PROJECT MANAGEMENT - Lego

Floriane Hernalsteens, Antoine Mortellier, Alexandre Giannuzzi, Alvaro Matus 1

LEGO in China

Project Management

The forbidden City Project

Floriane Hernalsteens, Antoine Mortelier, Alexandre Giannuzzi, Alvaro MatusFloriane Hernalsteens

Antoine MortellierAlexandre Giannuzzi

Alvaro Matus

The forbidden city project

2

Agenda

Floriane Hernalsteens, Antoine Mortellier, Alexandre Giannuzzi, Alvaro Matus

From project initiating to project planning

Project Initiating

Project Planning

Project Execution

Project Closure

Project Life Cycle


LEGO in China

Project Management


Floriane Hernalsteens, Antoine Mortelier, Alexandre Giannuzzi, Alvaro Matus

Project Initiating


Project Initiating

Big potential in the Chinese market although our sales are decreasing

Business Problem What to do? How?

2014Decrease in sales

GDP growth

rate:7.4%

How to increase sales in

China by the end of 2016?

Create a new Lego

set

Related to

Chinese culture


Project Initiating

The project is totally feasible “Doability”

• Resources and capabilities• People• Production sites• Knowledge and know-how

• Already implemented in the Chinese market

Affordability

• Medium size project• Low investments• Good return on investment

• Increasing revenues every where else in the world • Lego has the resources to

finance the project


Project Initiating

A planned, organized and controlled project

Project Management Philosophy

OrganizePlan

Control

Scope

ChinaMiddle and

upper classes

City inhabitants

with children

Constraints

October 2016

Lego’s factory

already in China

Easier to implement


Project Initiating

Forbidden City Project: a diversified team with powerful resources Team on the project

Marketing team:

understand customer

desires

Designer team:

design the Forbidden

City set

R&D Engineers: design the production

process

Production manager:

implement and

supervise production

Quality engineer:

control quality

Sales managers:

sell product to retail stores

Finance: provide a follow up on project

financeIT

engineer: Provide

communication

support

Project manager who will deal with all eventual

conflicts


Project Initiating

Forbidden City Project: a diversified team with powerful resources

R&D lab

Resources available

3D design software:

CATIA

Production plant in China

IT&IS Software

Recruiting needs

External Chinese

consultant


Project Initiating

Collaboration between Denmark’s office and Chinese production plan and sales team

R&D in home

country

Prod and sales in China

Project leadership and

good communication


LEGO in China

Project Management



Project Planning Process


Project Planning Process

Resource plan

Project plan

Financial plan

Quality plan

Communication plan

Risk plan

Procurement plan

Contract suppliers

Project planning

Acceptance plan


Project plan

Scope statement

Value proposition Brand reputation Objectives

Imaginationcreativity

innovation

Sales increase

10%

Market share

increase 5%

Available online

New Lego set related to Chinese

culture

Good value for money


Project plan

Road map for the project

Audit

•Financial audit•Customer satisfaction

•Pricing policy•Distribution channels

•Advertising and promotions

•Customer service

•Pilot production run•Production verification testing

•Quality control

•Detailed design•Patents•Costing•Prototype

•Market research•Environmental analysis

•Feature/Benefits•Focus groups•Concepts selection

Commercialization

Marketing and Sales

planProductionDesignConception

•Product distribution


Staffing plan

Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016

Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016May 2016

1. Conception 2. Design

3. Production 4. Marketing & Salesplan5. Commercialization

• Marketing team• Designer team• External consultant

• Quality engineers• R&D engineers• Production managers

• Designer team• External consultant

• Sales managers• Marketing team• External consultant

Project manager - Finance manager - IT engineer


Financial plan

Cost baselines

1. Conception•Market research•Environmental analysis•Feature/Benefits•Focus groups•Concepts selectionUSD 80,000

2. Design•Detailed design•Patents•Costing•Prototype

USD 60,000

3. Production•Pilot production run•Production verification testing•Quality control

USD 75,000

4. Marketing & sales plan•Pricing policy•Distribution channels•Advertising and promotions•Customer service

USD 120,000

5. Commercialization•Product distribution

USD 40,000

6. Audit•Financial audit•Customer satisfaction

USD 40,000


Quality plan

Big picture of Quality Management

Total Quality Management

Quality Tools

Quality Assurance

Quality control IV & V

Quality Planning


Quality plan

TimelineQuality planning

May 2016/ S1 May 2016 / S2

June 2016 / S2June 2016 / S1

May 2016 / S4May 2016 / S3

June 2016 / S3 June 2016 / S4

1. Benchmarking of Quality processes 2. Setup of Quality processes

4. Internal quality control

July 2016 / S1 July 2016 / S2 July 2016 / S3 July 2016 / S4

5. Quality audits (IV&V)

3. Quality Assurance

6. Documents compliance6. Quality costs


Quality plan

Quality standards

Standards to pass• ISO 8124-1• ISO 8124-2• ISO 8124-3• GB 5296.5-96

Quality control actors

• Quality engineers• R&D engineers• Production

managers


Lego - Project

External

Market

Customer

Policies

Organization

Human Resources

Financial Resources

Project Management

Cost Forecasting

Planning

Control

Communication

RBS (Risk Breakdown Structure)

