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COMP 1009 Project Management Assignment - Middle East College, Oman

Task - Read the XYZ Hypermarket case study carefully and analyze the situation.

Report details - Develop your proposal as a group of three members into a professional document of not more than 12 to 15 Pages, and create a PowerPoint presentation to discuss the Case study requirements. The document should include a Title page, Table of Contents, Main report section, Appendix (optional), Bibliography and evidence of communication between the team members.

Answer - System Management Prospect for XYZ Hypermarket

Introduction

Oman's hypermarkets like Mars Hypermarket, are one of the key drivers for food sales, providing around 70% of the total grocery store sales in Oman as per the Alpen Capital. As a consequent, Omani hypermarket and supermarket sales are predicted to increase by 15% from US$3.4bn in 2016 to US$3.9bn by 2019, as pre the agriculture and food study organization Farrelly & Mitchell (muscatdaily.com, 2019). On the other hand, supermarket or hypermarket like other businesses include many departments and just one accounting or billing software is never going to fulfil the needs of management. To develop the total business, a hypermarket needs an entire solution so each department could be under an effective and systematic management. This project will deal with implementation of Enterprise Resource Planning in three new stores (Nizwa, Dhofar and Sur) of XYZ Hypermarket. This report will underline planning for necessary stages, problem identification, scope of the project feasibility study, risk identification and others regarding successful project implementation.

Problem Definition

The problem definition here underlines the application of Enterprise Resource Planning into several locations of XYZ hypermarket as mentioned above. The main organizational aim is to develop the information system and interconnectivity among the new stores with the headquarter. There is a need to receive monthly sales and inventory reports from all the different stores. Any problem or challenges could happen at any moment hence this is significant that this implementation and maintaining software system should have support from the vendor side to solve the issues. Not only shifting information of the present stores but also organizing it through remote access, with the help of IP address and HTTP network is a challenging task. The entire process needs effective data connectivity and data security. All stores must work on a monthly basis for changes in CRM, warehouse management, accounting, purchase and cost records, quality and batch control, billing and others. This software application would assist in developing the workflow performance and the existence of stocks in the respective store locations.

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Analyse the factors that are needed to maintain High Quality Management throughout project development.

Hypermarkets are consuming all kinds of deceits to attract clienteles from spreading innovative plans to offer them constancy discount. Some aspects impacting the maintenance of high-quality hypermarket information system, which must be controlled the entire system remotely and from the head office. There is a need for full planning strategy or policy to maintain and control the ROI. This suggests that after implementation of this software how the stores and main branch's management process become cost effective and efficient in context of time management. On the other hand, to manage the entire project, managers of different stores or system manager of XYZ hypermarket should be capable to understand the end-to-end solution without lacking of connectivity and any type of communication issue. Some of the integrated features related to implementing ERP that needs extra care are listed below;

• Implementation: ERP could be applied phrase wise hence this permits management to apply effectively it in the business. It will take some time to allow workers to work normally by availing the system while the ERP is being applied.

• Integration: In case the ERP system is to integrate with other present software, management must ensure the existing software allows easy incorporation as this need for all the sections in the business to be capable with one another for the accord in workflow (Costa et al. 2016: 668).

• Scalability and stability: With time all the stores develop and this must not call for a new system. Thus, make sure that the ERP could increase along with the business so that management will not have to change to an entire new system after the expansion of the business.

• Customizable: The system management department should notice its customizable option while getting the ERP so that the business could carry on with its originality.

• Support: After buying the software, it is the duty to get in touch so that doubts could be cleared and problems solved (Costa et al. 2016: 669). This type of feature is applied in software for supermarket.

• Accessibility: In case of any type of disruption in the business operations, this software should be able to access important reports of sales and accounts.

• Inventory management: The ERP software should check on the inventory level so that stores never go out of the stock. This software should allow warning levels and alerts when the stock is in minimum level.

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Conduct a feasibility study to access whether this project can be taken up or not.

The feasibility study to access capability for the project to be taken up or not has been detailed below;

Project description: The project is concentrated in implementing ERP system for better connectivity and communication between three different stores with XYZ main office.

Goal: Through this ERP implementation XYZ hypermarket tends to ensure that all the stores are interconnected with each other and with the head office. This system should cater requirements related to receiving monthly sales and inventory related reports from the all the stores.

