Caffeine Hub Project: Project Charter and Leadership Analysis

This assignment is a comprehensive project plan for establishing a coffee shop, named Caffeine Hub, within an organization. It begins with a project charter, outlining the project's objectives, assumptions, scope, milestones, and roles and responsibilities of stakeholders. The project utilizes the PMBOK methodology for managing the project's various phases including initiation, planning, executing, monitoring and controlling, and closing. The assignment then delves into resource management, including work breakdown structure, activity lists, cost and duration analysis, network diagrams, and risk management. It also evaluates various resource management tools such as RACI, ERP, and MRP, and explores resource scheduling, leveling, and crashing techniques. The project also analyzes and evaluates four leadership styles: autocratic, transactional, democratic, and transformational, discussing how these styles and related skills have contributed to the project's success. Finally, a reflective journal and references are included to provide a complete overview of the project.

New Zealand Diploma in Business Leadership and Management
Level 6
605- Lead and Manage a Strategic Project.
(Level 6, 20 Credits)
Assessment
Project (Individual & Group Elements)
Course Tutor: Umar
Student Name – Tejbeer Singh

Table of Contents
1. Introduction and purpose of the project..................................................................................10
2. Assumptions.......................................................................................................................... 11
2.1 Work Breakdown Structure (WBS)...................................................................................11
2.2 Activity List....................................................................................................................... 13
2.3 Cost and Duration of each activity....................................................................................14
2.4 Network Diagram and Critical path...................................................................................15
2.5 Human Resource Plan.....................................................................................................17
2.6 Communication Plan........................................................................................................18
2.7 Risk Management Plan....................................................................................................19
2.8 Compliance requirement..................................................................................................22
3. Evaluation of resource management tools.............................................................................23
3.1 RACI................................................................................................................................ 24
3.2 ERP.................................................................................................................................. 24
3.3 MRP................................................................................................................................. 25
4. Resource scheduling, levelling, and crashing........................................................................26
4.1 Resource scheduling........................................................................................................26
4.2 Resource levelling............................................................................................................ 28
4.3 Resource crashing........................................................................................................... 29
5. Evaluation of 4 Leadership Styles..........................................................................................30
5.1 Autocratic leadership style...............................................................................................30
5.2 Transactional style of leadership......................................................................................30
5.3 Democratic leadership style.............................................................................................31
5.4 Transformation style.........................................................................................................31
5.5. Explanation behind ways by which above-mentioned leadership styles and skills have
helped this project.................................................................................................................. 32
Reflective journal....................................................................................................................... 32
Reference.................................................................................................................................. 36

Part A Project Charter
Project Title: Caffeine Hub.
Brief
description on
project
Designing of a coffee house
Prepared By: Tejbeer Singh
Date: 02-03-2018 Version: 2
Project Objective:
The main aim of the Coffee shop is to attract as many customers as possible. The shop offers
variety of diversified taste with premium coffee beans and other ingredients. This coffee shop
in the state is a sign of art. The project will provide the employees to take a refreshing break
from the monotonous routine. The coffee shop would be a few steps from the main office which
would increase the accessibility of many employees.
o
Assumptions
The organization within which such coffee shop setup would be established is a large size
organization having atleast 800 employees.
The income level of the general consumers are sufficient to cater the buying power required for
purchase of coffee.
The management has given the permission for establishment of the coffee shop.
Sufficient demand exists to attain the break-even position after accounting for fixed costs.
There is no expectation that there would be a sudden decline in demand for coffee.
Not enough coffee shop(s) are there in the surrounding area.

Project Scope
The project will be restricted to the boundaries of the organization. The primary customers of
the Coffee shop would be internal employees of the organization.
The products anticipated to be marketed shall be caffeinated hot drinks; however, based on the
reception of the staff of the Company, further edibles such as snacks may also be served.
If allowed by the Company and based on the overall revenue and break even position, the
coffee shop may open a kiosk outside the Company to increase the customer overall customer
footfall.
List any requirements that are specifically excluded from the scope.
Since the coffee shop will operate within internal boundaries of the organization, it is expected
that no outside customer will be allowed in the premises.
Further, since the coffee shop will be operating on a small scale, fast food items have been
excluded from the scope since the same requires further investment time and resources which
may not be fruitful given the limited customer yardsticks of the Company.
Project Milestones
List the major milestones and deliverables of the project.
Milestones Deliverables Date
Obtain the approval of relevant
departmental heads particularly the
administration department for approval
of the workshop
Project plan submitted for approval
Written approval for opening of the
coffee shop by the management of the
Company.
April 1

