Running header: PROJECT CHARTER/PROJECT MANAGEMENT PLAN
PM665 Project Management Capstone
Professor G, H, Jones, SR
Project Charter/Project Management Plan
Opening a Restaurant
John Sanchez
27 January 2021
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PROJECT CHARTER/PROJECT MANAGEMENT PLAN
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Contents
1.0 Project Initiating ..................................................................................................................... 3
1.1 Project Charter .................................................................................................................... 3
1.1.1 Project Justification ....................................................................................................... 3
1.1.2 Aligning the Project to Organizational Strategy ................................................................. 4
1.1.3 Identification of Stakeholders.......................................................................................... 5
2.0 Project Planning ...................................................................................................................... 6
2.1 Defining the Scope............................................................................................................... 6
2.2 Work Breakdown Structure................................................................................................... 6
2.3 Project Schedule .................................................................................................................. 8
2.4 Project Budget....................................................................................................................11
2.5 Communications Matrix ......................................................................................................12
2.6 Risk Identification ..............................................................................................................13
3.0 Project Executing and Monitoring and Controlling .....................................................................14
3.1 Manage Quality & Perform Quality Assurance .......................................................................15
3.2 Develop & Manage the Project Team ....................................................................................16
3.3 Conduct & Control Procurements .........................................................................................17
3.4 Control Costs .....................................................................................................................18
3.5 Risk Control ......................................................................................................................19
References ..................................................................................................................................21
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
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1.0 Project Initiating
1.1 Project Charter
1.1.1 Project Justification
In this project, there is a proposal to open and launch a new restaurant in the local
community. In the current setting, opening new businesses is deemed to be beneficial not only to
the owners but also to the immediate community members. With the current tough economic
times, it is justifiable to open a new restaurant since it creates employment opportunities for the
community members. The new restaurant will require employees including waiters or waitresses,
the kitchen staff, managers, and security guards among others, and this is deemed to improve the
overall living conditions of the community members. It is also important to open the restaurant
because it boosts the tourism industry. The tourism industry is one of the major contributors to
the economic growth of many countries in the world. Local and international tourists would be
able to enjoy the services of your restaurant. Additionally, the restaurant would be able to
encourage cultural diversity among the people (William, 2021).
The various types of food and drinks from different cultures around the world that will be
served at the restaurant will encourage cultural diversity and interactions among different
cultures. These will help people to appreciate different cultures of people within the country or
internationally. Additionally, opening the restaurant will be important because it will be able to
contribute to the government’s revenue. Taxes collected by the government are important
because they help to support the government’s projects which are eventually beneficial to
citizens.
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1.1.2 Aligning the Project to Organizational Strategy
The anticipated restaurant project implementation is aligned with the strategic plan of the
organization in many ways. First, the project would be key in implementing the organization’s
long term strategic plan since it would ensure that the employees and other stakeholders of the
organization are actively working hard towards achieving a common goal. This is because the
project would involve a lot of collaborative work in planning, evaluation, executions, and review
of its implementation. While opening the new restaurant there would be a programmed laid out
to sustain the independent operations of the restaurant while still focusing on the organization’s
overall improvement.
The core goals set for the organization revolve around productivity, profitability,
customer, and employee satisfaction. This should be achieved by improving customer service
and attendance while also setting the restaurant’s priorities. It is worthwhile to note that the
opening of the new restaurant is not only crucial to the owners and its stakeholders but also to the
community at large, and hence the strategic plan for the restaurant should revolve around helping
the community members, prioritizing quality customer service, and providing a conducive
working environment for the employees (Razinkova, 2020). Additionally, the strategic plan
would provide a clear direction on the kind of services to offer in the restaurant. These can range
from eateries, and bars among others. For example, one of the strategies to employ could be the
foods and drinks to serve the customers which could market the restaurant is by providing a
unique and tailor-made menu with a wide range of foods and drinks to choose from (Van
Gelderen et al., 2005). Essentially, whilst offering quality services, the restaurant is supposed to
cater to the needs of the employees, customers, stakeholders, and still contribute to the
organization’s objectives in the long run.
