Table of Contents Executive Summary v 1. Introduction 1 1.1 Business Case 1 1.2 Project Charter 3 1.3 Scope Statement 4 1.4 Enterprise Environment Factors 5 2. Structure 6 2.1 International Business 6 2.2 Multicultural 6 2.3 Organisational Structure 8 2.4 Stakeholder Management and Communication Plan 12 2.4.1 DreamSpeech Academy Stakeholders 12 2.4.2 DreamSpeech Academy Impact Analysis Scale 13 2.4.3 Stakeholder Communication Plan 14 2.5 Information Communication Technology 15 3. Management & Resources 17 3.1 Work Breakdown Structure 17 3.2 Initial Project Schedule 18 3.3 Initial Network Diagram 20 3.4 Enhanced Project Schedule 21 3.5 Enhanced Network Diagram 23 3.6 Gantt Chart 23 3.7 Resources Allocation & Costing 24 4. Financial Cost Estimation and Appraisal 26 4.1 Cost Estimation 26 4.2 Cash flow Statement 27 4.3 Financial Methods 27 4.3.1 Net Present Value (NPV) & Discounted Cash flow (DCF) 27 4.3.2 Accounting rate of return (ARR) & Internal Rate of Return (IRR) 28 4.3.3 Breakeven Analysis 28 4.3.4 Margin of Safety (MOS) 28 4.3.5 Cash payback period 29 4.3.6 Critical path analysis 29 5. Project Control & Monitoring 32 5.1 Project Performance Analysis (PPA) 32 5.1.1 Project Performance Tracking 32 5.1.2 Earned Value Management Approach 34 5.2 Performance Management Reports 36 5.2.1 Budget-Timeliness Management System Reports 36 5.3 Key performance indicators of DreamSpeech Academy 43 5.3.1 Quality 43 5.3.2 Effectiveness 43 6. Quality Control 44 6.1 Conformance to requirements 44 6.2 Risk Management Plan and Treatment 45 6.3 Change Control 46 7. Closing 47 7.1 Acceptance Signoff 47 7.2 Executive summary 48 7.3 Analysis 48 7.4 Corrective Recommendation (Contingency Plan) 51 7.5 Lesson learn 53 7.6 Hand Over & Take over (HOTO) 54 8. Appendix 55 9. References 57 List of Tables Table 1 – Site Assessment Matrix 6 Table 2 – Organisation Structure 9 Table 3 – Impact Analysis Scale 13 Table 4 – Stakeholder Management Plan 14 Table 5 – Hardware used in ICT 15 Table 6 – Software used in ICT 15 Table 7 – WBS 17 Table 8 – Cost Estimation 26 Table 9 – Cash flow 27 Table 10 – NPV & DCF 27 Table 11 – ARR & IRR 28 Table 12 – Breakeven Analysis 28 Table 13 – Margin of Safety 28 Table 14 – Cash Payback Period 29 Table 15 – Z-Scope Method 29 Table 16 – Crash Time Method 30 Table 17 – Performance Management Plan 32 Table 18 – Baseline Budget Table 33 Table 19 – Analysis Report 37 Table 20 – Red Flag Report 38 Table 21 – Budget – Timeliness Variance Analysis Report 39 Table 22 – Earned Value Calculation 40 Table 23 – Conformance to requirements Table 44 Table 24 – Cash flow Breakdown 55
List of Figures Figure 1 – Business Case 2 Figure 2 – Project Charter 3 Figure 3 – Scope Statement 4 Figure 4 – Organizational Culture 7 Figure 5 – Initial Network Diagram 20 Figure 6 – Enhanced Network Diagram 23 Figure 7 – Gantt Chart 23 Figure 8 – S Curve 33 Figure 9 – CPI – SPI Trend 42 Figure 10 – Risk Register 45 Figure 11 – Acceptance Signoff Form 47 Figure 12 – Hand Over & Take Over Form 54 Figure 13 – Risk Matrix 55 Figure 14 – Feedback Form 56
Executive Summary DreamSpeech Academy has received success since its establishment in 2009, becoming one of Singapore’s best academies for programmes on soft skills development. Following the global trend of the increase in demand for such skills, DreamSpeech Academy has identified potential overseas markets in Southeast Asia to expand their business into. Due to the availability of local teaching talent, infrastructure, relatively safe environment and similar language and cultural backgrounds to Singapore, Malaysia has been chosen as the location to set up the first overseas branch. In this expansion project, the project team will need to register a new company in Malaysia to run the academy. Recruitment and sales and marketing activities will also take place upon obtaining all the relevant government licences and renovation of the new centre. The project will be completed upon the official opening of the new centre, which is targeted to be in end August 2019. Financial analysis of the first three years of operations after centre set up has supported this project as it has shown very positive projected returns, with a net present value (NPV) of over MYR 1.5 million. At the end of the project, the project team will hand over the new centre to the operations team in Malaysia.
