Business Plan Development for a Vending Machine Project

This assignment presents a detailed business plan for a new vending machine venture. It covers various aspects of the project, including stakeholder identification, work breakdown structure, responsibility matrix, technical and communication plans, quality management, risk mitigation, and procurement processes. The plan also includes financial projections detailing cash inflows and outflows, along with a comprehensive market analysis.

Project Management

TABLE OF CONTENTS
1. Project Summary.......................................................................................................................1
2. introduction:.................................................................................................................................1
Aim and Objective.......................................................................................................................2
3. Project plan contents:...................................................................................................................2
4. Recommendations and conclusions.............................................................................................9
references.......................................................................................................................................10
Appendices....................................................................................................................................12
1. Project charter.....................................................................................................................12
2. Stakeholder register............................................................................................................12
3. Work breakdown structure.................................................................................................14
4. Responsibility matrix..........................................................................................................15
5. Schedule (Gantt chart)........................................................................................................18
6. Cashflow (budget) statement..............................................................................................18
7. Technical plan.....................................................................................................................18
8. Communication & HR plan................................................................................................20
9. Quality & Supply management plan...................................................................................21
10. Risk management plan....................................................................................................21

TABLE OF FIGURES
Figure 1: work breakdown structure..............................................................................................14
Figure 2: Gantt chart......................................................................................................................18
Figure 3Communication and HR plan...........................................................................................20
Figure 4: Quality management plan..............................................................................................21
Figure 5: Risk management plan...................................................................................................21
LIST OF TABLES
Table 1: Stakeholder register.........................................................................................................12
Table 2: Responsibility matrix.......................................................................................................15
Table 3: Cash flow statement........................................................................................................18

1. PROJECT SUMMARY
 Project name: L’umbrella
 Project purpose: To establish Umbrella vending machine in top ten busiest station in
London underground.
 Project location: London Underground
 Project time:
 Start date-10/05/2016
 End date- 10/05/2017
 Project scope: L’umbrella will cover a reel need in London, during the rainy days. It
deals with customers that will need an umbrella when they come out of the underground
station.
 Project cost: Based on research, assumption and calculation the total cost of the project
is £80,000
 Project aims and objectives:
o Provide high standard services with competitive prices to attract a larger market
and make the business successful by satisfying customers, stakeholders and
project sponsors.
o Outlining costs of human and financial resources for implementation, timescale
and workable strategy.
o Provide a services/product within the reach of every potential customer.
 Project success criteria: The project will be a success if the L’umbrella is open to the
public on the 10th May 2017 as planned and meets the standards and terms and conditions
set by the Transport of London and London Underground
 Project sponsor: 50% Personal saving and 50% Barclays bank
 Project Manager: Hristiyana Koleva
2. INTRODUCTION:
Nowadays the technologies and innovation rules the world. This is one of the main
reason and idea of creating this Project plan, thus to establish a unique service/business which is
in favor of those once who leave, work or visit cosmopolitan and very often rainy city as London
it is. The delightful and exiting city which is London, is known for its amazing landscapes and
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attraction, but the weather plays a key role in making this city so special. Outbreaks of rain are
likely to develop at any time of the day. In my opinion, a service like L’umbrella would be very
beneficial to Londoners and visitors using the underground on daily basis (Dey, Clegg and
Bennett, 2010). It is evident that people have to take their umbrella every day in case of rain.
However, this new service will allow people to have a lighter and more spacious bag, Customer
focused services, product proximity and product quality that is what L’umbrella will provide to
make people’s life easier and happier.
Aim and Objective
Aim:
The major aim of this project is to establish umbrella vending machine in top 10 busiest
underground station in London.
Objectives:
 To provide high quality service with competitive prices to attract large number of
customers.
 To satisfy the needs and requirements of customers, stakeholder and project sponsors.
 To develop appropriate plan for managing financial and human resources for
implementation, timescale and workable strategy.
 To provide a services/product within the reach of every potential customer.
