Title:
Introducing “KottuLabs” to Adelaide CBD, South Australia
by
Name:
Hanqiu Zhou
Katherine Pietsch
Wathsala Vidunayana
Word Count: 5313
KottuLabs is a successful fast-food chain from Colombo, Sri Lanka; established in 2018 with vision of creating the perfect Kottu for their customer’s tastebuds, KottuLab has gain a steady growth over the last few years locally and internationally. With presence in Melbourne and Sydney, KottuLabs explored the unique opportunity presented in Adelaide, South Australia with the high demand and lack of supply for Kottu within the central business district due to increase in migration of South Asian International students. KottuLabs fast-food chain will be introducing a KottuLabs restaurant in Adelaide CDB via well-organized project management practices.
With an understanding of project management, a team of three consultants (authors) have been assigned by KottuLabs management to oversee and manage this project of introducing the KottuLabs to South Australia. Adhering to the culture of South Australia, identified demand, and maintaining authenticity of the Sri Lankan fast food, project team has executed a clear aims, goals, and objectives within project boundaries. Further, a project scope is identified within the project boundary carving the in and out of scope for effective planning. A total budget of $69,210.30 including contingency reserves has recognized by the project team which will spans through a period of three months of project implementation and six phases of execution. Moreover, project consultants have developed a complete Work Breakdown Structure (WBS), Gantt Chart, Network Diagram with detailed itemised project timeline in order establish effective and accurate project planning. To mitigate the potential threats through dynamic internal and external pressures, necessary planning for stakeholder management and risk management has taken throughout the project life cycle.
Table of Contents
“Kottu” is an authentic Sri Lankan cuisine and the most popular street food of the country. “It’s the most special dish to remind you of home” to all Sri Lankan (Lam 2014). The rhythmic loud sound of chopping kottu mixture with two large steel chopping blades brings more attractions towards the dishes (Mishan 2015). Likewise, kottu dishes reflect the food commonly consumed by Sri Lankans and a growing trend of popularity has identified within the young people (Jayawardena & Herath 2017, p. 43). While the person who prepares the kottu is called “Kottu Bass” in Sri Lankan urban language; they make the kottu with shredded godamba roti, scrambled eggs, carrot, leeks, onion, and vegetable oil mixed together with Sri Lankan curry powder and selected meat option.
With four friends, Yatta, Don, Himym and Poobala and their love for the kottu, have formed “KottuLabs”, the Sri Lankan fast food chain in suburbs of Colombo since February 2018 (Kottulabs 2022a). Also, four friends had their vision of creating the perfect Kottu for their customer’s tastebuds. KottuLabs has accomplished steady business growth over the years through flawless and dedicated customer-oriented services and expanded their business locally and internationally. Currently, KottuLabs located internationally in Toronto, Canada, Melbourne and Sydney, Australia. Alongside their focused vision of creating raving fans over Kottu dishes, KottuLabs has catered their menu such as: “Crowd Favourites” which provides most favorites kottu of the customers and “Make your kottu” option allowing to their customers choose how they want their kottu (Kottulabs 2022b). Company is committed to growing and evolving customer requirement and accept the changes suggested by customers.
According to Department Education, Skills, and employment (2022), during the period of January to March 2022, total of 26,696 international students migrate to South Australia whereas 2% of them are from Sri Lanka with growth of 9% compared while 37% of the overall international students migrate from countries of South Asia. This statistically proven that there is a higher growth potential in South Asian student selecting Adelaide and South Australia as their educational destination; and Department has predicted and expected that this may continue to grow with the international broader opening for international students after two years (Department Education, Skills, and employment 2022). With the current steady increase in migration of the South Asian students to Adelaide for their higher studies, it has created a high demand on the authentic South Asian fast-food dishes. Even though, Indian restaurants are commonly found in Adelaide CBD and suburbs, specifically a handful number of Sri Lankan restaurants are located Adelaide suburbs. The ‘Kottu’ selection range is very limited to these restaurants and is not keeping up with the demand. Further research confirmed that no Sri Lankan restaurant has opened in ‘Rundle Mall Precinct’ and ‘Adelaide Central Market’ which were considered as most recognized urban dining venues in Adelaide, (Rundle Mall 2022; Adelaide Central Market 2022). Moreover, as a Sri Lankan fast food restaurant is not located within the Adelaide Central business district (CBD) creating a major gap in demand and supply of the Sri Lankan fast food, more precisely Kottu. With this identified gap, it allows a unique opportunity for a Sri Lankan fast food chain to be introduced in Adelaide CDB.
