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Change Management
[Name of the Student]
[Name of the University]
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Contents
Introduction: Company Profile-TESCO ....................................................................................... 4
2. Three issues with Overall Operations Transfer process, logistics, Escalation ........................... 5
2.1Description of First Issue identified: Transfer Process .......................................................... 5
2..1.1 Why there is a need for improvement ........................................................................... 5
2.1.2 Benefits if improvement is made ................................................................................... 5
2.2Description of the Second Issue: Logistics ........................................................................ 6
2.2.1 Need of Improvement .................................................................................................... 6
2.2.2 Benefits of Improvement ............................................................................................... 6
2.3 Description of the Third Issue: Escalation ........................................................................ 6
2.3.1Need for Improvement .................................................................................................... 7
2.3.2 Benefits of Improvement ............................................................................................... 7
3 Literature Review: Project Appraisal and Methods ..................................................................... 7
3.1 Definition of Project and Project Appraisal .......................................................................... 7
3.1.1 Project Appraisal Method 1: Net Present value ............................................................. 8
3.1.2 Project Appraisal Method 2: Payback Method .................................................................. 8
3.1.3 Project Appraisal Method 3: Internal Rate of Return ........................................................ 8
3.1.4 Project Appraisal Method 4: Profitability .......................................................................... 9
3.2 Application of Project Appraisal Criteria and Method to improve the three identified issues
..................................................................................................................................................... 9
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3.2.1 Improvement on Transfer process with Net Present Value method ............................ 10
3.2.2 Improvement in Logistics with the help of Payback Method ...................................... 10
3.2.3 Improvement in Escalation issue with Profitability issue ............................................ 10
3.3 Selecting the Improvement issue to implement .................................................................. 11
4.0 Literature Review on Radical Change and Continuous Improvement ............................... 11
4.1 Literature Review of Radical Changes ............................................................................... 11
4.2 Literature Review for Continuous Improvement ................................................................ 11
4.3 Application of Continuous Improvement to Implement Changes is TESCO ..................... 12
5. Draft Project Plan Summary ..................................................................................................... 13
6 Literature Survey of Risk Management ..................................................................................... 13
6.1 Risk Criteria and Appropriate Evaluation Method ............................................................. 14
6.2 Continuous improvement and quality assurance risk ......................................................... 15
6.3 Qualitative Analysis ............................................................................................................ 15
7.0 Evaluation of Final Plan.......................................................................................................... 16
8.0 Conclusion .............................................................................................................................. 17
References ..................................................................................................................................... 18
Appendix ....................................................................................................................................... 21
Table 1Project Evaluation Table ................................................................................................... 10
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Table 2 Risk Management Analysis (Cho, 2016) ......................................................................... 16
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Title: Change Management
Introduction: Company Profile-TESCO
TESCO is supermarket retailer which provide products and services related to household
items. TESCO was founded in 1919when Jack Coheh started selling an extra number of
groceries to people in East London. This helped him to earn a profit one percent profit from
daily groceries sale. The Supermarket dealer was turned into a brand in 1924 (Lukic,
2016.).The initialproducts were launch in the form of supermarket chains and this business
started to grow for people.
TESCO Plc is the largest business retailer supermarket in the UK.It has more than 2291
stores and employees which are offered a job record to 580000.TESCO provide a range of
products and services. These include the food materials and groceries. Materials are packed
and stored in a clean environment to consumers (Müller, 2015). Other services include the
furniture deliverysystem. TESCO has managed to form a place in the business of Garden
furniture.
TESCO provides services related to Home electrical products in the UK.These are essential
for the consumers because few items remain on the expensive list. The toys and leisure
products are provided under the single hut of Tesco. In addition to the products TESCO also
provides mobile payment services to customers (Kukreja & Gupta, 2016). There are
additional setups added to the company for customers’ convenience.
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2.Three issues with Overall Operations Transfer process,logistics,Escalation
2.1Description of First Issue identified: Transfer Process
The first issue which is identified in TESCO is the transfer process of retail products to
customers. The system which is used in transfer management relies on the services of internet
applications.This produces a draw for company operations and daily practices are affected
(Touboulic & Walker, 2015). The competitors like ASDA,Morison finds its advantages and uses
the weakness in operation for their own product improvement.TESCO sales have been affected
by transfer process and work operation is limited to hours (Lindner, et al., 2014).
