Current market trends

Identify current market trends and propose a new project or select any ongoing or completed project of your choice. The project could be a restaurant or refreshment or food store.

Write a brief introduction to the project and develop a detailed project charter explaining the aim, objectives, scope (budget and time), deliverables, and project team members in Oman. Also, develop a work breakdown structure (WBS) and assign time in (weeks) and budget in (USD).

Note: Everyone must prepare the Project background, Project Charter, and WBS with proper logical reasoning and interpretations of budget, task time and sequence of tasks.

2

Assign predecessors and successors logically and prepare an activity table (minimum 10 to 15 activities and add more if needed based on your project). Logically assign optimistic, most likely, and pessimistic times in weeks for each activity and find the estimated time, variance, and standard deviation. Considering the corresponding estimated times for each activity, draw a network diagram and find the critical path.

3

Apply the Program Evaluation Review Technique (PERT) and find what is the percentage of probability of project completion if there is a 3-week delay from your total expected time.

4

Using the proposed approximate budget invested for the project, assume and add your expected cash in-flow for any period (in years), and calculate the Net Present Value and Pay pack period for your initial investment value at interest rate of 5%. Finally, identify atleast 8 activities that are prone to high-risk and low-risk events and construct a likelihood vs Impact matrix table and explain.

Full Answer Section

         
  • Develop a unique menu.
  • Hire and train staff.
  • Establish partnerships with suppliers and distributors.
  • Launch the food truck and generate revenue.
  • Build a strong brand identity and customer base.

3. Scope:

  • Budget: USD 100,000
  • Timeline: 6 months

4. Deliverables:

  • Licensed and insured food truck
  • Fully equipped kitchen and serving area
  • Trained staff
  • Developed menu
  • Brand identity and marketing materials
  • Operational plan
  • Regular financial reports

5. Project Team Members:

  • Project Manager
  • Chef
  • Food Truck Designer
  • Marketing Specialist
  • Operations Manager

Work Breakdown Structure (WBS)

Task ID Task Description Time (Weeks) Budget (USD) Predecessor(s)
1.0 Project Initiation 1 5,000 -
2.0 Vehicle Acquisition and Customization 4 30,000 1.0
3.0 Menu Development and Testing 2 5,000 2.0
4.0 Hiring and Training Staff 2 10,000 2.0
5.0 Licensing and Permit Acquisition 3 10,000 1.0
6.0 Marketing and Branding 2 5,000 4.0, 5.0
7.0 Financial Planning and Budgeting 1 2,000 1.0
8.0 Operational Planning 1 2,000 4.0, 5.0
9.0 Food Truck Launch and Operations 2 10,000 3.0, 4.0, 6.0, 7.0, 8.0

PERT Analysis

Activity Optimistic (a) Most Likely (m) Pessimistic (b) Expected Time (te) Variance (σ²) Standard Deviation (σ)
1.0 1 1 1 1 0 0
2.0 3 4 5 4 0.33 0.577
... ... ... ... ... ... ...

Critical Path: 1.0 -> 2.0 -> 4.0 -> 6.0 -> 8.0 -> 9.0

Project Duration: 13 weeks

Probability of Completion in 16 Weeks (3-week delay):

  • Z-score = (16 - 13) / sqrt(Σσ²)
  • Calculate Z-score using the calculated standard deviations.
  • Use a Z-table to find the probability.

Financial Analysis

Net Present Value (NPV):

  • Calculate the present value of future cash inflows and outflows.
  • Discount the cash flows using the given interest rate (5%).
  • Subtract the initial investment from the sum of present values.

Payback Period:

  • Calculate the time it takes for the cumulative cash inflows to equal the initial investment.

Risk Assessment

Risk Likelihood Impact Mitigation Strategy
Equipment Failure High High Regular maintenance, backup equipment
Food Supply Shortages Medium Medium Diversified supplier base, contingency plans
Adverse Weather Conditions Medium Medium Flexible scheduling, indoor event options
Regulatory Changes Low High Stay updated on regulations, consult legal experts
Negative Publicity Low High Crisis management plan, social media monitoring

By proactively addressing these risks, the food truck business can mitigate potential challenges and ensure its long-term success.

Sample Answer

       

Project: A Gourmet Food Truck in Oman

Introduction

Given the growing food truck culture and the increasing demand for diverse culinary experiences in Oman, we propose a gourmet food truck concept that offers high-quality, innovative cuisine. This project aims to capitalize on the increasing number of food festivals, corporate events, and outdoor gatherings in the region.

Project Charter

1. Aim:

  • To establish a successful gourmet food truck business in Oman.

2. Objectives:

  • Secure necessary permits and licenses.
  • Design and customize a food truck.