Project C: New Product Development- A Project Management Report

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Project management
Project C: New Product Development

Table of Contents
Introduction......................................................................................................................................1
Project context.................................................................................................................................2
Rationale for proposed plan and choice of methods........................................................................3
Techniques.......................................................................................................................................4
Pestle analysis..............................................................................................................................4
Work breakdown structure (WBS)..............................................................................................6
Gantt chart...................................................................................................................................8
Risk analysis and risk management strategy...............................................................................9
RACI Matrix..............................................................................................................................11
Strategy for Stakeholder management.......................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Appendix........................................................................................................................................18
Pestle analysis............................................................................................................................18
Work breakdown structure........................................................................................................19
Gantt chart.................................................................................................................................20
Risk analysis..............................................................................................................................22
RACI matrix..............................................................................................................................22
Stakeholder management strategy.............................................................................................23

Introduction
Project management can be considered as a discipline way utilizing established policies,
procedures, and principles for guiding a project successfully for effective completion by
achieving the pre-determined goals and objectives on budget and on time. Project management
involves implementation of several stages and activities which is required management using
different tools and techniques of project management. The current report is projected to Erin
Soup for establishing market for premium and new range of soups. The demand for convenience
food is increasing along with rising disposable incomes that are supporting the growth in the
market canned soup (Varley, 2014. ). Canned soups are gaining popularities among the people
due to cupboard staple in kitchen during winters and emergencies. However, the raising concerns
regarding health among the younger generation along with difficult to open and harmful for
environment is some reason that are hampering the popularity of canned soup. Thus, new soup
product i.e. to launches organic canned soup is supporting in increasing sale and profit.
Currently the report will discuss about project context that provide brief market research to
understand various trends and challenges. The report also discusses about different project
management tools and techniques that can be applied effectively for successful project. In the
report, Pestle analysis is performed for understanding current project environment. Discussions
are made regarding Work breakdown structure and Gantt chart that is used for managing the
project and resources along with RACI matrix, Risk management, and stakeholder management.
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Project context
In the recent year it has been found that the demand for package and canned food that raised
mainly during winter season due to change in life style and habit. Thus, food manufacturing
industry can be considered as one of the most profitable area. Erin Soup presently is opting for
developing new range of premium canned soups for attracting the customers and for fulfilling
their demands. Considering the global market, the overall demand for can soup products is about
2.8% CAGR. It has been found that about 35% of the soup consumed is canned soup. The
overall market however in changing form 2015 when people prefer to buy instant but organic
soup during winter. For instance, average per month of an individual on soup products it is
determined to be $132 per head. The market mostly has canned soup with low nutritional value,
and with rise of health consciousness the customers are preferring only organic food that no
preservative and artificial ingredients (Stevenson et al 2007). The market lacks premium or
organic products and thus failing to attract customers.
However, market in future is supposed to get enhanced as people are focusing on organic as well
as instant soup at the time of winter. The project currently aims in development, design as well
as marketing a new soup product in the market in premium range as the scope of organic canned
soup is found to be high with low competition. Project currently has been designed for the
customer residing in London and nearby countries. Thus, main focus of the project is to develop
a new range of readymade canned soups that has high nutrient value.
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Rationale for proposed plan and choice of methods
The current project focuses of performing research regarding identifying the market potentials
for new range of premium and organic soup range. The project also intends to product
development for raising the sale and achieves profitability. The demand for season specific and
organic food is rising that is motivating organization involved with canned soup to develop and
design new products. The purpose of the present research project is to develop new soup range
that fit best for winter season. The project motivation is gained through proper market research.
The selection of topic is done considering past experiences and association with food
manufacturing firm (Remington, and Pollack,2007). This has also supported while performing
the research work on the chosen topic. On the other hand, the overall research project and
launching campaign for new product do not consider influences and changes of market.
Campaign supports in market research and proper understanding of the topic, all the data related
to campaign is collected using research methods. Campaign design along with development has
utilized different methods for meeting project reliability and accuracy. For instance, pestle
analysis is performed for understanding the present appropriateness of business organization as
well as the concept of the new product for achieving profitability. For a successful project, the
expected outcome or result must be attained considering all the capabilities and constraints. For
systematic project execution, the project manager prefers using tools like WBS and Gantt chart.
