Super Speed rickshaw transport

The Institute Of Management Sciences

Project Management
Super Speed Transportation Service for School Children

Submitted to: Sir Khalid Mahmood Gorsi Submitted By: Qasim Naeem (082308)

Final Project

Table of Contents
Executive Summary Children Transportation Service Introduction
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Background Feasibility report Challenges Accessibility Mission Statement

Scope Description

Project Opportunity

Trend of the Industry

Project Life Cycle Project Charter Project Profile

Project Brief

Scope Definition Service Scope Service Description Project Charter Scope Activity Definition (Microsoft Project) Activity List
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Objectives Key Success Factor Swot analysis Project Investment Service Areas

Marketing

Safety Measures Pricing Plan Service operations Our Policies Rules and Regulations Payment Policy Cancellation Policy Financial Plan Profit Margin Project Cost Three Elements of Project Human resource requirement Financial charges
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Taxation Cost of capital Particular rates Service forms Risk analysis Assumptions

EXECUTIVE SUMMARY
During the past several months, I have researched the rapidly growing industry of children's transportation. With the busy schedules of dual working parents, there is a conflict in getting their children to day care, preschool, sports activities, appointments, etc. More and more parents are looking for alternative ways to transport their children without affecting their work schedule. Approximately 200 children transport companies exist across the country. I am working to set standards for the children's transportation. It is one thing to have an idea and quite another to bring it to life. It takes a lot of ambition and planning. We cater to whatever your child's transportation needs are. Your kid is enrolled in an after school care facility and you are not able to take them because you need to work, we can pick them up from school on whatever days you specify and take
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them to wherever they need to go. We also provide a wide range services within a span of 2 years. It will give total solution for your child care. We are charging more than the competitors in the market, the quality of the service will be as good as any other children transportation services companies.

Children Transportation Service

INTRODUCTION: The project is to setup a transportation service for children. This project is a stop and go service that provides safe transportation for young riders. The main idea for which I choose this project is that the busy parents often have trouble juggling their work schedule and the transportation needs of their children. This service is a home based business, is a good idea for people who enjoy being around children but don't want the larger responsibility of running a daycare. Starting a home-based business providing transportation services to children is a lucrative concept as many parents today
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have a widespread problem meeting the schedule of their young ones. As a child starts going to daycare, his needs increase. It is a project which offers dependable and safe transportation to children. It is a safe door-todoor service. BACK GROUND: There is a rapid growing industry of children's transportation. With the busy schedules of dual working parents, there is a conflict in getting their children to day care, preschool, sports activities, appointments, etc. More and more parents are looking for alternative ways to transport their children without affecting their work schedule. Approximately 300 children transport companies exist across the country. We are starting dealing in it also.

Feasibility report:

Initial assessment:

This project which I have started no one is doing this in Pakistan that is providing pick n drop services to small children. The difference in my project is that parents can
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track our rickshaws if we are late in dropping their child. This business has the opportunity to grow in the future.

Challenges:

The main challenge is to satisfy the parents and build trust between them and us. Our service is a safe, reliable, and economical way to help you manage the transportation needs of your children. It is a reliable and affordable door-to-door transportation service.

Accessibility:

The company main target is children of Johar Town, PCSIR. Tech Society, ALPHA Society and Canal View.

Mission statement:
We provide a safe, licensed transportation service for children at a reasonable price to parents. By achieving our goals, we will become a trusted, viable transportation source to parents and children in Pakistan. To enhance the existing business, reduce the cost of production and increase the profit margin.

Scope Description: Project Opportunity:

