PRMA6049: Project and Risk Management Report - Adidas Trainers

This report presents a project and risk management plan for Adidas, focusing on the implementation of a 'create your own trainers' service both online and in-store. The rationale highlights the strategic importance of customized products for Adidas's brand and market growth. The report details SMART objectives, outlining specific, measurable, attainable, realistic, and timely goals. It includes a comprehensive project procurement management plan, covering procurement statements of work, vendor deliverables, payment terms, supplier duties, and selection criteria. The report also addresses project scope management, elaborating on measures to maintain the agreed-upon scope baseline and defining key performance indicators within a balanced scorecard framework. Finally, the report outlines key deliverables of the handover phase, providing a thorough analysis of the project's various aspects and its strategic alignment with Adidas's business objectives.

Running head: PROJECT MANAGEMENT
Project and Risk Management
Name of the Student:
Name of the University:

1PROJECT MANAGEMENT
Table of Contents
Section 1:.........................................................................................................................................2
1. Rationale and SMART objectives...........................................................................................2
Section 4:.........................................................................................................................................4
4. Project procurement management plan...................................................................................4
4.0 Introduction........................................................................................................................4
4.1 Procurement statement of work.........................................................................................5
4.2 Delivery from the vendor during and at end of the services they will perform.................7
4.3 Determine payment terms..................................................................................................8
4.4 List of duties expected from selected suppliers.................................................................8
4.5 Develop the selection criteria............................................................................................9
4.6 Identify potential suppliers and evaluate defined selection criteria.................................10
4.7 Ensure about decisions included project risks, enterprise environmental factors and
organizational assets..............................................................................................................10
Section 6: Project scope management plan including post implementation review......................11
6.1 Elaborate measures and mechanisms to ensure that the project remains in agreed scope
baseline......................................................................................................................................11
6.2 Determine key performance indicators to measure against the scope baseline...................12
6.3 KPI in balance scorecard framework...................................................................................13
6.4 Key deliverables of handover phase....................................................................................17

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References......................................................................................................................................20
Section 1:
1. Rationale and SMART objectives
The purpose of this project plan is to deliver online service as well as in-store pods for
the customers for designing the trainers and personalized trainers. The rationale behind selecting
this project plan topic is to provide “create your own trainers” service online as well as in-store.
The mission of Adidas is to lead sports brands in the world; therefore they come with
implementation of customized trainers for the shoe products. In order to direct the human
behavior as well as increase in efforts, the project goals are required to be more specific based on
the project plan. The strong brands of Adidas, premium products, global presence leads to
commitment towards innovation as well as customers can make it different from their
competitors and offer solid platform towards future growth. The areas in Adidas brands which
are identified as key to the sustainable growth including as:
 Establishment of Adidas as leading fitness as well as training brands
 Gaining of sales and market share in Adidas sport performance division
 Expanding of sport style of Adidas in faster fashion businesses
 Leading the sports industry into field of the customization plus interactivity
In order to increase its effort, SMART objectives set goals which are specific,
measurable, attainable, realistic along with timely. Based on the SMART objectives, Adidas

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should meet with following market and performance objectives by customization of trainers to
provide “create your own trainers” service online in addition to in-store.
Objectives Details of the SMART objectives
S- Specific  Selling of high quality sports products in online and in-store to take
advantage of effect of customized trainers
 Performing market research to find out what colors are in trends
 Gaining of competitive advantage of Adidas by offering of services
that the competitors are not provided
M- Measurable  By online service and in-store pods, Adidas achieves a return of 20%
on the capital by the month of August 2019
 To gain a market share of 25% for the sport shoes by February, 2020
 Selling of 35% of high quality of sports shoes as compared to last
year
 Raising the online service of Adidas and in-store by £5 million
A- Attainable  Increasing 200% of the selling of shoes of Adidas
 Increasing awareness among the customers as they can able to
customize the trainers
R- Realistic  Increase in consumption generated by customization of trainers:
shoe colour, logo colour and size, laces colour
T- Timed specific  Production of customized shoes by April, 2020

