IntroductionThis is a report on renovation of two storerooms into a showroom. Based on a meeting held between various stakeholders, it was decided that a business plan be developed on the renovation of the two store rooms. This report therefore looks into various steps undertaken and the basis of decisions made in developing a new showroom. Several meeting were held by the stakeholders to see a successful completion of the project. Project charterThe project is on renovation of two storerooms with the aim of creating a new showroom where customers can access and purchase goods.
IKEA needs the new showroom in order to secure a competitive edge and enhance its performance. The current showroom has been found to be inadequate and leasing a new one would result to additional operational costs and thus not practical. In addition, new goods needed a more refined showroom for high quality presentation. This is based on the experience held from previous customers who indicated that the presentation of a service or product influenced their intention to purchase it. Since IKEA has been in existence and will get some of the staffs from the already hired staff, it will be easier for new staff members to adopt to its organizational culture.
The new showroom presents the advantage of lowered conditioning and electricity costs since it is more spacious and open. This means that only one part of the show room will require cooling/heating and lighting. In addition, compared to the convectional closed office, the showroom will host more staff thus increasing its ability to serve more customers. Project titleAdopting a new design for the showroomProject needIt is necessary the IKEA adopts a new design for the showrooms.
This will be achieved through the demolition of the wall dividing the two store rooms. The aim of this is to meet the emerging customer needs for space. Project descriptionThe project will involve demolition of the wall which divides the two store rooms and their renovation to create adequate space for customer and employee convenience and attraction. Project timeline. This project will commence on the 1st of October 2011 and will be expected to be completed on 29th October 2011.
Goals and objectivesThe goal of this project is to create a larger showroom for IKEA. Objective 1.To merge the two storerooms and renovate themObjective 2. Redesign the internal design of the new showroomObjective 3.Open the new showroom before the set completion date. Assumptions, risks and constraintsAssumptionsIt is assumed that thedemolition of the wall in between the two rooms will not affect the stability of the building. Every customer will be comfortable with the paint. Risk AnalysisRisk DescriptionProbabilityRepercussion Person responsibleresponseInadequate fundslowCatastrophic Project manager MitigationTime wastageModerateMajor Team membersMitigationInterference with electricity wiringHigh MinorTeam membersMitigationWater leakage Likely Major Team membersMitigationLoad bearingModerate MajorTeam membersAccept Employee safetyModerate ModerateProject manager Mitigation Inadequate furnitureLow ModerateProject managerBudget Item Cost in $Responsible personnel Architect 1, 000MahannadConstruction 4,000MahannadPainting 1,000MajedElectricity repair1,000MajedProject team5,000Suliaman, Mahannad, SiliamanCarpet 1,000SuliamanItem relocation2,000Majed Relocation of items500MajedNew furniture3, 000Suliaman Human resource requirement Total number: 30No.
of builders: 10No. of people to lay the carpet: 4No. of painters: 9No. of electricians: 4Interior designers: 1Delivery men: 2Material and equipment Materials and equipment needed include safety gears, carpet, building tools and furniture among others. project definitionScope of the projectThe customer satisfaction level will be enhanced.
As customers become more satisfied with the adopted strategy, productivity in IKEA will improve. The project will require $ 18, 500 to ensure that the project is completed as per the plan and within the duration.