1. Introduction DreamSpeech Academy is a company running established academy centres in Singapore. Unlike traditional tuition centres which only offer classes on academic subjects, DreamSpeech Academy offers programmes to develop one’s soft skills, with the most popular being public speaking. As DreamSpeech Academy is seeing its success in Singapore, it also hopes to reach out to a wider audience and provide learning opportunities to the children overseas, where such programme offers are less common. DreamSpeech Academy has selected Johore Bahru, Malaysia as a location to open its first overseas academy. The project has been approved by the Managing Director of DreamSpeech Academy (Singapore) on 14th February 2019. It will officially start on 4th March 2019 and is targeted to complete by 28th August 2019. The key milestones in this project are the location search and renovation, branding for the new branch, running of sales and marketing campaign, recruitment and the centre set up. A budget of MYR 300,000 has been allocated for the cost of this project and the management has appointed Mr Ryan Lim as the Project Manager with nine other members in the project team. 1.1 Business Case A survey on the Malaysian labour market shows that poor soft skill is one of the three main challenges faced by the workforce (Tan and Tang, 2016) as employers place more importance in soft skills when seeking job candidates (Leopold, Ratcheva and Zahidi, 2018, pp. 22-23). In a report released by HSBC in 2017, Malaysian parents ranked eighth globally in terms of spending on their children’s education. This shows that Malaysian parents are willing to spend to nurture their children. Furthermore, since there are not many speech academies in Malaysia, it is a potential market for DreamSpeech Academy. Below is the business case as presented to the management.
Business Case 1st February 2019 Project Name: DreamSpeech Academy Expansion Figure 1 – Business Case 1.2 Project Charter
Figure 2 – Project Charter 1.3 Scope Statement
Figure 3 – Scope Statement 1.4 Enterprise Environment Factors To ensure that the project will be a success, the following internal and external enterprise environmental factors have been considered: • Malaysian government laws and regulations • Potential of the Malaysian market • Availability of local teaching talents • Infrastructure • Security • Cultural compatibility • Organisational culture • Organisation structure These factors shall be further discussed in section 2.
2. Structure 2.1 International Business This project for DreamSpeech Academy, a company based in Singapore establishing a branch in Malaysia, is considered a foreign project (Clarkson, 1995). By definition, it is a Singapore-based company expanding into foreign territory. There are various macro environmental factors to consider in determining the site of expansion. Within the Southeast Asia region, several factors most relevant within the education sector have been identified and assessed in determining Malaysia to be the site of expansion. The project team utilized a Project Site Assessment Matrix (Clarkson, 1995): DreamSpeech Academy Project Site Assessment Matrix Table 1 – Site Assessment Matrix The factors included in DreamSpeech Academy’s Project Site Assessment Matrix are determined to be the most relevant in the education sector: availability of local teaching talent, infrastructure, security, cultural compatibility and language. The assessment of these five factors resulted to Malaysia being chosen as the site of expansion. 2.2 Multicultural Similar to Singapore, Malaysia is a pluralistic and multicultural society. Three main ethnic groups compose the 32.6 million national population: the Malays and Bumiputera (67.4%), Chinese (24.6%) and Indians (7.3%) (Dosm.gov.my, 2019). These ethnic groups have their own language, belief system, tradition and religion, thus defining Malaysia as a multicultural nation. Since independence has been established, one of the national objectives has been unity. Education has been identified to espouse unity among the Malaysian youth, with all educational policies having unity as their overarching objective (Nordin, Alias and Siraj, 2010). In its goal to be fully compliant with Malaysian law, DreamSpeech Academy aims to espouse unity through its instruction among all its students – Malays, Chinese and Indians. The Academy will be adopting a Polycentric perspective, orienting itself into the needs of Malaysian society. As Malay is declared as the national language of Malaysia, students will be taught in both Malay and English, as well as be permitted to deliver their speeches in either languages. Regardless of language used, students will be treated without bias or discrimination. With these principles fully exercised, the project team is confident that DreamSpeech Academy’s expansion is setup for success in Malaysia. Organizational Culture is based on set of beliefs and values, customs and written and unwritten rules developed over time and considered valid that guide the team to get the work done. A culture of organization that supports flexible communication and cooperation between teams has been significantly linked to team satisfaction (Yacizi, 2007). Cameron and Quinn had developed four broad orientation of culture (Cameron, Quinn, 1999) based differentiation on effectiveness, dynamism, internal and external criteria all affecting the project and business success.
Figure 4 – Organizational Culture At DreamSpeech Academy we have clan culture, as we believe doing the things together and mentoring. We emphasize increasing employee empowerment, participation, team involvement, more cross – functional team work, more vertical communication, a friendly atmosphere and team satisfaction. More employee recognition, reward will have a positive impact on how projects are successfully completed and how the company is better placed in a competitive position. 2.3 Organisational Structure An organization is a social entity consciously coordinated with a relatively identifiable boundary that functions relatively continuously to achieve a common goal. Also, organization is a tool that people use to coordinate their actions to achieve something they want or value (Aquinas, 2008). They are structured for the formal interaction and coordination pattern to link the tasks in order to achieve organizational objectives. We have utilized McKinsey 7S to grow the organization holistically. Due to short timeline of the project, we are using top down hierarchy structure which has following advantages. 1. Reporting is direct without ambiguity. 2. Decision and its implementations is steadfast. 3. As leadership is directly involved, project objectives and organization’s strategic objectives are aligned. The structure of the organisation is reflected in below organizational chart.
