Master of Business Administration

Student Details (Student should fill the content)

Name Rajendra Sasiraj
Student ID (UWIC ID and ICBT ID) Cardiff Met ID: 20107946 ICBT ID: CL/Cardiff MB/12/46

Batch No 51

Scheduled unit details

Unit code MBA 7023
Unit title Project Management Theory and Practice Assignment 2
Assignment Details
Nature of the Assessment REPORT
Topic of the Case Study GIVEN
Learning Outcomes covered YES
Word count 4300 words
Due date / Time 18/03/2017
Extension granted? (For Office use only) Yes No

Declaration
I certify that the attached material is my original work. No other person’s work or ideas have been used without
acknowledgement. Except where I have clearly stated that I have used some of this material elsewhere, I have not
presented it for examination / assessment in any other course or unit at this or any other institution

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Assignment Type & Title: Project Management Theory and Practice Assignment (Individual Work)
For student use: Critical feedback on the individual progression towards achieving the assignment outcomes

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 Master of Business Administration

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PROJECT MANAGEMENT
THEORY AND PRACTICE

Name: Rajendra Sasiraj

University Student No: 20107946
ICBT Student No: CL/Cardiff MB/12/46
Date of Submission: 15/03/2017
 PROJECT MANAGEMENT THEORY AND PRACTICE

Acknowledgement

RAJENDRA SASIRAJ I
 PROJECT MANAGEMENT THEORY AND PRACTICE

Contents
Acknowledgement ..................................................................................................................... I
Contents .................................................................................................................................... II
Figure Contents ........................................................................................................................IV
Table Contents .......................................................................................................................... V
Declaration ...............................................................................................................................VI
Executive Summary ............................................................................................................... VII
1.0. Introduction ......................................................................................................................... 1
2.0. Importance of the Project to Corporate Strategy of The Company .................................... 3
2.1. Project Feasibility Analysis ............................................................................................ 4
2.1.1. PESTEL Analysis .................................................................................................... 4
2.1.2. SWOT Analysis ....................................................................................................... 5
2.1.3. Porters Five Force Analysis ..................................................................................... 7
2.1.4. Problem Need Opportunity Analysis and Importance of this Project...................... 8
2.1.5. Business Option and Its Impact on Project Feasibility ............................................ 8
2.1.6. Financial Feasibility through Net Present Value (NPV) Analysis & Discounted
Payback Period................................................................................................................... 9
3. Project Scope Management.................................................................................................. 11
3.1. Project Charter .............................................................................................................. 11
3.1.1. Business Case......................................................................................................... 11
3.1.2. Technology Behind the New Biscuit Product ........................................................ 11
3.1.3. Project Description................................................................................................. 12
3.1.4. Project Information ................................................................................................ 13
3.1.5. High Level Project Milestone Schedule. ............................................................... 14
3.1.6. Project Team Formation and Assigning Authority & Responsibility.................... 15
3.2. Work Breakdown Structure (WBS) .............................................................................. 16
3.2.1. Work Breakdown in A List Format for Wide-Ranging Understanding ................ 16
3.2.2. Cascading Distribution of Activities Under Each Milestone. ................................ 18
4.0. Project Time and Resource Management ......................................................................... 19
4.1. Resource Breakdown Structure (RBS) ......................................................................... 19
4.2. Resource Management Plan.......................................................................................... 20
4.3. RACI Matrix ................................................................................................................. 21
4.4. Project Time Schedule .................................................................................................. 23

RAJENDRA SASIRAJ II
 PROJECT MANAGEMENT THEORY AND PRACTICE

4.5. Cost budget, Cost Distribution Plan and Estimation Techniques ................................. 24
5.0. Project Quality Management Plan .................................................................................... 28
5.1. Planning Quality ........................................................................................................... 29
5.2. Quality Assurance (QA) ............................................................................................... 30
5.3. Quality Control (QC) .................................................................................................... 31
6.0. Risk Management Plan ..................................................................................................... 32
6.1. Risk Identification......................................................................................................... 33
6.2. Risk Register ................................................................................................................. 34
6.3. Risk Analysis ................................................................................................................ 35
6.3.1. Risk Impact Scale .................................................................................................. 35
6.3.2. Risk Assessment .................................................................................................... 35
6.3.2. Risk Severity .......................................................................................................... 35
6.4. Risk Monitoring & Controlling .................................................................................... 36
6.5. Risk Mitigation ............................................................................................................. 36
7.0. Project Communication Plan ............................................................................................ 38
7.1. Communications Matrix ............................................................................................... 39
7.2. Reporting Communication ............................................................................................ 39
Conclusion ............................................................................................................................... 41
References ................................................................................................................................ 43
Appendixes .............................................................................................................................. 45
Attachment 1: - Network Diagram ...................................................................................... 45
Attachment 2: - EST - Cost Breakdown .............................................................................. 46
Attachment 3: - Project Gannt Chart ................................................................................... 47

