Project Management Principles: Australian Tree Corp

This report focuses on the development of a feasibility report and project plan for the chosen project that includes some of the major requirements and attributes of a project plan.

Running Head: PROJECT MANAGEMENT PRINCIPLES
Project Management Principles: Australian Tree Corp
Name of the Student
Name of the University

1PROJECT MANAGEMENT PRINCIPLES
Table of Contents
1. Project Background.....................................................................................................................2
1.1 Project Background...............................................................................................................2
1.2 Project Goal...........................................................................................................................3
1.3 Project Objective...................................................................................................................3
1.4 Project Deliverable................................................................................................................4
1.5 Strategic Alignment of Project..............................................................................................4
2. Project Schedule..........................................................................................................................5
2.1 Milestones..............................................................................................................................5
2.2 Project Requirements.............................................................................................................5
2.3 Limits and Exclusions............................................................................................................5
2.4 Work Breakdown Schedule...................................................................................................6
3. Risk Management........................................................................................................................8
4. Project Budget...........................................................................................................................10
5. Communication Management Plan............................................................................................13
5.1 Communications Strategy....................................................................................................13
5.1.1 Internal Information Management................................................................................13
5.1.2 Internal Stakeholders....................................................................................................13
5.1.3 External Stakeholders...................................................................................................13
5.2 Communication Plan...........................................................................................................13
5.2.1 Internal Information Management Plan........................................................................13
5.2.2 External Communications Plan....................................................................................14
6. Recommendations..............................................................................................................15
Bibliography..................................................................................................................................16

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1. Project Background
1.1 Project Background
Australian Tress Corp (ATC) is a privately owned company that grows and sells trees to
various customers. The tree estates were managed by the government few years back but then the
properties were leased to the new private company i.e. ATC. The company has been significantly
profitable since the start but there have been some problems (old and recent) that are
continuously affecting the business. Furthermore, these problems are hindering the growth of the
company in the market and thus ATC needs to deploy certain project initiatives to solve these
issues and make the company grow and become more profitable. There are some unavoidable
problems like natural calamities that cannot be completely removed but actions can be taken to
reduce their harmful impacts on the trees. Based on the needs of the project and the company,
several people have suggested different projects that will provide different types of benefits for
the company. However, at the moment, the company cannot afford all the projects at once.
Hence, the business strategy manager has requested for the feasibility testing of a project that
will provide the maximum benefits for the company. Accordingly, the company will approve or
reject the selected project.
This report focuses on the development of a feasibility report and project plan for the
chosen project that includes some of the major requirements and attributes of a project plan.
Accordingly, the chosen project for the company is the manufacturing of new products with the
wood of the trees like structural timber, chipped wood and fuel for boilers. The feasibility of this
project is discussed later in the report.

3PROJECT MANAGEMENT PRINCIPLES
1.2 Project Goal
The ultimate goal of the project is to provide an opportunity for the company to grow and
increase the profitability of the business. Another goal of the project is to solve one of the
highlighted issues that are hindering the growth of the company. Based on these goals, it is
proposed to implement the new business and new vertical supply chain strategy in which the
company will also manufacture various wood products that will be sold directly to the customers.
The goals of the project are further elaborated using the SMART format as follows.
Specific Measurable Attainable Relevant Time-Based
New wood product
manufacturing
business
Production of
sufficient amount
of wood products
as per supply
demands
Significant
customer base for
the manufactured
products
Market share in
the vertical supply
chain business
Set up the business
within a time
period of 6 months
1.3 Project Objective
The objectives of the project are as follows.
 To set up a timberworks factory for the company
 To recruit labour for processing of timber and crafting of various products
 To develop equipment sourcing and purchasing plan for the manufacture of the
products

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1.4 Project Deliverable
The main deliverable of the project is a new additional business setup for ATC that will
allow them gain a new market, which in turn will allow them to grow and become much more
profitable. Furthermore, it will also allow the company to operate over a new vertical supply
chain.
1.5 Strategic Alignment of Project
There are several strategic directions that the company can pursue in order to enhance the
profitability of their business as well as overcome several issues that are hindering the business
for quite some time. In addition, the company has been stagnant in the same position in the
market for some time and hence, growth is required to gain more access in the market. The
different strategic directions have different types of impact on the company and will also have
varied amounts of benefits. Hence, it is required to select a specific strategic direction that will
straightaway allow the company to grow.
Of the several options suggested for the company, the option selected is the new product
manufacturing and supply business. This will open the opportunity for the company to gain
access to a new market as well as access to a vertical supply chain business. With the new
business, the company will be able to gain new customers that will allow the company to grow
from the current position and increase profitability. Thus, this project is completely aligned with
the business strategy of the company.

