USMAN SHARIF

JAMIL AHMED

MUHAMMAD WAQAS

42 ( Project
Manger)
43 (Finance
Manager)
60
(Administrator)

Outline:

Introduction
Project Life Cycle
Vertical Mergers

Feasibility Report

Evaluation of Project
Conclusion

Outline:

Introduction

Project Life Cycle

Vertical Mergers

Feasibility Report

Evaluation of Project
Conclusion

Outline:

Introduction
Project Life Cycle

Feasibility Report
Evaluation of Project
Conclusion

Outline:

Introduction
Project Life Cycle
Feasibility Report

Evaluation of Project
Conclusion

Outline:

Introduction
Project Life Cycle
Feasibility Report
Evaluation of Project

Conclusion

MISSION
We are committed to providing you with unmatched
customer service, punctual delivery, and beautifully
prepared, fresh, healthy and tasty food for you, your clients
and your colleagues every day. We strive to ensure that you
look good and to handle every function to meet your specific
needs.

OBJECTIVES :
Plan a menu that gives several key options and a few
more basic recipes, to draw different types of foodies
to our establishment.
Offer a higher-than-usual level of customer service.
Achieve some level of financial growth in each
quarter, so that we have the resources to continue to
operate and market our business.

Pre-Production Activities:
Acquisition of
Production
Facility

Registration
and Licensing
of Business
and Brand

Acquisition of
Equipment &
Furniture

TestProduction

Laun
ch
Hiring &
Training of Staff

Installation of
Equipment

PROJECT LIFE CYCLE PHASES

Conception Phase
Definition
Definition Phase
Phase
Planning
Planning &
& Organizing
Organizing
Implementation
Implementation Phase
Phase
Project Clean-up Phase

Project Idea develops. Idea

comes when someone is
trying to overcome certain
problems.

PROJECTLIFE CYCLE PHASES

Conception
Conception Phase
Phase

o The name of the caf

Definition
Definition Phase
Phase

o Caf size/capacity

Planning
Planning &
& Organizing
Organizing

o Location/site
o Technology/process selection

Implementation
Implementation Phase
Phase

o Cafe Layout

Project
Project Clean-up
Clean-up Phase
Phase

o Equipment and machinery etc

PROJECTLIFE CYCLE PHASES

Conception
Conception Phase
Phase
Definition
Definition Phase
Phase
Planning
Planning &
& Organizing
Organizing
Implementation Phase
Project Clean-up Phase

o Cafe infrastructure and enabling services

o System design and basic construction
package
o Organization and manpower
o Schedules and budgets
o Licensing and Govt.clearances
o Finance

PROJECTLIFE CYCLE PHASES

Conception
Conception Phase
Phase

o Put into action.

Definition
Definition Phase
Phase

o Preparation of specifications for

Planning
Planning &
& Organizing
Organizing
Implementation
Implementation Phase
Phase
Project
Project Clean-up
Clean-up Phase
Phase

equipment and machinery .

o Installation of equipment and
machinery.

PROJECTLIFE CYCLE PHASES

Conception
Conception Phase
Phase
Definition
Definition Phase
Phase
Planning
Planning &
& Organizing
Organizing
Implementation
Implementation Phase
Phase
Project
Project Clean-up
Clean-up Phase
Phase

o To make orderly or presentable.

o Drawing, documents, files,
operation and maintenance
manuals will be handed over.

KEY TO SUCCESS
1
2

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control costs at all times, in all areas and implement a conservative approach to
growth policy.

Sell the products that are of the highest quality.

Keeping the customers happy with our product categories.

55

Promote good values of company culture and business philosophy.

66

Provide 100% satisfaction to our customers and maintaining quality.

KEY TO SUCCESS
1

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control
Control costs
costs of
of all
all items,
items, in
in all
all areas.
areas.

Sell the products that are of the highest quality.

Keeping the customers happy with our product categories.

55

Promote good values of company culture and business philosophy.

66

Provide 100% satisfaction to our customers and maintaining quality.

KEY TO SUCCESS
1

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control costs of all items, in all areas.

Sell
Sell the
the products
products that
that are
are of
of the
the highest
highest quality.
quality.

Keeping the customers happy with our product categories.

55

Promote good values of company culture and business philosophy.

66

Provide 100% satisfaction to our customers and maintaining quality.

KEY TO SUCCESS
1

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control costs of all items, in all areas.

Sell the products that are of the highest quality.

Keeping
Keeping the
the customers
customers happy
happy with
with our
our product
product categories.
categories.

55

Promote good values of company culture and business philosophy.

66

Provide 100% satisfaction to our customers and maintaining quality.

KEY TO SUCCESS
1

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control costs of all items, in all areas.