The aim of this project is to introduce the “KottuLabs”, Sri Lankan fast food chain into the South Australian Market. Adelaide CBD was chosen as the designated market location. This project will eliminate the gap of supply and demand over ‘Kottu’ while capturing potential market and provide ‘Kottu’ lovers more approachable choice within the Adelaide city for Sri Lankan fast food.
Project Goals:
To establish a “KottuLabs”, Sri Lankan fast food restaurant in Adelaide CBD with a most ideal urban fast-food location and necessary skilled staffing.
To convert the restaurant location towards customer friendly environment and authentic fast-food experience.
To introduce the Sri Lankan most famous and authentic ‘Kottu’ fast food with different selection of both vegetarian and non-vegetarian option via “Crowd Favourites” to the fast-food market in Adelaide, South Australia.
Create the “KottuLabs” brand name through necessary advertising as the most designated brand for Sri Lankan authentic fast food in Adelaide CBD, South Australia.
Moreover, Bjerke and Renger (2017, p. 125-126) stressed that understanding the goals and objectives of a project important derived a better scope and successful project; “SMART” objectives introduced by George T. Doran, in 1981 is an effective tool and mechanism to for implementation of effective project management goals.
Table 2.1 – SMART Objectives. Source: Bjerke and Renger (2017, p. 125-127).
SMART
Objectives
Specific
Setting up the KottuLabs restaurant in Adelaide CBD and hand over the restaurant to owners when it is ready to open.
Measurable
Achieve and complete project within 3 months over budget of AUD 62,923.00
Achievable
Achieved the first two stages of the project which will drive other four stages
Realistic
Working with expert third-party vendors (talent acquisition, marketing, real-estate) will ensure success in the first two stages
Time-bound
Identified six stages in project life cycle will be monitored throughout project
Moreover, a project team is formed to carry out this project introducing “KottuLabs” to Adelaide CBD and will be supported out the project management practices effectively through several stages of executions. Initially, understanding the project scope through the in scope and out of scope is crucial the project management and project continuity; it allows project teams to focus the attention within the project boundaries. Moreover, with this expansion to a new urban city, multiple parties may involve towards this project and analyzing these stakeholders may deliver a better stakeholder management and enhanced communication between the stakeholders and project team. Furthermore, implementing a project plan may safeguard the success of the project. The project team may establish the ‘Work Breakdown Structure’, ‘Network Diagram’ and ‘Gantt Chart’ while deriving the life cycle of the project for better project planning. For better contingency planning, a risk analysis is to be performed while cost analysis and budget will be established to align the project with said project aims and goals.
Investors, vendors, consumers, the government, communities, the media, and others who impact or are influenced by project results are referred to as project stakeholders. (Eskerod et al. 2015, p. 9). Stakeholder analysis also includes identifying stakeholders, assessing their influence, and putting solutions into action. (Jepsen & Eskerod 2009, p. 336; Paul 2005, p. 36). To ensure that stakeholder management is consistent and successful, the project team developed a Stakeholder Management Plan (see Appendix A). The management plan defines the project’s stakeholders–their roles, interests, and power. It also identifies the potential stakeholders that may benefit or hurt the situation.
The first essential stakeholder to analysis is consultant. Sherry, Kaite and Wathsala as consultants play an organizational and supervisory role in the project to ensure the running of the project. This project would benefit from the effective time management, good collaboration with other companies and employees, and the capacity to keep the project on the right track.
The second group is the KottuLab Owners who are from Sri Lanka. They provide the fundings for the project, the recipe of Kottu and the project’s organizational framework. With their help, the restaurant could operate and the Kottu is able to retain its Sri Lankan flavor. And KottuLab’s management is a worldwide management that gives a fundamental operating approach. If the chief manager intervenes too much, the project’s development may be slowed in the process.
During this project, the Adelaide Central Market is also quite significant. It provides space for the project to ensure the KottuLab shop operates. A favorable location draws more people, and the Central Market’s security staff protects both consumers and store owners. If a business is located in a distant region, not only will there be few visitors, but there will also be security threats, such as robbery, which might result in property damage.
Finding a store for this endeavor could be easier with the aid of a real estate agent such as Ray White Adelaide. By compiling the necessary documentation and contacting the property owner, an efficient agency might save time. Furthermore, these organizations are well-versed in housing resources, own a diverse set of data sources, and are capable of gathering property information. However, an irresponsible agency might increase the cost of renting a home or cause communication issues with the owner that are not resolved in a timely manner.
Similarly, the initiative also involves renovation teams as well as decoration companies like Panthom Engineering. A professional decoration firm knows how to design and layout a store successfully. The cost of the project may be further decreased by selecting and employing inexpensive materials rather than costly ones, and the unusual design can attract clients.