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2. Project Schedule
2.1 Milestones
The milestones of the project are as follows.
 M1: Receive Feedback and Approval to Proceed
 M2: Go Ahead with the Project
 M3: Space Available for Workshop Setup
 M4: Present Report
 M5: Workshop Ready
 M6: Operational Plan Complete
 M7: Marketing Complete
 M8: Official Closing
2.2 Project Requirements
The requirement of this project is to set up a new workshop for the proposed
manufacturing business for ATC.
2.3 Limits and Exclusions
The project will be setting up of a new start up business and hence, there will be
limitations. The first limitation will be investment – the company cannot make huge investment
right at the start. Once the business is rolled out, investments will be made gradually based on
the success and growth of the company. The second limitation is that there are not sufficiently
skilled timber craftsmen currently available.

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On the other hand, from this project, the revenue generation plan and investment plan are
excluded as these factors will be considered after the project is rolled out.
2.4 Work Breakdown Schedule
The work breakdown schedule for the project is shown below.
WBS Task Name Duration Start Finish Predecessors
0 New Business Venture for ATC 205 days Fri 5/31/19 Thu 3/12/20
1 Primary Survey and Discussion 34 days Fri 5/31/19 Wed 7/17/19
1.1 Undertake a Board Meeting 2 days Fri 5/31/19 Mon 6/3/19
1.2 Discuss the Current Issues Faced by the
Company 1 day Tue 6/4/19 Tue 6/4/19 2
1.3 Form a Survey Team 2 days Wed 6/5/19 Thu 6/6/19 3
1.4 Undertake a Detailed Survey of the Current
Business State of Affairs 5 days Fri 6/7/19 Thu 6/13/19 4
1.5 Identify the Issues of the Business 5 days Fri 6/14/19 Thu 6/20/19 5
1.6 Suggestion for the New Proposed Business 3 days Fri 6/21/19 Tue 6/25/19 6
1.7 Analyse Feasibility of the Proposed Project 4 days Wed 6/26/19 Mon 7/1/19 7
1.8 Identify the Requirements of the Project 2 days Tue 7/2/19 Wed 7/3/19 8
1.9 Study Various Factors Related to the Project 3 days Thu 7/4/19 Mon 7/8/19 9
1.10 Develop Initial Project Proposal 5 days Tue 7/9/19 Mon 7/15/19 10
1.11 Submit Proposal for Review 2 days Tue 7/16/19 Wed 7/17/19 11
1.12 M1: Receive Feedback and Approval to
Proceed 0 days Wed 7/17/19 Wed 7/17/19 12
2 Preparations for the Project 22 days Thu 7/18/19 Fri 8/16/19
2.1 Form Project Management Team 3 days Thu 7/18/19 Mon 7/22/19 13
2.2 Allocate Management Duties to the Team
Members 2 days Tue 7/23/19 Wed 7/24/19 15
2.3 Identify the Primary and Secondary Scope of
the Project 2 days Thu 7/25/19 Fri 7/26/19 16
2.4 Develop Schedule suitable for Project
Execution 2 days Mon 7/29/19 Tue 7/30/19 17

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2.5 Analyse and Finalise the Budget of the
Project 2 days Wed 7/31/19 Thu 8/1/19 18
2.6 Assess Risks Associated with the Project 4 days Fri 8/2/19 Wed 8/7/19 19
2.7 Develop Mitigation Plan for the Risks 2 days Thu 8/8/19 Fri 8/9/19 20
2.8 Develop Quality Management Plan 2 days Mon 8/12/19 Tue 8/13/19 21
2.9 Hire Contractor and Worker Groups 3 days Wed 8/14/19 Fri 8/16/19 22
2.10 M2: Go Ahead with the Project 0 days Fri 8/16/19 Fri 8/16/19 23
3 Rent Space for Workshop 15 days Mon 8/19/19 Fri 9/6/19
3.1 Search for Vacant Properties for Workshop
Setup 5 days Mon 8/19/19 Fri 8/23/19 24
3.2 Selection and Renting of a the Workshop
Space 10 days Mon 8/26/19 Fri 9/6/19 26
3.3 M3: Space Available for Workshop Setup 0 days Fri 9/6/19 Fri 9/6/19 27
4 Product Manufacturing Plan 22 days Mon 9/9/19 Tue 10/8/19
4.1 Decide on the List of Products to be
Manufactured 2 days Mon 9/9/19 Tue 9/10/19 28
4.2 Purchase Sample Materials 5 days Wed 9/11/19 Tue 9/17/19 30
4.3 Manufacturing Proposed Products with
Sample Materials 10 days Wed 9/18/19 Tue 10/1/19 31
4.4 Assess the Viability and Quality of the
Products Manufactured 5 days Wed 10/2/19 Tue 10/8/19 32
4.5 M4: Present Report 0 days Tue 10/8/19 Tue 10/8/19 33
5 Setup the Workshop 45 days Wed 10/9/19 Tue 12/10/19
5.1 Design and Develop the Property 15 days Wed 10/9/19 Tue 10/29/19 34
5.2 Installation of Various Equipments 15 days Wed 10/30/19 Tue 11/19/19 36
5.3 Installation of Safety Equipments 15 days Wed 11/20/19 Tue 12/10/19 37
5.4 M5: Workshop Ready 0 days Tue 12/10/19 Tue 12/10/19 38
6 Development of Operational Plan 19 days Wed 12/11/19 Mon 1/6/20
6.1 Develop Staff and Worker Plan 2 days Wed 12/11/19 Thu 12/12/19 39
6.2 Hire Workshop Management Staff 10 days Fri 12/13/19 Thu 12/26/19 41
6.3 Develop Work Plan for the Manufacturing 5 days Fri 12/27/19 Thu 1/2/20 42
6.4 Set Production Targets 2 days Fri 1/3/20 Mon 1/6/20 43

