Project Management - Team Work | ERP System

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
Part A- Team Work.........................................................................................................................3
Task 1:.........................................................................................................................................3
1.1 Identification of the critical path........................................................................................3
1.2 Latest start and latest finish...................................................................................................4
1.3 Early start and early finish.................................................................................................5
1.4 Work breakdown structure................................................................................................6
1.5 Resource allocation (labour cost and materials)................................................................7
Task 2:.........................................................................................................................................8
Part B- Individual work.................................................................................................................12
Task 3:.......................................................................................................................................12
3.1 Optimistic time................................................................................................................12
3.2 Most likely time...............................................................................................................13
3.3 Pessimistic time...............................................................................................................14
3.4 Expected activity time.....................................................................................................16
3.5 Standard deviation...........................................................................................................19
3.6 Variance...........................................................................................................................22
3.7 For one date ahead of most likely completion date, calculate Z.....................................25
3.8 For one date behind the most likely completion date calculate Z...................................26
Task 4:.......................................................................................................................................26
Bibliography..................................................................................................................................29

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PROJECT MANAGEMENT
Part A- Team Work
Task 1:
1.1 Identification of the critical path
The critical activities that are present in the ERP system development project is mainly
showcased in the below figure.
Figure 1: Critical path
(Source: Created by Author)

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1.2 Latest start and latest finish
The latest start and latest finish for each of the project activities is reflected in the below
diagram.
Figure 2: Latest start and late Finish
(Source: Created by Author)

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1.3 Early start and early finish
The early start and early finish for each of the project activities is reflected in the below
diagram.
Figure 3: Early start and early finish
(Source: Created by Author)

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PROJECT MANAGEMENT
1.4 Work breakdown structure
The WBS diagram reflects that the ERP system is developed by executing project
activities into four different phases.
Development of ERP
system
Initiation phase
Business case
development
Undertaking cost
benefit analysis
Estabilishing charter
Appointing project
team
Milestone 1:
Completion of
initiation phase
Planning phase
Development of
project plan
Resource plan
development
Risk management
plan
Development of
communication plan
Milestone 2:
Completion of
planning phase
Execution phase
Setting objectives
Evaluating the
options
Data migration
Checking
infrastructure
Customization
Change
management
Technology and
knowledge transfer
Project management
and testing
On-going support
Milestone 3:
Completion of
execution phase
Close out phase
Post project review
Stakeholder sign off
Documentation
Releasing resources
Milestone 4:
Completion of close
out phase
Figure 4: WBS
(Source: Created by Author)

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PROJECT MANAGEMENT
1.5 Resource allocation (labour cost and materials)
The figure below showcases the resources including both labour and materials which are
assigned in each of the project activities are reflected below:
Figure 5: Resource allocation
(Source: Created by Author)

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PROJECT MANAGEMENT
Task 2:
It is found that bottom up estimation method is mainly utilized for estimation of the
project cost out of other methods. Bottom up estimation generally involves estimation of the
work at the lowest possible level of each detail and these estimates are further aggregated for
arriving at summary totals. Furthermore, by creating detailed time and cost estimate for each of
the activities, the probability of meeting the estimated budget is possible.
WBS Task Name Duration Start Finish Resource Names Cost
0
Development of
ERP system
80 days
Wed 18-
03-20
Tue 07-07-
20
$ 82,160.00
1
Initiation
phase
12 days
Wed 18-
03-20
Thu 02-04-
20
$ 5,160.00
1.1
Business
case
development
3 days
Wed 18-
03-20
Fri 20-03-
20
Project manager $ 1,200.00
1.2
Undertaking
cost benefit
analysis
2 days
Mon 23-
03-20
Tue 24-03-
20
Financial manager $ 720.00
1.3
Establishing
charter
5 days
Mon 23-
03-20
Fri 27-03-
20
Project planner $ 1,800.00
1.4
Appointing
project team
4 days
Mon 30-
03-20
Thu 02-04-
20
Project planner $ 1,440.00
1.5 Milestone 1: 0 days Thu 02-04- Thu 02-04- $ 0.00

