Establishment of a Saudi Car Maker Company

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Executive summary

This project management process is about Saudi car Maker Company, the carmaker company aims at establishing a market niche in its operational area. The project implementation involves several activities from the start to the end. The activities are managed by the project manager who is appointed to oversee the implementation process. Some of the major steps in the implementation of this project include; definition of the project scope, permission and legal requirements, budgeting and cost allocation, project commencement, plant establishment, target planning, market target, product launching, and project conclusion. Since the process requires risk management, this implementation process described provides a platform for risk management that the project will encounter in the course of the implementation process.

Introduction

The project implementation process is usually a daunting task that requires commitment from the parties involved. Parties involved in a project are; the project owners, or stakeholders, the sponsors, the steering committee, and the project manager. The entire project is usually left to the project manager, it is, however, imperative to maintain constant communication between the project manager and the stakeholders, this usually aids in risk management and expectation supervision.

In this case, the project involves the construction of a car maker company in Saudi; the company aims to manufacture different models of cars and sell them within Saudi or even outside the country. The company will also create employment for the Saudi people and also play an important role in increasing the countries revenues through taxation that will be accrued in the process.

Business needs

Saudi Car maker projects objectives;

To enhance the portfolio of car manufacturing in the Saudi region and be in a position to serve the clientele more effectively. This will thus be in line with the company’s vision and mission of offering the best designs and models of cars.
To meet the ever-growing demand for different models of cars in Saudi and the entire emirates.
To provide skilled workers with job opportunities in the Saudi region.

Project description

Scope of the project

The Saudi car Maker Company will commence with the establishment of the fund sources as the stakeholders of the project meet for the first time. It will be of the essence for the business to seek legal authorization from the Saudi authorities for the project to progress. The company will aim at providing its market with the best possible models of cars, the market scope of the company will be in the Saudi republic and outside the Saudi region especially Africa where there is a growing demand for different fuel-efficient car models. To the people of Saudi Arabia, the company will provide several skilled labor opportunities to immerse their potentials. To the government, the taxes that the company will pay will aid in increasing the economic growth of the country.

Business objectives: Reasons for undertaking the project

Justification of the project

Development of a highly efficient and world car manufacturing plant that will reduce costs related to importing motor vehicles.
A lot of job opportunities will be available for the local population in Saudi Arabia.
The multiplier effects owing to job creation and increased trade from the export of vehicles will have a great effect on improving the Saudi Arabian economy.
Development of plant will lead to strategic improvement of the car industry and positioning Saudi Arabia in a vantage position in the global car production industry.
Development of a car plant that will tap the skills of the Saudi people and prevent the brain drain of skilled employees in the automotive industry.

Project deliverables

Project deliverables are the outputs of the project in terms of what will be gotten from the project. It includes tangible and non-tangible products as a result of the project’s completion. Deliverables are used to measure the success or failure of a project. In our case the project deliverables are:

Fully equipped and automated car production plant.
A design of a concept car.
Licenses from the Saudi Arabian government.
Availability of skilled labor.
Availability of a substantial market.

Roles and project stakeholders

Various stakeholders have a critical role in ensuring the project’s success in its implementation.

Project sponsor/ owners	They consist of investors who envisaged and provide funding and direction for the project. They make up the board of directors of the company’s project.
Project steering committee	They constitute of selected board members and experts chosen by the board to oversee the project is implemented successfully. Most of the times it consists of experts who have undertaken similar projects.
Project manager	A person selected as the overall head of the project and his/her duties involve general management of the project to meet the expectations of the stakeholders. His main duty is to ensure the project runs within scope and set budget.
Project staff	This group includes of the construction team, designers and ancillary staffs who are actively involved in project activities. They monitor the development of the project from commencement to finalizing of the project.
Stakeholders	It includes every individual and organization that will benefit from the project. They include investors, the Saudi government, citizens of Saudi Arabia. Their role is to initiate the project and also benefit from the project deliverables.

