Business Case Proposal for Big Ideas Ltd - Statistics Project Example

Project Management Assignment - 2 Business Case Proposal for Big Ideas Limited Background Project Management Limited (PML) has received a consultancy project offer from Big Ideas Limited (BIL) for conducting a one-day Conference on Project Management. In the light of a preliminary meeting held between Mr. Smart of BIL and PML management team, PML has agreed to undertake a feasibility study of the proposed project and to present a business case that includes the project plan, costing, management and logistics. The project is currently at the feasibility appraisal stage. Mr. Smart has also sought specific advice relating to the future phases and activities of the project from the planning stage to the implementation phase. The Conference is tentatively scheduled to take place on 15 December 2005. According to the initial agreement, BIL would pay PML a fixed consultancy fee of UKP10, 000. Project Name: Ideas Conference Type of Project: Conducting a Conference on 'Project Management' No. of delegates: 200 - 250 No. of days: One day Deadline: 15 Dec 2005 (for submission of feasibility report) Target Date: 22 Feb 2006 (for the Conference) General Assumptions The level of participants is middle level managers with 2-3 years of work experience. It is assumed that they have basic knowledge concerning project management in general acquired in course of their management education prior to joining their jobs. Each participant will be charged @ UKP200 for the whole programme, inclusive of registration fees, and working luncheon at the venue. The programme is non-residential. Outstation participants will arrange their own board and lodging. All participants will make their own transportation arrangements to reach the venue and return. The capacity is assumed at the upper end (250 participants). Faculty and presenters will include experts from outstation, who will need board and lodging for a day, apart from their professional fees. Both PML and BIL are London-based. A suitable medium to high-end star hotel with conference and teleconference facilities will be identified as the venue for the programme. This could preferably be based in London, or the outskirts, depending upon the cost factor. Project Objectives To plan, prepare, and conduct the conference in a professional and cost-effective manner. To achieve significant returns to the client, BIL To attain a breakeven performance financially in a worst-case scenario. Programme Contents As the participants already have a basic knowledge of the subject matter, and a couple of years of experience, the conference will be held in a more interactive environment. The sessions will include the following: FORENOON SESSION (0900 - 1315, with Tea break: 1130 - 1145) Inaugural - 30 minutes Presentation: "Effective Project Management - the Key to Organisational Success in the New Millennium" - by expert faculty - 60 min Brainstorming/Experience Sharing Session: Team-based (5 teams of 50 each): "Success Stories and Fiascos in Project Management" - 60 min Analysis and Presentations - by Team Leaders - 60 min Summing up and Lessons Learnt - by Program Anchor (management expert) - 30 min LUNCH: 1315 - 1400 POST-LUNCH SESSION (1400 - 1700) Presentation: "The Power of Technology and Innovation in Successful Project Management" - by expert faculty - 60 min Presentation: Case Study of a successful Project Management - by expert faculty - 60 min Ask the Expert: Teleconferencing with 3 management experts from Oxford, Harvard, and Wharton Business School (participants can query the experts) - 30 min Appraisal and Feedback: 30 min Participant Profile Ideally the participants should belong to one organisation for more effective analysis and project management solutions. However, in case such a large intake from a single client organisation is not feasible, a maximum of 5 organisations from the same or similar business environment (such as IT or ICT) will be preferred. PML will take up a marketing campaign to firm up the participant list well in advance. The campaign will bank more on exposure to online marketing, combined with direct contacts with potential beneficiary organisations. Speakers and Presenters Expert and renowned speakers from public/private sector, and international management schools will be identified for the programme. They will need to provided complimentary board and lodging apart from professional fees, which is approximately estimated at UKP500 each for a session. In addition, travel costs of outstation faculty will also need to be reimbursed. Project Requirements Enrol 250 participants. Identify and book a suitable hotel with conference facilities for conference, teleconference, and lunch/tea arrangements. A welcome pack for each participant on registration (elegant bag/briefcase with brochure, welcome letter, programme schedule, pen, pad, and headphones, etc.) Handbook and handouts of presenters to be given to participants Lunch buffets and