Project Management Report: Nestle Factory Expansion and Globalization

This project report details the expansion of the Nestle factory in Tongola, Australia, focusing on establishing a new liquid manufacturing facility. It covers various aspects of project management, including project aims, objectives, cost analysis ($17 million), scope (increasing production and quality), timeline (1 year), quality assurance, communication strategies (face-to-face), and risk management (financial, physical, and miscellaneous). The report includes a timeline table and a Gantt chart, providing a comprehensive overview of the project's planning and execution. The project aims to meet rising customer demands, enhance research and development, and ensure the nutritional quality of products, thereby increasing productivity and market sustainability. It also addresses key objectives like market demand determination, strategic implementation, and budget allocation across different project phases.

Running head: PROJECT MANAGEMENT
Project Management on Globalization
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Project Description.....................................................................................................................3
Project Aims...............................................................................................................................4
Project Objectives......................................................................................................................4
Project Cost................................................................................................................................5
Project Scope..............................................................................................................................6
Project Time...............................................................................................................................6
Project Quality...........................................................................................................................6
Project Communication..............................................................................................................7
Project Risk................................................................................................................................7
Project Resources.......................................................................................................................8
Timeline.....................................................................................................................................8
Table No 1: Timeline Project.................................................................................................9
Figure No 1: Gantt chart........................................................................................................9
References................................................................................................................................10

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Introduction
The following project has been based on the establishment of the Nestle factory in
Tongola. The report has provided the details on the establishment of the factory starting from
the decision phase to establish the factory in the location to the budgeting, scope and other
details of the project. The providence of the timeline, Gantt chart and the Work Breakdown
Structure in this project has made the project more compact and informative in nature. The
project begins with a short description and then continues with the other different
perspectives of the particular job.
Project Description
Nestle, Australia has recently planned for the expansion of the Tongola factory in
Victoria State of Australia. The management of the company has decided for the expansion to
ensure that they meet up with the new and rising demands of the customers (nestle.com.au
2019). The Tongola factory has been one of the best of the company and has been in
existence for a long time since now. The management of the company has been planning to
ensure the increase in the productivity and also ensure new research and development of the
different kinds of the products manufactured by the company (nestle.com.au 2019). The
management of the company has plans to set up a new liquid manufacturing facility for the
organization in order to ensure a successful business line in the island country (nestle.com.au
2019). According to, Vidler et al. (2018) the new facility comes up with the creation of a new
and better supply chain management for the business. The management of the company has
stressed on the new project to ensure the refurbishment of the existing site and the installation
of different kinds of the new research and development centre to carry out an extensive
research on the products and to also implement a better quality of the products (nestle.com.au
2019). The products to be developed under the new project will ensure that it contains

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specialized nutrition meet the different kinds of the requirements of the different customers of
Nestle both nationally as well as internationally.
Project Aims
The project has been one of the most challenging ones that has been taken up by the
management of Nestle, Australia. The main aim of the project is to promote a liquid
manufacturing facility to cater to the needs of the customers as well as ensure the carrying out
of a research and providence of high nutritional quality. Such a new role will be essential for
the company as because the demand for the products of Nestle is on a rise and especially for
that of the liquid products of Nestle. The demand for the liquid products of the company is a
new addition. The products like Ensure Vanilla Drink has seen a steep rise in demand since
its introduction in the Australian market. This demand has prompted the management of the
company to establish the new facility within the Tongola premises of the organization and
meet the new demands accordingly.
Project Objectives
The objectives of the following project is to ensure the success of the organization in
a proper and efficient manner. The management of the company has some exclusive plans in
store to ensure the success of the project. In order to ensure the success of the project, the
management of the company has chalked out its objectives. The objectives for the following
projects are;
a. To determine the exact demand of the market
b. To carry out a market survey to determine the demand of the market
c. To gain a clear and transparent insight of the demand of the liquid products of the
organization
d. To determine the scope, time and budget of the project

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e. To determine and implement the perfect communication role of the organization
f. To determine a proper strategy for the business success
The above mentioned objectives have to be implemented in a strategic and systematic
manner to ensure the success of the business.
Project Cost
The cost of the project has been estimated to be a whopping $17million. The project
cost has been determined by the management of the organization at the beginning of the
selection of the project and the other parameters for the project. The project cost
determination is an important analysis as because no project can start without a budget. The
management of Nestle can ensure the success of the project as well as ensure the way it can
handle the project by ensuring the success of the business only with the fixation of the cost of
the project. This clearly indicates that when compared to the project cost and the project
profit, project cost generally exceeds the profit. Thus such a process can lead to the failure of
the project. The cost of the project or the budget has been divided into number of different
phases. This includes;
 1st Phase- The first phase will include the cost involved in the decision making,
planning and meetings
 2nd Phase- The 2nd phase is the cost that will be involved in the start of the project
and the construction of the project. This is one of the most important parts of the
project and will involve a large part of the cost
 3rd Phase- The third phase will involve the other miscellaneous costs that will include
different types of other construction and fittings
 4th Phase- The fourth and final phase will require the different costs involved in
monitoring and granting the licence

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Project Scope
The project has aimed to increase the production capability as well as increase the
quality capability of the organization in a planned and systematic manner. The ability of the
organization to construct the project in such a manner ensures the success of the project. The
aim of the management of Nestle has the aim to increase the productivity of the organization
as well as make the customers assure about the quality and nutritional contents of the
different kinds of food products that are produced by them. However, the scope of the project
increases with the fact that the organization has considered the construction of the liquid
production facility in the Tongola premises which will provide them an additional
competitive advantage in the country to challenge the other competitors in the business
market (Vidler et al. 2018). The increase in the scope of the project is thus one of the most
important elements in the success of the project. The success of the project thus helps the
organization to ensure profitability and market sustainability in a competitive market like that
of Australia.
Project Time
Project Time is one of the most important element of the project and a proper time
must be maintained by the project team in which the project must be undertaken and
completed in a proper manner (Saltz and Crowston 2017). It is important to maintain a time
as because the proper maintenance of a time can help the organization to make the project a
success. The following project has been given a time of 1 year for completion. The project
will be completed by 1 year which is deemed to be perfect for the project. The timespan may
be increased given the complexity of the project.

