Week 1 - Assignment

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University Of Arizona *

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633

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Business

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May 30, 2024

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Uploaded by MegaDragon6282

Project Charter Development Alina Zargaryan The University of Arizona Global Campus BUS 633: Project & Operations Management Dr. Jon Webber March 4, 2024

Introduction International Logistics Services (ILS) is focusing on expanding globally, and as part of this effort, they have acquired a warehouse and truck fleet in the Czech Republic. ILS is working on a project to improve the operational efficiency of its newly acquired warehouse and transportation facility in the Czech Republic. This project strives to bring the facility to ILS's rigorous corporate standards while also reflecting the company's dedication to the triple bottom line philosophy, which emphasizes profit, people, and the planet. One of the company's key goals is to secure Walmart as a customer in their latest market. Regrettably, the warehouse's previous owner left numerous issues for ILS. The project aims to enhance the facility's operational standards, resulting in substantial annual net benefits and attracting business from important clients such as Walmart operations in the Czech Republic. Scope and Limitations This project aims to improve the operational efficiency of the recently acquired warehouse and transportation facility by International Logistics Services (ILS) to align it with ILS's corporate identity and standards. "A project requires an organized and planned effort with a level of detail that is progressively elaborated when more information is discovered" (Kloppenbeorg et al., 2023, p. 4). Important areas to focus on include enhancing warehouse organization, upgrading equipment to lower maintenance costs and fuel usage, providing formal employee training, and creating documented procedures. The project must adhere to a budget limit of $100,000 and a strict timeline, necessitating completion by the end of Year Zero. ILS aims to reach an operational standard that justifies the $400,000 investment and enables the facility to generate a net benefit of $150,000 annually for the first five years. The project paves

the way for ILS to attract business from Walmart and other customers, capitalizing on the facility's enhanced operational efficiency and alignment with ILS's values and mission. Business Case International Logistics Services (ILS) strategically acquired a warehousing and transportation provider in the Czech Republic to extend its global operations. Revitalizing this facility is essential to aligning it with ILS's high standards of employee welfare and environmental sustainability. One must prioritize value related to achieving a desired result, meeting a need, or fulfilling a business case (Kloppenbeorg et al., 2023). The quote highlights the importance of ensuring that actions and decisions align with the fundamental goals and values that lead to success and fulfillment in business and project pursuits. Corporate Strategy ILS can effectively implement its corporate strategy in the Czech Republic by utilizing its proficiency in inventory management and last-mile delivery services, all while staying true to its core values of profit, people, and the planet. “The triple bottom line pushes corporations to assess financial viability and environmental and social implications, perhaps reevaluating profitable activities based on their ecological and social costs” (CSR and The Triple Bottom Line, 2019). ILS can enhance its market position in the Czech Republic by building strong connections with local companies and grasping regional market trends. By combining internal operational excellence with external market integration, ILS will enhance its standards and effectively execute its corporate strategy in the Czech Republic, paving the way for future global expansions.

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Corporate Social Responsibility (CSR) International Logistics Services (ILS) can demonstrate its commitment to Corporate Social Responsibility (CSR) by focusing on operational efficiency, environmental impact, employee welfare, community engagement, human rights, and sustainable profitability. ILS should prioritize reducing its environmental impact by implementing green logistics practices. The company values and supports its workforce by offering fair wages, safe working conditions, and ongoing learning opportunities. ILS can enhance its community impact and demonstrate its commitment to societal welfare by participating in outreach programs. ILS must maintain human rights standards to promote ethical labor practices. Finally, ILS will solidify its position as a socially responsible enterprise by achieving sustainable profitability. ILS can effectively incorporate these six elements into its business model to embody its CSR values, ultimately boosting its reputation and long-term success. Net Present Value ILS can utilize net present value to assess the company's return on investment in acquiring the new warehouse and truck fleet. "Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time" (Fernando, 2024, para. 1). Due to the company starting negatively because of issues with the company, the company needs to have a positive return. With an interest rate of five percent, the NPV will be $447,908 (see Appendix). When the NPV is positive, the project's returns are higher than its costs, considering the money's time value, making it a financially feasible project.

