Project Management


 


 


Executive Summary


 


Project development is crucial to the development and progress of any organization. RM Software Co. are planning to enhance the flexibility of their employees by implementing an IS system. RM Software Co. is actually poised to become the leading provider of software products and services.  However, the company is experiencing problems regarding the flexibility of their employees. Thus, through the help of IS, the company business performance will increase since their employees can now adapt to the technological trend in the business world.  Using the essentials of Time and Cost management in project management practices, RM Software Co. will develop an IS that enhances “the Flexible Work Practices”.


 


 


Table of Contents


   Page


Executive Summary ……………………………………………………………………… I


 


Table of Contents ………………………………………………………………………..   1


 


Introduction ………………………………………………………………………………  2


 


Project Life Cycle …………………………………………………………………………            3


 


Concept and Initial Phase …………………………………………………………. 3


 


Design and Development Phase …………………………………………………… 3


 


Implementation or Construction Phase ……………………………………………  4


 


Commissioning and Handover Phase ……………………………………………… 4


           


Time Planning ……………………………………………………………………………. 5


 


Time Definition ……………………………………………………………………………            7


 


Network Analysis ………………………………………………………………………… 8


 


Cost Planning ………………………………………………………………………………10


 


Cost Definition ………………………………………………………………………….…            11


 


Cost Monitoring and Control …………………………………………………………… 12


 


Earned Value Analysis …………………………………………………………………… 13


 


Conclusion ………………………………………………………………………………… 14


 


Recommendation ………………………………………………………………………….            15


 


References …………………………………………………………………………………            16


Appendices…………………………………………………………………………………            18


 


 


Introduction


During the turn of the century, the world experiences more drastic changes than before, which include changes in the environment, culture, education, knowledge, the society, and technology. The world has evolved into a massive ball of information and technology that led to the expansion and the development of the society in several aspects. However, despite the improvement of the performance of many companies, these changes also contributed to the distress of some, which are not apt for these changes. From this, it can be understood that, existing and persisting in the business industry is not as easy as it seems. Because of these, many business organizations and companies are encountering a variety of problems and issues that determine their success or failure in the business arena and in the industry. These problems and issues arise from the external and internal changes that the company encounters.


With regards to this, certain project management procedures should be practiced in order to enhance the business practices and development of the company. Project management is simply the process of managing, allocating, and timing resources to achieve a given goal in an efficient and expedient manner (Badiru, 1993). Projects come in simple or complex. Moreover, the objectives that constitute the specified goal may be in terms of time, costs, or technical results. In this paper, the discussion of the construction of IS that enhances “the Flexible Work Practices” with respect to project management to RM Software Co. will be shown. RM Software Co. is a professional software consultant company which was established in 2000 and focuses on the systems development for General Insurance Application and business market mainly covered with Hong Kong, China, Taiwan, Australia and Europe. Change is a part of every organization. Sooner or later, organizations have to change and adapt to a competitive environment, it is a must for organizations to change in order to stay on top of the competition.  This paper will be discussing the issues concerning time and cost management as part of project management practices within RM Software Co.


           


 


Project Life Cycle


 


            Project life cycle, basically subdivides the project into a number of definable phases or stages.  In the case of RM Software Co., the development of IS that enhances “the Flexible Work Practices” with respect to project management were divided into four (4) phases/stages i.e. concept and initial phase, design and development phase, implementation or construction phase, and commissioning and handover phase (See Appendix 1).


 


Concept and Initial Phase


            The desire to enhance the “the Flexible Work Practices” within the company develops into a need.  In this phase, the options and alternatives are considered, and the feasibility of the best options are evaluated.


 


Design and Development Phase


            The preferred options is now designed and developed in detail, together with all the associated planning and schedules, procurement, resources and budgets.  The materials and network lines and other items may be bought in this phase.


 


 


Implementation or Construction Phase


            The contracts are let and the IS is built to the detailed plans developed in the previous phase.  Changes may be made to the original baseline plan as problems arise or better information is forthcoming.


