Project Management: Planning, Budgeting, and Implementation

This article discusses the project management process for implementing an inventory system for an industrial equipment supply company. It covers the concept phase, project definition phase, planning phase, plan validation phase, performance phase, post-accomplishment phase, project inputs, and project outputs. The article also includes a high-level plan for tasks, milestones, budget, and resources.

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

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PROJECT MANAGEMENT
Table of Contents
1. Concept phase..............................................................................................................................2
a. Objective statement..................................................................................................................2
b. Identification of relevant constraints.......................................................................................2
2. Project definition phase...............................................................................................................2
a. Description of the project.........................................................................................................2
b. Question/ Answers...................................................................................................................3
i) How the work will be done..................................................................................................3
ii) How the work will be organized.........................................................................................3
iii) Who the key personnel are.................................................................................................4
iv)Tentative schedule...............................................................................................................4
v) Tentative budget..................................................................................................................8
3. Planning phase...........................................................................................................................11
a.) High level plan for tasks, milestones, budget and resource..................................................11
b) Details of staffing the project team.......................................................................................15
4. Plan Validation phase................................................................................................................15
a. Providing details about assumptions and what type of testing is needed..............................15
5. Performance phase.....................................................................................................................16
a. Providing top level overview of the implementation or delivery stage.................................16
6. Post-accomplishment phase.......................................................................................................17

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a. Give an overview about work accomplished.........................................................................17
7. Project inputs.............................................................................................................................17
a. Give an overview about some of the inputs that is needed specifically in the project..........17
8. Project outputs...........................................................................................................................18
a. Giving top level overview of the outputs of the project........................................................18
References......................................................................................................................................19

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1. Concept phase
a. Objective statement
The objectives of the project are as follows:
 To implement an inventory system for the industrial equipment supply company
 To increase the efficiency of the organization by 50% for supplying equipments
 To provide training to the employees so that they can easily operate the implemented
inventory system
b. Identification of relevant constraints
The relevant constraints of the project include:
Scope: The project must be executed as per the project scope so that the entire project
can be completed successfully within the estimated budget as well as time
Time: The estimated time for the project is 172 days therefore it is very much necessary
to complete the project within the time in order to achieve the goals as well as objectives of
project.
Budget: It is identified that the estimated budget for implementing the inventory system
for the industrial equipment supply company is around $184,200 and therefore the entire project
must be completed successfully within this budget.

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2. Project definition phase
a. Description of the project
The industrial equipment supply company engages in supplying equipments like fork lift,
carts as well as rollers to its customers. It is identified that the company sells equipments at a
very reasonable price however the customers of the company faces number of challenges due to
poor inventory control. The customers faces problems like delayed shipments, complicated
return process as well as incorrect delivery of items. Due to the problems, the company is losing
its customers and therefore the higher authority of the company wants to implement an inventory
system for the company. The inventory system not only resolve the issues that the customers of
the company are facing but also helps in saving time and money.
b. Question/ Answers
i) How the work will be done
The work will be done by implementing an inventory system within the industrial
equipment supply company. It is identified that due to the implementation of inventory control
the accuracy of the inventory orders can be improved. In addition to this, the system assists in
enhancing efficiency as well as productivity of the company.
ii) How the work will be organized
The entire work of the project will be organized by using certain steps that are elaborated
below:
 Setting expectations of resolving the issues of the customer
 Defining the scope of the project
 Creating overview for the implementation of inventory control

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 Reviewing progress against the plan of the project
 Setting proper time limits
 Meeting the objectives as well as goals of the project
 Developing an appropriate filling system
 Efficiently delegating tasks
 Anticipating issues as well as problems
iii) Who the key personnel are
The key personnel who are involved in the project are as follows:
 Project manager
 Project planner
 Supervisor
 Technician
 System analyst
 Database administrator
 Application programming manager
 Human resource manager
 System tester
 System developer
iv)Tentative schedule
The tentative schedule of the project is in the table below:
Task Name Duration Start Finish