Timeline: For this project, two months have been allocated (Starting form 3/6/2-19 to 17/7/2019).

Budget: Liability and assets study for this project have been done. After conducting this study, it has been assumed that Total fixed cost of the outlets is $193,000. Total of $ 298,000 would be spend.

Purpose: key purpose of this project is to develop technological capabilities of different stores and operate an integrated process that could help in time management, resource management and increase cost efficiency.

Market analysis: From the market analysis study, it has been identified that ERP system in the operations of hypermarkets in Oman is in high demand. Therefore, it is imperative that XYZ hypermarket should implement this process to manage their business accountability and inventory system from a remote access point. It could be said that market demand is high as well as the organizational demand (Atef and Al-Balushi, 2017: 11).

Resources: This organization has developed the human resources and technical resources for project implementation. A planning for training, resource allocation and resource plan will be adopted for effective project implementation.

Project process: The project processes underlined are problem identification, developing scope, application of brainstorm process to examine options, data migration, checking the infrastructure, customization process, change management, transfer of technology, project testing and on-going support evaluation.

Management and teams: The system management team of XYZ hypermarket is responsible for the project.

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Results of the study

From the above components of feasibility study, it has been understood that, this company is capable for implementing and managing the ERP implementation project as per their needs. On the other hand, if the processes and calculation are followed as underlined, this project would bring success and develop capability of the business in store and internal business management.

Scope of the project and the stakeholders involved

The total scope of this project lies is based on the application of the software management system in all the new store locations. To make sure an integrated communication among the stores and main office, it should be systematic and track the workflow as well as performance of the different stores and availability of stocks present in the stores. Development of information management system in a cost effective and less time manner is the main scope of this project. The internal stakeholders involve in this project ate software engineers, project and system managers, system analysts, employees in the stores, and CIO. The external stakeholders involved in this project are clienteles, owners and data users.

Requirements Specifications in terms of setting up a new hypermarket systems and interconnectivity (network) between them

Functional Requirements

The different stores must ne well communicated with each other. There must be an effective information connectivity among the stores. The internet speed must be high. There should be a virtual private network, which offers seamless connectivity, securing the internal and confidential information of the organization.

Resource Requirements

There is a need of wide base of working force to effectively finish the project on time. System managers and skilled trainers are need to train the employees and ensure them ready for the implementation project. System analysts' need to increase high-end implementation therefore that the total operational work could be done at ease. Additionally, this could be more cost efficient. Network engineer's need to ensure of the servers, which manages total processes. Information administrator's need to manage a huge database of the organization.

Quality Requirements

Software evaluation engineers to be allocated to do the quality checking before a new service gets launched in the market. They would conduct different methodologies like waterfall model architecture while performing different examination operations. all these measurements are to be taken to do the quality checking.

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Compare two Project methodologies and identify the best methodology for this project.

Two project methodology comparison

The two project methodologies underlined here for comparison are Waterfall and Prince2. Among the two listed above, most effective project methodology would be selected for implementation of the ERP according to the requirements and challenges. The waterfall method would offer this project an entire concept of the time needed, size and expense variables (Janssens, 2018: 262). On the other side, Prince2 method will assist in creating efficient connectivity among macro and micro team members throughout the project. Though with Waterfall method, project expectation and wants of every project achievement step would be cleared. While, the other project methodology enlisted, the organization will address roles and duties of every responsible people in the project. The former project methodology will assist in providing an efficient project system; while Prince2 method is not effective in applying changes after implementation (Hughes et al. 2017: 782).

Recognition of ideal methodology

From the above project needs for XYZ hypermarket, the appropriate methodology would be Waterfall. This project method would assist in elaborating and attaining different aspects that are important for this project and would ensure it ore flexible for implementation. With this method, stakeholders' involvement in each step, communication will be established.

Provide scheduling plan

The schedule plan is based on work breakdown structure, Gantt chart and network diagram analysis.

No.