 


Commissioning and Handover Phase


            The IS is inspected and approved.  The new system is now ready to be used by RM Software Co.  This phase confirms the project has been implemented or to built the design and terminates the project. Basically, from the given stages in project life-cycle of RM Software Co. which will be used for the implementation of IS, the operation of a “Flexible Working Practices” is recommended for the management in order to improve employee’s overall performance and services. The main purpose of “Flexible Working Practices” is to provide a more flexible system of attendance for staff, on a discretionary basis, with the guiding and overriding principle that this flexibility should be achieved without adverse effect on overall efficiency or on services.


            Projects are often implemented to provide a facility or to produce a product that will give a client a return on their investment (Arter, 2002). And in our case, the implementation of project in RM Software Co. is to enhance the “Flexible Working Practices” of their employees.  By looking at the bigger picture the designers are able to trade-off the cost of the construction with the cost of maintenance, upgrading, expansion and disposal over the life of the facility.  The extreme case would be a cheap construction which turned out to be expensive to maintain, difficult to upgrade and expand, and an environmental disaster to dispose to.


            One of the methods in addressing the problem is to make the company responsible for all aspects of the life-cycle, thus eliminating any short term construction gains. These are often called BOT contracts (Built, Operate and Transfer), or BOOT  (Built, Own, Operate and Transfer), or ROT contracts (Refurbish, Operate and Transfer) where a company is given a license to finance, build, operate and sell. Governments find these contracts attractive as they are seen to provide facilities without having an impact on their budget (Burke, 2003). 


 


Time Planning


            A time plan or a schedule must be prepared to enable the project manager to budget time and energy effectively.  It would be helpful to divide the project into phases and assign dates for the completion of each phase since this would systematize the conduct of the project and minimize the natural tendency to procrastinate.  The time schedule is another indication of how carefully and realistically the project has developed (Cicmil, S. 1997).  A useful way of indicating work flow, its relationship with other aspects, and the relative of various phases are flow charts and diagrams. 


It has been mentioned earlier that time is one of the constraints in implementing a project. Similarly, it is considered also as an important aspect in doing a project, for time management, timescales and time allocation are essential to evaluate for allocation of resources. Timescales and time allocation is allows the company to eliminate wastage and allocate resources appropriate to tasks importance (Blair 2009). With setting the appropriate timescale, the company can focus and prioritize the activities in accomplishing the project. Timescales also allows the persons involved in the project become prepared for meetings, monitor project progress, and plan each day and week efficiently (Blair 2009). This would enable the company assess the progression of their project and make certain improvements when necessary. Proper time allocation also allows the company to reject excessive workloads and ensure that long-term projects are not neglected (Blair 2009). With proper monitoring of projects, short-term goals can be easily completed and long-term goals can be given priority (see Appendix 2).


            In implementing the new IS development as defined in Appendix 2 Project Plan and Timescales for the RM Software Co., several problems will be encountered. However, despite the presence of these problems, they can be solved by effective communication. One of the problems to be encountered is dealing with the impetus for change, for all organizations are resistant to change. An organization will only undertake change when it can no longer meet the demands placed on it in the current mode of operation, and these demands come from customers, the problems the organization is attempting to solve, and by the threat of competition from other companies (Ward 2009). Through effective speaking and listening, both the employees and the management can focus on informing each other of their beliefs and perceptions regarding the new implemented system. With this, the employees can speak to the management of their fears and lack of knowledge regarding the system. Moreover, the management or the leader can ask the project manager to make some adjustments regarding the problem, such as providing training for the staff and making the software program more user-friendly.


 


 


Time Definition


 


By definition, time management is actually the ability to efficiently help give more worth to the time and energy spent with the goal to make life better and easier. As indicated in Appendix 2, the timescales of the project will be divided into two major parts (i.e. Project Kick-off and Implementation process). Basically, these defined stages are based on the network analysis presented in the next section. For the success of any business project on careful planning, the manager must plan, organize, and control a project that consists of a number of interrelated activities.  The best known network models are PERT which stands for Program Evaluation and Review Techniques and CPM which stands for Critical Path Method. 