Table 2 – Organisation Structure Roles & Responsibilities Clear and explicit roles and responsibilities are defined for each role as below – Steering Committee • Governance body responsible for the feasibility, business plan and achievement of the results of the project. • Ensure that the scope of the project is in line with the agreed requirements of business owners and key stakeholders. • Review and guide as per management by objectives (MBO) process. Project Sponsor • To ensure the delivery of agreed business benefits by project. • Resolving issues, removes obstacles beyond control of project manager and acting as arbitrator. • Provide the guidance and expertise to project manager.
Project Manager • Execution for project and management of – o Stakeholders o Communication o Project Scope o Schedule o Resource planning o Cost o Procurement o Risk analysis o Change issues o Monitoring and Reporting.
Project Planner/Scheduler • Design, construct and maintain schedules levied with costs and resources for the implementation of projects and proactively highlights the challenges of resources and time in meeting schedule requirements.
Finance Manager • Forecasting & budgeting and provide insights. • Generating reports for expenses, budgets, accounts payable/receivable etc. • Looks for possibilities of financial process improvement and internal control.
Resource & Procurement Manager • To ensure the availability of resources and optimization. • Vendor and contract management. • Negotiate as per planned budget.
Risk Manager • Perform risk assessment, evaluation, reporting and develop mitigation plan.
Business Manager • Collection, analysis and interpretation of external and internal data and reports. • Develop goals and objectives for growth and implement business plans accordingly.
Performance Managers • Evaluate the project’s performance and reflect with supporting evidence using the implementation strategy, including critical success factors such as objectives, KPIs and tolerance.
Relationship Manager • Identification and management of stakeholders. • Establish a communication plan to update the stakeholders.
2.4 Stakeholder Management and Communication Plan 2.4.1 DreamSpeech Academy Stakeholders A project is considered successful when it meets its objectives, as well as the expectations of its stakeholders. A stakeholder is an individual that is actively involved in the work of the project, or has something to gain or lose as a result of the project (Watt, 2019). As with most businesses, DreamSpeech Academy has internal, external and community stakeholders. Among them are the Singapore Corporate Headquarters, the Malaysian Government, Investors, the Teaching & Administrative Staff, the Parents, the Children and the Community. There are several reasons why these are the sakeholders of DreamSpeech Academy. First, the Singapore Corporate Headquarters is intent to ensure that the Malaysia branch fulfills the mission and vision of Dreamspeech. In addition, as the corporate headquarters, it would be affected by the Malaysia branch’s financial performance in terms of Revenues, Profit and Cashflow. Second, the Malaysian Government is dedicated to guarantee that the Malaysian youth receives quality education. Also, it is determined that Malaysian culture is espoused in the DreamSpeech Academy center in Malaysia. Third, the DreamSpeech Academy Investors is concerned with that the Malaysia branch achieves a positive Return on Investment (ROI), as well executes smooth operations for future expansion and growth. Fourth, the Teaching & Administrative Staff is critical to have high engagement and morale to drive student learning. In addition, they are intent to be competitively compensated and develop holistically in their academic career. Fifth, the parents are keen to see their child’s learning and growth in public speaking. In addition, they would need to be ensured that their child is kept safe and treated well. Sixth, the child is the main stakeholder as his growth in public speaking is the essence of DreamSpeech Academy. Also, the DreamSpeech Academy Center in Malaysia provides a social venue for him to interact with other children and make friends. Lastly, the community around the DreamSpeech Academy Center in Malaysia is a stakeholder as they will be affected by the center’s impact on the neighbourhood with regard to noise, space, car traffic as well as the environment. Ultimately, the community would like to ensure that the citizens’ living quality and safety is not adversely impacted by DreamSpeech Academy’s new center in Malaysia. 2.4.2 DreamSpeech Academy Impact Analysis Scale Using an Impact Analysis Scale (Clarkson, 1995), the project team has comprehensively analyzed and ranked the importance of each stakeholder. Shown in the table below are the stakeholders, with their respective impact assessments to DreamSpeech. Internal Stakeholders such as Parents, Children and the Teaching & Administrative Staff are classified as Top Impact Stakeholders. Corporate internal stakeholders such as the Singapore Headquarters and Investors have been classified as Moderate Impact Stakeholders. Lastly, external stakeholders such as the Malaysian Government and Community are classified as Low Impact Stakeholders. DreamSpeech Academy Impact Analysis Scale