Super Speed rickshaw transport

We provide service for children. We also provide safe transportation for young riders. We also offer dependable and safe transportation to children. It is a safe door-to-door service. We provide a safe, licensed transportation service for children at a reasonable price to parents. We offer parents the convenience of the service and the comfort of knowing their children are being driven by licensed, screened and insured drivers who genuinely care about the welfare of children. Market Trend of the auto industry: Pakistan is an emerging market for automobiles and automotive parts offers immense business and investment opportunities. The total contribution of Auto industry to GDP in 2007 is 2.8% which is likely to increase up to 5.6% in the next 5 years. Total gross sales of automobiles in Pakistan were Rs.214 billion in 2006-07 or $2.67 billion. The industry paid Rs.63 billion cumulative taxes in 2007-08 that the government has levied on automobiles. There are 500 auto-parts manufacturers in the country that supply parts to original equipment manufacturers (PAMA members). Auto sector presently, contributes
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16% to the manufacturing sector which also is expected to increase 25% in the next 7 years, as compared to 6.7 percent during 2001-02.Vehicles manufacturers directly employ over 192,000 people with a total investment of over $ 1.5 billion. Currently, there are around 82 vehicles assemblers in the industry producing passengers cars, light commercial vehicles, trucks, buses, tractors and 2/3 wheelers. The auto policy is geared up to make an investment of $ 4.09 billion in the next five years thus, making a target of half a million cars per annum achievable. TREND OF THE INDUSTRY: Unfortunately, the recent downward trend in auto sales (cars + LCVs) continued as auto sales stood at 27,034 units for July-September 2008, showing a decline of 44 percent year-on-year, the data released by Pakistan Automobiles Manufacturers Association (PAMA). Automobile grew from 2001-2007, the industry and the government of Pakistan fixed a target of over half million units production by the year 2011-12 that now seems out of reach. The industry slightly fell short to achieve the targeted productions in 2006-07 when
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1,95,688 cars were manufactured against a target of 2,26,620 units. However, there was some growth in production that year. In 2007-08 the production declined to 1,87,634 units against a projected target of 2,66,543 units. In the current fiscal year they said the production is expected to decline to 1,50,107 units that are half the projected target of 3,13,486 units.

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Project Life Cycle

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I made a logical sequence of activities to accomplish the projects goals or objectives. I also defined my project key success factors. I characterize my project into different categories/parts. I efficiently plan and organize resources for each activity. I successfully complete projects from end to end. I create a project plan, resource plan, financial plan, quality plan, communications plan and procurement plan. Project Charter: Project Profile: My project is a transportation service designed just for children. We will pick up or drop off your child at various activities. Our service is a safe, reliable, and economical way to help you manage the transportation needs of your children. It is a reliable and affordable door-to-door transportation service for your most precious cargo, your children. We can help you manage your child's busy schedule by getting them to their after school programs, soccer practice, gymnastics, piano lessons, appointments and more. We understand the stress that a child's hectic schedule can have on a parent, so to help minimize your headaches and allow you some extra time, leave the driving to us. Our reliable rickshaw service will transport your busy kids to all their destinations. Project Brief:
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My project is basically to provide transportation service to the children and satisfy the security needs of the parents. We save their time of busy life. We also provide safe transportation for young riders. Scope Definition: There are two types of scope: 1. Service Scope: The service is designed just for children. We will pick up or drop off your child at various activities. Our service is a safe, reliable, and economical way to help you manage the transportation needs of your children. It is a reliable and affordable door-to-door transportation service.

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2. Service Description:
Project Charter: My project which offers dependable and safe transportation to children. It is a safe door-to-door service. We will provide the highest quality of children's transportation available. Children will be transported in the latest safety features. To achieve and maintain excellent customer service, proper training and monitoring of employees will be critical. We offer parents the convenience of the service and the comfort of knowing their children are being driven by licensed, screened and insured drivers who genuinely care about the welfare of children.
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Scope: We provide service for children. We also provide safe transportation for young riders. As a child starts going to daycare, his needs increase. We also offer dependable and safe transportation to children. It is a safe door-to-door service. We provide a safe, licensed transportation service for children at a reasonable price to parents 3. Activity Definition (Microsoft Project): Activity Sequencing Activity Duration Estimation Schedule Development 4. Activity List: Procedure for coaching insurance Settlement with auto workshop for maintenance Designing the forms Printing the forms Route designing Office setup New furniture
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Electricity arrangement Office landline Stationary Other accessories Interview for the office staff Drivers Security Guards Accountant Network Diagram Project Schedule Objectives:

To provide a safe, licensed transportation service for children at a reasonable price to parents. Enhance the business by becoming a trusted viable transportation source to parents and children in Pakistan. Contract with area service agencies, day care, preschool and recreational services that do not provide transportation. Create jobs by hiring trained drivers and office staff as our business grows.

