Project Management on Smart Cut Barber Shop

Project Management

Smart Cut Barber Shop

Executive summary

Smart Cut Barbershop offers the modern day grooming service of shaving to the all age groups in the society. This shop is aimed at exclusive markets and an overwhelming customer base and will surely add value to the community by offering what is currently not being offered in the Houston region. The company aims to be profitable by increasing the client base and become one of the most sought after barbershop. It is the goal of the company to become profitable and become a destination where people can come and refresh their bodies while networking with others.

Organization description

Smart cut is a full-service barbershop that is committed and dedicated to consistently provide world class shaving and grooming services to its clients. The company is in the forefront in giving out to the clientele excellent services while ensuring an enjoyable, relaxed atmosphere at the most affordable price. A viable business location that is economically endowed will be good for the business venture, Houston region is one such place.

Services and products

The products/services presented by Smart Cut Barbershop are majorly considered up-scale for all the sexes and age-groups. The complimented wide range of products and services include traditional haircut and styles which is a common service by all barber shops (Rothman Irving 702).  Customized services for men include the essential peels and facial make ups with back rub and massage performed by well trained personnel. Other services offered include hair removal from the neck, back, ears, nose and shoe shining done to clients as they wait for grooming services.

Products obtainable consist of the art of shaving that comprises skin care, red kin products for men entailing hair gels, wax, paste, shampoos, and American crew products exclusively for male customers. The organization also strives to provide services and products not listed in the company description upon explanations and consultations between client and service providers in the barber shop.

Organization structure

This can well be represented using an organizational chart that has the ability of depicting the reporting structure of the people that represent the organization and all its components (Burton Kaliski 669). This chart represents the most senior individuals at the top while the subordinates span below them. Smart cut barbershop organizational chart outlines how the business intends to flow its job responsibilities within the internal structure of the company. The structure is made so that the barbershop owner occupies the uppermost part of the chart. The owner resides at the head of the chart and the day-to-day responsibilities include concerns himself with customer service, financial resources and issues on employee recruitment and retentions. The owner is also involved in certifications and licensing of the business in addition to executing grooming processes as need may arise.

Reporting to the owner is the barbershop manager who is involved in providing orientation to the shop staff, explaining operations and procedures based on the company policies. The manager also works close with the staff to improve on performance and ensure provision of quality services while maintaining cleanliness and client satisfaction. In assistance with the owner, he is also involved in analyzing the personnel records, supplies and other issues touching on resolving customer complaints.

Immediately are the barbers, technicians and stylists following suit and they comprise nail technicians, hairstylist, color specialists, beauty therapists who reports to the barber shop manager. Receptionists also reports to the manager and is responsible for answering telephone calls, organizes schedules and appointments, greets customers and operates the cash register. The receptionist is responsible for promoting the image of the company by creating a comfortable and welcoming environment to the clients and other visitors.

Shop assistant provides additional support to the staff by handling retail sales, sterilizing equipment used in shaving, sweeping the floor and chairs and preparing clients for services to be provided.

Barber shop owner
Barber shop Manager
Barbers and Technicians
Receptionist
Barber Shop Assistant

 

Cost analysis/ financial projections

The cost of producing the output of Smart Cut Barbershop is dependent on how much the capital and labor the company uses. The fixed cost in this case includes the space and equipment in this case they are valued at $160 per day. The variable costs in this case are the cost of hiring the barbers and the other personnel discussed in the organizational chart. For this case, the cost of hiring each personnel is $80 per day.

The table below can be used to represent the cost information, the first two columns in the table shows the number of hair cost the shop can perform with additional barbers. Column 4 shows the variable cost and the corresponding level of output which is then calculated by multiplying the amount of labor hired and the remuneration. For example for 2 barbers the cost is 2*$80=$160. Total cost will be arrived at after adding column 3and 4 that is presented in column 5. For instance, for 2 barbers it will be $160+$160=$320.

