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Assignment #2: Project Scope BUS 517 – Project Management 8/7/2012 1 1-Define the scope of the project in terms of the following: 1.1 Outcomes: 1-To meet market demand for internet service. 2-Establish small business with law cost and high profit. 3-Transformining internet café into learning centers and facilitating access to information Technology in Arlington area. 4- Create IT life style in Arlington area. 5- Reach at least 22 customers per a day. 1.2 Objectives: Jave NET Café objectives for the first year of operation include: 1- Educating the community on what the Internet has to offer. 1-The creation of an exclusive, stylish, innovative environment that will distinguish JavaNet Cafe from other coffee shops. 2- The creation of a comfortable and casual environment that will bring people with different Interests and backgrounds together for socialization. 3- High-quality coffee and bakeries at a reasonable price. 4- Free access to online services. 1.3 Deliverables: 1-Renting / leasing construction of facility. 2-Design of comfortable internet coffee with 11 personalizes booths. 3- Installation of high speed internet with high and safety security system. B- Key functionality required within the new system: All system should have the client for program running. The server should identify individual 2 System by their name. Input: User name and password, Account number Output: Access to internet, Available balance, account details. C- Primary stakeholders 1-The business owner 2-Customers 3-Students 4-Business people 5-Middle Income Groups 5-The bank 6-Employees 7-Suppliers’ 8-community 2-Assess the current situation and future situation that will be most impacted by the project. Current situation: 1-The major current situation impacted for Java Net project which is, if the project could be done on time or not. 2- If there are a maximum of 2 internet cafe in my target area. This all depend on the size of the market, but even if the size of the market is large I will not invest in a Java Net -cafe if there are 3 or more competitors in that area. 3 3- If there is an association in the area that has the legal powers to impose/set the minimum service price. 4- Do I can somehow make an agreement with my local government, “Arlington County” that only my internet cafe is allowed to be given a business permit? I’m not sure if this is possible with an internet cafe. But I know of some businesses like a cable company in our area in which that company is the only one allowed to operate in our town… and no other cable company are able to setup their business. The major future situation impacted JavaNet project: Competition: This may be the number one factor that you must consider. Even if I have the skill, the capital, best service, positive attitude, good management, good location, passion for the business… even if i have all of these you will not survive if you will decide to ignore the law of supply and demand. We are in a free market and the “Law of Supply and Demand” will certainly apply. Arlington area is very active area has a lot of restaurants, coffees such as Star Bucks, Pannera bread, customers can use the wireless internet for free, and also those kind of businesses have their own customers they been coming for years . Growing domestic connection to the internet. Around 80% of households in the in Arlington VA now have internet access and the cost of broadband has fallen significantly. Some domestic broadband packages also include free USA-wide WiFi access an increasing amount of people having free access to the internet through work. Widespread internet connectivity through devices like mobile phones, PDAs, tablets, Notebooks and laptops which mean that more people can go online when they are away from their home or office. 3- Identify what you are expecting to happen as a result of the completion of your project 4 My expectations when Java Net project competed are: 1- Clean place with nice decoration. 2- both for each customer with full privacy and security 3- Clean bathrooms, with enough stalls. 3- Great coffee. They don't make everything, but what they do make is top drawer. Not that Also, good snacks and cakes, which they contract, order, on their own receipts, from a local bakery. 4- -Stable, fast WiFi Internet access, on a high speed, low latency business SDSL line 5- Street and nearby off street parking, with good lighting and public visibility. 6- A friendly, competent staff that welcomes newcomers and is effective in marketing the constant schedule of evening events and activities they encourage and host. Game nights, movie nights, music nights, and the occasional lecture or art installation are all part of the brew. The layout is such that newcomers walk right by or right through whatever musical performances are happening in the downstairs entrance space, and while this doesn't sound optimal for performers, it actually is quite nice for everyone, due to sound control and vertical partitioning of main coffeehouse floor. It's a pretty effective method for musicians and speakers to pickup an audience from street passerby, and so events usually get good appreciation, and word of mouth. 7- Public printing/faxing access is a great idea in a rural area not served by Java NET. Batteries, maps, t-shirts, caps and tourist wares would be good, profitable items to stock 8- 75% of Java Net café customers will be between ages 16-40 and 25% from 40-60. 9- Java Net will be very popular with the neighborhood after 1 year. 5 10- I expect also Java Net will not make too much profit in the first 6 months, but after one Year Java Net will become number one internet café in Arlington area based on number Of customers, customer service and also quality of service we will offer. 4- Document three (3) assumptions associated with the project. Table 1-1 Financial Assumptions Project life 15 months Equity 100% Discount rate 20% Table 1-2 Production Assumptions server 1 client 11 No of computers 11 Total Capacity per day(Hours) 132 Maximum Capacity Per Year 47520 Capacity utilization (Year 1) % 70% Capacity utilization (Year 1) hours 33264 Capacity Growth Rate per Year % 5% Maximum Capacity Composing/pages/Day 100 first year capacity 20% Increase In composing capacity First year capacity Web Developing\web\year 5% 5 6 increase in W.D per year 2 Table 1-3 Operating Assumptions Shift per day 1 Hours operational per shift 12 Days operational per month 30 Days operational per year 360 Pre operation period (month) 1 Table 1-4 Economy related Assumptions Electricity charges per month / year one 25,212 Electricity growth rate 10% Wages growth rates 10% Equipments maintenance rate 2% 5-Explain the uses for the project checklist and how it should be applied to this and Future projects. Topics Questions Strategy/alignment What specific organization strategy does this Java Net café project align with? Driver What business problem does the Java Net café project solve? Success metrics How we will measure success? sponsorship Who is the Java Net café project sponsor? 7 risk What is the impact of not doing the Java Net café project? risk Where does the proposed project fit in our risk profile? Benefits, value What the value of the project for the stakeholders? Benefits, value When will the Java Net project show results? Objectives What are the Java Net project objectives? Business culture Is the Java Net allowing different cultures to come in? Recourses Will internal recourses be available for Java Net project? Approach Will java Net building will be rental or buy? Schedule How long Java Net project will take? Schedule Is the timeline for JavaNet project realistic? Training Will staff training will be required to manage Java Net project? Finance/portfolio What is the estimate cost for JavaNet project? portfolio Is this a new initiative or part of an existing initiative? technology Is the technology available for Java Net project or new? This check list will help me look at my construction project's scope after each stage of my project while taking into account environmental factors, ergonomics, risk, business culture and general considerations. And also this Checklist offers a standard set of 18 measurement criteria that can be applied to nearly my project. 8 References: Gray, C., & Larson, E. (2012). Project Management: The Managerial Process (5th ed.). Boston, MA: McGraw-Hill. Franka, A. (2005). Cyber cafés a how-to manual. Retrieved from August, 6 2012 http://www.advocatesforyouth.org/storage/advfy/documents/cybercafe.pdf