Key Success Factor:

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1.Good customer service and value. 2.Affordable rental prices. 3.Reaching the target market. 4.Integrity in serving our customers. SWOT ANALYSIS: Strengths 1. Unique Service 2. Trendsetters [in transportation] 3. High traveler satisfaction

Weaknesses 1. Lack of an extensive transport network 2. Overcrowding of vehicles Opportunities 1. More rickshaw routes and a greater range of transport network 2. Better management of available resources 3. Innovative Marketing Threats 1. Well established competitors 2. Government policies 3. Fluctuation in fuel prices
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4. Intensive disturbances on the roads 5. Non-availability of spare parts Project Investment: Total cost of the project is worked out to be Rs. 11, 65,000.This includes a fixed cost of Rs.0.5 million and a working capital of Rs. 3 lac. Period of startup is expected to be 6 months. . Create and distribute flyers to schools, churches, gyms, daycare facilities, and other places of business along with service placement ads in the local newspapers. Services areas: We serve the following schools and facilities:

Lahore Garrison Education System Resource Academia Salamat School System Lahore Grammar School American Lyceum Beacon house School System The City School Garrison Boys and Girls High School Central Model School
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National Grammar School St. Anthonys High School Cathedral Higher Secondary School Educators Defence Public School Lahore American School Stellar School System Sacred Heart High School Lahore Presentation Convent School International School of Choueifat Imaginations Pre-School System Esena Foundation High School Convent of Jesus and Mary American International School System

Marketing: With todays busy lifestyle parents are often faced with scheduling conflicts and transportation dilemmas
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for their children. The children's transportation industry was started to help solve those dilemmas. We will provide the highest quality of children's transportation available. Children will be transported in the latest safety features, including dual airbags, child safety features, including dual airbags, child safety locks, shoulder harnesses and seatbelts. Customer service is a priority for us. We believe in the old saying "Treat others as you would want to be treated". To achieve and maintain excellent customer service, proper training and monitoring of employees will be critical. We offer parents the convenience of the service and the comfort of knowing their children are being driven by licensed, screened and insured drivers who genuinely care about the welfare of children. Unlike other transportation services, parents will have the opportunity and are encouraged to meet me at any time. Me and my will make every effort to meet area school teachers and administrators so they will be familiar with our vans and drivers. Our vans will be clearly identified by the bright red and color and sharing logo. All drivers will be issued a company identification card. Our focus is children; therefore, the safety and welfare of the children we transport will be our number one priority. Safety Features: No overcrowding. Tracking via Google and safety equipment on every rickshaw
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A registration form that provides us with the name of persons authorized to make changes to child's schedule, pickup and drop-off points and all emergency contact information All staff receives comprehensive background checks. Easy to spot uniformed drivers Support staff always available "Thumbs up for safety" policy Supervise children to make sure they get to the stop on time, wait far away from the road, and avoid rough play. Teach your child to ask the driver for help if he/she drops something near the van. If a child bends down to pick up something, the driver cannot see him/her and the child may be hit by the rickshaw . State Certified Trained Drivers Pre-Employment Security & Drug Screening First Aid & CPR Certified Identification Cards Uniformed Drivers Dispatcher on Duty Rigid 48-point Daily Van Inspections Pricing Plans: There are three types of payment structures: Monthly one-way rides,
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Monthly round-trip rides.

a.

Monthly Rates (one-way) This is the most commonly used plan in which your child will get a single ride from us on the days you specify. We offer three, four, and five days a week packages. Two days a week or less are counted as single rides. If you need for us to both drop off and pick up your child, see the Round Trip package below.
PRICE: Rs.3000

Monthly Round-Trip This option gives you the most flexibility and freedom. We will drop your child off, as well as pick your child up, wherever you need them to be. Please note - same pick-up, same drop-off. With this plan you can schedule your child for as many as five days a week. PRICE: Rs. 3500/month

Family Style 2000 for the first child, 20 % kingship for each additional sibling. This base plan is for children being picked up at the same area and going to the same drop off.
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Service Operations: The service will provide is safe responsible transportation for children. We will be transporting children to after school activities, day care, preschool etc. We will begin with four vans that will hold six children each. To best utilize these vans we have established peak transportation periods. These periods are early morning (7-8), mid afternoon (11-12), and late afternoon (3-5). We will establish routes with maximum passengers and close destinations. The summer season will bring in more charter trips as indicated by our initial responses. During non-peak periods we will be taking children to appointments or making emergency pick-ups (when a child needs to leave school due to illness). We will also use this time for administrative and marketing work. Our Policies: Rules & Regulations 1. Loud noises or inappropriate behavior will not be tolerated 2. Children must remain seated at all times while the rickshaw is moving 3. Please instruct children to only get into the. It is extremely important for your child to be ready at the pre-arranged time. 4. If you are not at home at the time arranged, you will be charged for another trip.
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5. 6. 7.