2.1.1 Why there is a need for improvement
As the transfer process requires time in hours, TESCO customers have been affected.
Thecompany has faced the financial loss of 150000 dollars (Tesco, 2018). This also reduced the
daily supply of groceries to regular customs.There is a need for change because it will improve
the transfer process and allow the company to have increased in the number of sales from the
Supermarket utility.
2.1.2 Benefits if improvement is made
This improvement will create an increase in a number of jobs for TECO which at the present
state is declining to 9 percent (Altamony, et al., 2016). This will also increase the loyalty of
customer as the grocery purchase will become efficient and a good reputation will be made in the
retail sector. TESCO will attract chances of new investment and project and efficienttransfer
system will reduce the time-consuming operations.
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2.2Description of the Second Issue: Logistics
The current demand for business in retail requires Logistics. One of the key issues in the
operations management of TESCO is the logistics sector which is not incorporatedinto the other
managementdepartments (Dalton, 2017).This has created complexity in business process as the
stocks are not executed properly and the competitors use the advantage for Retail Market.
2.2.1 Need of Improvement
The logistics system is not capable to meet the requirement of groceriesstores. It requires
improvement in order to raise the profit of TESCO. In the modern world Groceries and food
items are transported according to the specifications of the product (Cook, 2017). TESCO needs
to manage its small sector as the there are frequentdiscontinuations to orders and the stock level
is declining.
2.2.2 Benefits of Improvement
TESCO will have a good position in the market as compared to the competitors like Wait rose
and Morrison. The UK market is competitive and by increasing the standard of logistics services
it will help TESCO to gain profit from the logisticstrategy (Venkatesh, 2016). It will also
improve the inventory system and warehousing. Material Handling will be improvingthrough
proper transportation routes and resources for import and export strategy will be optimized
2.3 Description of the ThirdIssue: Escalation
The TESCO operations have been unable to record escalation in terms of stocks and existing
market shares (Kelly, et al., 2016). This is due to the performance issues where the standards of
grocery products are not met in regard to the consistency. This effect the regular operation where
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the company has to resolve the issue of growth (Tesco, 2018). The recent situation of the
countrysuggests that due to less growth most of the people have lost their employment.
2.3.1Need for Improvement
TESCO operations need growth in all of the important sector.This is requirement off the
organization and it will change the number of employment standards (Morgan, 2015) (Fujita, et
al., 2017). The growth is required as its an important part of the change management and it
resides on the number of projects and their completion.
2.3.2 Benefits of Improvement
The growth will increase the number of projects for TESCO. The products quality and internal
environment will be enhanced. The loyalty of the customer will increase the existingreputation of
TESCO and it will affect the overall efficiency of Operations (Nishimura, 2016). The cost and
expenditure will also decline to the escalation of TESCO management.
3 Literature Review: Project Appraisal and Methods
3.1 Definition of Project and Project Appraisal
The project is defined as a set of activities which are given to an organization under the
completiontime. Theseactivities form a task which is required to be given at the desired
deadlines.This whole procedure will require planning and motivation because all the necessary
elements can be fulfilled with the help of specific cost and performance (Harrison, 2016). The
quality is made the first area for people in order to understand the nature of project appreciate
appraisal is taken out in support of the recent performance (Al-Ani, 2015). This performance is
assessed and returns are given in the form of financial statements. The four project appraisal
techniques which will be used under the contact of TESCO are Net Present Value, Payback,
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Internal rate of return and ProfitabilityIndex. These four elements will be compared with the
change management for T Organization (Bunyan, 2015).
3.1.1 Project Appraisal Method 1: Net Present value
The work of Ondrej shows the importance of Net present value approach which can be used in
projects like supermarkets (Zivalsky, 2014). This method basically focuses on the techniques
which can be used for true innovation of the project. This also provides benefits and advantages
of the technique.The innovation of organization and projects is required to be measured using
this criteria (Zokaei, et al., 2016). The first divisionremains under technical aspect ns second is
classified in term of economicssector.Net Present approach is related to the future cash flows.
