Scope Description (Piscopo, 2017): The scope of the project is to plan, design, procure, develop and install a costing system by which the client can generate automatic cost figures and curves like cost baseline, earned value figures, forecast figures and current percentage completion of the project. The scope also involves the procurement of 30 PCs, 1 Server and Windows 10 operating system which are required to be installed for developing this new costing system.
High-level Requirement: The requirements for the project must be developed by gathering the information and stakeholder’s expectations. The high-level requirements from the project are the generation of cost forecast, cost baseline, cost curves, earned values and many more. The system should provide the access to all users and capable to enter as many data as the user wants to develop the desired result.
In-Scope: To provide the planning, designing, procuring and installing the costing system and provide go-live supports.
Out-of-Scope: Any installation or maintenance related issues after the project handing over shall be treated as extra or additional and is not part of the scope of current project.
Deliverables: The main deliverables are to design, install & deliver the costing project within the budgeted time, cost and maintaining the quality standards
Constraints: The major constraint is the delivery period and installation time allotted for the server and the availability of key resources during the project life cycle as per the requirement.
Assumptions: The working days per week shall be 5 days (excluding the weekends). All the resources shall be available throughout the project period, cash flow shall not be an issue for the project and the approvals of documents shall not take more time than anticipated.
|
WBS |
Task Name |
|
1 |
Costing Project |
|
1.1 |
Initiation |
|
1.1.1 |
Milestone: Start the Costing Project |
|
1.1.2 |
Develop the Project Charter |
|
1.1.3 |
Approve PC to officially start project & nominate the PM |
|
1.1.4 |
Identify the Stakeholders |
|
1.1.5 |
Milestone: Finish the Initiation Stage |
|
1.2 |
Planning |
|
1.2.1 |
Milestone: Start the Project Planning phase |
|
1.2.2 |
Gather Requirement |
|
1.2.3 |
Approve the Requirements |
|
1.2.4 |
Develop Project Management Plan |
|
1.2.5 |
Develop Scope Management Plan |
|
1.2.6 |
Develop Time Management Plan |
|
1.2.7 |
Develop Procurement Management Plan |
|
1.2.8 |
Develop Risk Management Plan |
|
1.2.9 |
Develop Cost Management Plan |
|
1.2.10 |
Finalize the Technical specification |
|
1.2.11 |
Milestone: Finish the Project Planning Phase |
|
1.3 |
Execution |
|
1.3.1 |
Milestone: Start the Execution Phase |
|
1.3.2 |
Designing Phase |
|
1.3.2.1 |
Milestone: Start the Development Phase |
|
1.3.2.2 |
Design the System |
|
1.3.2.3 |
Design the Database of the Costing Project |
|
1.3.2.4 |
Milestone: Finish the Development Phase |
|
1.3.3 |
Procurement of Material |
|
1.3.3.1 |
Milestone: Start the Procurement Phase |
|
1.3.3.2 |
Order Servers |
|
1.3.3.3 |
Manufacture & delivery of Servers |
|
1.3.3.4 |
Order 30 PCs |
|
1.3.3.5 |
Deliver 30 PCs |
|
1.3.3.6 |
Purchase Windows 10 License |
|
1.3.3.7 |
Milestone: Finish the Procurement Phase |
|
1.3.4 |
Install the system |
|
1.3.4.1 |
Milestone: Start the Installation Phase |
|
1.3.4.2 |
Install Server |
|
1.3.4.3 |
Set-up all 30 Client’s PCs |
|
1.3.4.4 |
Install the developed system |
|
1.3.4.5 |
Install the OS |
|
1.3.4.6 |
Milestone: Finish the Installation Phase |
|
1.3.5 |
Test |
|
1.3.5.1 |
Milestone: Start the Testing Phase |
|
1.3.5.2 |
Develop a Testing Procedure |
|
1.3.5.3 |
Get approval of testing Procedure |
|
1.3.5.4 |
Test all the developments |
|
1.3.5.5 |
Milestone: Finish the Testing Phase |
|
1.3.6 |
Handover & Acceptance |
|
1.3.6.1 |
Milestone: Start the Handing over & Acceptance Phase |
|
1.3.6.2 |
User acceptance testing of the developed & Installed application |
|
1.3.6.3 |
Go Live |
|
1.3.6.4 |
Milestone: Finish the Handing over & Acceptance Phase |
|
1.4 |
Close-Out & Evaluation |
|
1.4.1 |
Milestone: Start the Close-Out & Evaluation Phase |
|
1.4.2 |
Provide Training |
|
1.4.3 |
Provide Go live support |
|
1.4.4 |
Document Lessons Learned |
|
1.4.5 |
Review the Project outcomes |
|
1.4.6 |
Document the evaluation report & Handover |
|
1.4.7 |
Milestone: Finish the Costing Project |
Analogous Estimation Technique (Usmani, 2017): This technique is used by comparing the cost of similar project done by the same company or some other. It has the risk of estimation like the location of project, change in resource cost due to time etc.