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Implementation of inventory system for the
industrial equipment supply company
172 days
Mon 04-12-
17
Tue 31-07-18
Initiation phase 16 days
Mon 04-12-
17
Mon 25-12-17
Development of business case 3 days
Mon 04-12-
17
Wed 06-12-17
Undertaking feasibility study 4 days
Thu 07-12-
17
Tue 12-12-17
Establishing project charter 4 days
Wed 13-12-
17
Mon 18-12-17
Appointing project team members 5 days
Tue 19-12-
17
Mon 25-12-17
Milestone 1: Completion of initiation phase
of the project
0 days
Mon 25-12-
17
Mon 25-12-17
Planning phase 44 days
Tue 26-12-
17
Fri 23-02-18
Creating project plan 5 days
Tue 26-12-
17
Mon 01-01-18
Creating resource plan 6 days
Tue 02-01-
18
Tue 09-01-18
Creating quality plan 5 days
Wed 10-01-
18
Tue 16-01-18
Creating financial plan 4 days Wed 17-01- Mon 22-01-18

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18
Creating communication plan 6 days
Tue 23-01-
18
Tue 30-01-18
Creating procurement plan 5 days
Wed 31-01-
18
Tue 06-02-18
Creating risk plan 6 days
Wed 07-02-
18
Wed 14-02-18
Creating acceptance plan 7 days
Thu 15-02-
18
Fri 23-02-18
Milestone 2: Completion of planning phase 0 days Fri 23-02-18 Fri 23-02-18
Execution phase 106 days
Mon 26-02-
18
Mon 23-07-18
Developing the storage system for
facilitating counting
7 days
Mon 26-02-
18
Tue 06-03-18
Considering storage requirements 6 days
Wed 07-03-
18
Wed 14-03-18
Designing storage shelves for providing
clear line of sight
8 days
Thu 15-03-
18
Mon 26-03-18
Considering barcode system 6 days
Tue 27-03-
18
Tue 03-04-18
Formatting the inventory spreadsheet for
serving master record
7 days
Wed 04-04-
18
Thu 12-04-18
Reconciling physical inventory 8 days Fri 13-04-18 Tue 24-04-18

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Entering data into each category 5 days
Wed 25-04-
18
Tue 01-05-18
Adjusting data for inventory shrinkage 6 days
Wed 02-05-
18
Wed 09-05-18
Separating administrative as well as
inventory duties
7 days
Thu 10-05-
18
Fri 18-05-18
Taking inventory at different intervals 7 days
Mon 21-05-
18
Tue 29-05-18
Training inventory workers 6 days
Wed 30-05-
18
Wed 06-06-18
Performing inventory related counts 8 days
Thu 07-06-
18
Mon 18-06-18
Improving inventory management 7 days
Tue 19-06-
18
Wed 27-06-18
Analyzing inventory data 6 days
Thu 28-06-
18
Thu 05-07-18
Optimizing inventory levels 5 days Fri 06-07-18 Thu 12-07-18
Implementation of inventory
management software
7 days Fri 13-07-18 Mon 23-07-18
Milestone 3: Completion of execution
phase
0 days
Mon 23-07-
18
Mon 23-07-18
Closure phase 6 days Tue 24-07- Tue 31-07-18

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18
Stakeholder sign off 2 days
Tue 24-07-
18
Wed 25-07-18
Post project review 3 days
Thu 26-07-
18
Mon 30-07-18
Documentation 1 day
Tue 31-07-
18
Tue 31-07-18
Milestone 4: Completion of closure phase 0 days
Tue 31-07-
18
Tue 31-07-18
v) Tentative budget
The tentative budget of the project includes:
Task Name Cost
Implementation of inventory system for the industrial
equipment supply company
$184,200.00
Initiation phase $15,080.00
Development of business case $2,280.00
Undertaking feasibility study $4,160.00
Establishing project charter $3,040.00
Appointing project team members $5,600.00
Planning phase $33,840.00
Creating project plan $3,800.00
Creating resource plan $4,320.00

