Project Management Assignment Solution

This assignment delves into the crucial aspects of project management, specifically addressing resource allocation, cost baselining, and schedule optimization. It presents a scenario involving resource constraints and guides you through adjusting the project schedule to accommodate these limitations without delaying the final completion date. The solution highlights the importance of effective resource planning and its impact on project costs and timelines.

Unit Code: MAN6925
Unit Title: Project Management
Semester: Two
Assignment 1
Name of University
Name of Student
Dated:

Project Management Plan
Table of Contents
Scope Statement...............................................................................................................................3
Work breakdown structure..............................................................................................................4
Estimates..........................................................................................................................................5
Stakeholder Management Plan........................................................................................................8
Communication Plan.......................................................................................................................9
Risk Analysis.................................................................................................................................10
Procurement Plan...........................................................................................................................12
Gantt chart.....................................................................................................................................13
Critical Path...................................................................................................................................14
Critical Chain.................................................................................................................................15
Cost baseline..................................................................................................................................16
References......................................................................................................................................19
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Project Management Plan
Scope Statement
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.
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Project Management Plan
Work Breakdown Structure
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
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Project Management Plan
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
Estimates
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
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Project Management Plan
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
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Project Management Plan
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
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Project Management Plan
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.
Stakeholder Management Plan
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 Internal High High Monthly Need to satisfy all needs and
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Project Management Plan
Subcontractor 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
Communication Plan
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
Meeting
room
Presentation,
E-mail
To keep updated
regarding the
Monthly
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Project Management Plan
quality progress and
forecasts
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 Analysis
Ris
k
No.
Description Type Likelihoo
d
(L)
Impac
t
(I)
Produc
t
(L*I)
Ran
k
Owner Response
1 Non
availability
of
manpower
during
project
Threat 40% 80% 32% 1 Project
Manage
r
Extra
manpower
need to be
kept in
hand and
recruited
well
before the
requireme
nt
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
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Project Management Plan
3 Delay in
delivery of
server
Threat 30% 90% 27% 2 Project
Manage
r
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
subcontract
or can
obtain more
confidence
and quote
for more
bigger
projects in
future
Opportunit
y
10% 40% 4% 4 Project
Manage
r
Need to
enhance
the
opportunit
y to
establish
good
market
value
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Project Management Plan
Procurement Plan
Sl
No.
Item Supplier Quality
of
Product
Delivered
on Time
Quality of
Documents
Cost
Escalatio
n
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.
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Project Management Plan
Gantt chart
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Project Management Plan
Critical Path
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Project Management Plan
The activities shown in red colored bars are the critical path activities.
Critical Chain
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
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Project Management Plan
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.
Cost baseline
WBS Cost Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18
1 $221,320
1.1 $10,560
1.1.1 $0
1.1.2 $6,160 $6,160
1.1.3 $0
1.1.4 $4,400 $4,400
1.1.5 $0
1.2 $50,240
1.2.1 $0
1.2.2 $8,680 $8,680
1.2.3 $0
1.2.4 $4,400 $4,400
1.2.5 $4,400 $4,400
1.2.6 $7,920 $7,920
1.2.7 $4,760 $4,760
1.2.8 $7,920 $7,920
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Project Management Plan
WBS Cost Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18
1.2.9 $6,160 $6,160
1.2.10 $6,000 $6,000
1.2.11 $0
1.3 $131,120
1.3.1 $0
1.3.2 $18,400
1.3.2.1 $0
1.3.2.2 $12,000 $6,000 $6,000
1.3.2.3 $6,400 $4,000 $2,400
1.3.2.4 $0
1.3.3 $60,200
1.3.3.1 $0
1.3.3.2 $6,800 $6,800
1.3.3.3 $18,000 $6,000 $6,000 $6,000
1.3.3.4 $3,400 $3,400
1.3.3.5 $30,000 $20,000 $10,000
1.3.3.6 $2,000 $1,000 $1,000
1.3.3.7 $0
1.3.4 $28,800
1.3.4.1 $0
1.3.4.2 $6,400 $6,400
1.3.4.3 $9,600 $1,000 $8,600
1.3.4.4 $6,400 $6,400
1.3.4.5 $6,400 $6,400
1.3.4.6 $0
1.3.5 $17,800
1.3.5.1 $0
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Project Management Plan
1.3.5.2 $9,000 $1,000 $8,000
1.3.5.3 $0
1.3.5.4 $8,800 $8,800
1.3.5.5 $0
1.3.6 $5,920
1.3.6.1 $0
1.3.6.2 $4,400 $4,400
1.3.6.3 $1,520 $1,520
1.3.6.4 $0
1.4 $29,400
1.4.1 $0
1.4.2 $6,600 $2,000 $4,600
1.4.3 $9,600 $3,000 $6,600
1.4.4 $4,400 $4,400
1.4.5 $4,400 $4,400
1.4.6 $4,400 $4,400
1.4.7 $0
$19,240 $27,480 $24,080 $22,200 $30,400 $16,000 $2,000 $35,800 $19,720 $20,000 $4,400Total
Cost baseline
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Project Management Plan
References
Piscopo, M. (2017). Scope Management Plan. Retrieved October 3, 2017, from
http://www.projectmanagementdocs.com:
http://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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