Besides, the government departures make contributions to the project. For example, the SA Health, Government of South Australia, it lists the food and safety regulations to protect the guests’ health. It is fundamental that Kottulab get the permission and follows these regulations and customers do not have to be concerned about food safety.
Next is the ingredient suppliers such as Costco, Coles and other supermarkets. These firms provide the materials of Kottu for the project. The project team may negotiate a long-term deal with a dependable supermarket that supplies materials for the restaurant’s daily operations, it might also decrease the cost of food. On the other hand, an unreliable grocery supplier may not have fresh items with low quality and high prices.
Last but not least, the employees are the key part of the project. The crew prepares and serves the meals to ensure a pleasant eating experience for guests. It would be attractive with delicious Kottu and attentive service. If the cuisine and service are dissatisfied, it would lead to the loss of customers. The details are attached in appendix A.
Scope management is a process of selecting a proper procurement system and employing effective measures to control the change of original scope (Hilali, Charoenngam & Barman 2019, p. 1576). Heerkens (2014, p. 25) suggested that changes in scope have a similar negative impact on the organization’s economy and should be evaluated to compare positive and negative impacts. Similarly, Turk (2010, p. 54-55) pointed out that the creep of scope has negative impact on the success of the project and influence the cost and schedule and as Heerkens (2014, p. 22) analyzed, the expansion of scope will lead to the increase of workload and cost. Therefore, rather than increasing the scope mid-project, more careful investigation and planning should be done to determine an appropriate scope.
The Kottu, a kind of fast food made from roti, eggs, onions, and chili pepper, is originated from Sri Lanka, and favored by both local people and tourists. The goal of this project is to open a restaurant located in Central Market and it offers Kottu as its main food, which introduces this Sri Lanka cuisine and share this unique South Asian food experience to local residence as well as international students in Adelaide. Adelaide is chosen because there are few Sri Lanka restaurants, and Central Market is selected for its good geographic location. Therefore, opening additional restaurants in other places in Adelaide or in Australia will be considered as out of scope. Meanwhile, since our project only focus on Kottu, developing other kinds of food as main dishes during the project is out of scope. Soft opening and restaurant continuity is also out of scope.
The estimated time required by the project is around 3 months from 6th May 2022 to 8th August 2022, including six stages. The first two stages are critical to the project as it is to find a suitable location in central market for restaurant and hiring KottuBass (Chef) which will span for 64 days. And the rest of the four stages are building fit out, menu and pricing, marketing and design, and project handover last for 77 days. The whole project will end after the restaurant officially opens for business in August 2022, and chief will take over as manager after that.
There are six main stages which are finding the location, hiring chiefs and related crews, renovation, setting menu and price, employing marketing and advertising service, and handover. Finding location of restaurant requires the team find a place in central market with higher potential to attracts costumers with lowest cost to achieve the maximum profits. Renovation refers to the decoration process of restaurant, and it should demonstrate authentic Sri Lanka culture. After that, hiring the chiefs and their crew is a critical stage for a restaurant to ensure its quality of food. With staff and restaurant ready, project should work on menu with the help of chiefs and set a proper price which is affordable to costumers and profitable to owners. After passing the last stage, next task is to hire agents, organizations, or companies to conduct marketing research and find out the potential consumers to place advertisement. The coming critical stage is to apply for license the restaurant needs for providing food and beverage service to public with the information gathered in previous stage. The last stage is handing over the restaurant and providing a detailed project report. Online food delivery platform will be contacted and well negotiated partnership with, after passing the last stage.
The project is expected to cost $69,210.3, and it varies by stage. The major cost is operation cost which includes rent, overheads, human resources cost and shop fit outs prior to the handing over the restaurant. The project is supervised by the consultants Wathsala, Katie and Sherry and meetings of stakeholders are coordinated by them before the project starts to set proper scope, strategies, and plan for the project. After the project starts, they will schedule regular briefings to ensure that everything goes according to plan.
Planning for the KottuLabs project included creating several in depth charts and graphs. A detailed Work Breakdown Structure (WBS) was created (included in Appendix G) covering the breakdown of project stages – initiation, planning, implementation, and project closure. A detailed Gantt Chart (GC) (included in Appendix H) was used to schedule the required resources for tasks in the specific order they are required over the life and timing of the project and a Network Diagram (ND) (included in Appendix I) to highlight and define the critical pathway. As many of the tasks are human resource based and dependant on several outside contractors, co-ordinating and organising the timeline along the critical path will require close monitoring and regular communication with all stakeholders.
Project planning is solidly associated with project success, with no research showing contradictory findings (Meredith, Mantel & Shafer, 2015, p.204). Time spent on effective planning can save time during the execution phase of a project, as long as planning doesn’t tip over into over overly detailed estimates and ‘analysis paralysis’ that can take too long to produce (Meredith, Mantel & Shafer, 2015, p.204). Agonising over or producing extremely detailed estimates can waste precious time and resources when estimates can and do change over the life of the project – as they are only estimates (Armour, 2006, p.19).
