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Clothes R Us | Case Study | Risk and Cost Estimates
- 1. Clothes R Us Team 7 Akash Sangwan – Project Manager Natasha Arora – Finance Consultant Kapil Garg – Operation/HR Consultant Sandeep Matta – Store Management Consultant Sarvesh Bangad – IT Consultant Suyash Tiwari – Marketing/Sales Consultant
- 2. CRU Project Background • Clothes R Us, leading apparel retailer in US. With more than 400 stores nationally, CRU operates in 42 states. In the initial years(1990-1997) company saw a tremendous growth, which began to slow in late 90’s(1998-2000) Business Case • Company has been losing market shares to competitor and has doubled its debt. The “as-is” store processes require the manager to spend maximum time at the back office, instead of working in store. The old-fashioned Point-of-Sales(POS) system have a long authorization process that consumes 30-45 seconds per transaction. This factors along with others resulted in company facing a net loss $123.62 billion and stakeholders are losing the confidence on the company Objective • The Management decided to improve the application of IT at the store level with the goal of improving store performance.
- 3. Initial Project Plan: Initial Delays: • Delay in approval of GUI – 4 Weeks • Project Manager resignations – 4 Weeks Revised Project Plan addressing delays: Expected Delays: • Incompatible version of software for testing – 4 Weeks • WorldCom's debacle – 4 Weeks
- 5. Status 9 months $17.5 Million Current State Goal $30.5 Million 16 months Major Issues GUI Sign-off delay Product managers’ exit Version Incompatibility Project Phase Requirement – Design – Code – Test
- 7. Budget for Test Resources • Existing Resources Extended • New Resources
- 8. Budget for Deployment Resources • Existing Plan • New Plan
- 9. Cost Comparison • Resources Cost • Delay Cost • Savings Cost
- 10. Cost Baseline
- 12. How’s This Project Doing?
- 13. RISK PRIORITY NUMBER (RPN) Severity Occurrence Detection RPNX X =
- 14. REVISED RISK PRIORITY NUMBER Low Number High Number Severity Low impact High impact Occurrence/Likeliness Not likely to occur Inevitable Detection Very likely to be detected Not likely to be detected
- 15. Identified Risk and Risk Matrix 1. Delay in initial Deployment 2. Software quality assurance failure 3. Staff level Training 4. No Buffer Period 5. Change in resources 6. Holidays 7. Vendor Change 8. Private network vendor change 9. Improper Communication
- 16. Risk Mitigation 1 Delay in deliverables 2 3 Hire Additional Resources Software Quality Assurance Allocating professional that have prior experience in testing similar products Vendor Change Partnering with an organization that has expertise in delivering similar products like POS in the market
- 17. Recommendations Finance HR & Operations IT Store Management Project Manager Sales & Marketing Crashing of activities Increase the budget according to new plan Natasha Arora Recommendations Actions Owner Hiring additional resources Contract additional resources Kapil Garg Owner Change network vendor Find new vendors complying quality and cost Sarvesh Bangad Owner Change in store operations Provide training for new POS system Sandeep Matta Owner Change deployment strategy Oversee deployment in all stores Akash Sangwan Owner Targeted Approach, Online sales Start sourcing online vendors Suyash Tiwari Owner Recommendations Recommendations Recommendations Recommendations Recommendations Actions Actions Actions Actions Actions
- 18. References • PMBOK • The Economist: WorldCom’s bankruptcy mess • University of Missouri- St. Louis: The Traditional Waterfall Approach • HBR – Why Some Teams Succeed (and So Many Don’t)