            PERT is used to plan the program in advance and to estimate the expected completion time of the entire project (Cleland & Gareis1994).  It indicates the activities that might need modification regarding completion time.  In short, PERT allows the manager to compare actual progress of each activity and concentrate those activities that are behind schedule and may cause delay of the project. On the other hand, the CPM was developed to aid in the scheduling of some management works like routine plant overhaul, maintenance and construction work.  Since such work projects fall under repetitive operations of which the management has experience on data involving time and cost among others, and relatively small variance in their performance time, and CPM reasonably assumed that the completion time for each activity involved in a work project is known.  Moreover, the CPM incorporates no statistical analysis in its determination of time estimates.  Thus, in accordance to the convenience use of CPM, RM Software Co. consider the use of this method.


Network Analysis


 


Logically, to run effectively the business project, project managers are needed. In this project, RM Software Co employed employees for business development. Actually, management approaches helps the project team estimate and manage the cost of the project. Aside from those, there is a huge number more of techniques pertaining to effective project management. This is perhaps due to the difficult nature of managing an ongoing project. Models and techniques basically guide project managers along the way. In this paper, aside from enhancement of flexible working practices in RM Software Co, the promotional project is also handled. A budget of 0,000 is considered to enhance their promotional approach. 


From the given information, this will develop a project plan regarding promotional project that boosts and create awareness of the company, its products, and its retail outlets. In essence, the company is thinking of newspaper and outdoor advertising within that could possibly boost up their performance. Here are the lists of activities needed in the project:


A.    Staff Recruitment for outdoor advertising (budget: $20,000)


B.     Staff training for outdoor advertising (budget: $30,000)


C.     Arrangement with the newspaper company (budget: $50,000)


D.    Newspaper advertising Kick off (budget: 0,000)


E.     Outdoor advertising Initial operation (budget: $30,000)


F.      Outdoor and Newspaper advertising actual operation budget: ($110,000)


With respect to this, the critical path analysis are shown to effectively assess and initiate the project plan.  As shown previously, A, B, C, D E and F are the lists of activates that are essential in this project. Aside from this, the time involved and precedence involvement is listed in Appendix 3:


            As indicated in the presented table in Appendix 3, the next figure shows network presentation of the details:


Figure 1. Activity Network



            In effect, the coordinates (A, 7), identify that the arc in query stand for activity A, whose time completion is 7 days. As indicated in the figure, there are lines or arrow that connects a specified activity to another activity and this is called path.


As seen in this network analysis, determining the earliest event times, earliest finish times, latest event times and slack may add in finding the critical path for the lists of activities. For this, the critical path analysis is shown in Appendix 4.


As determined in Appendix 4, the firm may reduce the completion time of the entire project.  They may also delay or reduce the completion times for some of the component activities.  And that process is called crashing of activities (Kuruppuarachchi, Mandal, & Smith, 2002).  With this process, a certain activity can be crashed, if it is on the critical path. 


 


 


 


Cost Planning


 


Project cost management is the process of ensuring the project team has completed the whole project within the approval budget. It is the responsibility of the project manager to ensure the project is progressing well in term of cost estimating within the approval budget.  The project manager is also responsible to inform the top management and stakeholders on the progress report regarding the cost control on the project performance.


There are main activities involves in the cost management project that includes cost monitoring and cost control.  These activities need to be thoroughly and carefully followed up based on the project requirement. In RM Software Co. Project cost management includes cost monitoring and cost control which will be shown in preceding sections. Actually, finding ways to reduce costs sometimes may be crucial to firms and is a necessity most of the time. The learning phenomenon and the learning curve offer opportunities for cost reduction programs in general and in the pre-project planning areas in particular. In the pre-project planning stage, the type of learning curve to be used subsequently may be affected by the level and content of organisational planning. More precisely, the more preplanning that is done in all aspects associated with the launching of a new IS, the lower the cost of the initial unit. With the cost of the initial unit being the starting point of the learning phenomenon, the lower it is through effective pre-project planning, the greater the savings generated by the resulting learning curve (Holzer & Riahi-Belkaoui 1986).


RM Software Co. wants to make sure that they minimize cost with regards to IS implementation. RM Software Co. uses different strategies to reach this kind of desire that they believe can give companies benefits.  Different strategies are used that includes highly organized IS systems. RM Software Co. makes use of a highly organized system to minimize cost in their business procedures and also to enhance the “the Flexible Work Practices” of their employees. By engaging in an organized system RM Software Co. won’t have to worry about their business processes.


