Gift World

A Project Planning Case

WALEED EL-NAGGAR
https://www.facebook.com/waleed.naggar
AUGUST 2012
1. Initiating the Project
You are a project manager for Gift World, a chain of retail stores specializing in gift
shopping with products varying from small gifts to house machines. Youre fairly new to the
position, having been hired to replace a project manager who recently retired.

Gift World currently owns 24 stores in 12 cities. The headquarters for Gift World is in El-
Mohandeseen, Cairo. The company has 750 employees (full-time and part-time), 100 of
whom work at headquarters.

The companys mission statement reads, Great shopping experience for great houses.

Recently, the vice president of marketing paid you a visit. Samir Ghaly is a very nice and
well-dressed man. He shakes your hand and gives you a broad, friendly smile.

Weve decided to go forward with our 25th store opening! Sales are up, and our new line of
ceramic cookware is a hot seller, which will serve the Mothers Day shopping. I dont know
if youre familiar with our store philosophy, so let me take a moment to explain it. We like to
place our stores in neighborhoods that are somewhat affluent. Our market studies show that
most of our shoppers have a monthly income of more than LE 8,000 per family. So, we
preferred to place our stores in areas where those folks usually shop.

Were targeting the type of customer who wants to have fancy items and prestigious
belongings they see in TV movies. So, the stores are cheerful and convey a fun, energetic
feel, if you will.

Our next store is going to be right here in New Cairo. Because this is going to be our 25th
store, we plan on having a 25th grand-opening celebration, with the kind of surprises and
activities you might expect for such a notable opening.

Our stores generally occupy from 200 to 300 square meter of retail space, and we typically
use local contractors for the build-out. A store build-out usually takes 120 days from the date
the property has been procured until the doors open to the public. I can give you our last
openings project plan so you have a feel for what happens1. Your job will be to procure the
property, negotiate the lease, procure the shelving and associated store furnishings, get a
contractor on the job, and prepare the 25th store festivities. My marketing folks will assist you
with that last part.

You have six months to complete the project, any questions?

1
Isnt that nice? A project plan for a similar recent project, you are so lucky with this historical data.

http://www.facebook.com/waleed.naggar 1
You take in a deep breath and collect your thoughts. Samir has just given you a lot of
information with hardly a pause in between thoughts. A few initial ideas drift through your
head while youre reaching for your notebook.

You work in a functional organization with a separate projectized department responsible for
carrying out projects of this nature. You already know that Samir is in the executive ranks
and carries the authority and power to make things happen. Therefore, Samir is the perfect
candidate for project sponsor.

You grab your notebook and start documenting some of the things Samir talked about,
clarifying with him as you write:
- The project objective is to open a new store in New Cairo six months from today.
- The store should be located in a wealthy area.
- The store will carry the full line of products from simple gifts to house machines.
- The grand opening will be accompanied by lots of propaganda as its the 25th store
opening.
You have a question or two for Samir.

Is there a special reason we have to open, lets see, six months from now, which is
February 1st?

He responds, Yes, we want the store open the first week in February for 2 reasons. First,
its close enough to Mothers Day followed by Eastern Easter which means a lot of
shopping. Second, many weddings are held in summer and most of the shopping for the
news homes starts in February to May.

Another question, Samir, is there a budget set for this project yet?

We havent set a hard figure, Samir replies. But again, from past experience we know it
takes anywhere from LE 0.75 to LE 1 million to open a new store. And we dont want to
forget the big celebration for the grand opening.

Thanks Samir. Ill get started writing the project charter right away. Ill be putting your
name on the document since youre the project sponsor.

Samir concludes with, Feel free to come to me with questions or concerns at any time.

One week later.

You review your notes and reread the project charter youve prepared for the Gift World
retail store one last time before looking for Samir. You finally run across Samir in a hallway
near the executive meeting room.

http://www.facebook.com/waleed.naggar 2
Samir, Im glad I caught you. Id like to go over the project charter with you before the
kickoff meeting tomorrow. Do you have a few minutes?

Sure, Samir says to you. Lets have it.