Table 3 – Impact Analysis Scale 2.4.3 Stakeholder Communication Plan Keeping stakeholders informed and involved is key in ensuring their satisfaction of the project (Watt, 2019). In this context, the project team has established a stakeholder communication plan, with a specific vehicle and frequency, based on the stakeholder impact analysis that has been shared above. Each stakeholder will be managed from the focal point of their key interest, and how DreamSpeech Academy is managing, and meeting, their key issue. This will be done on a regular basis, based on this management plan. DreamSpeech Academy Stakeholder Management Plan
Table 4 – Stakeholder Management Plan
2.5 Information Communication Technology
Table 5 – Hardware used in ICT Table 6 – Software used in ICT Information Communication and Technology (ICT) consists of Information Technology (IT) devices that able to offer access through telecommunication, media broadcast, processing and transmission all types of audio video, which come with network-based control and monitor functions. From Table #5 and Table #6, the project team had listed the necessary ICT items for commencing DreamSpeech Academy Project. Project team members utilise phase 1 equipment for project planning and management. As for phase 2 would be suitable for business operation. Generally, all the hardware and software items are purchased off the shelf. This would save us more time and cost effective. We make use of the technology resources today for collaboration, data sharing and host meeting time to time. Following by Student Management Software and Cloud Accounting Software, cloud-based application offer real-time updates; therefore all the data input are up to date. This increases project planning and management efficiency effectively. As for item such as Network Cameras, IWB, VR are meant for phase 2 when DreamSpeech Academy business operates. This would increase productivity, creativity and security assurance to all. However, the changes would create fear, uncomfortable and unfamiliarity to the staff or the individual who involves. Proper training is recommended to avoid cyberphobia.
3. Management & Resources 3.1 Work Breakdown Structure Base on Course work 1, basic WBS has been developed. In CW2, WBS has been extended in detail with work package, WBSID, activity, predecessor, duration and cost. Creation of detail WBS has helped the whole program to develop a detail Gantt Chart. The detail Gantt chart has been created with resources and cost for the whole project has been included. Table 7 – WBS
3.2 Initial Project Schedule
1. Initial project schedule was 192 days which spreads across from 14 Feb to 8 Nov 2019 2. Projected licencing duration were between 22 to 45 days. 3. Engagement of consultants were scheduled for 2 months. 4. Recruitment of staffs were projected for 1 month. 5. This led to 2 critical paths in the network diagram
3.3 Initial Network Diagram Figure 5 – Initial Network Diagram Initial diagram with two critical paths
3.4 Enhanced Project Schedule
1. Project duration reduced from 192 days to 127 days 2. Project estimated to start on 4 Mar and complete by 28 Aug 2019 3. Duration required for licencing, engagement of consultants and recruitment decrease by half its original duration 4. This led to a better network diagram as the critical path is now decreased to 1. 3.5 Enhanced Network Diagram Figure 6 – Enhanced Network Diagram After modification, we successfully cut down to one critical path.
3.6 Gantt Chart Figure 7 – Gantt Chart
3.7 Resources Allocation & Costing 4. Financial Cost Estimation and Appraisal 4.1 Cost Estimation
Table 8 – Cost Estimation
Above are cost estimation for each category for the foreign project expansion. We had brainstormed the budget cost down to the setup of the centre to ensure the funds are carefully distributed. We also ensure RM 17.5k / 5.8% as reserved capital for further important usage requirement.
4.2 Cash flow Statement
Table 9 – Cash flow
Set up of the centre begin in March and operations will start in August. Positive cashflow from year 1 to 3.
4.3 Financial Methods 4.3.1 Net Present Value (NPV) & Discounted Cash flow (DCF) Table 10 – NPV & DCF
Net present value & Discounted cash flow for the project are both positive. Project should be accepted and carried out. 4.3.2 Accounting rate of return (ARR) & Internal Rate of Return (IRR)
Table 11 – ARR & IRR ARR of 4.3 times of return generated from net income of the proposed capital investment IRR of 0.59 higher compared to the project enquired rate of return, hence project is desirable. 4.3.3 Breakeven Analysis
Table 12 – Breakeven Analysis The centre will need roughly and about 179 students to breakeven. 4.3.4 Margin of Safety (MOS)
Calculated for margin of safety on sales for respective months. Month 1 is the start of the centre operations for Year 1.
4.3.5 Cash payback period
Table 14 – Cash Payback Period Cash payback for initial investment will be on the 07 month after operation at March 2020. 4.3.6 Critical path analysis 4.3.6.1 Z-Scope Method
Table 15 – Z-Scope Method
Highlighted in Blue are activities will be the critical path for calculation and Area of probability will be 0.5398 which is close to 0.5, therefore the project completion on 125 days is highly achievable. 4.3.6.2 Crash Time Method
Table 16 – Crash Time Method
Crashing time from 127 to 120 days.
After application of the steps, additional two days are needed to crash down to 120-day target.