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Creating quality plan $4,800.00
Creating financial plan $3,040.00
Creating communication plan $6,480.00
Creating procurement plan $5,400.00
Creating risk plan $6,000.00
Creating acceptance plan $0.00
Execution phase $129,760.00
Developing the storage system for facilitating
counting
$8,680.00
Considering storage requirements $7,680.00
Designing storage shelves for providing clear line of
sight
$9,920.00
Considering barcode system $7,440.00
Formatting the inventory spreadsheet for serving
master record
$11,200.00
Reconciling physical inventory $7,360.00
Entering data into each category $4,400.00
Adjusting data for inventory shrinkage $7,680.00
Separating administrative as well as inventory duties $6,720.00
Taking inventory at different intervals $8,680.00
Training inventory workers $7,680.00
Performing inventory related counts $10,240.00

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Improving inventory management $8,400.00
Analyzing inventory data $7,200.00
Optimizing inventory levels $7,800.00
Implementation of inventory management software $8,680.00
Closure phase $5,520.00
Stakeholder sign off $1,520.00
Post project review $3,240.00
Documentation $760.00

PROJECT MANAGEMENT 12
3. Planning phase
a.) High level plan for tasks, milestones, budget and resource
Task Name Duration Start Finish Predecessor
s Resource Names Cost
Implementation of
inventory system for the
industrial equipment
supply company
172 days Mon 04-
12-17
Tue 31-
07-18 $184,200.00
Initiation phase 16 days Mon 04-
12-17
Mon 25-
12-17 $15,080.00
Development of
business case 3 days Mon 04-
12-17
Wed 06-
12-17
Project manager, Project
planner $2,280.00
Undertaking
feasibility study 4 days Thu 07-
12-17
Tue 12-
12-17 2 human resource manager,
Project planner, Supervisor $4,160.00
Establishing project
charter 4 days Wed 13-
12-17
Mon 18-
12-17 3 Project manager, Project
planner $3,040.00
Appointing project
team members 5 days Tue 19-
12-17
Mon 25-
12-17 4
human resource manager,
Project manager, Project
planner
$5,600.00
Milestone 1:
Completion of initiation
phase of the project
0 days Mon 25-
12-17
Mon 25-
12-17 5 $0.00
Planning phase 44 days Tue 26-
12-17
Fri 23-
02-18 $33,840.00
Creating project plan 5 days Tue 26-
12-17
Mon 01-
01-18 6 Project manager, Project
planner $3,800.00
Creating resource plan 6 days Tue 02- Tue 09- 8 human resource manager, $4,320.00

PROJECT MANAGEMENT 13
01-18 01-18 Project planner
Creating quality plan 5 days Wed 10-
01-18
Tue 16-
01-18 9 human resource manager,
System analyst, System tester $4,800.00
Creating financial plan 4 days Wed 17-
01-18
Mon 22-
01-18 10 human resource manager,
Project manager $3,040.00
Creating
communication plan 6 days Tue 23-
01-18
Tue 30-
01-18 11 human resource manager,
Project manager, Supervisor $6,480.00
Creating procurement
plan 5 days Wed 31-
01-18
Tue 06-
02-18 12 Project manager, Project
planner, System developer $5,400.00
Creating risk plan 6 days Wed 07-
02-18
Wed 14-
02-18 13 Project manager, System
analyst, System tester $6,000.00
Creating acceptance
plan 7 days Thu 15-
02-18
Fri 23-
02-18 14 $0.00
Milestone 2:
Completion of planning
phase
0 days Fri 23-
02-18
Fri 23-
02-18 15 $0.00
Execution phase 106 days Mon 26-
02-18
Mon 23-
07-18 $129,760.00
Developing the
storage system for
facilitating counting
7 days Mon 26-
02-18
Tue 06-
03-18 16
Application programming
manager, Database
administrator, Supervisor,
System developer
$8,680.00
Considering storage
requirements 6 days Wed 07-
03-18
Wed 14-
03-18 18
Application programming
manager, Database
administrator, System
developer, Technician
$7,680.00
Designing storage
shelves for providing clear
line of sight
8 days Thu 15-
03-18
Mon 26-
03-18 19
Database administrator,
Supervisor, System tester,
Technician
$9,920.00
Considering barcode 6 days Tue 27- Tue 03- 20 Database administrator, System $7,440.00