Output and total cost
Labor Quantity Fixed Cost Variable Cost Total Cost
1 16 $160 $80 $240
2 40 $160 $160 $320
3 60 $160 $240 $400
4 72 $160 $320 $480
5 80 $160 $400 $560
6 84 $160 $480 $640
7 82 $160 $560 $720

 

This can also be effectively represented using a chart as shown below;

It is evident from the chart that the quantity of output increases as the cost of production also increases. From the graph one can see that once the production starts the cost tend to rise for instance, as the number of barbers increase the output also increases.

When the two costs are broken down, it can provide other insights that can be used in cost analysis as presented in the table below;

Labor Quantity FC VC TC MC ATC AVC
1 16 $160 $80 $240 $5 $15 $5
2 40 $160 $160 $320 $3.3 $8 $4
3 60 $160 $240 $400 $4 $6.6 $4
4 72 $160 $320 $480 $6.6 $6.6 $4.4
5 80 $160 $400 $560 $10 $7 $5
6 84 $160 $480 $640 $20 $7.6 $5.7

 

From the graph, it is clear that the average cost of producing a haircut is $8.

Problems faced by the company in services provision

There are several problems that affect barbershops Smart Cut included. Such problems include personal injuries arising from treatment risk due to the wide variety of chemicals, products trimmer and other equipment that are used during provision of services. Injuries sustained by the clients because of laxity in safety procedures by the shop may result to lawsuits that can be so much detrimental for the shop.

Personnel hiring and retention is another problem that is faced by the barbershops since it is asserted that the success of barbershops mainly rely on the expertise and skills that is possessed by the personnel. Competition for talent has been a major problem to managers and therefore the need to retain them with good pay packages that in return may infringe on the cost of operations. This also applies to the competition for customers and hence the need to retaining loyal customers in the business through reduction on cost of services or improving on the kind of services offered.

Property and personal safety is another problem that is facing barber shops as the physical structure of the shop may endanger lives of the employees. This may require the provision of a comprehensive insurance cover for each personnel in the company. Licensing and regulatory concern of the authorities is another issue. These regulations are put in place to protect employees and clients; the ever-changing nature of such regulation poses challenges that in the end disrupt service provision.

PROJECT PLAN

Goals and objectives of the project

The goal of the project is to conduct a research and experiment on the viability of initiating a barber shop in the Houston region. Final product that the research should achieve is just to establish how the shop will be initiated in the market using different promotional tools as will be decided by the Smart Cut management. Another object is to comprehend the practicability and sustainability of the services to be offered by the barber shop in the Houston region. Last object of study is to examine how to launch Smart Cut barber shop in the new market.

Expected outcomes

The project should be able to come up with evidence that will provide detailed descriptions of market situation in Houston to Smart Cut management. The fact that Smart Cut is a new shop it is imperative that the proposed services likely be offered target the all populace of the Houston community. Secondly, the project undertaking should spawn stratagems that will make it a possibility to open Smart Cut barber shop in the Houston market. The project will also aim to get views from the target clients on the new shop and the weaknesses that the existing shops have, this will ensure that the new shop fulfills the gaps already existing.

Intentions of Smart Cut, company initiating the barber shop is to increase the market occupation by providing superb grooming services to the clients in Houston region. To promote service sales while increasing profits for the company and to beat other competitors.

Description of the project

This project aims to investigate the viability of Houston region before actually opening a new barber shop in the region. It will aim in identifying the existing gaps that have not been filled. These are services that are not currently being offered in the market by the other barber shops. It is ascertained that project management is a complex endeavor, coupled with the numerous business prerequisites it requires that it be guided by accepted project practices and standards. These will ensure the flexibility and effectiveness of project management. The project quality standard that will be used for this project is ISO 21500:2012. It is known to provide guidance in the entire process through describing concepts exhaustively and breaking down complex terms into simpler one that can easily be comprehended by the project team (Bjarne Kousholt 44). It is asserted that this will assist the assignment leaders to achieve good project success and outcomes to inform decisions of management (Bjarne Kousholt 62).