RAJENDRA SASIRAJ III

 PROJECT MANAGEMENT THEORY AND PRACTICE

Figure Contents

Figure 1- Luckyland Biscuit Company Logo ............................................................................ 1

Figure 2- Market Shares Analysis with Competitors Products.................................................. 1
Figure 3- Sales Performance of Luckyland ............................................................................... 2
Figure 4- Achieving Competitive Advantage ............................................................................ 2
Figure 5- Three lenses of identify product at Luckyland........................................................... 3
Figure 6- SWOT Analysis Framework (David, 1993).............................................................. 5
Figure 7- Porters Five Force Analysis ....................................................................................... 7
Figure 8- Technology Behind the New Biscuit Product .......................................................... 11
Figure 9- Project Management Process ................................................................................... 12
Figure 10- Major Project Constraints in this New Biscuit Project .......................................... 12
Figure 11- Cascading Distribution of Activities Under Each Milestone. ................................ 18
Figure 12- Project Team Members .......................................................................................... 19
Figure 13- Project RACI Matrix .............................................................................................. 22
Figure 14-. Sample Project Network Diagram ........................................................................ 23
Figure 15- Fundamental Steps of Risk Management (Mitre, 2014). ...................................... 32
Figure 16- Project Communication Management Plan............................................................ 38

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 PROJECT MANAGEMENT THEORY AND PRACTICE

Table Contents

Table 1- PESTEL Analysis ........................................................................................................ 4

Table 2- SWOT Analysis ........................................................................................................... 6
Table 3- Impotency of the Project for Company Strategy ......................................................... 8
Table 4- Business Option with their New Product .................................................................... 8
Table 5- Net Present Value (NPV) Analysis ............................................................................. 9
Table 6- Discounted Payback Period ......................................................................................... 9
Table 7- Feasibility Summary .................................................................................................. 10
Table 8- Project Information.................................................................................................... 14
Table 9- Project Milestone Schedule ....................................................................................... 14
Table 10- Project Team Members and Their Responsibilities................................................. 15
Table 11- Work Breakdown in a List Format .......................................................................... 16
Table 12- Resource Management Plan .................................................................................... 20
Table 13- Project Time Schedule............................................................................................. 23
Table 14- Project Time Schedule............................................................................................. 27
Table 15- Luckyland Company’s Quality Management Objectives........................................ 28
Table 16- Quality Roles, Tools and Problem-Reporting Procedures ...................................... 31
Table 17- Four Potential Strategies of Rick Management ....................................................... 33
Table 18- Risk Register ........................................................................................................... 34
Table 19- Risk Impact Scale .................................................................................................... 35
Table 20- Risk Assessment ...................................................................................................... 35
Table 21- Risk Severity Matrix................................................................................................ 35
Table 22- Four Potential Strategies of Rick Mitigation ........................................................... 36
Table 23- Luckyland Company's Risk Response Plan ............................................................ 37
Table 24- Communications Matrix .......................................................................................... 39
Table 25- Reporting Communication ...................................................................................... 39

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Declaration

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 PROJECT MANAGEMENT THEORY AND PRACTICE

Executive Summary

This research report illustrates about Luckyland Company’s New Project, which is a Herbal &
Sugar free biscuit product. There are many biscuits available in the market, but there only few
Herbal & Sugar Free Biscuits available, but others don’t have the proper processing
technology. Consequently, Luckyland decided to use this opportunity as an advantage. Report
illustrates about importance of project to corporate strategy of the company with project
feasibility analysis comprises with PESTEL Analysis, SWOT Analysis, Porters Five Force
Analysis, Problem Need Opportunity Analysis and Importance of this new Biscuit Project,
Business option and its influences on this project feasibility, Financial Feasibility through Net
Present Value (NPV) Analysis and Discounted Payback Period (DPP). Project Scope
Management includes Project Charter and Work Breakdown Structure (WBS).

Project Charter comprises with business case, technology behind the new biscuit product,
project description, project information, high level project milestone schedule and project team
formation and assigning authority & responsibility. Project Time and Resource Management
comprise with Resource Break Down Structure (RBS), Project Time Schedule (Gantt Chart
and Network Diagram), Cost budget and Cost Distribution Plan done by EST Method.

This assignment report also illustrates about Luckyland company’s quality plan, quality
assurance and quality control with some major points in this new biscuit project. In this risk
management plan illustrates about Risk Identification, Risk Register, Risk Analysis (done by
Risk Impact Scale, Risk Assessment & Risk Severity), Risk Monitoring & Controlling, and
Risk Mitigation. Project communication plan illustrates about project communication matrix
and Project related reports through communication. Finally, this assignment report is end up
with the appropriate conclusion.