The project charter states the purpose of the project, which of course is to open the 50th Gift
World store in New Cairo. I also documented some of the high-level requirements, many of
which we talked about last time we met. I documented the assumptions and constraints you
gave me with the understanding that well define these much more closely when I create the
scope statement. Ive included a section that outlines a preliminary milestone schedule, and
Ive included some preliminary return on investment calculations. Using your estimate of
LE1 million as our initial budget request and based on the projected inflows you gave me last
week, Ive calculated a payback period of 19 months, with an IRR (Internal Rate of Return)
of 18 percent.

Thats impressive, replies Samir. Thats even better than our Nasr City store. If I recall,
the payback period there was just over two years. Lets hope those numbers hold true.

I think theyre reliable figures, you say. I researched our data based on recent store
openings in similar areas and factored in the economic conditions of the New Cairo area2.
Since theyre on a growth pattern, we think the timing is perfect.

As you know, the project kickoff is scheduled for tomorrow. What Ill need, then, is for you
to talk about the project and the goals, talk about the commitment youll need from the
management team to support this project, and introduce me as the project manager.

Ive already forwarded a copy of the project charter to the meeting attendees so that they can
review it before the meeting. And I included a list of the assumptions weve made so far as
an appendix of the charter. Lastly, Ill need you to ask everyone present to sign a copy of the
project charter.

Sounds like youve covered everything, Samir says. I dont anticipate any problems
tomorrow, because everyone is looking forward to this store opening.

Project Charter Checklist

- Project objective: To open a new store in New Cairo six months from today (February
1st, 2012).

- Business need or demand for project: Company data concludes that the Gift World
consumers have monthly incomes of more than LE 8,000. New Cairo area is home to a

2
Once again, you are very lucky to have these historical data

http://www.facebook.com/waleed.naggar 3
 large number of people with that income. Currently, there is no Gift World store in that
area, but there appears to be a demand for one.

- Project Manager: Waleed El-Naggar, PMP certified project manager.

- Project Sponsor: Samir Ghaly, VP of marketing.

- Organizational structure: Functional organization with a separate projectized

department.

- Project Selection Method: Payback period calculated at 19 months and IRR calculated
at 18 percent.

- Created project charter: Project charter contains the following:

- High-level overview of project

- List of measurable project objectives

- High-level risks

- Summary milestone schedule with initial completion date of February 1st, 2012.

- Summary budget of LE 1 million (besides the grand opening ceremony).

- Project manager authority levels

- Definition of roles of project sponsor and project manager

Next steps: Kickoff meeting set up to discuss charter and obtain sign-off.

http://www.facebook.com/waleed.naggar 4
2. Develop Project Scope Statement
The project charter kickoff meeting was held and well attended. Youre ready to start
gathering requirements and writing the project scope statement and have a question or two
for Samir. You knock on his door, and he invites you in.

Whats up he says.

Im ready to define the deliverables and requirements for this project. I want to make sure I
get the right people in the meeting. Who are key stakeholders you recommend I speak with?

I can think of a few people that you will certainly need. Theres Hesham Fawzy from
Facilities. Hes in charge of store furnishings, shelving, things like thatany supplies for the
stores that arent retail products. He can help out with store build-outs too.

He supervised our last five stores and did a very good job.

Anyone else? you ask.

You should also talk to Dalia Roshdy, the director in charge of retail products. She can help
with the initial store stocking, and once the store is open, her group will take over the
ongoing operations. All the store managers report to Dalia.

You thank Samir and tell him youre going to contact Hesham and Dalia and set up a
brainstorming session to determine requirements.

A few days later:

You review your notes and reread the first draft of the project scope statement youve
prepared for the Gift World retail store before looking for Samir. After your meetings with
the stakeholders, you were better able to refine the project objectives and deliverables.

Samir, Im glad I caught you. Id like to go over the project scope statement with you before
I give it to the stakeholders. Do you have a few minutes?

Sure, Samir says to you. Lets have it.

The project objective is to open the 25th Gift World store in New Cairo by February 1st.
When I met with Hesham, he confirmed it takes around 120 days to do the store build-out.

That includes having the shelves set up and in place, ready to stock with inventory.

Samir asks whether Hesham told you about his store location idea.

