Team Subject Matter Experts (SMEs) (What resources will you need with special expertise?) Jane Doe Jennifer Douglas, Jenny Dyer, Maribeth Fulong, Samantha Gonzales, Nicholas Gray, Trent Goode Keurig Green Mountain (Partner) Chase Bank Type Name Project Manager Approval APPROVALS Signature Jane Doe Date 3/13/16 Customer/Sponsor Approval Jack Frost - Keurig Green Mountain James Prescott-Chase Bank Loan Approver ELEMENT Provide a project charter of your selected project in accordance 3/13/16 3/13/16 Maximum Your Point Point Value Value 35 28 Project Charter with the charter template found in Doc Sharing. The project will be the project your team will use for the remainder of this course. For your new project, please develop a project team (citing names, e-mail addresses, and telephone numbers). Be certain to include the following. Mission/Purpose Project Description and Project Product Objectives Business Need Project Milestones User Acceptance Criteria High-Level Project Assumptions High-Level Project Constraints Exclusions and Boundaries Major Risks Please put this in proper business writing format. Consider me to be your boss. If working in a group, include a statement of participation, describing how each person contributed to this project deliverable. Please have each person sign the statement. Deliverables: Project charter (in MS Word) If working in a group, include a statement of participation, describing how each person contributed to this project deliverable. Please have each person sign the statement. Grammar/Punctuation/Spelling/APA Format 5 5 40 33 Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. Paper contained minimal grammar errors Late TOTAL Project Charter Comments: Please read comments. Running head: GROUP B COFFEE BAR & LOUNGE Team B :Coffee Bar & Lounge DeVry University 1 TEAM B COFFEE BAR & LOUNGE 2 Team B Coffee Bar & Lounge The Coffee Bar & Lounge is going to be the premiere destination for people who want to hang out and drink the most amazing coffee, brewed one cup at a time for ultimate freshness. While there are chains in the area that sell coffee, like coffee shops, Starbucks, convenience stores and more, all of them prepare coffee in advance and serve it as customers arrive. While this is an efficient means of doing business, from the time the coffee is brewed, it immediately starts losing flavor. Also, the filters that are used frequently let fats and oils through that contribute to a bitter taste. At Coffee Bar and Lounge , for each order, we grind the beans through a conical burr grinder, and brew individual cups using heavy-duty Chemex filters which remove all the fats and oils that make coffee taste bitter. This will provide our customers with the ultimate cup of coffee (\"Filters,\" 2016). We have an exclusive agreement with Keurig Green Mountain to brew and sell Diedrich Coffee (\"Our Brands - Diedrich Coffee,\" 2016). We will be opening a 3,500 square foot coffee bar and lounge that is walking distance from DeVry University. We have a three-year lease with the option to extend this an additional two years at the end of the first three years. The partners have accumulated $150,000 of the estimated $190,000 in start-up funds. We expect to obtain the remaining balance needed through a Chase Bank commercial loan. We estimate that our sales revenue will rise from $625,000 in FY1 to $1 million in FY3. The reasoning behind these numbers is the fact that we are selling premium coffee, which we can sell at a higher cost per cup than other stores. Additionally, since we will be using conical burr grinding with Chemex filters, we can use significantly less coffee per cup, which will reduce our overhead operating costs. We estimate that from start to finish, it will take four to six months to get our store opened and ready to greet the first customer (\"Opening a Coffee Shop,\" 2016). TEAM B COFFEE BAR & LOUNGE 3 References Filters. (2016). Retrieved from http://www.chemexcoffeemaker.com/filters.html Opening a Coffee Shop. (2016). Retrieved from http://espresso101.com/coffee_faq.html Our Brands - Diedrich Coffee. (2016). Retrieved from http://www.keuriggreenmountain.com/en/OurBrands/Diedrich.aspx The Coffee Caf The Coffee Caf Project Plan Document TABLE OF CONTENTS 1. EXECUTIVE SUMMARY.................................................................................................................................................3 2. PROJECT CHARTER.......................................................................................................................................................3 3. PROJECT SCOPE STATEMENT....................................................................................................................................3 4. WORK BREAKDOWN STRUCTURE / PROJECT SCHEDULE (.MPP FILE)....................................................3 5. RISK MANAGEMENT PLAN..........................................................................................................................................3 6. PROJECT SCHEDULE AND BUDGET WITH ASSIGNED RESOURCES...........................................................3 7. COMMUNICATIONS MANAGEMENT PLAN...........................................................................................................3 REFERENCES..............................................................................................................................................................................4 Instructions for updating the Table of Contents: Select the Table of Contents, click