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1.0. Introduction

Sri Lankan Biscuit Industry plays significant role in the country’s business & economic
development. Biscuit production also plays a significant role in FMCG (Fast Moving
Consumer Goods) Line and attracting all kinds of age groups and it is a main source of wide-
ranging employment openings. Consumption of biscuit products has dramatically increased
when the Sri Lankan government adopted new open economic policies (Business Today,
2009). The quantity of biscuit products consumption by customers in Sri Lanka is 43,964
metric tons per year and its value of the products is around Rs.17.76 billion (Anon, 2016).

Figure 1- Luckyland Biscuit Company Logo

The Luckyland Biscuit Manufacturing company is a Private Company, which was found at
“

1954, it is owned by the family of the well-known Sri Lankan world class cricket spin wizard
Muttiah Muralitharan and it is located at Kundasale in Kandy (Luckyland, 2011). This
company is well known leading biscuit and cookie manufacturer in Sri Lanka . ”

According to the below mentioned figure illustrates the market shares of Biscuits and Cookies
Products from Munchee Company, Maliban Company, Luckyland Company and Other Brands
manufacturing companies.

Figure 2- Market Shares Analysis with Competitors Products

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According to the below-mentioned chart, Figure 03 clearly indicates the total Luckyland
Biscuit and Cookie Products Sales against Time Period.

Figure 3- Sales Performance of Luckyland

When considering to Sri Lankan market for Biscuit & Cookie Products, customers always
searching for good quality of tasty products, comprising with various flavors, which can
purchase at a reasonable price and can be acquired in various categories (Low Sugar, Puffs,
Carols, Herbal, etc.). Therefore, Luckyland Biscuit company’s top level management decided
to achieve a competitive advantage in the biscuit industry, so they conduct a serious market
analysis as result; people are more concern on their health and diet due to educational
development. People are looking for the best quality, healthy and hygienic and tasty food items.
Even they are willing to acquire price premium products. Based on the results company is
planned to go for Differentiation Business Strategy considering the Market Segments.

Figure 4- Achieving Competitive Advantage

In year 2017 there will be New Biscuits introduced to market which is Herbal & Sugar Free
Biscuits. The technology is going to be used for these products are very outstanding. Therefore,
this kind of innovation can leverage the Luckyland’s market share and profit. They can achieve
competitive advantage in changing business environment.

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 PROJECT MANAGEMENT THEORY AND PRACTICE

2.0. Importance of the Project to Corporate Strategy of The Company

Luckyland Biscuit Company’s corporate strategy is Market and Product Development through
its process and product innovation. Luckyland Biscuit Company’s objective is to achieve 65%
of the revenue via innovative products by year 2022. The concept of “new thinking” at
Luckyland Biscuit Company’s breaks downs the barriers for innovation, even whole Sri Lanka
knows its reputation. Re-engineering, re-thinking resource utility, exploiting processes and the
relentless pursuit of excellence is the Luckyland Biscuit Company’s lifestyle. The passion to
innovate at Luckyland Biscuit Company is always be a 'value addition' partner to Luckyland
customers by rethinking FMCG (Fast Moving Consumer Goods) product and its components
with category professional experts and Inspiring leaders leading and guiding. Luckyland seeks
to differentiate in their product, process and organizational business model. Luckyland believe
innovation is a tool for competitive advantage which can take Luckyland to greater heights by
leveraging on company’s unique resources and core competencies.

In year 2017 there will be New Biscuits introduced to market such as; Herbal & Sugar Free
Biscuits. The technology is going to be used for these products are very outstanding. Nowadays
people are more concern on their health and diet due to educational development. People are
looking for the best quality, healthy and hygienic and tasty food items. Therefore, this kind of
innovation can leverage the Luckyland’s market share and profit. There are many biscuits
available in the market, but there only few Herbal & Sugar Free Biscuits available but others
don’t have the proper processing technology. So, Luckyland decided to use this opportunity as
an advantage.

Figure 5- Three lenses of identify product at Luckyland

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2.1. Project Feasibility Analysis

2.1.1. PESTEL Analysis
Below mentioned Table No.01 clearly illustrates about the Luckyland Products on Political,
Economic, Social, Technological, Environmental and Legal aspects. This framework used to
study and monitor the macro-environmental factors which have a significant impact on
Manufacturing Products (Anon, 2016).