Problem in the project/ Project risks

There are problems that may affect the success of a project and they manifest themselves in terms of risks that in either way may change the final products of the mission. Such problems include lack of support for a project by the executives of a particular company; this can be through disengagement with project activities.

There can be conflicts between executives or managers of an organization due to different interests that each have on the project. Another problem or risk is when venture scope was not well defined by the project management team and mostly arises when the costs were inaccurate. Several activities of the project may be missing from the initial project plan and hence leading to failure as it is asserted that each activity should be followed or preceded by another activity. Change management overload is another risk that may affect a project lifecycle; this is due to large number of request arising from the project that distracts the key resources for the project.

Stakeholders may also decide to disengage themselves from the project creating a support problem to the management team. This may be caused especially when the stakeholders have inaccurate expectations about the project due to conflicts between them and so fails to support the project. Breakdown in communication is another risk especially when the project team failed to adequately understand the project requirements or inaccurate user expectations.

It is believed that deficit in resources is a problem that may lead to the failure as it will create the inability to secure satisfactory resources for the project work (Bjarne Kousholt 68). Researchers have found out that in situations that the project team lacks the full authority to accomplish the project problems are likely to occur. To some extent they may have authority that is blurred. Approvals and red tapes may make stakeholders not accept the outcomes of project or the clients may not accept the final product delivered by the project.

According to project scholars a document prepared by the project manager called a risk management plan will mitigate problems likely to arise during project life (Cleland and Gareis 3). It is ascertained therefore that such plans are put in place to regulate or diminish the manifestations of risks in project. Risk management blueprint will delineate just how perils are identified and managed effectively in the project. It is worth expressing that the plan for this project will aim at working with all the stakeholders in a way that risks will identified singly by single members. They are then discussed in a meeting and then dealt with accordingly by the respective leaders throughout (Cleland and Gareis 4). The second procedure or endeavor will be to evaluate the project boundaries and the environmental factors are most likely to cause problems to the project thereby coming up with solutions. It is affirmed that “the project deliverables, assumptions, cost estimates, resource planning will be carefully studied and a risk management log/document generated and updated for perusal by all the stakeholders” (Lewis 116).

Project management tools/techniques

It is avowed that project management is a multifarious activity and has many tasks; this means that project management techniques and tools like PERT and Gantt Charts must be engaged to provide backing for the venture (Lewis 110). PERT is chosen to assist define and control tasks that would allow completion of the project.

The implications that such will have on the project may include being central in identifications and investigation of risks that may affect the project in one way or the other (Lewis 115).  Moreover, tools and techniques are known to help in the costing process to estimate the costs that are needed to complete a venture at hand. Nevertheless, assertions have been put forward to support that PERT and Gantt charts are instrumental in breaking down the project activities into simpler tasks that will aid the project. Coordination, planning and tracking of the specific tasks for the project will be possible through the employment of tools and techniques for management.

Project Budget estimation and approval/ project cost line

The main aim of an enterprise is to economize on the costs of operations while realizing huge profits including the costs of supporting projects.  In businesses at times financial resources may be scare and a project manager may be forced to work with limited budget. The manager may be required to draft a budget that will detail the costs to be incurred. This process has been described by professionals as cost drafting and approximation and gives the manager insights of all that the project requires to lead to its accomplishment. It is worth pointing out that the entire process will entail the considerations of both the direct and indirect costs. (Lewis 113).

Direct cost comprises remunerations of human resources, materials/supplies, travel arrangements etc.  Indirect costs comprise expenses like furniture, water rent, electricity among other overhead expenses as deemed by the project team. The moment the budget and estimation has been organized it is taken to be approved by the CEO since it is difficult to execute without their knowledge. The budget for this project is as follows;