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Completion of
initiation phase
20 20
2
Planning
phase
15 days
Fri 03-04-
20
Thu 23-04-
20
$ 5,800.00
2.1
Development
of project plan
5 days
Fri 03-04-
20
Thu 09-04-
20
Project planner $ 1,800.00
2.2
Resource
plan
development
4 days
Fri 10-04-
20
Wed 15-04-
20
Project manager $ 1,600.00
2.3
Risk
management
plan
3 days
Thu 16-04-
20
Mon 20-
04-20
HR manager $ 1,200.00
2.4
Development
of
communication
plan
3 days
Tue 21-04-
20
Thu 23-04-
20
HR manager $ 1,200.00
2.5
Milestone 2:
Completion of
planning phase
0 days
Thu 23-04-
20
Thu 23-04-
20
$ 0.00
3
Execution
phase
46 days
Fri 24-04-
20
Fri 26-06-
20
$ 68,440.00
3.1 Setting 8 days Fri 24-04- Tue 05-05- IT manager $ 2,880.00

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PROJECT MANAGEMENT
objectives 20 20
3.2
Evaluating
the options
5 days
Wed 06-
05-20
Tue 12-05-
20
Operational manager $ 1,600.00
3.3
Data
migration
6 days
Wed 13-
05-20
Wed 20-05-
20
Database administrator,
Software [1]
$ 17,920.00
3.4
Checking
infrastructure
4 days
Thu 21-05-
20
Tue 26-05-
20
Application manager,
Hardware [1]
$ 19,440.00
3.5
Customization
5 days
Wed 27-
05-20
Tue 02-06-
20
IT manager $ 1,800.00
3.6
Change
management
6 days
Wed 03-
06-20
Wed 10-06-
20
HR manager, Additional
cost [1]
$ 17,400.00
3.7
Technology
and knowledge
transfer
5 days
Thu 11-06-
20
Wed 17-06-
20
Application manager, IT
manager
$ 3,600.00
3.8
Project
management and
testing
3 days
Thu 18-06-
20
Mon 22-
06-20
IT manager $ 1,080.00
3.9
On-going
support
4 days
Tue 23-06-
20
Fri 26-06-
20
Application manager,
Operational manager
$ 2,720.00
3.10
Milestone 3:
Completion of
execution phase
0 days
Fri 26-06-
20
Fri 26-06-
20
$ 0.00

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PROJECT MANAGEMENT
4
Close out
phase
7 days
Mon 29-
06-20
Tue 07-07-
20
$ 2,760.00
4.1
Post project
review
3 days
Mon 29-
06-20
Wed 01-07-
20
Project manager $ 1,200.00
4.2
Stakeholder
sign off
1 day
Thu 02-07-
20
Thu 02-07-
20
Project planner $ 360.00
4.3
Documentation
2 days
Fri 03-07-
20
Mon 06-
07-20
Project manager $ 800.00
4.4
Releasing
resources
1 day
Tue 07-07-
20
Tue 07-07-
20
HR manager $ 400.00
4.5
Milestone 4:
Completion of
close out phase
0 days
Tue 07-07-
20
Tue 07-07-
20
$ 0.00

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PROJECT MANAGEMENT
Part B- Individual work
Task 3:
3.1 Optimistic time
The optimistic time for each of the project activities is reflected in the table that is given
below:
Activities Optimistic (Days)
Business case development 2
Undertaking cost benefit analysis 1
Establishing charter 4
Appointing project team 3
Development of project plan 4
Resource plan development 3
Risk management plan 2
Development of communication plan 2
Setting objectives 7
Evaluating the options 4
Data migration 5
Checking infrastructure 3
Customization 4
Change management 5
Technology and knowledge transfer 4

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PROJECT MANAGEMENT
Project management and testing 2
On-going support 3
Post project review 2
Stakeholder sign off 1
Documentation 1
Releasing resources 1
3.2 Most likely time
The most likely time for each of the project activities is reflected in the table that is given
below:
Activities Most likely (days)
Business case development 3
Undertaking cost benefit analysis 2
Establishing charter 5
Appointing project team 4
Development of project plan 5
Resource plan development 4
Risk management plan 3
Development of communication plan 3
Setting objectives 8
Evaluating the options 5
Data migration 6
Checking infrastructure 4