3. PROJECT PLAN CONTENTS:
Project plan is one of the appropriate document which helps in attaining project
objectives in effective manner. It includes number of activities, durations and resources which
will be required for completing the whole project of L’Umbrella (Kloppenborg, 2011). Project
plan contents for the current project are described as under:
Purpose:
Major purpose of this project is to develop umbrella vending machines in 10 underground
busiest station of London. It will help in providing facilities to different customers to provide
umbrella when they come out from station. Along with this, satisfying needs and requirements of
customers is also major purpose of this project (Martin and Guerin, 2006).
Scope of the project:
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Project scope focuses on all those information which are required for completing project
of L’umbrella. For this project management needs to focus on scope of project and product
which are described as under:
 Project scope: L’umbrella will cover the need to customer at the time of rainy day in
London. So, establishing umbrella vending machines in top 10 stations of London is
known as major scope of the project.
 Product scope: It deals with customers that will need an umbrella when they come out of
the underground station. So, scope of the product is providing facility of umbrella to
customers (Darren, 2012).
Schedule management:
In the project management, schedule can be defined as a process of listing milestone,
activities, deliverables of the project with start and finish dates. It also focuses on the allocation
of resources on different activities of the project plan of L’umbrella. There are number of
methods which can be used by project manager for developing project plan for L’umbrella
project. These methods include work break down structure, Project evaluation and Review
Technique, etc. In which WBS plays important role in dividing whole project plan in specific
activities (Andersen, Dysvik and Vaagaasar, 2009). Similarly, PERT plays important role in
evaluating performance of whole project in effective manner. Project plan schedule for
L’umbrella project is as follows:
WBS Task Name Duration Start Finish Predecessors
1 Project plan for umbrella
vending machine
40
weeks
Tue
5/10/16
Mon
2/13/17
1.1 Project initiation 7 weeks Tue
5/10/16
Mon
6/27/16
1.1.1 Market research 3 weeks Tue
5/10/16
Mon
5/30/16
1.1.2
Analysis of the top 10
busiest underground stations of
London
3 weeks Tue
5/10/16
Mon
5/30/16
1.1.3 Collection of primary and
secondary data 4 weeks Tue
5/31/16
Mon
6/27/16 3,4
1.2 Project planning 13
weeks
Tue
6/28/16
Mon
9/26/16
1.2.1 Formulating aim and 3 weeks Tue Mon 5
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objectives 6/28/16 7/18/16
1.2.2 Developing a business plan 4 weeks Tue
7/19/16
Mon
8/15/16 7
1.2.3 Financial planning 2 weeks Tue
8/16/16
Mon
8/29/16 7,8
1.2.4 Technical plan 2 weeks Tue
8/16/16
Mon
8/29/16 8
1.2.5 Communication and HR
plan 3 weeks Tue
8/16/16
Mon
9/5/16 8
1.2.6 Quality and supply
management plan 2 weeks Tue
8/30/16
Mon
9/12/16 8,10
1.2.7 Risk management plan 2 weeks Tue
9/13/16
Mon
9/26/16 9,11,12
1.3 Executing 22
weeks
Tue
8/16/16
Mon
1/16/17
1.3.1 Developing a website 4 weeks Tue
8/30/16
Mon
9/26/16 10
1.3.2 Social media profile 2 weeks Tue
9/27/16
Mon
10/10/16 15
1.3.3 Purchasing umbrella
vending machines 4 weeks Tue
8/16/16
Mon
9/12/16 8
1.3.4 Business license and
insurance 2 weeks Tue
8/16/16
Mon
8/29/16 8
1.3.5 Subscription process 2 weeks Tue
9/13/16
Mon
9/26/16 17
1.3.6 Developing contract 2 weeks Tue
9/27/16
Mon
10/10/16 19,18
1.3.7 attracting subcontractor 2 weeks Tue
10/11/16
Mon
10/24/16 20
1.3.8 Installation 8 weeks Tue
10/25/16
Mon
12/19/16 17,21,13
1.3.9 Advertisement 4 weeks Tue
12/20/16
Mon
1/16/17 15,16,22
1.4 Closing 4 weeks Tue
1/17/17
Mon
2/13/17
1.4.1 Documentation 2 weeks Tue
1/17/17
Mon
1/30/17 23
1.4.2 Project execution 2 weeks Tue
1/31/17
Mon
2/13/17 25
As per the above discussed project plan, L’umbrella projection will take 40 weeks in
completion. Starting date of this project will be 10th May 2016 and completion date of this
project will be 13th February 2016 (Chiu-Chi and et.al, 2013).