Risk assessment: Any constraints or risks

In any project implementation process, there are a number of risks that are involved; there is thus a critical need to address these risks. The effects of risks in a project cannot be over-emphasized; it can result to total failure, poor service delivery and even late implementation process due to suspension of some project activities. In this sense, it is imperative for the project process to have a pre-planned mitigation plan.

This Saudi car maker company project implementation is a critical process that requires a risk plan in order to mitigate chances of these risks occurring. The best way of solving this problem is through a risk classification process which classifies the risks involved in terms of probability of occurrence as; unlikely, most likely, highly likely. Highly likely have a 50 % chance of occurrence, most unlikely have a 50 % and less chances of occurrence and can thus not be neglected as they can create a substantial stumbling block in the project implementation process. Unlikely risks have the least chances of occurrence but they cannot be over-looked however. For the Saudi car maker company, the table below provides a list that shows the likelihood of risk occurrences.

Risk	Probability of occurrence	Mitigation measures
Lack of funds	Most likely	The management has already availed funds for the project.
Failure of contractors	Most likely	Project assessment is done on regular basis with much focus on the quality management.
Raw materials and car making machinery	Most likely	The management has ensured that the raw materials are exhaustively sourced and the car making machinery imported from Europe in advance.
Project duration exceeded	Most likely	Management has dedicated a project manager to tightly manage the project.

Project Estimates

Project Activity

Saudi car Maker Company will have several steps or activities that are provided in the Ms. Project. The Saudi company aims at providing Saudi Arabia and the outside world with several different new car models. The project is funded by different stakeholders including the government as a result of the fruitfulness of the establishment process. The major activities of the project are discussed at length in the following activity list in order from the start to the finish.

Project start

The project commences with stakeholders meeting to discuss the aims and the objective of the project that is a critical point in the determination of the feasibility of the project. The stakeholders will evaluate the scope of the entire project as a preparation for the project commencement. It is of the essence for the stakeholders at this stage to determine the sources of funds for the project. The sources of funds are critical as it determines if the project will be established or not.

Permission and other legal requirements

In any business establishment, it is essential to meet the obligations of the law. In this kind of business, legal restrictions include the assessment of the environment to determine if the environment is suitable for this type of business. Since this project is a car-making company, there is a need to carefully consider the requirements of the project. After a careful assessment of the environment and the risks that the plant may bring which also includes mitigation strategies will be forwarded to the Saudi authorities for permission and licensing to be granted.

The Saudi city council will be expected to issue feedback that is positive for the project progress to continue. After the payments have been done, the project will progress without any further hesitation. The other important factor in this stage is ensuring that the company sets the legal requirements that are necessary for the implementation process; this will be done and authorized by the project’s stakeholders.

Budgeting and cost allocation

This is one of the critical phases in the project implementation process; sources of funds must be carefully allocated by the steering committee. This will ensure that the project receives all its funds necessary for different phases until the end of the project. Since most sources of funds will be accumulated internally by the stakeholders, other sources of funds will be expected as proposed in the project proposals delivered to the government and other agencies that will require a stake in the business. After the proposals have been delivered to these sources of funds, it will be necessary to get their response to effectively progress with the allocation process.

Upon the response of the agencies and the government concerning the funding of the project, the steering committee will employ a project manager who will oversee the entire process within the stated time.

Project commencement

In this stage, the implementation process will begin with site determination; the project manager will be responsible for the acquisition of the sub-contractors of the plant. The sub-contractors will ensure that the project building process is done according to the specifications of the project manager who will then oversee the process to the completion. As the process of construction progresses, the stakeholders, the project manager, and the steering committee will be having a meeting to discuss several milestones that have been achieved.

Plant establishment

After the construction of the plant, this stage will require seeking raw materials for the plant to start its operation. In seeking the raw materials, several factors will be considered, some of the factors necessary include; cheaper and nearer raw materials, which will reduce the cost

of obtaining the necessary raw materials which may then lead to increased cost of production translating to the high cost of products in the market. The transportation of the raw materials will also be considered, this is to reduce the overall cost of the process, and one way of doing this is through outsourcing. The other important task is contracting with the plant machinery equipment necessary for the process. For the process to begin after acquiring the necessary raw materials and the machinery for the process, it will be the right time to begin employment of skilled workers to work in the plant; this will be done as the stakeholders have their meeting before the next stage begins.