       Task

Duration

Start day

End day

Predecessors

1

Problem identification

1 day

3/6/2019

3/6/2019


2

Developing scope

3 days

4/6/2019

 6/6/19

1

3

Application of brainstorm process to examine options

5 days

7/6/19

11/6/19

2

5

Feasibility study

1 day

12/6/19

 12/6/19

3

6

Scope of project

3 days

13/6/19

 15/6/19

4

7

Data migration

3 days

16/6/19

 17/6/19

5

8

Requirement Specification

2 days

18/6/19

19/6/19

6

9

Functional Requirement

1 day

20/6/19

 20/6/19

7

10

Resource Requirement

3 days

21/6/19

23/6/19

8

11

Checking the infrastructure

1 day

 24/6/19

 24/6/19

9

12

Project Methodologies

2 days

25/6/19

26/6/19

10

13

Compare tow project

1 day

27/6/19

 27/6/19

11

14

Scheduling Plan

2 days

28/6/19

28/6/19

12

15

Work Breakdown Structure

2 days

30/6/19

 1/7/19

13

16

Gantt chart

2 days

2/7/19

3/7/19

14

17

Risk documentation

1 day

4/7/19

4/7/19

15

18

Customization process

2 days

5/7/19

6/7/19

16

19

Change management

4 days

7/7/19

10/7/19

17

20

Transfer of technology

2 days

11/7/19

12/7/19

18

21

Project testing

3 days

13/7/19

 15/7/19

19

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Gantt Chart

System Management Prospect for XYZ Hypermarket.jpg

Network diagram analysis

The network analysis path for this project is attached below;

System Management Prospect for XYZ Hypermarket1.jpg

Risk Identification and Mitigation plan

Identified risks are listed below;

  • The first risk would be transformation of business needs. Change in the business schemes and policies are evident with changing market needs.
  • Compatibility between ERP and new business technologies
  • The software update could be delayed
  • Software stability could be another important risk that system management need to look for before implementation of ERP
  • Inadequate integration infrastructure
  • Ineffective change management processes

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Scenario planning

The scenario plan suggests different types of scenarios, which will come up at the time of operation or implementation of the ERP software in the organization. This is also known for scenario thinking (Cascetta et al. 2015: 32). This is underlined as a systematic process for the management. Generally, there are eight steps in this evaluation process and after the evaluation possible and most significant risks for the company has been identified that are listed above. The framework is listed below;

System Management Prospect for XYZ Hypermarket2.jpg

The above eight steps XYZ hypermarket has followed for identification of the major risk factors.

Costing Plan/Estimation plan

The costing of the hypermarket has been divided into couple of parts. The following context will discuss the operating cost of the facilities or the super market.

Statement showing probable operating cost of hypermarket

Fixed cost per month- (for all the facilities run by XYZ)

 

 

Salary of the managers

Salary of the accountants

Salary of the cleaners

Rent of the shop

Electricity charges

Tax paid to government 

 Total fixed cost of the outlets

Variable cost per month - (for all the facilities run by XYZ)

Wages of the employee

Repair and maintenance

Deprecation of machinery

Total variable cost of the outlets

 

Total cost for one month of operation

 

 

 

40,000

55,000

46,000

14,000

26,000

12,000

Cost per month

 

 

 

 

 

 

 

193,000

 

 

 

 

105,000

 

 

65,000

16,000

24,000

 

298,000

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The above table signifies the operating cost of the shop for a month for all its outlets. The total amount of cost for a year will be equal to [298,000 × 12= (3,576,000)]. As seen in the above figure, the cost of operating the hypermarket is standing over 3 million a year. The company must make good decision regarding the matter.

The money generated from each of the hypermarket need to satisfy the cost of the hypermarket. The company can use weighted price method for conducting its business. A close look into the possible amount of spending during the opening time of the hypermarket is very much needed (Belwal and Belwal, 2014: 722). The following discussion contain the budget that need to be spend in order to open the new outlets for XYZ company.

 

Building cost

Labour cost

Place research cost

Market research cost

Land value of the place

Total cost

32,000

12,000

16,000

14,000

55,000

129,000

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Resource Plan

Having a resource plan for a company is always helpful and provide unprecedented support for a project. However, resource planning can be different based on the heads of resources. In the following context there will be a resource planning based on the heads of the resources.

Resource planning for human resource

Who

What

When

Others

Name

Role

Department

Start date

End date

Total hours in a week

Status

Comments

John

Accounts manager

Accounts

6/5/2019

8/2/2020

56

Level (A)

The accountant maintains and calculate all the records of the company.

Smith

Store manager

Store

6/8/2019

2/5/2020

63

Level

(C)

His responsible is to maintain the store and keep of record of the inventory.