Yes, Hesham gave me a contact name of the leasing agent, and Ive left him a voicemail.
The sooner we can get that lease signed, the better. It takes Hesham 120 days to do the build-

http://www.facebook.com/waleed.naggar 5
out, and Dalia said she needs 2 weeks lead time to order the initial inventory and stock the
shelves. That puts us pretty close to our February 1 deadline, counting the time to get the
lease papers signed.

Sounds good so far, Samir replies. What else?

You continue, Ive included an updated description of the products and services the new
store will offer, based on the documentation that was written from the last store opening.

Dalia reviewed the updated description. The store will include some new products that weve
decided to include such as cookware from famous chefs.

Hesham has already made contact with a general contractor in New Cairo, and he is ready to
roll once weve signed the lease.

One more thing, Samir, since were targeting a grand ceremony, I talked to some of your
folks in marketing to get some ideas. They are thinking we should have some great
giveaways as door prizes and that we will want the food catered. They also thought having
some live cooking demonstrations with some famous chefs would be a good attraction.

Sounds like youre on the right track. So, whats next? Samir asks.

Once you approve the scope statement, Id like to send a copy to the stakeholders. My next
step is to break down the deliverables and requirements Ive documented here into the WBS
so we can get rolling on the work of the project.

Scope Planning Checklist

The main topics discussed in the case study are as follows:

Stakeholder analysis for requirements gathering: Hesham Fawzy (Facilities) and Dalia
Roshdy (Director of Retail Products) interviewed. Needs, wants, and expectations recorded
and requirements prioritized.

Constraints: February 1st for the grand opening.

Assumptions: These are the assumptions:

- A store build-out usually takes 120 days.
- Dalia Roshdy will help with the initial store stocking.
- Hesham Fawzy will provide supplies for the stores that arent retail products, such as
store furnishings, shelving, and so on, and can help with the store build-out as well.
- The budget for the project will be between LE 0.75 to LE 1.0 million.

http://www.facebook.com/waleed.naggar 6
 - Dalia needs 2 weeks lead time to order the initial inventory and stock the shelves.
The project scope statement includes the following:

Project objectives: Open 25th store by February 1 in New Cairo.

Project deliverables: These are the project deliverables:

- Build out storefront, including shelving.
- Retail product line will be delivered two weeks prior to grand opening.
- Have grand-opening party with cooking demos.
Project requirements: These are the project requirements:
- Sign lease within 14 days.
- Offer new lines of gifts.
The WBS includes the following:
- Level one is the project.
- Level two is subprojects or deliverables.
- Level three is deliverables.
- Last level of WBS is the work package level, where time and cost estimates can be
defined in the next process.

http://www.facebook.com/waleed.naggar 7
3. Creating the Project Schedule
You worked with the stakeholders to document the activity list last week. After creating the
first draft of the project schedule network diagram, you went back to each of them to ask for
time estimates for each of the activities. The Head of Information Technology, Asser El-
Tahhan put some estimates shown here:

1. Procure the T1 connection. This takes 30 to 45 days. This activity can be done
concurrently with the other activities listed here. Asser will perform this activity.

2. Run Ethernet cable throughout the building. This activity depends on the lease being
signed and must finish before the build-out can start. The estimated time to complete
is 16 hours, which was figured using parametric estimating techniques. Asser has one
person on staff that can complete this specialized activity. His first available date is
October 5.

3. Purchase the router, switch, server, and rack for the equipment room and the four
point-of-service terminals. Delivery time is two weeks. Asser will perform this
activity.

4. Install the router and test the connection. Testing depends on the T1 installation at
demarcation. The time estimate to install is eight hours. Assers team will perform
this activity.

5. Install the switch. Based on past experience, the time estimate to install is two hours.
Assers staff will do this activity.

6. Install the server and test. The testing depends on the T1 connection installation.
Based on past experience, the time estimate to install is six hours. Assers staff will
do this activity.

7. The web team will add the new store location and phone number to the lookup
function on the Internet site. The time estimate is two hours. Asser will assign his
applications programming manager to this activity. This activity depends on the lease
being signed.