Target planning

After employing the required human resource, it will be necessary to set out their roles in the plant, every employee will be allocated their task according to their skills and professional qualifications necessary for the execution process. It will also be necessary to give the employees necessary training for them to work efficiently in their different fields. Different car designs will also be provided to employees of the company for them to be fully acquainted with the process.

Market target

Since this car-making company will require clientele to survive, it will be essential for the company to employ a marketing department that will play a pivotal role in determining the market for the company. The marketing department will thus be obliged to explore the market options available and be in a position of getting the market niche. In acquiring the market niche, the company will be in a position to grow and increase its scope.

Product launching

After the process of raw materials, employees, and market acquisition, it is usually imperative for the company to showcase its product samples through show organizations. These shows will ensure that the target market is attracted to the products of the company. The unveiling of different car models that the company will be manufacturing will be critical in this stage before the official opening of the company.

Project conclusion

In this final stage, the stakeholder together with the project manager will be required to determine the milestones and the challenges that the project has undergone in its implementation process. Again the stakeholder will set the commencement date of the company. Any other requirements of the project will also be discussed at this phase.

Resource requirements

Since this project is a Saudi car Maker Company, it is a resource-intensive process and it will thus require several resources as follows;

Project manager
administrative staff
Contractors
Steering committee
Raw materials
Car manufacturing machinery
Skilled laborers
License fees

The table below shows the different resources required and their cost estimations.

Resource	Estimated cost $ (000)
Project manager	10,000
Administrative staff	9,000
Contractors	100,000
Raw materials	400,000
Construction experts	200,000
Steering committee	4,000
Skilled laborers	30,000
Miscellaneous	10,000
Total	763,000

Event analysis & diagram charts

Project cost analysis.

Risk management and project control

Risk management and project control are necessary for the implementation process of an entire project that is of this magnitude. This Car Maker Company has the following controls that will ensure that the risks involved are minimized.

Meetings of the stakeholders that will ensure that the process is under control, will essentially be a quarterly meeting.
There will be a monthly status report that will be required by the steering committee. The report will state the project progress, challenges, risk management, and the milestones that have been achieved so far.
Risk management plan.

This plan will ensure that the employed project manager is in full charge of the project. The risks that the project faces will be carefully analyzed by this department. This management plan will be done every week to prevent any possible escalation of the risk process. The management process will be included in the project charter.

Management of communication process

For the process to run smoothly, the management must establish a communication process. This will be based on a designed protocol that will manage the flow of communication. Any issue that arises will be initially communicated to the project manager; the project manager will, in turn, communicate with the stakeholders and the steering committee through regular meetings that will be held in the course of the implementation process.

Authorizations

This sets the authority levels that the project needs; this follows an implementation hierarchical process. The process of the authorization will generally ensure that the changes to the project plan, deliverables, and raw materials are properly approved to avoid any conflicts. The following parties will be liable for the approval process.

The project plan Statement will be approved by:

The Project Manager
The Project Steering committee
The Project Sponsor/ owner

Project Changes will be approved by:

The Project Owner

Project deliverables will be approved by:

The Project Owner/sponsor
The Steering committee
The Key Stakeholders

Conclusion

This project management process has explicitly provided the fundamental steps and risks together with their management and implementation process. The activities of the project as evident in the screenshots and the attached MS project reveal allocation of resources and cost estimation of the entire project. The risk management process ensures that the process experiences minimal risk as backup plans for the occurrence of the risk are well catered for.

As evident from the analysis above, several considerations are made in the process, these include authorization and licensing of the project. The project cannot proceed without authorization from the city council of Saudi. Some of the requirements for the license to be awarded include; meeting the environmental requirements as required by the government and being able to settle the license payments.

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