The Cost estimated by the project Manager from some other similar one and added ROM = 20% extra to counter the unknown risks:
Cost of doing the similar project by other organization = $ 200,000
Add 20% additional (unknown risks) = $ 40,000_____
Total Estimation (as per Analogous Technique) = $ 240,000
Parametric Estimation Technique: this technique uses the per unit calculation of similar project and use it for calculating the cost estimation of the new project. Let, the cost of developing similar costing project by other company per computer = $ 7,500 / PC.
So, by applying the parametric technique of cost estimation, we can derive the cost of installing 30 PCs = $7,500 x 30 Nos. of PC = $ 225,000
By using the Parametric Technique the cost estimation = $ 225,000
Bottom-Up Estimation Technique: It is the most accurate technique which we shall use to develop the cost estimation. The risk reserves are already considered in the cost of each resource.
The unit cost of each resources:
|
Resource Name |
Type |
Material Label |
Initials |
Group |
Max. Units |
Std. Rate |
Accrue At |
|
Project Sponsor |
Work |
PS |
Client |
100% |
$0.00/hr |
Prorated |
|
|
Project Manager |
Work |
PM |
Subcontractor |
100% |
$110.00/hr |
Prorated |
|
|
Procurement Expert |
Work |
PE |
Subcontractor |
100% |
$85.00/hr |
Prorated |
|
|
Design Expert |
Work |
DE |
Subcontractor |
100% |
$75.00/hr |
Prorated |
|
|
Installation expert |
Work |
IE |
Subcontractor |
100% |
$80.00/hr |
Prorated |
|
|
Trainer |
Work |
TR |
Subcontractor |
100% |
$55.00/hr |
Prorated |
|
|
PC – 30 Nos. |
Material |
30 Computers |
PC |
$30,000.00 |
End |
||
|
Sever |
Material |
Server |
SE |
$18,000.00 |
End |
||
|
Windows 10 |
Material |
Operating System |
WI |
$2,000.00 |
End |
All the resources are assigned to each activity to develop the bottom-up estimation:
|
WBS |
Task Name |
Resource Initials |
Estimated Cost |
|
1 |
Costing Project |
$221,320.00 |
|
|
1.1 |
Initiation |
$10,560.00 |
|
|
1.1.1 |
Milestone: Start the Costing Project |
$0.00 |
|
|
1.1.2 |
Develop the Project Charter |
PM |
$6,160.00 |
|
1.1.3 |
Approve PC to officially start project & nominate the PM |
PS |
$0.00 |
|
1.1.4 |
Identify the Stakeholders |
PM |
$4,400.00 |
|
1.1.5 |
Milestone: Finish the Initiation Stage |
$0.00 |
|
|
1.2 |
Planning |
$50,240.00 |
|
|
1.2.1 |
Milestone: Start the Project Planning phase |
$0.00 |
|
|
1.2.2 |
Gather Requirement |
DE,IE |
$8,680.00 |
|
1.2.3 |
Approve the Requirements |
PS |
$0.00 |
|
1.2.4 |
Develop Project Management Plan |
PM |
$4,400.00 |
|
1.2.5 |
Develop Scope Management Plan |
PM |
$4,400.00 |
|
1.2.6 |
Develop Time Management Plan |
PM |
$7,920.00 |
|
1.2.7 |
Develop Procurement Management Plan |
PE |
$4,760.00 |
|
