1. New Product
Development
for
Wall Tile 25×40CM
● LIM SHIEH CHERN ● LOW SIEW MOI ● NG YEE JIE ●
1

2. Team Members
Low Siew Moi
2821945
Lim Shieh Chern
2821959
Ng Yee Jie
2821942
2

3. The Company
• Amazon Ceramics Industries
AboutUs
A local ceramic
tiles
manufacturers,
manufacturing
floor tiles, wall
tiles,
homogenous
tiles etc.
Origin
Founded in 1985.
Headquarter in
Senawang,
Negeri Sembilan,
Malaysian
Mission
To be a reputable
manufacturer
and supplier of
innovative and
quality products
at affordable
price in the
building material
industry
3

4. The Products
20cm x 25cm Wall Tiles
MARVE
25cm x 33cm Wall Tiles
ASTON
4

5. New Product – 25cm x 40cm
Wall Tiles
EleganceAmaze series
Sphere
Blossom
Wave
5

6. Project Plan
Project
Objectives
Project
Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
6
Assumptions

7. Organization Cultural Dimension
• ACI is a more result oriented with relative well motivated organization.
However management with strong autonomy power to control the
financial and moderate risk taker.
External10. Open-System focusInternal
Ends9. Means-ends orientationMeans
High8. Conflict toleranceLow
Other7. Reward criteriaPerformance
High6. Risk toleranceLow
Tight5. ControlLoose
Interdependent4. Unity IntegrationIndependent
People3. People focusTask
Group2. Team emphasisIndividual
Organization1. Member IdentityJob
External10. Open-System focusInternal
Ends9. Means-ends orientationMeans
High8. Conflict toleranceLow
Other7. Reward criteriaPerformance
High6. Risk toleranceLow
Tight5. ControlLoose
Interdependent4. Unity IntegrationIndependent
People3. People focusTask
Group2. Team emphasisIndividual
Organization1. Member IdentityJob
Source: Cultural Dimensions of an Organization Supportive of Project Management (Gary & Larson. p. 73). 7

8. Project Outline
• Proposing a new size of ceramic wall tiles (WT) for FY09/01 – 25x40cm
Increase
Profit
Attractive
Selling Price
New Product
Strategy
•Gross Profit deteriorated from
20% in FY04/05 to only 14%
presently
•Can improve average gross profit
from 14% in FY08/09 to 20% in
FY09/01, 26% in FY12/13
•25x40cm sells range from
RM25.00 to RM35.00 compared
to common sizes at around
RM11.00 square meters
•To penetrate into urban and middle-
income market, mid range housing
project markets and export markets
•Increase the product mix since
phasing out WT20x20 cm size in
FY07/08
8

9. Increase Profit
• Financial forecasting
– A potential grow of demand for WT 25x40 in market from 2% in FY09/10 to 80% in
FY12/13
– A margin grow for ACI from 20% in FY09/10 to 26% in FY12/13
F INANC IAL ANAL Y S IS
Actual
FY07/08
Actual
FY08/09
Budget
FY09/10
Forecast
FY10/11
Forecast
FY11/12
Forecast
FY12/13
Des cription
Wall Tiles
Sizes (cm)
Sales Vol
(%)
a. 20x20 % 2% 0% 0% 0% 0% 0%
b. 20x25 % 88% 88% 77% 58% 38% 28%
c. 25x33 % 10% 12% 22% 32% 41% 41%
d. 25x40 % 0% 0% 2% 11% 22% 30%
Total % 100% 100% 100% 100% 100% 100%
Sales Vol
(M2)
a. 20x20 M2 57,057 - - - - -
b. 20x25 M2 2,393,677 2,424,905 2,142,000 1,610,000 1,031,250 781,000
c. 25x33 M2 266,266 340,095 613,200 893,200 1,122,000 1,138,500
d. 25x40 M2 - - 44,800 296,800 596,750 830,500
Total M2 2,717,000 2,765,000 2,800,000 2,800,000 2,750,000 2,750,000
Production C apacity M2 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
B alance C apacity M2 283,000 235,000 200,000 200,000 250,000 250,000
G ros s Profit Margin
Unit Selling Price (a, b, c & d) RM/M2 11.74 11.33 12.57 13.36 14.18 15.23
Unit Cost of Sales (a, b, c & d) RM/M2 9.83 9.79 10.02 10.42 10.91 11.34
Unit Gross Profit (GP) (a, b, c & d) RM/M2 1.91 1.54 2.55 2.94 3.27 3.89
Wall Tiles GP Margin (a, b, c & d) RM/M2 16% 14% 20% 22% 23% 26%
9
Please refer to Appendix A for further details

