Project Proposal: Business for Specialized Machinery Parts - PMO201

This project proposal outlines the establishment of a specialized machinery parts business in the northern territory, adhering to the PRINCE2 methodology. The proposal aims to improve the organization's social responsibility profile while creating job opportunities. It includes a comprehensive analysis using SWOT and weighted scoring models, along with detailed cost estimations, risk assessments, and a defined project timeline of 223 days. The project's success will be measured by its completion within a $50,000 budget and its contribution to local job creation. The proposal emphasizes the importance of Corporate Social Responsibility (CSR), highlighting the benefits of increased brand recognition and potential profit generation, along with a detailed cost-benefit analysis. The project involves various phases including initiation, planning, and execution, with identified risks and mitigation strategies.

Running head: PROJECT PROPOSAL
Setting up business for selling Specialized Machinery parts
Name of the Student
Name of the University
Author’s Note

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PROJECT PROPOSAL
Executive summary
The paper focuses on setting up of a business that sells specialized machinery parts in norther
territory. It is found that the organization recently adopts PRINCE2 for managing project
therefore they want to raise their profile and become socially responsible and as a result they
undertake the project. The project that is undertaken not only helps in improving the brand of
the organization but also helps in creating job opportunities for the communities of norther
territory. It is found that the paper undertakes SWOT as well as weighted scoring model for
analyzing the project. Moreover, the project showcases the budget and time which is needed
for the project. Additionally, the risks which are linked in the project are mainly illusrated.

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PROJECT PROPOSAL
Table of Contents
1. Overview................................................................................................................................4
1.1 Purpose or objective of the proposal................................................................................4
1.2 Best way to measure the project success..........................................................................5
2. Expected benefits and Dis-benefits........................................................................................6
2.1 Context and analysis........................................................................................................6
2.2 Identification of the expected benefit and dis-benefits....................................................8
3. Project requirements...............................................................................................................8
3.1 Description of the requirement for carrying the project...................................................8
3.2 Possible assumption.........................................................................................................9
3.3 Constraints for the project..............................................................................................10
4. Costs.....................................................................................................................................10
4.1 Cost estimation...............................................................................................................10
4.2 Ways of cost estimation.................................................................................................11
5. Major risks...........................................................................................................................11
5.1 Identification of risk.......................................................................................................11
5.2 Risk management strategies...........................................................................................12
6. Timescale.............................................................................................................................13
6.1 Time-period required for the project..............................................................................13
6.2 Major milestones............................................................................................................16
7. Conclusion............................................................................................................................16
Bibliography.............................................................................................................................17

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PROJECT PROPOSAL
1. Overview
1.1 Purpose or objective of the proposal
Identification of the problem
The paper focuses on the project that sets up a business for selling specialized
machinery parts in northern territory. It is found that the organization has recently introduced
the methodology of PRINCE2 for managing different types of projects. As several policies as
well as templates are yet to developed and therefore the employer generally wants to improve
their profile by being socially responsible and has mainly decided to allocate a project within
$50,000 budget.
Project scope
In scope
 Undertaking market research before setting up the business
 Selecting proper structures of the business
 Picking as well as registering the business name
 Creating places for storing specialized machinery for selling
 Getting permission as well as licence
 Building accounting system
 Promoting the entire business

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PROJECT PROPOSAL
 Out scope
 The information about the suppliers of the machinery parts are not included
 The information about the construction of the business area are excluded from this
project
Explanation of the methodology
The PRINCE2 methodology is mainly used for setting up a business that sells
Specialized Machinery parts. This methodology is identified to be suitable for the project
because with the help of this specific methodology, the entire project is divided into a number
of phases that further makes the project easy to manage. In addition to this, it helps in
improving communication within the project team and provides a greater control on the plan
by undertaking reviews regularly (Babatunde, Perera & Zhou, 2016).
On the other hand, it is found that the agile PM methodology can also be used in this
project but agile methodology is not selected because as with the utilization of this specific
methodology, proper planning of the resources are not possible (Patwardhan et al., 2016).
Additionally, it is quite difficult to measure the progress of the project.
1.2 Best way to measure the project success
The best ways with which the entire sucess of the undertaken project can be
successfully measured are mainly illustrated below:
Getting objectives of the project: If the entire project gets finished within 1-year
time by utilizing budget of around $50,000 then the project will be considered successful.
Increase job opportunity for the people of northern territory: If the business of
selling specialized machinery parts create job opportunities for the local people of northern
territory then the project is considered to be successful.

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PROJECT PROPOSAL
2. Expected benefits and Dis-benefits
2.1 Context and analysis
Explanation about the importance of CSR
Corporate social responsibility (CSR) is one of the self-regulating models that helps
the organization for becoming socially responsible. The organization wants to become
socially responsible for getting better brand recognition as well as for creating positive brand
reputation (Badewi, 2016). This will be further helpful in achieving proper advantage in the
entire market. In addition to this, the organization wants to raise its profile for undertaking a
greater number of projects successfully and for enhancing the yearly revenue. For raising the
profile of the organization, the organization undertakes a project in which they will set up a
business that sells specialized machinery parts in the market. The business that is set not only
helps in earning profit but it will be beneficial for the local people of norther territory as their
job opportunity will get increased.
SWOT analysis
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis that is mainly
found as the important framework that is mainly used in order to successfully evaluate proper
competitive position of the entire organization for achieving success. (Bohari, Hin & Fuad,
2017). Additionally, the SWOT analysis that is mainly used in the project helps in assessing
the external and the various internal factors.
Strengths
 The business will be helpful in
enhancing the revenue of the
organization
Weaknesses
 Lacks the resources that is required
for growing
 Fixed amount of money can be