PROJECT MANAGEMENT 14
system 03-18 04-18 developer, System tester,
Technician
Formatting the
inventory spreadsheet for
serving master record
7 days Wed 04-
04-18
Thu 12-
04-18 21
Application programming
manager, Supervisor, System
analyst, System tester,
Technician
$11,200.00
Reconciling physical
inventory 8 days Fri 13-
04-18
Tue 24-
04-18 22 Database administrator,
Supervisor, System analyst $7,360.00
Entering data into
each category 5 days Wed 25-
04-18
Tue 01-
05-18 23 Database administrator, System
developer, System tester $4,400.00
Adjusting data for
inventory shrinkage 6 days Wed 02-
05-18
Wed 09-
05-18 24
Application programming
manager, Database
administrator, System analyst,
Technician
$7,680.00
Separating
administrative as well as
inventory duties
7 days Thu 10-
05-18
Fri 18-
05-18 25
Application programming
manager, Database
administrator, Technician
$6,720.00
Taking inventory at
different intervals 7 days Mon 21-
05-18
Tue 29-
05-18 26
Application programming
manager, Database
administrator, System tester,
Technician
$8,680.00
Training inventory
workers 6 days Wed 30-
05-18
Wed 06-
06-18 27 Project planner, Supervisor,
System developer, System tester $7,680.00
Performing inventory
related counts 8 days Thu 07-
06-18
Mon 18-
06-18 28
Application programming
manager, Database
administrator, System
developer, Technician
$10,240.00
Improving inventory
management
7 days Tue 19-
06-18
Wed 27-
06-18
29 Application programming
manager, Database
administrator, System analyst,
$8,400.00

PROJECT MANAGEMENT 15
System tester
Analyzing inventory
data 6 days Thu 28-
06-18
Thu 05-
07-18 30
Database administrator, System
analyst, System developer,
System tester
$7,200.00
Optimizing inventory
levels 5 days Fri 06-
07-18
Thu 12-
07-18 31
Database administrator, System
analyst, System developer,
System tester, Technician
$7,800.00
Implementation of
inventory management
software
7 days Fri 13-
07-18
Mon 23-
07-18 32
Application programming
manager, Database
administrator, Supervisor,
System analyst
$8,680.00
Milestone 3:
Completion of execution
phase
0 days Mon 23-
07-18
Mon 23-
07-18 33 $0.00
Closure phase 6 days Tue 24-
07-18
Tue 31-
07-18 $5,520.00
Stakeholder sign off 2 days Tue 24-
07-18
Wed 25-
07-18 34 Project manager, Project
planner $1,520.00
Post project review 3 days Thu 26-
07-18
Mon 30-
07-18 36 Project manager, Project
planner, System analyst $3,240.00
Documentation 1 day Tue 31-
07-18
Tue 31-
07-18 37 Project manager, Project
planner $760.00
Milestone 4:
Completion of closure
phase
0 days Tue 31-
07-18
Tue 31-
07-18 38 $0.00

