Planning & Budgeting with Risk

| October 22, 2018

This was TTs270213_68733_13 Assignment
Question FORWARDED TO YOU LAST 2 WEEKS

Week 4 Hand-in
Assignment
Individual Project: Project Proposal
This week, you will begin work on
your Final Project for this module. Your Final Project for this module will be completed
in three stages and submitted in Weeks 4, 6, and 8. This week, you will
complete the first stage of your Final Project—the Project Proposal. The
purpose of the Final Project is to apply the concepts and techniques of the
module to the development of the following:

Project scope statement
WBS
Project schedule
Staffing (resource) management
plan
Cost estimates
Risk management plan
Communications plan
Quality plan

Each of these will form a separate
section of the Final Project.
Your task for Week 4 is to prepare a
Project Proposal that covers the following:

Description of how you plan to
manufacture, deliver, and assemble the boxes.
Information on how you will
create a project plan. You can create your project plan using either
Microsoft® Project or OpenProj™.
Description of how you plan to
address time, resources, and cost issues to execute tasks and complete the
project effectively and efficiently.

The purpose of this week’s
submission is a proposal and not the solutions to the problems given in the
case study.
The case study on which the project
is based is as follows:
Project
Background: The
Research and Development unit of the Property Development Department of the
Government (PDDG) is working on a program called the Seismic Zone Residential Construction
Improvement Program. PDDG is working to assess the effectiveness of the boxes
of a particular dimension used in the foundation of buildings.
PDDG has furnished the following
specifications for the each box:

The size must be 300 x 250 x
200 cm with a slot of 10 x 10 x 25 cm.
The tolerance on outer
dimensions must be +/-2 cm.
The tolerance on dimensions of
the slot must be 0 to -3 mm in width. In short, the slot cannot be more
than 10 x 10 cm.
It should be made of cardboard
or metal sheet.
It should be made of small
cubes of dimensions 5 x 5 x 5 cm.
It should be smooth in
appearance.

The boxes should be delivered and
assembled at the client’s site.
Company
Background: Your
company, Flexible Models (FM), develops to-the-scale industrial models. Your
principal clients are industrial construction companies and your projects
include building manufacturing plants, refinery process plants, and public
usage buildings, such as halls and shopping malls.
FM also has clients in the
residential construction business but deals in building complexes having more
than 17,000 square meters of actual usable area. The model development skills
of FM are well-known across industries.
The key departments in FM are as
follows:

Designing and Drafting
Department: This
department is involved in understanding the client’s design requirements.
Generally, the client specifies the design of the product. The department
prepares the detailed drawings for the Cutting Department. It also gives
them the assembly drawings with guidelines on the assembly approach. The
resources from this department are allocated exclusively to the project
depending upon the project requirements. Roy Benjamin, general manager,
heads the department. He needs alternate day updates on product design. He
is also a man of detail and requires detailed analysis.
Cutting Department: This department’s staff is
competent in cutting the parts and producing the units as per the
drawings. The resources from this department are not allocated exclusively
to the project. However, the project work is taken up by the department
and then delivered back to the project. Michael Gartner, general manager,
heads the department.
Assembly Department:This department is responsible
for assembling the parts based on the design drawings. The resources from
this department are allocated to the project exclusively depending upon
the project requirements. Philip Cloony, general manager, heads the
department.
Supply Chain Management (SCM)
Department: This
department is responsible for vendor management, market analysis,
contracting, and procuring required resources. The department is a single
point of contact for the supply chain. Jim Stanford, general manager,
heads the department.
New Model Development: John Morris is the vice
president of this division. John is adept at using the Web-based project
tracking system and insists on maximising its use. He is a person of
detail and prefers point-by-point communication. He is keen on regularly
obtaining information on the progress of the project and the project
management processes that are being implemented. Having realised the need
for effective portfolio management, FM has initiated the organisation
restructuring efforts under John’s leadership, who is also the project
sponsor. He wants you to undertake this project and help in strengthening
the organisation’s initiative. You have been authorised by John to select
people from various key departments for your project. These people shall
directly report to you for the duration of the project.