The purpose of project planning is to define a list of directions in enough detail to direct the project team in; what must be done, when it needs to be done, what resources are needed, and when those resources need to be available (Meredith, Mantel & Shafer, 2015, p.204).
The GC (included in Appendix G) outlining the project tasks, required resources over the life of the project includes 6 parts from initiation to closing and handing over the project, they are;
Finding and leasing a suitable shop
Hiring the Chef/Shop Manager & Kitchenhand
Shop fit out
Menu creation & pricing
Marketing & design
Shop ready for opening and project closure
The GC planning helped to highlight some key constraints of this project such as;
Finding a suitable building and completing the shop lease stage is essential before being able to start the shop set-up stage. Hiring the Chef/Shop manager is also crucial as they are integral to the shop set-up stage as well as the subsequent stages. As these first two stages could take considerable time to complete, they have been contracted to experts as the actual time taken to complete these tasks could change. Knowing the shop will be in the Central Markets allows these first two stages to be run concurrently, helping to shorten the total time-length of these stages. Once the shop fit-out stage starts the Chef/Store Manager and managing external contractors become the key resources with the project management team available to fill in where unexpected but possible delays occur. The final marketing agency tasks of designing the menu and advertising are also dependant on the Chef/Store Manager’s timeline of interdependent tasks.
Even the best made schedules can change for a range of reasons from inadequate planning to unforeseeable circumstances or events requiring adjustments to be made to the scope (Pearson, 2014). Utilising the GC and ND highlights where the project’s critical pathway is, and where extra resources could potentially be added (Pearson, 2014). In this case where the Building Lease and Chef position are critical to the subsequent tasks, extending the project end date would be a more cost-effective option and have the least negative affect on the project rather than trying to crash tasks to meet original opening date (Pearson, 2014). Whereas speeding up the shop fit-out, menu creation, and marketing could be possible by applying extra resources or paying extra for faster contractor services and shipping. Because the Chef position at this point is costing the project a set weekly salary, delays that could affect the opening date should be minimised to reduce these costs. Communication with all stakeholders is the key, reporting all progress whether good or bad early in the project allows for successful adjustments in scope, costs, or resources to deliver a successful project (Morris, 2008).
Although limitations of a GC include not displaying delays as they occur, it can be edited and updated to reflect issues as they arise and update these effects on the timeline and resource scheduling as well as being used to accurately track and display tasks that run concurrently, have interdependencies, and those have been completed (Lee & Shvetsova, 2019 p.7). GCs organise and visualise activities, resources and time in order of occurrence but over focusing on sticking to the schedule can make project managers miss other important aspects of the project such as value creation, relationships, and new opportunities (Geraldi & Lechter, 2012 p.585).
According to Bisson (2015, p. 22), estimating is a time-consuming process, and the final figures are impacted by a plethora of elements, including scope, project type, estimating resources, client type, unknown variables, potential hazards, and more. The main criterion for project success is the completion of any project within the specified budget. The availability and efficient management of numerous resources are critical to the success of any project. At each step of construction, previous and proper arrangements for the provision of resources such as type and quantity of material, people, machinery, and funds are necessary (Rahman, Memon & Karim 2013, p. 67). Therefore, estimating is significant to the success of projects; detailed budget is included in Appendix F. Katie, Sherry and Wathsala are the project management team that hired as consultants and get the salaries. The first step of setting up KottuLab shop is leasing the building through searching and hiring real estate agents which would take about 26 days and cost around $5,200. And the process also involves the signing of an insurance contract with an insurance company that will cost $2,000 and obtain the approval for Lodge Food Business Notification through Adelaide Council.
The second stage is hiring staff including chef, kitchenhand and front of house that would become a key part in the project. This operation will take around 38 days with $4,498 and our employees will be paid hourly each day. Finding an employment agency would cost a lot due to the requirement of our project, the chef is also as a manager in the KottuLab shop, which needs specific skills. Thus, finding the right person will be more expensive. Furthermore, the salary varies with the position, the chef’s income will be greater because he is the primary actor in this establishment, while kitchenhand and front of house are paid relatively less, because the job requirements are not rigorous for them.
Coming stage is the building fit out with multiple and complex tasks need to do, such as find the steel hot plate, order commercial fridge, painting the shop and other individual tasks. We are going to spend 20 days in total with the cost of $17,765. Researching and booking kitchen appliances like commercial fridge, commercial freezer and steel hot plate might cost $2,875, $1,875, and $3,360. Also, the installation of equipment needs to check the maintenance issues. Other individual tasks, for example, ordering point of sale system and cash register demand attention to the correct operation of the devices and network maintenance.