Once the approval of the same has been
obtained, engage an interior designer
for overall architect and other relevant
details for the shop.
Interior design of the project April 4
Upon approval of the design, an order
shall be place for furniture and
equipment required and as speculated
under the budget.
Receipt of sales order from the relevant
shops.
April 5
An order shall also be placed for the
procurement of coffee vending
machine, espresso machine, cutlery and
related items
Receipt of sales order confirming the
booking and delivery date of the requisite
items.
April 5
Design and prepare appropriately
hoarding and wall frames for the shop.
Initial design and outlay in the form of
document.
April 7
Consult electrician for installation of
appropriate electricity terminals for the
shop
All terminals and ports are functioning
and working.
April 8
Find suitable staff for employment. The
positions would be cleaner, waiters and
dish washer. This can be done through
walk-in interviews.
Appointment letters issued to relevant
staff.
April 10
Ensure that the all installation items are
appropriately setup
Certificate of completion from the
interior designer.
April 24

Project Management Methodology
Evaluate which project management methodology will suit for this project:
The methodology used for analyzing the critical path is the PMBOK, known as the project
management body of knowledge. This contains a paradigm for maintaining the guideline and
terminology for the project. The PMBOK provides guidelines for handling every types of project
and also explains the necessary concept related to managing the project. There are five process
that involves the project management, this are:
Initiation: It initiates the new beginning of a project by getting the authorization access.
Planning: Those process are being initiated, are required to build a new objective with a
complete outcome for the planned project.
Executing: The process of executing the work is defined here and there is a need to satisfy the
specification given by the project.
Monitoring and controlling: This process includes reviewing the project and there is a need to
identify the section where the changes are required.
Closing: Finally, after feedback and reviews received and changes made after this stage, the
project is being closed.
Critical paths is determined to know how long time the project will require , this includes all the
activities done explained in the network diagram. The activities that are followed by the critical
path, is having a float zero. This means any delays in the critical path will affect the whole
scheduling of the project.
Roles and Responsibilities of Stakeholders
Sponsor: Sponsor are those who supports the project by supporting the project objective and by
funding some amount of money for developing the project.
Responsibility: Approves all the necessary and basic requirements for project, confirms the goal
of the project and agrees and works for attaining the same objective , make decisions on
escalated issues; and assist in the resolution of roadblocks.

Name Email / Phone
Project Manager: The role of project manager is to develop and plan the project in such a way ,
that it will be beneficial. Project manager also manages and determines the scope for the
project.
Responsibility: The responsibility of a project manager is to develop a plan, deliver the project
on or before the given deadline. Risk assessment is done in the developing stage. The project
manager , directs the team and supervise on them; maintains all the documents related o the
project plan, with this forecasts feedback report from each stages so that the risks and the errors
can be resolved at the initial stages.
Name Email / Phone
Team Member: A group of people work together for achieving a goal or a target, so that they
can fulfil the requirements for the project.
Responsibility: The requirements and the objectives need to be clearly discussed among all the
team members. Then the team members are needed to precede the project, while keeping in
mind the requirements. Complete the research for submitting the project on time this includes,
data gathering, analyzing the requirements. Discussing the problems with the manager faced
while developing the project. Communications among all the team members are essential.
Name Email / Phone
Customer: Customer is the one who is need of getting the work done by someone else , and
paying money for this.
Responsibility: The responsibility of a customer is to review and give genuine feedback on the
resource availed by them. Also while providing the project to any customer it is the duty of the
customer to describe all the necessary details including deadline.
Name Email / Phone

Subject Matter Expert: The role of the expert is to provide useful suggestion on the specific
subject.
Responsibility: It becomes the responsibility of the subject matter expert to maintain all the
records and acknowledge accordingly and to give advice on what is needed to be done in order
to improve the project.
Name Email / Phone
Resources.
Resource Constraints
Cash investment. The sponsor is ready to
invest 60,000 USD in the project.
The cash apparently seems sufficient for the
purposes of the establishment of coffee shop.
(see note 1 below). However, recovering the
investment in its entirety to attain breakeven
position would be difficult task in view of
limited anticipated footfall.
Waiters and dishwasher. The human resource is not readily available for
the project. The sponsors may need to train
certain staff prior to starting the business.
Physical resources The resources required are, choosing a pleasant
place that will attract people. Secondly, the
materials needed for decorating the area and
the fascinating items.
Human resources The main human resources required are staffs
for managing the project.