The is a measure of investment need for an organization (Nakamura & Suzuki, 2015).
Net present values are measured with the of the mathematicalequation where the organization
values domains in the Numerous and Overall cash generation and the discounted rate remains in
the denominator for summation (Johansson & Kriström, 2015).
3.1.2 Project Appraisal Method 2: Payback Method
The payback period can also have helped to manage the project appraisal techniques. The study
made by Mawih Kareem present a strong idea of Payback ratio method and its importance in
judging the criteria for project Appraisal (Al-Ani, 2015). One of the most importantconcepts for
project appraisal is the Payback method. It helps to evaluate the capital budgeting decision and
this technique is used in a variety of project for a number of years.
The variables in this technique are the profitability and profit. They are presented in the form of
uncertainty (Pellicer, et al., 2016).The payback period is calculated with the help of dividing the
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cost with the annual sales for the organization. Liquidity and Payback period prove an important
area for the organization.
3.1.3 Project Appraisal Method 3: Internal Rate of Return
The internal rate of return is also a technique used in project appraisal method (Zhou, et al.,
2015). This forms the area of change management where the rates are calculated based on the
fixed sales of the organization. According to D.Adrian. The Internal rate of return is linkedto the
budgeting techniques (D. Adrian Doss, 2010).There are wide varieties of project management
present for private projects. Is require the attention of new investment plan which hasan internal
rate of return. This method relies on the project appraisal and can provide guidance for the
investment decisions (Dalal-Clayton & Sadler, 2014).
3.1.4 Project Appraisal Method 4: Profitability
According to the studies of Jihane and Loubna, Profitability technique is used in projectappraisal
as it provides necessary information about performanceand requirements for the investor. It is a
reliable method which can be used to regulate all the risk for the project (Al-Qubatee, et al.,
2017). Measuring the profitability of project in terms of change management is
complexlyexercised (Santiago-Brown, et al., 2015).The criteria for the Project appraisal can be
used to monitor the particulars of each project and provide traditional methods for the
performance evaluation. This criterion is simple to use and it will deliver the required results
(Gharib & Benabbou, 2017).
3.2 Application of Project Appraisal Criteria and Method to improve the three identified issues
The table below evaluates the four project appraisal methods and their relationshipto the project.
All four methods are selected in regard to them to the application for the change. The areas
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which are highlighted for changes are evaluated for the basic concepts of project appraisal and
the check is made on the base of criteria is a useful method as it saves times and provides
instruction to implement form comparison of sources and changes proposed.
Author Method Three main criteria for Improvement
in the Transferprocess, Logistics,and
Escalation
Simple
Method
Concept
Easy to
Understand
Fast
Implementation
Jihane Gharib 2017 Net Present Value
OndĜej 2013 Payback
D. Adrian Doss,2010 The internal rate of return
Mawih Kareem Al-
Ani,2015
Profitability
Table 1Project Evaluation Table
3.2.1 Improvement on Transfer process with Net Present Value method
The improvement will be made by collecting the total value of the organization and dividing
with the present reserves. If the reserved are accounted for 200000 US dollars they will be
divided by shares of 5000 US dollars. This will reduce the time of product transfer for TESCO
and increase the project completion rate for the Supermarket company (Habib, 2016).
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3.2.2 Improvement in Logistics with the help of Payback Method
The project appraisal technique will calculate the total cost of logistics for the TESCO records of
six months to one year. This amount will be dividedby the per day loss of funds. The equation
will be made in such a way where total project funds will be divided by each day share of
logistics cost (Buchanan & Bastian, 2015).
3.2.3 Improvement in Escalation issue with Profitability issue
This growth will be adjusted with the help of assessment of total records. This forms the whole
area where change is required. TESCO main products are related to the supermarket supply. This
forms the changes in profitability as the sales are divided by the total profit (Norman & Kabwe,
2015).
3.3 Selecting the Improvement issue to implement
The logistics issue will be easier to implement because it will only require a change in
technology. This will be the core area for the net present value of TESCO. It will also ensure the
products are sold on equal time limits and there isan increase in the standard of service (Lakshmi
& Rao, 2017). The process requirement will be improved through payback method and growth
will be implemented with the help of profitability criteria.