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PROJECT MANAGEMENT
Customization 5
Change management 6
Technology and knowledge transfer 5
Project management and testing 3
On-going support 4
Post project review 3
Stakeholder sign off 1
Documentation 2
Releasing resources 1
3.3 Pessimistic time
The Pessimistic time for each of the project activities is reflected in the table that is given
below:
Activities Pessimistic (Days)
Business case development 4
Undertaking cost benefit analysis 3
Establishing charter 6
Appointing project team 5
Development of project plan 6
Resource plan development 5
Risk management plan 4
Development of communication plan 4
Setting objectives 9

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Evaluating the options 6
Data migration 7
Checking infrastructure 5
Customization 6
Change management 7
Technology and knowledge transfer 6
Project management and testing 4
On-going support 5
Post project review 4
Stakeholder sign off 2
Documentation 3
Releasing resources 2

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3.4 Expected activity time
Activiti
es
Duratio
n (days)
Optimisti
c (Days)
Most
likely
(Days)
Pessi
misti
c
Expected
activity time
Busines
s case
develop
ment
3
2
3
4 3
Underta
king
cost
benefit
analysis
2
1
2
3 2
Establis
hing
charter
5
4
5
6 5
Appoint
ing
project
4 3 4 5 4

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team
Develop
ment of
project
plan
5
4
5
6 5
Resourc
e plan
develop
ment
4
3
4
5 4
Risk
manage
ment
plan
3
2
3
4 3
Develop
ment of
commu
nication
plan
3
2
3
4 3
Setting
8 7 8 9 8

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objectiv
es
Evaluati
ng the
options
5
4
5
6 5
Data
migratio
n
6
5
6
7 6
Checkin
g
infrastru
cture
4
3
4
5 4
Customi
zation
5
4
5
6 5
Change
manage
ment
6
5
6
7 6
Technol
5 4 5 6 5

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PROJECT MANAGEMENT
ogy and
knowled
ge
transfer
Project
manage
ment
and
testing
3
2
3
4 3
On-
going
support
4
3
4
5 4
Post
project
review
3
2
3
4 3
Stakeho
lder
sign off
1
1
1
2 1.3
Docume
ntation
2
1
2
3 2

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Releasin
g
resource
s
1
1
1
2 1.3
3.5 Standard deviation
Activities
Optimistic
(Days)
Most likely
(Days)
Pessimis
tic
Most expected
days
Standard
deviation
Business
case
developme
nt 2
3
4 3 0.3
Undertakin
g cost
benefit
analysis 1
2
3 2 0.3
Establishin
g charter 4
5
6 5 0.3
Appointing
3 4 5 4 0.3

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PROJECT MANAGEMENT
project
team
Developme
nt of
project plan 4
5
6 5 0.3
Resource
plan
developme
nt 3
4
5 4 0.3
Risk
managemen
t plan 2
3
4 3 0.3
Developme
nt of
communica
tion plan 2
3
4 3 0.3
Setting
objectives 7
8
9 8 0.3
Evaluating
the options 4
5
6 5 0.3

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PROJECT MANAGEMENT
Data
migration 5
6
7 6 0.3
Checking
infrastructu
re 3
4
5 4 0.3
Customizati
on 4
5
6 5 0.3
Change
managemen
t 5
6
7 6 0.3
Technology
and
knowledge
transfer 4
5
6 5 0.3
Project
managemen
t and
testing 2
3
4 3 0.3
On-going
support 3
4
5 4 0.3
Post 2 3 4 3 0.3

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project
review
Stakeholder
sign off 1
1
2 1.3 0.2
Documenta
tion 1
2
3 2 0.3
Releasing
resources 1
1
2 1.3 0.2
3.6 Variance
Activity
Optimistic
(Days)
Most
likely
(days)
Pessimistic
(Days)
Most
expected
time (days)
Varian
ce
Standar
d
deviatio
n
Business
case
development 2
3
4 3 0.1 0.3
Undertaking
cost benefit
analysis 1
2
3 2 0.1 0.3

