Project Management: BSC302C ERP System Development Project Report

This project management assignment analyzes the development of an ERP system, covering both team and individual work. Part A focuses on team collaboration, including identifying the critical path, determining latest and early start/finish times, creating a work breakdown structure, and allocating resources with associated costs. Task 2 involves cost estimation using the bottom-up approach. Part B is an individual effort, Task 3 applies three-point estimation techniques (optimistic, most likely, pessimistic) to calculate expected activity time, standard deviation, and variance for various project activities. It also calculates Z-scores for dates ahead and behind the most likely completion date. Task 4 reflects on the application of the three-point estimation (PERT) and its benefits. The assignment incorporates figures and tables to illustrate key project management concepts.

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

1
PROJECT MANAGEMENT
Table of Contents
Part A- Team Work.........................................................................................................................3
Task 1:.........................................................................................................................................3
1.1 Identification of the critical path........................................................................................3
1.2 Latest start and latest finish...................................................................................................4
1.3 Early start and early finish.................................................................................................5
1.4 Work breakdown structure................................................................................................6
1.5 Resource allocation (labour cost and materials)................................................................7
Task 2:.........................................................................................................................................8
Part B- Individual work.................................................................................................................12
Task 3:.......................................................................................................................................12
3.1 Optimistic time................................................................................................................12
3.2 Most likely time...............................................................................................................13
3.3 Pessimistic time...............................................................................................................14
3.4 Expected activity time.....................................................................................................16
3.5 Standard deviation...........................................................................................................19
3.6 Variance...........................................................................................................................22
3.7 For one date ahead of most likely completion date, calculate Z.....................................25
3.8 For one date behind the most likely completion date calculate Z...................................26
Task 4:.......................................................................................................................................26
Bibliography..................................................................................................................................29

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PROJECT MANAGEMENT
Part A- Team Work
Task 1:
1.1 Identification of the critical path
The critical activities that are present in the ERP system development project is mainly
showcased in the below figure.
Figure 1: Critical path
(Source: Created by Author)

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PROJECT MANAGEMENT
1.2 Latest start and latest finish
The latest start and latest finish for each of the project activities is reflected in the below
diagram.
Figure 2: Latest start and late Finish
(Source: Created by Author)

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PROJECT MANAGEMENT
1.3 Early start and early finish
The early start and early finish for each of the project activities is reflected in the below
diagram.
Figure 3: Early start and early finish
(Source: Created by Author)

5
PROJECT MANAGEMENT
1.4 Work breakdown structure
The WBS diagram reflects that the ERP system is developed by executing project
activities into four different phases.
Development of ERP
system
Initiation phase
Business case
development
Undertaking cost
benefit analysis
Estabilishing charter
Appointing project
team
Milestone 1:
Completion of
initiation phase
Planning phase
Development of
project plan
Resource plan
development
Risk management
plan
Development of
communication plan
Milestone 2:
Completion of
planning phase
Execution phase
Setting objectives
Evaluating the
options
Data migration
Checking
infrastructure
Customization
Change
management
Technology and
knowledge transfer
Project management
and testing
On-going support
Milestone 3:
Completion of
execution phase
Close out phase
Post project review
Stakeholder sign off
Documentation
Releasing resources
Milestone 4:
Completion of close
out phase
Figure 4: WBS
(Source: Created by Author)

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PROJECT MANAGEMENT
1.5 Resource allocation (labour cost and materials)
The figure below showcases the resources including both labour and materials which are
assigned in each of the project activities are reflected below:
Figure 5: Resource allocation
(Source: Created by Author)

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PROJECT MANAGEMENT
Task 2:
It is found that bottom up estimation method is mainly utilized for estimation of the
project cost out of other methods. Bottom up estimation generally involves estimation of the
work at the lowest possible level of each detail and these estimates are further aggregated for
arriving at summary totals. Furthermore, by creating detailed time and cost estimate for each of
the activities, the probability of meeting the estimated budget is possible.
WBS Task Name Duration Start Finish Resource Names Cost
0
Development of
ERP system
80 days
Wed 18-
03-20
Tue 07-07-
20
$ 82,160.00
1
Initiation
phase
12 days
Wed 18-
03-20
Thu 02-04-
20
$ 5,160.00
1.1
Business
case
development
3 days
Wed 18-
03-20
Fri 20-03-
20
Project manager $ 1,200.00
1.2
Undertaking
cost benefit
analysis
2 days
Mon 23-
03-20
Tue 24-03-
20
Financial manager $ 720.00
1.3
Establishing
charter
5 days
Mon 23-
03-20
Fri 27-03-
20
Project planner $ 1,800.00
1.4
Appointing
project team
4 days
Mon 30-
03-20
Thu 02-04-
20
Project planner $ 1,440.00
1.5 Milestone 1: 0 days Thu 02-04- Thu 02-04- $ 0.00