Resources Descriptions/ Details Budget in $ Quote 1 $ Quote 2 $
Human Resources The project team of manager, team leader and team players 43,200 43,200 43,200
Physical Resources Air travel fares 18,400 19,000 19,000
  Accommodation: Rooms 28,000 28,000 27,800
  Transport in Houston 15,000 15,100 15,500
  Office Equipment 8,000 7,800 8,100
Technical resources Laptops for each member 11,000 11,600 11,300
  Mobile phones for each member 6,000 5,400 6,000
  Internet Charges 800 820 810
  Phone bills 1,000 1,100 980
Financial resources Bank loan 400,000 300,000 350,000
  Overdraft 100,000 95,000 90,000
  Asset finance 68,000 60,000 61,000
  TOTALS 699,400 587,020 633,690

Cost/Budget monitoring

The responsibility of a manager comes in to ensure that the budget is within the set spending premises as agreed from the onset. It is affirmed that for it to be achieved there must be a continued review of the spending at each every stage and activity in the venture. Researchers have come up with different methods to achieve this. These methods can also be used in monitoring the costs in the budget to make all the project staff to comply within the precincts of the budget estimated and approved earlier. (Lewis 127).

First method of doing this is to forecast and see future spending in addition to predicting cost and financial performance of the project due to unseen eventualities that may harm the budget of the project. For instance, when working through the project and reaching almost quarter of the project the team realizes that they on the right course of spending; they may relax on their spending. Consequently on reaching half the project they realize that they are likely to face financial problems they may revert to ways of minimizing the costs so that they may remedy the likely problem of going overboard in spending.

Performance review of staff is another framework that can be used to shape spending as it will ensure that the resources that are used by the project staff are in the precinct of project activities (Kwak 17). This will aid in assessing their quality performance for example, examining their usage of internet connections that if used for bad reasons may inflict problems to the budget before accomplishing the deliverables of the project.

Reporting requirements

Reporting normally instigates at the origin of the project work and it asserted that it is central that reporting of issues and status be done in each and every stage of the project life (Kwak 22). This would create awareness to the stakeholders of what is actually taking place in the project as is fundamental to ensure the successful accomplishment of the task at hand.

Several vital documents are submitted to stakeholders and include the project proposal and plan that have the potential of giving information of the project team, activities and the timeline in which the project is to be achieved. It will also give details on the interrelations of the different project activities and how a particular activity will have a bearing to another activity.  The status report is another file that enumerates as to whether the project will be delivered on time or not, it also ascertains on the originality of the initial budget and any other adjustments made.

Project Resources

Resources are required to aid the activities of the project to allow it deliver results and outcomes that were initially described. Project resources that are to be used in this project will comprise Human resources (Project team leaders, manager, and stakeholders), Physical resources (vehicles, pens, tables, notebooks, laptops) and financial resources.

Human resources are vital for the success or failure of the project as they are assigned different roles and responsibilities that contribute to the overall success or failure of the project. For example the executive director being most senior will ensure project commitments and its success. This individual must be present to provide financial support to the project and ensure that activities are done hastily to meet deadlines. The duties of the sponsor are in line with the aspirations of the project by being valuable in decision making and giving out project directions. On the expected outcomes the roles would be to ensure that there is adequate communication at every stage of the project and to conduct a thorough analysis of the problem at hand.

The project manager is responsible for the success by providing elucidation to the existing problems through working on the environment to see the commencement and progression of the mission. Team leader is the other personnel important for any project as he/she will ensure the full teamwork and partaking of members. This individual also manages all the project risks while monitoring and evaluating the daily activities of the team members. The roles are aligned to the outcomes of the project by ensuring that all energy channeled to project activities and direction. Financial analyst is responsible for ensuring that activities relates to the business situation and are aligned to the outcomes of the project by ensuring that problems are  analyzed, discussed  and comprehended before starting the project (Lewis 138).

In conducting the project one resource specialist bodies are to be consulted. One is the National Association of Barber Boards of America an organization that regulates and provides advisory information to barber shops.

Project timelines

It is has been ascertained that a timeline is a way in which list of events are displayed in a chronological order as described in a project venture. It is believed that timelines can be intended and prepared on the framework of the time, subject of the project or data. Linear scales are mostly used in designing project timelines and that unit distance is commensurate to the amount of time. In project management it is instrumental to the team members to be acquainted with activities or milestones that need to be attained and under what time diary.

