Quality Juice made from real California fruit

X470 Project Management

EDP 325936

Summer 2011

Team: L 'Spawns

Soif

Liolios Dino, KonstantinosSingh, Shraddha Pollock ,KendraAchury, MichaelWang, JingNguyen, PhiStanger, Karen

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Organization chart Singh, ShraddhaGraphic Designer

Wang, Jing Process Engineer

Liolios, KonstantinosProduct Organizer

Pollock, KendraProduct Designer

Nguyen, PhiManufacturing Engineer

Achury, MichaelScientist

Stanger, KarenProject Manager

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Contents• Project definition

– Mission and Values– Project Statements and Chart

• Project analysis– Assumptions– Constraints– Stakeholders– Risk analysis

• Project plans– Deliverables – WBS– Milestones– Time structure– Cost/Time breakdown

• Monitoring and Control– Communication plan– Responsibility matrix

Mission

To produce a healthy, tasty, friendly, economical, and high quality juice –

Made of real California fruits!

Our commitment to the highest standard is the foundation of our business. We stand behind our product. Our mission is to make world a healthier and better place to live.

ValuesL’Spawns as a team, and as individuals, values integrity, honesty, healthiness, and a greener world. These values drive us to achieve our mission.

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Project Mission StatementBy Nov 1st 2011, L’Spawns will have ready for distribution 10,000 cases of the new Naked product ‘Soif’, a seasonal Juice drink made from 40% California juice + 60% Water – delivered in a trendy re-usable bottle.

Project Charter• Produce a 12 oz glass bottle from recycled material

that can be easily be reused by the user• Create a new economical juice drink made from

local California fruit• Create a catchy and appealing label

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Project Assumptions

Project Constraints• Vendor selections• Limiting customer geography• Overseas Manufacturing Facility - China• Time – 6 months

• Budget provided by Naked• Production using existing Naked facilities• Distribution using existing Naked infrastructure• Sales and Marketing provided by Naked

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Project Scope

In Scope:

• Design and acquire new bottle

• Develop new fruit drink recipe

• Design and produce bottle label

• Produce first batch of 10,000 cases

Out of Scope:

• Distribution

• Manufacturing

• Acquiring capital

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Stakeholders

• Naked – Sponsor

• Customers

• Manufactures

• Vendors

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Risks

Risk Probability Impact ResponseFruit unavailable

Medium High adjust recipe/flavour of beverage to reflect fruits that are available

Production is delayed

Medium Medium Find alternate production plant, call in experts to fix production machinery

Market Acceptance

High High adjust recipe/change fruit blend, add new flavour

Juice

Risks

Risk Probability Impact Response

Delivery from Manufactures

Low High Contingency plan in contract with vendor for alternative bottle

Materials availability

Medium Medium Find alternate materials source in advance

FDA Safety compliance issue

Low High Consult the FDA post design to ensure compliance, use certified designer

Bottle

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Risks

Risk Probability Impact ResponseNot meet FDA requirement

Low High Schedule earlier, use certified designer

Printing is delayed

Medium Medium Prepare alternate resource at beginning; ask for process schedule

Delivery is delayed

Low Low Schedule float time into delivery deadline

Label

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Deliverables1) Bottle & Cap

2) Juice

3) Label

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Deliverables

Seasonal Juice Flavors:

Summer – Organic Apple

Autumn – Organic Grape

Winter – Organic Orange

Spring – Organic Strawberry

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WBS

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Milestones1) Bottle and Cap

• Finalize bottle design• Vendor contracts signed• Prototype• Final Bottle and Cap Delivery to Naked

2) Juice• Vendor contracts signed• Fruit Delivered• Small scale production run completed• Taste test/focus group completed• Regulatory approval signed

3) Label• Design approval• Digital printing delivery

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Project Schedule Gantt Chart

LabelContentsPropertiesPrinting

BottleDevelopmentManufacturing

JuiceFruit/Vendor selectionQuality Control/DevelopmentProduction

May June July Aug. Sept. Oct.