1.2.8 |
Develop Risk Management Plan |
PM |
$7,920.00 |
|
1.2.9 |
Develop Cost Management Plan |
PM |
$6,160.00 |
|
1.2.10 |
Finalize the Technical specification |
DE |
$6,000.00 |
|
1.2.11 |
Milestone: Finish the Project Planning Phase |
$0.00 |
|
|
1.3 |
Execution |
$131,120.00 |
|
|
1.3.1 |
Milestone: Start the Execution Phase |
$0.00 |
|
|
1.3.2 |
Designing Phase |
$18,400.00 |
|
|
1.3.2.1 |
Milestone: Start the Development Phase |
$0.00 |
|
|
1.3.2.2 |
Design the System |
DE |
$12,000.00 |
|
1.3.2.3 |
Design the Database of the Costing Project |
IE |
$6,400.00 |
|
1.3.2.4 |
Milestone: Finish the Development Phase |
$0.00 |
|
|
1.3.3 |
Procurement of Material |
$60,200.00 |
|
|
1.3.3.1 |
Milestone: Start the Procurement Phase |
$0.00 |
|
|
1.3.3.2 |
Order Servers |
PE |
$6,800.00 |
|
1.3.3.3 |
Manufacture & delivery of Servers |
SE |
$18,000.00 |
|
1.3.3.4 |
Order 30 PCs |
PE |
$3,400.00 |
|
1.3.3.5 |
Deliver 30 PCs |
PC |
$30,000.00 |
|
1.3.3.6 |
Purchase Windows 10 License |
WI |
$2,000.00 |
|
1.3.3.7 |
Milestone: Finish the Procurement Phase |
$0.00 |
|
|
1.3.4 |
Install the system |
$28,800.00 |
|
|
1.3.4.1 |
Milestone: Start the Installation Phase |
$0.00 |
|
|
1.3.4.2 |
Install Server |
IE |
$6,400.00 |
|
1.3.4.3 |
Set-up all 30 Client’s PCs |
IE |
$9,600.00 |
|
1.3.4.4 |
Install the developed system |
IE |
$6,400.00 |
|
1.3.4.5 |
Install the OS |
IE |
$6,400.00 |
|
1.3.4.6 |
Milestone: Finish the Installation Phase |
$0.00 |
|
|
1.3.5 |
Test |
$17,800.00 |
|
|
1.3.5.1 |
Milestone: Start the Testing Phase |
$0.00 |
|
|
1.3.5.2 |
Develop a Testing Procedure |
DE |
$9,000.00 |
|
1.3.5.3 |
Get approval of testing Procedure |
PS |
$0.00 |
|
1.3.5.4 |
Test all the developments |
PM |
$8,800.00 |
|
1.3.5.5 |
Milestone: Finish the Testing Phase |
$0.00 |
|
|
1.3.6 |
Handover & Acceptance |
$5,920.00 |
|
|
1.3.6.1 |
Milestone: Start the Handing over & Acceptance Phase |
$0.00 |
|
|
1.3.6.2 |
User acceptance testing of the developed & Installed application |
PM |
$4,400.00 |
|
1.3.6.3 |
Go Live |
IE,PM |
$1,520.00 |
|
1.3.6.4 |
Milestone: Finish the Handing over & Acceptance Phase |
$0.00 |
|
|
1.4 |
Close-Out & Evaluation |
$29,400.00 |
|
|
1.4.1 |
Milestone: Start the Close-Out & Evaluation Phase |
$0.00 |
|
|
1.4.2 |
Provide Training |
TR |
$6,600.00 |
|
1.4.3 |
Provide Go live support |
IE |
$9,600.00 |
|
1.4.4 |
Document Lessons Learned |
PM |
$4,400.00 |
|
1.4.5 |
Review the Project outcomes |
PM,PS |
$4,400.00 |
|
1.4.6 |
Document the evaluation report & Handover |
PM |
$4,400.00 |
|
1.4.7 |
Milestone: Finish the Costing Project |
$0.00 |
So, by conducting the Bottom-Up estimation the accurate cost estimate = $ 221,320
This estimation shall be used to develop the further figures.
