Acme Home Improvements Inc

I. Executive Summary Acme Home Improvements Inc. , founded in 1982 in Raleigh, N. C. , has recently decided that an expansion into Canada and Mexico is essential. Acme currently has 125 U. S. locations with annual sales of $5,400,000,000 with $280,000,000 net income. Acme Home Improvements Inc. immediate expansion into Mexico City is in the interest of seeking greater profits and buffering against downturns in the U. S market.

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Acme’s Chief Operating Officer, has decided to sponsor the project to follow Home Depot and its other competition into Mexico City, allowing for additional revenue and international penetration. Acme Mexico City (AMC) has purchased a site in which the new location will be built and contracted CSL Project Management Corporation to oversee management and construction. Funding for this location will be $100000000100000 and it is to take no longer than 12 months to complete. The location will resemble Acme’s other locations with 100,000/sq. ft. of indoor space and 10,000/sq. t. of additional exterior space for garden products. Since this will be Acme’s first venture into an international market, cultural differences will require a partnership with local advisors and contractors to supplement the team’s current knowledge and its current cross-cultural US-Mexico team. Buffers have been added to ensure that the project will follow the correct path and be completed on time and within budget. This plan will outline the responsibilities of CSL Project Management Corporation’s development of the Acme Mexico City location.

Because Acme has created a strong scope, budget and timeline for AMC, it is crucial for CSL to develop a working roadmap for execution and completion. The plan will identify CSL’s responsibilities of obtaining permits, site construction, staffing, training and opening of the Mexico City location. I. Introduction Acme Home Improvements Inc. (AHI) was founded in 1982 in Raleigh, North Carolina. Currently there are 125 locations along the East Coast stretching from Florida to Maine and it currently has $5. 4 billion dollars in sales/yr. with $280 million in net income.

In the interest of seeking greater profits and buffering against downturns in the U. S. markets, AHI has decided to penetrate international markets starting with Canada and Mexico. This will be the first international venture of AHI and they have partnered with CSL Project Management Corporation to oversee and manage the project from start to finish in Mexico City. The expansion and success of the project is the first step of AHI’s long term international strategy to compete with similar companies who have recently expanded internationally, such as Home Depot, Ace and Lowe’s.

AHI has committed $10000000000 and outlined a project deadline of 12 months to the creation and success of the Mexico City location. An international market will pose certain cultural differences and CSL has decided to hire advisors and contractors to supplement the knowledge of the current cross-cultural team assembled. These unforeseen cultural issues can create additional time and expenses not otherwise planned; therefore the team has built several feeding time-buffers into the work breakdown schedule, at constraints along the critical path (Goldratt, 1998).

According to Goldratt, these safety buffers will help to ensure that our project is completed on time. Our plan is to review CSL’s project organization, management, responsibilities, training and staffing plans. In addition we will review CSL’s critical structure plan, schedules and budget to show how the project is to be completed within the timeframe specified. II. CSL Project Management Corporation Management Organization CSL is currently trying to minimize their labor force to the project in Mexico City to ultimate trim cost from the budget.

It has been determined that they would be able to operate fully and cover all management related issues with the three experienced and proven managers below. Each has worked on international projects in the past with high levels of success throughout their careers. This clear outline of management will allow for delegation of required tasks and needs on an ongoing basis. III. CSL Project Management Responsibilities Funding for the AMC project is coming from Acme headquarters and the project sponsor, Chief Operating Officer (COO) of Acme. The budget of $1000000000 and the project requirements have been set by Acme.

Acme has worked closely with CSL Project Management Corp. in the past and it has been approved that the allotted budget be handled by CSL as they see fit. Although the project is being managed by CSL, Acme and its COO are not without responsibilities of their own. CSL has identified crucial responsibilities that will allow the project to continue as scheduled. Each of these can be seen further in the project management Gantt chart attached. The first step will require both Acme and CSL to work with local authorities to obtain all of the permits and licenses.

In addition, Acme will assist CSL with the selection of materials, construction company management, and status reports to the COO and also their approval, site visits to ensure progress, supply chain management, the store layout and format and coordination of hiring and training of employees. Because there is a cultural difference when opening an international location, CSL has decided to work with local advisors in order to bridge the cultural gap. A multi-cultural team has been developed from some of the locations in the U. S. yet, a local advisory team will be able to fill in where needed.

In Mexico, the service sector is the largest component of GDP at 70. 5%, followed by the industrial sector at 25. 7% (2006 EST. ). Because there is such a large section of the population that is involved in the service and industrial sector, finding contractors and employees is not of a major concern. Training of these employees will be done by the cross-cultural team and reinforced by the decisions of qualified local management personnel. IV. Management Objectives The scope of the project has been detailed to CSL and the objectives of Acme are also the objectives of CSL.

It is crucial for the success of project AMC to have the permits/licenses, construction, store supply and employees hired on time and within budget. The specific permit/licenses are outlined in the attached Gantt chart. The store employees must be fully trained and integrated into the Acme culture. Because of the cultural differences, this will be tasked by the cross-cultural training team, ensuring a smooth transition from the U. S. to Mexico. There also must be a successful marketing plan in place in order to drive business to the new location.

Given the presence of established national competition, Home Depot, Ace and Lowe’s, Acme will have to fight for market share just as in the U. S. Since Acme is new to the Mexican market, there are other unknown variables that must be accounted for. In order for Acme and CSL to maintain control of the project, there must be a strong change control process. According to Schwalbe 2004, this process is designed to meet three specific goals. 1. Influence the factors that create change; ensure that the change is beneficial and impact to time, scope, and budget is understood. 2. Determine that the desired change has occurred. . Manage the changes as they occur; trying to minimize the number of changes the project is subjected to. V. Process Change and Acceptance/Forms Acme has set the scope of the AMC for CSL. Due to the unknown variables an international project can create, it will be imperative for these variables and changes to be authorized by the project manager. If a deadline is to be missed by more than 3 days or budget overrun is more than $2000 a Change Request Form must be submitted below (Schwalbe, 2004). This will help control project scope creep and keep the process moving forward and on budget.

