Personnel Budget

      During the first two weeks of each phase, the Project Manager (or Junior Project Manager) will assemble the remaining members of the Sous Chef team. The annual salary for each employee has been determined based on the salary range provided by www.salary.com for each position. The salary for each intern has been determined based on the amount Old Dominion University Computer Science Department pays undergraduate student interns.

Phase 1 - Personnel

      The days worked for each employee have been determined based on the Work Breakdown Structure. The employee cost has been determined based on the annual salary given for each employee and the number of days each employee will be needed. The employee overhead is forty percent of the total employee salary. This figure is based on Old Dominion’s employee overhead.

Phase 2 - Personnel

      All personnel required for Phase II are shown below along with their perspective salaries and amount of time needed. During this phase, all employees will hold at least a bachelor’s degree in their perspective field. There will not be a need for consultants during this phase.

Phase 3 - Personnel

      After six months of production, the Sous Chef team will evaluate the progress of production and the success of the project. At this time, the team will estimate the budget for the following year. Based on a successful initial production period, the Sous Chef team estimates the annual production budget to be as follows:

      We have calculated an expected budget for 2 years of phase 3 operations. During the first year of operation, we will supply Sous Chef to the eleven Wal-Mart Supercenters in the Hampton Roads area. During the second year of phase three we will bring online the other 43 supercenters in Virginia.

Expense Summary

The total budget for Phase I through Phase III is based on the total budget for the Phase I, Phase 2 and two years of Phase III.

Net Income Summary

      Each store will be charged an initial set-up fee of $80,000, which will include the initial consultation, the install and the training of the equipment and database usage. There will also be an annual fee of $36,000 for access to the Sous Chef database as well as maintenance and troubleshooting of the system. The development costs of Phase I, phase II, and the first two years of phase III are $4,387,769. The team plans on recouping the production costs during the second year of phase III. In order to achieve this goal we will need to bring one store per month online for the first year of phase III, then increase to four stores per month during the second year of phase III.

      Once the initial development costs have been recouped, the development costs will be approximately $1,909,232. This amount will be made up each year by the maintenance fees. If we successfully reach our goal during the second year of phase III, our profit will be $2,192,231.