Tutorial - 5

RISK ASSESSMENT:

1.    WBS:

2. Risk Analysis:



Risk	Cause	Problem solving method
Sales not up to the expectation	-Lack of promotion -Price of items sold are high compared o other shops	-Maintain a lower price for the beginning and gradually increase the price -More promotions eg.giving out vouchers for min S$ 50 spent in the store / have lucky draw contest every month to attract more customers -Have special discount during festive season
Theft in the premise	-Lack of security e.g. no CCTV cameras or alarm system	-Install CCTV camera & alarm system to monitor the premise. Cost involvment $20,000 (apporox).

Tutorial - 3

WBS ( Work Breakdown Structure ) :

Cost Computation:-

 INITIAL COST:-

Cost Calculation for 4 months (Assumptions):

Total Cost = (Fixed + Variable + Other)              

                     = (47000 + 107000 + 16400)     

                     = 170,400      

Project Completion = 4 months (including weekends)                                                                      

Total working days  = 90 days (excluding weekends)           

CONTRACTOR:

  1) Smart Agency (Manpower Hiring)                                  –  S$  10,000       

 2) Compass Enterprises (Construction/Office Setup)  –  S$    5,000
 3) Globalware Trading (Utilities)                                          –  S$    4,000   
 4) KAZA Enterprises (Aircon/Refrigeration)                     –  S$    2,000
5) Exploid Technologies (RFID Installation)                       –  S$    1,000
6) Impac Advertising (Advertising)                                        –  S$    1,000
                                                                                                                  S$  23,000

RUNNING COST:-

Cost Calculation for 1 year:

No. of workers working in a Minimart = 10 persons

SALARIES [10 persons]:

Supervisor (1 person@2500/month)          = S$ 2,500

Cashiers (3 persons@1500/month)            = S$ 4,500

Sales Assistant (3 persons@1200/month) = S$ 3,600

Store Keeper (3 persons@1200/month)    = S$ 3,600

                                                                                      S$ 14,200

 Salaries of 10 workers for 12 months (14200 x 12)  = S$ 170,400   

 Additional cost of goods purchased                             = S$   50,000    

 Rental for 12 months (12 x 3500)                                    = S$   42,000    

  Human Resource                                                                  = S$   10,000                                     

  Net Total                                                                                     S$ 272,400      

Total Cost after 1 year 4 months = (170,400 + 272,400)    = S$    442,800       

 Total Annual Revenue collected (3,000 x 365 days)         = S$ 1,095,000

ROI:

  = (Gain – Cost) / Cost  

  = (1095000 – 442800) / 442800 

  = 1.47   

  = 147%                                                                                                                                                                                     

Hence, ROI > 0.5.

Tutorial - 4

Microsoft Project :

POSSIBLE PATH:

A +B +C +D+ E+ F+ G+ H  = 90 Days.

A +B +C +D+ E+ G+ H       = 83 Days.

A +B +C+ E+ F+ G+ H        = 80 Days

A +B +C + E+G+ H            = 73 days

v  Latest Finish Time = 95 days

Other criteria:

v  Week starts on Monday

v  Consist of 5 days in a week

v  Holidays = CNY- Feb 3rd&4th, Good Friday- Apr 22nd, Labour Day- May 1^st.