SWL Roller Coaster Project: Management, Outsourcing, and Cost Analysis

This project management assignment analyzes the SWL Roller Coaster Safety Project, addressing key aspects such as cost estimation, outsourcing, and resource leveling. The solution evaluates the suitability of bottom-up and top-down estimation methods, recommending the former due to the organization's inexperience. It identifies advantages of outsourcing to Tron AG, including expertise and cost reduction, and suggests best practices for managing the relationship. The analysis further examines project timelines, resource conflicts, and the impact of resource leveling, concluding that extending the deadline may be necessary to maintain project quality. Finally, the assignment calculates the Cost Performance Index (CPI) for various project activities, highlighting areas where costs exceeded or met the budget, and proposes corrective actions for the project manager to prevent future issues.

PROJECT MANAGEMENT
ROLLER COASTER

Section:-A
Answer: 1
a. Priority matrix
Time Scope Cost
Constrain X
Enhance X
Accept X
 Time is needed to enhance because there are some resources which are not
allocated in a proper manner. As the time is lots for project because it is going to
launched on 30 Dec 2016. So, time can be enhanced by the project manager.
 Scope is constrain because if all requirements of the government is not fulfilled in
an appropriate manner than the government don’t give its approval to the project
manager.
 Cost is acceptable because if the cost is reasonable, project manager is ready to
pay it.
b.
Conditions for using the bottom-up estimate are following:-
 Any organization which is using bottom-up estimate for measuring the project cost can
be inexperienced. In this estimate, less experience is required.
 The bottom-up approach is mostly suitable only for developing detailed project budgets,
schedules, and monthly forecasts.
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 Using bottom-up approach by the management requires more time because it is
considered a time-consuming estimate.
 Bottom- up approach is based on the collective decision making and seeks to avoid the
pitfalls of change.
Conditions for using top-down estimate:-
 This estimate is only suitable for those organizations which are experienced.
 For accurate estimation of the cost, following top-down approach requires that the
management of the organization should have knowledge of project pricing.
 For the top-down estimate, smaller-scale installation is considered the best environment.
 Top-down requires that management of an organization should have market knowledge
and clear insight into the details of a project.
For condition related to the requirement of experience. For SWL, the bottom-up estimate is
preferred because the management of the organization is inexperienced. The bottom-up estimate
is the case for RCS project because implementing the bottom-up approach requires less
experience from management. Hence, SWL shall use bottom-up estimate under the requirement
of required experience.
For condition related to developing detailed project budgets, schedules, and monthly forecasts.
Bottom –up approach estimate is preferred because RCS Project management prepare detailed
project budgets for which appropriate schedule and monthly forecasts is required, all this can be
done by using Bottom- up approach. This is the case for RCS project because management is
inexperienced and it needs to conduct forecasts and develop schedules. Hence, SWL shall use
Bottom-up estimate under the requirement of detailed project budgets and schedules.
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For condition related to the requirement of more time. The bottom-up approach is preferred
because it gives an accurate estimate after spent more time. This is the case for RCS project
because it gives accurate estimates of the cost to management. Hence, SWL shall use bottom-up
estimate under the condition of the requirement of time.
For condition related to collective decision making and avoid pitfalls of change. Bottom- up
approach is preferred because management is able to develop best decisions because of
involvement of a large number of peoples. This is the case for RCS project because it requires a
good decision for estimating the project cost. Hence, SWL shall use bottom-up estimate under
the requirement of decision making.
For condition related to experience. Top up estimate is preferred, when the management of RCS
is highly experienced. Top- up estimate require high experience from the management. The top-
up approach is not the case of RCS project because the management has no any experience.
Hence, SWL shall not use top-up estimate for estimating the cost of the requirement of
experience.
For condition related to the requirement of knowledge related to project pricing. Top- up
estimate is preferred when the management is fully experienced and has overall knowledge of
project pricing. The top-up estimate is not the case of RCS project because the management is
inexperienced and have not any knowledge about the project pricing. Hence, SWL shall not use
top-up estimate under the requirement of project pricing knowledge.
For condition related to the best environment. Top- up estimate is preferred because it provides
the best environment through smaller-scale installation. The top-up estimate is not the case for
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RCS project because it needed no any smaller scale installation environment during its working.
Hence, SWL shall not use top- up estimate under the requirement of the environment.