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Project Quality
Quality is an essential element of the business and it needs to be maintained to ensure
the maintenance of a proper research. The better the quality, the better will be the chances of
the organization to ensure success of the business. The quality of the project can be ensured
by fixing and deciding upon a set trend of parameters which must be followed strictly to
ensure business success. The maintenance of a healthy business quality can ensure business
success and can also assure the better productivity of the business (Mialon et al. 2016). The
management of Nestle has selected the best suppliers and the best possible supply chain
management system to ensure success of the project.
Project Communication
According to, Mehr et al. (2017) communication forms an important part of any kinds
of project. The better communication prospect ensures the success of the business in a proper
and efficient manner. The management of Nestle has selected the face to face communication
method in order to ensure the success of the new project. The management will be sitting
with the stakeholders of the business as well as the different team members of the project to
ensure the project success. The proper communication will ensure the brief up of the project
by the management of the organization to the members of the project management team led
by the project manager.
Project Risk
Risks are associated with each and every single project. The project undertaken by
Nestle will also ensure the same risk given the type of the tasks that will be undertaken by the
management of the company (Kerzner 2018). The project manager has to formulate specific
plans to counter the risks. The risks that are associated with the project are as follows;
a. Financial risk- Loss of finance and absence of proper funding

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b. Physical risk- Accidents while construction and installation of buildings and
machinery
c. Other risks- The risks include different kinds of other miscellaneous risks included in
the organization
A proper strategy has to be kept in place to ensure the mitigation of the risks as well
as ensure success of the new project.
Project Resources
The resources of the project includes mainly physical resources like Human resource
where a proper team will be formed to carry out the project. The project management team
will select the suppliers as well as vendors to supply the different kinds of products. Financial
resources are also important as $17million has been earmarked for the project.
Timeline
Task Name Duration Start Finish
Project Nestle
Tongola Expansion
364 days Thu 27-
06-19
Tue 17-
11-20
Decision to Expand
the Tongola Project
25 days Thu 27-06-
19
Wed 31-
07-19
Arrangement of
Meeting with the
Stakeholders
10 days Thu 01-08-
19
Wed 14-
08-19
Approval of the
New Project
10 days Thu 15-08-
19
Wed 28-
08-19
Selection of a
marketing team to
conduct survey to
gather data on the
necessity of the
project
10 days Thu 29-08-
19
Wed 11-
09-19
Undertaking of the
survey
35 days Thu 12-09-
19
Wed 30-
10-19
Submission of the
report of the survey
3 days Thu 31-10-
19
Mon 04-
11-19
Approval of the
report in the next
meeting
10 days Tue 05-11-
19
Mon 18-
11-19
Formation of a 35 days Tue 19-11- Mon 06-

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project team 19 01-20
Selection of the
Budget
25 days Tue 07-01-
20
Mon 10-
02-20
Approval for the
budget
20 days Tue 11-02-
20
Mon 09-
03-20
Start of the
construction Phase
45 days Tue 10-03-
20
Mon 11-
05-20
Monitoring of the
construction phase at
the end of the
construction phase
50 days Tue 12-05-
20
Mon 20-
07-20
Start of the other
works
45 days Tue 21-07-
20
Mon 21-
09-20
Start of the final
monitoring phase
36 days Tue 22-09-
20
Tue 10-11-
20
Submission of the
monitor report to the
management
4 days Wed 11-
11-20
Mon 16-
11-20
End of the project 1 day Tue 17-11-
20
Tue 17-11-
20
Table No 1: Timeline Project
Source: (As created by the Author)
Figure No 1: Gantt chart
Source: (As created by the Author)

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References
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management across borders. Routledge.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
pp.291-298.
http://www.nestle.com.au. (2019). $17m expansion at Nestlé’s Tongala factory unveiled.
[online] Available at: https://www.nestle.com.au/media/pressreleases/tongala-factory-
expansion [Accessed 27 Jun. 2019].
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology
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different project environments. International Journal of Managing Projects in Business, 9(2),
pp.364-388.
Joslin, R., 2019. Project Management Methodologies, Governance and Success: Insight from
Traditional and Transformative Research. CRC Press.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John
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Mehr, S., Frith, K., Barnes, E.H., Campbell, D.E., Allen, K., Barnes, E., Gold, M., Joshi, P.,
Kakakios, A., Loh, R. and Peake, J., 2017. Food protein–induced enterocolitis syndrome in

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Australia: A population-based study, 2012-2014. Journal of allergy and clinical
immunology, 140(5), pp.1323-1330.
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Saltz, J. and Crowston, K., 2017, January. Comparing data science project management
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Conference on System Sciences.
Vidler, A.C., Stoneham, M., Edmunds, M. and Sartori, A., 2018. The illusion of choice: an
exploratory study looking at the top 10 food companies in Australia and their brand
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