Sell the products that are of the highest quality.

Keeping the customers happy with our product categories.

55

Promote
Promote good
good values
values of
of company
company culture
culture and
and business
business philosophy.
philosophy.

66

Provide 100% satisfaction to our customers and maintaining quality.

KEY TO SUCCESS
1

Create a culture of joy, passion, innovation to differentiate from our competitors.

Control costs of all items, in all areas.

Sell the products that are of the highest quality.

Keeping the customers happy with our product categories.

55

Promote good values of company culture and business philosophy.

66

Provide
Provide 100%
100% satisfaction
satisfaction to
to our
our customers
customers and
and maintaining
maintaining quality.
quality.

JAMIL AHMED

40

PROJECT RISK BY PHASES

INITIATION
INITIATION PHASE
PHASE

PLANNING &EXECUTION
PHASE
CLOSE UP PHASE

Risk is associated with things

that are unknown. More things
are unknown at the beginning of
a project

PROJECT RISK BY PHASES

PLANNING
PLANNING
&EXECUTION
&EXECUTION PHASE
PHASE

INITIATION PHASE
CLOSE UP PHASE

Once the project is approved and it moves

into the planning stage, risks are identified
with each major group of activities.
The risk plan needs to be updated with new
information and risks checked off that are
related to activities that have been
performed.

PROJECT RISK BY PHASES

CLOSE
CLOSE UP
UP PHASE
PHASE
o Items lost by movers
o Furniture and other products may be
damaged
INITIATION PHASE
PLANNING &EXECUTION
PHASE

Product Pattern
We have 7 main categories in our menu.
o Breakfast
o Coffees
o Beverages
o Starters
o Meals
o Desserts
o Pizza

Feasibility Study

Food industry is the flourishing sector in Pakistan. It is contributing

largely in the economy. We will consider the following:
o Location
o Security
o Market
o Management
o Financials

LOCATION STUDY

On the main site of Bahria Town, this caf will surely draw
customers from the cross-section of the society.

The following factors will back-up our foresight:

Security
The Land & Building cost

University Life is coming to B.T soon....

The Wish Cafe is a full-service caf located at the

Bahria Town

The caf features a full menu of moderately priced "comfort" food

influenced by Italian and French cooking traditions, but based upon
time honored recipes from around the world.

The Wish Cafe target market is customers who appreciate quality

coffee and who want an excellent product in an attractive,
undoubting environment.

SECURITY

The place will be safe.

Secretly installed cameras will monitor every move to ensure the

security of the customers.

Security guard will guarantee the safety of the clients.

LAND & BUILDING COST

This project will cost about Rs.49,300,000.00 which is roughly

broken into the following:

Cost of 2,000 sq.ft shop:

Construction Cost:
decoration costs.)

Accessories and Equipment:

Rs.40,000,000.00
Rs.6,000,000.00 (All civil &

Rs.3,300,000.00

Management

A general manager will be on the top of hierarchy with 2 Asst.

The Wish Cafe will operate 16 hours a day from 8 A.M- 12 A.M
The sales personnel will make a customer feel that he is the only
one served amidst the queuing multitude.

Management Hierarchy

Project Time Table

The project will start serving 100 daily customers within 20 weeks.
Legal procedures will be completed in first 6 weeks.
Contractor & ID will complete their job in 10 weeks.

CONTD..

Hiring of staff & assigning duties will take approximately 21 days.

Promotional activities will be through electronic media.

Official opening will be on 24th June.

Technical Aspect

Size & Layout of the building

Product Pattern
Machinery & Equipment
Location Study
Revenue & Cost Projections

Size and Layout

Cont..

Details

% Sq.ft

Size Sq.ft

Stock Room

10%

200

Kitchen

25%

500

Dining hall

55%

1100

Bathroom

5%

100

Total

100%

2000

Machinery & Equipment

Items
Espresso Machine
Bulk Coffee Grinder
Pastry Case
Blender
Sandwich Prep Unit
Under Counter
Refrigerator
Storage Refrigerator
Ice Maker
Freezer
Oven
Panini Grill
Three Compartment
Sink
Sound System
Phone
Credit Card machine
Prep Tables
Potato Cutter
Security Cameras
Total

Quantity
1
2
1
4
1
1

Unit Price (Rupees)

4,50,000
20,000
1,87500
1,570
4,54,900
500,00

Total (Rupees)
4,50,000
40,000
1,87500
6280
454900
50000

1
1
2
1
1
1

1,30,000
80,000
4,00,000
3,90,000
400,00
9100

130000
80000
8,00,000
3,90,000
40000
9100

1
1
2
5
2
4
28

15000
700
13500
500
2000
20,000
-

15000
700
27000
2500
4000
80,000
Rs.2,766,980/-

CONTD..
Item Details
Dining Table Square
(2X2)