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PROJECT PROPOSAL
 Helps in improving profile of the
organization.
invested on the project
Opportunities
 Helps in earning profit
 Increases job opportunities for the
local people
Threats
 Other competitors can get into the
market
Analysis on the weighted scoring model
Weighted scoring model is one of the frameworks that is mainly designed for
deciding how to prioritize different features as well as initiative on the roadmap of the project
(Bohari, Hin & Fuad, 2017). This particular model is mainly used for measuring the success
of the project. In order to successfully conduct the weighted score analysis, another project is
selected as alternative and that is setting up nuts and bolts manufacturing business. After
analyzing both the project with the help of weighted scoring model, it will be easy to get the
success criteria of the project.
Criteria Weight Score for selling
specialized
machinery
Score for nuts and
bolts
manufacturing
business
Risk 20% 85 80
Success 20% 90 80

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PROJECT PROPOSAL
Accomplishment of
objectives
20% 80 90
Rising job
opportunities
20% 90 95
Difficulty 20% 45 20
Weighted score 78 58.6
Reasons for developing the project idea
It is found that the project idea of selling specialized machinery parts is mainly
developed as the project does not require much fund and can be set up by using expenditure
of around $50,000 and additionally the project will beneficial for the local people of norther
community as it will enhance job opportunities for them.
2.2 Identification of the expected benefit and dis-benefits
Cost-benefit analysis
Project Cost-Benefit Analysis
Analysis Variables:
Discount Rate Used 10.00%
Annual Benefits 2,00,000.00$
Annual Operational Costs 20,200.00$
One-Time Development Cost 6,09,040.00$
Year of Project
0 1 2 3 4 5 TOTALS
Economic Benefit $0.00 2,00,000.00$ 2,00,000.00$ 2,00,000.00$ 2,00,000.00$ 2,00,000.00$
Discount Rate 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209
PV of Benefits $0.00 $1,81,818.18 $1,65,289.26 $1,50,262.96 $1,36,602.69 $1,24,184.26
NPV of all BENEFITS $0.00 1,81,818.18$ 3,47,107.44$ 4,97,370.40$ 6,33,973.09$ 7,58,157.35$ 7,58,157.35$
One-Time COSTS (6,09,040.00)$
Recurring Costs $0.00 (20,200.00)$ (20,200.00)$ (20,200.00)$ (20,200.00)$ (20,200.00)$
Discount Rate 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209
PV of Recurring Costs $0.00 (18,363.64)$ (16,694.21)$ (15,176.56)$ (13,796.87)$ (12,542.61)$
NPV of all COSTS (6,09,040.00)$ (6,27,403.64)$ (6,44,097.85)$ (6,59,274.41)$ (6,73,071.28)$ (6,85,613.89)$ (6,85,613.89)$
Overall NPV 72,543.46$
Overall ROI
0.1058
Figure 1: Cost-benefit analysis
(Source: Created by Author)

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PROJECT PROPOSAL
It is found that the undertaken project that sets up a business for selling specialized
machinery parts in northern territory has a number of benefits. The business will be helpful in
improving the profile of the organization and will be helpful in increasing brand recognition.
In addition to this, the business will be helpful in increasing job opportunities for the local
people of norther territory that is considered as one of the major benefits of the project.
Moreover, as there are no competitors in norther territory of this business, the business will
earn huge amount of profit.
3. Project requirements
3.1 Description of the requirement for carrying the project
The different types of requirements which are mainly required in order to set up the
business that sells specialized business are listed below:
Financial resources: It is found that budget of around $50,000 is mainly required in
order to successfully setting up the business for selling the specialized machinery parts.
Human resources: The human resources who are mainly engaged within the entire
project are mainly listed below:
 Business analyst
 Project manager
 Project planner
 Financial manager
 Resource manager
 Quality manager
 Risk analyst
 Mechanical engineer

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PROJECT PROPOSAL
 Workers
 Accounts department
 Marketing head
Additional resources: It is found that additional resource like license, proper place as
well as other types of hardware and software for setting up the business successfully.
3.2 Possible assumption
The assumptions which are made are listed below:
 As per the assumption, the project will create a lot of job opportunities for the
northern territory community
 The project manager assumes that the entire project will help the organization in
getting brand recognition which further improves their profile in the market.
3.3 Constraints for the project
Time: The project is time constraint and therefore the business must be set within 1-
year time otherwise the project will face delay and which will be quite difficult to manage.
Cost: As fixed amount of around $50,000 is provided for the project therefore the
financial department needs for finishing the project successfully.

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PROJECT PROPOSAL
4. Costs
4.1 Cost estimation
Figure 2: Cost estimation
(Source: Created by Author)

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PROJECT PROPOSAL
4.2 Ways of cost estimation
It is found that used for estimating the project budge that further sets a business for
selling specialized machinery; bottom up estimation method is mainly utilized. It is found
that bottom up estimation is one of the most accurate approach that is utilized for the cost for
the project (De Carvalho et al., 2015).With the help of this method higher level of project
team commitment can be created while estimating the cost. It is identified that three step
procedure is mainly utilized for estimating the budget of the project. In the first step, detailed
work package for the project is developed with the help of the WBS that include major
deliverable as well as detailed scope of the project. In the next step, total cost that is mainly
required for executing the project is assumed.
5. Major risks
5.1 Identification of risk
Risk Description Likelihood Severity
Schedule slippage Slippage of the
project can cause
delay in finishing the
project.
Likely High
Lack of market
analysis
Improper analysis of
market does not
provide proper idea
for project set up.
Probable High
Inexperienced staffs The project cannot be
managed
successfully if the
Likely Medium