10. Attractive Selling Price
• Market Survey
– Pippo is the only local manufacturer producing 25x40cm wall tiles with one
imported brand, “UCI”, from Thailand
Size (cm) Importer/ Manufacturer/
Trader
Country Type of Material Brand Retailer Price/M2
20x30 KimHin Malaysia Ceramic Matt & Glossy Kimgress RM22.00 - RM28.00
20x40 Venus Malaysia Ceramic Matt & Glossy Venus RM18.00 - RM30.00
25x40 Pippo & Imported Malaysia, Ceramic Matt & Glossy PP & UCI RM25.00 - RM35.00
Thailand
25x45 Guocera Malaysia Ceramic High Glossy Guocera RM40.00 - RM45.00
25x50 Roman Indonesia Ceramic Red Body Roman RM28.00 - RM32.00
30x40 KimHin, Johan, WH &
Sixny
Malaysia, Ceramic Various RM35.00 - RM38.00
China
30x45 Huawei China Ceramic Rectified UNO RM28.00 - RM32.00
30x50 Roman Indonesia Ceramic Red Body Roman RM30.00 - RM35.00
30x60 MML, Guocera, WH, Niro,
Alpha,
Malaysia,
China,
Porcelain (Soluble Salt) &
Full Body
Various RM25.00 - RM35.00
Venue, Seacera,
Imported
Veitnam
10

11. WBS
• Work Breakdown Structure in Outline Form
1 Marketing Survey
2 Confirm Tiles Designs
3 Factory Product Developmet
4 Confirm Product Costing
5 New Product Marketing Plan
6 Equipments & Machinery - Ready
7 SIRIM Certification & Product Specifiaction
8 Sales & Administration System
9 Warehouse Control System
10 Liaise With Event Management Co
11 A&P Agency Management
12 Puchasing Raw Materials & Equipments
13 Actual Product Production
14 HQ Showroom Decoration
15 Waiting for Exhibition & Rectification
16 New Product Launching Ready
Summary
Tasks
11
Please refer to Appendix B for further details

12. Project Network Diagram
• The project network diagram is presented separately.
Please refer to Appendix C for further details
12

13. PERT
Scheduled Project Duration TS 105 days
Critical Path Duration TE 101 days
Standard Deviation 5.35
Probability Z 0.75
Probability % Z% 77%
Milestone (Critical Path) Weighted
Average
Optimistic Expected Pessimistic [(b-a)/6]2
Marketing Survey 13.17 7 14 16 2.25
Factory Product Development 33 22 33 44 13.44
Liaise With Event Management Co 25.17 13 27 30 8.03
Actual Product Production 25.83 17 27 30 4.69
New Product Launching - Ready 3.83 2 4 5 0.25
101 61 105 125
13Please refer to Appendix D for further details