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Financial management:
It is one of the import at function for completing umbrella vending machines project in
decided budget. Financial management plans focuses on estimating financial requirements,
allocation and arrangement of funds for whole project. For the current project estimating
requirements of the finance will be £80,000. There are number of sources by which project
manager can obtain funds. As per the objectives of the project, manager will use 50% owner’s
capital and 50% from bank loan. So, overall, these will be considered as financial resources for
this project. For allocating financial resources on different activities project manager will use
Activity Based Costing (ABC) system. As per this method manager needs to allocate financial
resources on each and every activity as per the needs and requirement. It is one of the best
method for reducing cost for each and every activity (Hobbs, 2009). Overall, above discussed
plan will be most appropriate for managing funds in effective manner.
Quality management:
Quality management plan assures about that final product or goods are as per the required
quality standards. It focuses on four basic determinants such as quality planning, assurance,
control and improvement. Establishing umbrella vending machines is one of the major technical
project of London. So, project manager can use different techniques for managing good quality
in final outcome such as six sigma, lean methodology and total quality management approach,
etc. six sigma helps in reducing defects in final products and services. On the other hand lean
methodology play very important role in minimizing wastage of different resources such as
financial and human resources (Zwikael, 2009). Total quality management approach plays
important role in improving the quality of final outcomes of the project in effective manner. So,
for L’Umbrella project, manager will use total quality management approach. It will help in
managing quality of the whole project plan and implementation. Along with this, by review of
project progress on regular basis project manager will assure about the actual and expected
performance of the project. In addition, project manager will develop appropriate standards of
quality for making comparison between expected and actual perform ace of the umbrella project
(Walker, 2007).
Resource management:
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For accomplishing a project in effective manner, manager needs to focus on appropriate
management of available and required resources. Resources management plan includes
estimation of the required resources such as financial and personnel. Along with this, it also
focuses on the optimum allocation of resources as per the needs and requirements of each
activity. Finance manager will allocate financial resources which will be required for
accomplishing whole activity in effective manner. Along with this, project will allocate roles and
responsibility to human resources as per their skills and knowledge. It will help in managing
resources in effective manner (Schiff, 2012).
Stakeholder management:
Stakeholder management is one of the major task for accomplishing whole project in
effective manner. For managing this task in effective manner project manager needs to identify
the number of stakeholders which are associated with this project. The current project will be
associated with number of stakeholders such as Project Manager/Director, Financial officer,
Accountant, Web Research and design, Logistic and transport officer, Project Sponsor, Technical
Engineer, Support staff and Project Corporative lawyer. Project manager will focus on needs and
requirements of different stakeholders (7 Ways to Communicate with Your Stakeholders, 2015).
It will helps in developing appropriate strategy for satisfying needs and requirements of all
stakeholders in effective manner. Regarding this, project manager can use stakeholder matrix
which will help in determining power and interest of each and every stakeholders in effective
manner.
Communication management:
It is also one of the important task for managing communication about the final product
and project. Project manager will use appropriate plan for developing strong communication
with customers and all stakeholders in effective manner. Regarding this, project manager will
decide an appropriate budget for communication. Along with this, for the internal
communication with team members project manager will use different meetings, conferences,
telephones and mails, etc. Along with this, organization needs to make appropriate
communication with customers also. Regarding this, project manager will use appropriate
techniques such as mails, marketing and advertisement, etc. Overall, project manager will use
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appropriate channels and process for making strong communication with all stakeholders (Stibel,
2011).