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PROJECT MANAGEMENT
Completion of
initiation phase
20 20
2
Planning
phase
15 days
Fri 03-04-
20
Thu 23-04-
20
$ 5,800.00
2.1
Development
of project plan
5 days
Fri 03-04-
20
Thu 09-04-
20
Project planner $ 1,800.00
2.2
Resource
plan
development
4 days
Fri 10-04-
20
Wed 15-04-
20
Project manager $ 1,600.00
2.3
Risk
management
plan
3 days
Thu 16-04-
20
Mon 20-
04-20
HR manager $ 1,200.00
2.4
Development
of
communication
plan
3 days
Tue 21-04-
20
Thu 23-04-
20
HR manager $ 1,200.00
2.5
Milestone 2:
Completion of
planning phase
0 days
Thu 23-04-
20
Thu 23-04-
20
$ 0.00
3
Execution
phase
46 days
Fri 24-04-
20
Fri 26-06-
20
$ 68,440.00
3.1 Setting 8 days Fri 24-04- Tue 05-05- IT manager $ 2,880.00

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PROJECT MANAGEMENT
objectives 20 20
3.2
Evaluating
the options
5 days
Wed 06-
05-20
Tue 12-05-
20
Operational manager $ 1,600.00
3.3
Data
migration
6 days
Wed 13-
05-20
Wed 20-05-
20
Database administrator,
Software [1]
$ 17,920.00
3.4
Checking
infrastructure
4 days
Thu 21-05-
20
Tue 26-05-
20
Application manager,
Hardware [1]
$ 19,440.00
3.5
Customization
5 days
Wed 27-
05-20
Tue 02-06-
20
IT manager $ 1,800.00
3.6
Change
management
6 days
Wed 03-
06-20
Wed 10-06-
20
HR manager, Additional
cost [1]
$ 17,400.00
3.7
Technology
and knowledge
transfer
5 days
Thu 11-06-
20
Wed 17-06-
20
Application manager, IT
manager
$ 3,600.00
3.8
Project
management and
testing
3 days
Thu 18-06-
20
Mon 22-
06-20
IT manager $ 1,080.00
3.9
On-going
support
4 days
Tue 23-06-
20
Fri 26-06-
20
Application manager,
Operational manager
$ 2,720.00
3.10
Milestone 3:
Completion of
execution phase
0 days
Fri 26-06-
20
Fri 26-06-
20
$ 0.00

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PROJECT MANAGEMENT
4
Close out
phase
7 days
Mon 29-
06-20
Tue 07-07-
20
$ 2,760.00
4.1
Post project
review
3 days
Mon 29-
06-20
Wed 01-07-
20
Project manager $ 1,200.00
4.2
Stakeholder
sign off
1 day
Thu 02-07-
20
Thu 02-07-
20
Project planner $ 360.00
4.3
Documentation
2 days
Fri 03-07-
20
Mon 06-
07-20
Project manager $ 800.00
4.4
Releasing
resources
1 day
Tue 07-07-
20
Tue 07-07-
20
HR manager $ 400.00
4.5
Milestone 4:
Completion of
close out phase
0 days
Tue 07-07-
20
Tue 07-07-
20
$ 0.00

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PROJECT MANAGEMENT
Part B- Individual work
Task 3:
3.1 Optimistic time
The optimistic time for each of the project activities is reflected in the table that is given
below:
Activities Optimistic (Days)
Business case development 2
Undertaking cost benefit analysis 1
Establishing charter 4
Appointing project team 3
Development of project plan 4
Resource plan development 3
Risk management plan 2
Development of communication plan 2
Setting objectives 7
Evaluating the options 4
Data migration 5
Checking infrastructure 3
Customization 4
Change management 5
Technology and knowledge transfer 4