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Adidas decides to expand the market position by creating of online services and in-store
pods so that they become industry’s top products. The company strives to build higher brand
equity so that they can create an opportunity to sell their products and increase the revenue. The
customized products are in demand; therefore the company can create interest for the customers.
A proper market research is done so that the objectives are meeting on timely basis.
Section 4:
4. Project procurement management plan
4.0 Introduction
Fleming (2019) stated that the project procurement management plan is contained
processes required to purchase and acquire products and services required from outside of the
project team. The organization, Adidas will be either buyer or seller of products as well as
services. The plan included the list of the items which are procured and described what the
vendors are to be delivered during and at end of the services. The procurement payment terms
are also described which decides the terms of payment decides for the payment of goods and
services. When the supplier received the order, then payment terms and conditions apply to the
received invoices. The list of the suppliers and their duties are also summarized in the plan.
Selection criteria is provided for each suppliers based on which they are selected. The suppliers
take decisions regarding the project risks, environmental factors and organizational assets before
implementing this plan for Adidas project plan.
Project Title The project is for Adidas to provide a “create your own trainers”
service online and in-store

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Project Team Members Customer Service Manager
Sales Director
Purchasing Department Purchasing department contract #1
Contracts department contract #1
Project start date 1st March, 2019
The project manager provides and manages entire work with the
project team members to identify items which are required to
procure for successful project completion.
Process The project management office will review the list of procurement
items prior to submit it to contracts as well as the purchasing
department.
The purchasing and contract department would review the items,
determine advantages to buy the items, start selection of vendor and
purchase and contract processes.
4.1 Procurement statement of work
The project manager ensures that the plan is facilitated successful completion of the
project. They work with the project team, contracts and purchasing department to handle the
procurement activities (Papke-Shields and Boyer-Wright 2017). Following are the list of items
which are procured for submission of the contracts along with purchasing department and
develop the procurement statement of work such as:
List of items How to get them When to get
them
Procured by How much of
them needed to

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complete the
project
Planning
Procuring from a
Single Source
By 15th January,
2019
Sales Person 100%
Budgeting
Procuring from a
Single Source
By end of
January 2019
Project
Manager
80%
Conduct market
research
Fixed price
contract
By 2nd February,
2019
Project
Sponsor
80%
Report findings
Procuring from a
Single Source
By 23rd
February, 2019
Sales Person 100%
Decision making
Procuring from a
Single Source
By end week of
February, 2019
Technicians 100%
Capital
Procuring from a
Single Source
By first week of
March, 2019
Technicians 70%
Materials
Procuring from a
Single Source
By Mid of
March, 2019
Technicians 65%
Software
technician
Cost reimbursable
contract
By 16th march,
2019
Technicians 70%
Recruit technicians
Procuring from a
Single Source
BY 27th March,
2019
Sales Person 70%
Fit the new dyes in
machines
Time and
materials contract
By mid of April,
2019
Project
Manager
65%
Software update
Procuring from a
Single Source
By last week of
April, 2019
Project
Manager
70%

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Pods installation
Procuring from a
Single Source
By 17th May,
2019
Project
Sponsor
80%
Test run
Procuring from a
Single Source
By 24th June,
2019
Sales Person 80%
Orders collection
Procuring from a
Single Source
By 29th June,
2019
Technicians 100%
Manufacturing
Procuring from a
Single Source
By 17th July,
2019
Technicians 100%
Quality control
Procuring from a
Single Source
By 12th October,
2019
Technicians 50%
Packaging
Procuring from a
Single Source
By 18th
December, 2019
Technicians 60%
Delivery
Procuring from a
Single Source
By 29th
December, 2019
Project
Manager
70%
4.2 Delivery from the vendor during and at end of the services they will perform
1. Once there is signing of contract, the vendor is bound to complete task in agreed amount
of money as well as time. This contract can help to know the parties scope of work along
with total cost of project tasks before starting of work. This contract is suitable to control
project cost (Khemiri et al. 2017).
2. The vendor provides with the purchase order states goods and services, prices, delivery
date required to the project clients.