Quantity
15

Unit Price (Rs)

6,000

Total Price (Rs)

90,000

Dining table- Square

(1X1)

10

4,000

40,000

Chairs (Standard 14)

100

1,500

150,000

Kitchen Cutlery Set

Dining Cutlery* (Plate,
Fork, Knife,
Spoon, Glass)
Air Conditioner Split Units
(6 Ton)
Hot Water Geyser Large

2
150

2,500
150

5,000
22,500

31,000

62,000

20000

20,000

Halogen Lights
Wall Lights (Large)
Portable Emergency Light

25
4
4

250
1,500
2,500

6,250
6,000
10,000

Generator (1.5 KVA)

Counter Chairs
Office Table & Chair Set

1
2
1

90,000
1,500
10,000

90,000
3,000
10,000

Waiting Chairs for Take

Away Customers

1,500

7,500

Total

322

172,400

5,22,240

CONTRACT MANAGEMENT

RESPONSIBILITY OF THE CONTRACTOR

Supervising employees.
Planning how the project will be carried out.
Completing the project timely .
Contractor must also take care of payroll
Obtaining
Obtaining materials
materials for
for the
the project.
project.
progress
progress and
and implement
implement any
any changes
changes
Deals
Deals with
with all
all emergencies
emergencies

RESPONSIBILITY OF THE CONTRACTOR

Supervising employees.
Planning how the project will be carried out.
Completing the project timely .
Contractor must also take care of payroll
Obtaining
Obtaining materials
materials for
for the
the project.
project.
progress
progress and
and implement
implement any
any changes
changes
Deals
Deals with
with all
all emergencies
emergencies

RESPONSIBILITY OF THE CONTRACTOR

Supervising employees.
Planning how the project will be carried out.
Completing the project timely .
Contractor must also take care of payroll
Obtaining
Obtaining materials
materials for
for the
the project.
project.
progress
progress and
and implement
implement any
any changes
changes
Deals
Deals with
with all
all emergencies
emergencies

RESPONSIBILITY OF THE CONTRACTOR

Supervising employees.
Planning how the project will be carried out.
Completing the project timely .
Contractor must also take care of payroll
Obtaining
Obtaining materials
materials for
for the
the project.
project.
progress
progress and
and implement
implement any
any changes
changes
Deals
Deals with
with all
all emergencies
emergencies

RESPONSIBILITY OF THE CONTRACTOR

Supervising employees.
Planning how the project will be carried out.
Completing the project timely .
Obtaining
Obtaining materials
materials for
for the
the project.
project.
Obtaining
Obtaining materials
materials for
for the
the project
project
progress
progress and
and implement
implement any
any changes
changes
Deals
Deals with
with all
all emergencies
emergencies

MUHAMMAD WAQAS

60

AGREEMENT
Terms of payment:.
Delivery time

Guarantee
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

60% of the total construction

cost will be paid in advance.
Remaining 40% will be paid
after
completion
of
construction work.

AGREEMENT
Terms of payment
Delivery time

Guarantee
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

The fully furnished site will be

handed over to the designated
party as per schedule. A delay
of only week will be accepted.

AGREEMENT
Terms of payment
Delivery
time
DeliveryDelivery
time time

Guarantee
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

The contractor must ensure the

use of superior quality
material. In case, variation of
5% to 10% in cost will be
allowed

AGREEMENT
Terms of payment
Delivery
time
DeliveryDelivery
time time

Guarantee
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

The contractor must keep all

the
information
highly
confidential

AGREEMENT
Terms of payment
Delivery
time
DeliveryDelivery
time time

Guarantee
Confidentiality
Confidentiality
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

Contractors delay to complete

the site as per schedule in case
of unexpected circumstances
only will be tolerated.

AGREEMENT
Terms of payment
Delivery
time
DeliveryDelivery
time time

Guarantee
Confidentiality
Confidentiality
Confidentiality
Force
Force Majure
Majure
Modification
Modification &
&
Termination
Termination

Both parties reserve the right to

modify or terminate the
agreement.

COMMUNICATION
MANAGEMENT

COMMUNICATION MANAGEMENT
COMMUNICATION WITH THE MEMBERS
1

Communication with all members within the restaurant

will be by the general manager who will be guided by the
owners time to time.

COMMUNICATION WITH OUTSIDERS

To communicate with outsiders general

1111
COMMUNICATION WITH OUTSIDERS

manager will
outsource an ad agency for special events and
promotions

COMMUNICATION MANAGEMENT
COMMUNICATION WITH THE MEMBERS
11

Communication with all members within the restaurant

will be by the general manager who will be guided by the
owners time to time.

