Quality Juice made from real California fruit X470 Project Management EDP Summer 2011 Team: L 'Spawns Soif Liolios Dino, Konstantinos Singh, Shraddha Pollock,Kendra Achury, Michael Wang, Jing Nguyen, Phi Stanger, Karen

22 Organization chart Singh, Shraddha Graphic Designer Wang, Jing Process Engineer Liolios, Konstantinos Product Organizer Pollock, Kendra Product Designer Nguyen, Phi Manufacturing Engineer Achury, Michael Scientist Stanger, Karen Project Manager

3 Contents Project definition – Mission and Values – Project Statements and Chart Project analysis – Assumptions – Constraints – Stakeholders – Risk analysis Project plans – Deliverables – WBS – Milestones – Time structure – Cost/Time breakdown Monitoring and Control – Communication plan – Responsibility matrix

Mission To produce a healthy, tasty, friendly, economical, and high quality juice – Made of real California fruits! Our commitment to the highest standard is the foundation of our business. We stand behind our product. Our mission is to make world a healthier and better place to live. Values L’Spawns as a team, and as individuals, values integrity, honesty, healthiness, and a greener world. These values drive us to achieve our mission. 4

5 Project Mission Statement By Nov 1 st 2011, L’Spawns will have ready for distribution 10,000 cases of the new Naked product ‘Soif’, a seasonal Juice drink made from 40% California juice + 60% Water – delivered in a trendy re-usable bottle. Project Charter Produce a 12 oz glass bottle from recycled material that can be easily be reused by the user Create a new economical juice drink made from local California fruit Create a catchy and appealing label

6 Project Assumptions Project Constraints Vendor selections Limiting customer geography Overseas Manufacturing Facility - China Time – 6 months Budget provided by Naked Production using existing Naked facilities Distribution using existing Naked infrastructure Sales and Marketing provided by Naked

7 Project Scope In Scope: Design and acquire new bottle Develop new fruit drink recipe Design and produce bottle label Produce first batch of 10,000 cases Out of Scope: Distribution Manufacturing Acquiring capital

8 Stakeholders Naked – Sponsor Customers Manufactures Vendors

9 Risks RiskProbabilityImpactResponse Fruit unavailable MediumHighadjust recipe/flavour of beverage to reflect fruits that are available Production is delayed Medium Find alternate production plant, call in experts to fix production machinery Market Acceptance High adjust recipe/change fruit blend, add new flavour Juice

Risks RiskProbabilityImpactResponse Delivery from Manufactures LowHighContingency plan in contract with vendor for alternative bottle Materials availability Medium Find alternate materials source in advance FDA Safety compliance issue LowHighConsult the FDA post design to ensure compliance, use certified designer Bottle 10

Risks RiskProbabilityImpactResponse Not meet FDA requirement LowHighSchedule earlier, use certified designer Printing is delayed Medium Prepare alternate resource at beginning; ask for process schedule Delivery is delayed Low Schedule float time into delivery deadline Label 11

12 Deliverables 1) Bottle & Cap 2) Juice 3) Label

13 Deliverables Seasonal Juice Flavors: Summer – Organic Apple Autumn – Organic Grape Winter – Organic Orange Spring – Organic Strawberry

14 WBS

15 Milestones 1) Bottle and Cap Finalize bottle design Vendor contracts signed Prototype Final Bottle and Cap Delivery to Naked 2) Juice Vendor contracts signed Fruit Delivered Small scale production run completed Taste test/focus group completed Regulatory approval signed 3) Label Design approval Digital printing delivery

16 Project Schedule Gantt Chart Label Contents Properties Printing Bottle Development Manufacturing Juice Fruit/Vendor selection Quality Control/ Development Production MayJuneJulyAug.Sept.Oct.

