opening a convenient store project management course

Realizing that our university campus did not yet have a 24-hour convenience store to serve the needs of students, our team created the necessary information for this project... Analysis

VIETNAM NATIONAL UNIVERSITY – HOCHIMINH CITY

INTERNATIONAL UNIVERSITY DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENT

OPENING A CONVENIENT STORE

PROJECT MANAGEMENT COURSE

Lecturer: Dr Dương Võ Nhị Anh

Group Number: 09 Class: Saturday Afternoon_G02

Student ID Member name % Contribution IELSIU20024 Đinh Ngọc Vĩnh Giang 100%

IELSIU20048 Phạm Lê Uyển My 100%

IELSIU20059 Nguyễn Hải Phong 100%

IELSIU20441 Đinh Nhật Bảo Trân 100%

IELSIU19115 Nguyễn Thị Thái Bình 100%

IELSIU19143 Nguyễn Thùy Giang 100%

IELSIU19280 Phạm Hồ Hoài Thương 100%

IELSIU19136 Vương Quốc Dũng 100%

IELSIU19138 Trần Võ Minh Duy 100%

IELSIU19127 Lê Nguyễn Thanh Diệp 100%

12/2022

TABLE OF CONTENTS

I INTRODUCTION 3

1 Background 3

2 Purpose 4

3 Limitation 4

II SCOPE 4

III GANTT CHART 6

IV ACTIVITY SCHEDULING 6

V LOCATION 7

1 Existing store 7

2 New store 8

VI WORK BREAKDOWN STRUCTURE 12

VII PROJECT COST ESTIMATED 13

VIII RISKS MANAGEMENT 14

IX HUMAN RESOURCES MANAGEMENT 17

X RECOMMEND SOLUTION 18

XI CONCLUSION 21

XII REFERENCES 21

XIII QUESTIONS & ANSWERS 22

I INTRODUCTION

Recently, convenience stores appeared everywhere in a city Besides supermarkets, convenience stores supply necessary commodities for everyone in a more convenient way According to research, approximately 70% of customers of convenience stores are students They usually come to convenience stores after school or between two classes (ordinary classes and extra classes) since convenience stores have prepared food which is what they need to have

a quick meal to continue learning However, at Lang Dai hoc in Thu Duc City, there is only one or two convenience stores among 6 universities with more than thousands of students in each school Apprehending the demand of the market, we decide to deploy the project which

is “Opening convenience store” to serve food commodities for everyone here, especially students

of building a convenience store

Realizing that our university campus did not yet have a 24-hour convenience store to serve

the needs of students, our team created the necessary information for this project

2 Purpose

Project management is the meticulous planning and use of a company's resources to carry out a series of tasks with the highest probability of success Any job is connected to the project, especially for those who would like to pursue a career in project management, thus this course

is beneficial and ideal for all students of all various disciplines It gives students the fundamental understanding of project management that boosts their competitiveness on the job

market and gives them a solid skill to plan and manage projects in their future careers

The scope of this project is:

- Open a 24/24 convenience store in Lang Dai Hoc area with high standards such as latest equipment (coffee making machine, frozen equipment, e-banking), wide seat area, high-speed wifi, strong promotion, etc

- Operate an area of 100 m2 to 120 m2 standing in the center of Lang Dai Hoc area

- Covering nearly 3000 items including: beverages, instant food (sausage, pho, instant noodle), snack, confectionery, personal care, toiletries, food, fruit, vegetables, frozen meat, medicine

- Our customer target is:

+ Primary: students

As younger users, they use the space as a place to study and meet and this project will mainly focus on students or colleges

+ Secondary: workers

A group of people who have little time to shop at supermarkets or traditional markets that are very rare or close soon in Lang Dai Hoc

- For the implement of the project, these factors should be concern:

+ Cost operation: between 400 and 500 million VND per year to operate There will be

a variety of charges, including:

• Cost of facilities: 360 million VND annually

• Cost of import: about 200 million VND

• Cost to design the room and purchase necessary equipment: estimated at 50 million VND

• Staffing expense: around 25 to 230 million VND

+ Expected Budget: 350 million VND

+ Source of goods:

• Product distributors (Unilever, P&G, Coca cola, Vinamilk)

• Grocery sales from level 1 dealers and agents

• Import goods from abroad (e-commerce platform)

