beanbag.com

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beanbag.com

• Northeastern University
• MIM3217
• Project Plan
• Date 6th of December 1999

2
Contents

• Introduction3
• Executive Summary...4
• Project Charter...5
• Project Structure and Communications...16
• Project Work33
• Project Control.46
• Appendix .64

3
Introduction

• Who are we?
• Johan Lokind
• Amir Mokhtar
• Linda Jaynes
• Andrew Murray
• What are we doing?
• Online classifieds from store owners and
  individuals for used furniture

4
Executive Summary

• This document contains the project plan for the
  beanbag.com project.
• Project Charter We defined beanbag.com as an
  online classified used furniture outlet. The site
  will provide services for both individuals and
  established used furniture stores. Our goal in
  this project is to build beanbag.com and launch
  the site in May 2000. The site will generate
  revenues from classifieds, used furniture dealer
  partnerships and banner ads.
• Project Structure We planed out our
  organizational and communications plans. We state
  that beanbag.com is a small startup company with
  a skeleton staff. And that many of our functions
  will be shared by more than one group. During the
  aggressive marketing and sales campaign temporary
  help will be used as needed. The company will
  operate like most startups, small relative
  salaries. With a lot of stock options, and growth
  opportunities.
• Project Work Section We have laid out our
  operational work plan and the work load
  distribution. Due to relative age of the
  internet, is do as needed. We also have put
  together a detailed schedule for when tasks
  should be completed. The project should start in
  October and the site launch will be in May.
• Project Control Section We have detailed how our
  operational dynamics will function. We will be
  using Earned Value Management to closely monitor
  the state of the project. We describe the tools
  we will be using to bring everything together. We
  also have spelled out our gray areas and how we
  plan to deal with those areas. Last but not lest
  we have composed a budget with expenditures and
  revenue plans and numbers.

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PROJECT CHARTER
6
Topics of Discussion

• Project Description
• Problem/Opportunity
• Customer Requirements
• Project Goal
• Project Objectives
• Business Justification
• Success Criteria
• Preliminary Assumptions, Risks and Obstacles
• Preliminary Budget and Schedule

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Project Description

• Online e-commerce site that posts classifieds in
  an easy to use format
• Match buyers and sellers for used furniture
  through classified ads
• Sales revenue will come from
• Links
• Banner ads
• Advertisers
• Posting fees (individuals and used furniture
  dealers)

8
Project Description (cont.)

• Posting fees will depend on the sales price of
  the product(s) and will range 2 to 20 per month
  
• Beanbag.com Positions
• - Manager
• - Webmaster
• - Marketing
• - Salesperson

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Problem

• Need for an easy and quick way, to buy and sell
  used and new furniture
• Need to expose sale items to the greatest number
  of people (thus attaining best price in a timely
  manner)
• Large demand for used furnishings in our global
  society (especially in large metro areas)

10
Opportunity

• Internet sales are quickly increasing in
  popularity
• The ability to provide individuals a means of
  buying/selling used furniture
• The ability to provide used furniture dealers a
  means of advertising their business to a larger
  market
• To provide buyers (in all price brackets) with
  greater number of choices
• To provide media advertising to support services

11
Customer Requirements

• Owners
  Roll Out May 2000
• Funding
• Viable project
• Individual sellers
  Provide quick easy sale of goods (for
  best possible price)
• Used furniture dealer
  Increase customers sales and store traffic

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Customer Requirements (cont.)

• Buyers
  Want many choices at all
  price levels
• Advertisers
• Most exposure possible
• Used furniture web sites
• Current sites national and local cater to
  high end market. Must keep abreast on current
  trends

13
Project Goals

• Have web page ready for roll out in May 2000
• Banner ads in place
• Used furniture dealers recruited and signed on
• Provide related support services in form of
  advertising for moving, cleaning and other
  household related services
• Repay initial loan in 3 years

14
Project Objectives

• Acquiring initial loan from VC
• Find developer for outsourcing of initial web
  page
• Hire manager, webmaster, marketing and
  salesperson.
• Active sales department recruiting used furniture
  dealers, customers, and advertisers
• Active marketing department to make our site well
  known
• Develop reciprocal agreement with related sites
  for links
• Roll out May 2000
• Initial Public Offering (IPO) June 2000

15
Business Justification

• Justification
• Loan total is 50,000 - 200,000
• Payback period 3 years

16
PROJECT STRUCTURE COMMUNICATION
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Organization

• Winning
• Stake Holders
• Venture Capitalist (Initial capital source)
• Furniture Sellers
• Furniture Buyers
• Used Furniture Dealers
• Owners
• Site building company
• Web hosting company
• Support Agencies