 


Cost Definition


 


A cost management system consists of a set of formal methods developed for planning and controlling an organization’s cost-generating activities relative to its short-term objectives and long-term strategies (Kinney, Prather-Kinsey & Raiborn 2006). The cost management information system, according to Hansen & Mowen (2005), is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. The cost control system is not bound by externally imposed criteria that define inputs and processes. Instead, the criteria that govern the inputs and processes are set by the people in the company. Rayburn (1993) stated that the cost control system has three broad categories that provide information for: (1) costing out services, products and other objects of interest to management; (2) planning and control; and (3) decision-making. Since cost control is part of this report, it should be stressed that cost control should help managers decide what should be done, why should it be done, how should it be done, and how well it is being done. For example, information about the expected revenues and costs for a new product could be used as an input for target costing. At this stage, the expected revenues and costs may cover the entire life of the new product. Thus, projected costs of design, development, testing, production, marketing, distribution, and servicing would be essential information.


With regards to this, Appendix 5 illustrates the detailed breakdowns of project procedures and its costs.


 


Cost Monitoring and Control


 


Cost monitoring involves allocating the overall cost estimate to the individual work items to establish a baseline for measuring performance to the budget project.  The main outputs of cost budgeting process are cost baseline, project funding requirements, requested changes and updates to the cost management plan. On the other hand, Cost Control involves in controlling changes to the project budget.  The main outputs of the cost control process are including the performance measurements, forecasted completion information, requested changes, recommended corrective action, update to the project management plan which include cost management plan, cost estimate, cost baseline and organization process assets.


Cost Control implies for RM Software Co. are as follows:



  • No overtime is allowed

  • Cost estimation must be within approval budget

  • No addition staff to be employed

  • Minimize cost changes if possible

  • Any cost changes should be recorded and written in a report to be revised and review for corrective action if possible by the project manager

  • Any request changes that is compulsory need to be written in a report then send to the high authority for an approval


All cost changes should be informed to all stakeholders concerned by the project manager (see Appendix 5).


 


Earned Value Analysis


 


When running a project, it is important to understand the values and issues that workers have in order to address them and keep everyone on board for the duration of the project. Workers are not always keen to participate but engaging them at this early stage of the project will help ensure success. With respect to the success of the projects, the approach to arrive at a price base for the purpose of tender assessment must be considered.  From the presentation, several factors can be determined, which need improvement. Primarily, the contracts to be used in the projects must be appropriate, which suits the style and preferences of its employees. The management style of the project managers must then be given enough attention to ensure the organization and control of the tenderers. Function also includes organizing, which determines what needs to be done, how will it be done and who will do it, leading to directing and motivating all parties and resolving conflicts, controlling, and making sure that the organization has achieved its stated purpose (De Bono, 2005). In short, the scope in the project management entails the refreshing and reinforcing of the tasks and responsibilities of the project manager. Due to the problems and the target project plan that have been distinguished by RM Software Co., it is decided to create a plan in relation to project measures.


            During the project, the activities are usually at various stages of completion; some on target, some ahead of plan, some behind plan, some on budget, some overspent and some under spent.  In this situation, it is extremely difficult to quantify the project’s overall status visually and it may be argued that a subjective assessment of the complex project is bound to be inaccurate. For this, Appendix 6 shows the Earned Value Progress Report of RM Software Co.


            The status report indicates that overall the earned value BCWP 4,173.00 is behind of the planned progress 5,148.00 and if this continues the project should finish late.  If the project manager required more information they would look at the variance at the activity level and in this case would have closer look at analysis and implementation stage, which are considered behind.  This technique can be further refined by sorting out the critical activities.


