Operations and Project Management: Catering Project Analysis

This assignment analyzes a project focused on establishing a catering service for employees within an organization to address issues of time wastage, congestion, and unhealthy eating habits. The report begins with an introduction outlining the project's objectives and the challenges it aims to solve. It provides an overview of the case study, detailing the problems faced by employees due to the lack of on-site catering. The core of the report discusses the project life cycle (PLC), explaining its stages: initiation, planning, execution, and closure. The report then applies the PLC to the catering project, including the business case, project plan, cost-benefit analysis, and work breakdown structure (WBS). The cost-benefit analysis evaluates the financial aspects, while the WBS provides a detailed schedule. The report concludes by assessing the effectiveness of the PLC in the given project, emphasizing its structured approach. The assignment references key project management resources for further study.

Running Head: OPERATIONS AND PROJECT MANAGEMENT
Operations and Project Management: Assignment 2
Name of the Student
Name of the University

1OPERATIONS AND PROJECT MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion and Analysis..............................................................................................................2
2.1 Overview of the Case Study..................................................................................................2
2.2 Description of the Project Life Cycle and its Stages.............................................................2
2.3 Application of PLC in the Given Project...............................................................................3
2.3.1 Business Case.................................................................................................................3
2.3.2 Project Plan.....................................................................................................................4
2.3.3 Cost Benefit Analysis.....................................................................................................4
2.3.4 Work Breakdown Structure............................................................................................5
2.4 Effectiveness of PLC in the Given Project............................................................................7
3. Conclusion...................................................................................................................................7
Bibliography....................................................................................................................................8

2OPERATIONS AND PROJECT MANAGEMENT
1. Introduction
The primary purpose of this project is to initiate a catering service for the employees of
the organisation so that they do not waste time and create congestion while moving around in the
locality for lunch. In addition to create solution for the time wasted for lunch and the congestion
in the locality, the company also wants to develop a CSR (Corporate Social Responsibility) in
which it wants the employees to supplied with healthy food for lunch.
In this report, a discussion has been published regarding a project plan that will be
implemented for supplying lunch for the employees from within the organisation premises.
2. Discussion and Analysis
2.1 Overview of the Case Study
Due to the absence of catering services, the employees need to move outside the
organisation premises for lunch. Due to over-congestion of employees (the organisation has
currently 1250 employees working), the locality has been facing problems and moreover, the
employees are forced to have extended lunch breaks that are significantly reducing their actual
shift timings at work. In addition, the outside food the employees have for lunch are not healthy
and many employees often fall sick and take leaves from their work. In order to take care of
these issues, it is suggested for the organisation to supply food in form of catering services to the
employees. There are two methods for achieving this goal – hire an external caterer for supplying
food to the employees or construct an employee canteen within the organisation premises where
the employees can have food for lunch. The second option is more viable as in spite of having
significant amount of initial investment, the company can control the quality of the food
delivered to the employees during the lunch time.
2.2 Description of the Project Life Cycle and its Stages
A project life cycle is defined as the entire process in which the overall project is
planned, prepared, executed and closed. Generally, a project life cycle consists of four main
stages – project initiation, project planning, project execution and project closure. These stages
of a project are explained as follows.

3OPERATIONS AND PROJECT MANAGEMENT
Project Initiation – This is the first stage of any project in which the project requirements
are gathered, analysed and discussed. Generally in this stage, a project proposal is submitted to
the authority that explains the overall purpose and goals of the project, the expected outcomes, a
rough timeline and the roadmap that will be followed for the project. The project proceeds to the
next phase when the proposal is approved by the management.
Project Planning – In this phase, the overall plan for the project is developed. The plan
includes identification of the project scope and objectives, development of work breakdown
structure, estimation of detailed timeline, budget, development of quality standards, estimation of
resources, identification and mitigation of risks associated with the project and others. The final
outcome of this phase is a detailed project plan document that contains all the relevant aspects as
determined in the planning process.
Project Execution – This is the main phase of the project in which the planned activities
are executed in order to reach the final goal / outcome of the project. In addition to reaching the
end goal of the project, it is also required the complete the project within the specified time and
budget that have been specified during the project planning phase. Budget and time overshoot
can cause significant financial losses for the company and hence, any overshoot needs to be
avoided.
Project Closure – This is the final phase of the project life cycle in which the overall
outcome of the project is reviewed and appraised. In addition, all remaining activities like
submission of documentation, making the pending payments and others are completed. Once the
project review is complete, it is closed by the project manager along with sign off from all the
stakeholders associated with the project.
2.3 Application of PLC in the Given Project
2.3.1 Business Case
The project involves construction of an employee canteen within the organisation
premises for supplying healthy food for lunch. In addition to providing healthy food to the
employees, it can also be a source of minor additional income for the company by selling the
lunch food. Apart from this, there is no other business opportunity as this project is solely