Project Dash Board Gantt Chart 17

Gantt Chart (continued) 18

Gantt Chart (continued) 19

Gantt Chart (continued) 20

Gantt Chart (continued) 21

22 Cost/Time Breakdown ActivityTimeCost Materials Research5 days$800 Bottle Design5 days$2,500 Bottle Cap Design2 days$1,000 Safety seal testing1 day$1,500 Manufacturing2 months$40,000 Bottle Label ActivityTimeCost Design file ready14 days$800 Digital printing initial (deposit)1 days$1,500 Digital printing first delivery14 days$5,000 Digital printing finished2 months$7,500 Total: $15,000 $46,000

Cost Breakdown ActivityTimeCost Fruit Vendor Selection2 days$800 Fruit Purchasen/a$41,000* Watern/a$7100** Recipe Development4 weeks$3500 Focus Groups/taste test5 days$2000 Trial Run14 days$1425 Full Scale Run30 days$5700 Juice 23 *breakdown on next slide ** assuming $1/gallon Total:$62,000 Project Total:$125,000

Fruit Cost Breakdown 24 Water: 1,000 bottles (355 mL) of 60% H 2 O = 215 L or ~ 60 gallons Small scale production run For production testing, quality control, taste testing Will produce 250 bottles of each fruit flavor: 0.3 lbs fruit bottle X 250 bottles =75 lbs Organic Apple $0.7/lbs$45 Organic Grape$1.1/lbs$75 Organic Orange$0.9/lbs$70 Organic Strawberry $1.2/lbs$90

Fruit Cost Breakdown 25 Water: 120,000 bottles (355 mL) of 60% H 2 O = 26,000 L or ~ 7000 gallons Production run Juice for the market Will produce 120,000 bottles of Organic Apple: 0.3 lbs fruit bottle X 120,000 bottles =36,000 lbs Organic Grape$1.1/lbs$40,000

26 Vendor Evaluation Criteria Selection of Manufacturer (Qty: 10,000 cases, Bottles and Tops) CriteriaWeightVendor1Vendor 2Vendor 3 Anchor Glass ScoreSilver Spur ScoreGlobal Source Score Quality Delivery Cost Total score Notes: 1.Selection: 1, 3, 5 (good, better, and best) 2.Weight x Selection = Score 3.Select the highest total Score Bottle

27 Communication Plan Who?What?How?When? Naked Parent Company Project status /meetingsWeekly CustomersInformation about new product Marketing/advertise ments Weekly Fruit VendorsOrdersContractsAs needed Manufacturing Dept Scheduling requirements /meetingsBi-weekly

28 Responsibility Matrix A – approves, S – supports, C – creates, I – informs, R - reviews PMSponsor (J & R) Juice TeamBottle TeamLabel Team Bottle & Cap design AASC,R,AS Bottle Vendor selection AASC,AS Final Bottle and Cap delivery IIIAI Fruit vendor contracts signed AIC,R,ASS Fruit delivered IIAII Taste test/focus group completed AAASS Regulatory approval signed AAAAA Label Design file ready AASSC,R,A Label Digital printing delivery IIIIA

29 High Risk Control Chart

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31 Vendor Evaluation Criteria For the Bottle, Fruit, and Label we will use a simple Vendor Evaluation Criteria to determine best vendor. Cost – looking for best value (price vs quality) Quantity – need a vendor that produces large quantities Location – the closer to production plant the better Availability – growers that offer a variety of fruit throughout the year Addendum

32 Time Line Milestones serve as Monitor and Control Checkpoints for the successor tasks Thu 1/1/12 Start Mon 5/9/11 JulAugSepOctNov Dec Jan Bottle Cap Deliverable Deliver Label to Printing Company Today Vendor Contract Signed Juice flavor agreement Deliver Labels to Bottling Finish Produce Small Scale Production Fri 7/15/11Mon 10/3/11 Formal launch Full Scale Production 11/1/11 Addendum

33 WBS (in level 4) Quality Fruit Juice Label ContentsBrandContents related to FDA codesPropertiesPaperBiodegradable glue2”x12.75”Printing PlanDesign fileDigital printing Package Bottle materialMaterial researchRFPCapMaterial evaluationPrototype design Juice FruitVendor selectionChoice of seasonal fruitsQuality controlFDA regulationsTaste & RecipeProductionTrial runFull scale run Addendum