Update Field, and then click Update Entire Table. Feel free to add any additional sections you think are needed as a result of your updates. Remember to remove all instructions from the document! Page 2 of 18 The Coffee Caf Project Plan Document 1. Executive Summary Page 3 of 18 The Coffee Caf Project Plan Document 2. Project Charter Mission/ Purpose The Wi-Fi and coffee shop will cater to customers who love the great smell and taste of the best organic coffee, while surfing the web using the fastest public free Wi-Fi. This shop has coffee at its core, while enjoying the highest quality whole bean coffees you will be able to indulge yourself in our food menu. Our passion doesn't just start and end with coffee; we are committed to crafting the freshest sandwiches and pastries that are made daily in our shop. The dcor will only be made of up the most comfortable materials that will only add to the experience and not distract from the core of the business. Along with coffee the core of the business has three values that will help move the company forward, which are integrity, loyalty, and commitment. Our goal will be to show every coffee drinker that our coffee is the best in the world. Crafting one delicious cup of coffee at a time. Project Description and Project Product This project will create a high level coffee shop to compete with the likes of Starbucks and many other coffee shops. Most work for this project will be outsourced such as the creation of the building, the inventory needed to supply the customers and furniture/equipment to use while open. Five measureable tasks will be used to make sure the project is on time to be completed by 12/10/2015. 1. Location and permits obtained by 10/21/2015. 2. Electrical, plumbing and wireless network completed by 11/07/2015. 3. Have all inspections cleared by 11/19/2015. 4. Equipment Delivery, Material Delivery, and Furniture Delivery and setup by 11/30/2015. 5. All employees trained and ready to open on or before 12/10/2015. Objectives The primary objective of the Wi-Fi and coffee shop will be to serve customers at a high standard. In order to meet this objective 4 goals will determine the success of the project. They are to complete the project on time, which would be by 12/10/2015, to double first week sales in the second week, to finish this project under budget by at least 10,000 dollars, and lastly to have all employees trained and ready to work by opening. Page 4 of 18 The Coffee Caf Project Plan Document Business Need 3. The project leaders have noticed that in their area of interest there are no places to get a quick cup of coffee. The closet coffee shop, a Starbucks, is about five miles down the road. While Starbucks does offer a high quality, delicious product the project leaders feel that they can offer a product along the same lines for a lesser price while still achieving a profit that will keep the business open and thriving. Also, like Starbucks, the project leaders feel that they can provide sandwiches and pastries that are of a higher quality and are fresh and made in house. Key Milestones Start Date End Date Property Purchase 10/07/2015 10/11/2015 Project Kick-Off/ Ground breaking ceremony 10/11/2015 10/11/2015 Obtain Permits 10/7/2015 10/21/2015 Structural building completed 10/11/2015 11/07/2015 Electrical 10/20/2015 11/07/2015 Plumbing 10/20/2015 11/07/2015 Wireless 11/01/2015 11/10/2015 Inspections 11/09/2015 11/20/2015 Equipment Delivery 11/10/2015 11/30/2015 Material Delivery 11/10/2015 11/30/2015 Furniture Delivery 12/01/2015 12/08/2015 Interview/Hire and Train Employees 11/08/2015 12/08/2015 Grand Open Milestones 12/10/2015 12/10/2015 Budget Estimated Labor 100,000 Estimated Materials 250,000 Page 5 of 18 The Coffee Caf Project Plan Document Estimated Contractors 125,000 Estimated Equipment and Facilities 500,000 Estimated Travel Total Estimated Cost User Acceptance Criteria 25,000 1,000,000 To be sure our coffee and wifi shop is a success, we will monitor the project closely and keep our stakeholders updated on our progress. In order to ensure success our project will have to meet the following construction and budget criteria: Permits obtained by 10/21/2015 Electrical, plumbing, and wireless network completed by 11/07/2015 Have all inspections cleared by 11/19/2015 Equipment, Material, and Furniture delivered and installed by 11/30/2015 All staff hired and trained by 12/10/2015 No more than $100,000 is spent on labor The materials cost does not exceed $250,000 All contractors bids and final work comes in under $125,000 The equipment and facilities costs do not exceed $500,000 All total travel costs do not surpass $25,000 If all of these deadlines and budget constraints are met then the overall project will be considered a success. High-Level Project Assumption s The project will be completed on 10/25/2015 and open that same day Will double Week 1's profit on the second week All contractors will finish their scheduled work on time All contractors will finish their work on budget There will be no legal problems that will arise The project will stay on budget Permits will be obtained on time No additional problems will be found with the building Page 6 of 18 The Coffee Caf Project Plan Document High-Level Project Constraints All milestones will me met The contractors' availability The project MUST be finished by 10/25/2015 The budget contingency is 10% Each budget estimate Permits will be granted within the first week of the project Material, equipment, and furniture will be delivered by week 4 