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1.1.3 Identification of Stakeholders
It is apt to indicate that opening a restaurant is a collaborative aspect, and hence the new
restaurant would require stakeholders for it to start its operations. The stakeholders of this project
would include the executive board members, mid-level management, servers, and any other
interested partners, including the project sponsor. The role of the management would be to
ensure the day-in-day-out restaurant operations are running smoothly. The executive board
should include the restaurant CEO, the board of members and the official restaurant sponsors.
All the stakeholders should work synchronously to ensure that the restaurant’s goals and
objectives are met. In any successful restaurant, there are responsive and productive servers who
serve the customers. Their work includes taking orders, answering questions asked by customers
about the menu and food, selling the restaurant’s food and drinks, taking payments,
communicates orders with the kitchen staff, seating customers, and helping with customer
service.
The project sponsor, who is responsible for signing the project charter, should be actively
sought out to drive the restaurant towards the achievement of its long-term goals. The sponsor
should provide start-up capital for the restaurant to start its operations. The sponsor is also
expected to provide guidance and any additional expertise that is required to run the restaurant
competitively. Moreover, they bear the role of championing the restaurant’s operations, mainly
marketing it, promoting it, and seeking to expand its presence in the market. With all these
project stakeholders working hand in hand, the project is deemed to have a strong foundation for
success in the current competitive hotel industry.
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2.0 Project Planning
2.1 Defining the Scope.
The project aims to launch a new restaurant in the local community to create employment
opportunities. Economic tension is found everywhere, and the world is passing through the age
of competition. It is one of the dream projects to cook the food, feed the people, and be the
source of employment. No doubt, the business setups are not easy to initiate, but the objectives
are clear. The economic tension has compelled everyone to think about the new business, and it
is one of the good times to open a restaurant. People love to eat, and they prefer good food to eat.
As far as the scope of a food restaurant is concerned, food restaurants' idea is getting
stronger. The competition is getting stronger, and people love how the restaurants present the
food and bring innovation for the customers. one thing should always be remembered that the
scope has to be developed by the stakeholders and organize themselves. If the company works
hard, there will be massive room for success. If the company ignores the feature of loyalty and
hard work, no scope will work.
2.2 Work Breakdown Structure
The work breakthrough structure is essential for an organization. I have decided on the
above WBS for my project because of its importance. Certain things are crucial, and they have a
high position in WBS. The others are important, but they are secondary as they can be placed in
lower classes. All the tasks and activities are essential but work or activities are decided based on
their preference. The lower-level activities are to be performed once the higher level is
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completed, or sometimes, the positions at the higher level are further sub divided at lower levels.
I have decided to give extreme importance to food and operations. I know many other tasks
require my attention, but I think the customers come to the restaurant to eat the delicious food,
and it is their right to be served by the tempting food. The operations are necessary too because if
the environment and ambiance are not right, customers will not be attracted. There will be no use
of marketing and all other functions. So, it is essential to prefer these two functions (Torkanfar
and Azar, 2020).
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2.3 Project Schedule
1. Resourcing
21-01-2021
30-01-2021
The first step is to allocate the
resources. It is to be decided
what kind of resources are
needed to start the restaurant. It
is also required to know what
resources will be beneficial in
the future.
2. Budget
30-01-2021
01-02-2021
Preparation
The
budget
is
the
most
important thing to know for the
company.
If
the
resources
exceed the store, the plan needs
to be changed. It is to be
remembered
projects
are
that
successful
following
the
resourcing.
3. Marketing
01-02-2021
15-02-2021
Almost half of the success of a
project depends on marketing.
The social media forums will be
used for the marketing. If good
marketing will be done, it is
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expected that more customers
will be attracted.