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6.5 M6: Operational Plan Complete 0 days Mon 1/6/20 Mon 1/6/20 44
7 Marketing 35 days Tue 1/7/20 Mon 2/24/20
7.1 Advertise the Opening of the New Business 5 days Tue 1/7/20 Mon 1/13/20 45
7.2 Promote the Business Among Potential High
Value Customers 15 days Tue 1/14/20 Mon 2/3/20 47
7.3 Promote Business through Digital Media 15 days Tue 2/4/20 Mon 2/24/20 48
7.4 M7: Marketing Complete 0 days Mon 2/24/20 Mon 2/24/20 49
8 Project Completion 13 days Tue 2/25/20 Thu 3/12/20
8.1 Review Overall Project 5 days Tue 2/25/20 Mon 3/2/20 50
8.2 Prepare Documentation 6 days Tue 3/3/20 Tue 3/10/20 52
8.3 Appraisal and Sign Off 2 days Wed 3/11/20 Thu 3/12/20 53
8.4 M8: Official Closing 0 days Thu 3/12/20 Thu 3/12/20 54
3. Risk Management
Some of the risks associated with the project and the management plans are shown in the
following matrix.
Risk Chance of Encounter Impact on Project Management Plan
Budget overshoot High High Control spending and
expend as per the
developed budget
breakdown
Scope creep High High Control scope and
introduce change
management during
project
Lack of craftsman skills
for production
Medium High Recruit skilled labour
through detailed

9PROJECT MANAGEMENT PRINCIPLES
recruitment process
Figure 1: Gantt Chart of the Project
(Source: Created by Author in ProjectLibre)

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4. Project Budget
The budget breakdown for the project is based on the following resource rate chart.
Resource Name Type Max. Units Std. Rate
Project Manager Work 100% $200.00/hr
Operations Manager Work 100% $185.00/hr
Production Manager Work 100% $165.00/hr
Project Planner Work 100% $125.00/hr
Marketing Manager Work 100% $150.00/hr
Workshop Costs Material $150,000.00
Material Costs Material $25,000.00
Marketing Costs Material $10,000.00
Additional Costs Material $15,000.00
These resources are assigned to the work breakdown structure and the budget breakdown
is developed accordingly as follows.
Task Name Duration Resource Names Cost
New Business Venture for ATC 205 days $489,960.00
Primary Survey and Discussion 34 days $50,200.00
Undertake a Board Meeting 2 days Project Manager $3,200.00
Discuss the Current Issues Faced by the
Company 1 day Project Manager $1,600.00
Form a Survey Team 2 days Project Manager $3,200.00
Undertake a Detailed Survey of the Current
Business State of Affairs 5 days Project Manager $8,000.00
Identify the Issues of the Business 5 days Project Manager $8,000.00
Suggestion for the New Proposed Business 3 days Project Manager $4,800.00
Analyse Feasibility of the Proposed Project 4 days Project Manager $6,400.00
Identify the Requirements of the Project 2 days Project Manager $3,200.00
Study Various Factors Related to the Project 3 days Project Manager $4,800.00