The marketing chief, Caroline Smith,
wants to keep the budget under control. Caroline is quite comfortable with
quick information and does not like details. She prefers one-on-one meetings or
telephone calls for quick updates.
FM primarily uses e-mail as the means
of communication. The company also uses a Web-based project tracking system to
gather information.
The editorial team of a local
journal, Construction Consortium Journal, is interested in your project.
Joseph Bukhmann, the chief editor, has full faith in FM’s expertise. He wants
to know more about the project to report it in the journal.
Client
Background:Paul Lee,
the technical lead at the Research and Development unit of PDDG wants a
once-a-week update about the progress of the technical design. The Seismic Zone
Residential Construction Improvement Program Manager at PDDG would like to
speak with you about the project progress on a biweekly basis. However, he
needs a short presentation on the project status update two days before the
biweekly call.
Assignment: You are accountable for the project
costs, and hence, you are keen on developing realistic cost estimates and a
realistic project budget. You have already estimated the effort, which is given
in the table below:

Task
Name

Duration

Resource

Effort

Boxes

Requirements
Analysis

Interview
client stakeholders

4 days

Design

8 person
days

Product
detail analysis

6 days

Design

10
person days

Assembly

6 person
days

Refinement
of the final draft

2 days

Design

4 person
days

Design
and
Concept

High
level design

4 days

Design

4 person
days

Details
with operation designs

6 days

Design

12
person days

Production

Set up

4 days

Assembly

6 person
days

Cutting
and parts development

3 days

Cutting

9 person
days

Sub-assembly
1

6 days

Assembly

12
person days

Sub-assembly
2

6 days

Assembly

12
person days

Sub-assembly
3

4 days

Assembly

8 person
days

Assembly
integration

3 days

Assembly

6 person
days

Material

Cardboard
sheet

50 sheets

Metal
sheets

50
sheets

Cubes

900
pieces

Delivery

Pre-delivery

2 days

Will
cost USD 3000

Shipment/Delivery—delivery
takes 2 weeks by sea.

Outsourced

Will
cost USD 6000

Implementation

7 days

Design

11
person days

Assembly

7 person
days

‘Product detail analysis’ can start
with ‘Interview client stakeholders’. However, the final draft can be refined
only after both tasks are completed. The task ‘Details with operation designs’
starts with a 50% overlap with ‘High level design’. The tasks ‘Sub-assembly 1’,
‘Sub-assembly 2’, and ‘Sub-assembly 3’ all start after the task ‘Set up’ is
completed. ‘Assembly integration’ starts only after all sub-assemblies are
completed. Pre-delivery can start after set up, while shipment starts only
after assembly integration. The last activity is implementation.
The ‘Cutting and parts development’
task requires skilled labour and is the most crucial task from a quality
perspective. A minor mistake can cause a lot of waste and escalation in the
cost of the product. There are only two skilled people in the company who can
undertake this task and they are always extremely busy. The probability that
they will not be available for this work in the schedule mentioned above is
0.7. This has impact on the schedule as the schedule gets pushed by 6 days for
every day of delay in this task.
Traditionally, there has been a 0.3
probability of components getting damaged during shipment and the costs should
incorporate 30% of additional budgeting for these incidences. In addition,
factors such as a change in client requirements after the cutting stage, a
delay in the arrival of raw materials needed for each task or process, and the
time wasted during incorrect set-up should be considered when you draw the risk
log and the risk management plan for the project.
Resource rates are as follows:
Material rate:

USD 20 per industrial cardboard
sheet of 300 cm x 200 cm x (4 mm thickness) dimensions
USD 25 per metal sheet of 250
cm x 200 cm x (4 mm thickness) dimensions
Standard cubes of 4 cm are
available in the market at USD 10 each

Labour rate:

Design department: USD 150 per
day
Cutting department: USD 90 per
day
Assembly department: USD 150
per day

For completing the project plan,
additional information can be found at the following Web sites:
Example of project plan in Microsoft
Project:

Plutonic Power Corporation East
Toba River and Montrose Creek Hydroelectric Project proposed construction
schedule [Online]. (n.d.). Available from: .gov.bc.ca/appsdata/epic/documents/p245/d21140/1137607116785_57cca76fbbb94930bfb5cd42fc4020fb.pdf”>http://a100.gov.bc.ca/appsdata/epic/documents/p245/d21140/1137607116785_57cca76fbbb94930bfb5cd42fc4020fb.pdf (Accessed: 15 September 2009)

Using OpenProj:
Getting started with OpenProj (2008) Available from:.org/wiki/index.php/Getting_Started_with_OpenProj”>http://openproj.org/wiki/index.php/Getting_Started_with_OpenProj (Accessed: 15 September 2009)
Note: Additional documentation can be accessed by clicking Next Tip
of the Day within OpenProj and by pressing F1, which will give you online
help for the item underneath the cursor. Note also, as an open source
software package, documentation and support will be limited.
Examples of a project plan in OpenProj

Example #1:

Gantt chart (2008) Available from:.org/wiki/index.php/Gantt_Chart”>http://openproj.org/wiki/index.php/Gantt_Chart (Accessed: 15 September 2009)
Please
make sure that you cite and reference all your outside sources properly, as per
the Harvard Referencing System.