The following step is focus on creating the menu and the price of ingredients. We might spend 17days to create menu, test it and adjust it if necessary. Then we cost menu items and finalize the retail menu. The budget for this stage would be $5,110.
Moreover, with the help of marketing and design companies, it takes 39 days and $7,870 to create KottuLab’s logo, install signs of name and menu, design the menu (both eat-in menu and delivery service menu) and advertise our shop. Contracting marketing and design firms still takes up a significant portion of our budget plan if we want to be attractive to the customers.
Finally, near to the end of our project, handover of the restaurant, which takes two days with the cost of $1,280 to purchase consumable ingredients and produce a report for handover.
Overall, the estimated budget is $62,923. The cost of our project and duration for each section differs due to the diverse responsibilities they play in the project. However, the budget includes 10% contingency reserves that we need to consider because it could compensate for the uncertainty inherent in cost and time estimates, as well as unpredictable risk exposure. Therefore, the total budget should be $69,210.3 after calculating the contingency reserves which is $6,287.3.
Uncertainty and risk are constantly composed with projects by their nature and operating environment (Pinto 2020, p.265). project such as opening a restaurant to a new market may undergo high risk with the internal and external influences. In his studies, Pinto (2020, p.265) explains project risk as an uncertain occurrence or condition that may occur with a positive or negative influence over the goals and objectives of the project. However, Bisson (2014, p.24-25) states that “planning for positive risk means you’re in a position to take advantage of opportunities” whereas risk is not always categorized as negative and accepting the risk may lead to managing the potential project risk efficiently with applied necessary prevention and improvement. Similarly, project risk management is foreseeing and anticipating the possible and unexpected conditions or circumstances before the commencement of the project which may occur outside the control of project stakeholders but use a systematic approach to make educated decisions over minimalizing the impacts to the project (Pinto 2020, p.265-281; Arrow 2008, p.2). Moreover, Pinto (2020, p.265) has stressed that potential changes in strategic features such as project aim, goals, project scope and boundaries, and project budget need to be considered as project risk. Identifying, analyzing, responding, and controlling the project risk through the project is a continuous responsibility of the project management team.
In his studies, Pinto (2020, p.268) stressed that risk management follows four different steps such as: identifying the risk, analyzing the consequences, mitigating the risk and control the risk. Expanding KottuLabs to a new market has typical risks as every other project. This project may carry risk around the timeline, budget, cost, selection of venue, and hiring staff whereas these general risks to be analyzed with regards to level of consequences. The “Risk Impact Matrix” is a tool which allows project managers to reflect on the possible projects risk with the likelihood of its’ occurrences Pinto (2020, p.271). The “Risk Impact Matrix” adapted from Pinto (2020, p.272) to perform a qualitative analysis of the risks surrounding this project and included in the Appendix B. This matrix will indicate the probability of specific risks with classifying low, medium, high, and extreme category. Contrasting on the drafted Risk Impact Matrix indicates that, medium and low likelihood of risk available which may create consequences from high, medium, and low, especially on the key tasks and milestones. Similarly, Pinto (2020, p.273), has illustrated a quantitative method of analyzing the project risk considering both probability of failure and consequences of failure; this quantitative risk analyzing mechanism is adapted and utilized on this project to analyze the risk. In this analysis, probability of failure has considered with ‘Maturity’, ‘Complexity’, and ‘Dependency’ while consequence of failure was measured with ‘Cost’, ‘Reliability’ and ‘Performance’. Also, these attributes were calculated through score of ‘Low’ (0.3) to ‘Major’ (0.9) and included in Appendix C. As result of the analysis Risk Factor (RF) was calculated as 0.496 whereas it is medium risk based on the rule of thumb. Moreover, quantitative risk will be analyzed further by the experts working with owners and consultants of the projects.
