Project Management Solution: COIT12208 Assessment Item 2, Term 2 2017

This document presents a comprehensive solution to a project management assessment, likely for a university course. The solution addresses key aspects of project management, including critical path analysis, resource allocation, and cost estimation. It analyzes the impact of changes in task durations and resource assignments on the overall project timeline and budget. The document also explores project organizational structures, specifically comparing projectized and matrix organizations, and includes a risk assessment identifying potential challenges and their impact on the project. Furthermore, the assignment provides a snapshot of the project, including start and completion dates, total duration, and estimated direct labor costs, along with detailed explanations and references to support the analysis. The solution is structured in two parts, each addressing specific questions related to project management principles and practices, supported by MS Project files for detailed analysis.

Name of the university
COIT12208
Assessment Item 2 Term 2 2017
Student’s ID
Name of the Student
9/24/2017
Tutor:

Part A
Question 1
Solution:
Please refer file ‘PartAQ1.mpp’
Question 2
Solution:
a)
New duration of ‘1.1 Analysis of original system functionality’ = 10 days
Impact of change on overall duration: yes, there has been reduction in the overall
duration of the project by 20 days
The overall duration reduced from 314 days to 294 days. Since ‘1.1 Analysis of
original system functionality’ is in critical path, so decrease in duration of ‘1.1
Analysis of original system functionality’ has decreased the overall duration of
project by 20 days.
b)
There is no extra cost in adding the resource.
As the resources are added the duration of activity reduced, hence earlier was 1
AN x 30 days = 30 AN-Days. Now, 3 AN x 10 Days = 30 AN-Days. So the cost is
also same.
Question 3
Solution:
MS Project software has features to level the over allocated resources by opting
various options, either by extending the duration or by adding extra resources to
the task. But for this case we used the option ‘Level only within available slack’,

so that the over allocated resources don’t extend the overall duration of the
project to meet the committed date, else can use the available positive slacks in
the system to level the resource.
Question 4
Solution:
To,
The Owner of WorkFast P/L
Kind Attn.: Mr. Chris Parsons
Subject: Project snapshots
Respected Sir,
The snapshots of the project are:
a) Start date: 7th August 2017 Completion date: 17th July 2018
b) Total duration: 239 days (working days net, excluding listed holidays,
Saturdays & Sundays)
c) Main factors for 239 days are:
The longest path is 239 days
Resources assigned are constraining the activity from reducing below 239
days

So, if we can increase more resources the duration cab be reduced further,
but of course it may cost more to the schedule
d) The estimated direct labor costs of the project are:
Resource Name Cost
Operations $22,800.00
Analysts $80,000.00
Database $58,800.00
Software Engineers $130,200.00
Telecommunications $21,600.00
Installation Team $33,320.00
Total direct labor costs: $346,720.00
For detail you may please refer file ‘PartAQ3_resources.mpp’.
Thanking you,
Sincerely,
___________________
(Student’s Name)
Project Manager
Question 5

Solution:
Structure of the team:
Owner (Mr. Parson)
Project Manager
OP AN DB SE TC IT
The structure looks like a projectized, but it’s a Matrix Origination structure
because:
Project manager can’t take decision on own
Project Manager can only provide options, but the owner can only take
decision
Project Manager don’t have control over budget and cost of the project
All team members report to Project Manager like projectized
Hence, it’s a Matrix Organisation (Stuckenbruck, 1979).
Question 6

Solution:
Risk
No. Description Impact Likelihood of
occurrence
Degree of
impact
1 Risk of time overrun Can delay the
overall delivery of
the centrally
controlled system
Low High
2 Risk of cost overrun Can even delay
the product
delivery
Medium High
Part B
Question 1
Solution:
Please refer file ‘PartB.mpp’.
Question 2
Solution:
Impact on duration:
Change Impact on Project
duration
By how
much
Explanation
5.6.1: 3 person-
weeks to 6
person-weeks
5.6.2: 3 person-
weeks to 6
person-weeks
5.6.3: 2 person-
weeks to 4
No impact
No impact
No impact
0 days
0 days
0 days
The activities in ‘5.6.1’, ‘5.6.2’ &
‘5.6.3’ are not in critical path
(The Institute of Chartered
Accountants of India, 2017).
Has positive float.
Changed duration is less than
the slack available

person-weeks
Additional DB to
‘5.6.1’
‘5.6.2’
‘5.6.3’
No impact
No impact
No impact
0 days
0 days
0 days
Only the individual duration
reduced, but didn’t had any
impact on overall schedule
because the activities ‘5.6.1’,
‘5.6.2’ & ‘5.6.3’ are not in critical
path & the additional DB
reduced the duration by equal
proportion
‘3.4’: 1 person-
week to 2
person-weeks
No impact 0 days The activity in ‘3.4’ is not in
critical path. Has positive float.
Changed duration is less than
the slack available.
Lag reduction
between ‘6.2’ &
‘6.3’ from 6
person-weeks to
4 person-weeks
Shorter 10 days ‘6.2’ & ‘6.3’ are in critical path.
So the change in relationship
has changed the overall
duration
Question 3
Solution:

Impact on cost:
Change Impact on Direct
Labor Costs
By how
much
Explanation
5.6.1: 3 person-
weeks to 6
person-weeks
5.6.2: 3 person-
weeks to 6
person-weeks
5.6.3: 2 person-
weeks to 4
person-weeks
More
More
More
$12,600
$12,600
$8,400
The increase in duration
means the prolonged use of
resources. So the cost
increased with proportion to
the per hour rate of the
resources. More project
duration = more cost of the
project (Sahu & Sahu, 2014).
Additional DB to
‘5.6.1’
‘5.6.2’
‘5.6.3’
No impact
No impact
No impact
$0
$0
$0
There is no increase in
effective man-hour of the
resources. As, additional DB
reduce the overall duration of
‘5.6.1’, ‘5.6.2’ & ‘5.6.3’
‘3.4’: 1 person-
week to 2
person-weeks
More $3,600 As, more project duration =
more cost of the project.
Lag reduction
between ‘6.2’ &
‘6.3’ from 6
person-weeks to
4 person-weeks
No impact $0 The lag of a task is the
relationship between its
predecessor & successor, it
don’t need any resources. No
resource = no cost.
References:

Sahu, K. & Sahu, M., 2014. Cost & Time and Also Minimum Project Duration Using
Alternative Method. International Review of Applied Engineering Research, 4(5),
pp.403-12.
Stuckenbruck, L.C., 1979. The matrix organization. Project Management Quarterly,
10(3), pp.21-33.
The Institute of Chartered Accountants of India, 2017. Chapter 13 - Critical Path
Analysis. [Online] Available at:
http://www.icaiknowledgegateway.org/littledms/folder1/chapter-13-critical-path-analysis-
pm.pdf [Accessed 23 September 2017].