This was TTs270213_68733_13 Assignment Question
SOLUTION YOU PROVIDED ME AND I FORWARDED TO MY LECTURER
MODULE 2 WEEK 4 HAND IN ASSIGNMENT -PROJECT PROPOSAL
PROJECT PROPOSAL
Introduction
1.0 The
main objective of this Project Proposal is to represent the details necessary
to effectively run and manage the project, deploy a successful communication
among project participants, and having an approved schedule baselines in the
form of document. The final project plan can be designed using a project
proposal and is a living document and is anticipated to vary over time as more and
more details related to the project becomes available.

1.1 The
project proposal is developed based on main key assumptions. Any modifications
to these assumptions can affect the project schedule, projected budget or costs,
the project scope and also the project quality. The scope and main objective of
project include:
·
The main goal of this project is
to support the idea, operation, and objectives of PDDG, helping stakeholders; employees
and workers realize their work and perform effectively using all necessary
equipment’s.
·
This helps PDDG in achieving
its successful web tracking of project, construction of boxes and aim of exceptional
customer service.
·
PDDG management actively tries
to provide support for improvements in each of the component areas: framework,
tools, project management skills, designing, Cutting and Assembly, SCM, culture,
politics, quality and communication.
·
PDDG management and workforce
obey with every specification for all project management responsibilities that
are stated to them.
·
Further, the timeline is considered
to be doable and reasonable. The phased rollout of manufacturing supports
initial accomplishment and sustained enhancement. The project also involves a detailed
implementation as components are assemble and developed, followed by continued
competency and enhancements in each of the component areas.
·
PDDG management assigns main
project roles and sufficient budget for the successful deployment of project.
·
The main objectives also
include effective, sufficient, and suitable levels of communication occur
between PDDG management, the project sponsor, and work force of all the phases
of project.
·
The final deliverables are
implemented PDDG-wide, which will support various varied functional groups,
projects, and customers.

1.2 Work Breakdown Structure

The work breakdown
structure involves identifying the main tasks of project’s to provide a
framework for organizing and managing the work of the project.

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project schedule
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strategies
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Assembly integration

2.0 Staffing
Plan
The main purpose of the staffing management plan
is to ensure that the project has an adequate staff with proper skills and
expertise to make certain a successful project completion.
3.0 Role Requirements
The following table represents detailed
breakdown of the roles performed by departments that are needed to run the
project. It includes: Concerned project department, skills needed, number of
staff needed in department, the estimated start date and the anticipated
duration of the staff resource that will be required on the project.

D

Skills Required

Number of Staff Required

Estimated Start Date

Duration Required

Designing
and Drafting department

Expertise in requirement analysis and
designing

1

4/3/13

3months

Cutting
department

Expertise
in cutting of raw materials

4

29/3/013

1 months

Assembly
department

Expertise
in assembling the parts based on design

1

12/3/13

3 months

Supply
chain Management Department

Expertise
for vendor management, market analysis

1

4/3/13

3months

Other

For
delivery, accounting etc.

1

4/3/13

3 months

4.0 Project
Schedule
This section includes a Gantt chart and a project
schedule for the project.
4.1 Gantt Chart

The
Gantt chart graphically represents a project by showing each task as a
horizontal bar whose length is the time needed to complete the task.

4.2 Project Schedule

The project
schedule includes milestones, task dependencies, task duration, delivery dates,
and staff resources assigned to complete the tasks.

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5.0 Project
Budget
The
project budget specifies cost and budget required to successfully finish the
project tasks.

5.1 Budgetduring the life of the Project

The budget given below describes the detailed
estimates for labor, material and other items that may be required for the
duration of the project.