Change Request FormProject Name:Date Request Submitted:Title of Change Request:Change Order Number:Submitted by: (name & contact information)Change Category: Scope Schedule Cost Technology OtherDescription of change requested:Events that made this change necessary or desirable:Justification for the change/why it is needed/desired to continue/complete the project:Impact of the proposed change on:Scope:Schedule:Cost:Staffing:Risk:Other:Suggested implementation if the change request is approved:Required approvals:Name/Title Date: Approve/Reject| Acme and the project sponsor, the COO, will want to ensure the project is on budget and on schedule for completion.

As stated prior, Acme will require CSL to submit a client acceptance/project completion form (Schwalbe, 2004). This form will be used to show acceptance and completion of each milestone. Client Acceptance/Project Completion FormProject Name:Project Manager:I/We, the undersigned, acknowledge and accept delivery of the work completed for thisproject on behalf of our organization. My (Our) signature(s) attest to my (our) agreementthat this project has been completed. No further work should be done on this project. Name Title Signature Date1. Was this project completed to your satisfaction? Yes/No2. Please provide the main reason for your satisfaction or dissatisfaction with thisproject. 3. Please rovide suggestion on how our organization could improve its projectdelivery capability in the future. | CSL is continuously looking to improve management and they consider every project is an opportunity to learn from different situations. In addition to the Client Acceptance Form, the Lessons Learned Report will be mandatory for the project manager to complete (Schwalbe, 2004). Lessons Learned ReportPrepared by:Project Name:Project Sponsor:Project Manager:Project Dates:Final Budget:| 1. Did the project meet scope, time, and cost goals? 2. What was the success criteria listed in the project scope statement? 3. Reflect on whether or not you met the project success criteria. 4.

In terms of managing the project, what were the main lessons your team learned? 5. Describe one example of what went right on this project. 6. Describe one example of what went wrong on this project. 7. What will you do differently on the next project, based on your experience working on this project? | VI. Work Plan Acme has already purchased the property and it is assumed that the site is cleared and ready for construction. Because the scope of the location has defined size limits and will be mirrored after other locations much of the designing phase can be expedited. The first major hurdle prior to beginning the construction process will be the need to obtain permits and licenses to operate in Mexico.

Obtaining a tax registration number, registering with the Mexican IMSS, registration with the local tax administration for payroll tax, notification of opening of mercantile business and registration with the National Business Information Registry will be the first hurdle. Again, due to cultural differences, local advisors will help in the procurement of these permits. The next step will be the first step towards construction. Site preparation and laying the foundation will take a considerable amount of time and will be outlined in the chart attached. CSL has estimated a total of 118 days for completion. This is to include foundation, plumbing, piping, etc.

The foundation is the core to a structurally sound building. Next will be the installation of the walls, floors, roof tresses and roofing itself. Following the plan set plan, each of the sections of the store and departments will be divided. Included in all of this will also be insulation and electrical wires run along the walls including communication needs. CSL expects this work to be completed in 105 days. All electrical and plumbing internally will be completed next, within 45 days. Interior work will be required to be completed in 44 days. This will include installation of drywall, department sections, paint, display shelves, storage shelving.

The interior will become more defined and will continue to take shape as additional work is being completed. Pouring foundation for the garage and erecting the structure will take 50 days. CSL will also commit 40 days to paving the parking lot and aesthetics of landscaping. This is important because buyers will consider curb appeal when deciding to purchase or visit our location. Working with our cross-cultural team and local advisors, Acme and CSL will start to hire their employees. 65 days have been committed to hiring a core competent staff that will be able to make the transition into the Acme system. A feeding buffer has been added to ensure that the staff is hired and fully trained prior to opening.

Finally, market analyses must be completed and marketing and promotion of the store and its opening will be our last step. This will help drive business to our location and gain the interest and trust of the locals. It will be important to work with a local agency in cooperation with our marketing team who understand the image AMC is trying to achieve. There are cultural differences and idiosyncrasies that the local agency may only know or understand. This will be an ongoing process through opening yet CSL expects 181 days to integrate ourselves into the public eye. Each of these steps can be seen in more detail by accessing the attached Gantt Chart.

CSL has included project buffers to help ensure that the project will be completed on time and within budget. VII. Summary CSL has outlined a plan that will enable Acme to penetrate the international market within 12 months and a $1000000 investment. Mexico City will become Acme Home Improvements first international venture. Acme will look to compete with currently established companies and gain a foot hold in the Mexican marketplace. CSL’s plan outlines the management structure, organization, work plan, schedules, and budget. Attached as well, is the project charter and our Project work plan that will further detail our details and timelines for completion.

Because of the detail, planning and past experience, CSL believes this plan will enable Acme Home Improvements the ability to integrate successfully into the Mexican household and marketplace. The plan will show that CSL has completed the task within the scope requested by Acme, on time and within budget. References Goldratt, E. (1998). Critical chain. Great Barrington, MA: The North River Press. Schwalbe, K. (2004). Information technology project management (3rd ed. ). Boston: Course Technology. http://www. tradingeconomics. com/mexico/start-up-procedures-to-register-a-business-number-wb-data. html http://www. doingbusiness. org/data/exploreeconomies/mexico/


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