4. Product Designing
01-02-2021
15-02-2021
Product designing, especially
the broachers and digital stuff
for marketing, is an important
task, so it is a necessary process.
5. Menu Decision
01-02-2021
15-02-2021
The menu is the backbone of the
project
management.
The
people come to the restaurant to
enjoy the delicious food. The
management and organization
must decide the menu carefully.
6. Meetings
employees
with 01-02-2021
15-02-2021
Communication is the key to
success. If there is a lack of
coordination
between
the
employees and management,
the
organization
cannot
succeed. It is essential for the
organization
how
many
employees are to be hired and
what their position will be?
After this decision, it will be
easy for the managers to
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communicate and devise a
better plan. So, meeting with
employees is significant for the
success of the organization.
7. Operations
01-02-2021
15-02-2021
The operations are an eternal
debate, and these start from the
first
day
and
continues
onwards. We cannot decide that
when the operations have to
end. The dates mentioned are
for
the
initial
operations
necessary for the restaurant's
opening. Once the restaurant is
opened, the nature of operations
will be changed.
8. Facilities decisions 01-02-2021
15-02-2021
The customers love to choose
the restaurants that give them
different incentives. The young
generation loves to go to
economic places, so it is
essential.
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
9. Process
of 01-02-2021
15-02-2021
logistics
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The logistics method is also the
same as that of operations and
will continue onwards.
10. Restaurant
01-02-2021
15-02-2021
Registration
The most important thing is to
get registration. The formalities
will be completed in fifteen
days, and it will take 2-3
months
to
complete
the
registration.
2.4 Project Budget
The following budget is needed for the design of the whole project. It is an excellent
approach to define the budget in the beginning. It gives an idea of the resources required and the
amount of budget needed. So, all the factors should be kept in mind while designing the store.
The budget should be prepared by taking all the board members' decisions and suggestions.
Collaboration is necessary to get better results.
Activities
Budget ($)
Electricity
100
Labor
300
Rent
200
Food material
375
Gas
50
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
Employees’ salaries
500
Infrastructure
450
Marketing
300
Logistics
200
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All these budget activities are designed by looking into a restaurant's work. Though it
will be a new set up, it is essential to give a good impression on the clients. We must design a
reasonable budget and provide the customers' right food products. Moreover, it is also required
for us to know how the future budget can be enhanced and how the maximum profit can be
gained (Rahimi and Kozak, 2017).
2.5 Communications Matrix
There are four stakeholders identified yet in the project. The first stakeholder of the
project is the CEO, who is the restaurant owner. He must give instructions and must make
decisions about the projects. The high management also includes sponsors who must fund the
restaurant (Ettinger et al., 2018). The content that is to be provided is about the upcoming
projects and the plans needed for the further activities. They are contacted twice a month to
update them about the hotel. The board of directors includes the managers, and they have to look
at the whole system. The employees and managers must be communicated daily. They are
required to update the higher management about the project.
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
•High
Management
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•Mid level
Management
CEO
Board of
members
Employees
Sponsers
•Low level
management
•High
Management
2.6 Risk Identification
There are always certain risks in the projects, and these risks are to be improved. The first
risk is the lack of budget. The budget should still be following the plan. If the budget is less, the
whole system will be disturbed (Brown et al., 2017). Moreover, the other risks are low quality of
food, low-quality operations, and the last thing but the most important is coordination. All the
risks can be managed by coordination among the management. It is better to have good
coordination to build a better system. The excellent food and the delicious products should be a
priority. The reason is the attitude and reaction of customers. Nothing matters much other than
the likings and disliking of customers. If customers do not like the organization, it cannot
succeed and vice versa (Nguyen et al., 2017).