• Losing
• Stake Holders
• Used furniture dealers
• Newspapers (classifieds)
• Classified publications for used furniture

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Project Organization Chart
19
Skills / Project Life Cycle Matrix
20
Team Operating / Human Relations Procedures

• Team Construction
• The Board of Trustees will choose a personnel
  agency to do a national search to fill our
  positions
• The Board will then hire a Project Manager
• Together the Board and Project Manager will hire
  the team
• Team communication skills and storming / norming
  will be formed during a retreat.The FIRO team
  building method will be used to achieve the
  skills. Examples of activities are rope courses,
  trust falls, social activities and motivational
  speakers.

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Responsibility Assignment Matrix
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Chain of Command

• 1. Board of Trustees
• 2. Project Manager
• 3. Functional Team Members

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Team Operation

• The Project Manager leads the team(also handles
  finances)
• The Project Manager will report through monthly
  meetings to the Board of Trustees
• Daily team meeting, in which all main team
  members will meet to discuss day to day
  activities
• Weekly team meetings, in which all involved
  parties meet to discuss the direction of the
  company

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Team Operation (cont.)

• Technical Department will be responsible for
  overseeing team communication with e-mail and a
  special web based bulletin board. On which, all
  activities and projects are listed. Including
  weekly team meeting and daily team meetings

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Rewards

• Challenging cutting edge position in
  E-Commerce
• Respect a chance to Show Your Stuff
• Self Satisfaction
• Performance reviews at milestones, with reward
  bonuses based on meeting of deadlines.
• Employees major performance bonus will be stock
  options given at completion of successful project

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Help and Discipline

• Team members will seek help and advise from other
  team members as needed
• Any member of the team who fails to operate,
  within the agreed work environment, will be
  issued warnings. Two of which are written. If
  that person does not improve, then he/she will be
  expelled and replaced at the Project Managers
  discretion

27
Training

• The Board of Trustees and the Project Manager
  will identify the ways and means of accomplishing
  Project Objectives.
• During the hiring phase the Board and Project
  Manager will be interviewing potential employees
  with the help of personnel agency
• In-house seminars will be used to provide the
  team with additional skills needed

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Project Sponsor Management Involvement

• The project sponsor will be the Board of Trustees
  
• The sponsor will act as the Project Manager in
  the early stages of the project
• The Project Manager will be hired then the Board
  will step back into the Sponsor role
• The Project Manager will keep the Board
  appraised of progress and issues

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Project Sponsor Management Involvement (cont.)

• Temporary help will be hired as needed
• Our main influence methods will be stock options
  and job satisfaction. The project success, the
  establishment of the beanbag.com, will be the
  greatest motivator for the employees

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Linear Responsibility Chart
Legend 1. Actual Responsibility 2. General
Supervision 3. Must be Consulted 4. Maybe
Consulted 5. Must be Notified 6. Final Approval
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Communications Plan

• An atmosphere of mutual respect will be
  maintained at all times
• Communications will be facilitated by the initial
  retreat, daily team meetings, and weekly team
  meetings
• The Project Manager will identify team weaknesses
  and coordinate in-house seminars on these subjects

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Communications Plan (cont.)

• As the need arises employees will be sent to
  seminars on various Communication Topics (ex.
  Dealing with Difficult People)
• The Project Manager will act as facilitator if
  employees are unable to settle differences
  between themselves
• The Project Manager will meet with individuals on
  an as needed basis and offer appropriate guidance
  

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PROJECT WORK
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Alternatives

• Join Furniture Web Page - Join an already
  existing furniture web page and add our idea with
  online classifies. This would enable us to easily
  go nationwide and cut down the development costs.
• Buy and Sell Furniture Complement online
  classifieds by buying unsold furniture from our
  customers. We would have a store front with
  storage to then sell the items. This would be
  combined with pick up and delivery services.
• Partner with a Local Used Furniture Store - Join
  a local existing furniture store and create a web
  page together. The page would include advertising
  for the store and our online classifies for
  used furniture.
• Online Used Furniture Classifieds - Using the
  increasing popularity of the WEB, develop a web
  site for classified advertisements of used
  furnishings. We will out-source development of
  the site and buy server time.