4.0 Literature Review on Radical Change and Continuous Improvement
4.1 Literature Review of Radical Changes
Radical change is defined a restructuring process for the traditional concepts of changes.
According to Rodney Mc Adams, this change is quite wide and it is important to understand the
basics of radical change for an organization (McAdam, 2003). He developed a conceptual model
which is a suitable way of using this approach.The change management’s concept of Business
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process reengineering can be used for this method. This will help to reveal the methodologies
whichareoutlinedin conceptualmodel. According to Haydn, outcomes of radical changes are
related to the public-sectoragency (Bennett, et al., 2018). There is a difference between outcomes
perceived. TheBusiness research is an important area and it can be correlated for undergoing
radical changes (Engen & Holen, 2014).
4.2 Literature Review for Continuous Improvement
Continuous improvement remains the first side of the change as there have been three decades
for continuous improvement. According to Lidia, this improvement is related to the evolution of
different fields and it combines the quantitative as well as the qualitativeprocess (Sanchez &
Blanco, 2014). They were the resistance of continuouslyimproving for survey and research
methodologies by the mainfocus remain on the survey tools. The studies of Jagdeep Singh also
highlights the importance of continuousdevelopmentbecause ofanother extensive amount of
research present in this change tool. This methodologyis implemented in the literature with the
help of solid practices (Singh & Singh, 2015).
4.3 Application of Continuous Improvement to Implement Changes is TESCO
The continuous development tool will be used to implement final changes to the setup of
TESCO. The factors which led to this decision are a changerequired for the supermarket are not
technical and will be resolved by the software improvement.2) Thistechnique has less installation
cost and better productivity3) Economics are resolved 4) There are issues related to
communication to operation department. The reason why Continuous development was choosing
depend upon the techniques. In this case, it was linked with the context of TESCO.
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Author RC CI Beneficial For Issue
Rodney McAdam
Fundamental concept
Business
reengineering
Marit Engen (2014) Comparison of
Methodologies
LyndiaSanchez
(2014)
Three Decades of
Continuous
Improvement
Jagdeep Singh (2015) Continuous
Improvement
Philosophy
5.Draft Project Plan Summary
The Draft plan will use the 50 Task and develop a timescale for all the activities.The first area
will be related to planning and second will be related to check the approach. In companies
related to supermarket and grocery, there iscontinuous improvement available for all the
operations project. Thecontinuous improvements will be made through the concept of Lindia
where the three decades of improvement were used, the project plan will of less than five months
and it will start for June 1,2018, to November 1st,2017.
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The initial step will be planning made by the TESCO teams. This will use the whole logistic
services where customer support services and product deliveryservices will be targeted. Then a
software will be developed and all the necessary changes will be implemented in the final area of
the plan.
6 Literature Survey of Risk Management
Mostafa provided an overview of the risk identification between projects. Riskidentification is
carried out with the help of effective techniques. The probability of risk is present in all the
projects. Thisuncertaintycannot be avoided (Kotb & Ghattas, 2017). These risks are identified
with the help of root causes of risk. Edward Cho has discussed the prevalence of risk in projects
like supermarkets. These barriers need to explore with the help of proper risk framework (Cho,
2016).
Risk management and planning are areaswhich can in any project facility. It is necessary to
mitigate the effects of potential problems. A risk in any uncertain even willdepend on the nature
of the project.There are no guarantees present in the project guidelines (Marcelino-Sádaba, et al.,
2014).
The studies made by Ajay also help to explain the barriers which are present in the changing
world in regard to risk option. Herethe focus was on the developed countries where risk is also
present for the construction projects (Gajanan.Bhave, et al., 2014).
Author Risk
Management
Process
Description Methods
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Mostafa (2017) Risk Planning Risk
Identification
barriers
PMI
STANDARDS
Edward Cho
(2016)
Risk
Management
Risk
Management
Framework
Ajay Gajnan
(2016)
Risk
Management
Opportunities
and approaches
Surveys,
information
collection
Byrne Risk
Management
Planning SWOT analysis,
Surveys
6.1 Risk Criteria and Appropriate Evaluation Method
Performance Cost Time
Problems may occur for the
process design
Technical people More time will be required
Technology limitations Company products Lengthy practices
Logistics issues Miss communication Materials will be required
Section risk Poor understanding of
Profitability
Pending tasks
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6.2 Continuousimprovement and quality assurance risk
There is risk associated with the quality of products and safe warehousing. The first area is the
human resource and storage capabilities for TESCO. The reduction of a number of skilled people
will provide a threat to changes. Change can also be reduced with the implementation of unions
and groups present in TESCO. The systems and technical requirements can also impede
improvement.