For condition related to market knowledge. Top- up estimate is preferred when the organization
has higher knowledge of the market. The top-up estimate is not the case for RCS project because
the organization is inexperienced and does not have any market knowledge. Hence, SWL shall
not use top-up estimate under the requirement of market knowledge.
Conditions Top-down Estimates Bottom-up estimates
High Experience X
Suitable for detailed projects X
Time consumption X
Collective decision making X
Less experience X
Accuracy of cost estimation X
Smaller-scale installation X
Market knowledge X
Bottom-up approach is considered the best approach than the top-down approach. From the
above analysis we can say that bottom-up cost estimation approach will be more beneficial for
the organization. This approach is more suitable because it fulfill all the requirements of the
SWL.
Answer 2:-
a. Advantages of outsourcing the work to the Tron AG implementation team are following:-
 Expertise: - Most of the times the organization outsourced their tasks to vendors
who specialize in their field. Due to the appointment of Tron AG, RCS project
may utilize the expert services.( Schniederjans, 2015). This will enhance the
success chance of the RCS project. Quality of the project enables the SWL in
creating a good image in the eyes of the consumer.
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 Reduced cost: - Hiring the expert services reduced the wastage of resources, due
to which it helps SWL in cost saving. This leads the development of the project in
a structured budgeted amount.
b. The best practices for managing Tron AG are following:-
 Well defined requirements and procedures: - SWL defined all the requirements
and procedures to the consultancy Tron AG, this will improve their work quality
without raising any confusion.
 Extensive training and team-building activities:- training should be imparted to
the employees of both the parties (Gummerus,2016). This will help in removing
barriers for collaboration between the Tron AG and SWL.
 Build respect and trust: - SWL organization must be open, fair, and honest
throughout the project. By being open and trusting, both SWL and Tron AG foster
a good relationship. This reduced any unpleasant surprises, restrain from changes,
and disobey rules, which are common problems in outsourcing.
 Establish common objectives: - Establishing the common objective for both the
parties, helps in doubling the efforts for achieving the predetermined objective.
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Answer 3
a.
Project will be completed on 22 December 2016. Yes, there is a conflict, arises due to the fixed
deadline of the project. There are two activities which are related to prepare Worksite and
Expand electrical power capacity of the project seems over pressurized due to which it can be
possible that the project quality can be reduced.
b. Before following the leveling operation, some of the activities of the project was over
pressurized. This pressure was facing due to the deadline of the project activities. But,
after leveling, the operation pressure over the activities of the project seems reduced.
Due to pressure on some activities (5&6) of the organization, the project has to be
extended beyond December 22 if the project manager wants no conflict in the resource
allocation. If the extension is not allowed, then it is possible that the project management
within the constraint will be difficult to manage.
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c. After performing resource leveling beyond the deadline affects the finishing date of the
project. After following the leveling option beyond the deadline the project which will be
finished on 22 Dec will be finished on 28 Dec. leveling beyond the deadline helps the
management in maintaining the quality of the project without pressurizing any activity.
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Answer 4
a. (ii)
The project will be completed as per the deadline fixed by the project manager which is 22
December 2016.
(iii) Cost performance index is used to measure the efficiency of expenses spent on a project. It
measures the value of the completed work compared to the actual cost spent on the project. Cost
performance index specifies how much the organization is earning for each dollar spent on the
project (O'hara,2013). CPI can be calculated by dividing earned value by actual cost.