Hesham and Dalia have each written similar lists with estimates and potential resource
assignments. You begin to align all the activities in sequential order and discover a problem.
Dalia needs 14 days to hire personnel and stock shelves, meaning that the build-out must be
finished by January 16. Build-out takes approximately 120 days and cant start before
September 20 because of the contractors availability. This is a problem because Assers
Ethernet cable expert isnt available until October 5, and he needs 2 days to complete the

http://www.facebook.com/waleed.naggar 8
cabling. This pushes out the build-out start date by almost 2 weeks, which means the project
completion date, or store-opening date, is delayed a long time

After gathering more information from Asser, you head to Samirs office.

So, Samir, you conclude after filling him in on all the details, we have two options. Hire a
contractor to perform the cable run since Assers person isnt available or push the store
opening out by two weeks.

Samir asks, How much will the contractor charge to run the cable, and are they available
within the time frame you need?

Yes, they are available, and Ive already requested that Asser book the week of September
18 to hold this option open for us. Theyve quoted a price of LE 10,000.

OK, lets bring in the contractor. At this point, LE 10,000 isnt going to break the budget.

How is that planning coming anyway? Signed a lease yet?

Yes, weve signed the lease. Hesham has been meeting with Tiba construction on the build-
out. Weve used Tiba on 3 out of the last 5 new stores and have had good luck with them.

You spend the next couple of days working on the project schedule in Microsoft Project,
clarifying tasks and activities with Hesham, Asser, and Dalia. You decide that a Gantt chart
will work excellently for reporting status for this project. You stare intensely at the problem
you see on the screen. The Grand Opening task is scheduled to occur 13 days later than when
you need it! Grand opening must happen February 1 and 2, not February 13 and 14 as the

http://www.facebook.com/waleed.naggar 9
schedule shows. You trace the problem back and see that Grand Opening task depends on
Train Store Personnel, which itself depends on several other tasks, including Hire Store
Personnel and Install and Test Hardware. Digging deeper, build-out cant begin until the
Ethernet cable is run throughout the building. Asser already set up the time with the
contractor to run the cable on September 18. This date cannot move, which means build-out
cannot start any sooner than September 20, which works with Tibas availability.

You pick up the phone and dial Heshams number. Hesham, you say into the receiver, Im
working on the project schedule, and I have some issues with the Tiba activity.

Shoot, Hesham says.

Tiba Construction cant start work until the Ethernet cable is run. Ive already confirmed
with Asser that there is no negotiation on this. Asser is hiring a contractor for this activity,
and the earliest they can start is September 18. It takes them two days to run the cable, which
puts the start date for build-out at September 20.

Whats the problem with the September 20 date? Hesham asks.

Dalia wants to have the build-out finished prior to hiring the store personnel. During the last
store opening, those activities overlapped, and she said it was unmanageable. She wants to
hire folks and have them stock the shelves in preparation for store opening but doesnt want
contractors in there while theyre doing it. A September 20 start date for Tiba puts us at a
finish date of January 26, which is too late to give Dalia time to hire and stock shelves. My
question is this: is 85 working days to finish a build-out a firm estimate?

http://www.facebook.com/waleed.naggar 10
AlwaysIve got this down to a science. Tiba has worked with me on enough of these
build-outs that we can come within just a couple of days of this estimate either way,

Hesham says.

You pick up your schedule detail and continue, Ive scheduled Tibas resource calendar as
you told me originally. Tiba doesnt work Fridays, and neither do we. Their holidays are Eid
El-Fetr, Eid El-Adha and Revolution Day, but this puts us too far out on the schedule. We
must have our February 1st opening date.

I cant change the 120 days. Sounds like you have a problem.

I need to crash the schedule, you say. What would the chances be of Tiba agreeing to split
the build-out tasks? We could hire a second contractor to come in and work alongside Tibas
crew to speed up this task. That would shorten the duration to 100 days, which means we
could meet the February 1st date.

It wont happen. I know Tiba. Theyre a big outfit and have all their own crews. We
typically work with them exclusively. If I brought another contractor into the picture, I might
have a hard time negotiating any kind of favors with them later if we get into a bind.

All right, how about this? you say. Im making some changes to the resource calendar
while were talking. What if we authorize Tibas crew to work 115% of the usual hours? This
means that 75% of their crew work every Saturday and they can be off Friday? Another
option is to work 1 extra hour every day

I think Tiba would go for that as long as they get compensation. You realize its going to
cost you?

