Berta’s Pizza Business Case
Berta’s Pizza Shop consists of five locations in the city of Lawrence. Many
restaurants in the city offer efficient carryout and delivery mobile/online ordering. Berta’s
does not have an online ordering system. Customers cannot order from Berta’s menu via a
mobile device or from Berta’s website. Customers must call Berta’s to order delivery or
carryout. The current takeout/delivery order process is inefficient and negatively impacts
Berta’s current and future revenue goals.
2.0 Business Objective
Berta’s strategic goals are to increase customer loyalty, brand recognition, and
revenue. The Berta’s mobile/online ordering system (BMOS) project will support these goals
by facilitating food orders from mobile devices, and from the Berta’s Pizza website. A
mobile/online ordering system will allow Berta’s to compete in the food carryout and
3.0 Current Situation and Problem/Opportunity Statement
Berta’s Pizza has five Lawrence locations, downtown, in the north-east, north-west,
south-east, and south-west areas of the city. Berta’s current carry-out and delivery order
process is inefficient. Customers may order pizza delivery from a Berta’s location that is
further away than the Berta’s Pizza closest to the customer. The phone ordering process
places customers on-hold until a current order has been taken. Ordering over the phone
places the burden of order mistakes on the order takers. Customer loyalty has diminished
since other pizza shops began offering mobile and online takeout and delivery orders.
Additionally, revenue has decreased.
The addition of a mobile/online ordering system will enable all orders to come into
one system. The system can determine which Berta’s Pizza would be appropriate to fulfil the
delivery orders based on the customer’s location, the status of the Berta’s locations, and the
customer’s order. Customers will be able to order Berta’s menu option at will through
mobile, or stationary devices. Customers will be able to register and create an account on
Berta’s website and receive promotional offers.
4.0 Critical Assumptions and Constraints
Berta’s mobile and online ordering capabilities must be available before the annual
convention starting next year in July. Instead of building two applications, a mobile app, and
a web app, only one web-based, device-responsive system is developed. The system must
host 100 concurrent customers, and have data backup and automatic system recovery
capabilities. The system must have security and access levels for customers, and Berta’s
internal staff. Customer personally identifiable information (PII), and credit card information
must be encrypted during transmission and while stored in Berta’s databases. A team from
Hi Five Software will develop Berta’s online ordering system. The system must be hosted
on the existing servers that host Berta’s current website. A project manager must manage this
5.0 Analysis of Options and Recommendation
There are three options to consider:
1. Do nothing. Berta’s takeout and delivery comprise almost 80% of sales. We
must facilitate ordering for these customers, and engender customer loyalty by
offering promotions to customers who register on the website.
2. Purchase access to new servers to support this new capability, with Hi Five
Software as developers and a project manager.
3. Use existing servers to support this new capability, with Hi Five Software as
developers and a project manager.
After consideration by stakeholders, option three was chosen.
6.0 Preliminary Project Requirements
Description: Takeout and delivery customers may register to use the Berta’s Pizza
website. Or, customers may order from the site without registering. Customers may choose
multiple items from Berta’s menu for delivery or carryout. Customers can pay for their
orders by the methods described in the requirements document (cash, credit, debit, and
PayPal). Different website user roles will define a user’s level of website accessibility.
Roles may be assigned to customers, Berta’s staff, website developers, and others. The
order system will assign orders to Berta’s locations. An order will display on the
takeout/delivery order web page at the Berta’s location assigned to fulfill the order. Internal
users, on Berta’s staff, will have an accessibility role needed to update the menu. Another
role will update orders as completed or canceled.
7.0 Budget Estimate and Financial Analysis
A preliminary budget of $150,000 has is estimated for this project. This estimate is
based on a project manager working 15 hours per week for six months, and software
developers working 60 hours (2 developers, 30 hours each) for six months. The customer
representatives from Berta’s Pizza will not be paid from the project budget. The hourly rate
of the project manager is $55, and the hourly rate of the developers is $75. After project
completion, a maintenance cost of 35,000 for the first year is included in the estimate.
The projected benefits are established by an increase in takeout and delivery orders.
More customer loyalty and satisfaction. A projected 30% increase in takeout and delivery
orders translates to a 24% increase in orders and revenue. After one year, a $57,000 revenue
increase per pizza shop is projected. Totaling $288,000 per year increased revenue, after one
year. Exhibit A depicts the projected costs, benefits, estimated net present value (NPV),
return on investment (ROI), and the year that payback occurs. The NPV is $502,740, based
on a three-year projection. The discounted ROI is 209 percent.
Exhibit A BMOS Financial Analysis
8.0 Schedule Estimate
Berta’s Pizza expects the project to be completed before the annual convention in July
next year. The size and complexity of the project indicate a six-month duration.
9.0 Potential Risks
The main risk is the customers not using the mobile and online system for carryout
and delivery orders. To mitigate this risk, Berta’s informs each customer who orders takeout
or delivery by phone, of the mobile/online order system. Business risks are no increase in or
lower customer loyalty and satisfaction, and no increase in or lower revenue. To mitigate
these risks, the mobile and online ordering system is user-friendly, intuitive and easy to use,
and defect free.