All staff is hired and trained by opening The project construction deadlines 4. Exclusions and Boundaries This project is constrained to the completion of the building process of our high end coffee shop. We are outsourcing the actual construction of our building so we are excluding the procurement of materials from the scope of this project. We are also excluding all data after the completion of the construction project. The items listed below are out of the scope of the project and must be carefully monitored to keep the project on track. Major Risks Supplies, services and/or equipment provided by the subcontractors that do not have prior approval of the project manager. All work provided by subcontractors who have not obtained the licensing necessary to them to complete the work properly, proof of insurance by the proper accrediting organization Hours in which work of the shop can be done There are many major risks that can affect the completion of a project such as this. Unforeseen weather events can push back completion dates and delay the project. Backorders on Materials Damaged goods being delivered to the job site Drawing specifications not being able to met in the field. Installation problems such as drywall screws going through Page 7 of 18 The Coffee Caf Project Plan Document plumbing or electrical installation. Employee sickness Cutting into structural concrete when putting in electrical floor boxes or \"trenches\" Not passing different inspections: I.E. plumbing, electrical, HVAC, etc Soil tests must be conducted to determine if there is any ground contamination. This can be very time consuming and very expensive. KEY STAKEHOLDERS Project Manager Authority Level Project Core Team Jennifer Fazio has been designated as the project manager. All permissions for any supplies, services or equipment should be approved in writing prior to purchase orders or contracts being signed. The members of the project core team are able to make decisions in emergency situations where Jennifer is not able to be reached. Taylor Townsend Kevin Wood Brandon Lomax The core team shall support the project manager in the overall operation of the project. They should make suggestions or edits to the project to the project manager if at any time they feel this is necessary. Subject Matter Experts (SMEs) (What resources will you need with special expertise?) Jim Smith: Former Starbucks coffee bean expert Joe Franks: Former Business executive for Folgers Kevin O'leary: Entrepreneur and investor with years of small and large business experience including many startups. Page 8 of 18 The Coffee Caf Project Plan Document 3. Project Scope Statement Statement of WorkProject Description and Project Product Introduction: The Coffee Break Caf will cater to customers who love the great smell and taste of the best organic coffee, while surfing the web using the fastest public free Wi-Fi. This shop has coffee at its core, while enjoying the highest quality whole bean coffees you will be able to indulge yourself in our food menu. Our passion doesn't just start and end with coffee; we are committed to crafting the freshest sandwiches and pastries that are made daily in our shop. This project revolves around the creation of The Coffee Break Caf, a proposed small-scale business that will be created in the fast changing environment. Coffee shops/Caf are constantly changing due to the needs of the customers. This project will focus on committing to customers for the long term by catering to their needs and staying the course on what matter most, great coffee, an comfortable environment, and fast Wi-Fi. Vision and Mission statement To provide a unique blend of customer needs with customer wants while staying true to the core of the business, which is to use our three values in every aspect of the business. The values that will push the caf forward are integrity, loyalty, and commitment. Project Team Page 9 of 18 The Coffee Caf Project Plan Document The project team is made up of 4 students that are all willing and able to completely plan and execute the project of building a coffee caf. By working closing together on everything including the smallest details, it will help to ensure the project is a success in all aspects. The team will meet twice weekly to work out any issues that will arise during the creation and completion of the project. During those meeting the project leader will divide the assignments for the week among the team. Each team member has written an individual commitment statement indicating their responsibility to the team, for completing the assigned deliverables: See below. A. Jennifer Fazio - I have worked with my team members to determine availability and assign team responsibilities. I will make myself available to my team during those times and commit to finish the project fully and on time. If for any reason I am unable to participate or meet a deadline I will provide my team with adequate notice. B. Taylor Townsend - I have communicated with my team members to work out the best meeting times and assign duties. I will attend all meetings and work diligently to finish all project activities within the allotted time. If I am unable to attend meetings or meet the week's project goals I will notify my teammates ahead of time. C. Brandon Lomax - I commit to being the Team leader for weeks 1, 4, 7, and 8. On weeks that I am not the leader I will assist, by completing my project assignments on time, when due. I will also attend each meeting. I am also committed to doing everything I can