 


Conclusion


Based on previous the discussions, it is found out that planning is a key resource of the organization, together with people, finances and material assets. Apparently, the decision of creating business systems would create positive impact in the long-run.  However, the company still have to spend some large amount of money for the meantime for enhancement and transfer of information e.g. back-up and restoring devices. With this, instead of buying numbers of back-up and restoring devices or crashing of some activities, asking for time frame extension is the best decision that we could have. Thus, it is accepted to state that project plan is a business issue. The previous discussion revealed that through effective project planning management of the organization’s resources and systems, organization administrators can add value to the services delivered to customers by enhancing the flexibility of their employees, reduce risks in the organization’s business, reduce the costs of business development and service delivery and encourage improvement in internal business processes and external service implementation. On the other hand, it is recommended that when constructing systems, it is better to build a report that is ideal for a specific need then to make a report based on a predefined concession. Actually, the use of the quantities in decision-making model helps us to minimize mistakes.  Aside from the steps above, it is also recognized to list all the alternatives, identify future events that may occur, and construct a pay-off table in making effective decisions.


            In relation to this, effective management and well-planned project implementation must be practiced to encourage teamwork and business progress. This can be done through effective communication, with good interpersonal, speaking, writing and listening skills. Aside from these, the organization can also seek professional help from IS professionals for additional guidance.


 


Recommendation


 


The modifications in management and innovations underwent by RM Software Co. allowed them to agree to serious development in development and strategy. From their need to handle with the business advancements, RM Software Co. is making plans of implementing systems for the work flexibility of their employees that will enhance services and increase the savings of the company. Basically, the opportunities before RM Software Co. are significant. To be able to cope with competition against other companies, RM Software Co. must therefore plan their actions properly and implement their plan immediately. However, given their intention for change, the company must not also forget the existence of technical and non-technical problems that they can encounter, such as choosing the software program itself, its compatibility with the organization’s system, budget, time and people. This is why, the adequate allocation of resources, including time and money must be planned accordingly to achieve success.


Aside from giving importance to the value of project management, RM Software Co. should also specify their objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. In this process, an overall direction to the whole enterprise will be achieved. All in all it is very important that an organization should make a way in adjusting their management and styles to complement the differences and similarities of the project leaders, members and the organization as a whole that may catalyst the motivation among the members. Hence, the role of project management is crucial in making the organization achieved its goal of having a project team that contributes to the competitive advantage of the organization.


 


References:


Arter, D, (2002). Quality Audits for Improved Performance. ASQ Quality Press; 3rd edition.


 


Badiru, A.B. (1993).Quantitative Models for Project Planning, Scheduling and Control. Quorum Books, Westport, CT. 


 


Blair, GM (2009). Personal Time Management for Busy Managers, viewed 10 June, 2009, <http://www.see.ed.ac.uk/~gerard/Management/art2.html>.


 


Burke, R. (2003). Project Management: Planning and Control Techniques. (4th ed.). West Sussex, England: John Wiley & Sons.


 


Cicmil, S. (1997). “Achieving completeness through TQM principles and organisational learning”, The Learning Organization, MCB University Press, Vol. 4 No. 1.


 


Cleland, D.I. and Gareis, R. (Eds) (1994). Global Project Management Handbook, McGraw-Hill International Editions.


 


De Bono, S (2005). Assessing Managerial Attributes Case Study of Maltese Managers in the Service Industry, DBA Executive Summary.


 


Hansen, D & Mowen, M (2005). Cost Management: Accounting and Control, Thomas South-Western, Ohio.


 


Holzer, HP & Riahi-Belkaoui, A (1986). The learning curve: a management accounting tool, Quorum Books, Westport, CT.


 


Kinney, M, Prather-Kinsey, J & Raiborn, C (2006). Cost Accounting: Foundations and Evolutions, 6th edn, Thomson South-Western, Ohio.


 


Kuruppuarachchi, P.R., Mandal, P., and Smith, R. (2002). IT project implementation strategies for effective changes: a critical review. Logistics Information Management, Vol. 15, No.2; pp. 126-137


Rayburn, L (1993). Cost Accounting: Using a Cost management Approach, Irwin Publishing, Canada.


Ward, JA (2009) Implementing Quality Initiatives in Information Systems, viewed 10 June, 2009, <http://www.jamesaward.com/implementing%20quality%20initiatives.htm>.