• Get information to import goods from big supermarkets such as BigC, Vincom Mega Mall, Lotte, etc

- This convenience store is expected to serve 100 customers per day, at peak season will

be 140 at most

- This project is a start up of retail business (Family Mart) that needs various legal documents to operate

III GANTT CHART

IV ACTIVITY SCHEDULING

predecessors

Normal time (days)

Find and research potential positions for the

Brainstorm ideas and find architect to design

Framework evaluation, consultations,

End project

The critical path is: A → C → D → E → F

The total project time is: 430

V LOCATION

1 Existing store

There are more than 720 stores spread all over Vietnam But the most concentrated is still

Ho Chi Minh with 373 stores Among them, the number of stores in Thu Duc city is only 22 stores Let us consider the site in Thu Duc city, there are three sites that Pharmacity took place

in the table below

Table 01 Analysis of three existing Convenient Store locations in

Vietnam National University Village

Residential in Dormitory B

Surrounding Located at Dormitory A Located at Dormitory B Located around

apartment

There are more than 60% think that they get trouble finding convenient store between Dorm

A and Dorm B in “VNU Village”

All of people who live VNU Village have no objection to having convenient store being present between Dorm A and Dorm B in VNU Village

Based on the mentioned factors, Youth Center and Guest House Area are considered to become the location of the new store

a Huff’s Gravity Model

From that, the distance matrix is achieved:

Guest House Area

Dormitory A Distance Size (m2)

For National University Guest House area (Guest House Area):

Guest House Area 1.8 km 120

Determine the market size of Dormitory A and Dormitory B:

First of all, market size should be determined According to Steven, author of the article

“What is the definition of market share” defined market size is the number of sales or customers who are potential to the business it can be found out by looking at existing sales numbers Conclude that it is very important to observe and figure out the potential market size before expanding the business Assuming that each customer is willing to pay 30,000 VND/ time According to the statistic, there are more than 22,000 students in Dormitory A and the number

of students in dormitory B is more than 40,000 That made up the market size of Dormitory A

to 0.66 billion VND and Dormitory B of 1.2 billion VND

So, the result is:

Market size (billion VND) Dormitory A 0.66

Dormitory B 1.2

Market size (billion VND)

Guest House Area 1.64 Hence, the new store in Youth Center should be considered to be open for better profits

b Analysis the new store

In analysis, Our stores are usually the type of freestanding sites which are convenient for customer Therefore, the new store in VNU Village is not exception, the type of this store is also freestanding sites

Let us consider the location of new store Youth Center is a place located in the center of the “VNU Village” which have a high traffic Youth Center is concentrated on many restaurants and shop, so many students pass through this area Not only that, it is also close to the market where people travel every day Therefore, Youth Center would be the perfect choice for buying essentials like goods

In order to determine the location type, evaluate a series of trade-offs among: the size of the trade area, the occupancy cost of the location, the pedestrian and vehicle customer traffic,

property restriction and the level of convenience with respect to the customers

- Advantage:

+ Consumers benefit from freestanding sites because of their convenience (easy access and parking);

+ High vehicle traffic and exposure, which attracts passing customers;

+ Low occupancy costs;

+ Less limitations on signage, hours, or products, which are often enforced in retail complexes

- Disadvantage:

+ Freestanding sites, on the other hand, have a limited trading area There are usually

no other neighboring merchants to entice clients who want to shop at various stores in one trip

+ Because there are no other stores to share the expense of outdoor lighting, parking lot upkeep, or garbage collection, freestanding sites have greater occupancy costs than strip malls

+ Freestanding locations tend to have little foot circulation, which limits the amount of clients who could stop in while strolling by

VI WORK BREAKDOWN STRUCTURE

VII PROJECT COST ESTIMATED

Units per month

Cost/unit/month (VND)

Subtotal (VND)

WBS level 1 (VND) % total WBS items

(1) Decorations, racks, cashing machine, cashier desk receipt printers, barcode reader,

software sales

(2) Through free platforms (Google form, Microsoft form)

(3) Discount 25% off

(4) The cashiers only working partime – 4 hours

VIII RISKS MANAGEMENT

Process

step

Potential Failure Mode

Potential Effect(s)

Potential Causes(s)

