Project Management

This document provides information on project selection, network design, crashing the project, risk planning, and minimizing project delay in the field of project management.

Running head: PROJECT MANAGEMENT
Project Management
Name of Student-
Name of University-
Author’s Note-

1PROJECT MANAGEMENT
Section A- Project Selection
1. Payback Period
Project Option Payback Period
Option A 10.9535 years
Option B 4.5283 years
Option C 4.9940 years
2. NPV Calculation
Project Option Net Present value
Option A $10,822,645.18
Option B $4,627,809.53
Option C $1,840,185.95
3. Preferred best Option
The best option for selecting the project is option B. Option B is considered as the best
project as the payback period for the project is 4.5283 years. The lower the payback period, the
best is the project. Moreover, the total net present value of project B is positive as positive value
for a project is greater than the anticipated cost. Positive NPV in a project is profitable and the
other two project have negative NPV value that will result in loss of the project.

2PROJECT MANAGEMENT
Section B- Network Design
1) Network Diagram
2) Forward pass, backward pass and Slack time
Forward pass- Early start + Duration
Backward pass- Late Finish - Duration
3) Critical path

3PROJECT MANAGEMENT
4) Critical Path Sensitivity
Sensitive analysis is the quantitative assumption as well as computations that are changes
systematically for access their effect. The evaluation of the risk or the identification of the
critical factors are involved in sensitive analysis.
Section C- Crashing the Project
1) Data Table and Activity Log
ID Activity Pred
eces
sor
Cost Type Dur
atio
n
Normal
Cost
Crash
Durati
on
Crash
Cost
A SW Decision General 2 600 2 600
B Stakeholder Input A Unskilled 10 2000 8 3600
C ID data Setup A Skilled 3 900 2 1400
D DB Setup A Unskilled 2 400 1 450
E Draft UI Design B Skilled 6 1800 5 2500
F Data Cleaning C Unskilled 10 2000 10 2000

4PROJECT MANAGEMENT
G Spec Workstation E General 1 200 1 200
H UI Testing E Skilled 15 4500 15 4500
I Data Validation F Skilled 12 3600 12 3600
J DB Test D, F Unskilled 5 1000 5 1000
K Order Workstation G Unskilled 20 1000 10 5000
L UI Signoff H General 1 300 1 300
M Load data I, J Unskilled 4 800 4 800
N Install Workstations K Unskilled 8 1600 8 1600
O Integrate UI, Database L, M Skilled 5 1500 5 1500
P Final Use Test N, O General 8 2400 8 2400
2) Cost of project
The new direct cost is $40,000 and the indirect cost of the project after crashing is $500.
The total cost of the project is $40,000.
3) Project duration
If the project duration was not reduced, then the project crashing would have been done
by outsourcing the skilled and the unskilled labour in the project.
4) Risks
The new risks that have been introduced after crashing the project is increasing the cost
of the project as per the schedule of the project. There might be risks at not following the rules
and regulation of the project and making the worker make work over time. There might also be a

5PROJECT MANAGEMENT
risk of decreasing the quality of the project. The project manager might miss out some objective
while completing the task in a hurry.
Section D: Risk Planning
1) Identified Risks
2) Risk Assessment
Three important risks that are associated with the project are: Quality Issue risks,
increasing time risk, and increasing the budget of the project.
4) Minimizing the project delay

6PROJECT MANAGEMENT
For minimizing the project delay, the project was to be divided in many sub tasks so that
the task would be divided in to different resources so the work gets completed on time.