Project Dash Board Gantt Chart

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Gantt Chart (continued)

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Gantt Chart (continued)

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Gantt Chart (continued)

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Gantt Chart (continued)

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Cost/Time Breakdown

Activity Time CostMaterials Research 5 days $800Bottle Design 5 days $2,500

Bottle Cap Design 2 days $1,000

Safety seal testing 1 day $1,500Manufacturing 2 months $40,000

Bottle

LabelActivity Time Cost

Design file ready 14 days $800

Digital printing initial (deposit) 1 days $1,500

Digital printing first delivery 14 days $5,000

Digital printing finished 2 months $7,500

Total:

Total: $15,000

$46,000

Cost Breakdown

Activity Time CostFruit Vendor Selection 2 days $800Fruit Purchase n/a $41,000*

Water n/a $7100**

Recipe Development 4 weeks $3500

Focus Groups/taste test 5 days $2000Trial Run 14 days $1425

Full Scale Run 30 days $5700

Juice

23*breakdown on next slide** assuming $1/gallon

Total: $62,000

Project Total: $125,000

Fruit Cost Breakdown

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Water: 1,000 bottles (355 mL) of 60% H2O = 215 Lor ~ 60 gallons

Small scale production runFor production testing, quality control, taste testing

Will produce 250 bottles of each fruit flavor:

0.3 lbs fruitbottle

X 250 bottles = 75 lbs

Organic Apple $0.7/lbs $45

Organic Grape $1.1/lbs $75

Organic Orange $0.9/lbs $70

Organic Strawberry $1.2/lbs $90

Fruit Cost Breakdown

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Water: 120,000 bottles (355 mL) of 60% H2O = 26,000 Lor ~ 7000 gallons

Production runJuice for the market

Will produce 120,000 bottles of Organic Apple:

0.3 lbs fruitbottle

X 120,000 bottles = 36,000 lbs

Organic Grape $1.1/lbs $40,000

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Vendor Evaluation CriteriaSelection of Manufacturer(Qty: 10,000 cases, Bottles and Tops)

Criteria Weight Vendor1 Vendor 2 Vendor 3

Anchor Glass

Score Silver Spur

Score Global Source

Score

Quality3 5 15 5 15 5 15

Delivery2 5 10 3 6 1 2

Cost1 3 3 3 3 5 5

Total score28 24 22

Notes:1.Selection: 1, 3, 5 (good, better, and best)2.Weight x Selection = Score3.Select the highest total Score

Bottle

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Communication Plan

Who? What? How? When?

Naked Parent Company

Project status Email/meetings Weekly

Customers Information about new product

Marketing/advertisements

Weekly

Fruit Vendors Orders Contracts As neededManufacturing Dept

Scheduling requirements

Email/meetings Bi-weekly

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Responsibility MatrixA – approves, S – supports, C – creates, I – informs, R - reviews

PM Sponsor (J & R)

Juice Team Bottle Team Label Team

Bottle & Cap design A A S C,R,A S

Bottle Vendor selection A A S C,A S

Final Bottle and Cap delivery I I I A I

Fruit vendor contracts signed A I C,R,A S S

Fruit delivered I I A I I

Taste test/focus group completedA A A S S

Regulatory approval signed A A A A A

Label Design file readyA A S S C,R,A

Label Digital printing delivery I I I I A

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High Risk Control Chart

Fruitunavailable

Production isdelayed

MarketAcceptance

Contamination Printing isdelayed

Delivery isdelayed

Delivery fromManufacturers

Materialsavailability

FDA Safetycompliance

issue

Probability

Impact

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Vendor Evaluation Criteria

For the Bottle, Fruit, and Label we will use a simple Vendor Evaluation Criteria to determine best vendor.

• Cost – looking for best value (price vs quality)• Quantity – need a vendor that produces large quantities• Location – the closer to production plant the better• Availability – growers that offer a variety of fruit throughout

the year

Addendum

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Time Line

Milestones serve as Monitor and Control Checkpoints

for the successor tasks

Thu 1/1/12

StartMon

5/9/11

Jul Aug Sep Oct Nov Dec Jan

Bottle Cap Deliverable

Deliver Label to Printing Company

Today

Vendor Contract Signed

Juice flavor agreement

Deliver Labels to Bottling

Finish

Produce Small Scale Production

Fri 7/15/11 Mon 10/3/11

Formal launch Full Scale Production

11/1/11

Addendum

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WBS (in level 4)

Quality Fruit Juice

Label

ContentsBrand

Contents related to FDA codes

Properties

Paper

Biodegradable glue

2”x12.75”

Printing PlanDesign file

Digital printing

PackageBottle material

Material research

RFP

CapMaterial evaluation

Prototype design

Juice

FruitVendor selection

Choice of seasonal fruits

Quality controlFDA regulations

Taste & Recipe

ProductionTrial run

Full scale run

Addendum