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3.0 Project Executing and Monitoring and Controlling
Introduction
The business needs to be looked after and monitored for success. Monitoring and
evaluation are the key indicators for the success of a company. As the startup is new and I have
already plan to start it on a large scale, I must execute a monitoring and evaluation plan. The
monitoring and evaluation keep the investors and managers alert about the company's situation
and informs them of any improvement if needed. If the monitoring is not done for the company's
project, there will be no idea whether it leads in the right direction. My colleagues have
suggested me some techniques for monitoring and evaluating operations in the company, I have
come up with a detailed plan for the performance analysis (Alles, 2018).
The monitoring and evaluation requirements to analyze employees' performance, profit
sales, income, output, operations management, and the overall result of strategies implemented in
the company. If the evaluation's result is satisfactory, the current techniques can be continued in
the long run. If these are not up to the mark and the company is not satisfied, these should be
changed. I have planned the following procedures and processes for the hotel management
project (Nguyen, 2018).
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3.1 Manage Quality & Perform Quality Assurance
The quality of operation and procedures are managed with the help of different tools and
technologies. I have decided to implement the internal quality audit and check sheet management
tool. The audit is the process by which the quality of operations is checked. The audit ensures if
any of the problems exist in operation. It enables to see employees' performance between the
duration from the previous audit to the next audit.
The internal and external audits help the managers know the problem in the operations
(Filippiadis, 2017). Once the problem is identified, the improvements are made. The quality
audit has four steps:
•
Planning is done to execute the activities and implement the policies in future with the
help of the CEO, stakeholders, and employees
•
The teamwork prepares to implement the policies
•
The activities are executed and become functional
•
The follow up is taken to check whether the activities are executed following the policies
or need any improvement.
A checklist sheet is the management tool that lists all the procedures and activities. The
auditor must report to the managers about the execution of employees' activities and performance
(Femmer, 2017).
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3.2 Develop & Manage the Project Team
I have decided to implement the Hertzberg theory to motivate the employees. I cannot
expect the success of the hotel without the collaboration of the team. If the team is performing
well and it is coordinating, the results can be useful. There are two factors in Hertzberg's theory,
i.e. motivation factors and hygiene factors. I will try my best to implement the motivation factors
so the employees may work harder and contribute to the hotel's success. The motivation factors
say that the employees should be appreciated and should be respected. I have learned a rule from
my father that we cannot ask anyone to do a good duty or expect good work from him if we do
not appreciate him. I will implement this rule in my project. All the employees will be
appreciated and respected.
The hygiene factors like discomfortable environment, lack of satisfaction and lack of
guidance will be avoided. The team will be guided and taught all the necessary steps to be like a
team. I will implement the reward theory in the project to ensure that the employees who
perform up to the mark will have the opportunity to get a promotion and bonus (Hsiao, 2017).
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3.3 Conduct & Control Procurements
The following is the list of items needed for the hotel management project and the types
of vendors and contractors.
Infrastructure
I intend to buy the whole infrastructure at the start, and I will hire a
permanent contractor for the purpose. There will be a deal with him that he
will provide anything we need.
Bathroom
A permanent contractor will be hired to get the accessories like soaps,
accessories
napkins and towels.
Kitchen
The kitchen accessories are needed because most of the work is done in the
accessories
kitchen, so a regular and permanent contractor will be hired.
Menu cards and I already have mentioned the media manager's duties, and if he needs
software
anything regarding his work, I will recommend buying online.
accessories
Food items
The food items are needed daily because the hotel cannot run without fresh
ingredients. So, the permanent contractor will be in contact, and he will bring
the food items daily.
Meat
The permanent contractor will deliver all types of meat because it will be
needed daily.
Delivery boys
The vendors and delivery boys are needed to drop the orders and in case of
any urgency.
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3.4 Control Costs
The cost analysis must be determined after every month to know whether the operations
and activities occur within the budget. An expected profit is kept in mind, and sales are
generated. If the sales become less and a massive input in the form of investment and other
expenses, it means that cost analysis is not effective. Practical and useful methods should be used
to perform the cost analysis. Cost analysis ensures the company is going in the right direction, or
if there is any need for improvement, a cost analysis can better guide.