Line Item

Labor

Material

Other

FY
Total

Phase I

1. Requirement Analysis

$8,600

$0

$8,600

1.1 Interview client stakeholders

1.2 Product Detail Analysis

1.3 Refinement of Final draft

2. Design and Concept

$15,000

$0

$15,000

2.1 High Level Design

2.2 Details with operation design

3. Production

$11250

3.1 Set up

$5,000

$0

$5,000

3.2 Cutting and Parts
Development

3.3 Sub-assembly 1

$45,000

$2000

$67,000

3.4 Sub assembly 2

$14,000

$0

$30,000

3.5 sub assembly 3

$7000

$0

$0

3.6 Assembly Integration

$6000

$0

$0

4.
Delivery and Implementation

$9000

$9000

Total Project Budget $172,100

5.2 Risk Management Plan
Every
project plan must take into consideration the possible risks and their effects.
Possible risks that can occur in this
project are:

Damage during shipment
Delay in the arrival of
raw material
Change in Clients’
requirements
Time wasted due to
incorrect set up

Therefore, possible risk management efforts
must be considered in advance for all these risks so that all these risks must
have least impact on the successful completion of project.
Adams Audu
References:
1. PROJECT MANAGEMENT PLANNING. (1997, Jan). Retrieved from
http://www.cioarchives.ca.gov:.cioarchives.ca.gov/ITpolicy/pdf/PM3.5_Planning_Budgeting.pdf”>http://www.cioarchives.ca.gov/ITpolicy/pdf/PM3.5_Planning_Budgeting.pdf.

2. Sanghera,
P. (2010) PMP® in depth: project management professional study guide for the
PMP® exam.2nd ed.Boston: Course Technology/Cengage Learning.
3. Staffing-management-plan. (n.d.). Retrieved from
http://project-management-knowledge.com/: http://project-management-knowledge.com/definitions/s/staffing-management-plan/
4. University of Liverpool/Laureate Online Education Lecture notes Week 4: Quality
control throughout the life cycle Module 2 [Online], Available from:
University of Liverpool/Laureate Online Education Blackboard (Accessed: 2 March
2013).
5. Weisert, M. (2010, Summer). MSProject.pdf.
Retrieved from webpages.cs.luc.edu:
http://webpages.cs.luc.edu/~cweisert/COMP477/MSProject.pdf

This was the feedback I got from my
Lecturer from the solution you prepared for me:
MODULE
PROJECT PROPOSAL:
With
regard to your Individual Project Proposal, you could have improved your
response by structuring it in terms of all the main sections for your final Module
Project Report (which was provided in the question). This would also have
appropriately brought out more of the issues. You provided some but left some
others like Communication Plan and Quality Plan. You could also have clearly
mentioned the Proposal objective as well as the Module Project objective as
part of your Introduction to enable the reader properly appreciate the context
of your Proposal (and this also helps to focus your work – see the question for
the specific objectives)
A
major shortcoming of your work was that it was not referenced, i.e. there was
not a single citation in it, which means your reference list was meaningless. I
could not therefore justify a pass grade here as your work did not demonstrate
research and scholarship, an important aspect of the MSc Programme (see the
assignment question and my Module Welcome Message on the need to cite and
reference your work). In view of the University’s emphasis on research at
graduate (Masters) level including the importance of research for the higher
grades, i.e. B, A, and A* and even the C grade (see the grade descriptors in
the Student Handbook), it is very helpful to write your assignments in such a
way as to demonstrate research and scholarship by using at least three
referencing sources (properly cited and referenced) in your work to improve it.
General Feedback for all Students for WEEK 4 MODULE 2 PROJECT PROPOSAL
Week 4 General feedback relates to
your Individual Project Proposal. The question clearly stated that “The purpose of this week’s submission is a Proposal and
not the Solutions to the problems given in the case study” (also
see my message to the class explaining the Module Project via ‘Contact
Instructor’). Therefore in order to ensure an
even-playing field, I have not assessed the solutions including the costs and
schedules that a few students included in their work (which was actually not
required for Week 4) – these will be assessed in Week 8.
The task or objective for
Week 4 called for the preparation of a Project Proposal that covered the
following:
·Description of how you
plan to manufacture, deliver, and assemble the boxes.
·Information on how you
will create a project plan. You can create your project plan using either
Microsoft® Project or OpenProj™.
·Description of how you
plan to address time, resources, and cost issues to execute tasks and complete
the project effectively and efficiently.
The assignment also
stated that the purpose of the Final Project is toapply the concepts
and techniques of the moduleto the specific situation presented
in the case, taking into consideration the following:
Project
scope statement
WBS

Project
schedule
Staffing
(resource) management plan
Cost
estimates
Risk
management plan
Communications
plan
Quality
plan
Since the question
stated that “Each of these [i.e. the above issues] will
form a separate section of the Final Project”, it was most appropriate
to structure your Proposal using each of these issues as a main section of your
Proposal (i.e. tell us how you are going to go about each of these) while still
keeping in mind the Week 4 task which is the same as the objective of your
Proposal (I have highlighted the task or the Proposal objective in blue font
above). The following was therefore expected:
1.0
Introduction

