Project Development and Optimisation: Cost-Driven Project Design Optimization

This document discusses the concept of project optimization and cost-driven project design optimization in the context of project development and optimization. It explores the advantages of computer assembling over buying and provides insights into the principles of accounting and project feasibility.

ASIA PACIFIC INTERNATIONAL COLLEGE
GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student
name: Shiva om Suyal
Student ID
number: 201701111
Student
name: Nihit joshee
Student ID
number: 201600570
Student
name: Santosh Thapa
Student ID
number: 201700259
Student
name: Firoj Ghimire Sunar
Student ID
number: 201701110
UNIT DETAILS
Unit name: Project Development and Optimisation
Unit
number: SBM 3307
Course name: Class day and time: Thursday 1.30pm
Lecturer and/or Tutor
name:
ASSIGNMENT DETAILS
Title:
Word
count: Due date:
Date
submitted:
Campus (where you are
enrolled): APIC (Asia Pacific International College)
DECLARATION

SBM3307project development and optimisation
I/we hold a copy of this assignment if the original is lost or damaged.
I/we hereby certify that no part of this assignment has been copied from any other
student’s work or from any other source except where due acknowledgement is made
in the assignment.
I/we hereby certify that no part of this assignment has been submitted by me in
any other (previous or current) assessment, except where appropriately
referenced, and with prior permission from the Lecturer/Tutor for this unit.
No part of the assignment has been written/produced for me/us by any other
person except where collaboration has been authorised by the Lecturer/Tutor
concerned.
I/we am/are aware that this work will be reproduced and submitted to plagiarism
detection software programs for the purpose of detecting possible plagiarism (which
may retain a copy on its database for future plagiarism checking).
Student’s full
name: Firoj Ghimire Sunar
Student’s full
name: Santosh Thapa
Student’s full
name: Nihit joshee
Student’s full
name: Shiva om Suyal
1 | P a g e

SBM3307project development and optimisation
Table of Contents
Introduction:..................................................................................................................3
Work breakdown structure:...........................................................................................3
Principle of cost driven project design optimisation:....................................................4
Cash flow diagram:.......................................................................................................5
Application of accounting principles:............................................................................8
Project Feasibility…………………………………………………………………………10
Conclusion & Recommendation ……………………………………………………10
References:................................................................................................................10
2 | P a g e

SBM3307project development and optimisation
Introduction:
Project optimization is said to be an alternative that possess cost effective as
well as achieves the highest level of performance through maximizing the aspects
which are preferred and minimizing the ones that are undesirable (Siu, Lu &
AbouRizk, 2015). The below stated project involves the up gradation of the computer
systems and the discussion is to be carried out with the alternatives as well as cash
flow estimation in APIC College.
In this report there are four major alternatives that are being discussed but
two of them are being chosen as the best alternatives that are identified as
purchasing of computers or the accumulating parts of computer, which are to be
developed.
Buying of computer is the most simple as well as easy way. We are
provided with warranties regarding the brand new products as well as the product
trademark regarding computers which is being chosen by us. However it is very
expensive. Moreover, the assembling methodology of computers is a little time
consuming process but the expense is less. The discussion of the cost type, the
more feasible strategy as well as the cost driven principles of project will be carried
out in this project.
Work breakdown structure:
This is defined to be a deliverable oriented project breakdown into much
smaller components that are likely to be tasks, subproject, work correspondences,
subtasks and many more. This tool is depicted significant for relating the objectives
with the proper resources as well as events within a sensible structure (Robert
C.Tausworthe, 1980). The diagram of WBS, actions, which are desired for the
scheme enhancement and are presented on a hierarchical basis. This is to be
carried when the management observes the structure thus prioritizing the overall
work structure. The discussed WBS will provided a workflow representation of the
overall project. This will further supervise the necessary steps as well as procedures
for the installation of the computers within an association.
The workflow that is being carried out within this project is represented by the
WBS. This will supervise the steps as well as procedures for the up gradation of
computers in the environment of APIC.
3 | P a g e