to ensure we open the caf on time under budget. D. Kevin Wood - I have communicated with my team members my availability and I will assist in anyway that I can to complete the project. I will also attend each meeting and do everything I can to make sure that we complete on this project. High Level Task of Project A. Location and permits obtained by 10/21/2015. a) In order to complete this task one member from the team must work very closely with the realtor in order to find and purchase the perfect location to build the coffee caf. b) While searching for the location the team must keep in mind, it has to be an open location that is easily identifiable and accessible to the customer. It is Page 10 of 18 The Coffee Caf Project Plan Document preferred that it is location in a stand-alone building instead of shopping center. c) Prior to the start of the project the team must secure a contractor to prepare all documents needed to gain access to permits. B. Electrical, plumbing and wireless network completed by 11/10/2015. a) Since this part of the project will start until 10/20/2015. A team member must have completed quotes for all services prior to start date so team leader can approve. b) During the process of choosing companies to work with for this task, budget and quality should play the largest factors in the selection. c) Since wireless service will be paid over time, team must gain approval for service provider. C. Have all inspections cleared by 11/20/2015. a) In order to pass all inspections team must have a clear understanding of what is going to be inspected. b) First inspection should be made at least 10 days prior to 11/20/2015, so if changes are needed time is already allocated to make those changes. c) All team members must be present for all inspections to answer any questions that will arise. D. Equipment Delivery, Material Delivery, and Furniture Delivery and setup by 12/08/2015. a) Team must have all deliveries schedule prior to 11/10/2015. b) All deliveries must be coordinated with the project manager to insure that each delivery has adequate time to delivery and setup. c) During weekly meeting team members assigned the task of this must communicate to whole team to ensure everyone is on the same page. E. All employees trained and ready to open on or before 12/10/2015. a) After the ground breaking ceremony team should start the process of hiring management for caf. b) After management is hired team must follow up with them in order to make sure they are on time to complete the training for all co-workers at least 5 days prior to 12/10/2015. Page 11 of 18 The Coffee Caf Project Plan Document c) Team must work closing with new hires to organize time in building during the building process to get familiar with caf. Project Description This project will create a high level coffee shop to compete with the likes of Starbucks and many other coffee shops. Most work for this project will be outsourced such as the creation of the building, the inventory needed to supply the customers and furniture/equipment to use while open. There has been a need to provide customer's coffee at a certain level and this caf will be bale to provide that. Also customers have voiced that Wi-Fi is a reason to visit and is just as important as the coffee. The primary objective of The Coffee Break Cafe will be to serve customers at a high standard. In order to meet this objective 4 goals will determine the success of the project. They are to complete the project on time, which would be by 12/10/2015, to double first week sales in the second week, to finish this project under budget by at least 10,000 dollars, and lastly to have all employees trained and ready to work by opening. If this project is successful it could yield a high ROI, which could mean more like this one. Everything above has stated in most areas how this will be achieved, below are more. Project Deliverables The coffee shops primary deliverable will be to meet the requirements needed to open a coffee shop that will live up to the high standards put in place by the project team. The project deliverable has been broken down into ten project deliverables to guarantee that management is happy with the final product. The deliverables are as follows: Property purchase Obtain all necessary licenses Evaluation of all sub-contractors Research competitors/products - design shop menu Construction of the shop Plumbing, Electrical & WiFi Installation Page 12 of 18 The Coffee Caf Project Plan Document Final inspections Interview/Hire employees Project Objectives Material/Equipment/Furniture Delivery Open the shop The primary objective of the Wi-Fi and coffee shop will be to serve the community by providing organic coffee and freshly made pastries all in a comfortable environment with the highest of standards. The goals for this project shall include the following: Complete the project on time, which would be by 12/10/2015 Double the first week sales within the second week Finish the project under budget by a minimum of $10,000 Have all employees trained and ready to work by opening. . Project Assumptions The project will be completed on 12/10/2015 and open that same day Will double Week 1's profit on the second week All contractors will finish their scheduled work on time All contractors will finish their work on budget There will be no legal problems that will arise The project will stay on budget Permits will be obtained on time All inspections will be passed All employees will complete their training before opening Furniture and