14. Project Stakeholders
Internal Customers Suppliers Customers Regulatory
1. Top Management 1. Raw Material - Glaze &
Surface
1. Houseowners 1. SIRIM
2. Account 2. Raw Material - Clay & Body 2. Dealers / Retailers 2. DOE
3. Engineering 3. Raw Material - Additive 3. Distributors 3. Bomba
4. Warehouse 4. Packaging - Carton Boxes 4. Interior Designers
5. Purchasing 5. Packaging - Pallet & Others 5. Architects
6. Human Resource 6. Event Management Co. 6. Developers
7. Production 7. A&P Agency 7. Contractors
8. Lab 8. Machineries and Equipments 8. Sub-Contractors
9. Design 9. Utility Co. - Energy 9. Importers
10. QA 10. Bankers 10. Commission Agents
11. Customer Service
12. Marketing
14

15. Project Plan
Project
Objectives
Project Outline
Business need
to be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
15
Assumptions

16. Business Need to be Met
Contribute more than 40% gross
profit margin for FY09/10 so that
can achieve overall budgeted
gross profit margin of 20%
Production volume at 2% of total
product portfolio for FY09/10
Produce 90% of 1st grade quality
output and maintain 3% of reject
in order to market effectively
16

17. Define the Project
• Project Priority Matrix
17

18. Define the Project
• Communication Plan
What information Target audience When?
Method of
Communication
Provider
Bi-weekly meeting Status Report
(include Decision Action List)
Directors, General
Manager, Project
Manager
Bi-weekly Email Innovation Manager
Marketing Survey Analysis Report
All project team
member
Bi-weekly Presentation & Email Marketing Manager
Tiles Design Proposal
All project team
member
Bi-weekly Presentation & Email Designer
NPD Marketing Plan
Directors, General
Manager, Project
Manager
2 weeks after
project
commenced
Presentation & Email Marketing Manager
Production feasibility report
All project team
member
Bi-weekly Presentation & Email Production Manager
Marketing Communication Status
All project team
member
B-weekly after
Marketing Plan
approved
Email
Marketing Manager &
Customer Service
Manager
Launch event Status
All project team
member
Bi-weekly after
Marketing Plan
approved
Presentation & Email
Marketing Manager &
Innovation Manager
Top 6 High Risk Events - Severity & Risk
Value
All project team
member
Weekly Meeting
New Product
Committee
Deliverables Tracking Plan
All project team
member
Weekly Meeting
New Product
Committee 18

19. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
19
Assumptions

20. Project Objectives
• To launch 4 series of WT25x40cm concept tiles officially to the
market for coming MALBEX 2010 (Malaysia building materials
exhibition) scheduled on 20 to 24 January 2010
20

21. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
21
Assumptions

22. Budget
• Total budget allocated based on the past historical data
of new product launch. No additional human resource
cost incur where UCI utilized existing employees
WT25x40
RM493K
Mould
Press
Punches
Conveyor
Belt
System
Packing
Machine
Corrugate
Carton
Box
Brou-
chures
Display
Rack
Exhibition
Booth &
Event
RM20K
4%
RM32K
6%
RM150K
30%
RM65K
13%
RM6K
1%
RM40K
8%
RM80K
16%
RM100K
20%
Supports - RM226K (56%)Input - RM267K (54%)
WT25x40
RM493K
Mould
Press
Punches
Conveyor
Belt
System
Packing
Machine
Corrugate
Carton
Box
Brou-
chures
Display
Rack
Exhibition
Booth &
Event
RM20K
4%
RM32K
6%
RM150K
30%
RM65K
13%
RM6K
1%
RM40K
8%
RM80K
16%
RM100K
20%
Supports - RM226K (56%)Input - RM267K (54%)
22

23. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
23
Assumptions

24. Directives
•Examine production capability of existing machineriesEngineering
•Confirm the feasibility and characteristics of new size based on
the tiles dimension, strength and manufacturing efficiency
aspects
Production
•Forecast for product cost at below RM11.00 per square meter is
possibleAccount
•Do marketing survey to find out more about the size especially
contemporary seek-after designs, color scheme, trends, popular
installation layout, etc
Marketing
•Getting the product certified by SIRIM QAS Sdn Bhd for the
Product Certification LicenseQA
24

25. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
25
Assumptions

26. Assumptions
• NPC assumes that the current scenario will not change
until post launching period
Product life cycle of this
size will continue for
another 5 years
No resignation of any key
personnel from respective
departments
Existing export customers
and domestic stockiest
especially those situated
in urban areas will accept
and buy this new product
26

27. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
27
Assumptions

28. Constraints
Not able to produce higher definition of printout due to its
outdated printing machine
Only one showroom in head office and has difficulties
entertaining architects, IDs, developers, and contractors in
the other 2 urban areas
Very limited warehouse space to keep stocks and longer
stocks holding is expected from this size.
28

29. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
29
Assumptions

30. Deliverables
All the four series of tiles produced must pass the internal quality standard with QA and NPC
accepted
The tiles must be properly installed on a few mock up showrooms to examine the finishes before
official launching
For each series, a minimum one batch of 5,000 square meters stocks must be available for sales
5,000 copies of brochures must be ready and company web site must be updated on 20 Jan 2010
The SIRIM certification must be obtained
Invitation cards must be sent out one month before MALBEX 2010 to all domestic dealers,
oversea customers, and project customers
Sales plans and promotional offer packages must be ready
Decorated exhibition booth ready with routine marketing personnel on duty, LCD multimedia
presentation, mini showroom, souvenirs, and light refreshment must be ready
30

31. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
31
Assumptions

32. Acceptance Criteria
• The utmost acceptance criteria is
Product Quality
• Finishes
• Textures
• Fine printout
• Straight dimension
• Minimum shade
variation
32

33. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
33
Assumptions

34. Key Risk
• NPC is concerned with the grading of product quality
• Outputs that are less than 90% of 1st grade salvaged from
production are not tolerable
• Risk in encountering prolonged inventory turnover
• ACI may not have strong cash flow position to hold on to
the slow moving stocks as well as limited warehouse
space available
34

35. Risk Identification
Project
WT25x40
Marketin
g
Research
Account
Testing
Producti
on
Logistic Design
Budgetin
g
Product
costing -
P & L
Inventory
Raw
material
Utility -
Gas/ Elec
Machiner
ary
Event
Set-up
Engineeri
ng
Deliverab
les
Purchasi
ng
QA
Post
Launche
d
35

36. Risk Assessment
Risk Event Likelihood
A
Impact
B
Detection Difficulty
C
Severity
A x B =
Risk Value
A x B x C =
Purchasing Department
Raw Material Price Increase 4 2 1 8 8
Missed Material Supply Deliveries 2 4 1 8 8
Production Department
Missed 90% 1st Grade Quality 2 5 1 10 10
Energy Costs - Electricity & Natural Gas 5 4 1 20 20
Resign of Key Production Personnel 3 3 4 9 36
Marketing Department
Poor Pricing & Design Survey Accuracy Result 2 4 5 8 40
Engineering Department
Equipments Breakdown - Minor 2 3 4 6 24
Equipments Not Function to Productivity Target 2 5 2 10 20
36
Key Assessment Level: 1 – Very Low, 2 – Low, 3 – Moderate, 4 – High, 5 – Very High
Please refer to Appendix E for further details

37. Risk Assessment (cont.)
Risk Event
Likelihood
A
Impact
B
Detection Difficulty
C
Severity
A x B =
Risk Value
A x B x C =
Warehouse Department
Poor Stocks Management due to Loose Pallets Orders 4 3 3 12 36
Account Department
Not Able to Achieve Minimum Product Costing Target 2 5 2 10 20
Design Department
Tile Designs Not Suitable for Mass Production 3 4 4 12 48
QA Department
Miss Deadline to Receive SIRIM Certification 3 3 2 9 18
Deliverables
All Four Series of Tiles Fail Internal Quality Standard 2 5 1 10 10
Sirim Certificate Not Ready before Exhibition 3 3 4 9 36
Post Launched Performance
Slow Sales & Low Inventory Turnover 3 4 3 12 36
Unanticipated After Sales Quality Complaint 2 4 4 8 32 37