Brief information about
the project (i.e. Background, Proposal Objective and the Module Project
Objective – Notice that including the Module Project objective (in green font
above) is helpful as it enables the reader to better appreciate the context of
your Proposal).
2.0
Project scope statement
Information about the
project scope, i.e. what is included in the project and what is not.
3.0
WBS
Remember that once the
scope has been defined, it next needs to be broken down into concrete
manageable tasks that can be assigned and performed (see page 79 of the
textbook). Therefore you need to mention the need for the WBS.
4.0
Project schedule
Provide information on
how you will go about your project schedule taking into consideration the
issues in the question.
5.0 Staffing
(resource) management plan
Provide information
about how you will go about those to be responsible for the various activities
including the roles of the project team members, how to acquire the project
team, the need for an organization chart and Responsibility Assignment Matrix
(RAM) to identify and allocate roles, etc.
6.0
Cost estimates
Provide information
about the cost estimating techniques including the extra costs (30%) due to
risk of damage during shipment, the option of using the cubes to be purchased
off the market, etc. [Note: whichever techniques are mentioned
here, bottom-up estimating should not be left out.]
7.0
Risk management plan
Information about how to
go about your risk management plan including qualitative and quantitative, risk
register, PI Matrix, risk response, etc.
8.0
Communications plan
Information about how to
go about your communication plan including communication with the client
including the Technical lead at the Research and Development Unit of PDDG and
the Seismic Zone Residential Construction Improvement Program Manager at PDDG,
communication with the different departmental heads including the Marketing
Chief, reporting to the Vice-President, updating the Chief Editor of
Construction Consortium Journal, including the use of email, and the use of the
web-based project tracking system to gather information.
9.0
Quality plan
Information on how you
will ensure quality on the project using the various tools and techniques
learnt. Here it is important to take into consideration the need for very high
tolerance levels, the high workmanship expected and the smooth appearance of
the product.
10.0
Monitoring & Controlling the Project
It is helpful to add
information on how you will monitor and control the execution of the project to
manage the golden triangle of scope, cost and time to enhance your work, since
this is important in completing the project effectively and efficiently. Here
you could provide information about tools and techniques to control performance
in terms of the schedule and cost, such as the use of EV, PV, AC, CPI, SV, SPI,
etc. etc. Also, how to deal with change requests, etc.
11.0
Conclusion
This is a Proposal document, so it
would be helpful to have an appropriate conclusion. Remember a conclusion
should be based on your stated objectives and on the analysis and findings
arrived at in meeting those objectives.
12.
0 REFERENCES
This
is too important to leave out(at
least three appropriate referencing sources including the module textbook
properly cited and referenced).
Note: You could of course
include an Executive Summary for your Project Proposal to enhance it.
Rememberthe Executive Summary basically does
three things: (i) it provides a brief outline of the problem(s) or your
objectives; (ii) it briefly mentions how you addressed the problem(s) or your
objectives; and (iii) it provides an outline of your conclusions and/or
recommendations (or you could also go by what Wysocki (2009, p.189) says about
the Executive Summary).

For this week I’m to provide the project outline based on
the lecturers comments I just sent you
For
Week 6 Individual Project: Project Outline
To
create your outline, you should begin by working with the approved Project
Proposal you submitted in Week 4. Your outline must be structured using
distinct sections (based on the Project Proposal) that will ensure the
application of the concepts and techniques already presented in this module.
The different sections of the Project Proposal are as follows:
Project scope statement
WBS
Project schedule
Staffing (resource) management plan
Cost estimates
Risk management plan
Communications plan
Quality plan

In
this stage, you should provide additional detail under the sections identified.
The outline you submit must show clear boundaries between the sections of the
Final Project that relate to the following:

Background information
Chosen methodology
Identification of external resources
Analysis and interpretation of results
Conclusions and recommendations

Your
outline should also provide a preliminary list of references you intend to
consult to support your entire project. In total, your outline should consist
of major headings and bullet points and should be 200–500 words in length.
Recall that your Final Project will be due in Week 8.

Please
make sure that you cite and reference all your outside sources properly, as per
the Harvard Referencing System.

Let
me have the price quote for the project out line so that I can pay today
through western Union or Money gram.

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