EPM 5610 Project Planning and Control: Risk, Schedule, Cost Report

This report presents a comprehensive project management plan for a merger, encompassing risk management, schedule development, and cost control. The risk management section identifies potential risks such as employee dissatisfaction, operational disruption, and data system incompatibility, along with corresponding mitigation strategies. The schedule management plan includes a work breakdown structure and a detailed Gantt chart, outlining the project's phases, durations, and milestones for both Sydney and Melbourne locations. The cost management plan provides a bottom-up and top-down cost estimation, including resource allocation and material costs, culminating in a total project budget. The report also discusses the chosen waterfall methodology, emphasizing client objectives, statutory obligations, and OH&S responsibilities to ensure successful project delivery. The report addresses various aspects of the project including risk mitigation, schedule optimization, and cost management strategies to ensure the successful execution of the merger project. The report also emphasizes the importance of adhering to regulatory requirements and ensuring employee safety and satisfaction throughout the project lifecycle.

Running Head: PROJECT PLANNING AND CONTROL
EPM 5610: Project Planning and Control
Name of the Student
Name of the University

1PROJECT PLANNING AND CONTROL
1. Risk Management Plan
1.1 Risk Identification
Based on the scope and overall requirements of the project, there are chances of
occurrence of certain risks that may affect the overall quality and outcome of the project. Hence,
it is important to identify these risks early and develop appropriate mitigation plan such that the
negative impacts of the risks are not realised in the project. Some of the risks associated with the
project are identified as follows.
Employee Satisfaction: Since this is a merger between two major companies, the existing
employees may not be satisfied with the new working environment and organisational policies.
Accommodation: There may not be sufficient accommodation at the office for all the
employees since the number of employees has increased significantly.
Project Governance: The project governance might be poor due to lack of interest among
the stakeholders in the merger.
Operational Disruption: Due to the merger, it is expected that severe operational
disruption might occur that will negative affect the internal and external operations of the merged
business organisation.
There are also some other risks associated with the project that are further analysed and
mitigation plan is developed in the following subsections.
1.2 Risk Register
Based on the risks identified, the risk register is developed as follows.

2PROJECT PLANNING AND CONTROL
Risk Name Probability Impact Responsibility
Employee Dissatisfaction Very High High Human Resource Manager
Accommodation High Medium Facilities Manager
Project Governance Medium High Operations Manager
Operational Disruption Very High High CEO
Incompatibility of Data
Systems
High Medium IT Manager
Unbalanced Workload Medium Medium Human Resource Manager
Lack of Operational Diligence Low Medium Operations Manager
Brand Management Very High High Marketing Manager
Organisational Culture Medium Medium Human Resource Manager
Business License Low High CEO
Transport and Installation of
Equipments from Two Offices
High Medium Facilities Manager
Delay in Service Initiation Very High Medium Operations Manager
1.3 Risk Management Plan
Based on the risks identified above, the risk mitigation plan is developed and discussed as
follows.
Employee Satisfaction Risk: Conduct a meeting with employees of both organisations and
note down their expectations and demands regarding the new policies and then formulate the
new environment and policies as suitable (Strategy: Manage).
Accommodation Risk: Rent an office space that will accommodate all the employees as
well as the management staff (Strategy: Allocate).

3PROJECT PLANNING AND CONTROL
Project Governance Risk: The newly appointed operations manager is responsible for
monitoring and ensuring the project is conducted (Strategy: Manage).
Operational Disruption Risk: Develop new operational plans that are not continuous from
the existing operations of the two different business, rather it will be a restart of operations and if
necessary, the employees will be provided with training for the new operations of the
organisation (Strategy: Mitigate).
Incompatibility of Data Systems: Upgrade the current hardware and software systems and
integrate the two organisational systems in one common platform (Strategy: Mitigate).
Unbalanced Workload: Revise the work orders and salary structures for all the employees
for balancing the workloads (Strategy: Manage).
Lack of Operational Diligence: Provide training and interactive sessions to the employees
of both companies to enhance their operational diligence in the merged operational setup
(Strategy: Manage).
Brand Management: Conduct detailed marketing and provide high quality products and
services for increasing the newly formed brand value (Strategy: Manage).
Organisational Culture: Promote interactions among the employees for better cultural
understanding and bonding (Strategy: Mitigate).
Business License: Apply for merger and business license from the authority before
proceeding with the merger process (Strategy: Allocate).