4OPERATIONS AND PROJECT MANAGEMENT
conducted in order to reduce staff movement around the locality during the lunch break and
provide healthy food options for the employees.
2.3.2 Project Plan
In this project, an employee canteen will be built within the organisation premises for
providing lunch to the employees at minimal costs. For this project, a contractor will be hired
who will construct and set up the canteen as per the requirements on the property space provided
by the organisation. After the canteen is ready, a team of chef and canteen staff will be hired who
will cook and serve food to the organisation employees only.
2.3.3 Cost Benefit Analysis
The cost benefit analysis is conducted based on the following estimated values.
Cost Benefit Analysis
Construction Materials $ 15,000.00
Construction Equipments $ 12,500.00
Construction Workers' Wages $ 40,000.00
Other Costs $ 7,500.00
Total Development Cost $ 75,000.00
Canteen Maintenance $ 1,500.00
Kitchen Supplies $ 4,000.00
Chef and Canteen Staff $ 3,500.00
Total Operational Cost $ 9,000.00
Income from Lunch Sale $ 1,50,000.00
Other Income $ -
Total Benefit $ 1,50,000.00
Discount Rate Used 10.00%
Based on these values, the cost benefit analysis is conducted as shown in the following.

5OPERATIONS AND PROJECT MANAGEMENT
Project Cost-Benefit Analysis
Analysis Variables:
Discount Rate Used 10.00%
Annual Benefits 1,50,000.00$
Annual Operational Costs 9,000.00$
One-Time Development Cost 75,000.00$
Year of Project
0 1 2 3 4 5 TOTALS
Economic Benefit $0.00 1,50,000.00$ 1,50,000.00$ 1,50,000.00$ 1,50,000.00$ 1,50,000.00$
Discount Rate 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209
PV of Benefits $0.00 $1,36,363.64 $1,23,966.94 $1,12,697.22 $1,02,452.02 $93,138.20
NPV of all BENEFITS $0.00 1,36,363.64$ 2,60,330.58$ 3,73,027.80$ 4,75,479.82$ 5,68,618.02$ 5,68,618.02$
One-Time COSTS (75,000.00)$
Recurring Costs $0.00 (9,000.00)$ (9,000.00)$ (9,000.00)$ (9,000.00)$ (9,000.00)$
Discount Rate 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209
PV of Recurring Costs $0.00 (8,181.82)$ (7,438.02)$ (6,761.83)$ (6,147.12)$ (5,588.29)$
NPV of all COSTS (75,000.00)$ (83,181.82)$ (90,619.83)$ (97,381.67)$ (1,03,528.79)$ (1,09,117.08)$ (1,09,117.08)$
Overall NPV 4,59,500.93$
Overall ROI
4.2111
Figure 1: Cost Benefit Analysis of the Project
(Source: Created by Author)
2.3.4 Work Breakdown Structure
The work breakdown structure for the project is shown in the following table along with
the estimated schedule for each activity.
WBS Task Name Duration Start Finish Predecessors
0 Construction of New Lunch Canteen for Organisation
Employees 126 days Tue 06-08-19 Tue 28-01-20
1 Project Initiation 15 days Tue 06-08-19 Mon 26-08-19
1.1 Discussion with Board 2 days Tue 06-08-19 Wed 07-08-19
1.2 Discussion of the Problems 2 days Thu 08-08-19 Fri 09-08-19 2
1.3 Proposal of Solutions 2 days Mon 12-08-19 Tue 13-08-19 3
1.4 Agreement on a Particular Solution 1 day Wed 14-08-19 Wed 14-08-19 4
1.5 Feasibility Testing of the Proposed Solution 3 days Thu 15-08-19 Mon 19-08-19 5
1.6 Submission of Project Proposal 5 days Tue 20-08-19 Mon 26-08-19 6
1.7 Milestone 1: Approval of the Project 0 days Mon 26-08-19 Mon 26-08-19 7