COMMUNICATION WITH OUTSIDERS

2

To communicate with outsiders general manager will

outsource an ad agency for special events and
promotions

MAN
MANAGEMENT

HIRING CRITERIA (MANAGER)

1

Experience (Min 2 year)

Supervising Skills

Work Ethic

Ability to hire & train staff

HIRING CRITERIA (MANAGER)

1

Experience (Min 2 year)

Supervising Skills

Work Ethic

Ability to hire & train staff

HIRING CRITERIA (MANAGER)

1

Experience (Min 2 year)

Supervising Skills

Work Ethic

Ability to hire & train staff

HIRING CRITERIA (MANAGER)

1

Experience (Min 2 year)

Supervising Skills

Work Ethic

Ability to hire & train staff

HIRING CRITERIA (CHEF)

11

Experience

Preferred education

(Average minimum 2 years)

HIRING CRITERIA (CHEF)

Experience

211 Preferred education

Associates degree or
higher in Hospitality or
Food Service

HIRING CRITERIA (WAITER)

1

The Ability to Handle Food Properly

Customer-Service Skills

Money-Management Skills

Staff Coordination

5
4

The Ability to Disseminate Information

HIRING CRITERIA (WAITER)

1

The Ability to Handle Food Properly

Customer-Service Skills

Money-Management Skills

Staff Coordination

5
4

The Ability to Disseminate Information

HIRING CRITERIA (WAITER)

1

The Ability to Handle Food Properly

Customer-Service Skills

Money-Management Skills

Staff Coordination

5
4

The Ability to Disseminate Information

HIRING CRITERIA (WAITER)

1

The Ability to Handle Food Properly

Customer-Service Skills

Money-Management Skills

Staff Coordination

5
4

The Ability to Disseminate Information

HIRING CRITERIA (WAITER)

1

The Ability to Handle Food Properly

Customer-Service Skills

Money-Management Skills

Staff Coordination

5
4

The Ability to Disseminate Information

PROCESS OF HIRING
1

Need Analysis

Screening

Eliminating.

Selecting

PROCESS OF HIRING
1

Need Analysis

Screening

Eliminating.

Selecting

PROCESS OF HIRING
1

Need Analysis

Screening

Eliminating.

Selecting

PROCESS OF HIRING
1

Need Analysis

Planning how the Screening

project will be carried out.

Eliminating.

Selecting

TIME MANAGEMENT
CPM

GANTT CHART

GUESSTIMATING APPROACH

We will calculate the expected time through this approach.

Optimistic time ()= 14 weeks

Pessimistic time ()= 18 weeks
Most likely time() = 16 weeks
Equation:
=+4+)/6
=(14 + 4*16+ 18)/6
= 16 weeks

MATERIAL MANAGEMENT
PURCHASE OF MATERIAL
We will contract with Dawn, K&Ns, PepsiCo,
Nurpur, Nestle for the raw material.
For other material we will contract with a local
contractor who will supply us on daily basis.

MATERIAL MANAGEMENT
QUALITY & QUANTITY
We ensure the best quality to our customers through the
selection of the best brands.
Quantity will be based on the daily customer traffic.
Some products will be purchased on weekly basis while
some perishable products will be purchased on daily basis.

FUND MANAGEMENT
SOURCES OF FINANCE
Internal Sources:
Share Capital Invested by the partner =Rs. 1,000,000 x 4
=Rs. 4,000,000/-

External Sources:
Loan Capital:

1 Million will be borrowed by the bank at the annual interest rate of 17%.
The whole amount (principal plus interest expense) is to be paid back to
bank in 3 years.
Monthly payment to bank will be 41,945.
Monthly Interest Expense will be of Rs.14,167 and
Monthly portion of principal amount will be Rs.27,778.

FUND MANAGEMENT

KEY ASSUMPTIONS

Sales will Increase by 15 % per year

Increase in Cost of Raw Materials 10 % per year
Increase in Staff Salaries 10 % per year
Increase in Utilities (Electricity / Water /Gas) 10 % per year
Debt / Equity Ratio 80 : 20
Depreciation
Using Straight line method
Tax Rate is 25%.

RATIOS
NPV:
It is a feasible project as the NPV of our future
cash flows is greater than 1.

Payback Period:
2.1 years.

IRR:
46%

PROJECT CLEAN-UP PHASE

It is the transition phase in which outlet will be
handed over by building contractor.
Drawing, documents, files, operation and
maintenance manuals will be handed over.
Then we will plan the staff and workers
involved in the execution of the project

THANK YOU !