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b) Details of staffing the project team
It is identified that developing a staffing plan in the project mainly involves in assembling,
selecting as well as assigning proper work to the team members of the project so that the
deliverables of the project must be met that is generally identified during the initiation stage of the
project. The staffing plan of the project also assists in providing non-labor resources that include
equipments, processes as well as tools that are needed by the team members of the project for
undertaking the assigned tasks. In order to initiate the staffing plan for the project, it is quite
important to complete the schedule as well as plan of the project on time. The steps that must be
undertaken for staffing the project team properly include:
Determining required skill: The main consideration of staffing plan for the project is to
determine some of the skills set that are needed for completing the deliverables of the project.
Skills inventory: One of the most important phase is to undertake various types of skills as
well as abilities of organization’s human resource.
Reconciliation: The next step that is undertaken for developing staffing plan for project
management mainly includes reconciling the required skills with the present skills.
4. Plan Validation phase
a. Providing details about assumptions and what type of testing is needed
The validation of the assumptions includes:
Budget: It is identified that the entire budget that is needed for completing the project is
around $ 184,200 which reflects that the project assumption is valid.
Time: The time that is needed for completing the project is around 172 days and the entire
project will be completed within the assumed time.

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Performance: The entire project will be completed within the assumed time and budget as
per the Gantt chart. Thus, it is analyzed that the assumption that is made that the project will be
successful is valid.
It is identified that inventory POS testing is required in order to analyze that the
implemented inventory system is successful in allowing the company to maintain proper control
over the sales as well as inventory.
The risks that the project faces are as follows:
Improper management: The project mangers of the organization are not experienced and
as a result they face difficulty in managing the project.
Theft: The confidential data as well as information about the sales can be misused due to
improper control over the inventory system.
Lost inventory: The Company does not implement tight control policies for the inventory
and as a result the chances of inventory loss are quite high.
5. Performance phase
a. Providing top level overview of the implementation or delivery stage
In the implementation stage of the inventory system, number of steps are undertaken in
order to execute the project of inventory system within industrial equipment Supply Company
properly. It is identified that firstly the storage system is developed so that proper records about
the number of items must be kept. In addition to this, the other steps that are used include
consideration of the barcode system, formatting inventory spreadsheet, reconciling physical
inventory, adjusting data, performing inventory, optimizing the levels of inventory and

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PROJECT MANAGEMENT
implementation of inventory management software so that the problem as well as issues related
with sales and deliver can be reduced.
6. Post-accomplishment phase
a. Give an overview about work accomplished
The work accomplishment of the project reflects the following:
 The company is satisfied with the implementation of the inventory system as the
implemented inventory system is quite advantageous in resolving the problems that the
customers of the industrial equipment Supply Company faces. In addition to this, the
implemented system helps in increasing productivity as well as efficiency of the
company.
 Putting the files of the project so that the project managers can review or utilize them in
the future if any problem associated with the inventory system occurs.
 Restoration of all the equipments as well as status for decommissioning it later
7. Project inputs
a. Give an overview about some of the inputs that is needed specifically in the project
The inputs that are specifically required in project are as follows:
Scope: The scope of the project is required an input in order to proceed with the project
progress.
Personnel resources: The personnel resources include project manager planner, system
developer, system analyst, application programmer, supervisor, database administrator as well as
technician.

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Financial resources: In order to complete the project successfully, the organization
requires budget of around $184,200.
Material resources: It is identified that in order to implement the inventory system
number of material resources are required and that include software as well as hardware
requirements.
8. Project outputs
a. Giving top level overview of the outputs of the project
Top level overviews of the project are as follows:
Deliverables: Deliverables are defined as one of the visible product that reflects that the
project “implementation of inventory system for industrial equipment Supply Company” is
successfully completed within the estimated time and budget that helps in achieving the goals and
objectives of the project.
Internal information: The internal information mainly compromises of increased
knowledge that is mainly generated by the project staff as a result of completing the project.
Experienced personnel: Due to the project, the personnel became experienced which is
quite useful as the experience can be utilized for conducting other similar types of projects.
Working relationships: After the project proper relationship between the workers of the
project is created that is quite helpful for the development of the project.

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PROJECT MANAGEMENT
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PROJECT MANAGEMENT
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