equipment suppliers will deliver products on time None of our purchases will be back ordered and will all arrive on time No additional problems will be found with the building We will stay under the contingency budget Location will be perfect for optimal business Customers will like our porducts Page 13 of 18 The Coffee Caf Project Plan Document Project Constraints Exclusions Finding the proper location before the project can fully begin The contractors' availability The building must pass inspections The project MUST be finished by 12/10/2015 The budget contingency is 10% Each budget estimate Permits will be granted within the first week of the project Material, equipment, and furniture will be delivered by week 4 All staff is hired and trained by opening The project construction deadlines This project is constrained to the completion of the building process of our high end coffee shop. We are outsourcing the actual construction of our building so we are excluding the procurement of materials from the scope of this project. We are also excluding all data after the completion of the construction project. We are excluding the following items from out project scope. Contractor bids to renovate the store. Insurance for accidents on the premises Payroll Staff development Government licensing Food regulation requirements Benefits for employees Acceptance Criteria Internet access capabilities beyond the hardware. Logistics of coffee suppliers To be sure our coffee and wifi shop is a success, we will monitor the project closely and keep our stakeholders updated on our progress. In order to ensure success our project will have to meet the following construction and budget criteria: Permits obtained by 10/21/2015 Electrical, plumbing, and wireless network completed by 11/07/2015 Have all inspections cleared by 11/19/2015 Page 14 of 18 The Coffee Caf Project Plan Document Equipment, Material, and Furniture delivered and installed by 11/30/2015 All staff hired and trained by 12/10/2015 No more than $100,000 is spent on labor The materials cost does not exceed $250,000 All contractors bids and final work comes in under $125,000 The equipment and facilities costs do not exceed $500,000 All total travel costs do not surpass $25,000 If all of these deadlines and budget constraints are met then the overall project will be considered a success. Technical In order to get our coffee store up and running we will require a lot of Requirements equipment. We will require 3 SPARC Enterprise M8000 servers in order to run the application software for our store. These servers are high end servers and will allow us to quickly process orders and get people in and out quickly. We will also require several Royal TS1200MW cash registers in order to be able to process payments from our loyal customers. We will also be installing a phone and computer charging stations throughout the store so that our customers will be able to stay and enjoy our establishment. Also, we will require 4 expresso machines. For these we will get the Nuova Simonelli Appia 3 machine. We will need two toilets and two sinks for the men and women's restrooms. For the restrooms we will also need paper towel dispensers. The store will also require storage cabinets throughout the store so that coffee and other items can be stored easily and are quickly accessible. Chairs and Tables are also a necessity for our store function. We will be needing a speaker system throughout the store to be able to play music as well as a stereo system to play the music through. Also we will need a refrigerating system in order to our perishables as well 2 commercial blenders to crush ice. 5. Work Breakdown Structure / Project Schedule. 6. Risk Management Plan Page 15 of 18 The Coffee Caf Project Plan Document 7. Project Schedule and Budget with assigned Resources 8. Communications Management Plan This document outlines the plan of communication for The Coffee Caf Project Team. WHAT DUE WHEN Status Meeting Completion of each Task Every 2 weeks Monday 12:00pm -2 :00pm As task have been completed WHAT Verbal COMMUNICATION METHOD OF SENDER DELIVERY Team Meeting Jennifer Fazio DUE WHEN Prior Week Summary Status updates High Risk Updates TBD Brandon Lomax Taylor Townsend WRITTEN COMMUNICATION METHOD OF SENDER DELIVERY Weekly - each Email Brandon Lomax Monday Taylor Townsend Weekly on Friday Email Brandon Lomax Taylor Townsend During progress of Email Brandon Lomax high risk sections Taylor Townsend Page 16 of 18 RECEIVER Brandon Lomax Taylor Townsend Jennifer Fazio RECEIVER Jennifer Fazio Jennifer Fazio Jennifer Fazio The Coffee Caf Project Plan Document Sub-Contractor Updates Interior Updates Schedule Updates Weekly - during building process Weekly - during design phase Weekly - each Friday Email Brandon Lomax Taylor Townsend Brandon Lomax Taylor Townsend Brandon Lomax Taylor Townsend Email Email 8.1. Page 17 of 18 Jennifer Fazio Jennifer Fazio Jennifer Fazio The Coffee Caf Project Plan Document REFERENCES Page 18 of 18 The Work Breakdown Structure When we are first given a project to complete, the task can seem very intimidating. How do we start? Where should we first direct our efforts? One of the best ways to begin is to recognize that any project is just a collection of a number of discrete steps, or activities, that together add up to the overall deliverable. There is no magic formula; projects get completed one step at a time, activity by activity. According to the Project Management Body of Knowledge (PMBoK), a Work Breakdown Structure (WBS) is \"a deliverableoriented grouping of project elements which organizes and defines the total scope of the project. Each descending level represents an increasingly detailed definition of a project component. Project components may be products or services.