This supports in managing, organizing and controlling all the available resources for meeting
success factor like in budget, in- time, along with high quality.
During the execution phase, the project might come across different risks and issues due to
various change and uncertainty. Therefore, the project includes strategies for risk management
and planning. With the help of RACI matrix, all the role and responsibilities of project team is
decided. Lastly, using the stakeholder management strategy in the project it can be ensured that
skills and capabilities individuals involved with the project are effectively used through proper
integration and expectation of Stakeholders are considered as one of the prime responsibility of
project manager (Otto, 2003).
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Techniques
Pestle analysis
A PESTLE analysis can be referred as a tool or framework that is used for monitoring and
analysing various macro-environmental factors that impact performance of an organisation.
Some of the factors that are considered for effective project design as well as marketing are
stated below:
Political: Project currently has aptness in the market; consumers in east countries are mostly
vegetarian and prefer organic products. Currently the country has a stability of government, and
this stability is effective in supporting business organisation and product development. The
country has good political relationship among other countries and low trade barrier is helping the
organization to more customers (Meredith, and Mantel,2011).
Economic: The project is driving towards success due to changing lifestyle, increasing
dispensable income and increasing demand of organic food. The customers are drawn towards
high product quality irrespective of price. This indirectly is supporting the organisation in food
manufacturing to gain profit and overall sale. The newly developed product are designed
considering economic pricing and high availability. The sale and product pricing however is
influenced by the fluctuation of country’s economy.
Social: Currently the local market is aligned to canned food and soup; however the raising
consciousness regarding health has increased the demand for organic products. Social lives of the
customers are currently quite oriented to health and well being, and thus they are consistent in
accepting other social and cultural values. Attitude of the customers along with their purchasing
behaviour, demographic values and trends in society all are in favour of project for meeting the
required result (Meredith, and Mantel, 2006).
Technological: Technological advance tools and methods are supporting the organisation in
many ways. For example, online mode of selling the food product is effective in rising the
product demands and customer base. Technologies are also advancing for performing effective
market analysis. Along with that AI integration while offering customer services is effective in
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enhancing the trust among the customers with real time controls. The technologies are also
effective in improving overall production process and practices.
Environmental: The organic food products are in demands due to their availability and no use of
chemical fertilizers. The demand is high therefore the overall production is high. The base of the
soup is corn, tomato, and some other organic items which are not at all harmful for the
environment.
Legal: The taxation for the food products is comparatively low, and with easy registration
process along with legal accounting is also very effective in to achieving all the project values.
Newly developed product is quite easy to integrate with the legal aspects of the country.
Thus, current external factors mostly has positive impact upon the undertaken project, this as a
result is effective in achieving most suitable project outcomes when standards approaches are
applied for carrying out process of marketing and production (Kerzner, and Kerzner, 2017). For
a successful project, the environmental and legal aspects are effectively considered.
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Work breakdown structure (WBS)
For any organisation some of the few toughest jobs are considered to be new product
development and marketing for attracting customers. Thus, for effective product launching the
organisation implement project management tool called WBS that effectively provides a
systematic and hierarchical distribution of different activities. WBS supports in performing
different activities parallel for attaining high performance and quality (Kerzner, and Kerzner,
2017). The WBS or work breakdown structure is very effective and commonly used tool that
provide clearer insights a regarding an ongoing project and supports the project team and
stakeholders to understand the relationship and dependency of different project activities of a
project. The overall project work breakdown can be subdivided into four main sections:
Define: It is the initial project stage that provides proper discussion regarding the project and its
background to the stakeholders. And accordingly the project goals and objectives are formulated
so that other project activities can be performed to achieving them methodically. The team for
the project is offered with information regarding all the sub-activities within the project
including conceptualization, setting aims and objectives, scope clarification, determining
timeframe and documentation. In a project the main document that describes the entire project is
the Project charter.
Design: One of the important project activities includes focusing on resources planning and
skills toward the logical project framework for achieving the desired aims and objectives. Thus
design phase includes activities like interventions, time planning, and project cycle’s execution.