Table 1- PESTEL Analysis

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2.1.2. SWOT Analysis

SWOT analysis gives a clear perspective of external & internal situations for the organization,
which plays a major role in strategic planning process (Anon, 2010). Internal factors which
influence the organization are known as; Strength (S) & Weakness (W). External factors which
influence the organization are known as; Opportunities (O) & Threats (T) (David, 1993) .

Figure 6- SWOT Analysis Framework (David, 1993)

Below mentioned table illustrates the SWOT analysis, which explains about internal & external
influencing factors of Luckyland Company.

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Table 2- SWOT Analysis

Luckyland company’s strengths and opportunities recognized in above mentioned Table that
are need to be properly leveraged in order to better support the organizational objectives
recognized. Therefore, to increase their sales and capture the market share in the industry,
Luckyland company come up with the Herbal & Sugar Free Biscuit Product Idea to leverage
their profits and market share by utilizing their market opportunities and their strength to
eliminating their weakness and threats.

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 PROJECT MANAGEMENT THEORY AND PRACTICE

2.1.3. Porters Five Force Analysis

Figure 7- Porters Five Force Analysis

Above mentioned Figure No.07 illustrates the five forces of manufacturing Company. The
Porter's Five Forces analysis is a power full tool and it is a simple also. It helps to analyze
Luckyland Products manufacturing Company with competition level in the industry and also it
can be used to understand the business situation. This tool is beneficial, because it helps
company recognize both the strength of current competitive position.

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 PROJECT MANAGEMENT THEORY AND PRACTICE

2.1.4. Problem Need Opportunity Analysis and Importance of this Project

Below mentioned table clearly illustrates the Luckyland Company’s Need Opportunity
Analysis and Importance of This New Biscuit Project.

Table 3- Impotency of the Project for Company Strategy

2.1.5. Business Option and Its Impact on Project Feasibility

Below mentioned table clearly illustrates the feasibility analysis, I took assumption that cost
and selling price won’t change for upcoming four years.

Table 4- Business Option with their New Product

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 PROJECT MANAGEMENT THEORY AND PRACTICE

2.1.6. Financial Feasibility through Net Present Value (NPV) Analysis & Discounted Payback Period

Table 5- Net Present Value (NPV) Analysis

Table 6- Discounted Payback Period

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 PROJECT MANAGEMENT THEORY AND PRACTICE

As per the Net Present Value calculation (NPV) in financial year 2020 company can earn
present value as Rs. 25,434,600.00 and also according to the discounted payback period
calculation company can recover their investment in 3.63 years. Therefore, according to
analysis this project is financially feasible to Luckyland Company.

Luckyland allocated their Initial cost for innovation and product development, proceeding with
business to business (B2B) segment and business to customers (B2C) segment, both are more
financial profitability since Luckyland company has their own market and product
development strategy.

Table 7- Feasibility Summary

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3. Project Scope Management

3.1. Project Charter
3.1.1. Business Case
Luckyland Biscuit company’s top level management decided to achieve a competitive
advantage in the biscuit industry, so they conduct a serious market analysis as result; people
are more concern on their health and diet due to educational development. People are looking
for the best quality, healthy and hygienic and tasty food items. Even they are willing to acquire
price premium products. Based on the results company is planned to go for Differentiation
Business Strategy considering the Market Segments. In year 2017 there will be New Biscuits
introduced to market which is Herbal & Sugar Free Biscuits. The technology is going to be
used for these products are very outstanding. Therefore, this kind of innovation can leverage
the Luckyland’s market share and profit. They can achieve competitive advantage in changing
business environment.

3.1.2. Technology Behind the New Biscuit Product

Below mentioned figure illustrates some of the modern Technology and Machineries which
are going to be used in this new project.

Figure 8- Technology Behind the New Biscuit Product

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 PROJECT MANAGEMENT THEORY AND PRACTICE

3.1.3. Project Description

According to this is a new herbal biscuit product development, it gives a good opportunity to
Luckyland Biscuit Company do a team work where they can show their personal ideas, their
perspectives, creativities and etc. This is a wonderful opportunity to employ the knowledge and
talent of the expert professional in Luckyland family. Therefore, Luckyland project team can
bring together all the necessary details and resources to generate a management plan. This
Herbal & Sugar Free Biscuit product will benefit the customers to reach their fitness goals by
providing them with Best Quality, Healthy, Tasty and Hygienic Biscuits. This Kind of Biscuits
is generally imported to Sri Lanka from foreign Companies such as; Britannia, Nestle, etc.

Figure 9- Project Management Process

By conducting serious market analysis Luckyland Biscuit Company believe that it can help
people stay physically fit, improve their health. It was especially planned, designed and
targeted for both male and female who give and high preference for health and fitness, and also
it is targeted for senior citizens. By analyzing market survey results and customer feedback
there were no specific Herbal & Sugar Free Biscuits in biscuit industry, but their business
forecast in future there will be many eatable biscuit products. Therefore, Luckyland company
decided that this is the right time to enter into the business market with this new idea which
can give great opening for them.

