Project Management Plan Focused on Profitable and Sustainable Operations

QUESTION

 

 

ANSWER

 

Introduction

In this present day of globalization, all the organisations are going to participate in long term competition to retain their position. In relation to the automotive industry, implication of modern technology has potential to transform development of this industry. This assignment has focused on Tesla to analyze various aspects of the project related to introducing automatic truck business. This assignment has analyzed potential risks and required costs for this project. Along with a work background structure, this assignment has presented risk mitigation plan for this project. Moreover, benefits of operationalzing business concept of automatic truck have been analyzed in this assignment.

Discussing concept of the business

The authority of Tesla is going to introduce automatic truck to develop the business purposes. Tesla has the mission to accelerate advent of transport by introducing electric cars in near future. This business concept by launching automatic truck has insisted Tesla to step forward to the mission and organizational goals. In recent days, Tesla has brought a biggest revolution in automotive industry by launching automatic trucks. Tesla has begun producing Model 3 over 300,000 pre orders. It can be assumed that the truck will undergo traditional way of crash test ratings. This agenda conducted by Tesla has won 5 stars and recognized as top of trucks.

Identifying potential costs

In order to drive business of automatic trucks by Tesla to a positive way, authority of this organization has focused on identifying potential costs. As per the views of Cuervo-Cazurra (2016), it is important to make a plan regarding budget of operational costs which can help to support this project towards success. The project management team of this organization has estimated general and administrative costs at 200 million. Moreover, transportation cost for this project has been estimated as 865 million. In order to promote the business to a huge number of customers through applying marketing strategies, social media marketing and direct marketing can be considered as effective. This organization has conducted marketing activities to make promotion for automatic trucks that needs to invest costs as operational costs by the authority.

Identifying risks for this project

It is important for the project management team to evaluate possible risk factors which can set barriers to the project. Cost management as well as lack of resources can be considered as potential risks for the project. On the other hand, high rate of competition from existing rivals can set barriers to success of this project of introducing automatic trucks by Tesla. Negative publicity in relation to auto pilot system of Tesla has set hindrances to executing the project. Moreover, according to Kapetaki and Scowcroft (2017), it is essential for the members of project management team to focus on proper strategies to mitigate the risks. Apart from these factors, the members need to identify possible risks to rectify the project to meet organizational goals.

Removal of tax incentives can be considered as other risk factors of executing this project related to automatic trucks by Tesla. It has been identified that user errors in relation to modern system of auto pilot can be considered as responsible for bringing issues for the project of automatic trucks. As per the views of Wheelen et al. (2017), lack of concentration of the people regarding driving program is other risk factor of this organisation. The ethical issue, PETA is able to create pressure to the project management team of Tesla. On the other hand, fluctuation of gas prices and pressure of natural disaster can influence this project related to automatic trucks by Tesla. Competition from BMW, Audi, Nissan Leaf and Chevrolet Bolt can be considered as risk factor for this project. Malfunctioning of autopilot is also responsible for making issues for this project.

Analyzing benefits of operationalizing of business idea

It is important to focus on the process of operational activities of the project through which an organisation can support organizational success. As per the views of Muhammad et al. (2016), the concept of this new business can support effectiveness of the business. On the other hand, the process of executing this project related to automatic trucks by Tesla can be successful as it can support effective operational activities. This agenda taken by Tesla to introduce automatic trucks not only can help them to gain competitive advantages, but also it can help to retain position of Tesla by serving customers.

Identifying key milestones for this project

As a replacement of gas powered truck by Tesla, this organization has planned to introduce automatic truck to provide better quality services to the customers. Through proposing this innovation or new production, authority of Tesla has strengthened demand of the customers. Moreover, this organization has supported green options to the customers. Advanced technologies as well facilities related with this project or the product of Tesla has supported success of this project. Moreover, special features of this project such as high range of batteries. Facilities of this truck through which it can easily get 300 miles per charge can be considered as a milestone of this project. Other options for the automatic truck can support the process which is electronically adjusted. Based on these factors or special features, it can be mentioned that these Special features can be considered as milestones of this project.