 


 


 


 


APPENDICES


 


Appendix 1.  Project Life-Cycle



 


 


 


Appendix  2. Project Plan and Timescales


Classical Project Schedule (10 weeks)


time frame (weeks)


payment


involved staff


1st


2nd


3rd


4th


5th


6th


7th


8th


9th


10th


 


PM*


SA*


AP*


Project Kick-off


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Signing the Agreement


 


 


 


 


 


 


 


 


 


 


30%


Y


 


 


Preparation of Project Plan


 


 


 


 


 


 


 


 


 


 


 


Y


Y


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Implementation Process


 


 


 


 


 


 


 


 


 


 


 


 


 


 


User Requirement Capture / Gap Analysis


 


 


 


 


 


 


 


 


 


 


20%


Y


Y


 


Programs Development


 


 


 


 


 


 


 


 


 


 


 


Y


Y


Y


Training IT / User


 


 


 


 


 


 


 


 


 


 


 


Y


Y


Y


User Acceptance Test


 


 


 


 


 


 


 


 


 


 


 


Y


Y


Y


Parallel Run


 


 


 


 


 


 


 


 


 


 


30%


Y


Y


Y


Live Run 


 


 


 


 


 


 


 


 


 


 


20%


Y


Y


Y


* PM: Project Manager, SA: System Analyst, AP: Analyst Programmer


 


 


 


Appendix 3. Precedence Relation


Activity


Activity Time


Preceding Activity



  • Staff Recruitment for outdoor advertising



  • 7 days


    None



  • Staff training for outdoor advertising



  • 8 days


    A


    C.Arrangement with the newspaper company


    1 day


    None


    D.      Newspaper advertising dry run


    7 days


    C


    E.    Outdoor advertising Initial operation


    7 days


    B


    F.    Outdoor and Newspaper advertising actual operation


    30 days


    C, B


     


     


    Appendix 4. Critical Path Analysis


    Events


    Activity (Tasks)


    Duration (Days)


    Earliest Start


    Earliest Finish


    Latest Start


    Latest Finish


    Slack


    Critical Path


     



     



     


    1,2


    A


    7


    0


    7


    0


    7


    0




    2,4


    B


    8


    7


    15


    7


    15


    0




    1,3


    C


    1


    0


    1


    0


    1


    0




    3,5


    D


    1


    1


    2


    21


    22


    20


     



    4,5


    E


    7


    15


    22


    15


    22


    0




    5,6


    F


    30


    22


    52


    22


    52


    0




     


     


    Appendix 5.WBS Items and Costs


     


    WBS Items


    #Units/Hrs.


     Cost/Unit/Hr


     Subtotals


    WBS Level 1 Totals


    % of Total


    1. Initiating


     


     


     


    $       2,040.00


    0.669%


    1.1 Select Project Team


    0


      $                    -  


     $                   -  


     


     


    1.2 Form Project Team


    0


      $                    -  


     $                   -  


     


     


    1.3 Create A Project Proposal


    12


     $            100.00


     $        1,200.00


     


     


    1.4 Develop Project Charter


    24


     $              35.00


     $           840.00


     


     


    2. Planning


     


     


     


    $     23,200.00


    7.603%


    2.1 Hold Project Meeting


    88


     $            100.00


     $        8,800.00


     


     


    2.2 Create Team contract


    12


     $            100.00


     $        1,200.00


     


     


    2.3 Create Scope Statement


    12


     $            100.00


     $        1,200.00


     


     


    2.4 Create Project Plan


    36


     $            100.00


     $        3,600.00


     


     


    2.5 Create Communication Plan


    12


     $            100.00


     $        1,200.00


     


     


    2.6 Create Quality Assurance Plan


    12


     $            100.00


     $        1,200.00


     


     


    2.7 Create Transition Plan


    36


     $            100.00


     $        3,600.00


     


     


    2.8 Create Work Breakdown Structure


    12


     $            100.00


     $        1,200.00


     


     


    2.9 Prepare Schedule And Cost Baseline


    12


     $            100.00


     $        1,200.00


     


     


    3. Analysis


     


     


     


    $     31,530.00


    10.333%


    3.1 Conduct User Interviews


    120


     $              75.00


     $        9,000.00


     


     


    3.2 Determine User Requirements


    144


     $              90.00


     $      12,960.00


     


