Term Project 1 - PMO - Group 2

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Apr 3, 2024

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Term Project 1 – Business Case Proposal for Toyota EPMO Group 2 Student Name Student Number Lo, Geianne Joyce 301237756 Mendez, Kristina Joyce 301313872 Owarieta, Oghenero 301275053 Santiago, Emmanuel 301331635 The Business School, Centennial College PMGT 729 - Project Management Office Professor Joan Rempel January 30th, 2024

Table of Contents Lists of Tables and Figure...………………………………………………………………………...2 I.Executive Summary ………………………………………………………………………………2 II.Summary of Current Challenges & Opportunities ………………………………………………4 II.1 Challenges ……………………………………………………………………………4 II.2 Opportunities …………………………………………………………………………4 III. Detailed Impact Analysis of Gaps & Opportunities. ………………………………………… .... 5 IV. PMO Goals and Measures ……………………………………………………………………… 6 V. Anticipated Costs and Returns …………………………………………………………………..7 V.1 Anticipated Costs.………………………………………………………………………..7 V.2 Anticipated Returns ………………………………………………………………… ....... 8 VI. Anticipated Risks …………………………………………………………………………… .... 9 VII. Sign-Off to Proceed ………………………………………………………………………….12 1

Lists of Tables Table 1. Detailed Impact Analysis of Gaps & Opportunities …………………………………….5 Table 2. PMO Goals and Measures ………………………………………………………………6 Table 3. Anticipated Costs ………………………………………………………………………..7 Table 4. Anticipated Risks ………………………………………………………………………..9 List of Figure Figure 1. Heat Map ……………………………………………………………………………...10 Figure 2. Existing PMO Organizational Chart ………………………………………………….10 Figure 3. Propose PMO Organizational Structure ………………………………………………11 2

I. Executive Summary This Proposal will give specific recommendations on how to set up a Project Management Office (PMO) for our chosen organization, Toyota. Toyota is a Japanese car company that started in 1937. Over the years, the company has been dedicated to maintaining high-quality and efficient products, which has made it very popular. Today, Toyota has expanded its product reach to over 170 countries and regions (Toyota Motor Corporation, n.d.) As the company grew, its project management office and standards also evolved to enhance Toyota's operations. In this report, we will focus on suggesting the type of PMO implementation that would support the ongoing growth of Toyota. In that regard, we have noted challenges in 3 areas, and these are the reason why we recommended setting up a EPMO Organization for Toyota. Firstly, managing process change posed difficulties, requiring careful navigation. Secondly, there is a high percentage of contractor-to-employee ratio making us vulnerable to losing knowledge or leaking confidential information. Lastly, fostering a collaborative culture proved challenging due to Toyota's global reach, requiring effective communication and coordination across diverse teams. Overcoming these hurdles was crucial for the successful execution of the project, highlighting the need for strategic solutions tailored to address the unique complexities 3

associated with process change, contractor involvement, and global collaboration within the organizational context. II. Summary of Current Challenges & Opportunities As Toyota embarks on this journey to establish a PMO, the organization is poised to not only overcome existing challenges but also to capitalize on numerous opportunities to elevate its project management capabilities. Challenges (Project Auditors, 2002): 1. Complex Project Portfolio : If Toyota is managing a complex portfolio of projects, a PMO can help streamline project management processes, ensuring better coordination and alignment with organizational goals. 2. Resource Allocation : In the automotive industry, resource management is crucial. A PMO can assist in optimizing resource allocation, preventing bottlenecks, and ensuring efficient use of personnel and financial resources. 3. Global Operations : If Toyota operates globally, managing projects across different regions can be challenging. A EPMO can provide standardized project management methodologies and tools, fostering consistency and collaboration across the organization. Opportunities (Project Auditors, 2002): 1. Strategic Alignment : A EPMO can ensure that projects are aligned with Toyota's overall business strategy, contributing to the achievement of organizational goals and objectives. 4

2. Improved Decision-Making : By centralizing project information and providing accurate and timely reports, a PMO can empower leadership with the necessary data for informed decision-making. 3. Risk Management : Proactive risk management is crucial in the automotive industry. A PMO can establish risk management processes to identify, assess, and mitigate risks associated with projects, ensuring a more resilient organization. 4. Efficiency and Standardization : A PMO can bring consistency to project management processes, methodologies, and documentation, leading to increased efficiency and quality in project delivery. 5. Enhanced Communication : Improved communication within and across project teams is a significant benefit of a PMO. Clear communication channels foster collaboration, reduce misunderstandings, and enhance overall project success. III. Detailed Impact Analysis of Gaps & Opportunities CHALLENGE IMPACT OPPORTUNITY Complex Project Portfolio  Project delays and overruns due to lack of coordination.  Difficulty in prioritizing projects in alignment with organizational goals.  Inefficient use of resources across multiple projects.  Establish a PMO to streamline project management processes.  Implement standardized project prioritization methodologies.  Improve coordination for better project delivery. Resource Allocation  Bottlenecks in production due to resource constraints.  Ineffective use of personnel allocation.  Because contractors are more prevalent,  Implement a PMO to optimize resource allocation.  Develop resource management strategies to prevent bottlenecks.  Enhance flexibility in 5

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