Total cost increase will be $822.22 for reducing 7 days to 120 days for project completion. 5. Project Control & Monitoring Project Monitoring and Controlling is a PM responsibility as well project team effort. The process describes activities related to examining and reporting project performance. Project Performance Analysis is adapted for Project Tracking and Controlling: During this process PM prepare a several set of reports review by Project offices, Central Manager and SG Central Manager. The complete project performance management communication plan in table 5.1
Table 17 – Performance Management Plan 5.1 Project Performance Analysis (PPA) PPA examines planned project events and outcomes relative to actual project events and outcomes-primarily in terms of cost, schedule. Resource. (Gerald M 2009 Pg:126) The two primary activities 5.1.1 Project Performance Tracking 5.1.1.1 Cost Tracking
Cost tracking efforts consider the baseline cost that were created in the plan phase (Gerald M 2009 Pg:127) the complete baseline budget cost plan, S-Curve graph shown table 5.2.1 & 5.2.2. the data will be compiled weekly. To ensure and effective cost control PM will review all the invoices approval incurred by the project.
Table 18 – Baseline Budget Table Figure 8 – S Curve 5.1.1.2 Schedule Tracking
Schedule Tracking efforts considers the baseline schedule estimates that were created in the planed phase. (Gerald M 2009 Pg:127) Following key data are gathered and examined for tracking purposes
The complete Project schedule tracking shown figure 5.2.3. Data will be complied weekly basis and will update to MS project file. Compilation report will be prepared for the schedule analysis.
5.1.2 Earned Value Management Approach 5.1.2.1 Earned Value Analysis
Earned value is the amount of planned work that has been accomplished to date represents the value that has been achieved or earned by the project to date as a result of that work accomplishment. (Gerald M 2009 Pg:128) It is calculated based on three core earned value elements.
5.1.2.2 Variance Performance Indicator Analysis
It is an examination of the difference between what was planned and what actually happened for budget cost and timeliness schedule. (Gerald M 2009 Pg:129)
This performance indicators will provide and early warnings that project is not executing to the plan, to get the root cause affected account control must be thoroughly examined and once done corrective action plan can be formulated and implemented (Gerald M 2009 Pg:128). 5.1.2.3 Variance Reporting Thresholds or Tolerance level
Cost or schedule Warning is defined as yellow flag < 10% which mean up to 30200 $ and performance indicator 0.9~1.1 except 0 raise as yellow flag. Cost or schedule alert is defined as red flag >10% which greater than 30200 $ and performance indicator >0.9 and > 1.1 raises as red flag. Variance Red flag report is raised to SG GM level to get further action upon approval.
5.1.2.4 Other Performance Indicator Analysis
To evaluate the earned value data and determine the forecast the future based on the progress made up to date. An estimate of project when the project will complete and the cost to complete can be determined. (Gerald M 2009 Pg:129)
5.2 Performance Management Reports Formal performance management reports are an integral part of performance management system. Monthly level report will be generated and compiled by PM and reviewed with CM and send report to SGM.
5.2.1 Budget-Timeliness Management System Reports 5.2.1.1 Project Analysis Report. (Figure 5.2.4)
This is primarily for earned value report for the project, the report displays PV(BCWS), BCWP(EV), ACWP(AC) for the current period and cumulative as to date. The schedule, cost variance as well SPI, CPI as well the Budget at completion for Cost and time data. Another sample analysis Report on the 31 March 2019 and 31 May 2019 based on assumed actual cost and % complete in table 5.2.7.
Table 19 – Analysis Report 5.2.1.2 Red Flag Report. (Table 5.2.5)
This monthly report summarizes the cumulative performance data at the end of accounting period and identifies those control account with cost schedule variance exceeding with project tolerance level 10% set by PM. Another sample Red Flag Report on the 31 March based on assumed actual cost and % complete in table 5.2.8. Red color indicates that it exceeds the 10% threshold level and triggers to generate Variance Analysis report. up to 10 % threshold level warning indicates a slightly unfavorable variance.
Table 20 – Red Flag Report 5.2.1.3 Variance Analysis Report (Table 5.2.6)
The purpose of this report is to provide project management with and understanding of the nature of problem causing the variance and the impact of the overall project. After complete project manager will review the form to confirm accurate variance causes and identified corrective plans are established .it will be evaluated monthly to monitor the implementation of current action plans.
Table 21 – Budget – Timeliness Variance Analysis Report 5.2.1.4 Earned value Management performance indicators Charts. (Figure 5.2.7)
This chart prepared each month for the project as a whole and each control Earned Value Calculation Cumulative Earned Value graph with assumed actual cost and % completed shown in Figure 5.2.7 and
Table 22 – Earned Value Calculation
Data will be compiled monthly basis and analysis before going for subsequent analysis. Based on the assumption report complied on 31 March 2019, calculated all 3 values shown as table Figure 5.2.8
From the calculated value PV= EV so the activity performed on march period goes on schedule, but PV< AC condition met which mean activities carried out cost overrun occurs. The data need to further evaluate with Variance analysis indicator. Another sample compiled on the 31 August 2019 Figure 5.2.9. based on the assumption its PV < AC which mean cost overrun occurs and PV < EV activities performed ahead schedule. 5.2.1.5 Performance Indicator Charts. (Figure 5.2.11)
This chart prepared each month for the project as a whole and each control account. This graph is useful for tracking variance trends.