Discussing importance of deliverables and resource proceed with the project

Both tangible and intangible goods as well as services can be considered as a result of a project. In relation to the project of introducing automatic truck by Tesla, deliverables are considered as effective elements to complete this project. Through identifying the deliverables, it has been analyzed that this project has intention to deliver results to the customers. As per the views of Aithal (2016), project management team of Tesla needs to develop deliverables for both external and internal stakeholders. It has been identified that information, documents, money, software as well as other equipments can be considered as important deliverables. On the other hand, in regards to this project of Tesla, consultation, implementation of application, contracts, tools and project plan are considered as external deliverables for this project.

Apart from the deliverables, this project of expanding business of Tesla by introducing automatic trucks to beat the competitors needs effective resource management. As per the views of Tulung and Ramdani (2016), along with financial resources, human resources are required to develop project management plan. In respect to automobile manufacturing industry, huge amount of financial resource is required to make the project successful. As this project is based on aspects of developing innovations in automobile industry, technological resources such as automobile parts, battery, USB, Air compressor are required. Moreover financial resources are required in order to implement marketing objectives for this project.

Analyzing importance of these factors to meet the objectives

The objectives of this research project have been met by the activities of the project management team. The activities of the project management team based on project deliverables have supported scope, aim and objective of this project. Though there are some factors which set barriers to the project of Tesla, other activities related to the project work can mitigate the issues. As per the views of Kerzner and Kerzner (2017), the process of analyzing risks for the project can help to identify mitigation strategies which can help to support success of this project.

In order to gain competitive advantages in relation to the business aspects of automobile industry, this project requires high range of innovative as well as technical equipments to retain their position. This project management team has focused on risk management, resource management to execute planning for the project. Based on the views of Harrison and Lock (2017, p.42), based on identified obstacles and risks for this project, project management team of Tesla has achieved success to meet cost-time and scope objectives. As financial planning for the project can help to make estimation of expenditure for the project, in case of this project, members of project management team of Tesla has succeeded to implement the activities related to project management.

Identifying obstacles faced during this project to meet objectives

It is important to analyze risks as well as challenges faced by the project which can help to mitigate possible issues and can set strategies to overcome these factors. According to Eskerod and Jepsen (2016), identified risk and challenges can help to rectify the process. In regards to this project, lack of resources and lack of planning regarding time management can be considered as obstacles which have potential to set barriers to make this project successful. On the other hand, high rate of competition among the rivals can be considered as responsible. Issues regarding alignment of pricing along with position of market are other negative factors which has potential to lower success of this project. Issues related to brand effectiveness and negative publicity regarding auto pilot system are able to set barriers to improvement of this project. Lack of knowledge of the people regarding driving program and removal of tax incentives has insisted this project to face difficulties. Fluctuation of the prices of gas, natural disaster can be considered as responsible for mal-functioning the project. Strong competitors like Audi, BMW, Chevrolet Bolt and Nissan Leaf are also responsible for the project.

Serial no	Risks	Impact
1	Lack of resources	High
2	Lack of time management	Medium
3	Issues on alignment of pricing along with market position	low
4	Issues related to brand effectiveness	High
5	Negative publicity regarding autopilot system	High
6	Lack of knowledge regarding driving program	Medium
7	Removal of tax incentives	low
8	Fluctuation of gas prices	High
9	Natural disaster	Medium
10	Strong competition from Audi, BMW, Chevrolet Bolt and Nissan Leaf	High

Table 1: Identified risks related with project of Tesla

High
Medium
Low

Colour code

Determining risk mitigation strategies

In order to mitigate the risks related with external factors of the business environment it is important the organization to provide evidence to remove stigma regarding negative publicity. On the other hand, the authority as well as project management team needs to develop alternative system to focus on increasing brand value which can serve the customers with effective quality services. Influenced from the views of Aithal (2016), it is important to make effective promotion for the new project to recover the issues. Through focusing on stakeholder analysis, this project management team can mitigate the issues related to project execution. Moreover, in case of this project of automatic trucks by Tesla, it is important to develop training program for the people regarding use of automatic truck and driving program. Based on these strategies,

Developing a work breakdown structure

Project management team of Tesla has focused on three main activities such as initiation, planning and execution to complete the project. Under first phase of the project, initiation, all the team members conduct meetings to consult regarding process of setting objectives. On the other hand, under the second phase of project activity, planning, the authority of Tesla and project management team has decided to make planning to improve resource management and time management. Apart from these, execution, the final stage of this project has supported implication of innovative technologies in relation to introducing automatic truck. Moreover, in this stage, the team has supported the activities like risk mitigation and stakeholder analysis to understand importance of this project. Depending on these tasks, this project by the authority of Tesla can support success for this project.