Project change management:
At the time of working on a project, it is not important that every plan implement
according to its planned activities. So, it can be said that it is better to expect modifications
because it helps in make the work more effective and appropriate. But, if the changes are not
manage in appropriate manner than it may affect entire task. Therefore, it is required to manage
change requests in the right direction. In the case of Umbrella Vending machine, if any kind of
modifications at any stage can be needed than project change management can play an important
role. Some steps of managing change request in proposed project are as follows. Determine the scope of the change: Under this stage, the project manager will determine
the scope of proposed changes in Umbrella Vending machines. It will include the impact
of modifications on the stakeholders of the proposed project, deliverables and other
things. Determining the scope of unified modifications: After knowing the scope of new
changes in Umbrella Vending machines, the next stage is understand the impact of
modifications on the project scheduling, costs, technical designs etc. After this, a change
request form will prepare that include all information relate to changes. Gain approval and rejection: This change request form will send to Project change
management board for their approval or rejection. The members of board will analyse the
all the aspects of proposed changes in Umbrella Vending machines.
 Communicate and implement changes : After getting the approval, the new changes will
be communicate within the team members and action plans will be carried out according
to the new requirements.
Risk management:
Project manager needs to determining different types of risks associated with the project
of L’umbrella. Regarding this, project manager will use appropriate process such as risk analysis,
determining impact, deciding priority, mitigation of the risk, etc. the current project will be
associated with different types of risks such as financial risk, lack of resources, etc. For
managing these risks project manager will use appropriate methods such as development of cash
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budget and appropriate allocation of all resources. It will help in mitigating these risks in
effective manner (Levy, 2009).
Procurement management:
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Procurement management
Procurement management is a process in which items are buying from the external
suppliers by an organization. In the case of Umbrella Vending machine, there are some
equipment’s and other objects will be require to carry out the idea into the action plan. Some
steps of procurement management process are as follows:
4. RECOMMENDATIONS AND CONCLUSIONS
Monthly review of plan to determine the area of changes in Umbrella Vending machine
plan to manage changes at last stage. To adopt the various quality standards for maintain the
working of the machines.
Conclusion:
From the above report, it can be concluded that Umbrella Vending machine project has
covered the needs in London in the rainy sessions. It has completed the requirements of the
customers when they come out of the underground stations. The total cost of this project is
£80,000 and taken 1 year to complete it.
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Illustration 1: Procurement management process
(Source: Baxter, 2015)

REFERENCES
Books and journals
Andersen, S. E., Dysvik, A. and Vaagaasar, L. A., 2009. Organizational rationality and project
management. International Journal of Managing Projects in Business. 2(4). pp.479 –
498.
Chiu-Chi, W. and et.al, 2013. Assignment of project members considering capability and
personality balance. Kybernetes. 42(7).Pp.1016 - 1028.
Darren, D., 2012. The nature of project management: A reflection on The Anatomy of Major
Projects by Morris and Hough. International Journal of Managing Projects in Business.
5(4). Pp. 643 - 660.
Dey, K. P., Clegg, T., and Bennett, J. D., 2010. Managing enterprise resource planning projects.
Business Process Management Journal. 16(2). pp.282 – 296.
Hobbs, P., 2009. Project Management. Dorling Kindersley Limited.
Kloppenborg, T., 2011. Contemporary Project Management. 2nd ed. Cengage Learning
Levy, B., 2009. Legal Project Management: Control Costs, Meet Schedules. Manage Risks, and
Maintain Sanity.
Martin, S. C., and Guerin, A. D., 2006. Using research to inform design solutions. Journal of
Facilities Management. 4(3). pp.167 – 180.
Walker, A., 2007. Project Management in Construction. Wiley.
Zwikael, O., 2009. Critical planning processes in construction projects. Construction Innovation:
Information. Process, Management. 9(4). pp.372 – 387.
Online
Stibel, J., 2011. 5 Small Business Tips for an Uncertain Economic Climate. [Online]. Available
through: < http://mashable.com/2011/09/08/economic-instability-small-business/>.
[Accessed on 16th April 2016].
Schiff, L. J., 2012. 12 Common Project Management Mistakes--and How to Avoid Them.
[Online]. Available through: < http://www.cio.com/article/2391872/project-
management/12-common-project-management-mistakes--and-how-to-avoid-them.html>.
[Accessed on 16th April 2016].
7 Ways to Communicate with Your Stakeholders. 2015. [Online]. Available through: <
https://thesavvypm.wordpress.com/2008/05/28/7-ways-to-communicate-with-your-
stakeholders/>. [Accessed on 16th April 2016].