Figure 9 – CPI – SPI Trend
5.3 Key performance indicators of DreamSpeech Academy
KPIs are a type of performance measurement used to evaluate the success of an project. the five basic constraints in project management are Timeliness, budget, quality, effectiveness and Scope which are often used to measure the performance of projects. Lindhard and Larsen (2015) conducted research on the key process factors that affect project performance, indicating that cost and time are directly measurable, unlike scope and quality, which are subjective and therefore complex to measure. Lech (2013) found that over time, it matters less whether a project has met its timelines and constraints. after project competition, the impact on customer and customer satisfaction becomes more relevant. Timeliness and Budget key API is covered in Chapter 5.2&5.3
5.3.1 Quality
Number of Errors How often during the project things need to be repaired? This is the number of times we must do something new and rework, which also affects budget revisions and calendar revisions.
Result Interpretation Error doesn’t affect cost and schedule – Good Error that affect cost within reasonable tolerance level set by PM 10% – Reasonable. Above the tolerance level will be POOR
5.3.2 Effectiveness
Effectiveness is all about how we spend money, time appropriately and mange effectively the project. # milestones completed on time with sign off. Tracking will be based on milestone status report. no of milestones, each activity was the milestone completed and signed. Result Interpretation
> 80% of total milestones completed GOOD 50% to 80% of milestones. completed AVERAGE < 30% of milestones. completed POOR
This KPI merely measure the Operational efficiency.
6. Quality Control 6.1 Conformance to requirements According to the Scope Statement, the project team had determined venue, licensing and people are the main category that must be monitor and managed to fulfil the project scope. Thus, we make use of two verification tools: • Conformance testing to verify project process, activity and output as it conforms to a standard, specification or contract. • Compliance testing to verify project process, activity and output as it complies with laws and regulations. Table #17 below shows how the categories of requirements breakdown are tested.
Table 23 – Conformance to requirements Table Compliance Risk is ranked #5 of 20 Business Risks (Spacey, 2019). Compliance risk is critical as the direct losses impact on the company in terms of branding images as well as legal penalties in a dollar form as failure to comply with law and regulation. Therefore, we allocate more attention and seek local resources to assist in the license 6.2 Risk Management Plan and Treatment Risk Management Plan is carried out to document the foresee risk, estimating their risk this define the response to the event accordingly. Thus, we utilise the risk register table to manage the project risk by phases.
Figure 10 – Risk Register Figure #10, Risk Register Table is a communication tool the project team used to document the risks and to monitor the action corresponding to the line events. This tool significantly increases the engagement of team member in risk management evaluating the impact and prioritising high-risk level events. Regards to ranking the risk, we make use of the 5×5 risk assessment scoring matrix (Ristić, 2019), that define risk level by considering the probability of the event occur against the impact of the project objectives in terms of time, cost, quality and performance. For example, delay in renovation have a very high-risk level which may due to poor project management and cause the whole project timeline delayed. Therefore, putting an extra man to complete the renovation in time would increase in cost and might decrease the quality of work. To adequately address the risk to quality control team and stakeholders, risk management document would be recommended as it offers a quick snapshot of overall risk, the number of each probability and impact level to the project. 6.3 Change Control Change control process in project management is inevitable. Change control document play an essential role in the process. Project changes occurred when it is deemed for necessary to change the scope, time or cost of the previously approved project deliverables. Change control document reference is available in the Appendix. According to Figure #13, project team want to have changes in adopting new tech equipment to replace TV to emphasise creative teaching methodology. Therefore, the change request is track accordingly through a procedure of: • Identifying and plan the required change, • Validate the change whether it is valid or required, • Estimate the risk, analysis cost and effort impact of change, • Leverage multiple sets of reviews from managers and analyse the changes, • Control on the execution of change and assign staff responsibilities, • Implementation of change and include verification of success, • Close the change request upon completion.
7. Closing 7.1 Acceptance Signoff
Figure 11 – Acceptance Signoff Form
After completion, the Centre manager from Malaysia will check the respective tasks and sign the acceptance form. 7.2 Executive summary The project objective has met for Dream speech Academy providing individuals to express and impress by transforming public speaking into a first learning journey. Stakeholder such as parents, children, teaching and administrative staff, Singapore headquarter, investors, Malaysia government and community is identified. The satisfaction level for each expectation is different, to identify the priority, we have done up an impact analysis scales to view the impact and do an assessment to it. To add on, we also done up a stakeholder communication plan to set the frequency of meet up with stakeholder and satisfied their requirement such as meeting the parent with trainer one time a week. As such, the entire stakeholder is all well taken care of in Dream speech academy. 7.3 Analysis Procedure and System Use in the Dream speech academy Project Scope To identify which is our objective, identify the goals and what we aim to achieve at the end of the day. Plotted out the deliverables, milestone, technical requirements, limitation and exclusion and lastly reviewed with the customer in dream speech academy. We listed down the statement of work (SOW) for the organisation. Project Charter Assign the appointment for every individual team member for the roles and responsibility needed to do on the project description, highlighting the problem statement and risk involved for the project. Project Priorities We set the priority for the project scope as some of these will take up longer time such as licencing and approval from the authority on Malaysia government. Not just on the project, we also set priority for the team member on who does what task first, followed by who do next. To add on, we are monitoring the project to execute with our contingency plan when necessary, whether to push in more workforce to do the project faster or add on more fund to support the work task.
