Business Relocation Project: A Comprehensive Case Study Analysis

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Added on  2023/03/31

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Case Study
AI Summary
This case study provides an in-depth analysis of a business relocation project, detailing the various stages from initial planning to final execution. It begins by outlining the reasons for relocation, emphasizing the importance of a well-structured relocation plan that considers risk evaluation, potential benefits, and a comprehensive task checklist. The project scope statement identifies key objectives such as completing the relocation within eight months, assigning fifteen project managers, disposing of the current business location, and constructing a new site. Deliverables include the project plan, approval of relocation inventories, vendor management, and achieving successful relocation within six months. The study highlights critical milestones like site acquisition, funding, disposal of the old location, and completion of the new construction. Technical requirements, limits, exclusions, and customer reviews are also discussed. Prioritized activities include project budgeting, planning, lead time estimation, employee commitment, and responsibility assignment across four phases: project planning, preparation, relocation, and recovery. The work breakdown structure outlines tasks from project initiation to insurance and maintenance, emphasizing the importance of quality control and performance standards using metrics like schedule and cost variance. Cost estimation methods, including top-down and bottom-up approaches, are detailed, providing a comprehensive overview of the financial aspects of the relocation. The case concludes by underscoring the necessity of project oversight and subcontractor plans to ensure successful project execution.
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Running Head: BUSINESS RELOCATION 1
Business Relocation
Student’s Name
Institution
Tutor
Date
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BUSINESS RELOCATION 2
Introduction
Stakeholders relocate their firm due to several justifiable reasons. It may be due to the need to
get increased customer traffic and put the business at a position of growth opportunities as well
as get more space for business expansion. However, the whole process of relocating a business
may lead to business disruption, time-consuming and may also disrupt the customer-employee
bond that already exists. A business relocation plan should take into consideration the relocation
risk evaluation mechanism, relocation benefits to the firm as well as a detailed checklist on the
tasks need to successfully relocate the business, (De Felice et al., 2015). In the relocation plan, it
is important to clearly note down the reasons for relocating the business. Listing relocation
reasons is critical for focusing the relocation plan to the right direction and achieving the set
relocation goals. Comparison of possible risks and the benefits offered by the new location
should be done. Guide to the maximization of the new benefits in terms of the new environment,
easier access to the customers and business suppliers, availability of possible skilled labor from
the new location and the benefits offered by the new space for business expansion.
Project scope statement
The relocation process will begin with the identification of the ideal new location. This will
include the deployment of the firm’s surge team to carry out extensive market research and
determine the suitability of the identified place to the achievement of the goals of the business,
(Roberts, 2011). This will include accessibility of the new place to customers and business
suppliers. The leasing of the current place will be done when a new location has been identified,
constructed, partitioned and designed to meet all the requirement of the business and is ready for
occupation.
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BUSINESS RELOCATION 3
Project objectives
i. Completion period is eight months
ii. Number of project managers is fifteen drawn from the firm and other project
developers
iii. Disposal of the current business location
iv. Construction of the new business location site and business relocation exercise
Project deliverables
The following are the main project deliverables;
i. The project plan for business relocation
ii. Approval of all relocation inventories
iii. Vendor management
iv. Business relocation to be achieved after 6 months
Project milestones
i. Identification and acquisition of the establishment site
ii. Project funds acquisition
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BUSINESS RELOCATION 4
iii. Disposal of the current business location
iv. Complete construction of the new business location
v. Successful business relocation
Technical requirements
i. Project financing
ii. Project time requirement
iii. Resources
Limits and exclusions
i. Limited timeframe for data gathering and analysis
ii. Some project data was not availed due to the request of the new business opponents
iii. Some stakeholders stayed away from engaging in the project activities
iv. Incorrect data entry
Review with customers
i. Office accessibility made easier
ii. Strategically located in serving all customers
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BUSINESS RELOCATION 5
Project priorities
Relocation process is a very critical process to carry out. It should be done carefully and all the
activities set in terms of their priority and their accomplishment, (Tereso, & Bernardino, 2011).
In this project, the stakeholders will put more priorities in the following activities; projecting
budgeting and planning, activity lead time and project personnel time commitment and assigning
responsibility to project personnel.
Project budgeting and planning
It is very important to start the relocation process by having a complete task funds allocation.
