Project and Quality Management

Bendigo Tours and Travels Company wants to expand their business beyond the native country and for that purpose, they are willing to deploy a new information system on an extensive scale. This report serves the purpose of the project plan for this particular project for Bendigo.

Running Head: PROJECT AND QUALITY MANAGEMENT
Project and Quality Management
Name of the Student
Name of the University

1PROJECT AND QUALITY MANAGEMENT
Executive Summary
Bendigo Tours and Travels Company wants to expand their business beyond the native country
and for that purpose, they are willing to deploy a new information system on an extensive scale.
However, they require a suitable project plan that should include various aspects like schedule,
budget, risk assessment, stakeholder management and others. This report serves the purpose of
the project plan for this particular project for Bendigo.

2PROJECT AND QUALITY MANAGEMENT
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Project Scope Statement............................................................................................................4
3.0 Stakeholder Register and Stakeholder Management Strategy...................................................5
4.0 Team Contract...........................................................................................................................8
5.0 Financial Projection of the Project............................................................................................9
6.0 SDLC Model of the Project.....................................................................................................13
7.0 Work Breakdown Structure.....................................................................................................15
8.0 Gantt Chart...............................................................................................................................16
9.0 Network Diagram....................................................................................................................17
10.0 Schedule Trade Offs..............................................................................................................18
11.0 Communication Management Plan........................................................................................20
12.0 Risk Register..........................................................................................................................21
13.0 Weekly Status Report............................................................................................................23
14.0 Conclusion.............................................................................................................................24
References......................................................................................................................................25

3PROJECT AND QUALITY MANAGEMENT
1.0 Introduction
Bendigo Tours and Travels is a tourism company that wants to develop an information
system. The proposed information system will have several features that will facilitate the
operations of the organization as well as help the growth of the company. The company wants to
expand from Australia to worldwide and hence, development of the information system is
necessary. In addition to the expansion initiative, the company also wants to increase the overall
efficiency of business operations and a variety of features that are to be introduced after the
expansion is complete.
In this report, a project plan has been developed for the design and implementation of the
proposed information system.

4PROJECT AND QUALITY MANAGEMENT
2.0 Project Scope Statement
The primary scope of the project is the development of the information system for
Bendigo that will help the company to start operations globally. Further in-scope items of the
project include:
Implementation of a completely automated system
Implementation of online hotel and airline reservation system
Implementation of automated payroll system
Implementation of Computerized Reservation Order Entry (CROE) and Decision
Support System (DSS)

5PROJECT AND QUALITY MANAGEMENT
3.0 Stakeholder Register and Stakeholder Management Strategy
The stakeholder register is developed as follows.
Stakeholder Name Position Contact Details Role
Mr. A Project Manager [e-mail] Management, control
and monitoring of the
project
Mr. B Chief Developer [e-mail] Development of the
information system
Mr. C Chief Finance Manager [e-mail] Control and management
of funds available for the
project, finance reporting
Mr. D Procurement Officer [e-mail] Procurement of all
resources necessary for
the project
Mr. E IT Supervisor [e-mail] Supervision of project
and regular reporting
regarding progress of the
project
In addition to the stakeholder register, it is also important to develop suitable stakeholder
management strategy for the key stakeholders in order to ensure they perform their duties
successfully and as per the pre set guidelines (Harrison and Lock 2017). In this project, the two
key stakeholders involved are the project manager and the chief developer. The management
strategies for these two stakeholders are as follows.

6PROJECT AND QUALITY MANAGEMENT
Name Level of Interest Level of Influence Potential Management
Strategy
Mr. A (Project
Manager)
High High The project manager is
the head of the project
and has a number of
important duties like
planning, managing,
monitoring and
controlling of the
project (Laudon and
Laudon 2016). Hence, it
is required to ensure the
project manager is
fulfilling all his duties
throughout the course of
the project. At the end
of each week, the
project manager needs
to send a progress report
to the higher authority
regarding the progress
in the project.
Mr. B (Chief
Developer)
High Low The chief developer will
be in charge of the
development process of
the information system

7PROJECT AND QUALITY MANAGEMENT
(Fleming and
Koppelman 2016).
Since he will deploy a
number of developers
for the development of
each aspect of the
information system, he
will need to monitor the
progress of work done
by each of the
developers. Moreover,
the chief developer will
have to report to the IT
supervisor who will
update the progress
report of the project
accordingly at the end
of each day.