Note 1 Budgeted Capital expenditure:
Item Qty Cost per unit Budget Utilization
Cabinets 2 500 1,000
Tables 8 300 2,400
Chairs 24 150 3,600
Sofas 8 250 2,000
Cutlery (cups, bowls, saucers and
plates 40 each 4 640
Overall infrastructure 6,000 6,000
Designing and Decoration 5,000 5,000
Espresso Machine 2 4,000 8,000
Coffee Maker 2 1,000 2,000
Coffee grinder 2 400 800
Electronic Counter 1 100 100
POS system 1 1,000 1,000
Cash Safe 1 100 100
Miscellaneous 500 500
Total Budgeted Amount 60,000
Unutilized Budget 26,860
Project Risks
Risk Mitigation Strategy
The management of the Company Keeping the alternate places in the vicinity to operate the

may decide to withdraw their
decision to continue allowing the
use of coffee shop
coffee shop for which the rent is minimal
The employees may prefer buying
the coffee from outside due to
premium brand or taste resulting in
losses on account of fixed costs.
Ensuring the high quality of services and product to
continuous evaluation of vendors and recipes. The
evaluations can be conducted through reviews of
customers.
The employees may not be fond of
coffee due to which the losses on
account of fixed cost may be
incurred
Keeping in line options to introduce additional snacks
and caffeinated drinks or juices.
Foods prepared should be fresh
else the customer may complain
about the service.
Maintaining high level of quality standard through use of
high quality material.
It may not be easy to find suitable
vendors for the import of coffee
beans. Finding a vendor with ability
to provide quality coffee beans is a
difficult process.
Initial samples should be invited from different vendors.
The quality of the same should also be evaluated for
recurring purchases.
The biggest challenge is the overall
outlook and presentation of the
coffee shops. There is a possibility
that the un-appealing environment
may not be able to attract sufficient
employee customers.
Periodically making capital expenditure on the coffees
shop.
Another issue is that the Coffee
shop will be within the closed doors
of the Company. Due to this reason
the customers of the Company are
very limited.
Different products along with the coffee shop should be
marketed. If feasible and allowed by the Company,
provision may also be made for deliveries on order or
extra kiosk outside the office premises.
It is difficult to find sufficiently Providing annual training to employees and leading them

skilled staff and to keep them
motivated. Inability to have
properly trained staff may affect the
overall reputation of the shop.
from the front.
Success Measurements
The only objective associated with the coffee shop is the recoverability of the entire investment
and to attain at least the breakeven position in the future. The ability of the Company to attain
these metrics is primarily based on the fact that it is projected to be a not for profit organization.
Signatures
The signatures of the people below document approval of the formal Project Charter. The
project manager is empowered by this charter to proceed with the project as outlined in the
charter.
Customer:
Name Signature Date
Project Sponsors:
Name Signature Date
Project Manager:
Name Signature Date

Part B
1. Introduction and purpose of the project
Project management plan can be referred as a formal approved document which is used so as to
manage successful execution of any project. This plan also provides with a detailed
understanding of actions which are essential for preparation, execution as well as coordination of
activities. This plan also supports strategic alignment, simplified and clear objectives and a
realistic planning (Paillé, 2014).
In this study, focus has been given on establishment of a Coffee shop which can provide
customers with a diversified taste of premium quality coffee beans. This project management
plan would therefore, help in providing employees with a refreshing break from their
monotonous schedule. However, this shop would be just few steps away from the main office
which would help in attracting more number of employees. For successful establishment of this
shop, capital amount of $60,000 have been estimated which would include all required items.
This would also include designing costs such as costs of furniture, coffee vending machine, and
cutlery along with espresso machines. Roles and responsibilities of all key personnel would also
be assigned using this management plan. Moreover, during this process, several risks can cause
hindrance for which a risk management plan has been prepared.
2. Assumptions
In order to successfully implement this plan of coffee shop, budgeted amount of $60,000 has
been estimated. Moreover, for this, time span of 4 weeks have been decided. It has been further
assumed the following:
● Accommodation for at least 800 employees needs to be done
● The management of the organization within which this shop is going to be opened has
granted the permission
● No sudden decline in demand for coffee has been assumed
● After getting approval from head of the administration department, work for this shop
would be started.
2.1 Work Breakdown Structure (WBS)