O

C

C Current Control

D

E

C R.P.N

Research &

find

location

The suitable location is hired by others

Restart the research and evaluate other locaiton which

prefered as the first one

5

The delay in research &

location which cannot decide as soon as posible

The project will

be started later than expected

4

information to build a plan have

researched carefully and deeply enough

4

Strictly follow what the project manager plan and get contact immediately as soon as the issues appear to get advise for other ways to

excute the project

Proceed

with

construction

The shortage of building supplies

The construction

delayed and need more time

to complete the building It can

construction company in using capital to purchase materials

5

Have a daily or weekly

inspection to the process of the construction to confirm all the building must be follow as the plan and a requirement of building must be covered

carefully by researching all the previous

number of goods that

though its quality is guaranteed, and price is accceptable

The store will not have enough products to operate, or it cannot satisfy the customer demand

8

Usually, it comes from the supply chain issues It is not caused by the supplier because of the contract they have to ensure the quantity except for unavoidable

reasons

5

shortage products from

This can cause the bottleneck

of the plan

Every processes will be affected and has to modify again the project plan

7

Not well-prepared all the required

required conditions

document as soon as possbile

Operation Workplace

safety risks

Incidents of violence for night shift employees

7

The area is not had good order and security So, it can have theives or villainous people

5

Working with local security to

addition, making the working instruction for employees to limit as many accidents as possible

Slipping, falling, and burning while working

5

The store is not well equipped It can also be caused

by the careless of employees while working

Operation

Hygiene and safety food

Customers can

poisoning, or the store will not

be approved by Food safety department

9

Not having a careful check on suppliers' products when receiving;

the due date and the origin of products

6

Controling the food quality before taking in the store and spending more

necessary to have the quality products

Operation

Theft of physical items

products, asserts 6

Caused by store people, or maybe in-store people which are employees

out-5

Arranging at

employees at a time to ensure the security and installing CCTV

6

Leak of private store's account,

addtition, not preparing the digial security is also a reason

4

Hiring a skillful professional to help protect digital

informatin And ensuring all systems are password and firewall

protected

Operation Inventory

shortage

Do not have enough

products for customers, and

it leads to customers not coming back

4

Look at previous period’s sales to create a suitable plan and allow

us to better gauge how much

we will need this period

5

customers, the store is famous in the area

7

Focusing in improving the

IX HUMAN RESOURCES MANAGEMENT

- Create job descriptions for the policy positions and assess the work's completion

- Interview candidates after developing criteria and an evaluation scale

- Training:

+ Choose the right kind of training program

+ Plan the training procedure (use the 4 processes I've identified: need analysis, planning, organizational development, and effectiveness assessment)

+ Practice defining training needs and classifying those needs by subject

+ Construction training budget

+ Choice of training providers (based on the method 5W: Who - What - Why - Where

- When)

- Create a professional path that includes training, competency assessments, and pay

- Wage regulations, pay scale construction, salary and tax laws, and personal income tax provisions The salary scale was constructed and amended

- Payroll operations, social security, unemployment insurance, and health insurance

- Labor legislation:

+ Resolving conflicts and labor disputes

+ Collective bargaining agreement

+ Legislation to address labor disputes, strikes, labor discipline, the regime leave, and severance

- Scheduling: Work planning and management

X RECOMMEND SOLUTION

Research & find

Proceed with

construction

Construction supplier must have a contract between partners to secure all the materials must be fullfil enough to complete the site and the project manager should get the architecture for their recommendation

Find Supplier

Supplier must have a contract between partners to secure all the materials must be fullfil enough to match the requirement and the project manager should have a meeting of their partner suppliers to list out the wish number of product as well as the quality and price discount for importing large quantity

Operation Working and finding directly with a factory, farm or producer to ensure

everything is fine from origin of food and quality

Operation Inside the store, installing the alarm so that when there is an incident, the

staff inside will alarm And outside the store will need a security guard

Operation Make a training tutorial digital protection course for employees as well as

manager

Operation

Be flexible with vendors: If a vendor isn’t offering what you need, try checking with other local vendors to see if they have any supply – even if it’s just a smaller supply to get you by for a bit

Operation

Offer lucrative discounts and promotions or incentives and loyalty programs for customers This will attract them to come and come back in the next time

For operation process we have a detailed solution which are:

- The convenience store needs to have full combo fire prevention equipment and the alarm bell in a bad situation The manager should arrange 2-3 staff members to work together