Figure 10- Major Project Constraints in this New Biscuit Project

According to the above-mentioned project constraint chart, in this Luckyland project Quality
and scope are considered as Critical Factor, Time is considered as Medium Factor and Cost is
considered as Minor Factor.

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3.1.4. Project Information

Below mentioned table clearly illustrates some of the Project Information.

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Table 8- Project Information

3.1.5. High Level Project Milestone Schedule.

Below mentioned Table clearly illustrates project Milestones

Table 9- Project Milestone Schedule

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 PROJECT MANAGEMENT THEORY AND PRACTICE

3.1.6. Project Team Formation and Assigning Authority & Responsibility

Below mentioned table clearly illustrates the project team members and their responsibilities.

Table 10- Project Team Members and Their Responsibilities

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 PROJECT MANAGEMENT THEORY AND PRACTICE

3.2. Work Breakdown Structure (WBS)

3.2.1. Work Breakdown in A List Format for Wide-Ranging Understanding

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 PROJECT MANAGEMENT THEORY AND PRACTICE

Table 11- Work Breakdown in a List Format

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 PROJECT MANAGEMENT THEORY AND PRACTICE

3.2.2. Cascading Distribution of Activities Under Each Milestone.

Below mentioned figure clearly illustrating the cascading distribution of activities is shown
under each milestone.

Figure 11- Cascading Distribution of Activities Under Each Milestone.

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 PROJECT MANAGEMENT THEORY AND PRACTICE

4.0. Project Time and Resource Management

4.1. Resource Breakdown Structure (RBS)

Luckyland company’s Resource Breakdown Structure (RBS) clearly illustrates the distribution
of project resources. Meanwhile in this herbal biscuit project, the required plant, equipment
and machineries are satisfactorily available, division of work stipulated among the project team
members for the project to successfully accomplish the project without any interruption due to
resource unavailability. Raw materials are procured from local suppliers.

The project team comprises of ten members including project Manager.

Figure 12- Project Team Members

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 PROJECT MANAGEMENT THEORY AND PRACTICE

4.2. Resource Management Plan

Table 12- Resource Management Plan

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 PROJECT MANAGEMENT THEORY AND PRACTICE

4.3. RACI Matrix

Below mentioned Matrix (RACI Matrix) clearly illustrates the Resource Breakdown Structure
(RBS) of this biscuit project. According to below mentioned matrix involvements with the
tasks are varied from Responsible (R), Accountable (A), Consult (C) and Informed (I).

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 PROJECT MANAGEMENT THEORY AND PRACTICE

Figure 13- Project RACI Matrix

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 PROJECT MANAGEMENT THEORY AND PRACTICE

4.4. Project Time Schedule

Luckyland company’s Project Network Diagram is attached as Attachment No.01 which
illustrates every project activity’s Duration, Early Start (EST), Late Start (LST), Slack, Late
finish (LFT) and Early Finish (EFT). Generally, in the Network Diagram, the path where all
the task has slack time of zero (0) is called critical path. That means all the tasks in that path
should be finished within the given timeframe without any delays.

Figure 14-. Sample Project Network Diagram

According to the Project Calendar, Monday to Saturday are considered as working days and
Sunday is considered as non-working days for Luckyland Company and also working time
period for employees is 8 hours. Holidays are considered in the project schedule are; Christmas
& New year Holidays 23rd December 2016 to 2nd January 2017, Thai Pongal Holiday 14th
January 2017 and Sri Lankan Independence Day 4th February 2017 is taken in to consideration.

Note: - According to the Net Work Diagram Critical Path of This Project: - Start, 1.1, 1.2, 1.3,
2.1, 2.2, 2.3, 2.5, 2.6, 2.7, 4.1, 4.2, 4.4, 4.7, 4.8, 5.1, 5.2, 5.3, 6.1, 6.2, 6.3, 6.5, 7.1, 7.2, 8.1,
8.2, 8.4, 8.5, 8.6, 8.8, 8.9, Finish.

Table 13- Project Time Schedule

Note: - Project Gantt Chart is Attached as Attachment No.03.

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 PROJECT MANAGEMENT THEORY AND PRACTICE

4.5. Cost budget, Cost Distribution Plan and Estimation Techniques

According to this new Herbal & Sugar Free Biscuit Project, Luckyland Biscuit Company used
Micro/ Bottom Up Estimation Technique because it provides fairly accurate estimate which
takes into account the project design and a “roll-up” of WBS elements. If done properly by the
Luckyland Project Team, a bottom-up estimate can yield accurate cost and time estimates.