Work breakdown structure We have done up the hierarchical outline (map) to identify the work task involved. Next, we create the work breakdown structure for the organisation as this will clearly state down the roles and responsibility for the work task and who is responsible for it. Doing out work packages that consist of what work to do, time to needed to complete, the budget for the work task, resources needed, person responsible for it and identifies the monitoring points. Activity on Node (AON) We use this to calculate the critical path for the project. Hence, we can plan out the most extended duration needed for the project to be completed. Plotting out the early start time (EST), duration needed and late start time (LST). Gantt Chart Inserting the work task and the duration needed, we plotted out in the Gantt chart; we can see a clear picture of the entire project that is going to derives for the next six months. The Gantt chart shows the critical path highlighted in red, which we focus on this path to apply for the government grant. Hence, we will also need to monitor and control when the project starts as to change the days if got delay or execute in with our contingency plan for the project. Stakeholder Management Identify the stakeholder and analysis with impact analysis scale to justify the top impact stakeholder together with impact assessment to grade them. Stakeholder Communication Plan Identify the communication channel to communicate and frequency for the session by using the stakeholder management plan. Z Factor (Variance) We calculated the z factor which shows the percentage to complete the project on time. The value we got was 53% > 50%, which we can complete the project on time. Crash time We calculated the crash time for this project to evaluate if we want to complete this project early, how much cost will be involved. From 127day to 120days, the cost increase by 822 RM. We decided to go ahead with the crash time. Net present value (NPV) We calculated the NPV which show 1,531,892RM which more than 300,000RM (investment). It is commanded to invest in the business. Accounting rate of return (ARR) We calculated the ARR which show 4.3; hence, the return rate is very high for investment. The internal rate of return (IRR) We calculated the IRR which shows 59% which is higher than 12% to 16% base on standard market business IRR percentage. Discount cash flow (DCF) We calculated the discount cash flow and got 1,931,891.71RM, and the discount cash flow is higher than the cost of investment 300,000RM. It is suitable for investment in this business. Payback We calculated the payback ad got 7month. This shows that the return of capital is speedy. The margin of Safety (MOS) We calculated the MOS and got 71 for the first month, positive value. As the month gets further, the value will also increase; hence, the risk level will reduce eventually. Breakeven We calculated the breakeven for the number of students to break even. We will need 179 children to break even, from 180 children recruited, the profit will start. Control System (EVM) We calculated the EVM, and this project is over budget and behind schedule at the end of six months. It shows negative for the project. 7.4 Corrective Recommendation (Contingency Plan) Cost For the cost planned, we planned out the allowance for ±15%. This may have inflation or unforeseen circumstances happen during the project. Moreover, we are locating in Malaysia, and it is likely to have internal corruption that we will need to pre-plan ahead. Next, the act of God such as flooding may happen during the project period progression period. Schedule For a start, we do not just assign a project manager to overview this project, and we will need to have two other assistant that helps to travel to Malaysia from time to time to report the states for the project weekly. Next, whichever work task that completes early, we can bring forward to the next work task. However, for any project that causes delay, will need to immediately report up to the higher authority to make the right decision and take necessary action which either immediately executes with more resources and finances to support the project or wipe out the existing working personnel and replace with another reliable personnel. Not just that, most of the rest of the work task behind this task will cause delay. Money compensation is involved for project delay, which project manager will need to calculate the level of risk and damage to make the right decision. The time to meet in the schedule is essential, however, quality produces is also essential. They both drive on the same frequency. Example: recruit three students for 1month verses to recruit 30 students in 1 month, time meet but objective not meet. Resources The resources problem that we will likely meet is the trainer; it is not easy to find a qualified trainer. Dream speech academy does not just rely on fresh graduates; we will need to affiliate with other schools. In the case of trainer not enough, we will bring in a trainer from another school. Overwhelming student, for the case of an overwhelming student, we can rent a classroom from nearby school around our training centre. With the necessary space and utility support, we can overcome this overwhelming situation. Effectiveness Consistent video recording for the trainer will help us to maintain the right syllabus to train the kids. Likewise, regularly monitored by the centre manager, it can adjust or improve trainer skills and knowledge. The trainer must also go through a test every six months set by Singapore headquarter, and this is to ensure that trainer is still on the correct track and determine if the trainer can promote to the next senior level to take up a bigger class or other soft skill. Singapore is the lead of our business organisation. Every six month, we update and upgrade the training topic and syllabus to Malaysia centre in order for the school trainer to keep on tracks. Quality Children participating in the competition for public speaking or storytelling will also prove to the market on the quality of the child that had been trained well to perform to the market. Dream Speech academy satisfied parent with the result shown by the child for the performance. With satisfaction survey feedback provides by the parents will help the organisation to keep up the standard and quality. The probability for the organisation to incur the number of errors during the project phase had been reduced from 60% to 10%. As we have planned out the corrective work order, contingency plan, risk factor and also closely monitoring and controlling of the project management. Unforeseen circumstances may also happen; hence, we do not know what will be coming but what we can do is set aside a financial budget for such situation; hence project manager is also will train and ready to overcome the problems arise.