Project management is all about trade-offs. We cant move the start date, so chances are the
budget might take a hit to accommodate schedule changes or risk. Fortunately, Im just now
wrapping up the final funding requirements, or the cost budget, so if you can get me the
increased cost from Tiba soon, Id appreciate it. This change will keep us on track and
resolve Dalias issues too.

I dont think Tibas crew will mind the overtime during the holiday season. Everyone can
use a little extra cash at that time of year, it seems. Ill have the figures for you in a day or
two.

http://www.facebook.com/waleed.naggar 11
Project Scheduling Checklist

The main topics discussed in the case study are as follows:

Estimate Activity Durations
Estimate Activity Resources
Developing project schedule
Calendars
Lead and lag time
Critical path
Duration compression
Crashing
Fast tracking
Utilizing project management software
Producing project schedule
Milestones
Gantt chart
Resource leveling

http://www.facebook.com/waleed.naggar 12
4. Project Budget & Communications Plan
After creating the first draft of the project schedule network diagram, you went back to each
stakeholder to ask for cost estimates for each of the activities. Assers estimates are shown
here with the activities he gave you last time:
1. Procure the T1 connection. This takes 30 to 45 days and will have ongoing costs of
LE 3,000 per month. Procurement costs are covered in the monthly expense.
2. Run Ethernet cable throughout the building. The estimated time to complete is 16
hours at LE 100 per hour, which was figured using parametric estimating techniques
(cost = LE 1,600).
3. Purchase the router, switch, server, and rack for the equipment room and four point-
of-service terminals. The estimated costs are LE 17,000.
4. Install the router and test the connection. Testing depends on the T1 installation at
demarcation (8 hours), install the switch (2 hours), and install the server (6 hours)
with an hourly cost of LE 87 per hour. Total cost is LE 1,392.
5. The web team will add the new store location and phone number to the lookup
function on the Internet site. The time estimate is two hours at LE 96 per hour (Cost =
LE 192).
Hesham and Dalia have each written similar lists with time and cost estimates. Using this
information, you create the activity cost estimates and are careful to document the basis of
estimates. The following list includes some of the information you document in the basis of
estimates:
- Assers use of parametric estimates for his cost estimates.
- Heshams use of both analogous and parametric estimating techniques.
- Dalias use of reserve analysis to include contingencies for unplanned changes involving
vendor deliveries.
- Assumptions made about vendor deliveries and availability of the T1 and assumptions
made regarding when lease payments begin.
- The range of possible estimates is stated as plus or minus 10%.
You also document the cost performance baseline and project funding requirements. Since
this project will occur fairly quickly, there are only two funding requirement periods needed.
The communications management plan is also complete, and youve asked the key
stakeholder to review it before posting it to the intranet site for the project. You want to make

http://www.facebook.com/waleed.naggar 13
certain youve identified stakeholder communication needs, the method of communication,
and the frequency with which they will occur.

Budget Sheet
Activity Cost Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
Procure T1 Connection EGP 12,000 EGP 6,000 EGP 6,000
Run Ethernet Cable EGP 1,600 EGP 1,600
Purchase the router EGP 17,000 EGP 17,000
Installation EGP 1,392 EGP 1,392
Web Updates EGP 192 EGP 192
Build out EGP 400,000 EGP 80,000 EGP 100,000 EGP 100,000 EGP 100,000 EGP 20,000
Stock shelves EGP 20,000 EGP 20,000
Personnell Training EGP 25,000 EGP 25,000
Grand opening EGP 50,000 EGP 50,000
Contingency EGP 650,000
Total Budget EGP 1,177,184 EGP 106,184 EGP 106,000 EGP 100,000 EGP 100,000 EGP 65,000 EGP 50,000

Communication Plan
Item Audience Output Timing Resp.
Project Kickoff Project Manager Meeting Minutes Start of the project Project Manager
Meeting Retail Director
Project sponsor
Facilities manager
Weekly Project Manager Project Status Weekly (Wednesday) Project Manager
Management Retail Director Report/Project
Meeting Project sponsor Tracking Sheet
Facilities manager
Status Report Project Manager Project Status Weekly (Thursday) Project Leader
Retail Director Report
Project sponsor
Financial Manager
Senior Management
IT Contractor Project Manager Meeting Weekly (TBD) IT Head
(Sigma IT) IT Head Minutes.
Meeting Sigma IT project manager
Build-out Project Manager
contractor Retail Director
(Tiba) Meeting Tiba construction Project
Manager
Closure Project Manager Meeting Minutes At the end of the project Project Sponsor
Meeting Retail Director and major deliverables
Project sponsor
Facilities manager