Company include the Buffer Amount As 25% as contingency/back of plan for risks such as;

• Allocation for Time Related Risks for this Project: - 5.45%

• Allocation for Scope Related Risks for this Project: - 7.35%
• Allocation for Quality Related Risks for this Project: - 8.45%
• Allocation for Cost Related Risks for this Project: - 3.75%

Therefore, Totally Considered Buffer Amount for Risks is 25% which allocated for this by
top level management of the Lucky Company. These percentage are derived from serious
analysis and past similar kind of projects executed by the company.

Below mentioned table is clearly illustrating the micro level estimation through WBS Elements
of this New Biscuit Project.

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Table 14- Project Time Schedule

Note: - Project budget and cost distribution plan is prepared by use of Early Start (EST) for
Accurate Cost Planning is Attached as Attachment No.02

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5.0. Project Quality Management Plan

In the food manufacturing industry Quality Management is considered as one of the significant
factors for organization. Nowadays, Food quality management has become highly important in
the biscuit manufacturing business because of various food incidents in the past years such as;
low hygienic food products, more food-borne diseases and higher-risk products and low
consumer awareness. Because of customer demands, the end connections of the supply chain
(as an example retailers) they require guarantees of an appropriate quality production of food
items. Therefore, an appropriate food quality management should be performed in the firm.

The importance of this project is to give the best quality, healthy, tasty and hygienic biscuit
product (Herbal & Sugar Free Biscuit). Since it is a new biscuit product for Luckyland
company and the consumers. One of the critical constraint of this project is the quality of the
biscuit product. Below mentioned table clearly illustrates the Luckyland company’s Quality
Management Objectives

Table 15- Luckyland Company’s Quality Management Objectives

Keeping a good quality management in the Luckyland Biscuit Company is a challenge which
relates to the need to generate greater consumer loyalty to their company products and services,
greater suitability of the biscuit product to the Sri Lankan customer’s requirements and greater
anxiety about the social impact of the Luckyland Biscuit Company.

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5.1. Planning Quality

The Project Quality Management Plan is created during the Planning stage of any project, its
intended audience are such as; project manager, project sponsor, members of project team and
any senior leaders whose backing is required to perform the plan (Hill, 2009). In the Lukyland
company, while they are planning quality they recognize quality expectations and standards
for consumers, their project, organizational regulations, federal rules & regulations, critical
success factors, and metrics for which to measure success, and outline acceptance criteria for
project deliverables and product performance.

Some major quality plan points are illustrated for this Luckyland Company’s new Herbal &
Sugar free biscuit project is illustrated below;

• Machineries & Equipment’s performance and essential material quality should be

maintained properly.
• New Herbal & Sugar free biscuit appearance should not be similar as normal Luckyland
Biscuit Product, and to make sure there will be clear Luckyland’s indentation mark on
the packet.
• Make sure herbal ingredients are in good warm temperature, good atmospheric
conditions maintain a good quality of those herbal ingredients throughout the process
while it use.
• Fresh raw herbal ingredients should last up to 2 weeks in good conditions at store and
make sure there are no any shortages of materials in biscuit products and those quantity
ratios must be fulfilled.
• Make sure selected material able to withstand bonding, conduct Food Texture Testing
for Biscuit manufacturing such as; Moisture of Biscuit Test, Hardness of Biscuit Test
and Material Component Test.
• Reduce the percentage of raw material wastage at the biscuit production stage, and be
cautious on quality of raw materials and component mixing ratio, if one batch
completed it cannot be rectified otherwise it will go for disposal.
• End product of the biscuit should be carefully checked on some criteria such as; biscuit
quality, biscuit weight, outer packing, etc.
• Maintain the QA records and QC Records, if any problems occurred it will be much
helpful identify the issue.

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5.2. Quality Assurance (QA)

Some major quality assurance points are illustrated for this Luckyland Company’s new Herbal
& Sugar free biscuit project is illustrated below;

• Herbal ingredients and other raw materials quality should be high standard. Luckyland
company make sure that raw materials from quality supplier and must maintain good
relationship with material suppliers.
• Enhancing the efficiency of machineries & equipment, monitoring the mixing ratio and
quality material components by using expertise knowledge.
• Luckyland company should do initial trials then they can improve the quality of the
Biscuit’s components.
• All raw materials of biscuit products should be consistent.
• Make sure selected material able to withstand bonding, conduct Food Texture Testing
for Biscuit manufacturing such as; Moisture of Biscuit Test, Hardness of Biscuit Test
and Material Component Test.
• Creating standard operating procedures for biscuit manufacturing.