6.3 Qualitative Analysis
The qualitative analysis will be based on the risk associated with the Supermarkets. The high
level of risk will be related to operations management.Low and medium level risk will be
identified with the failure analysis as all the weak areas will be removed and a proper change
will be implemented.
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Table 2 Risk Management Analysis (Cho, 2016)
7.0 Evaluation of Final Plan
The final plan is made on the basis of risk assessment criteria. The radical and continuous
changes philosophies are implanted and the final guidelines for risk are carefully prepared to
support the draft. The final form is free from errors and mistakes.
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8.0 Conclusion
This report was constructed to analyze a company situation of change management and propose
a thorough analysis of the desiredorganization. Three changes were investigated in the TESCO
organization and a proper evaluation was given for the project appraisal techniques. Appraisal
techniques were applied to evaluate the change management and finally, the critical review of
radical changes and continuous changes were applied. In the end,the riskwas analyzed with the
help of literature and project framework. The project plan ensured that risk is present in every
part of an organization. It is required to have basic criteria of risk analysis and evaluation. The
change was brought in three areas of operation. The final form will help project manager of
TESCO to apply these changes again a net profit for escalation.
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Appendix
ID DepartmenTask Duration Start Finish Predecessor Total Slack Cost Resource Name
1 Delievery Plan: Define the change to be implemented for TESCO using continuous Improvement. Do check the a 60 Tue1/5/2018 1/6/2018 32.964 days Tesco manager
2 Delievery Devlop draft project plan ti improve process and submit for delievery lead approval 1 1/5/2018 2/5/2018 122.94 days $8.00 TESCO project Manger 1
3 Delievery Devlop SOP for current process 2 3/5/2018 5/5/2018 119 days $2.20 TESCO project Manger 2
4 Sales Sales lead receives contract known as request for servcie fro UKB and assings to technical support 1 6/5/2018 7/5/2018 58.06 days 821.92 TESCO Sales lead
5 Techical technical team to advise consutant 2 8/5/2018 9/5/2018 5 58.06 420.2 TESCO techical
6 Sales Sales support for technical contact on commerical lead 1 10/5/2018 10/5/2018 4 56.08 200 TESCO sales support
7 sales Commerical lead updates TESCO accounts and create invoce for the Administration 5 11/5/2018 16/5/2018 6 58.06 400 TESCO commercial lead
8 CommericaReevenue collection department controls the operation system 1 17/05/2018 17/05/2018 7 58.06 200 TESCO rfs ad
9 CommericaWhen the Inputs are received the RFS add to Vendor Response 1 18/05/2018 18/05/2018 8 58.06 215 TESCO rfs ad
10 CommericaRevenue deaprtment for TESCO adds to sales approaval for supermarket 1 19/05/2018 19/05/2018 9 58.06 215 TESCO rfs ad
11 CommericaNew request is sens to commerical service of supermarket 1 20/05/2018 20/05/2018 10 58.06 215 TESCO rfs ad
12 sales The sales resposne to TESCO is followed by the bank approval 1 21/05/2018 21/05/2018 11 58.06 820.42 TESCO Sales lead
13 Delievery Delivery to the project manager 3 22/05/2018 25/05/2018 12 58.06 1800TESCO Project manager lead
14 PMO PMO creates information on timesheetand creates folder to add the Revenue and share point 1 26/5/2018 26/5/2018 13 100 200 TESCO Admin