(Refer to project libre file)

This project management plan has analyzed various aspects of project management which has helped to gain knowledge regarding the process of managing a project. On the other hand, this study has analyzed importance of cost management, time management and resource management. This study has identified possible risks for this project which have potential to set barriers to make this project successful. Apart from these factors, along with both main activities and sub activities, a work breakdown structure has been presented in this study. This study has identified the issues related with this project, moreover, it has suggested some mitigation strategies to solve the issues and to support expected outcomes.

Reference list

Aithal, P.S., (2016). Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems. International Journal in Management and Social Science, 4(1).pp.24-65. Retrieved on 5 April 2019. Retrieved from https://mpra.ub.uni-muenchen.de/71989/1/MPRA_paper_71989.pdf

Cuervo-Cazurra, A., (2016). Corruption in international business. Journal of World Business, 51(1), pp.35-49. Retrieved on 5 April 2019. Retrieved from https://www.researchgate.net/profile/Alvaro_Cuervo-Cazurra/publication/283936016_Corruption_in_international_business/links/5c021277299bf1a3c159421a/Corruption-in-international-business.pdf

Eskerod, P.& Jepsen, A.L., (2016). Project stakeholder management. Abingdon: Routledge. Retrieved on 5 April 2019. Retrieved from https://www.liberquarterly.eu/articles/10.18352/lq.10231/?toggle_hypothesis=on

Harrison, F. & Lock, D., (2017). Advanced project management: a structured approach. Abingdon: Routledge. Retrieved on 5 April 2019. Retrieved from https://www.taylorfrancis.com/books/9781351960717

Kapetaki, Z. & Scowcroft, J., (2017). Overview of carbon capture and storage (CCS) demonstration project business models: Risks and enablers on the two sides of the Atlantic. Energy Procedia, 114, pp.6623-6630. Retrieved on 5 April 2019. Retrieved from https://www.sciencedirect.com/science/article/pii/S1876610217320180

Kerzner, H. & Kerzner, H.R., (2017). Project management: a systems approach to planning, scheduling, and controlling. Hoboken: John Wiley & Sons. Retrieved on 5 April 2019. Retrieved from Kerzner, H. & Kerzner, H.R., (2017). Project management: a systems approach to planning, scheduling, and controlling. Hoboken: John Wiley & Sons.

Muhammad, H., Rehman, A.U. & Waqas, M., (2016). The relationship between working capital management and profitability: A case study of tobacco industry of Pakistan. The Journal of Asian Finance, Economics and Business (JAFEB), 3(2), pp.13-20. Retrieved on 5 April 2019. Retrieved from https://www.researchgate.net/profile/Hussain_Muhammad3/publication/303406921_The_Relationship_between_Working_Capital_Management_and_Profitability_A_Case_Study_of_Tobacco_Industry_of_Pakistan/links/5741f72908ae9ace8418783c/The-Relationship-between-Working-Capital-Management-and-Profitability-A-Case-Study-of-Tobacco-Industry-of-Pakistan.pdf

Tulung, J.E. & Ramdani, D., (2016). The Influence of Top Management Team Characteristics on BPD Performance. International Research Journal of Business Studies, 8(3), pp.155-166. Retrieved on 5 April 2019. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2993464

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. & Bamford, C.E., (2017). Strategic management and business policy (p. 55). Boston: pearson. Retrieved on 5 April 2019. Retrieved from https://testbank24.com/pdf/Solutions-Manual-Strategic-Management-and-Business-Policy-Globalization-Innovation-and-Sustainability-14th-Edition-Wheelen.pdf