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5.3. Quality Control (QC)

Quality Control is considered as a business process, and members of the project team should
maintain a better-quality controlling process in the organization and it should be considered as
an essential factor, otherwise projects will become ineffectiveness. During the Quality Control
Phase, business organizations identify those monitoring and controlling activities which shall
be directed to control quality throughout the project’s life. Generally, organizations determine
the quality standards comply with the defined standards.

Some major quality control points are illustrated for this Luckyland Company’s new Herbal &
Sugar free biscuit project is illustrated below;

• Initial Herbal ingredients and other raw materials must test properly and be compared
with the standards.
• Conduct sample biscuit trials on consumers and conduct survey & get feedback from
them and also get feedback laboratory.
• Conducting Initial quality test and the consistency test according to ISO 9000 standards
in finished Herbal & Sugar free biscuit Products.
• Technical function should check by conducting relevant tests
• During the biscuit production, there are seven quality points should be checked properly
by the Quality Management Team.
• Machineries & equipment’s condition such as; pressure, temperature pressure, running
conditions and process time must be checked every three hours and make documented.

Table 16- Quality Roles, Tools and Problem-Reporting Procedures

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6.0. Risk Management Plan

Figure 15- Fundamental Steps of Risk Management (Mitre, 2014).

The risk management plan comprises an analysis of possible risks with both low and high
impact, along with mitigation strategies to aid the project avoid being disrupted when problems
would arise and these plans must be every so often reviewed by the members of the project
team (Watt, 2014).

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Generally, there are four potential strategies with many variations that projects may choose to
do, below mentioned table clearly illustrates the four potential strategies.

Table 17- Four Potential Strategies of Rick Management

Luckyland Biscuit Company’s new herbal & sugar free biscuit project’s risk management plan
contains risk identification, risk analysis in qualitative and quantitative ways to line up risks
and generating a most effective risk response plan to mitigate the identified risks with the
project team.

6.1. Risk Identification

Identification of the risk is considered as an essential activity and prepared as the first step of
the project planning. The risks are generating through unforeseen events, poor project
performance & process and external parties (Piscopo, 2015). A most well-organized process
involves identification of the risk is using checklists of possible risks and assessing the
probability of those uncertain events would occur on the project (Watt, 2014).

Luckyland Biscuit Company developed a risk checklist according to their experience from
previously executed similar type of biscuit projects. These checklists can be very supportive to
the project team members and project manager for in identifying specific risks on the checklist
and intensifying the thinking ability of the project team. Luckyland Biscuit Company
designated the project team with the similar past experience or project experience within the
company, and experts in the industry. Luckyland Biscuit Company consider them as valuable
resources for identifying potential risk on a new herbal & sugar free biscuit products project.

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6.2. Risk Register

Below mentioned tables illustrating some of the identified risks which may can occur during
new herbal & sugar free biscuit project.

Table 18- Risk Register

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6.3. Risk Analysis

6.3.1. Risk Impact Scale

Table 19- Risk Impact Scale

6.3.2. Risk Assessment

Table 20- Risk Assessment

6.3.2. Risk Severity

Table 21- Risk Severity Matrix

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6.4. Risk Monitoring & Controlling

In the risk management part, risk monitoring and control process are take part in certain areas
such as; identifying new risks, monitoring identified risks (both existing and new risks), make
sure the appropriate execution of planned risk retorts, assess the complete effectiveness of the
risk management plan in minimizing project risk (Balakian, 2010). During the project
execution if any risk event occurs, there is a probability it was recognized sometime prior, it
was evaluated and most suitable response action was planned to pact with those issues for an
example sometimes it may have captured in the Risk Register (Piscopo, 2015). For the most
portion, risk monitoring and control is the vital process of pushing into necessary action all of
the risk planning completed prior in the life-cycle of the project (Mitre, 2014). It is necessary
to understand that risk monitoring is projected to be a daily, on-going process across the entire
lifecycle of project.

Luckyland Biscuit Company’s Risk management plan include the risk monitoring and
controlling where the project manager and two technical entrepreneurs will provide with an
appropriate information and the responsibilities to the project team, and the members project
team will keenly monitor all the necessary activities of this project.

6.5. Risk Mitigation

Table 22- Four Potential Strategies of Rick Mitigation

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Below mentioned tables illustrating risk mitigation or risk response plan for some of the
identified risks which may can occur during new herbal & sugar free biscuit project.

Table 23- Luckyland Company's Risk Response Plan

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7.0. Project Communication Plan

Communication, is considered as an essential factor determining the fruitful accomplishment

of many projects. Many projects end up with failure due to improper communication
management with project related various disciplined stakeholders. Generally, In projects
communication technique, types of channel and process are vary from one project to another.
Therefore, Luckyland Company’s New Biscuit Project (Herbal & Sugar Free Biscuit) cannot
use the previous project’s communication plan, so Luckyland Company need to create the own
effective project communication plan which reduce complications of the project.