Designing of the project also involves determining the capabilities and constraints of project.
Thus, designing phase can be stated an establishing synchronising of various activities of new
product development and marketing for proper monitoring(Hultink, et al 1997). Designing in a
project is effective in providing logical frameworks or model for the undertaken product
supporting the management to overview final product and changes can be suggests accordingly
for further improvement.
Develop: Development activities are proposed in a project for creating the actual product
considering all the planning and project concepts. The develop phase involves activities like
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performing market research, analysis and interpretation of data and distribution of role and
responsibilities among all the available resources with a motive to standardize practices.
Development mainly focuses upon actual design of product and marketing with a main to
generate the desire project result within the estimated time, expertise and budget (Hoyer, et al
2010).
Deliver: After the project has been prepared, initialisation of the secondary task begins. For
instance, project manager of a certain project is responsible for developing project contracts and
the documents are then handed over to different stakeholders for ensuring project closures. This
phase also consists of various other activities like project validation and monitoring the project
result before closure, it ensures that project result will be advantageous for the organisation.
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Gantt chart
Gantt chart is considered as one of the most important activities that effective in establishing
relationship among various project activities. Using the Gantt chart the organisation can
effectively monitor the process of the project and the milestone of the project can be attained
attaining project quality and performance. Gantt chart is effective in managing all the available
resources and delegation of roles and responsibilities is defined in the project. The gantt chart
effectively communicate with the stakeholders of the project regarding project vision and
mission. Gantt chart developed for the project is supportive for the organization as well for
achieving the time optimization as well as cost-effectiveness.
Feature regarding activities predecessor are attained through which the network diagram for the
project has been developed accordingly. The project manager using the Gantt chart can
understand regarding the relation of the project activities and their dependency for attaining the
project outcome successfully. Network diagram can be referred as accurate mapping of various
project activities using a Gantt chart. The Gantt chart is also used by the project manager for
creating the critical path that uses various information for understanding all the project’s
potential issues and barriers related to overall time, scope and cost. Gantt chart provides
assistance to the project team for systematic project execution and for monitoring the project
outcomes to high product quality and performance.
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Risk analysis and risk management strategy
There are possibilities when the project activities of an undertaken project might tend to get
extended outside the determined scope, budget and time. Any project is also influenced by
external forces like unavailability of assets, skills and resources during the project execution
phase. Thus, the organisation must emphasis of risk analysis to understand and identify risk
before it becomes unstoppable. Risk in a project is effective in influencing the project values
(Harris, 2009). Example, with the help of risk registers, the project manager of the project can
prioritize various risk and severity as well as likelihood can be defined so that effective decision
are made.
In the current project, Risk analysis is opted to be performed considering the project uncertainty.
If the project completion is not as per the pre-determined budget, assets, time or other resources
then all lead to creating barrier to the project. For the current project of new product
development, the risk analysis process has focused mainly on: risk assessment and risk
management.
The process of risk assessment begins with identification of activities and available assets which
are prone to different risks. After determining the project assets or activities the next step in this
process is identification of critical level. Consequently, the process also involves determination
of threats associated with each project tasks and assets. There are possibilities when a risk in one
activities or process may lead to impact all other consequent activities. This ultimately may
impact the project outcome. Therefore for a successful project execution and completion all the
currently available countermeasures for all the possible risk and vulnerabilities must be identified
along with the level of risks. This will be very effective in determining effective solution for
controlling and managing the risks. After completion of the risk assessment process, the next
step is to propose as well as implement solution to the identified risks. The project manager of
the undertaken project is responsible for reviewing cost-benefit analysis for understanding
stability and sustainably of the current project.
The process of Risk management includes four stages, these stages are determined on the basis
of the type of risk and their occurrence impacting the overall project. For an instance, project
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manager of certain project is liable to avoiding various risk associated with the project for certain
time interval, if the risks can be considered to have no such impact upon the project outcome
rather it effectively is leading to influencing the quality. There are certain cases when the
organisation can transfer some risk to other resources for minimising the chances of loss
(Chapman, and Ward,1996). Conversely, it has been found that in most cases, the risk
acceptance is needed in a project for reducing the chances of occurrences further.
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