     


    3.3 Analysis Software Modules


     


     


     


     


     


    3.3.1 Membership Module


    40


     $              90.00


     $        3,600.00


     


     


    3.3.2 Financial Module


    32


     $              75.00


     $        2,400.00


     


     


    3.3.3 Report Module


    34


     $              75.00


     $        2,550.00


     


     


    3.3.4 Mail Merge Module


    4


     $              90.00


     $           360.00


     


     


    3.3.5 Administration Module


    4


     $              90.00


     $           360.00


     


     


    3.3.6 Authorisation Module


    4


     $              75.00


     $           300.00


     


     


    4. Design


     


     


     


    $     53,640.00


    17.578%


    4.1 Design Software Modules


     


     


     


     


     


    4.1.1 Membership Module


    16


     $              75.00


     $        1,200.00


     


     


    4.1.2 Financial Module


    8


     $              75.00


     $           600.00


     


     


    4.1.3 Report Module


    12


     $              75.00


     $           900.00


     


     


    4.1.4 Mail Merge Module


    4


     $              75.00


     $           300.00


     


     


    4.1.5 Administration Module


    4


     $              75.00


     $           300.00


     


     


    4.1.6 Authorisation Module


    4


     $              75.00


     $           300.00


     


     


    4.2 Create Prototype


    156


     $              90.00


     $      14,040.00


     


     


    4.3 Prototype Testing


    720


     $              50.00


     $      36,000.00


     


     


    5. Testing


     


     


     


    $     69,720.00


    22.848%


    5.1 Create Testing Plan


    296


     $              90.00


     $      26,640.00


     


     


    5.2 Testing Function Points


    296


     $              50.00


     $      14,800.00


     


     


    5.3 Debugs Function Points


    592


     $              40.00


     $      23,680.00


     


     


    5.4 Testing Entire System


    40


     $              75.00


     $        3,000.00


     


     


    5.5 Fix the Bugs for the Entire System


    40


     $              40.00


     $        1,600.00


     


     


    6. Implementation


     


     


     


    $     65,760.00


    21.550%


    6.1 Server/ Hardware Installed


    72


     $              40.00


     $        2,880.00


     


     


    6.2 Software Installation


    48


     $              40.00


     $        1,920.00


     


     


    6.3 Data Conversion


    24


     $              40.00


     $           960.00


     


     


    6.4 Test Software


    144


     $              40.00


     $        5,760.00


     


     


    6.5 Create Testing Report


    96


     $              40.00


     $        3,840.00


     


     


    6.6 Staff Training


     


     


     


     


     


    6.6.1 Beginner


    576


     $              75.00


     $      43,200.00


     


     


    6.6.2 Advanced


    144


     $              50.00


     $        7,200.00


     


     


    7. Controlling


     


     


     


    $       8,400.00


    2.753%


    7.1 Documentation Report Presented


    240


     $              35.00


     $        8,400.00


     


     


    8. Reserves (20% of total estimate)


     


     


     


    $     50,858.00


    16.667%


    Total Project cost estimate


     


     


     


    $   305,148.00


     


     


     


     


    Appendix 6. Earned Value Progress Report of RM Software Co.


    WBS Items


    Budgeted Cost for Work Schedule


    Percentage Complete


    Budgeted Cost for Work Performed


    Status


    1. Initiating


    ,040.00


    0.67%


    ,040.00


    Ontime


    2. Planning


    ,200.00


    7.60%


    ,200.00


    Ontime


    3. Analysis


    ,530.00


    10.33%


    ,135.00


    Behind


    4. Design


    ,640.00


    17.58%


    ,452.00


    Ahead


    5. Testing


    ,720.00


    22.85%


    ,720.00


    Ontime


    6. Implementation


    ,760.00


    21.55%


    ,368.00


    Behind


    7. Controlling


    ,400.00


    2.75%


    ,400.00


    Ontime


    8. Reserves (20% of total estimate)


    ,858.00


    16.67%


    ,858.00


    Ontime


    Total Project cost estimate


    5,148.00


     


    4,173.00


    Behind


     


     


     


     



    Credit:ivythesis.typepad.com


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