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4.3 Determine payment terms
Payment in advance: The term payment in advance refers to the payment which is made
before the invoice date of supplier as obligation to the company occurs after the purchase of
goods as well as services.
Letter of credit: It is the formal which is guaranteed by the bank for the payments to
perform to company based on particular financial situations.
Open accounts: It is the process for the seller shipping of goods with the documents
sends to the buyer on the agreement to perform payments at later date based on the invoice of
seller.
4.4 List of duties expected from selected suppliers
List of suppliers Duties
Business advisors  Analyze the business plan as well as financial statements
 Marketing and funding opportunities
 Evaluate sales and marketing plans (Heagney 2016).
Trade press  Keep the industry informed about new developments
Supply chain manager  Overseeing as well as managing the supply chain
 Analyze the logistics strategies and operations for maximizing
the process efficiency plus business productivity (Hugos
2018).
Procurement team  Review the specifications and work statement

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 Review requirements of products, materials and services
 Determine methods of the awarding contracts
Supply quality
department
 Making purchased products for meeting with company’s
needs (Meyr, Wagner and Rohde 2015).
 Audit to assess processes and capabilities of the suppliers
 Following approved practices and meet with regulatory
requirements
 Monitor the quality performance (Schwalbe 2015).
 Track the product defects, and delivery failures
4.5 Develop the selection criteria
The contract review board uses supplier selection criteria to determine if the selected
suppliers are being selected properly. The main common supplier section criteria are as follows:
 Capability of the project vendor to offer the items which are required at the delivery date.
 Quality of the supplier those are procured products and items
 Cost analysis of procured items (De Araújo et al. 2017)
 Past performance of the suppliers in the project plan
 Comparison of the outsourced costs with respect to in-sourcing
The decisions regarding procurement of the items is to be performed based on the selected
supplier selection criteria and resources availability.

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4.6 Identify potential suppliers and evaluate defined selection criteria
Potential suppliers Defined selection criteria
Business advisors The business advisors are provided enterprise applications like
enterprise resource planning software. The selection criterion is their
past performance of them in the project plan.
Trade press The selection criteria is cost analysis of the procured items as the
suppliers are providing information related to items to the business
organization.
Supply chain manager The suppliers are provided services like online and in-store pods
installation. The selection criteria is capability of the project vendor
to offer the items which are required at the delivery date
Procurement team The procurement team are provided software like word processors
and email programs. The selection criteria is comparison of the
outsourced costs with respect to in-sourcing
Supply quality
department
The supplier criterion is quality of them to check quality of procured
items.
4.7 Ensure about decisions included project risks, enterprise environmental factors and
organizational assets
The vendors are selected based on the project plan to provide online and in-store services
to the project client. The project team takes decisions regarding the quality risk which is
mitigated on time. The products as well as services are specified in contract and there is
maintaining proper levels of quality of procured items. It is responsibility of project manager is

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to manage the vendors (Meyr, Wagner and Rohde 2015). Based on scope of this project work is
to deliver an online service and in-store pods for customers to design their trainers, and the
personalised trainers. The key stakeholders those are involved in the project plan are project
team members, purchasing and contract department, existing and new customers and the staff
(sales persons, managers, machine operators, and drivers).
The decisions into the vendor management processes are identified ownership of the
project which is included, but it is not limited to:
 Ensure that there is timely delivery of the products as well as procured items
 Reviewing quality of test findings to test the online and in-store pod services (Khemiri et
al. 2017).
 Ensure about the product compliance with related to product specifications and
organizational assets
 Modify the project requirements so that it does not affect the environmental factors
Section 6: Project scope management plan including post implementation
review
6.1 Elaborate measures and mechanisms to ensure that the project remains in
agreed scope baseline
The scope of this project is for Adidas based on providing services where the customers
are able to customize trainers by choosing the colours of trainers, laces, sole and logo. The
deliverables for meeting the project scope are online service and in-store pods for the customers