38. Risk Response Matrix and
Contingency Plan
Risk Event Response Contigency Plan Trigger
Who Is
Responsible
Production Department
Missed 90% 1st Grade Quality Reduce
Improve the product
specification
Not solve during trial run
production 4/11/09 Plant Mgr
Resign of Key Production Personnel Reduce
Draw out successor
planning
Immediately after appoint
process engineer Plant Mgr
Marketing Department
Poor Pricing & Design Survey Accuracy
Result Reduce
Outsource professional
research co.
Market survey results not align
with key accounts feedbacks Marketing Mgr
Design Department
Tile Designs Not Suitable for Mass
Production Reduce
Spare two extra designs
series
Failed requirement on trail run
production Design Mgr
QA Department
Miss Deadline to Receive SIRIM
Certification
Reduce /
Retain
Apply temporary certificate
or pending approval
When appointment with SIRIM
auditors can't be made between
17/12/09 to 5/1/10 QA Mgr
Post Launched Performance
Slow Sales & Low Inventory Turnover Reduce
To introduce 30x40cm &
20x40cm
Poor pass 1 year sales
performance Marketing Mgr
38
Please refer to Appendix F for further details

39. Top Risks
Energy Costs - Electricity
& Natural Gas
20 20 Retain Adjust Product Price
List
Price Increase before
production date
-
Poor Workers' Working
Attitudes
16 48 Reduce Incentive Scheme for
the two group
experience operators
When supervisor can't
produce the desired
quality & quantity targets
Plant Mgr
Poor Pricing & Design
Survey Accuracy Result
8 40 Reduce Outsource
professional research
co.
Market survey results not
align with key accounts
feedbacks
Marketing Mgr
Outdated Machinery
Technology
12 12 Avoid Focus on designs that
existing machineries
are capable
When machinery
performance not
consistent
Engineering
Mgr
Poor Stocks Management
due to Loose Pallets
Orders
12 36 Reduce Standby plan for loose
pallet warehouse
space
When loose stocks
discrepency more than 3%
from quaterly stocks
checking
Warehouse Mgr
Tile Designs Not Suitable
for Mass Production
12 48 Reduce Spare two extra
designs series
Failed requirement on trail
run production
Design Mgr
Sirim Certificate Not
Ready before Exhibition
9 36 Reduce /
Retain
Apply temporary
certificate or pending
approval
When appointment with
SIRIM auditors can't be
made between 17/12/09 to
5/1/10
QA Mgr
Slow Sales & Low
Inventory Turnover
12 36 Reduce To introduce 30x40cm
& 20x40cm
Poor pass 1 year sales
performance
Marketing Mgr
Who Is
Responsible
Severity Risk ValueRisk Event Response Contigency Plan Trigger
39

40. Change Request Log
Date Rec'd Date Submit
58
Change brochure to
leaflet & improved color A&P Agency No. 1112/14/2009 12/30/2009 Same Submit
Better printout
& glossy
Comments
NPC Requested Change Status Report - Open Items
Date
RC# Description
Reference
Document
Amount Status
40

41. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
41
Assumptions

42. Equipment & Facility
Requirements
New mould and
punches for the size
of 25x40 cm tiles
Internally modify the
conveyor belt system
to hold heavier tiles
Mechanically modify
the selection and
packing machine.
42

43. Machinery Requirements Study
Size (cm) Press
Cavity
Press
Speed
No of Press
/ Minute
No of Tiles
/ Minute
Conveyo
r System
Upgrade
Print
Machine
Upgrade
Kiln
Capacity
New
Selection &
Packing
Machine
Capex Economi
c of
scale
20x30 5 Fast 20 100 No
Change
No No No No
20x40 3 Medium 15 45 Modified Option No Modified Small
25x40 3 Medium 15 45 Modified Option No Modified Small
25x45 3 Medium 15 45 Modified Option No Modified Small
25x50 2 Medium 15 30 Modified Option No Modified Small
30x40 2 Medium 15 30 Modified Option No Modified Small
30x45 2 Slow 12 24 Modified Option No, but
slow
Modified Medium No
30x50 2 Very Slow 10 20 New Yes Yes Modified High No
30x60 2 Very Slow 10 20 New Yes Yes Yes High No
Yes, but
not
Fair, but
not
Yes, but
mkt
unpopula
Yes, but
not
Yes,
most
Yes, but
mkt
43

44. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
44
Assumptions

45. New Product Committee
Department Designation Name Report To
Marketing / Team LeaderBusiness Dev Manager Mr. Lim Shieh ChernMarketing Manager
Account Asst Account Manager Ms. Choo PP Financial Controller
Engineering M&E Engineer Mr. Khor LH General Manager
Warehouse Warehouse Supervisor Mr. Ng Yee Jie Warehouse Manager
Purchasing Purchasing Executive Mr. Peter Low Puchasing Manager
Human Resource HR Manager Pn. Salmiah General Manager
Production Production Manager Mr. Lee KG Plant Manager
Production Process Engineer Mr. Hew AP Production Manager
Lab Lab Manager Pn. Zubaidah Plant Manager
Design Design Manager En. Iskandar Marketing Manager
QA QA Manager En. Shafiz General Manager
Customer Service Administration Manager Ms. Julie Siow Marketing Manager
Marketing Marketing Executive Ms. Low Siew Moi Business Dev Manager
Knowledge Attitude Others
- Necessary experience and
knowledge/technical skills critical for
project completion
- Problem-solving ability
- Ambition, initiative and
energy
- Credibility
- Availability to commit this
project
- Political connections
45

46. Project Reward
• Reward system to motivate project team members to
deliver distinctive result
(source: Raymond J. Stone. P436 )
Reward
Financial
(Monetary)
Non-Financial
(Non-Monetary)
Direct
- Base pay
- Incentive
- Allowance
Indirect
- Insurance
- Company car
- Holiday
Job
- Advacement
- Increase job
responsibility
Environment
- Career security
- Opportunity for
learning and
46

47. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements &
Evaluation
Resources
Allocation
47
Assumptions

48. Staffing – Responsible Matrix
1st 2nd 3rd Duration Res-ponsible
Mar-
keting
Design Account
Engi-
neering
Pro-
duction
QA
Customer
Service
Ware-
house
Pur-
chasing
Cost
(RM'00)
Date
Incur
Marketing Survey 14 Marketing 0
Check current Market
Pricing
14 R S
Check Popular Designs 14 R S
Check Current Market
Scenario
14 R S S
Confirm Tiles Designs 7 Design 0
Select designs from
suppliers
3 R S
Select designs from
oversea files
2 R S
Meeting among NPC for
Decision
2 S R S S S S S S
Confirm Product Costing 3 Account 0
Raw material costing from
Lab Dept
2 R S
Packing, Transport &
Admin costing from mgt
account
1 R S S S S
New Product Marketing Plan 11 Marketing 0
Discuss Marketing Plan &
Strategy
8 R S S
Formulate R, P & E Pricing
Scheme
3 R S S
48Please refer to Appendix G for further details

49. Project Plan
Project
Objectives
Project Outline
Business need to
be met Constraints
Directives
Deliverables
Acceptance
Criteria
Key Risk
Staffing
Equipment &
Facility
RequirementsBudget
Performance
Measurements
& Evaluation
Resources
Allocation
49
Assumptions

50. Project Measurements and
Control
• Scenario:
50
When
• 30th October
2009
What Happen
• The project team
evaluates and
notices that raw
material costing
worth RM50,000
in total has not
been included
• The unplanned of
RM11,000 will be
incurred in the
month end of
November 2009
(above) and the
remaining
RM39,000 in the
month end of
December 2009
Result
• NPC required to
work out the
new budget
baselines in
order to seek for
approval from
management.