tea/refreshments for faculty and participants Board and lodging for outstation expert speakers Video/audio recording facilities Media presence for future marketing needs Financial Appraisal We propose a programme fee of UKP200 per participant. For 250 participants, the earnings work out to UKP50, 000. Accordingly, the rough cost estimates are shown below: Cost Estimates: (In British Pounds) Item Unit cost Number Total Welcome pack 20 250 5,000 Lunch and refreshments 30 250 7,500 Handouts/stationery 10 250 2,500 Professional fees to faculty 500 7 3,500 Travel cost of outstation faculty - 3 6,250 Board/lodging for outstation faculty 100 3 300 Marketing campaign - - 1,700 Conference Hall 2,000 1 2,000 Teleconferencing charges 1,000 - 1,000 Video/audio recording 500 - 500 Consultancy fee to PML 10,000 - 10,000 Incidental expenses 1,000 - 1,000 TOTAL - - 41,250 The Margins: If all goes well according to the project plan, as we definitely hope it will, the surplus of UKP8, 750 would be the return from the project proceedings to BIL. Risk Assessment In a worst case scenario, assuming that the participation falls short by up to 50 hands (due to unforeseen circumstances) pegging the final attendance at 200, the revenues would fall by UKP10, 000. However, in this eventuality, the expenditure towards lunch/refreshments, and programme materials could be excluded to offset the revenue loss with a matching reduction in costs. It needs to be noted that once the list of participants is finalised, such an eventuality is highly unlikely. The programme fee would be collected in advance at the time of registration and acceptance of the programme by the participants. Payments through credit cards, Pay Pal, etc. could be offered. Refunds would be tailored @ of 50% if order is cancelled prior to seven days of the conference (the time required by the hotel to amend bookings for lunch and refreshments). In case of late dropouts, the fee would be non-refundable. Even in such a worst-case scenario, it would be possible to breakeven without loss or gain. Venue Failure In the normal course, the venue once confirmed will be available for sure. However, one needs to consider unforeseen eventualities such as terror attacks, or natural calamities that suddenly make it impossible to conduct the conference at the venue. A suitable agreement needs to be made with the Hotel management to cancel bookings of conference hall and lunch/refreshments as and when this happens. It needs to be notified to the participants that if the programme stands cancelled due to such circumstances beyond our control, the programme fee may be refunded to the tune of 50% only. We will also explore the possibility of any insuring agency that may cover such events. Speaker Fails to Turn Up In a rare occurrence, a speaker may fail to turn up due to unforeseen circumstances, such as illness, travel disconnect, etc. A backup speaker from PML would step in to fill the gap in such event. The Project Team The Project Team of PML would include: Chief Project Manager (CPM) and Team Leader Manager (Administration and Operations) Manager (Purchase and Supplies) Administrative Associate The team structure would be as follows: The Control Mechanism The Chief Project Manager will review the progress with the team members every week. A fortnightly meeting with the Team will be conducted by Mr. Gomes Holbrook, Vice President (Operations), PML for a regular appraisal of the progress once the project is confirmed by BIL. Mr. Smart, Coordinator from BIL will be invited to attend these meetings at his convenience to tie up any loose ends. On conclusion of the conference, PML will compile and analyse the feedback, and send a report to BIL. Schedule of Operations The tentative schedule of activity is proposed below: SCHEDULE OF OPERATIONS Code Date Activity Responsibility A 15 Dec 2005 Submit Feasibility Report PML B 22 Dec 2005 Confirm project award BIL C 23 Dec 2005 Launch marketing campaign PML Start contacting expert speakers PML D 07 Jan 2006 Finalise list of participants PML Book conference hall and hotel PML E 09 Jan 2006 Review Meeting of Project Team PML Send out Programme invitation and instructions to participants PML F 09-31 Jan 2006 Prepare welcome packs, brochures, and other conference materials PML 21 Feb 2006 Oversee arrival of outstation faculty PML G 22 Feb 2006 Conference PML and BIL 25 Feb 2006 Programme Report and invoice sent PML 28 Feb 2006 Response and settlement of payments BIL An indicative Gantt chart showing the scheduling of key activities that will contribute to make the event a success is shown below: Summary Based on the first meeting we had with Mr. Smart of BIL, the subsequent project appraisal meeting of PML Project Team, and the feasibility studies undertaken since then, we are confident that the proposed project can succeed as planned. The Management of PML is therefore pleased to commend this business case report for endorsement by BIL for initiating further action in the matter. * * * * '' Read More