SBM3307project development and optimisation
Cost driven project principle for optimization of design:
The design principle is planned for the assimilation of the fusion design
regarding the high rise of the estimated construction charges while the alternative
plan are influenced by design thus enhancing the maintenance fees (H.J.Park,
2014). The project of cost driven mainly comprises of 2 sections i.e. Cost regulation
of flexible design replacement and the selection of the most suitable substitute for
the inimitable design variable values.
The projects regarding cost driven are stated to be the most suitable as well
as reasonable cost and quality. However the budgeting problem may arise as there
is a chance of the increase in the estimation costs. The most significant factors
regarding a project is said to be time as well as cost. This are to be adhered for the
effective project run. The project as discussed in this report is asll about up gradation
of the computers in APIC college for 5 years. The total number of computers to be
installed are 30.
4 | P a g e
1.Up gradation of
APIC computer
sytems
1.1 Requirement
s[pecifications
Computer upgrade
of internal
businesses
1.1.2 Computer
upgrade of
externalbusinesses
1.1.3 Technical
specification
requirement
1.2 Attainment
1.2.1 Hardware
- Prooposal
Request - Product
Purchase
-
1.2.2 Software
-Prooposal
Request
-Licensed product
purchase
1.2.3
Buying the whole
computer system or
distingusighing the
harware as well as
software
1.3 Installation
1.3.1
Hardware as well
as software
installation
1.3.2 Installation of
network server and
its enactment
1.3.3 Backup of the
ovearall files that
caab be used for
future referenecs.
1.4 Implementation
1.4.1 Database
shift as well as
maintenance
1.4.2 Preparation
of testing
1.5 Testing
1.5.1 Operating as
well as switching
over the new
systems
1.5.2 Project
Documentation
1.5.3. Notification to
the end users fo rall
the implied actions

SBM3307project development and optimisation
Comparison of costs:
Computer buying Cost Computer Assemble Cost
Capital $ 25000 Capital $ 25000
Analysis of System $ 4000 Analysis of System $ 4000
Licensing fee
(renewal period: 1 yr)
$ 3000 Licensing fee
(renewal period: 1 yr)
$ 2000
Insurance (per
annum)
$ 2500 Charges of Labour $ 1000
Server $ 3500 Server $ 3500
Upkeep cost (per
annum)
$ 400 Upkeep cost ( per
annum )
$ 1100
Total $ 38400 Total $ 36600
From stated study among the 2 constraints it can be said the assembling
computers incur less cost rather than buying a whole computer. The licensing fee,
fee of insurance as well as the charges of maintenance are the factors that are to be
paid on a regular basis every year for the next 5 years. Moreover, an assembled
computer system costs less as there is no possible requirements of the hardware as
well as software, thus not paying any extra fee for the software and accessories.
Diagram of Cash flow:
The cash flow diagrams provides permission to an individual for providing
clear depiction of the effective flow of cash and landscape regarding both outflows
and inflows. The map of cash flow encompasses the overall proof of cash flows thus
maintaining the monetary strength. This includes both the information as well as
dispensation regarding the cash flows within a benefit (John L. Kemper et.al, 2010).
The possible operator cash flow is collected through an effective service level
contract as well as money information. After this the overall flow of cash is being
yield to the operational committee. The manipulation is to be allowed for the
information of economy to disintegrate the flow of cash which is to be considered by
the exploiter (Ronald.E.Sloan et.al, 2011). The graphical representation of the cash
flow diagram is stated as the expense flow which are depicted as either negative or
positive. Numerous expenses can be identified while updating new servers as well
5 | P a g e

SBM3307project development and optimisation
as computers within an organization. In this case no inward flow of cash is present,
thus the project possess only outward flow. The cash flow is provided in the given
figure.
Cash flow regarding computer buying:
Cash In Flow
Cash Outside flow
Fig: diagram of cash flow regarding purchasing a computer.
Cash flow regarding computer assembling:
Inside Flow
Outside flow
Figure: diagram of cash flow regarding assembling a computer.
6 | P a g e