Project risk mitigation is a strategy, or a process prepared to lessen the negative impacts and effects from potential risk (Muriana & Vizzini 2017, p.338). According to the Pinto (2020, p.274), effective risk mitigation strategies is one of the most significant stages in risk management; and risk mitigation can be achieved by determining risk: ‘accept risk’, ‘minimize risk’, ‘share risk’, and ‘transfer risk’. In contrast, Bisson (2014, p.24) expressed that risk management approaches should be same for both positive and negative risks; requires to recognize the risk which may impact the project, but positives risks should be improve, exploit, or share them instead mitigating those risks. From the qualitative and quantitative risk analyze performed in this project, the task of deriving the risk mitigation approaches can be performed; analyzed risk mitigation are included in Appendix D. Accepting the risk is one the option project team may consider regardless it is a negative or positive risk whereas evaluating risk is adequately important to consider that any action is necessary (Pinto 2020, p.274; Bisson 2014, p.25). In this project, multiple risk with low likelihood and consequences are recognized and project team may decide whether action is required. Bisson (2014, p.25) explains that sharing a risk is distribution of risk proportionally between various partners of the project or have a third-party vendor involves. Primary high risk identified through the projects such hiring chef, finding an ideal location, and adequate marketing strategy, project consultants has included the experts of the relevant industry to support to lessen the risk and achieve the milestones successfully. Basically, ‘minimize risk’ stage outlined as implementing strategies to reduce the potential risk through serious actions taken on the quality performance by stakeholders (Pinto 2020, p.275). And in this project, consultants are aimed to perform minimize risk stage through low and medium likelihood of risks such as getting the menu done, obtaining the certification, and accessing competition. Similarly, transfer risk is shifting the potential risks included in the project to another party (Pinto 2020, p.275). Whereas in this project insurance program will be used in the overall project, budgeting and location addressing potential risk. Eldosouky, Ibrahim and Mohammed (2014, p.864), explains contingency reserve as forming specific provision within the budget for unexpected components of cost inside the described project scope; and Flyvbjerg and Budzier (2011, p.24) claims that a project must recognize and put efforts over the contingency planning to manage the unescapable risks such as budget overrun. Therefore, in this project, 10% extra marginal budget is allocated within the budget as contingency reserve. As the last stage of risk management, after analysis is completed, the control and documentation stage need to be addressed which forming a knowledge hub for upcoming projects based on the experience gained (Pinto 2020, p.268).
Project Risk Analysis and Management (PRAM) is an integrated system of risk management via efforts to encompass the risk management through a complete life cycle of project while presenting a broad methodology applicable for many projects background and address all the important features of the project risk management; this was developed by The European Association for Project Management (Pinto 2020, p.281; Arrow 2008, p.3). With this project of expanding KottuLab restaurant chain to a new market may bring the risks of understanding the environment, staffing, marketing, acquiring ideal location, supplies, and government regulations which may create demanding risk throughout the project. To identify and mitigate these risks, a perfect methodology must be utilized. In the PRAM methodology, there are nine phases that interconnected to each other; being successful on all type of project application during last few years and has a comprehensive and broad view of all important aspects risk management methods (Chapman 1997, p.273). Therefore, consultants of this project adapted the PRAM methodology to identify, evaluate and apply necessary risk management approach; an adapted version of PRAM from Chapman (1997, p274) is available in Appendix E for further review. Moreover. Assigned project consultants may continuously monitor risk throughout all stages of the project as indicated in the Gantt Chart (Appendix H). And project consultants are being vigilant over the requirement of adjusting the risk mitigation plan while recognizing new risks that may rise because, all the risk are ongoing and subject to continuous change.
There is a great demand for authentic South Asian fast-food meals, with the growth of South Asian students studying in Adelaide. However, there are just a few Sri Lankan eateries in the Adelaide suburbs and the ‘Kottu’ variety in these restaurants is quite restricted and cannot keep up with demand. Therefore, our project, the KottuLab restaurant, aims to create the brand name in Adelaide and introduce the most famous food ‘Kottu’ that comes from Sri Lanka.
For improved project planning, the project team analyse the scope and stakeholders to make contribute on the connection between stakeholders and project teams. The important stakeholders are consultants: Sherry, Katie and Wathsala, who play a role in the project to monitor the running of the project. The second group of stakeholders is the KottuLab Owners who are from Sri Lanka and provide the recipe of Kottu.
The scheduling approaches’ main strategy is to create a network of activity and event linkages that visually depicts the sequential relationship between project activities. Creating a “Work Breakdown Structure,” and “Gantt Chart” through determining the project’s life cycle is an effective way in project planning.
A risk analysis has been conducted for better contingency planning, while a budget was prepared to match the project with the stated project aims and goals. Since all risks are ongoing and susceptible to constant change, project consultants are keeping a close eye on the need to alter the risk mitigation strategy while recognizing new risks that may arise. The project team has set several milestones to monitor and control the process, for instance, finding a shop location, hiring the chef and project handover. Because of the different roles they play in the project, the expected price and time for each segment varies. In the process of building renew and ordering utilities is quite costly which might be $17,765. Besides, the procedure of marking and designing could be the key issue to dress out that would cost $7,870. Finally, these engage in the process of offering a complete picture of KottuLab, emphasizing the relevance of the connections between each major project activity.
