Project Management Assessment II Workbook - Old Farm House Business Case

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Student Workbook for MNG91217
Project Management Assessment II
This workbook accounts for 40% of your final grade. The workbook has five topics, each topic is
worth 80 points, adding up to 400 points. Your total point tally will be divided by ten to determine
your grade. For a detailed scoring table per question, please see the ‘Assessment 2 - Rubric’ under
‘Assessment Tasks and Submission’ > ‘Assessment 2 – The Workbook’.

Contents
1 Topic 1: Project Management Introduction, Charter and kick-off.................................................4
1.1 Project Selection Prioritization Matrix...................................................................................4
1.2 Scope Overview (word limit: 150)..........................................................................................7
1.3 Milestone Schedule and Deliverables....................................................................................8
1.4 Initial Risk Identification.........................................................................................................8
1.5 Resources Required...............................................................................................................9
1.6 Initial Stakeholder Identification............................................................................................9
1.7 Team Operating Principles.....................................................................................................9
1.8 Lessons Learned.....................................................................................................................9
1.9 Commitment........................................................................................................................10
2 Topic 2: Communication plan, WBS, and RACI.............................................................................11
2.1 Stakeholder Prioritization Matrix.........................................................................................11
2.2 Project Communications Matrix..........................................................................................11
2.3 Work Breakdown Structure.................................................................................................12
2.4 The RACI chart.....................................................................................................................13
3 Topic 3: Time management and Cost Management....................................................................14
3.1 AoN......................................................................................................................................14
3.2 Time estimation...................................................................................................................14
3.2.1 Time estimation – Enumeration method.....................................................................15
3.2.2 Time estimation – Two Pass method...........................................................................15
3.3 Critical path..........................................................................................................................15
3.4 Resource Loading.................................................................................................................15
3.5 Gantt chart...........................................................................................................................16
3.6 Resources and cost to activity..............................................................................................16
4 Topic 4: Progress reporting scope change, and crashing.............................................................17
4.1 Crashing your project...........................................................................................................17
5 Topic 5: Risk management, and Quality management................................................................18
5.1 Risk identification I...............................................................................................................18
5.2 Risk identification II..............................................................................................................18
5.3 Risk identification III.............................................................................................................18
5.4 Quality tools.........................................................................................................................19

1 Topic 1: Project Management Introduction, Charter and kick-off
1.1 Project Selection Prioritization Matrix
Project/Selection Criteria
Potential
Monetary
Gain
Success
Probability
Social
Opinion
Weight: 5 10 3 Total
Construction Project:
International Hotel, Hawaii 10 5 5
50 50 15 115
Construction Project: Local
Hotel, Brisbane 8 6 4
40 60 12 112
Infrastructure Project: High
Speed Rail – Sydney to
Melbourne 9 45 3 30 8 24 99
Investment project: The Old
Farm House 7 35 7 70 10 30 135
Answer:
 Investment Project: The Old Farm house can be selected the most appropriate project to be
proceed with.

Old Farm House Business Case
You have inherited a century old farm house and acreage in a rural area. You have visited the site
and made an inspection. The house needs a great deal of repair work to get it marginally liveable.
You have itemized the most important things that need to be done and estimated the time required
as shown below.
You plan to use this house for vacations and as a rental property through Airbnb. In fact, your work
colleague as already expressed interest in staying over as soon as the property is finished. Your
parents have sponsored you with a personal loan of $10,000, - that will give you enough money to
buy the supplies and have a spending budget on help from a local contractor and two of his
apprentices. You yourself have committed to working 80 hours over your vacation to fix up the
house, but you are terrible at carpentry and painting. Your vacation of two weeks starts on Monday
the 1st of June, and you prefer to be present when the contractor is on site. Assume you, the
contractor and his apprentices1 all can work up to 8 hrs per day, 5 days per week.
You expect that within 2 years of renting the property you will have earned enough money to repay
your parents.
Each activity is to be performed by one person only.
Continually ask yourself the question “when this is done, what else can I start now, or which things
can I do at the same time?”.
Resources Cost Note
Supplies needed $5,000
You $0 Can do all jobs except
carpentry and painting
Contractor $125 per hour Expert in carpentry
Apprentice I $60 per hour Expert in painting
Apprentice II $40 per hour Can do all odd jobs (except
carpentry and painting)
Please note while working on this project, many assumptions are made that appear unrealistic, such
as for example the wages, or constraints around who can do what. The main reason behind these
decision has been to create an example that is easy for you to work on, while keeping it within small
boundaries.
The following List of Most Important Fixes and Project Customer Trade-Off Matrix are provided to
you as background to the project; they are part of the Business Case.
List of Most Important Fixes (not necessarily in order of schedule or priority):
1 Purchase supplies
2 Hang new curtains
3 Repair wooden shutters
1 For this case the contractor does not need to be present to have an apprentice working on site

4 Paint shutters
5 Hang shutters
6 Repair wooden porch
7 Paint porch
8 Repair wooden floor
9 Sand floor
10 Refinish (paint) floor
11 Paint ceilings
12 Paint doors
13 Paint interior walls
14 Paint exterior walls
15 Wash exterior windows
16 Wash interior windows
Project Customer Trade-off Matrix
Old Farm House Enhance Meet Sacrifice
Cost
Cannot go over
$10.000
Spend full budget
to save time
Schedule
Save time (you are allowed
to spend the full budget if it
enhances time finished)
Must finish in two
weeks (10
business days)
Quality Must meet
Scope Must meet
1.2 Scope Overview
The scope of the project is to repair the century old farm house and acreage and contribute
my jobs and deliveries to make sure that the hose is suitable enough for staying. The
estimated project timeline is 80 hours that is two weeks (10 business days) with five hours
daily work except the weekends. The entire project needs to be delivered within this
estimated timeline with a total investment of $10,000. This project will include various
reconstruction and painting sectors emphasizing on the improvement of the existing
architecture. This project will make sure that the reconstruction is delivered and managed
throughout the project lifecycle and the farm house is ready for staying for the family.