SBM3307project development and optimisation
The sated diagrams depicts the sash flow regarding both computer buying
and its assembling. If the diagrams are critically assessed then it can be identified
that the yearly cost like the cost of insurance, maintenance as well license are to be
paid annually. For this costs the overall sum for the 5years is identified that, cost of
puchasing a computer device is much costly rather assembling a computer. The
issues likely insurance, servers, installation, up keeping as well as asset costs
makes installation procedure costly. The cost for assembling computers are effective
as well as can perform the same. The cost of maintenance regarding an assembled
computer is way less than an overall system cost. The procedure of the installation
regarding the assembled computers are also cost effective in case of the up
gradation of computers.
Terminology of Cost
The cost determination technology amplifies the business to improve thus by
the identification of the most profitable services as well as values. Five types of
terminologies are being depicted, these are the variable cost, sunk cost, fixed cost,
direct cost and indirect cost. The Fixed cost means that cost remains fixed all
through the project. Variable cost varies with the project execution. Indirect cost are
said to be the project that is not linked to the project. Lastly sunk cost, the cost which
does never plays part for the future determination of project.
Cost Type The overall cost associated with the project.
Fixed cost Salaries, administrative cost, payment of loan, Capital cost
and insurance premiums
Indirect cost cost for controlling Quality, insurance,
Sunk cost Charge of installation, lincensing key
Variable cost Utilities cost, cost of materials , cost of maintenance
Direct cost Cost of labor, salary of employees as well as suppliers and
equipment
There is a necessity for the classification as well as identification of the costs.
This is much more important for the analysis of the project. This is why we need the
cost structure. The life cycle as well as the WBS provides significant features to the
time of development of the cost structure.
7 | P a g e

SBM3307project development and optimisation
Application regarding principles of accounting:
The values of accounting are said as the general rules as well as regulations
which are required by the associating for following the financial information as well
as records. The accounting serves information which are quantifiable regarding the
empowerment of executives to enhance the business. The basic importance if the
financial reports, the approaches of accounting, and its dimensions are important for
the analysis of the data as well as important constraints regarding the complications
of the business (Eades et.al, 2010). In addition to this case, the principles should be
crucially followed. The disparity in the estimation of cost as well as those incurred
are to be critically assessed and calculated. The application of the principles
provides a thorough analysis of the required budget as well as analysis of cost.
The initial cost of this project is to run an operation of the overall development
thus regulating the payment of interests. This project faces the depreciation of the
previous computers as well as devices and items that are decreased. Furthermore
regarding the depreciation as well as market value for future is also depicted in the
project.
Project feasibility:
The main aspect of this project is to deal with the computer installation at the
college of APIC. The computer devices that are to be installed are said to be
assembled with the collection of the various requirements regarding hardware and
software. The cost of the amassed computers are much low-priced than the
computers which are branded. The project is said to develop the computers that are
with high abilities which can enhance the usage of any desired hardware as well as
software. The devices that are assembled provide enhanced skills as well as
innovations. The alternative that is the branded computers are much more expensive
regarding the warranty and the insurance associated with it.
Thus, the installation of the computers that are assembled within the
environment of APIC is depicted as the most feasible product among the two
alternatives of the devices. The computers that are assembled are stated to be much
cheaper. Moreover, they also possess the capability for serving with great standard
as well as high performance. The procedure of installation regarding the computers
which are assembled are also budget friendly. These are mainly established
8 | P a g e

SBM3307project development and optimisation
possessing the high humanoid skills, thus they are friendly for the reputed
organizations. Thus it may be concluded that the project has great feasible
capabilities regarding the assembled computers.
Conclusion and Recommendation:
Thus from the report stated above it is easily depicted that the most cheapest
as well as reliable path is the assembling of the computers. The comparison
between the big organizations and other institutes of education it was observed that
most of the organizations use assembled computers rather than buying the devices.
The significant companies like Google, Facebook also uses assembled computers
while the big universities like UWS, La Trobe also uses the assembled computers
within their organization. Moreover the budget is high for buying a computer. The
primary aim regarding the project is to understand new and innovated ideologies
regarding the assembling of computers. With the mention of the reputed
organizations that are using assembled computers, it can be suggested that the up
gradation of the computer system must be done through assembling of computers.
In addition to this, it is finally concluded that the assembled computers are much
more cheaper for a five year project lifecycle and this is due to the fact that the
amount of yearly payment are much lesser than that of purchasing computers.
9 | P a g e