After the task inventory allocation has been done, it becomes important to assign the tasks to
individuals. The budgeting is important in task completion process and task assignment is
important since it gives responsibility to the completion of the task. Failure to properly plan and
budget project activity may make the project to fail terribly.
Lead time estimation and employee commitment
The thorough and complete activity of the project will be done. It is done by properly
determining all project activity lead time and most importantly the time that is required to
manage the activities. In order to make sure that the project will be successful, it becomes
extremely important to assign project activities to the people with appropriates skills and
expertise. The existing staff members will be assigned the project activities and make them
responsible for their success.
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BUSINESS RELOCATION 6
Responsibility assignment
Normally, business relocation activity has four phases; project planning, preparing, business
relocation and business recovery with the operations in the new location. The whole process
starts with project planning, which is the first step. The following phases need continuous
management process since they involve numerous crucial activities that require a complete
understanding of hundreds of details, (Slabá, 2014). Most of the details involved in these tasks
affect more than one department. Therefore, they require the project managers to continually
monitor their effects in all the departments they affect.
Relocation work breakdown
Any activity conducted in the organization, including changing of the business location is under
the control of the firm’s board of directors. The project financiers will be funding the project
hence will require prudent financial reports on the implication of their finances on the project.
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BUSINESS RELOCATION 7
The business manager is the head of all activities so most of the relocation reporting will be
reported to him. Other relocation project personnel will be reporting directly to the project
manager or the departmental managers they are under.
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BUSINESS RELOCATION 8
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BUSINESS RELOCATION 9
Work packages;
Foundation; foundation will be done in the first week after acquisition of the project site, It is
critical for the quality of the structure that will be constructed.
Exterior; the main contractor will be in charge of all activities involving the construction of the
exterior of the building.
Interior; it is allocated to subcontractors who are in charge of constructing such things as walls,
plastering, interior designing and other finishing requirements
Project oversight
This is carried out to determine how the relocation project and the activities involved are
proceeding. It helps in determining if the whole process will be achieved with the set aside cost.
Project oversight is important in the identification of risks that may be faced hence the mitigation
measures can be put in place in case the risk occurs in a way that the project will not experience
a high degree of damage, (Gustafsson et al., 2013). All activities of the project are monitored
during the oversight of the project. This is important in order to determine how project
management functions can be used. This includes project scheduling, management scope, project
budgeting, risk management, activities regulations, project standards, and employed policies and
also checking project compliance with the set rules. To manage the construction of the new
business location project, the oversight of the project will include the following; establishment of
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BUSINESS RELOCATION 10
the project scope taking into consideration the scope statements and the provided project charter.
And other deliverables included in the project work breakdown structure.
Subcontractor plans
Contracts refer to the obligatory agreements between two or more parties that demand one of the
parties to complete an activity as the other party offers to pay the other party after he/she
completes the said activity. In the construction process, the contractor is the prime receiver of the
construction fees for the activities that he/she might have even delegated to another party
referred to as a subcontractor. Understanding this relationship will be vital for the success of the
project. Subcontracts are highly affected by the terms of the main contract, (Failner, & Tyrrell,
2014). It includes the development of work statements that are used in the definition of the
project goals proposed to the owners of the business and the financiers. On this business
relocation project, the business will agree with the main contractor on the aims and the objectives
of the project leaving the subcontracting of activities at the hands of the main contractor.
From the business, which is the owner of the project, a contractor plan will be developed that
will require documentation of all project compliance needs, schedules, work processes, costs,
and the project deliverables. The following is the project work breakdown structure;
Work breakdown code Tasks
0 Business relocation
1 Initiation of the project
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BUSINESS RELOCATION 11
1.1 Management of the project
1.1.1 The planning process of the project
1.1.2 Project budgeting
1.1.3 Project scheduling
1.1.4 Requirements procurement
2 Planning
2.1 Project requirement identification
2.1.1 Business requirements
2.1.2 Risks and constraint analysis
2.2 Project site selection
3 Construction
3.1 Obtaining of construction permit
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BUSINESS RELOCATION 12
3.1.1 Project vendor selection
3.1.2 Contractors invitation and selection
3.1.3 Agreement with the chosen vendor
3.2 Project utilities
3.2.1 Project account creation
3.2.2 Actual construction, finishing, and interior
designs
4 Insurance
4.1 New location equipment packing
4.1.2 Cleaning of the rooms
4.1.3 Staff unpacking
4.2 Unpacking of office equipment’s
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