Exhibit A: Financial Analysis for BMOS Project
Berta’s Pizza Business Case
Project Start Date:
Projected Finish Date:
Project Manager: Name, phone, e-mail
Main Project Success Criteria:
Roles and Responsibilities
Sign-off: (Signatures of all above stakeholders. Can sign by their names in table above.)
Comments: (Handwritten or typed comments from above stakeholders, if applicable)
Berta's Pizza - Owner Jim
Business representive Roy McMillan
Business representative Nancy Cortez
Business representative Tuan Nguyen
Store 4 Business
Representative - Mary
Store 5 Business
Representative - Tim
Hi Five Software
Hi Five Software CIO Tina Johnson
PMO - Director Sue
Manager Sam Schultz
Manger - Gangan Grandhe
Manager - Maurice Dillon
Manager - Janet Settle
Manager - Denise George
Manager - Gangan Grandhe
Manager - Sam Schultz
Project Management Plan
Project name: Every project should have a unique name, which helps
distinguish each project and avoids confusion among related projects.
Purpose: (write in layperson’s terms, avoid technical jargon)
The goals of the project:
Strategic reason for the project:
Time estimate: (a rough estimate)
Cost estimate: (a rough estimate)
i. Briefly list and describe the products that will be created as part
of the project. Software packages, pieces of hardware, technical
reports, and training materials are examples of deliverables.
A list of important reference materials: reference and
summarize important parts of:
i. Scope management plan
ii. Schedule management plan
iii. Cost management plan
iv. Quality management plan
v. Human resource management plan
vi. Communications management plan
vii. Risk management plan
viii. Procurement management plan
ix. Stakeholder management plans plan
A list of definitions and acronyms, if appropriate: Many
projects, especially IT projects, involve terminology that is unique to a
particular industry or technology. Providing a list of definitions and
acronyms will help avoid confusion.
II. How the project is organized
(PASTE ORG CHARTS HERE)
Organizational chart of the company sponsoring the project
Organizational chart of the customer’s company
Project organizational chart
Project responsibilities: This section of the project plan should
describe the major project functions and activities and identify the people
responsible for them. A responsibility assignment matrix (described
in Chapter 9) is often used to display this information.
III. Other organizational or process-related
List documents major processes of the project.
IV. Management and technical approaches
Management objectives: It is important to understand top
management’s view of the project, the priorities for the project, and any major
assumptions or constraints.
Project controls: This section describes how to monitor project progress and
handle changes. Will there be monthly status reviews and quarterly progress
reviews? Will there be specific forms or charts to monitor progress? Will the
project use earned value management (described in Chapter 7) to assess and
track performance? What is the process for change control? What level of
management is required to approve different types of changes? (You will learn
more about change control later in this chapter.)
Risk management: This section briefly addresses how the project team will
identify, manage, and control risks. This section should refer to the risk
management plan, if one is required for the project.
Project staffing: This section describes the number and types of people
required for the project. It should refer to the human resource plan, if one is
required for the project.
Technical processes: This section describes specific methodologies a project
might use and explains how to document information. For example, many IT
projects follow specific software development methodologies or use particular
Computer Aided Software Engineering (CASE) tools. Many companies or
customers also have specific formats for technical documentation. It is
important to clarify these technical processes in the project management plan.
V. Work that needs to be performed
Major work packages: A project manager usually organizes the project
work into several work packages using a work breakdown structure (WBS) and
produces a scope statement to describe the work in more detail. This section
should briefly summarize the main work packages for the project and refer to
appropriate sections of the scope management plan.
Key deliverables: This section lists and describes the key products created
as part of the project. It should also describe the quality expectations for the
Other work-related information: This section highlights key
information related to the work performed on the project. For example, it
might list specific hardware or software to use on the project or certain
specifications to follow. It should document major assumptions made in
defining the project work.
VI. Project schedule
Summary schedule: It is helpful to have a one-page summary of the overall
project schedule. Depending on the project’s size and complexity, the summary
schedule might list only key deliverables and their planned completion dates. For
smaller projects, it might include all of the work and associated dates for the entire
project in a Gantt chart. For example, the Gantt chart and milestone schedule shown
in Chapter 3 were fairly short and simple.
Detailed schedule: This section provides more detailed information about the
project schedule. It should reference the schedule management plan and discuss
dependencies among project activities that could affect the project schedule. For
example, this section might explain that a major part of the work cannot start until
an external agency provides funding. A network diagram can show these
dependencies (see Chapter 6, Project Time Management).
Other schedule-related information: Many assumptions are often made
when preparing project schedules. This section should document major
assumptions and highlight other important information related to the project
Summary budget: The summary budget includes the total estimate of the
overall project’s budget. It could also include the budget estimate for each
month or year by certain budget categories. It is important to provide some
explanation of what these numbers mean. For example, is the total budget
estimate a firm number that cannot change, or is it a rough estimate based on
projected costs over the next three years?
Detailed budget: This section summarizes the contents of the cost
management plan and includes more detailed budget information. For example,
what are the fixed and recurring cost estimates for the project each year? What
are the projected financial benefits of the project? What types of people are
needed to do the work, and how are the labor costs calculated? (SeeChapter 7,
Project Cost Management, for more information on creating cost estimates and
Other budget-related information: This section documents major
assumptions and highlights other important information related to financial
aspects of the project.
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