SBM3307project development and optimisation
References:
Ronald.E.Sloan, Stephen,B.slutsky (2011), Financial planning and counseling
system projecting user cash flow, pt no. US7921048 B2, pg 1-2.
John L. KemperF. Scott WhippleTimothy M. McLuckie (2010), Cash flow aggregation
system and method, pt no. US 7,797.213 B2, pg 1-2.
Eades, K. M., Laseter, T. M., & Skurnik, I. (2010). The portable mba.
H.J. Park and J. Chen (2014), a cost-driven design optimization Framework, pg 967-
968
Robert C.Tausworthe (1980), Journal of Systems and Software, Volume 1, 1979–
1980, Pages 181-186.
Siu, M. F. F., Lu, M., & AbouRizk, S. (2015). Methodology for crew-job allocation
optimization in project and workface scheduling. In Computing in Civil Engineering
2015 (pp. 652-659).
10 | P a g e

SBM3307project development and optimisation
Marking Criteria:
Assessment
Attributes
Level of Attainment
Fail Pass Credit Distinction High
Distinction
Marks
Obtained
Explain the
principles of
cost-driven
project design
optimization
(40%)
Inadequate
understanding
of principles
of cost-driven
project design
optimization;
cannot discuss
concepts in
own words
Basic
knowledge
only of
principles
of cost-
driven
project
design
optimizati
on; limited
depth of
basic
concepts
Exhibits
breadth and
depth of
understanding
of principles of
cost-driven
project design
optimization
Exhibits
accurate and
detailed breadth
and depth of
understanding
of principles of
cost-driven
project design
optimization
Displays
exceptional
understanding
of concepts
and their
practical
application of
principles of
cost-driven
project design
optimization
Develop
project
feasibility
reports based
on the critical
analysis of
project data
(30%)
Inadequate
understanding
of project
feasibility
reports based
on the critical
analysis of
project data;
cannot discuss
concepts in
own words
Basic
knowledge
only of
project
feasibility
reports
based on
the critical
analysis of
project
data;
limited
depth of
basic
concepts
Exhibits
breadth and
depth of
understanding
of project
feasibility
reports based
on the critical
analysis of
project data
Exhibits
accurate and
detailed breadth
and depth of
understanding
of project
feasibility
reports based
on the critical
analysis of
project data
Displays
exceptional
understanding
of concepts
and their
practical
application of
project
feasibility
reports based
on the critical
analysis of
project data
Apply
accounting
principles in
the analysis of
project
budgets and
financial
projections
(30%)
Inadequate
understanding
of accounting
principles in
the analysis of
project
budgets and
financial
projections;
cannot discuss
concepts in
own words
Basic
knowledge
only of
accounting
principles
in the
analysis of
project
budgets
and
financial
projections
; limited
depth of
basic
Exhibits
breadth and
depth of
understanding
of accounting
principles in
the analysis of
project
budgets and
financial
projections
Exhibits
accurate and
detailed breadth
and depth of
understanding
of accounting
principles in the
analysis of
project budgets
and financial
projections
Displays
exceptional
understanding
of concepts
and their
practical
application of
accounting
principles in
the analysis of
project
budgets and
financial
projections
11 | P a g e

SBM3307project development and optimisation
concepts
TOTAL MARKS: Total Marks Obtained: 75-80
Students:
Shiva om Suyal Student ID number: 201701111 mark =80
Nihit joshee Student ID number: 201600570 mark =75
Santosh Thapa Student ID number: 201700259 mark =75
Firoj Ghimire Sunar Student ID number: 201701110 mark =75
Comments:
Good progress from previous assignment.
Demonstrated involvement and understanding of fundamentals.
Insert figure numbers.
Lecturer: Michael Roomina Location: Sydney Date:12 Apr 2018
12 | P a g e