15 Delievery The logistics process is transformed 1 27/5/2018 27/5/2018 98 400TESCO Project manager lead
16 Delievery The assigned PM checks that TESCO check the existing sites and countries for draft project plan 1 28/5/2018 28/5/2018 14 98 420 TESCo Project Manager
17 Delievery PM organizes office and email the bank 5 29/5/2018 3/6/2018 15 93 2000 UCB Project Man
18 Delievery PM updates the process 5 4/6/2018 9/6/2018 82 1000 UCB Network
19 UCB Bank provides appraoval for TESCO 2 10/6/2018 12/6/2018 20 80 1000 Admin
20 UCB TESCO configuration is achieved 3 13/6/2018 16/6/2018 20 70 2000 Network
21 Outsource Vpaper work process 2 17/06/2018 19/06/2018 23 62 1000 Project Manager
22 Outsource Vadd certifacation for the retail process 5 20/06/2018 26/06/2018 56 2000 Network
23 Delievery Make deleivery 4 27/06/2018 1/7/2018 25 51 1600 TESCO PROJECT manager
24 UCB Conduct testing 1 2/7/2018 2/7/2018 28 46 200 TESCO Project admin
25 ManagemeSend email to the delievery system 3 3/7/2018 06/07/2018 37 1200 TESCO project manager
26 ManagemeChecklist for the delivery 1 7/7/2018 Sat07/07/18 22 30 400 TESCO Project Manager
27 Delievery When confirmed report goes from Banl to the PM. 3 8/8/2018 Wed11/07/07 33 32 200 TESCO Project Manager 2
28 Delievery Conduct analysis of the report 1 12/7/2018 Tue 12/07/18 11 100 TESCO Project Manager
29 PMO Document project plan and workshop 1 13/07/2018 Wed13/07/18 30 100 TESCO PROJECT Manager
30 Delievery Conduct analysis of the report 3 14/07/2018 Sun17/07/18 0 1200 UCB project Manager
31 Delievery Communicate the CI approved project for TESCO delevery 1 18/07/2018 Mon18/07/18 0 218 Network
32 Delievery Organize and facilitate presentation 1 19/07/2018 tue 19/07/18 0 200 TESCO project manager
33 Delievery Organizte a final communication 1 20/07/2018 Wed20/07/18 0 100 Project Manager
34 Delievery record risk 1 21/07/2018 Thu21/07/18 0 100 TESCOproject manger 3
35 Delievery Communicate to TESCO 1 22/07/2018 Fri22/05/18 0 2400 Tesco Project manager 2
36 UCB Compelte the process of change 2 23/07/2018 Mon25/07/18 5000 TESCO Project Manager 2
37 ManagemePaper work 1 24/07/2018 Sun24/07/18 45 200 TESCO Project Manager 3
38 Delievery paper work process 3 25/07/2018 Thu28/07/18 47 400 TESCO Project Manager 4
39 ManagemePaper work and email 2 29/07/2018 Sun31/07/18 50 200 TESCO Project Manager 5
40 Delievery Deliery to the schedule 1 1/8/202018 Mon1/08/18 51 100 TESCO Project Manager 6
41 PMO Billing and delivery 3 2/8/2018 Fri5/08/18 52 200 TESCO project Manager 2
42 Delievery Final lesson for the document 2 6/08/2018 Mon08/08/18 0 100 TESCO project Manager 3
43 ManagemeDelivery Approval 1 09/08/2018 Tue09/08/18 0 400 TESCO project Manager 4
44 Delievery Organise project 2 10/8/2018 Fri12/08/18 0 200 TESCO project Manager 5
45 ManagemeMangement appraoval from the administration 1 13/08/2018 Thu13/08/18 1200 TESCO project Manager 6
46 ManagemeOrganisation and hands all meeting 4 14/07/2018 Tue18/08/18 2400 TESCO project Manager 7
47 Delievery Finalize project 5 19/08/2018 Mon24/08/18 100 TESCO PMO Admin
48 PMO Organise the meeting 6 25/08/2018 Mon31/08/18 150 TESCO PMO Admin
49 share point for the pacakge 1 1/09/2018 Tue1/09/18 120 TESCO PMO Admin
50 Closure of the project 2 2/9/2018 Fri04/09/18 110 TESCO PMO Admin
51 Apply the CI System 3 5/9/2018 Tue08/09/18 100 TESCO project
52 Maintain the diversity 4 9/9/2018 Sun13/09/18 400.42 TESCO project
53 Maintin the risk 5 14/09/2018 19/09/18 200.02 TESCO project
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