6OPERATIONS AND PROJECT MANAGEMENT
2 Project Planning 19 days Tue 27-08-19 Fri 20-09-19
2.1 Formation of Project Team 2 days Tue 27-08-19 Wed 28-08-19 8
2.2 Determine Scope of the Project 2 days Thu 29-08-19 Fri 30-08-19 10
2.3 Determine Project Objectives 1 day Mon 02-09-19 Mon 02-09-19 11
2.4 Estimate Schedule of the Project 2 days Tue 03-09-19 Wed 04-09-19 12
2.5 Estimate Project Budget 2 days Thu 05-09-19 Fri 06-09-19 13
2.6 Specify Quality Standards 4 days Mon 09-09-19 Thu 12-09-19 14
2.7 Identify Risks Associated with Project 3 days Fri 13-09-19 Tue 17-09-19 15
2.8 Develop Risk Management Plan 3 days Wed 18-09-19 Fri 20-09-19 16
2.9 Milestone 2: Finalise Project Plan 0 days Fri 20-09-19 Fri 20-09-19 17
3 Project Execution 78 days Mon 23-09-19 Wed 08-01-20
3.1 Hire Construction Contractor 5 days Mon 23-09-19 Fri 27-09-19 18
3.2 Procure Materials 3 days Mon 30-09-19 Wed 02-10-19 20
3.3 Provide Property Space for Construction 2 days Thu 03-10-19 Fri 04-10-19 21
3.4 Construction of the Canteen 25 days Mon 07-10-19 Fri 08-11-19 22
3.5 Setting Up the Kitchen Area 15 days Mon 11-11-19 Fri 29-11-19 23
3.6 Setting Up the Dining Area 15 days Mon 02-12-19 Fri 20-12-19 24
3.7 Milestone 3: Handover to the Organisation 0 days Fri 20-12-19 Fri 20-12-19 25
3.8 Recruit Chef and Canteen Staff 10 days Mon 23-12-19 Fri 03-01-20 26
3.9 Specify Food Menu 3 days Mon 06-01-20 Wed 08-01-20 27
3.10 Milestone 4: Finalise the Operations of the Canteen 0 days Wed 08-01-20 Wed 08-01-20 28

7OPERATIONS AND PROJECT MANAGEMENT
4 Project Closing 14 days Thu 09-01-20 Tue 28-01-20
4.1 Submission of Project Documentation 5 days Thu 09-01-20 Wed 15-01-20 29
4.2 Review of the Project 3 days Thu 16-01-20 Mon 20-01-20 31
4.3 Appraisal of the Project 3 days Tue 21-01-20 Thu 23-01-20 32
4.4 Complete Residual and Pending Payments 2 days Fri 24-01-20 Mon 27-01-20 33
4.5 Stakeholder Sign Off 1 day Tue 28-01-20 Tue 28-01-20 34
4.6 Milestone 5: Final Closing of the Project 0 days Tue 28-01-20 Tue 28-01-20 35
2.4 Effectiveness of PLC in the Given Project
As shown in the work breakdown structure above, it is evident that the project follows the
four stages of project life cycle (PLC) along with regular activities and milestones. Although
strictly following the general PLC is not absolutely necessary, it is recommended for use as it
gives a structured approach to any project. The work breakdown structure shown is the evidence
that PLC is very much effective for the project as the project owners can approach it easily step
by step.
3. Conclusion
Finally, it can be concluded that organisation can proceed with this proposed project as
the projected cost benefit is positive and there is sufficient return on investment for the company.
Furthermore, the proposed project is in line with the company objective to use its CSR policy in
providing a healthy lifestyle option for the employees.

8OPERATIONS AND PROJECT MANAGEMENT
Bibliography
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Heagney, J., 2016. Fundamentals of project management. Amacom.
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 Wiley
& Sons.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Turner, R., 2016. Gower handbook of project management. Routledge.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Walker, A., 2015. Project management in construction. John Wiley & Sons.