Milestone Schedule Milestone Tasks Resources Timeline Project Initiation and Team Formation Forming a project team, defining project scope, and stakeholder Project team Month 1 Safety and Environmental Audit Conduct a comprehensive audit of the warehouse operations to identify safety compliance issues A specialized audit team, overseen by ILS Health and Safety Manager Month 2-3 Technology and Process Optimization Implement a WMS and optimize logistics processes for efficiency The ILS IT department in collaboration with managers Month 4-5 Employee Training & Development Program Develop training program focusing on safety, and operational HR department in coordination with departmental heads Month 6-7 Energy Efficiency Reduction Implementation Upgrade to energy-efficient equipment and implement waste reduction strategies Operations team, supported by advisor Month 8-9 Pilot Testing & Feedback Loop Establishment Conduct pilot testing of the new systems and processes and establish a feedback A cross-functional team including IT, operations and customer service Month 10-11 Stakeholder Review and Strategy Alignment Review project progress with stakeholders, including a focus on alignment with Walmart's business values Project Managers, with Business Development Manager and ILS Executives Month 12 Citation: Kloppenborg et al., (2023). Contemporary project management: Plan-driven and agile approaches (5th ed.). Cengage Learning. Risk, Threats, and Opportunities Project Enhancing operations and safety in the warehouse and for the truck fleets to secure Walmart as a customer for the new company in the Czech Republic. Opportunities Develop a strong presence in the Czech logistics sector by using cutting-edge technology to improve efficiency and customer service, adopting eco-friendly logistics methods in line with CSR ideals, and strengthening relationships with Walmart to attract other large clients. Risks Integrated new logistics systems that may delay service, financial risks of budget overruns, and market competition that could affect profitability and market share. Threats Regulatory compliance issues with local laws, technological risks, cybersecurity, and human resource challenges in managing turnover, training, and aligning the workforce with ILS's corporate culture. Stakeholders Executives, Operations, Finance, Project Management, IT Department and Human Resources Resources, Plan and Stakeholders Necessary resources include money, highly qualified staff, cutting-edge technology, and efficient communication systems that can span large distances. The team will consist of individuals with diverse talents and viewpoints, including project managers, logistics specialists,

IT professionals, and local workers. Project managers will supervise the project's development and ensure that it aligns with stakeholder expectations and strategic objectives. Experts in logistics, situated in the Czech Republic, will concentrate on operational execution and modify procedures for regional settings. IT specialists will be in charge of integrating technological solutions that improve productivity and cross-border cooperation. Operations will prioritize effective communication, using technology to conduct virtual meetings, and providing frequent, organized updates to enable smooth collaboration to create a high-performing team. Despite the geographical distance, a focus on developing a shared vision and cultural awareness will be maintained. Local employees in the Czech Republic will be directly involved in operational activities, U.S.-based management. The local government of the Czech Republic ensuring compliance, and, most importantly, clients like Walmart whose needs and standards will drive many project decisions. Every stakeholder group will ensure the project complies with local regulations and company goals by providing the required support, direction, and resources. Conclusion This project at ILS's Czech facility is a strategic initiative to improve operational efficiency, sustainability, and aligning with the company's core values. This approach covers technological upgrades, process optimization, employee training, and environmental considerations, aiming to turn the facility into a prime example of logistical excellence. The detailed milestone schedule, risk assessment, stakeholder identification, and opportunity analysis, ILS has a solid foundation for successfully implementing this project. This initiative focuses on addressing short-term operational requirements and laying the foundation for future growth and expansion, with a specific emphasis on building and maintaining important client relationships such as Walmart.

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References Films Media Group (2019). CSR and the triple bottom line. In Films on Demand. Fernando, J. (2024). Net Present Value (NPV). What It Means and Steps to Calculate It. Investopedia. Kloppenborg et al., (2023). Contemporary project management: Plan-driven and agile approaches (5th ed.). Cengage Learning. The University of Arizona Global Campus. (n.d.). Walmart case study . Canvas@UAGC. The University of Arizona Global Campus. (n.d.). Project management case study—Logistics service improvement project . Canvas@UAGC.

Appendix Column1 Calculating NPV Column2 Column3 Period Cash Flow Discount Rate 5% 0 ($500,000) 1 150,000 2 150,000 3 150,000 4 150,000 5 150,000 6 400,000 NPV $447,907.66

Week 1 - Assignment

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