8PROJECT AND QUALITY MANAGEMENT
4.0 Team Contract
The team has agreed upon the following terms of contract for the project.
 As the final budget has been agreed, the team must stick to it and will only
receive additional funds in case of unforeseen incidents and accidents.
 Each feature of the information must be developed without fail. Any missing
feature or requirement will result in strict penalty against the developers.
 The team must follow all ethical guidelines and organizational rules while
working on the project.
Name Sign of Team Contract
Mr. A ______________________________________
Mr. B ______________________________________
Mr. C ______________________________________
Mr. D ______________________________________
Mr. E ______________________________________

9PROJECT AND QUALITY MANAGEMENT
5.0 Financial Projection of the Project
The total agreed budget for the project is $500,000 and the allowed discount rate is 9%.
Based on the budget and other financial estimations, the overall financial estimation is shown as
follows.
Cost Benefit Analysis for Bendigo Tours and Travels
Total Costs for New Hardware $ 260,000.00
Total Costs for New Software $ 45,000.00
Development Costs for the New Information System $ 275,000.00
Training Module for the Employees $ 100,000.00
Total Development Cost $ 680,000.00
Maintenance Cost of the Information System $ 55,000.00 (50% discount after 3
Yrs.)
Operational Costs $ 5,000.00
Other Costs $ 15,000.00
All Recurring Costs of the System $ 75,000.00 ($47,500 after 3 Yrs.)
Savings from Wages of the Employees $ 150,000.00
Reduced Various Costs $ 170,000.00
Total Benefit $ 320,000.00
Discount Rate Used 6.50%

10PROJECT AND QUALITY MANAGEMENT
Cost Benefit Analysis and
Financial Statement for
Bendigo Tours and Travels
Analysis Variables:
Discount Rate Used 6.50
%
Annual Benefits $
320,
000.
00
Annual Operational Costs $
75,0
00.0
0
$
47,5
00.0
0
One-Time Development Cost $
680,
000.
00
Year
of
Projec
t
0 1 2 3 4 5 TOT
ALS

11PROJECT AND QUALITY MANAGEMENT
Economic Benefit $0.0
0
$
320,00
0.00
$
320,00
0.00
$
320,00
0.00
$
320,00
0.00
$
320,0
00.00
Discount Rate 1.00
00
0.9390 0.8817 0.8278 0.7773 0.729
9
PV of Benefits $0.0
0
$300,4
69.48
$282,1
30.97
$264,9
11.71
$248,7
43.39
$233,
561.8
7
NPV of all BENEFITS $0.0
0
$
300,46
9.48
$
582,60
0.45
$
847,51
2.16
$
1,096,
255.55
$
1,329,
817.4
2
$
1,329,
817.4
2
One-Time COSTS $(68
0,00
0.00)
Recurring Costs $0.0
0
$
(75,00
0.00)
$
(75,00
0.00)
$
(75,00
0.00)
$
(47,50
0.00)
$
(47,50
0.00)
Discount Rate 1.00
00
0.9390 0.8817 0.8278 0.7773 0.729
9
PV of Recurring Costs $0.0 $ $ $ $ $

12PROJECT AND QUALITY MANAGEMENT
0 (70,42
2.54)
(66,12
4.45)
(62,08
8.68)
(36,92
2.85)
(34,66
9.34)
NPV of all COSTS $(68
0,00
0.00)
$
(750,4
22.54)
$
(816,5
46.98)
$
(878,6
35.66)
$
(915,5
58.51)
$
(950,2
27.85)
$
(950,
227.8
5)
Overall NPV $
379,5
89.57
Overall ROI
0.399
5
or
139%

13PROJECT AND QUALITY MANAGEMENT
6.0 SDLC Model of the Project
Based on the requirements of the information system, the most suitable SDLC model
should be Agile development model. Using this model, the development of the system will be
done in rapid and incremental cycles until the final outcome is reached.
The Agile model cycle consists of six main parts – Initiating, Planning, Executing,
Monitoring & Control and Closing. These parts are explained as follows.
Initiating – This is the initiation phase when the project is formally initiated after
agreeing on the project goals and other estimated parameters (Marchewka 2014). Initiation of the
project requires approval from project manager after the project proposal document is submitted.
Planning – In this phase, suitable plans for the project are made that include
development of project charter, scope, schedule and budget.
Executing – This is the longest and the most important phase in which, the entire project
is executed as per the plan developed.
Monitoring and Control – In this phase, the project progress is monitored and in case the
project outcomes are not satisfactory, suitable control measures are taken.
Closing – This is the final phase of the project in which project documentation is
prepared and submitted, project is reviewed and the stakeholders sign off from the project.
This cycle is mostly favorable for software and information system development and
hence, this is specifically chosen for this project. Moreover, the iterative procedure of Agile will
help to ensure all the features of the information system are working as per the requirements.

14PROJECT AND QUALITY MANAGEMENT
This project can also be executed using adaptive software development process with a
different cycle of process like speculate, collaborate and learn. This process also involves
development of prototype for the proposed system (Nicholas and Steyn 2017). However, agile is
more suitable for this project as it is much more detailed and suits the needs of the project
sequence.