4PROJECT PLANNING AND CONTROL
Transport and Installation of Equipments from Two Offices: Hire logistics services for
the transfer of the equipments and hire workers for installation of the equipments (Strategy:
Manage).
Delay in Service Initiation: Prioritise the completing works that are essential for service
initiation and then perform the additional works (Strategy: Manage).
2. Program (Schedule Management Plan)
2.1 Project Work Breakdown Structure and Schedule
The estimated project schedule is shown in the following table for both Sydney Square
and Melbourne House branches.
WBS Task Name Duration Start Finish
0 Sydney Square 67 days Mon 26-08-19 Tue 26-11-19
1 Project Initiation 11 days Mon 26-08-19 Mon 09-09-19
1.1 Receive Confirmation for the Merger 1 day Mon 26-08-19 Mon 26-08-19
1.2 Conduct Discussions with Management 5 days Tue 27-08-19 Mon 02-09-19
1.3 Select Site and New Building for Office 5 days Tue 03-09-19 Mon 09-09-19
1.4 Milestone 1: Proceed to Project 0 days Mon 09-09-19 Mon 09-09-19
2 Project Planning 8 days Tue 10-09-19 Thu 19-09-19
2.1 Determine Project Scope 2 days Tue 10-09-19 Wed 11-09-19
2.2 Develop Schedule for Project 2 days Tue 10-09-19 Wed 11-09-19
2.3 Determine Budget Requirement for the Project 3 days Tue 10-09-19 Thu 12-09-19
2.4 Hire Workers and Team Members for Project 5 days Fri 13-09-19 Thu 19-09-19
2.5 Milestone 2: Project Planning Complete 0 days Thu 19-09-19 Thu 19-09-19
3 Project Execution 22 days Tue 10-09-19 Wed 09-10-19
3.1 Rent Office Space at Sydney Square 10 days Tue 10-09-19 Mon 23-09-19

5PROJECT PLANNING AND CONTROL
3.2 Installation of Basic Amenities 5 days Tue 24-09-19 Mon 30-09-19
3.3 Setting Up Facilities 4 days Tue 01-10-19 Fri 04-10-19
3.4 Installation of Air Conditioner and Ventilation Systems 6 days Tue 01-10-19 Tue 08-10-19
3.5 Set Up Electrical Connections for Power Supply 4 days Tue 01-10-19 Fri 04-10-19
3.6 Plumbing Works 4 days Tue 01-10-19 Fri 04-10-19
3.7 Install Work Stations and Server for the Employees 3 days Mon 07-10-19 Wed 09-10-19
3.8 Milestone 3: Office Ready to Move In 0 days Wed 09-10-19 Wed 09-10-19
4 Monitoring and Control 26 days Thu 10-10-19 Thu 14-11-19
4.1 Assign Sitting Arrangements for Employees 1 day Thu 10-10-19 Thu 10-10-19
4.2 Provide Interactive Sessions for Merged Environment 15 days Fri 11-10-19 Thu 31-10-19
4.3 Monitor the Performances of the Employees 10 days Fri 01-11-19 Thu 14-11-19
4.4 Milestone 4: Performance Evaluation Reporting 0 days Thu 14-11-19 Thu 14-11-19
5 Project Closing 8 days Fri 15-11-19 Tue 26-11-19
5.1 Review the Entire Project 5 days Fri 15-11-19 Thu 21-11-19
5.2 Make Pending Payments 2 days Fri 22-11-19 Mon 25-11-19
5.3 Stakeholder Sign Off 1 day Tue 26-11-19 Tue 26-11-19
5.4 Milestone 5: Project Closing 0 days Tue 26-11-19 Tue 26-11-19
WBS Task Name Duration Start Finish
0 Melbourne House 68 days Wed 28-08-19 Fri 29-11-19
1 Project Initiation 10 days Wed 28-08-19 Tue 10-09-19
1.1 Receive Confirmation for the Merger 1 day Wed 28-08-19 Wed 28-08-19
1.2 Conduct Discussions with Management 3 days Thu 29-08-19 Mon 02-09-19
1.3 Select Site and New Building for Office 6 days Tue 03-09-19 Tue 10-09-19
1.4 Milestone 1: Proceed to Project 0 days Tue 10-09-19 Tue 10-09-19
2 Project Planning 7 days Wed 11-09-19 Thu 19-09-19
2.1 Determine Project Scope 3 days Wed 11-09-19 Fri 13-09-19
2.2 Develop Schedule for Project 3 days Wed 11-09-19 Fri 13-09-19