I have decided to implement the technique of forecasting for the cost analysis. Straightline forecasting and moving average forecasting will be used. The straight-line forecasting will
determine the future costs and revenue according to the historical data of the company's profile.
The moving average will predict the future costs from 3 months and five months of past
performance. The moving average forecasting seems better to me, and I will assign my audit
team the duty to perform the cost analysis. The other methods are also available, but I feel
comfortable with them (Kim, 2016).
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
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3.5 Risk Control
The hotel management project's possible risks are the short circuit, physical injury,
mechanical injury, electricity shortage, lack of gas, insufficient food items, employee turnover,
conflict among employees, and many others. The risks are common to a business project, and as
it is a hotel, so I am ready to face different risks ahead. The important thing is to manage the
risks effectively (Research, 2016). There are various techniques to manage the risk, and I have
chosen risk assessment for the follow up of risks.
Identification
The risk is identified to know the severity and type of risk. The types of
risks have already been mentioned.
People involved
The next step is to know the people involved likely to be harmed or the
procedures that have created the problem.
Evaluation
The risk is evaluated, and precautionary measures are decided. For
example, if a short circuit occurs, the precautionary measure will be
effective wiring to avoid it in future.
Record
The risk findings should be recorded, and these should be reported to
managers to get the best suggestions.
Assessment
The risk assessment is updated, and stakeholders' opinions are taken to
avoid such incidents in the future.
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3.6 Manage Stakeholder Engagement
It was identified that there are four key stakeholders for the hotel project and all of these
four are essential. They have their roles, and once all of them fulfill their roles, the project will
go beyond expectations.
As I will launch this project, I will act as CEO and direct the managers to report me
regularly. The sponsors and the managers are the basic people who are to be involved. The
sponsors will be invited to meetings, and they will be sent updates about our upcoming events.
They will be encouraged to sponsor the events or the innovation of our hotel. They will be
engaged in the time needed and their feasibility. The managers have to be in contact with the
hotel daily.
Without them, the system cannot run effectively. The last stakeholders are the employees
who have to manage everything and work. They have to perform their duty daily and have to
update the performance of the managers. I believe that teamwork is the most important element
of success in a project, and if the team does not work in a unit, the chances of success will be
fewer. The stakeholders will be engaged at all levels.
Conclusion:
Summing up, the monitoring and evaluation is a difficult job. Being the owner, I have
designed the plan, and I hope it will go well for the hotel, but the consequences may vary. I have
thought of the alternative of all the procedures because of the various circumstances. The
monitoring and evaluation require analyzing employees' performance, profit sales, income,
output, operations management, and the overall result of the company's strategies. If the
evaluation's result is satisfactory, the current techniques can be continued in the long run. If these
are not up to the mark and the company is not satisfied, these should be changed. The successful
PROJECT CHARTER/PROJECT MANAGEMENT PLAN
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team leader is the one who knows how to take the team in coordination. The teamwork will be
implemented in the organization, and it will be a huge success. The organizers should be ready
for the best and worse circumstances and should act accordingly.
References
Louie, William. (2021). Restaurant planning and design /.
https://www.researchgate.net/publication/35612064_Restaurant_planning_and_design
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Phase. Small Business Economics, 24(4), 365-380. Retrieved January 14, 2021, from
http://www.jstor.org/stable/40229430
Razinkova, M.. (2020). Stages Of Marketing Planning In
Restaurant Business. Ekonomika ta derzhava. 62.10.32702/2306-6806.2020.2.62.
https://www.researchgate.net/publication/339745579_STAGES_OF_MARKETING
_PLANNING_IN_RESTAURANT_BUSINESS
Brown, N. A., Rovins, J. E., Feldmann-Jensen, S., Orchiston, C., & Johnston, D. (2017).
Exploring disaster resilience within the hotel sector: A systematic review of the literature.
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Kim, B. K. (2016). Analysis of satisfiers and dissatisfiers in online hotel reviews on social
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