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Stakeholders
Stakeholders
Type (Internal/External)
Interest
Stakeholders Potentials
High/Low
To help
To harm
Wathsala
Internal
Play an organizational and supervisory role in the project to ensure the running of the project
High – the effective time management and good collaboration with other companies and employees
High – poor planning can lead to unexpected outcomes
Katie
Internal
Play an organizational and supervisory role in the project to ensure the running of the project
High – the effective time management and good collaboration with other companies and employees
High – poor planning can lead to unexpected outcomes
Sherry
Internal
Play an organizational and supervisory role in the project to ensure the running of the project
High – the effective time management and good collaboration with other companies and employees
High – poor planning can lead to unexpected outcomes
KottuLab Owners
Internal
Provide the recipe of Kottu and the organizational framework
High – the Kottu could retain its Sri Lankan flavor
High – without providing full recipes, resulting in food that is not as tasty as expected
KottuLab management
Internal
Give a fundamental operating approach
High – the project is on the right track
High – if the chief manager intervenes too much, the project’s development may be slowed in the process
Real State Agency (Ray White Adelaide)
Internal
Find a location for the restaurant and help signing the lease agreement
Medium – a suitable location, reasonable price
Low – poor location and high agency fees
Hiring Agency (Global Talent Recruitment)
Internal
Find staff with specific skills
Medium – appropriate agency fees
Low – unreasonable payment
Marketing agency (Resolution Digital Australia)
Internal
Do the market research for the project
Medium – accurate targeting of customers, good advertising
Low – poor definition of potential customers
Adelaide Central Market Board
External
Sign the lease contract and receive the rent and fees
Medium – help to solve problems in daily operation
Medium –unreasonable requirements affect the operation of restaurant
Adelaide Central Market Authority
External
Set rules and regulations to manage
High – management system ensures the safety of the restaurant
High – if the system of management is unconscionable, it would have a bad impact on the operation of the restaurant
Adelaide Central Market Staff
External
Provide maintenance, cleaning, security and other services
Medium – save the money that the restaurant does not need to pay extra fees in cleaning and security area
Medium – pay the extra fees in cleaning and security area
‘Kottu Bass’
Internal
Manage the staff, run the restaurant and cook the Kottu food
High – effective management motivates staff to work hard
High – useless management leads to loss of customers and decreases the revenue of the restaurant
Employees
Internal
Provide services for guests
Medium – good service attracts more people
Medium – poor services might lead to the loss of customers
Customers
Internal
Bring the revenue to the restaurant – not specific to Our consultant team
Low – the customer is the main source of revenue
Low – without customers, the shop will be closed
Potential Competitors
External
Compete with the KottuLab – not specific to Our consultant team
Low – promote to change strategies and find a more suitable way of doing business
Low – reduce the income of the KottuLab
Adelaide City Council (City of Adelaide)
External
Monitor the operation and taxation of the restaurant, provide a license to operate
High – it is essential to get the license of operating
High – without the license, the restaurant would close down
SA Health, Government of South Australia
External
Monitor the quality of the food in the restaurant and provide a license
High – it is essential to get the license
High – without the license, the restaurant would be closed
Costco and Other Supermarkets
Internal
Supply the ingredients
Low – good quality of ingredients could maintain the daily operation
Low – high cost and low quality of ingredients
Renovation Team (Panthom Engineering)
Internal
Renew the restaurant
Low – provide a good dining environment and an original Sri Lankan experience for customers
Low – unattractive design and decoration, the less environment- friendly materials
Insurance Company (Allianz Insurance)
Internal
Provide insurance for the restaurant to reduce losses in the event of an accident
Low – some compensation in case of fire or theft
Low – expensive fees and unreasonable insurance terms
Food Delivery Companies (Uber, Doordash, Menulog)
External
Sell and deliver food
Low – expand sales channels; make more people know about the Kottu
Low – charge expensive platform fees; long deliver times affects the taste of food
Table 7.1 – Risk Impact Matrix. Source – Pinto (2020, P.272).
Risk
Likelihood
Consequences
Environment
Impact
Understanding the new environment
Medium
High
External
Bring less attraction and recognition to the project.
Hiring an experience Chef (KottuBaas) from Adelaide
Medium
High
Internal
Delay the project or discontinuity of the project.
Renting an established restaurant location in the urban area of Adelaide CBD
Medium
High
Internal
Delay the project or discontinuity of the project.
Hired Chef has management skills
Medium
Medium
Internal
Ineffective management of the location.
High implementation cost & budget
Medium
High
Internal
Delay the project or discontinuity of the project.
Certification and Licensing
Low
Medium
External
Delay the project.
Inadequate Marketing
Medium
High
Internal
Delay the project. Bring less attraction and recognition to the project.
Cratering the menu fitting the South Australian market
Low
Low
Internal
Delay the project.
