Term Paper: Project Management the Project Selected

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[. . .] Second phase -- Part I


After selecting the location and the site for the restaurant, the next stage is the restructuring of the area for the restaurant needs. Plans for restructuring will need to be drawn up by engineers and architects and submitted to the network and Mr. Oliver for approval. These plans then have to be submitted to the city/government building agencies in NYC. In addition, compliance as per FDA and EPA guideline will also have to be ensured during this stage.

At this stage, making the necessary arrangements with the distributors for the restaurant needs will also have to be established. Items such as fresh fruit and vegetables, meat, cheese and other items will have to be supplied to the "real" kitchen during the training stages and then to the restaurant.

Second phase -- Part II

Training of the recruits

The 15 trainees selected will have to be trained in the basic art of "cooking" using practical example for the training. This training will be conducted in a "real" kitchen of Mr. Oliver and the assistant chefs. This "real" kitchen will be in a temporary location until the restaurant is completed. All trainees will receive a stipend until the restaurant is opened after which they will be offered a salary commensurate with their experience and their performance.

Third Phase

Pre-occupancy evaluation and trainee relocation to site

At this stage the renovations are completed and the restaurant will have to pass the required inspections needed for occupancy and operation. The training it is hoped can be moved to the restaurant location by the beginning of December where the trainees will have the opportunity to work with the equipments and gadgets that might be unique to the establishment. Workflow understanding and practical tasks can be understood with real setups. Menu planning will also be decided at this time along with the selection of other staff such as the waiters, bus boys, cleaners and maintenance crew. In addition, a manager for the front restaurant will be responsible to ensure that waiters and other supporting personal understand and understand their responsibilities. A level of trust and respect will help get the best output from ever member. Team activity also changes as the team moves through various stages and periods in the group's existence. (Foster, 2003)

Fourth Phase

Marketing and advertisement

Publicity for the new location is important. The end consumers (external customers) are also the driving force behind any organization. (Rabin, Miller, & Hildreth, 1989) This marketing campaign will start from the end of September and will intensify over thanksgiving right up to Christmas.

Fifth Phase

Opening day

Home Grown opens on Christmas Eve. Food critics and celebrities are invited to review and sample the restaurants offerings.

Sixth Phase


After the first month, the entire operations will be reviewed for operational functioning and cost effectiveness. This review will also consider the criticisms and comments of the food critics and the areas for improvements.

Seventh Phase

Close of project

After the sixth month the running and operations of the restaurant will be officially handed over to a dedicated business manager and will cease being a project-operated endeavor for the food network. The lessons learnt will be documented and reviewed.

Task and project analysis

Work Breakdown Structure (WBS)

Analysis of the WBS

The WBS presented above identifies the major steps needed to undertake this project. "A good WBS simplifies the project by dividing the effort into manageable pieces." (Hobb & Sheafer, 2003)

The red shaded section of the WBS identifies the final objective of the project -- opening a restaurant in NY City and train 15 underprivileged teenagers in culinary art in the process. The green shaded section identifies the basic segregation of the tasks and the important constraints that are present. The third level identifies the individual departments/process or work functions that have to be accomplished in the process in order to complete the project.

One of the main issues that most projects face is overshooting the initial budget and non-adherence to the time of launch. (Leemann, 2002) For this project, with the hoopla surrounding opening during the holiday season, a delay could be disastrous. There is no opportunity after the holiday week for the restaurant to drawn in large crowds. In addition, in the weeks following the holidays, other issues such as greater resistance to spend money due to overspending on presents and gifts creates a bad timing for a restaurant launch. Marketing of the restaurant is also an important part of the project. Targeting the appropriate market for the high-end cuisine is important. (Guiltinan & Paul, 1988) The financial culture within an organization also affects the marketing culture in any market. (Kerin & Peterson, 2004) Marketing strategies should also observe the general code of ethics when preparing and distributing marketing material. (Penrose, 1959)

Scheduling and sequencing the various tasks is also essential. It is essential that every task identified in the WBS be assigned an ID and an estimated start and finish date. It is important when creating the schedule that all the important variables that have the potential to push back the opening date be verified. For example, the date for the chefs to take over the completed restaurant is December 1st 2004. The aim then is to get the trainees comfortable with the operations and the equipment in the new kitchen. If for some reason there is a delay in the process the latest that the kitchen and restaurant can be allowed is December 15, 2004. The project time frame is very stringent and short. It is important that all the tasks undertaken are completed in the manner that is needed. An abbreviated schedule for only the major tasks is provided below and provides a snapshot of the needs of the project.

Task ID

Task Description

No. Of days

Start date

Finish date


Meeting and contract discussion



Advertise for Trainees & Hiring



Location identification






Training for recruits



Marketing & Advertisement



Open "Home Grown"


Project Review & Closure



Gantt chart can help the project manager understand and track the constantly changing needs of the project at different stages.

Cost Estimate and cash flow

The network has assigned a maximum of $10 million for the project for the first year. This cost is however, the maximum and Food Network is aggressively working towards reducing the actual cost. There are some important variables that have the potential to impact the cost of this project. Some of the more salient ones are discussed below:

Location cost: real estate in New York is one of the highest when compared to any city in the world. In addition, the locale -- Wall Street -- has very high rental costs. Food Network is considering renting the area and not outright purchasing it dues to the financial constraints. The lease life and the contract for the property might also impact the cost of the rent. For example, the rent might be more costly for a shorter term of 5 years than a longer term of 20 years. Decision makers for the project have to evaluate the various models and determine the most cost effective and viable option for this project.

Renovation cost: The cost of creating and atmosphere that is commensurate of a high-class dining area can vary significantly based on the type of design and decor selected. Mr. Oliver prefers a more casual decor that is elegant and refined rather than traditional "stuffy" hotel dining-decor. New York houses a number of fining dining establishments such as Atelier, Jean Georges and Le Crique, to name a few. (Gourmet, 2004) The ability of this restaurant to differentiate itself is very important. Often, decor and ambience are some of the secondary defining factors for a restaurant, the primary one being the food serviced and the menu offered.

Building code compliance and government permits: Opening a restaurant requires permits and clearances from various federal, state and city government agencies. In addition, building permits and occupancy criteria might also impact the cost of the entire project. It is critical therefore to understand the specific needs based on the location for this project.

The cost of training the interns: while the salaries and compensations for the Executive chef and the assistants might be stable over time. The cost of training the interns might be higher than expected especially if the interns need more (than allotted by the project guidelines) time for basic and introductory training for the task. In addition, the hidden costs of operation such as the lost time and cost of replacing equipment, and the cost of the food that is necessary for the training is also important.

Project Organization structure and leadership

The external and internal environment within which a restaurant operates is very important. (Child, 2001) While business ethics and project goals might be the same for both parties the manner in which… [END OF PREVIEW]

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