|
Stakeholders |
Internal / External |
Power |
Interest |
Frequency |
Action |
|
Project Sponsor |
Internal |
High |
High |
Monthly |
Need to satisfy all needs and expectations |
|
Project Manager |
Internal |
High |
High |
Weekly |
Need to coordinate with all the stakeholders to meet their expectations |
|
Team members |
Internal |
Low |
High |
Weekly |
Need to submit the reports for PM, PM shall compile and forward to sponsor & Head of subcontractor |
|
Head of Subcontractor |
Internal |
High |
High |
Monthly |
Need to satisfy all needs and expectations |
|
Users |
Internal |
Low |
Medium |
Monthly |
Need to update the project status |
|
Vendor / Supplier |
External |
Low |
Low |
Monthly |
Need to visit the shop to check the accurate information of manufacturing and delivery |
|
Stakeholder |
What Information |
Where to Share |
How to Share |
Why to Share |
When to Share |
|
Project Sponsor |
Reports related to cost, time and quality and change orders |
Meeting Room |
Presentation, E-mail |
To update all the information as per the expectation |
Monthly |
|
Project Manager |
Vendor progress report, all progress reports from different disciplines |
Meeting room, E-mail |
E-mail, Reports |
To update the project status and concerns from all corners |
Weekly |
|
Team members |
Reports of their individual discipline |
Meeting room, E-mail |
E-mail, Reports |
To update the Project Manager about the status and concerns of their own disciplines |
Weekly |
|
Head of Subcontractor |
Reports related to cost, time and quality and change orders |
Meeting Room |
Presentation, E-mail |
To update all the information as per the expectation |
Monthly |
|
Users |
Progress report of time and quality |
Meeting room |
Presentation, E-mail |
To keep updated regarding the progress and forecasts |
Monthly |
|
Vendor / Supplier |
Progress reports and issues and forecast dates |
Meeting Room, Vendor’s Shop |
Presentation, At shop status |
To update the status of the manufacturing & delivery phases |
Weekly |
|
Risk No. |
Description |
Type |
Likelihood (L) |
Impact (I) |
Product (L*I) |
Rank |
Owner |
Response |
|
1 |
Non availability of manpower during project |
Threat |
40% |
80% |
32% |
1 |
Project Manager |
Extra manpower need to be kept in hand and recruited well before the requirement |
|
2 |
Cash crunch in between the project |
Threat |
20% |
90% |
18% |
3 |
Project Sponsor |
Reserve need to be analyzed and kept to counter such issue |
|
3 |
Delay in delivery of server |
Threat |
30% |
90% |
27% |
2 |
Project Manager |
Need to get the vendor report regular basis and conduct shop visit to assess the ground situation at regular intervals |
|
4 |
By achieving the project delivery milestone subcontractor can obtain more confidence and quote for more bigger projects in future |
Opportunity |
10% |
40% |
4% |
4 |
Project Manager |
Need to enhance the opportunity to establish good market value |
|
Sl No. |
Item |
Supplier |
Quality of Product |
Delivered on Time |
Quality of Documents |
Cost Escalation |
Overall Performance |
|
1 |
Server |
V#1 |
Satisfied |
Delay of 10 days |
Satisfied |
7% escalation charged |
Since quality was good, so the life time cost of the product will be less. Hence satisfied |
|
2 |
PC – 30 Nos. |
V#2 |
Less Satisfied |
On time |
Less Satisfied |
Nil |
Warranty for 2 years provided, so the inferior quality shall be covered up by the warranty period. Hence Satisfied |
|
3 |
Windows 10 |
V#3 |
Satisfied |
On time |
Satisfied |
Nil |
Satisfied from all dimensions. |
The critical chain is the path which is formed due to the constraints of the project. The real constraint in the schedule developed is the ‘Resources’. The resources which are acting as constraints for the project are:
The resources in red color are the real constraints which are actually driving the project and if the leveling is done it can further delay the project. But leveling is must for the project completion without any risk. So one option is to increase the resources or the other is to delay the activity. MSP has one more feature to level the resource within the available float of the activities without delaying the final date.
The result of such operation in MSP is:
|
Resource Name |
Type |
Material Label |
Initials |
Group |
Max. Units |
Std. Rate |
Accrue At |
Base Calendar |
|
Project Sponsor |
Work |
PS |
Client |
100% |
$0.00/hr |
Prorated |
Standard |
|
|
Project Manager |
Work |
PM |
Subcontractor |
100% |
$110.00/hr |
Prorated |
Standard |
|
|
Procurement Expert |
Work |
PE |
Subcontractor |
100% |
$85.00/hr |
Prorated |
Standard |
|
|
Design Expert |
Work |
DE |
Subcontractor |
100% |
$75.00/hr |
Prorated |
Standard |
|
|
Installation expert |
Work |
IE |
Subcontractor |
100% |
$80.00/hr |
Prorated |
Standard |
|
|
Trainer |
Work |
TR |
Subcontractor |
100% |
$55.00/hr |
Prorated |
Standard |
|
|
PC – 30 Nos. |
Material |
30 Computers |
PC |
$30,000.00 |
End |
|||
|
Sever |
Material |
Server |
SE |
$18,000.00 |
End |
|||
|
Windows 10 |
Material |
Operating System |
WI |
$2,000.00 |
End |
By doing this the resource ‘Procurement Expert’ got released from being exhausted and the schedule has adjusted their dates without delaying the final completion date.
References
Piscopo, M. (2017). Scope Management Plan. Retrieved October 3, 2017, from https://www.projectmanagementdocs.com: https://www.projectmanagementdocs.com/project-planning-templates/scope-management-plan.html#axzz4tfIbGW8q
Usmani, F. (2017). 4 Tools to Estimate Costs in the Project Management. Retrieved October 3, 2017, from PM Study Circle: https://pmstudycircle.com/2012/06/4-tools-to-estimate-costs-in-the-project-management/
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