Communications plan also includes a communication directory with all contact details of
different project stakeholders.

http://www.facebook.com/waleed.naggar 14
Project Budgeting and Communication Planning Checklist
The main topics discussed in the case study are as follows:
Estimate Costs
Determine Budget
Cost aggregation
Reserve analysis
Expert judgment
Parametric estimates
Cost performance baseline
Project funding requirements
Plan Communications
Determine effective and efficient communications
Review stakeholder register and stakeholder management strategy
Communications requirements analysis
Communication technology
Communication methods
Communications management plan
Stakeholder needs
Format and language for information
Time frame and frequency of communication
Person responsible for communication
Methods for communicating
Glossary of terms

http://www.facebook.com/waleed.naggar 15
5. Risk Planning
Asser knocks on your office door and asks whether you have a few minutes to talk. Of
course, you reply, and he takes a seat on one of the comfy chairs at the conference table.

You have a feeling this might take a while.

I think you should know that Im concerned about the availability of the T1 line. Ive
already put in the call to get us on the list because, as I said last week, theres a 30- to 45-day
lead time on these orders.

Were only part way through the Planning processes. Do you need to order the T1 so soon?
We dont even know the store location yet, you say.

Even though they say lead time is 30 to 45 days, Ive waited as long as five or six months to
get a T1 installed in the past. I know were really pushing for the early February store
opening, so I thought Id get the ball rolling now. What I need from you is the location
address, and Ill need that pretty quick.

Were narrowing down the choices to a couple of properties, so I should have that for you
within the next couple of weeks. Is that soon enough?

The sooner, the better, Asser replies.

Great. Im glad you stopped by, Asser. I wanted to talk with you about risk anyway, and
you led us right into the discussion. Let me ask you, what probability would you assign to the
T1 line installation happening six months from now?

Id say the probability for six months is low. Its more likely that if there is a delay, it would
be within a three- to four-month time frame.

If they didnt get to it for six months, would it be a showstopper? In other words, is there
some other way we could transfer Dalias data until the T1 did get installed?

Sure, we could use other methods. Dalia wont want to do that for very long, but
workarounds are available.

Good. Now, what about the risk for contractor availability and hardware availability and
delivery schedules? you ask.

You and Asser go on to discuss the risks associated with the IT tasks. Later, you ask Dalia
and Hesham the same kinds of questions and compile a list of risks. In addition, you review
the project information for the Atlanta store opening because its similar in size and scope to
this store. You add the risks from that store opening to your list as well. You divide some of
the risks into the following categories: IT, Facilities, and Retail. A sample portion of your list

http://www.facebook.com/waleed.naggar 16
appears as follows, with overall assignments made based on Perform Qualitative Risk
Analysis and the probability and impact matrix:

- Category: IT
- T1 line availability and installation. Risk score: Low
- Contractor availability for Ethernet installation. Risk score: Medium
- POS and server hardware availability. Risk score: Medium
- Category: Facilities
- Desirable location in the right price range. Risk score: High
- Contractor availability for build-out. Risk score: Low
- Availability of fixtures and shelving. Risk score: Low
- Category: Retail
- Product availability. Risk score: Medium
- Shipment dates for product. Risk score: Medium

After examining the risks, you decide that response plans should be developed for the last
two items listed under the IT source, the first item under Facilities, and both of the risks
listed under Retail.

Asser has already mitigated the T1 connection and installation risk by signing up several
months ahead of the date when the installation is needed. The contractor availability can be
handled with a contingency plan that specifies a backup contractor should the first choice not
be available. For the POS terminals and hardware, you decide to use the transfer strategy. As
part of the contract, youll require these vendors to deliver on time, and if they cannot, theyll
be required to provide and pay for rental equipment until they can get your gear delivered.

The Facilities risk and Retail risks will be handled with a combination of acceptance,
contingency plans, and mitigation.