\" To rephrase this PMBoK definition, the Work Breakdown Structure is a process that sets a project's scope by breaking down its overall mission into a cohesive set of synchronous, increasingly specific tasks.9 The result is a comprehensive document reflecting this careful work. The WBS delineates the individual building blocks that will construct the project. Visualize the WBS by imagining it as a method for breaking a project up into \"bitesized\" pieces, each representing a step necessary to complete the overall project plan. It can be challenging at the project's start to envision all the elements or component tasks needed to realize the project's success, but the effort to \"drill down\" into the various activities at the task level actually can reinforce the overall picture of the project. Consider the simple case of a student team working together on a term paper and final presentation for a college seminar. One of the first steps in the process of completing the assignment consists of breaking the project down into a series of tasks, each of which can be allocated to a member or members of the student team. The overall project consisting of specific productsa final paper and presentationbecomes easier to manage by reducing it to a series of simpler levels, such as: Task One: Refine topic Task Two: Assign library research responsibilities Task Three: Develop preliminary outline for paper and presentation Task Four: Assign team member to begin putting presentation toget Task Five: Begin producing drafts of paper Task Six: Proofread and correct drafts Task Seven: Refine class presentation Task Eight: Turn in paper and make classroom presentation A WBS could go much further in defining a project's steps; this example is intended only to give you a sense of the logic employed to reduce an overall project to a series of meaningful action steps. You will see, in subsequent chapters, that those same action steps are later evaluated in order to estimate the amount of time necessary to complete them. The logic of WBS is shown visually in Figure 5.2. Rather than giving a starting date and an end goal, the diagram provides a string of checkpoints along the way. These checkpoints address the specific steps in the project that naturally lead from the start to the logical conclusion. The WBS allows you to see both the trees and the forest, so you can recognize on many levels what it will take to create the completed project. FIGURE 5.2 Goal Setting With and Without Work Breakdown Structures (WBS) Purposes of the Work Breakdown Structure The WBS serves six main purposes:10 1. It echoes project objectives. Given the mission of the project, a WBS identifies the main work activities that will be necessary to accomplish this goal or set of goals. What gets mentioned in the WBS is what gets done on the project. 2. It is the organization chart for the project. Organization charts typically provide a way to understand the structure of the firm (who reports to whom, how communication flows evolve, who has responsibility for which department, and so forth). A WBS offers a similar logical structure for a project, identifying the key elements (tasks) that need attention, the various subtasks, and the logical flow from activity to activity. 3. It creates the logic for tracking costs, schedule, and performance specifications for each element in the project. All project activities identified in the WBS can be assigned their own budgets and performance expectations. This is the first step in establishing a comprehensive method for project control. 4. It may be used to communicate project status. Once tasks have been identified and responsibilities for achieving the task goals are set, you can determine which tasks are on track, which are critical and pending, and who is responsible for their status. 5. It may be used to improve overall project communication. The WBS not only dictates how to break the project into identifiable pieces, but it also shows how those pieces fit together in the overall scheme of development. As a result, team members become aware of how their component fits into the project, who is responsible for providing upstream work to them, and how their activities will affect later work. This structure improves motivation for communication within the project team, as members wish to make activity transitions as smooth as possible. 6. It demonstrates how the project will be controlled. The general structure of the project demonstrates the key focus that project control will take on. For example, is the project based on creating a deliverable (new product) or improving a process or service (functional efficiency) within the firm? Either way, the WBS gives logic to the control approach and the most appropriate control methods. Let's illustrate the WBS with a simplified example. Consider the case of a large, urban hospital that has made the decision to introduce an organizationwide information technology (IT) system for billing, accounts receivable, patient record keeping, personnel supervision, and the medical process control. The first step in launching this large installation project is to identify the important elements in introducing the technology. Here is a basic approach to identifying the deliverables in a project to install