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PROJECT MANAGEMENT
Establishing
charter 4
5
6 5 0.1 0.3
Appointing
project team 3
4
5 4 0.1 0.3
Development
of project
plan 4
5
6 5 0.1 0.3
Resource
plan
development 3
4
5 4 0.1 0.3
Risk
management
plan 2
3
4 3 0.1 0.3
Development
of
communicati
on plan 2
3
4 3 0.1 0.3
Setting
objectives 7
8
9 8 0.1 0.3
Evaluating
the options 4
5
6 5 0.1 0.3

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PROJECT MANAGEMENT
Data
migration 5
6
7 6 0.1 0.3
Checking
infrastructure 3
4
5 4 0.1 0.3
Customizatio
n 4
5
6 5 0.1 0.3
Change
management 5
6
7 6 0.1 0.3
Technology
and
knowledge
transfer 4
5
6 5 0.0 0.3
Project
management
and testing 2
3
4 3 0.1 0.3
On-going
support 3
4
5 4 0.0 0.3
Post project
review 2
3
4 3 0.0 0.3
Stakeholder
sign off 1
1
2 1.3 0.0 0.2
1 2 3 2 0.0 0.3

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Documentatio
n
Releasing
resources 1
1
2 1.3 0.0 0.2
3.7 For one date ahead of most likely completion date, calculate Z
Expected duration= 80 days (Total duration that is needed for executing critical activities)
Variance=1.7 (Summing the variance of critical activities)
Standard deviation= √1.7 = 1.3
Most likely completion date= 82
One day ahead of most likely completion date= 83
Z= Ts-Te /SD
= (83-80)/1.3
=2.3
=0.48 (from normal distribution table)
As Te>Ts
Probability= 98.95%
3.8 For one date behind the most likely completion date calculate Z
Expected duration= 80 days (Total duration that is needed for executing critical activities)
Variance=1.7 (Summing the variance of critical activities)
Standard deviation= √1.7 = 1.3

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Most likely completion date= 82
One day behind the most completion date=81 days
Z= Ts-Te /SD
= (81-80)/1.3
=0.76
=0. 45(from normal distribution table)
As Te>Ts
Probability= 77.91%
Task 4:
It is found that in the above task, three-point estimation technique is utilized for
calculating the duration of the project. In addition to this, expected standard deviation as well as
variance are also calculated by using optimistic, pessimistic as well as most likely time. If the
budget estimation in project is done with the help of three-point estimation technique that is
PERT then it is considered that the estimation of the project is done by the managers of the
project quite quickly as well as in a cheaper way [5]. With this particular procedure, the project
managers can be able to estimate the duration as well as cost about each of the activities. It helps
the project sponsors in giving the opportunity to decide the level of risk that they generally want
to accept. Then they can be able to properly quantify the additional cost that will further be
incurred for reducing the risks to lower level. This technique helps in minimizing the biases as
well as uncertainties while estimating different types of assumptions within the project. With the
help of three-point estimation, the project managers generally achieve a number of benefits

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PROJECT MANAGEMENT
including increased accuracy over one-point estimates. In addition to this, it helps in increasing
commitment with the team members of the project so that the project work gets completed as per
the estimation [11].
It is found that this particular type of estimation method, the cost of the project is
estimated accurately. With the help of this particular method of estimation, the project managers
know the maximum amount as well as minimum amount of budget that is mainly required for the
execution of project activities. Due to the presence of this information, the project manager can
be able to take proper action at proper time when the budget exceeds the most likely cost so that
the budget of the project can be controlled effectively [12]. Furthermore, the three-point
estimation utilizes uses an optimistic, pessimistic estimate for determining the ideal estimation
value for the project task that further guides the project manager for completing the work of the
project within the budget that is estimated. It not only helps in controlling the project cost but it
also helps in avoiding challenges that can occur due to a number of financial challenges which
can occur due to overrunning budget of the project.
With the help of three-point estimation technique, the project manger gets a guidance
and known the right amount in which they need to complete the project activity in order to avoid
budget overflow. This helps in controlling the amount of budget for each of the activity and as a
result the total cost of the project does not get increased [3]. It further avoids different types of
financial obstruction that the project manager may face if they do not know the proper value of
cost in which the project needs to be completed. The project managers with three-point
estimation can be bale to gain much more granular control over the end value of the project.

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PROJECT MANAGEMENT
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PROJECT MANAGEMENT
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