Project Classification, Payback Period Calculation, NPV, And Project Management Structure

Project Classification

The project classification and consideration for classification are shown in the following table.

Project	Classification	Consideration
Project A Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Strategic	The new service will significantly enhance the strategic direction of the polyclinic
Project B	Operational	This project will enhance the operations of the polyclinic
Project C	Compliance	This project ensures the compliance with Singapore Quality Class (SQC) certification
Project D	Operational	This project adds a new dimension to the operational aspect of the polyclinic
Project E	Compliance	This project ensures compliance with Personal Data Protection Act (PDPA) policies and processes
Project F	Strategic	This project is completely strategic in nature

The payback period calculation is shown in the following tables.

Project A
Year	Cash Flow	Cumulative Cash Flow	Payback (Years)
0	-250,000	-250000
1	55000	-195000
2	55000	-140000
3	55000	-85000
4	55000	-30000
5	55000	25000	4.545454545
6	55000	80000	4.545454545

Hence, the total payback period for this project is 4.55 years. In addition, from the calculation in the excel sheet, it has been found that the rate of return for this project is 9%.

Project B
Year	Cash Flow	Cumulative Cash Flow	Payback (Years)
0	-350000	-350000
1	90000	-260000
2	90000	-170000
3	90000	-80000
4	90000	10000	3.888888889
5	90000	100000	3.888888889
6	90000	190000	3.888888889

The total payback period for this project is 3.9 years. Moreover, the rate of return for this project is found to be 14%.

Between the choices of these two projects, the recommended project is Project B as it has less payback period and more rate of return than Project A.

The cash flow and NPV calculation for Projects C and D are shown as follows.

Project C
Year	Inflow	Outflow	Net Flow	Present Value
0	0	75000	-75000	-75000
1	40000	3000	37000	35576.92
2	45000	3500	41500	38369.08
3	40000	4000	36000	32003.87
TOTAL	125000	85500	39500
	Net Present Value		30949.87
	IRR			24.632209%

Project D
Year	Inflow	Outflow	Net Flow	Present Value
0	0	90,000	-90,000	-90000
1	50,000	5,000	45,000	43269.23
2	60,000	7,000	53,000	49001.48
3	67,000	9,000	58,000	51561.79
TOTAL	177000	111000	66000
	Net Present Value		53832.50
	IRR			31.788880%

Based on this analysis, TPC should proceed with Project D as it has higher values in both NPV and Internal Rate of Return.

The three criteria for going ahead with Project B are listed as follows.

Criterion 1 is Payback Period. It is the highest ranked because profitability is most essential in any business.

Criterion 2 is Technology. It is medium ranked because technological consideration is one of the major considerations for TPC.

Criterion 3 is Rate of Return. It is lowest ranked because although the rate of return is important, it has less priority than the previous two.

The TWT project is explained based on the seven factors influencing the choice of project management structure as follows.

Deadline – Deadline is a very important aspect of project management. It is important to management deadlines of the project in order to avoid unnecessary complications and cost. The deadline for this particular project is 10^th June, 2019.

Budget – The decided budget for this project is $400,000 that must not be exceeded at any cost.

Stakeholders – There will be a number of stakeholders assigned in the project based on the role and function requirements. Some of the stakeholders required will be project manager, technical supervisor, finance manager and others.

Project Members – The project members will include system developers and system testers.

Demand – The project will be based on fulfilling the demands of the patients regarding an efficient system for monitoring their health without having to travel to hospitals and perform various costly tests.

Supply – The systems will be supplied to the patients at certain cost for health monitoring.

Price – The price of the product will be kept as reasonable as possible considering the development costs.

Stakeholder Group	Role in TWT Project
Management Board	Supervision and change management in the project
Development Team	Development and testing of the system
Finance Department	Management and allocation of project funds
Patients	Provide user requirements for the system

The revised work breakdown structure is shown as follows.

WBS	Task Name	Duration	Start	Finish	Predecessors
0	TPC Wearable Technology (TWT) Project	86 days	Fri 2/1/19	Mon 6/10/19
1	Project Coordination and Administration	26 days	Fri 2/1/19	Tue 3/12/19
1.1	Conduct Project Kick-Off Meeting	1 day	Fri 2/1/19	Fri 2/1/19
1.2	User Experience (UX) Study	5 days	Mon 2/4/19	Tue 2/12/19	2
1.3	Apply for HSA approval as medical device	20 days	Wed 2/13/19	Tue 3/12/19	3
1.4	Procure wearable devices and cloud computing resources	20 days	Wed 2/13/19	Tue 3/12/19	3
2	Application Development	74 days	Wed 2/13/19	Thu 5/30/19
2.1	Development	45 days	Wed 2/13/19	Tue 4/16/19
2.1.1	Develop mobile app (iOS)	45 days	Wed 2/13/19	Tue 4/16/19	3
2.1.2	Develop mobile app (Android)	40 days	Wed 2/13/19	Tue 4/9/19	3
2.2	Review and Testing	29 days	Wed 4/17/19	Thu 5/30/19
2.2.1	Architecture security review	4 days	Wed 4/17/19	Tue 4/23/19	8,9
2.2.2	Source code reviews	5 days	Wed 4/24/19	Tue 4/30/19	8,9,11
2.2.3	System Integration Testing (SIT) including payment gateway	10 days	Thu 5/2/19	Wed 5/15/19	12
2.2.4	User Acceptance Testing (UAT)	10 days	Thu 5/16/19	Thu 5/30/19	13
2.2.5	Conduct security penetration testing	5 days	Thu 5/16/19	Thu 5/23/19	13
2.2.6	Deployment to production system	5 days	Fri 5/24/19	Thu 5/30/19	15
3	Infrastructure and Security	11 days	Fri 5/24/19	Mon 6/10/19
3.1	Publicise service to pilot patients	10 days	Fri 5/24/19	Fri 6/7/19	15
3.2	Train operations support team	5 days	Fri 5/24/19	Thu 5/30/19	15
3.3	Pay all vendors and suppliers	3 days	Fri 5/31/19	Tue 6/4/19	16
3.4	Launch pilot TWT service	1 day	Mon 6/10/19	Mon 6/10/19	18,19,20

Answer to C

The total project duration is 86 days.

The completion date of the project is 10^th June, 2019.

The project starts on 1^st February and ends on 10^th June, 2019. The entire schedule has been created keeping in mind the following.

The working days are Monday to Friday.

Some of the working days are marked as public holidays.

Some of the activities can be simultaneously performed such that the overall duration can be reduced.

Item	Category	Description of Risk	Consequence
Risk 1	Technical	Various performance issues may arise due to insufficient testing	The performance issues will lead to serious complications and reduce the usability of the system
Risk 2	External	The customers may not accept the system	The entire project will be meaningless and failure
Risk 3	Organisational	The existing staffs may not be technically efficient to maintain the system	Due to lack of maintenance, the system will fail after a short period of time
Risk 4	Project Management	Schedule may not be followed and the development may take a longer amount of time	Budget overshoot will occur due to the schedule issue

Answer to b

The risk response ways and the risk response plan will be selected and performed as shown as follows.

Item	Category	Risk Response Way	Risk Response
Risk 1	Technical	Mitigate	Ensure all tests are done accurately and all the issues are solved before system launch
Risk 2	External	Monitor and Prepare	Monitor customer response towards new system and receive feedbacks from the customers before launching the system
Risk 3	Organisational	Accept	Provide technical training to the staffs
Risk 4	Project Management	Transfer	Instruct project management team to follow schedule and deliver the project within time

Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management. Project Management Institute.

Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Leach, L. P. (2014). Critical chain project management. Artech House.

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