11PROJECT MANAGEMENT PRINCIPLES
Develop Initial Project Proposal 5 days Project Planner $5,000.00
Submit Proposal for Review 2 days Project Planner $2,000.00
M1: Receive Feedback and Approval to
Proceed 0 days $0.00
Preparations for the Project 22 days $25,600.00
Form Project Management Team 3 days Project Manager $4,800.00
Allocate Management Duties to the Team
Members 2 days Project Planner $2,000.00
Identify the Primary and Secondary Scope of
the Project 2 days Project Planner $2,000.00
Develop Schedule suitable for Project
Execution 2 days Project Planner $2,000.00
Analyse and Finalise the Budget of the Project 2 days Project Planner $2,000.00
Assess Risks Associated with the Project 4 days Project Planner $4,000.00
Develop Mitigation Plan for the Risks 2 days Project Planner $2,000.00
Develop Quality Management Plan 2 days Project Planner $2,000.00
Hire Contractor and Worker Groups 3 days Project Manager $4,800.00
M2: Go Ahead with the Project 0 days $0.00
Rent Space for Workshop 15 days $172,200.00
Search for Vacant Properties for Workshop
Setup 5 days Operations Manager $7,400.00
Selection and Renting of a the Workshop
Space 10 days Operations Manager,
Workshop Costs[1] $164,800.00
M3: Space Available for Workshop Setup 0 days $0.00
Product Manufacturing Plan 22 days $69,040.00
Decide on the List of Products to be
Manufactured 2 days Production Manager $2,640.00
Purchase Sample Materials 5 days
Production Manager,
Additional Costs[1],
Material Costs[1]
$46,600.00
Manufacturing Proposed Produts with Sample
Materials 10 days Production Manager $13,200.00

12PROJECT MANAGEMENT PRINCIPLES
Assess the Viability and Quality of the
Products Manufactured 5 days Production Manager $6,600.00
M4: Present Report 0 days $0.00
Setup the Workshop 45 days $72,000.00
Desgin and Develop the Property 15 days Project Manager $24,000.00
Installation of Various Equipments 15 days Project Manager $24,000.00
Installation of Safety Equipments 15 days Project Manager $24,000.00
M5: Workshop Ready 0 days $0.00
Development of Operational Plan 19 days $28,120.00
Develop Staff and Worker Plan 2 days Operations Manager $2,960.00
Hire Workshop Management Staff 10 days Operations Manager $14,800.00
Develop Work Plan for the Manufacturing 5 days Operations Manager $7,400.00
Set Production Targets 2 days Operations Manager $2,960.00
M6: Operational Plan Complete 0 days $0.00
Marketing 35 days $52,000.00
Advertise the Opening of the New Business 5 days Marketing Costs[1],
Marketing Manager $16,000.00
Promote the Business Among Potential High
Value Customers 15 days Marketing Manager $18,000.00
Promote Business through Digital Media 15 days Marketing Manager $18,000.00
M7: Marketing Complete 0 days $0.00
Project Completion 13 days $20,800.00
Review Overall Project 5 days Project Manager $8,000.00
Prepare Documentation 6 days Project Manager $9,600.00
Appraisal and Sign Off 2 days Project Manager $3,200.00
M8: Official Closing 0 days $0.00

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5. Communication Management Plan
5.1 Communications Strategy
5.1.1 Internal Information Management
For internal information management and communication, the most convenient mode of
communication is face to face communication that can be done between two individuals or in a
team meeting. If this is not possible, communication can be done via telephone calls or written
emails.
5.1.2 Internal Stakeholders
For this project, the internal stakeholders are the project manager, production manager,
operations manager and the marketing manager.
5.1.3 External Stakeholders
For the project, the external stakeholders are timber product wholesalers and other
customers who will purchase the products from the company.
The recommended communication mode with the external stakeholders include written
emails, brochures and paper documents.
5.2 Communication Plan
5.2.1 Internal Information Management Plan
Medium Activity Responsibilit Frequency Comment

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y
Email Forwarding
information
through mail
PM As per project
requirements
Emails work as official
information carriers and
very effective
communication modes
Face to Face Communicatio
n during
meeting
Any
stakeholder
As the project
demands
Exchange of ideas over a
wide pool is possible in
the meetings
Email
Provided that all stakeholders have access to personal email addresses, emails can be
used as very effective modes of information sharing. Emails are secure, fast and effective for
official communications and are widely used in various business and other organisations.
Meeting
Team meetings (face to face communication) are most effective modes of informal
communications. Any project must include frequent team meetings to ensure there is ample
exchange of ideas and information.
5.2.2 External Communications Plan
Medium Activity Responsibility Frequency Comment
Brochures Spreading
information
MM As required
by the
Brochures contain
significant amount

15PROJECT MANAGEMENT PRINCIPLES
among potential
and existing
clients
marketing
strategy
of information
regarding customer
engagement
Digital Media Marketing MM Daily Digital media is an
effective medium
for spreading
marketing
information
6. Recommendations
Based on the analysis of the proposed business plan, the following recommendations can
be suggested.
 Since this is a new business venture, the company is advised to control investment
in the project right at the start.
 In order to ensure the potential customers are engaged, proper and detailed
marketing is recommended.
 The company must assess all the risks associated with the project and take actions
appropriately.

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