CPI = EV/AC
Task Name
Planned
Value - PV
(BCWS)
Earned
Value - EV
(BCWP)
CV CV
% CPI BAC EAC VAC
Roller
coaster
safety
project
$258,666.6
7
$265,000.0
0
($10,000.00
) -4% 0.9
6
$265,000.0
0
$275,000.0
0 ($10,000.00)
initial
meeting $0.00 $0.00 $0.00 0% 0 $0.00 $0.00 $0.00
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Construct
ion by Tron
AG
$20,000.00 $20,000.00 $2,000.00 10% 1.1
1 $20,000.00 $18,000.00 $2,000.00
Purchase
new motor $80,000.00 $80,000.00 ($4,000.00) -5% 0.9
5 $80,000.00 $84,000.00 ($4,000.00)
Purchase
new seats $30,000.00 $30,000.00 $0.00 0% 1 $30,000.00 $30,000.00 $0.00
Prepare
worksite $10,000.00 $10,000.00 ($4,000.00) -
40%
0.7
1 $10,000.00 $14,000.00 ($4,000.00)
Expand
electrical
power
capacity
$25,000.00 $25,000.00 $0.00 0% 1 $25,000.00 $25,000.00 $0.00
Reinforce
Sky Rock
structure
$50,000.00 $50,000.00 ($1,000.00) -2% 0.9
8 $50,000.00 $51,000.00 ($1,000.00)
Upgrade
motor $9,000.00 $9,000.00 ($1,000.00) -
11% 0.9 $9,000.00 $10,000.00 ($1,000.00)
Replace
Sky Rock
seats
$5,000.00 $5,000.00 $0.00 0% 1 $5,000.00 $5,000.00 $0.00
Test
system $10,000.00 $10,000.00 ($1,000.00) -
10%
0.9
1 $10,000.00 $11,000.00 ($1,000.00)
Landscapi
ng $12,000.00 $12,000.00 $0.00 0% 1 $12,000.00 $12,000.00 $0.00
Certificati
on by
Regulation
Board
$5,000.00 $5,000.00 $0.00 0% 1 $5,000.00 $5,000.00 $0.00
Update
safety
procedure
document
$1,333.33 $2,000.00 ($1,000.00) -
50%
0.6
7 $2,000.00 $3,000.00 ($1,000.00)
Press
release $1,333.33 $2,000.00 $0.00 0% 1 $2,000.00 $2,000.00 $0.00
Relaunch
Sky Rock
$0.00 $5,000.00 $0.00 0% 1 $5,000.00 $5,000.00 $0.00
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roller
coaster
1. CPI of the activity 1 is zero, it means that the activity crossed the budget amount.
2. CPI of the activity 2 is 1.1, it means that the activity is performed less than the budged cost.
3. CPI of the activity 3 is 0.95, it means that the activity crossed the budget amount.
4. CPI of the activity 4 is one, it means that the activity is performed at par the prescribed budget
level.
5. CPI of the activity 5 is 0.71, it means that the activity crossed the budget amount.
6. CPI of the activity 6 is one, it means that the activity is performed at par the prescribed budget
level.
7. CPI of the activity 7 is 0.98, it means that the activity crossed the budget amount.
8. CPI of the activity 8 is 0.9, it means that the activity crossed the budget amount.
9. CPI of the activity 9 is one, it means that the activity is performed at par the prescribed budget
level.
10. CPI of the activity 10 is 0.91, it means that the activity crossed the budget amount.
11. CPI of the activity 11 is one, it means that the activity is performed at par the prescribed budget
level.
12. CPI of the activity 12 is one, it means that the activity is performed at par the prescribed budget
level.
13. CPI of the activity 13 is 0.67, it means that the activity crossed the budget amount.
14. CPI of the activity 14 is one, it means that the activity is performed at par the prescribed budget
level.
15. CPI of the activity 15 is one, it means that the activity is performed at par the prescribed budget
level.
b.
The following actions should be followed by the project manager for preventing all the issues
raises in question 4(a):-
 Project analysis should be conducted in a significant manner. The project manager should
not perform partial analysis, but he should conduct an analysis of all the activities
involved in the project.
 The timeline should be suitable as per the length of the project. The project manager
should fix the timeline of the project in such a way that not any single activity faces
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burden from it. The main purpose of the project manager is to maintain quality. This
purpose can be achieve effectively by focusing on the deadline of the project.
 The requirement of the project should be fulfilled timely for preventing undue stoppage
of work. The project manager should continuously taking corrective steps for measuring
the inventory level of the organization. Through this the organization can meet all the
demands of the departments in timely manner which prevent undue stoppage of work.
This can manage the all work system in proper flow which gives a good outcome to the
project manager.
Section: - B
Answer: - 1
The Sky Rock Roller Coaster was implemented seven years ago by Wagon Pty, which is
completely defunct now. It is considered one of the main attraction point of the public. The main
objective of the SWL behind reinforcement of the Rock Roller Coaster was to rectify the
problems as per the safety requirement of the SRB’s. It is imperative for SWL to solve the
problem completely to ensure the public that is safe for enjoyment. This project is called the
Roller Coaster Safety project. The priorities of the Project were to start the project from 1
September and should finish before the deadline for the roller coaster which was prescribed by
SRB’s. This will help SWL to maintain its reputation in the eyes of the public. The organization
was successful in met their objectives. The project completed on before the deadline of the
project. This will enhance the little cost of the project but management able to maintain its image
in the market.
Answer: - 2
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