Project Management Plan & Risk Analysis

This assignment delves into the intricacies of project management by outlining a structured plan encompassing technical requirements, procurement strategies, and risk mitigation approaches. A detailed Gantt chart, critical path diagram, and cost baseline are presented to visualize project execution and financial management. The document meticulously analyzes potential risks associated with technical challenges, procurement processes, and improper resource allocation. Strategies for addressing these risks are also proposed, emphasizing the importance of experienced stakeholders and thorough planning.

Running head: PROJECT COSTING SYSTEM
Case Study: Project costing system
Name of the Student
Name of the University
Author’s Note

1
PROJECT COSTING SYSTEM
Table of Contents
1. Project scope.......................................................................................................................2
2. Estimates.............................................................................................................................3
3. Stakeholder management plan............................................................................................4
4. Work breakdown structure..................................................................................................5
5. Communication Plan...........................................................................................................6
6. Risk analysis.......................................................................................................................6
7. Procurement Plan................................................................................................................8
8. Gantt chart.........................................................................................................................10
9. Critical path.......................................................................................................................11
10. Critical chain.................................................................................................................12
11. Cost baseline.................................................................................................................13
12. S- Curve........................................................................................................................13
Bibliography.............................................................................................................................14

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PROJECT COSTING SYSTEM
1. Project scope
The scope of the project is mainly divided into in-scope as well as out-scope. The in
scope of the project includes:
 The system is quite cable of creating baseline
 The system must forecast the cash value as well as earned value quite properly
 The system must be able to import data as well as enter data.
 The server of the system must be added to the existing network
The out scope of the project include
 The system is in cable to analyze to purpose the cash flow forecasting
 The system is unable to identify the data type.
2. Estimates
The estimates include:
Analogous estimate: Analogous estimate is one of the acts of utilizing former
projects for estimating the time as well as cot of the project. The project manager estimates
that the total time that is needed for completing the entire project is around 159 days whereas
the cost that is required as per ROM is round $73, 320.00
Parametric estimate: Parametric estimation is defined as the task of looking at the
past projects for getting information about the time requirement of the current project. It is
identified that the project manager wants to undertake feasibility study for the project and for
this the project manager need to know the time as well as cost of the resources. The project
manager utilizes past data and found that the resource cost for the feasibility test is around
$30 per hour and the required time is around 4 days. Thus the project manager assumes the
budget for feasibility test is around (30*8* 4= 4960.00)

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PROJECT COSTING SYSTEM
Bottom –up estimate: It is considered as one of the technique that helps in allowing
the ability to get proper redefined estimate of a specific component of work. The cost that is
required for completing the activities of the project is around $73,320. The other additional
cost of the project is around $20,000.00 and thus the total cost of the project is around
$93,000.00
Task Name Cost
Development of project costing system $73,320.00
Initiation phase $8,920.00
Developing business case $840.00
Undertaking feasibility study $960.00
Establishing project charter $1,400.00
Appointing project team $2,080.00
Requirement gathering $840.00
Technical specification $2,800.00
Completion of initiation phase $0.00
Planning phase $17,040.00
Creating project plan $3,120.00
Creating resource plan $960.00
Creating financial plan $1,920.00
Creating quality plan $2,600.00
Creating risk plan $1,960.00
Creating acceptance plan $2,880.00
Creating communication plan $1,440.00
Creating procurement plan $2,160.00
Completion of planning phase $0.00
Execution phase $40,120.00
Server installation $7,200.00
Client PC set up $11,760.00
Unit test for all developments $9,600.00
User acceptance testing $6,160.00
PC configuration $5,400.00
Completion of execution phase $0.00
Closure phase $7,240.00
Training $5,040.00
Go live support $1,200.00
Project review $720.00
Completion of closure phase $280.00

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PROJECT COSTING SYSTEM
3. Stakeholder management plan
The key stakeholders of the project include:
 Project sponsor
 Project manager
 Contractor
 Sub-contractor
 Supervisor
 Server administrator
 Web analyst
Stakeholder Interest Influence Goal of the
stakeholder
Contribution Best way to
manage
Project
manager
1 1 To complete
the project
within time
and budget
Leading the
project as
well as taking
responsibility
Meeting,
maintaining
schedule
Sub-
contractor
1 1 Complete the
activities of
project
Have the
responsibility
of completing
project
activities
Maintaining
schedule
Supervisor 2 2 Supervises
the entire
project
Responsible
of
supervising
the project
Weekly
meetings

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PROJECT COSTING SYSTEM
activities
Server
administrator
2 2 Set up server
with the
system
Responsible
for setting
server
Testing
system set
up
4. Work breakdown structure
Figure 1: WBS
(Source: Created by Author)

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PROJECT COSTING SYSTEM
5. Communication Plan
Type Purpose of
communication
Audiences Medium Frequency Responsible
Progress
status
meeting
To discuss
about the
progress of the
project
Team leader Meeting,
Video
conference
And Audio
conferences
Weekly Project
manager
Monthly
meeting
To discuss
about the risks
of the project
Stakeholder
of the project
Meeting,
email,
conferencing
Monthly Risk analyst
Weekly
meeting
To discuss
about the
budget that is
spent on
completing the
activities of the
project
Financial
manager
Meeting,
video
conferencing
Weekly Project
manager
6. Risk analysis
Risk Cause Effect Risk level Risk mitigation
strategy
Improper
budget
1) Due to
ineffective
1) It causes
financial
Medium 1)The project
manager must

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PROJECT COSTING SYSTEM
estimation market analysis
2) The project
manager does
not have proper
idea about the
project
requirements
pressure on the
organization that
can further
obstruct the
project progress.
analyses the
market properly
before
estimating the
budget
2) Proper
analysis about
the project
requirement
must be made.
Improper
quality of
materials
1) Due to
scarcity of the
budget
2) The project
manager does
not want to
spend much on
the technical
requirement of
the project.
1) It creates
number of
technical
challenges
within the
project
2) The costing
system will not
work successful.
High High quality of
materials must
be used so that
the costing
system must
work properly
after
development
and does not
create any
technical
challenges.
Improper
management
1) The project
stakeholders are
not experienced
1) The project
manager will not
be able to
High The project
managers must
hire experienced

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PROJECT COSTING SYSTEM
2) Number of
challenges
occurs in the
project
complete the
project on time.
2)Project
resources gets
wasted due to
improper
management
stakeholders so
that they can be
able to manage
the project
successfully.
7. Procurement Plan
Type of
contrac
t
Procuremen
t risk
Procuremen
t risk
management
Procuremen
t constraints
Procurement
documentation
Performanc
e metrics
Firm
fixed
price
Conflict with
present
contract
Proper
analysis of
present
contract
before
preparing
new one
Resources Contract
guidelines
Acceptable
Firm
fixed
price
Unrealistic
schedule
The schedule
must be
prepared
properly by
Scope Statement of
work
Acceptable

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PROJECT COSTING SYSTEM
an
experienced
project
manager
Firm
fixed
price
Improper set
up of the
server with
the system
Proper
network
analyst must
bee hired for
setting the
server
Resources Manual server
set up guideline
Acceptable

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PROJECT COSTING SYSTEM
8. Gantt chart
Figure 2: Gantt chart
(Source: Created by Author)

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PROJECT COSTING SYSTEM
9. Critical path
Figure 3: Critical path
(Source: Created by Author)

12
PROJECT COSTING SYSTEM
10.Critical chain
Figure 4: Critical chain
(Source: Created by Author)

13
PROJECT COSTING SYSTEM
11.Cost baseline
Figure 5: Cost Baseline
(Source: Created by Author)