The project timeline for the venture will be four months that is, from December 2015 to March 2016. This time will be enough to accomplish the task and submit results to Smart Cut barber management for action. The time frame for this will accommodate different activities commensurate to time slot given each activity.

Definition of the project will take one month and involves analyzing requirements for the project, conducting feasibility studies and collecting data, preparation of preliminary project plan and proposal.

The second activity is analysis which will also take one month for completion as it involves preparation of functional specification paper, reviewing the paper, completing the paper and revising the project plan.

The next activity is strategy that has a time frame of one month that involves formulation of approach document, reviewing the approaches and revising before reporting that also has a timeline of one month. This activity comprises preparation of concluding report and submission to management for action.

Measuring outcomes

This is an activity that is of equal importance just like the others, the outcomes of a project are always agreed on at the onset and so during the course of activities metrics will used to ascertain whether results will be achieved. This activity therefore points out that every manager in a project must predict and confirm whether the project is in the right path through ascertain the outcomes that have been realized so far.  The manager will engage other external people to evaluate on each activity and outcome achieved for each and done continuously till the end of the task (Bjarne Kousholt 75).

Understanding legislations

Actually it is paramount that for every project undertaken legislations should be scrutinized to ensure that the business project is conducted in accordance to the law. As a requirement, the project manager and his team must take the initiative to go through the existing legislation and regulation that will ensure safety of the employees and the clients (Cleland and Gareis 15). The project manager will peruse the Cosmetics, Safety and Marketing Acts to get acquitted with important information that should be integrated in the project.

Review project

Procedural project review will be done intermittently to make certain as to whether the project is moving on as endorsed previously based on the objects that were put in place. This process will also be achieved through performing a thorough analysis of each project task.

 

 

Findings

The project is likely to find out that the existing barbershops in the region do not offer wide range of services like full body massage and aromatherapy. The clients who are to be interviewed may confirm the assertion and that they need a barbershop that could offers diverse services to the diverse target markets. The project is also likely to detect that there are delays on service provision with others having to wait for longer duration to be served. The study may also learn that in majority of the existing shops there is lack of services at the customer care at the time of opening the shops and that customer relation is poor. Lastly, it may be realized that recruitment of barbers and technicians is staggering and is not providing the best personnel with the best skills.

Recommendations

The project team therefore recommends that the new shop to be opened should offer a wide range of products and services to ensure that the existing opportunities are taken into account. It is also recommended that signage should be erected to prepare the prospective clients for the incoming shop in the region. Business operation hours should also be adjusted to accommodate those individuals on tight schedules who can only find time during lunch hours. Lastly, the management of Smart Cut Company should embrace best recruitment practices that will ensure that they acquire the best individuals in the field those with the right qualifications, experience and skills.

Conclusion

The project team therefore gives a green-light for the opening of a Smart Cut Barber shop in the Houston region. This project is to be delivered on the right time and on budget and is likely to point out that the new shop be opened to exceed the expectations of the clients and thus be a successful business venture.

Works Cited

Bjarne Kousholt. Project Management: Theory and practice. Nyt Teknisk Forlag. ISBN 87-571-

2603-8. pp.59-77, 2007.

Burton Kaliski. Encyclopedia of business and finance. p.669, 2001.

Cleland D., and Gareis R. Global Project Management Handbook. McGraw-Hill Professional,

ISBN 0-07-146045-4. pp. 1-20, 2006.

Lewis R. Project Management. McGraw-Hill Professional. ISBN 0-07-147160-X. pp.110-150,

Kwak H. N. A brief History of Project Management: The story of managing projects. (9 eds),

Greenwood Publishing Group. ISBN 1-56720-506-2., 2005.

Rothman Irving. The Barber in Modern Jewish Culture. A Genre of People, Places, and Things,

            with Illustrations. New York: The Edward Mellen Press, pp.