Figure 16- Project Communication Management Plan

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7.1. Communications Matrix

Below mentioned table clearly illustrates the communications requirements for this Luckyland
Company’s project.

Table 24- Communications Matrix

7.2. Reporting Communication

Luckyland Company’s Project manager planned the project reporting structure and minimize
the ample of problems in management reporting part, which is the most significant in the
project management process, currently the Luckyland Biscuit Company’s provides the goods,
service based on the effective communication management system which is very helpful to
stakeholders of the project.

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Table 25- Reporting Communication

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Conclusion
Project management is considered as the application of knowledge, tools, skills, and techniques
to project activities to satisfy the project related requirements. Based on this report, Luckyland
Biscuit Company’s corporate strategy is Market and Product Development through its process
and product innovation. Re-engineering, re-thinking resource utility, exploiting processes and
the relentless pursuit of excellence is the Luckyland Biscuit Company’s lifestyle. There are
many biscuits available in the market, but there only few Herbal & Sugar Free Biscuits
available but others don’t have the proper processing technology. So, Luckyland decided to
use this opportunity as an advantage.

Luckyland company gives higher importance of project to corporate strategy of the company
with project feasibility analysis comprises with PESTEL Analysis, SWOT Analysis, Porter’s
Five Force Analysis, Problem Need Opportunity Analysis and Importance of this Project,
Business Option and Its Impact on Project Feasibility, Financial Feasibility through Net Present
Value (NPV) Analysis and Discounted Payback Period (DPP) Analysis. Based on these
analysis results and top management decisions reflected that this kind of innovation can
leverage the Luckyland’s market share and profit. They can achieve competitive advantage in
changing business environment.

Luckyland Company’s Project Resource Breakdown Structure (RBS) primary goal is to have
all necessary resources on a project, not only human resources, connected to specific activities
in the work breakdown structure with the intention of plan, monitor, and control the project
work. According to this project Luckyland Biscuit Company used Micro/ Bottom Up
Estimation Technique because it provides fairly accurate estimate which takes into account the
project design and a “roll-up” of WBS elements. If done properly, a bottom-up estimate can
yield accurate cost and time estimates. Company include the Buffer Amount As 25% as
contingency/back of plan to mitigate the risk if anything occurs.

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Company should use Waterfall methodology because project scope and objectives are clear,
project activities are sequentially planned as one finish another one starts. This Waterfall model
most commonly used in Biscuit Manufacturing Companies. It is most effective methodology
and appropriate for this project. This new herbal biscuit project should be proficiently managed
to deliver on planned time, on estimated budget with expected quality to satisfy the Sri Lankan
Customers.

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References

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Appendixes

Attachment 1: - Network Diagram

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0 0 0 0 2 2 2 1 3 3 1 4

Start 1.1 1.2 1.3

0 0 0 0 0 2 2 0 3 3 0 4
39 1 40 40 0 40

8.9 Finish

8 1 9 7 1 8 6 1 7 4 2 6 39 0 40 40 0 40

2.4 2.3 2.2 2.1

9 1 10 7 0 8 6 0 7 4 0 6
38 1 39

8.8

8 2 10 38 0 39

2.5

8 0 10
36 2 38

8.6

10 2 12 36 0 38

2.6

10 0 12
36 1 37 33 3 36

8.7 8.5

37 1 38 33 0 36
12 1 13 13 1 14 14 1 15

2.7 3.1 3.2

32 1 33
12 0 13 14 2 15 15 1 16
8.4

32 0 33
13 1 14 14 1 15 15 1 16

4.1 4.2 4.3

29 3 32 30 2 32
13 0 14 14 0 15 16 1 17
7.3 8.2

37 8 40 30 0 32
15 2 17 16 1 17

4.4 4.5
26 2 28 28 1 29 29 1 30 30 1 31
15 0 17 17 1 18
6.6 7.2 8.1 8.3

38 12 40 28 0 29 29 0 30 32 2 33
17 1 18 17 1 18

4.7 4.6
25 1 26 26 2 28
17 0 18 18 1 19
6.5 7.1

25 0 26 26 0 28

18 1 19

24 1 25 25 1 26
4.8

6.3 6.4
18 0 19

24 0 25 39 13 40

19 1 20
23 1 24
5.1
6.2
19 0 20
23 0 24

20 1 21 21 1 22 22 1 23

5.2 5.3 6.1

20 0 21 21 0 22 22 0 23
 PROJECT MANAGEMENT THEORY AND PRACTICE

Attachment 2: - EST - Cost Breakdown

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Attachment 3: - Project Gannt Chart

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