51. Project Measurements and
Control
• Earned Value Management (EVM)
(RM)
Accumulated
Planned
Value (PV)
Accumulated
Actual Cost
(AC)
Accumulated
Earned Value (EV)
Cost Variance (CV)
= EV-AC
Schedule Value (SV)
= EV-PV
Cost Performance
Index (CPI) = EV/AC
Schedule
Performance Index
(SPI) = EV/PV
PV AC EV CV SV CPI SPI
1-Sep 0 0 0 0 0
7-Sep 0 0 0 0 0
14-Sep 0 0 0 0 0
21-Sep 0 215000 0 -215000 0 0
28-Sep 267000 215000 267000 52000 0 124 100
5-Oct 267000 267000 267000 0 0 100 100
12-Oct 267000 267000 267000 0 0 100 100
19-Oct 267000 267000 267000 0 0 100 100
26-Oct 267000 267000 267000 0 0 100 100
2-Nov 267000 267000 267000 0 0 100 100
9-Nov 267000 267000 267000 0 0 100 100
16-Nov 267000 267000 267000 0 0 100 100
23-Nov 267000 267000 267000 0 0 100 100
30-Nov 267000 278000 267000 -11000 0 96 100
Comments
Date: 30th Oct
- Spend RM11K
extra against budget
- Amount of
RM215K been
spend earlier as
planned
CPI at 4%, under
performanced with extra
11% spend
Work completion as
planned
Proposed
rectification if
required
Date: 30th Oct
Rework the budget
in more details to
avoid unplanned
cost incur
Required to monitor the
unplanned cost, if
necessary required to
replan or request
Management budget
required to avoid over
spent from budget
allocated 51

52. Project Measurements and
Control
• Earned Value Management (EVM)
– New Budget Allocation
52
WT25x40
RM543K
Mould
Press
Punches
Conveyor
Belt
System
Packing
Machine
Corrugate
Carton
Box
Brou-
chures
Display
Rack
Exhibition
Booth &
Event
RM20K
4%
RM32K
6%
RM150K
28%
RM65K
12%
RM6K
1%
RM40K
7%
RM80K
15%
RM100K
18%
Supports - RM226K (42%)Input - RM267K (49%)
Raw
Materials
RM50K
9%
Unplanned – RM50K (9%)

53. Project Measurements and
Control
• Cost/Schedule Graph
53

54. Project Measurements and
Control
• Baselines and scope change
54

55. • Monthly Status Report
55
Project Name: ACI New 25x40cm Wall Tiles
Project Manager: Lim Shieh Chern
Status as of: 30th October 2009
Status Summary: The project is on schedule. Seeking approval from management to
approve unplanned raw material costs worth RM50,000. RM11,000 will be incurred in
next month.
Explanations: The project team had not taken into consideration some other factors
during the initial planning of raw materials. A detailed calculation indicates that an
additional allocation of RM 50,000 is needed. The allocation will be staggered over 2
months: RM 11,000 in November and RM 39,000 in December. The approval of this
additional budget is crucial in order for the project to be carried out on schedule. Slight
delay in the arrival of raw material will cause great impact to the manufacturing process
and impede the entire workflow and allocation of the company’s resource.
Total cost of approved changes: RM50,000. The amount is attributed to purchasing raw
materials
Projected cost at completion: EAC is estimated to be RM543,000. This represents an
overrun of RM50,000, given a CPI of 0.91

56. Conclusion
• ACI Will allocate 2% of its existing production capacity for
production
• The capital expenditure is small at RM493,000 with
anticipated extra reserve of RM50,000
• For FY09/10 unit selling price is budgeted at 25% lower or
$18.75 Square Meters compare to current market price
• The key risks are identified and scrutinized the severity.
Contingency plans are in place to handle the unforeseen
circumstances
• NPC strongly recommends the new ceramic wall tiles 25x40
cm to be approved
56