Baxter, R., 2015. Generating value by using a project procurement management plan. [Online],
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Available through: < https://vgpblog.wordpress.com/2015/05/24/generating-value-by-
creating-a-project-procurement-management-plan/>. [Accessed on: 16th April, 2016].
Bibliography
1. http://mashable.com/2011/09/08/economic-instability-small-business/
2. http://www.cio.com/article/2391872/project-management/12-common-project-
management-mistakes--and-how-to-avoid-them.html
3. https://thesavvypm.wordpress.com/2008/05/28/7-ways-to-communicate-with-your-
stakeholders/
4. https://vgpblog.wordpress.com/2015/05/24/generating-value-by-creating-a-project-
procurement-management-plan/
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APPENDICES
1. Project charter
Project Charter
Project Name: Establishing Umbrella Vending Machines in top 10 busiest station in London
Underground
Problem/Opportunities Scope, Constraints and Assumptions
Scope: It will cover the need of customers at
the time of rainy day in London.
Goal
To provide facilities to different customers to
supply umbrella when they come out from
stations.
Team members
Project Manager, Financial officer, Accountant,
Project Sponsor, Technical Engineer, Support
staff, Web Research and Design and Project
Corporative Lawyer.
Preliminary Project Plan Target date Actual date
Project initiation 10 May 2016
Project planning 28 June 2016
Executing 16 August 2016
Closing 17 January 2017
Prepared by: Approved by:
2. Stakeholder register
Table 1: Stakeholder register
NAME POSITION ROLE INTERNAL VS
EXTERNAL
Hristiyana Koleva Project
Manager/Director
Internal
Vaklina Mollova Financial officer Internal
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Accountant Internal
Web Research and
design
Internal
Logistic and transport
officer
Supplier External
Barclays bank 50%
Personal savings 50%
Project Sponsor Main sponsor Internal
Technical Engineer Team member External
Support staff Team member External
Project Corporative
lawyer
Ethical and legal
issues
Internal
Transport of London
Sponsor External
Aliexpress whole sale Umbrella Supplier External
Calvin-C.com Vending machine
supplier
External
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3. Work breakdown structure
Figure 1: work breakdown structure
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4. Responsibility matrix
Table 2: Responsibility matrix
Task Proje
ct
mana
ger
Finan
cial
office
r
Accoun
tant
Web
Resea
rch
and
desig
n
Logist
ic and
transp
ort
officer
Proje
ct
Spon
sor
Techn
ical
Engin
eer
Supp
ort
staff
Project
Corpor
ative
lawyer
Market
research
A R I I I I
Analysis
of the top
10 busiest
undergrou
nd stations
of London
A R R R I
Collection
of primary
and
secondary
data
A,R C C C C A R A
Formulatin
g aim and
objectives
I I I C A,R C R
Develo
ping a
business
plan
A C R C I I C
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Financ
ial
planning
A R C C I C A
Techni
cal plan
I I C A C R
Comm
unication
and HR
plan
I A,R C C
Qualit
y and
supply
manageme
nt plan
A I R C C
Risk
manageme
nt plan
I A R A A R
Develo
ping a
website
A R I I
Social
media
profile
A R I
Purcha
sing
umbrella
vending
A,R C C C C A C A
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machines
Busine
ss license
and
insurance
I R R C R I
Subscr
iption
process
R A A A C R C
Develo
ping
contract
I I C R R
attracti
ng
subcontrac
tor
A I R
Installa
tion
R R A I
Advert
isement
C C
Docum
entation
C I A R R
Project
execution
R A C A
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5. Schedule (Gantt chart)
Figure 2: Gantt chart
6. Cashflow (budget) statement
Table 3: Cash flow statement
Cash flow statement
Particulars Amount in £
Cash Inflow
Own savings 40000
Bank loan 40000
Total Cash Inflow 80000
Cash outflow
Purchasing of vending machines 67500
Rent 360
Electricity bill 240
Umbrella cost 8518.5
Marketing cost 3381.5
Total Cash Outflow 80000
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7. Technical plan
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8. Communication & HR plan
Figure 3Communication and HR plan
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9. Quality & Supply management plan
Figure 4: Quality management plan
10. Risk management plan
Figure 5: Risk management plan
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