8.

Two days notice will be needed to service any request that may arise. It will be the parent's responsibility to contact me if pick-up has been cancelled. Please remind your child to be ready to go at the time is scheduled to pick him/her up or to be at the designated pick-up location as soon as his/her class or activity is done. Confirm your childs absence as much as possible. Payment Policy All transportation is prepaid to confirm your childs schedule. Scheduling of rides and billing are done mid-month and payment is due by the end of the month for the upcoming months transportation. Due to the large number of late payments, a late payment fee of Rs.15.00 will be incurred if we have not received payment by the 15th of the following month. There is also a Rs.25.00 fee for all returned checks.

Cancellation Policy There is a seven day advance cancellation policy. If canceling within that time frame, you will receive credit on your account for the upcoming month. If canceling seven days or less prior to the pickup date, there will be no credit applied to your account for the upcoming month.
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PROFIT MARGIN: Our profit margin will be approximately 25%. Resource Planning: PROJECTED COST: The projected cost for the project has been summed up as follows Cost In Rupees 400,000 10,000 3,000 40,000 30,000 20,000 8400 50,000 300,000 16,483,400

Account Head rikshaws and Insurance Business Phone Line Cellular Phones Advertising Child Transport Assoc. Fee Total Capital Cost Furniture Cost of workers Maintenance & Misc Cash in hand Total Expense

Qty 7 2,800,000 2 20,000 5 15,000 40,000 30,000 2,905,0s00

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Three Elements of Project Success

Process: a defined Method involving steps or operations

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For my project success in process I define the outcomes and listed the results I achieved. Then I solved my clients problems. My project has a definite start and end time. I finished my project on time and within budget. We deliver high quality of service to our clients and make good relationship. We give training to children also about safety measures and traffic rules. In technology, we purchase brand new buses and provide high quality security. HUMAN RESOURCE REQUIREMENT: We hire part-time shuttle drivers. Driver is a special type of person who is caring, patient and kind-hearted. It takes a person who is conscientious, safety-minded and dependable. They are interested in driving children to and from school, day care, camp and other activities each day. Schedules are flexible depending on your needs and the route. We already check their background including criminal history, child abuse history and a motor vehicle report. All reports are clean. They are checked. Random drug tests will also be checked medically. We have good drivers and works well with children. The total no of 7 drivers and 4 safety guards will be required to handle the children transportation sharing service of the proposed project. The business will work on shift basis (8 to 9 hours daily). Every driver will be paid 200rs per daily.

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Description

No

Salary

Servant

3000

Accountant

8000

Guard

4000

Driver

7000

FINANCIAL CHARGES: It is assumed that long-term financing for 5 years will be obtained in order to finance the project investment cost. This leasing facility would be required at a rate of 15% (including 1% insurance premium) per annum with 60 monthly installments over a period of five years. The installments are assumed to be paid at the end of every month. TAXATION:
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The small business is assumed to be run as a sole proprietorship; therefore, tax rates applicable on the income of a non salaried individual taxpayer are used for income tax calculation of the business. COST OF CAPITAL: Particulars Rate Required return on equity 20% Cost of finance 15% Weighted Average Cost of Capital 17.5% The weighted average cost of capital is based on the debt/equity ratio of 50:50 Service Forms

One Way Two Ways Round Trip Full Name: E-mail:

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Address: Zip Code: Telephone: Passenger: Start Date: End Date: Please give the name and address of all pickup and drop off locations: Monday: Tuesday: Wednesday: Thursday: Friday: Risk analysis: In case of accidental problem. National holidays. Financial risk in case of children low strength. My market establishment would take time.

Assumptions: If terrorism act on rickshaw then company is not responsible

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If anybody hit ma rickshaw unintentionally any damage done to the rickshaw and the children will not be my responsibility If someone take your child before the school ending then it is not my responsibility to deliver your child

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