Food and ingredient storage
Low
Low
Internal
Delay the project
Government health and safety regulation
Low
Medium
External
Delay the project
Equipment and supplies
Low
Low
Internal
Delay the project
Competition
Low
Low
External
Bring less attraction and recognition to the project.
Food Delivery Service
Low
Low
Internal
Missing out on potential sales
City lockdown and quarantine regulations
Low
Low
External
Delay the project. Bring less attraction and recognition to the project – takeaway options
Table 7.2 – Probability of Failure (Pf). Source – Pinto (2020, P.273).
Probability of Failure (Pf)
Score
Maturity
Minor (0.3)
Complexity
Minor (0.3)
Dependency
Moderate (0.5)
Table 7.3 – Consequence of Failure (Cf). Source – Pinto (2020, P.273).
Consequence of Failure (Cf)
Score
Cost
Minor (0.3)
Schedule
Minor (0.3)
Reliability
Low (0.1)
Performance
Low (0.1)
Calculations
Pf = (Pm + Pc + Pd)/3
Pf = (0.3 + 0.3 + 0.5)/3
Pf = 0.37.
Cf = (Cc + Cs + Cr + Cp)/4
Cf = (0.3 + 0.3 + 0.1 + 0.1)/4
Cf = 0.2.
RF = Pf + Cf – (Pf)(Cf)
RF = 0.37 + 0.20 – (0.37) (0.20)
RF = 0.496.
Rule of Thumb:
Low risk RF < 0.30
Medium risk RF = 0.30 to 0.70
High risk RF > 0.70
Table 7.4 – Risk Mitigation Strategies – Source: Author developed (2022).
Risk
Likelihood
Consequences
Mitigation Strategy
Understanding the new environment
Medium
High
Get clear understanding on the local culture and include the hired chef on the process.
Hiring an experience Chef (KottuBaas) from Adelaide
Medium
High
Work with hiring and staff agency. Clearly defined the prior experience requirement.
Renting an established restaurant location in the urban area of Adelaide CBD
Medium
High
Working with real state agency to find most suitable location. Insurance the location.
Hired Chef has management skills
Medium
Medium
Work with hiring and staff agency. Clearly defined the management skills.
High implementation cost & budget
Medium
High
Implement a budget with additional margin. Seek expert help if needed. Insurance project with budgeting.
Certification and Licensing
Low
Medium
Get clear understanding on the regulations and seek expert help if needed.
Inadequate Marketing
Medium
High
Work with marketing firm.
Cratering the menu fitting the South Australian market
Low
Low
Include the hired chef on the process.
Food and ingredient storage
Low
Low
Choose viable option of freezer for meat and refrigerator for other items.
Government health and safety regulation
Low
Medium
Get clear understanding on the regulations and seek expert help if needed.
Equipment and supplies
Low
Low
Include the hired chef on the process. Choose local shops for supplies.
Competition
Low
Low
Perform better market analysis.
Food Delivery Service
Low
Low
Work vendors such as Uber.
Table 7.5 – PRAM Methodology. Source – Pinto (2020, P.281).
Phases
Purposes
Deliverables
Define
Combine all applicable & available knowledge about the project.
Defining a clear understanding of project scope around key milestones such as finding location and staff, creating the menu, marketing, and grand opening.
Focus
Identifying the ideal risk management process and apply through operational level
Initiate and identify the possible risk over the defined scope and milestones.
Identify
Identify possible area risk may appear, proactive and reactive actioning with steps when actioning does not work
Apply proactive actioning such as techniques of accepting, sharing, minimizing, and transferring risk with contingency planning.
Structure
Classify and reclassify the order and structure of the risks identified.
Creates a risk priority structure and understanding most risks while addressing risk from highest to lowest.
Ownership
Allocation of risk within the stakeholders to manage
Allocating the identified risk within three consultants and involved third party vendors on the highest risks to be mitigated.
Estimate
Identifying range of confirmed and possible uncertainty
Estimation impact over the possible and clear risk recognized alongside their proposed solution. Ex: – involving third party experts are expensive than performing it internally.
Evaluate
Evaluating the outcome of clear and possible uncertainty in estimate stage.
Critical evaluation of estimation derived in previous phase to preform planning over mitigation steps. Contrasting results involving experts on the job vs perform internally.
Plan
Planning the implementation of project involving risk management plan
Initiate the planning of risk mitigation with all identified risks in scope and milestones which was already evaluated.
Manage
Monitoring, Controlling, and setting plans for instant implementation if needed.
Continuously monitoring the clear and potentials risk identified with the progress over mitigation planning throughout the project life cycle. For examples hiring chef to monitoring experience in Kottu and management skill is crucial for this project.