21

SWOT

StrengthsBrand - Reputation

QualityMultidisciplinary Team

Financial ResourcesPatent

WeaknessesHigh Cost – Raw Material

No product flexibilityCommunication - Network

OpportunitiesChinese consumer display similar preference and

taste with highly developed countriesChina is expected to become the world´s largest

consumer market

ThreatsCulture

Substitutes – Easy to imitateExchange rate

SWOT


Risk Management Plan

Update Plan Schedule

Cost Tracking

Quality Management

Resources Management

Risk Re-evaluation Risk Audit Variation and

Trends AnalysisOverall

Performance Measurement

Meeting


Contract with suppliers / Partnering

How to deal with Chinese suppliers & partners ?

Partnering

• Lego Certified Professionals in China

Suppliers

• Selecting suppliers complying with TQM• RM must be in the Lego’s approved list of

RM• Contract to guarantee chemical

compliance


Procurement plan

Procurement process

1. Select suppliers

complying with TM

requirements

2. Provide the list & the deadlines of

each RM needed

3. Testing finished products internally


Communication Plan

Board of Directors

Manager Staff

Project Team Work

Quality & HSE

Worker – Operative Area

Financial Report

New Requirements

Gantt Report

Risks & Incidents

General Summary


Communication Plan

Position Report Schedule

Board of Directors Financial Report - Email Monthly

Board of Directors General Summary (Activities/Milestones) –

Meeting

2 Months

Board of Directors Risk & Incidents - Meeting 2 Months

Manager Staff Financial Report – Email Monthly

Manager Staff General Summary – Email Monthly

Project Team Work New requirements – Meeting

Weekly

Project Team Work Gantt Report – Email Weekly

Quality & HSE General Summary – Email Weekly

Quality & HSE Risk & Incidents – Meeting Weekly

Worker – Operative Areas General Summary Monthly

27

Acceptance Matrix

Keep Satisfied Carefully Manage

Monitor Keep Informed

A

Board

Low

High

High

B

China Retailers

C

D

Stakeholders

TeamworkE ONGs

F

Shareholders

G

Market

HMarketing

Pow

er

Interest


Bibliography

• http://www.projecttimes.com/articles/10-steps-to-creating-a-project-plan.html• https://en.wikipedia.org/wiki/Project_plan• http://www.sqa.org.uk/e-learning/ProjMan02CD/page_06.htm• https://feb.kuleuven.be/eng/leuven/edu/iii/ChinaSeminar• http://www.styrolution.com/index_lang_zh_CN.html• https://chemicalwatch.com/779/lego-on-the-sensitivities-of-chemical-hazards-i

n-toys

• http://www.lego.com/en-gb/AboutUs/lego-group/programs-and-visits/lego-certified-professionals

• http://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/

• http://cen.acs.org/articles/93/i26/Lego-Replace-Oil-Based-Plastics.html• http://www.liquidplanner.com/blog/10-steps-manage-budget-scope-changes/

http://www.projecttimes.com/articles/10-steps-to-creating-a-project-plan.html

https://en.wikipedia.org/wiki/Project_plan

http://www.sqa.org.uk/e-learning/ProjMan02CD/page_06.htm

https://feb.kuleuven.be/eng/leuven/edu/iii/ChinaSeminar

https://feb.kuleuven.be/eng/leuven/edu/iii/ChinaSeminar

http://www.styrolution.com/index_lang_zh_CN.html

http://www.styrolution.com/index_lang_zh_CN.html

https://chemicalwatch.com/779/lego-on-the-sensitivities-of-chemical-hazards-in-toys



http://www.lego.com/en-gb/AboutUs/lego-group/programs-and-visits/lego-certified-professionals



http://www.isixsigma.com/methodology/total-quality-management-tqm/eight-elements-tqm/



http://cen.acs.org/articles/93/i26/Lego-Replace-Oil-Based-Plastics.html

http://cen.acs.org/articles/93/i26/Lego-Replace-Oil-Based-Plastics.html

http://www.liquidplanner.com/blog/10-steps-manage-budget-scope-changes/

http://www.liquidplanner.com/blog/10-steps-manage-budget-scope-changes/


LEGO in China

Project Management



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LEGO in China

Project Management



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PROJECT MANAGEMENT - Lego

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