Youve calculated the expected monetary value for several potential risk events. Two of them
are detailed here.

As an example, the desirable location has an expected monetary value of $400,000. The
probability of choosing an incorrect or less than desirable location is 40 percent. The
potential loss (impact) in sales is LE 1 million.

http://www.facebook.com/waleed.naggar 17
The expected monetary value of the product availability event is $50,000. The probability of
the event occurring is 40 percent. The potential loss in sales is $125,000 for not opening the
store in conjunction with the Garden and Home Show.

Calculating the monetary value of all the medium and high risks leads at the end to a total of
LE 650,000 for the project contingency.

Risk planning Checklist

- Plan Risk Management
- Identify Risks
- Documentation reviews
- Information-gathering techniques
- Perform Qualitative Risk Analysis
- Risk probability and impact
- Probability and impact rating
- List of prioritized risks
- Perform Quantitative Risk Analysis
- Interviewing
- Expected monetary value
- Plan Risk Responses
- Avoidance, transference, mitigation, and acceptance strategies
- Risk response plans documented

http://www.facebook.com/waleed.naggar 18
6. Planning Project Resources
Youre just finishing a phone conversation with Dalia, and you see Samir headed towards
your office.

Samir walks in, crosses his arms over his chest, and says: I thought Id drop by and see
whether you have signed a lease and gotten Hesham started on that build-out yet.

I just got off the phone with Dalia, you reply. The Realtor found a great location, and
weve set up a tour for tomorrow.

What has been the holdup? Samir asks. I thought wed be ready to start the build-out
about now.

Ive been working on the project plans.

Project plans, Samir interrupts. We already have a plan. That schedule thing and risk stuff
and the budget you drew up over the last couple of weeks spelled things out pretty clearly.

Im almost finished with the project plans. Id like you to take a look at the human resource
plan after I review with you what weve done to date.

I dont understand why youre wasting all this time planning. We all know what the
objectives are.

Samir, you reply, if we put the right amount of effort and time into planning, the actual
work of the project should go pretty smoothly. Planning is probably one of the most
important things we can do on this project. If we dont plan correctly, we might miss
something very important that could delay the store opening. That date is pretty firm, I
thought.

Yes, the date is firm. But I dont see how we could miss anything. You and I have met
several times, and I know youve met with Dalia and Hesham. Theyre the other key players
on this.

Let me finish, you reply. I have met with all the key stakeholders and after you review
these last few documents I have for you, were finished with the planning phase of this
project. Asser drafted a procurement statement of work. He needs to hire some external
resourcesand I noted that in the human resource management plan by the wayto help run
Ethernet cable, procure a T1 line, and purchase some routers and switches. The purchase of
the routers and switches will be accomplished using a fixed-price contract and the human
resources he needs will be procured using a time and materials contract.

http://www.facebook.com/waleed.naggar 19
Dalia also drew up a procurement statement of work for the gift product lines purchase. I
documented a lot of the human resource plan when we worked through the activity
estimating and duration exercise and put some finishing touches on it yesterday.

It includes a RACI (Responsible-Accountable-Consult-Inform) chart for all our project key

deliverables. You sneak in a quick breath because you dont want Samir to interrupt. And
the quality management plan is complete.

After your review, Ill distribute it to the key stakeholders. The quality management plan
describes how well implement our quality policy. You know the old saying, Do it right the
first time. I took the time to write down the specific quality metrics were looking for,
including the lease signing date (this one must start and finish on time) and the IT equipment
specifications, and Dalia has documented the different products lines specifications.

Samir looks impressed but you cant tell for sure.

After I look at the last of these planning documents, are we ready to actually start working?

Yes, as soon as the lease is signed. I anticipate that happening by the end of this week.

Tomorrows tour is the fifth location Dalia will look at. Shes very happy with the third
property she saw but wants to look at this last property before she makes her final decision.

Great. Lets take a look at that human plan or whatever it is.

After reviewing the last of the planning documents, Samir signs off on the project plan

RACI Chart

Activity Project Sponsor Retail Facilities IT Head

Manager Director
Project Planning R A C C C
Overall budget R A I I I
Build-out A I R I I
Project Reporting R A C I I
Technical Reviews A I I R

http://www.facebook.com/waleed.naggar 20