6PROJECT PLANNING AND CONTROL
2.3 Determine Budget Requirement for the Project 2 days Wed 11-09-19 Thu 12-09-19
2.4 Hire Workers and Team Members for Project 4 days Mon 16-09-19 Thu 19-09-19
2.5 Milestone 2: Project Planning Complete 0 days Thu 19-09-19 Thu 19-09-19
3 Project Execution 21 days Wed 11-09-19 Wed 09-10-19
3.1 Rent Office Space at Sydney Square 10 days Wed 11-09-19 Tue 24-09-19
3.2 Installation of Basic Amenities 5 days Wed 25-09-19 Tue 01-10-19
3.3 Setting Up Facilities 4 days Wed 02-10-19 Mon 07-10-19
3.4 Installation of Air Conditioner and Ventilation Systems 3 days Wed 02-10-19 Fri 04-10-19
3.5 Set Up Electrical Connections for Power Supply 3 days Wed 02-10-19 Fri 04-10-19
3.6 Plumbing Works 5 days Wed 02-10-19 Tue 08-10-19
3.7 Install Work Stations and Server for the Employees 2 days Tue 08-10-19 Wed 09-10-19
3.8 Milestone 3: Office Ready to Move In 0 days Wed 09-10-19 Wed 09-10-19
4 Monitoring and Control 26 days Thu 10-10-19 Thu 14-11-19
4.1 Assign Sitting Arrangements for Employees 1 day Thu 10-10-19 Thu 10-10-19
4.2 Provide Interactive Sessions for Merged Environment 15 days Fri 11-10-19 Thu 31-10-19
4.3 Monitor the Performances of the Employees 10 days Fri 01-11-19 Thu 14-11-19
4.4 Milestone 4: Performance Evaluation Reporting 0 days Thu 14-11-19 Thu 14-11-19
5 Project Closing 11 days Fri 15-11-19 Fri 29-11-19
5.1 Review the Entire Project 6 days Fri 15-11-19 Fri 22-11-19
5.2 Make Pending Payments 3 days Mon 25-11-19 Wed 27-11-19
5.3 Stakeholder Sign Off 2 days Thu 28-11-19 Fri 29-11-19
5.4 Milestone 5: Project Closing 0 days Fri 29-11-19 Fri 29-11-19

7PROJECT PLANNING AND CONTROL
2.2 Gantt Chart

8PROJECT PLANNING AND CONTROL
Figure: Gantt Charts of the Two Projects with Project Milestones (Critical Path Marked in
Red)
(Source: Created by Author)

9PROJECT PLANNING AND CONTROL
2.3 Project Management Process
Based on the work breakdown structure and durations shown above, the project will be
conducted phase by phase. Accordingly, the stakeholders has been assigned with specific roles
that they must perform during the course of the project. It is to be ensured that the schedule and
budget limits should not be exceeded as it will cause financial losses for the company. The CEO
is responsible for supervising the entire project and ensuring it does not move out of scope and
requirements.
3. Cost Management Plan
3.1 Cost Planning
For the project, there are two types of costs involved – human resource costs (salary) and
material costs. The human resource costs can be determined using bottom up estimation
approach in which, the human resources are allocated to each activity in the work breakdown
structure in order to determine the costs of each activity (resource salaries). On the other hand,
the material resource costs are generally estimated using the top down estimation technique and
the two budgets are then added up to determine the final overall budget for the project. For this
project, the budget estimations are shown as follows.
3.2 Bottom Up Cost Estimation (Along with Resource Assignments)
Before assigning the resources in the WBS, the resource costs are first specified in the
following table for both Sydney and Melbourne.
Melbourne

10PROJECT PLANNING AND CONTROL
Sydney
Now, these resources are allocated in the WBS in order to determine the total costs for
initiating services at Blade Generate Financial as shown in the MS Project file.
Total Budget for Melbourne: $200,000 (Approx.)
Total Budget for Sydney: $200,000 (Approx.)
The cash flow is shown in the following screenshot.
Melbourne

11PROJECT PLANNING AND CONTROL
26 August 2019
02 September 2019
09 September 2019
16 September 2019
23 September 2019
30 September 2019
07 October 2019
14 October 2019
21 October 2019
28 October 2019
04 November 2019
11 November 2019
18 November 2019
25 November 2019
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Cumulative Cost
Cumulative Cost
Sydney
26 August 2019
02 September 2019
09 September 2019
16 September 2019
23 September 2019
30 September 2019
07 October 2019
14 October 2019
21 October 2019
28 October 2019
04 November 2019
11 November 2019
18 November 2019
25 November 2019
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Cumulative Cost
Cumulative Cost
Figure: Cash Flow in the Project
(Source: Created by Author)
Melbourne