7.5 Lesson learn
Setting up the Dream speech academy helps identify many tools we can use in project management to support in our project. As mention above at 7.3, we stated down every single step taken to approach the project objective of dream speech academy. Apart from the tools we used in project management, we also realise that communication within the team member and cooperation from a team member is critical to meet the project accomplishment. Without every team member contribution, the project will never be able to achieve it. A team leader will need to “ensure”, “be sure” and “make sure” every single member plays their parts well and responsibly. Balancing time, cost and scope to achieve the best quality result is always the objective in project management. In order to allow the work task to proceed in a well-planned manner, a closely monitoring system must be consistently checked and review. Approval by a different member will also help to look out if there is any miss out items for the task. Every project always has a story behind the success.
7.6 Hand Over & Take over (HOTO) Figure 12 – Hand Over & Take Over Form
Handover document to Malaysia team after finalisation to start operations.
8. Appendix
Cash flow Breakdown
Table 24 – Cash flow Breakdown Figure 13 – Risk Matrix Figure 14 – Feedback Form 9. References 1. Aquinas, P. (2008). Organization Structure & Design: Applications And Challenges. Excel Books. 2. Anon, Using ICT Tools In Project Planning And Management. Articles Avenue. Available at: https://articlesavenue.weebly.com/technology/using-ict-tools-in-project-planning-and-management [Accessed February 27, 2019]. 3. Clarkson, M. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 20(1), pp.92-117. 4. Clarkson, M. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 20(1), pp.92-117. 5. Cameron, K. and Quinn, R. (1999). Diagnosing and Changing Organizational Culture. Addison-Wesley. 6. Dosm.gov.my. (2019). Department of Statistics Malaysia Official Portal. [online] Available at: https://www.dosm.gov.my/v1/index.php?r=column/ctwoByCat&parent_id=115&menu_id=L0pheU43NWJwRWVSZklWdzQ4TlhUUT09 [Accessed 24 Feb. 2019]. 7. HSBC Bank Malaysia Berhad (2017). PARENTS IN MALAYSIA SPEND AN AVERAGE OF RM109,470 ON THEIR CHILD’S EDUCATION. [online] Available at: http://file:///C:/Users/user/Downloads/170731-parents-in-malaysia-spend-an-average-of-rm109470-on-their-childs-education.pdf [Accessed 25 Feb. 2019]. 8. Leopold, T., Ratcheva, V. and Zahidi, S. (2018). The Future of Jobs Report 2018. Geneva: World Economic Forum, pp.22-23 9. Nordin, A., Alias, N. and Siraj, S. (2010). National Integration in Multicultural School Setting in Malaysia, 1(1), pp.21-29. 10. Project Management Practitioner’s Handbooks Ralph L. Kliem, Irwin S Ludin 1998. 11. Project Management Metrics, KPI, Dashboards Dr Harold Kerzner 3 rd Edition.
12. Ristić, D. (2019). A TOOL FOR RISK ASSESSMENT. [online] Znrfak.ni.ac.rs. Available at: http://www.znrfak.ni.ac.rs/SE-Journal/Archive/SE-WEB%20Journal%20-%20Vol3-3/pdf/3.pdf [Accessed 25 Feb. 2019]. 13. Spacey, J. (2019). 20 Types of Business Risk. [online] Simplicable. Available at: https://simplicable.com/new/business-risk [Accessed 25 Feb. 2019]. 14. Tan, K.S. and Tang, J. (2016). New skills at work: Managing skills challenges in ASEAN-5. [ebook] Singapore: Research Collection School Of Economics, p.45. Available at: http://ink.library.smu.edu.sg/soe_research/1891 [Accessed 24 Feb. 2019]. 15. The Complete Project Management Methodology and Toolkit Gerard M. HILL 2009. Page 125~131 16. Watt, A. (2019). 5. Stakeholder Management – Project Management. [online] Opentextbc.ca. Available at: https://opentextbc.ca/projectmanagement/chapter/chapter-5-project-stakeholders-project-management/ [Accessed 24 Feb. 2019]. 17. Yazici, H. (2007). ROLE OF ORGANIZATIONAL CULTURE ON PROJECT SUCCESS.
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