Husan

Daily employee

Store

6/5/2019

8/2/2020

28

Level

(D)

His basic work is to look after the cleaning and other process, which includes keeping a tab on the employees who work on daily basis at the outlets.

Salim

Area manager

Administration

6/5/2019

6/8/2021

42

Level

(A)

His work is to maintain and keep the business flowing in the

Zakir

Marketing manager

Administration

6/6/2019

8/5/2022

42

Level

(A)

His work is to keep the business flow faster and smoother. He takes a good care of the advertisement and other policy.

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Resource planning for total project setup

Nizwa

Dhofar

Sur

Total man power in %

Total money investment in %

Total time to get everything setup

Total man power in %

Total money investment in %

Total time to get everything setup

Total man power in %

Total money investment in %

Total time to get everything setup

14

24

8 months

42

52

6 months

44

24

7 months

The above table shows the percentage of money that needs to be invested in order to accomplish the goal of setting up of facilities with a direct link to the headquarters. The XYZ Company has fixed a set of money and it is distributed in the facilities as per the market demand.

Training Plan

The type of training needed for the employee

Outcome of the training or goal of the training 

Name of the trainer

Time line for the training

Number of employees need training

Total cost of training

Consumer handling

Better sales quality

Husan

5th September to 19th December

16

54,000

Data shorting

Better data storage facilities for the company

Susan

8th May to 6th august

6

12,000

System navigation

Better and faster mode of business

Zack

8th April to 16th July 

22

10,000

Communication

Faster and professional mode of communication

Roy

8th February to 16th march

12

6,000

The above training plan shows the training program that will be held by the company in order to make the business better and smoother.

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Recognize the influence of the selected project on the society/organization.

What benefits project can bring to society/organization?

The influence of the selected venture will change the daily life cycle of the region. Sur will be vastly influenced, because it is a small town with a healthy population the life style of this place is very simple yet matured. The venture of XYZ Company into this place will create an immense amount of change to the local vendor's life. The local vendors will be greatly affected and their business may shut down entirely. The hypermarket will sell every kind of product starting from nails to the furniture. The price of the product along with the service it is willing to provide will attract a vast audience. Therefore, not only Sur but also Dhofar and Nizwa vendors will be greatly affected. On the other hand, the local community will enjoy cheaper product with better quality and utility. The company will not only change the daily life style of the people but also bring change in the local community. The buying behaviour of the local community is also going to change. These places do not have good hypermarket therefore the consumers are adopted to the local vendors offerings.

Does the project promote ethical standards?

This project will help in promoting the ethical standards of the organization and employees to work in an honest way and make sure all the operations are performing as per the needs of the company (Padhi and Mishra, 2017: 98). Prime focus would be on consumer satisfaction and no employees would be forced to join the project. worker selection would be as per the skills. The project success and profitability would be catered for company development and workers' welfare.

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Conclusion and reflection of Individual work and overall case study learning experience.

The above discussion is based on a hypermarket and the induction of a centralized command and control centre for all its outlets. The company has made significant progress in the past couple of years as a result it is looking for venturing into new locations within the country. The discussion includes SWOT analysis schedule plan and many more to have an effective presentation of the discussion. A thorough examination of costing plan along with resource plan and training plan has been carried out.

Reflection

The work was divided into three different categories. Each of these categories were given to such a person who had areas of improvement in this sector. I was the first person to create this team therefore I chose to conduct problem definition and factor analysis. I had communication issues therefore, I chose this area so that I can learn to interact with the people and develop my people's skill. The analysing factor was lacking within me therefore, I had to learn all the small things about analysing a project. Having the case of XYZ Company helped me a lot to improve my analysing factors.

I was the team leader and I had to choose the accounting analysis part of the project. This is one area where every one of my team members are excellent. Making costing plan was something that the second member had to learn. It also improved my team handling skill and sharpen my leadership skill. Having to identify the risk and resource plan was something that I was very much used too. However, this task helped me to sharpen my knowledge about these matters as well.

I was the last member of the team as a result I was left with only the left-over part of the discussion. The other members conducted SWOT analysis as well as learned about project methodology. Training plan is something that I had to learn from the book as well as the internet. However, I can proudly accept the fact that I can record and modify the tanning plan for a project.

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