15PROJECT AND QUALITY MANAGEMENT
7.0 Work Breakdown Structure
The work breakdown structure of the project is shown as follows.
Figure 1: Work Breakdown Structure of the Project
(Source: Created by Author)

16PROJECT AND QUALITY MANAGEMENT
8.0 Gantt Chart
The Gantt chart of the project is shown below in which, the path marked in red is the
critical path of the project.
Figure 2: Gantt Chart and Critical Path of the Project

17PROJECT AND QUALITY MANAGEMENT
(Source: Created by Author)
9.0 Network Diagram
The network diagram of the project that also shows the slack of some activities is as
follows.
Figure 3: Network Diagram of the Project
(Source: Created by Author)

18PROJECT AND QUALITY MANAGEMENT
10.0 Schedule Trade Offs
The schedule trade-offs and the slack for certain activities are shown in the following
diagram.

19PROJECT AND QUALITY MANAGEMENT
Figure 4: Schedule Trade Offs and Slack
(Source: Created by Author)

20PROJECT AND QUALITY MANAGEMENT

21PROJECT AND QUALITY MANAGEMENT
11.0 Communication Management Plan
Any project requires a suitable communication management plan that helps the
stakeholders to share information and ideas among themselves in order to ensure the project is
running according to plan. The communication management plan for the project is as follows.
Stakeholder Communication
Purpose
Communication
Frequency
Communication
Medium
Project Manager Any project progress
update, change requests,
consultation regarding
project activity
Weekly Face to face during team
meeting, emails
Chief Developer Project requirements Before start of project Face to face in project
meeting
Chief Finance Manager Fund requirements,
financial expenses
updates
Whenever required Finance reports through
emails
Procurement Officer Resource requirements
for the project
Before start of project Face to face in project
meeting
IT Supervisor Project updates Daily Daily progress report
document

22PROJECT AND QUALITY MANAGEMENT
12.0 Risk Register
There are certain risks associated with the project, which are shown in the following table
along with the mitigation strategies.
Risk Description Chance of Occurrence Effect on Project Mitigation Strategy
Due to the extensive
implementation of the
information system, the
central server is
vulnerable to the cyber
security attacks.
Very High Extreme During implementation
of the information
system, strong firewall
and anti-virus software
are to be installed in all
the workstations to
prevent the attacks.
Due to the scale of
implementation of the
project, the pre set
budget may not be
sufficient and the
organization faces the
risk of bankruptcy if
they are not able to keep
with the actual costs of
the project.
High Very High Create budget
breakdown structure
during planning, add
flexibility to budget
considering all extra
costs, possible
overshoots and others,
communicate with
project sponsor
regarding possible
additional costs.
Lack of technical
expertise of the
High Medium Initiate a training
module for helping the

23PROJECT AND QUALITY MANAGEMENT
employees may result in
poor handling of the
system.
employees learn the
management of the new
information system.
Since the company
wants to implement the
information system on a
global scale, the
complexity of the
proposed information
system may be high
resulting in poor
handling and
management of the
system.
Very High Medium Assess the proposed
system and ensure the
organization is ready to
use such a complex
system.
The organization may
fail to manage end user
expectations i.e. the
customer requirements.
Medium High Ensure the customer
requirements are
fulfilled while
determining the features
required for the system.

24PROJECT AND QUALITY MANAGEMENT
13.0 Weekly Status Report
The weekly status report is shown in the following table.
Timeline Activity Status
Week 1 Board Meeting Completed
Week 2 Project Proposal Submission Completed
Week 3 Second Board Meeting Completed
Week 4 Project Plan Pending
Week 5 Final Project Budget Pending
Week 6 Third Board Meeting Pending

25PROJECT AND QUALITY MANAGEMENT
14.0 Conclusion
This report is used to develop an appropriate project plan for the implementation of the
proposed information system for Bendigo Tours and Travels so that the company is able to
expand on a global scale instead of just the native country. The entire project process is
scheduled to be completed within 138 working days and is estimated to consume a budget of
$680,000.

26PROJECT AND QUALITY MANAGEMENT
References
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information system development and operations. In International Conference on Product-
Focused Software Process Improvement (pp. 277-280). Springer, Cham.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Larson, E.W., Gray, C.F., Danlin, U., Honig, B. and Bacarini, D., 2014. Project management:
The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Lavbič, D., Lajovic, I. and Krisper, M., 2018. Facilitating information system development with
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Marchewka, J.T., 2014. Information technology project management. John Wiley & Sons.
Meredith, J.R., Mantel, S.J., Shafer, S.M. and Sutton, M.M., 2014. Project management in
practice. Wiley.

27PROJECT AND QUALITY MANAGEMENT
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
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