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Alternative evaluation
1. Join Furniture Web Page 2. Buy and Sell
Furniture 3. Partner with Local Store 4. Online
Classifieds - Beanbag.com chooses to use this
alternative
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Work Breakdown Structure
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Network Diagram
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Schedule Development
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Resource Assignment Matrix
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Resource/Task Information Sheet
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Resource Use Histogram
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Key Dependencies / Milestones
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Critical Path
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Quality Plan

• Overall Quality - Will be maintained by the
  project manger. The project manger will compose
  biweekly reports and hold monthly meetings for
  the Board of Trustees.
• Operation Quality - Will be maintained by each
  department, under the supervision of the Project
  Manager. Weekly summarized reports will be
  composed and discussed during the week teem
  meeting(WTM).
• Web-Page Quality - Will be maintained by the web
  master, under the supervision of the Project
  Manager. Feed back from users of the site will be
  used, as a guide to the quality of the site.

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Other Resources and Costs

• Capital Resources
• Hardware/software purchased
• Purchase of office furnishings and equipment
• Online downtime causing disruption of business
• Due to the volatile nature of technology, it is
  very difficult to include
• exact equipment cost.
• Human Resources
• During the initial advertising period temporary
  help will have to be hired to staff marketing
  booths and canvas the area with flyers. This will
  be approximately 400 minimum wage man hours over
  10 weeks.

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PROJECT CONTROL
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Final Assumptions / Constraints

• Establish relationship with Venture Capitalist
• Furniture stores will want to participate
• Find competent personnel for the salaries and
  stock options provided
• Total amount of customers (stores and classified
  ads) per quarter
• Internet downtime
• Outsource company will be on time and budget
• E-commerce will be viable

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Outstanding Issues

• Final approval of money
• Finding Web Consultant
• Choosing Internet provider
• Hiring of employees
• Office space
• Find temps

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Project Budget
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Performance Baselines Management Plans
EARNED VALUE MANAGEMENT
Provides an integrated view of technical
performance, cost schedule
Compliment of evm.nasa.gov/definition.html
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Eight Subsystems

• EVMS Needs the Following
• Organization
• Scheduling
• Budgeting
• Work Authorization
• Data Accumulating and Reporting
• Variance analysis
• Estimate At Completion
• Baseline Maintenance and Control

Compliments of Professor MacIsaac
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Earned Value Management System

• The Project Manager
• will use EVMS for this project
• generate an Earned Value Report information
  weekly
• Will create monthly Earned Value Report on status
  of project using
• report table of Earned Value Information
• report graph measuring time against cost

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EVMS
Compliments of www.concentric.com
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Earned Value Management Graph
Compliments of www.concentric.com
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Sample 1
Compliments of www.cinderella.co.za
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Sample 2
Compliments of www.cinderella.co.za
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Project Management Tools
Not used (task already done) English
Pound Gave up, would never use
0 no integration 3 easy integration
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Change Control

• Each department is responsible for its own change
  issues. Final approval must be given by the
  manger
• Radical changes that affect the whole project,
  will require the approval of the board
• The change will be based on, feasibility and
  return value
• Changes will be reviewed during the weekly team
  meetings
• Each department is responsible for documenting
  proposed/final changes and submitting a copy to
  the web-master to be posted on the web-bulletin
  board

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Contractual Aspects

• Web site usage agreement
• Disclaimers
• Terms and conditions
• Online posting contract
• Usage fees
• Contract period
• Liability aspects
• Contract breach agreements
• Miscellaneous terms and conditions

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Contractual Aspects (cont.)

• Web site development contract
• Web site requirements
• User Interface requirements
• Fees and costs
• Deadlines and time table
• Contract breach terms and conditions
• Penalties for missed deadlines
• Quality terms and conditions
• Final product hand over.
• Support and testing terms
• Misc. terms and conditions

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Contractual Aspects (cont.)

• Furniture store advertising contract
• Similar to online posting contract
• Personal Agency contact
• Staff skills/requirements
• Hiring Salaries
• Head hunting fees
• Deadlines and time table
• Misc. terms and conditions

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Risk Management Plan
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Plan Distribution/Relationship to Project
Notebook

• Information
• Daily, weekly and monthly meetings led by PM
• Web bulletin board updated made by web master
• Web page with Project plan, WBS, Schedule and
  individual progress, updates made by webmaster,
  will use MS Project report tool
• Frequent correspondence on email
• PM updates Risk Plan on what can occur and go
  wrong -No surprises!
• PM informs BT on the progress
• PM hold informal social events to establish good
  relations
• Sell out
• Find buyer
• Contact VC
• Establish price
• Turn over company

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Appendix

• Web page screen shots
• Change request form
• E-commerce statistics
• Boston area used furniture stores research
• FIRO team building
• Team building locations
• Venture Capitalist

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