Assignmet 1 INSE-6230 Total Quality Project Management

Concordia UniversityEngineering & Computer Science

INSE-6230 Total Quality Project Management

Professor: Dr. AMIN HAMMAD

ASSIGNMENT ONE

Students:MARIA CATALINA MALPICA - ID: 6712045MARIA ELIZABETH OSORIO – ID: 7401256

FALL 2014

INSE -6230 Total Quality Project Management

1 Questions Chapter 4

1.1 Question 3Use spreadsheet software to create Figures 4-4 through 4-7 in this text. Make sure your formulas work correctly.

Figure 4.4

Discount Rate 10%

PROJECT 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

Benefits $ - $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 14,000

Costs $ 5,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 9,000

Cash flow $ (5,000) $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000

NPV $ 2,316

PROJECT 2 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

Benefits $ 1,000 $ 2,000 $ 4,000 $ 4,000 $ 4,000 $ 15,000

Costs $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 10,000

Cash flow $ (1,000) $ - $ 2,000 $ 2,000 $ 2,000 $ 5,000

NPV $ 3,201

Figure 4.5Discount rate 8%Assume the project is completed in Year 0

YEAR 0 YEAR 1 YEAR 2 YEAR 3 TOTALCost $ 140,000 $ 40,000 $ 40,000 $ 40,000Discount Factor 1.00 0.93 0.86 0.79Discounted costs 140,000 37,200 34,400 31,600 $ 243,200

Benefits $ - $ 200,000 $ 200,000 $ 200,000

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Discount Factor 1.00 0.93 0.86 0.79Discounted Benefits - 186,000 172,000 158,000 $ 516,000

Discounted Benefits-Costs (140,000) 148,800 137,600 126,400 $ 272,800 NPVCumulative Benefits-Costs (140,000) 8,800 146,400 272,800

↑ROI 112%PAYBACK IN YEAR 1

Figure 4.6

0 1 2 30

100000

200000

300000

400000

500000

600000

PAYBACK

Cumulative cost Cumulatif benefits

YEAR

$

Payback

Figure 4.7

Criteria WeightProject 1

Project 2

Project 3

Project 4

Supports key buisness objectives 25% 90 90 50 20Has strong internal sponsor 15% 70 90 50 20Has strong costumer support 15% 50 90 50 20Uses realistic level of technology 10% 25 90 50 70

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Can be implemented in ne year or less 5% 20 20 50 90Provides positive NPV 20% 50 70 50 50Has low risk in meeting scope, time and goals 10% 20 50 50 90Weighted project scores 100% 56 78.5 50 41.5

Project 1

Project 2

Project 3

Project 4

0 20 40 60 80 100

WEIGHTED SCORE BY PROJECT

1.2 Question 4

Perform a financial analysis for a project using the format provided in figure 4-4. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in year 1 and $30,000 each year in years 2, 3, and 4. Estimated benefits are $ 0 in year 1 and $ 100,000 each year in years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet or use the business case financials template provided on the companion web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In

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addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.

Discount rate 9%Assume the project is completed in Year 0

YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTALCost $ 200,000 $ 30,000 $ 30,000 $ 30,000Discount Factor 1 0.84 0.77 0.71Discounted costs 200,000 25,250 23,166 21,253 $ 269,669

Benefits $ - $ 100,000 $ 100,000 $ 100,000Discount Factor 1.00 0.84 0.77 0.71Discounted Benefits - 84,168 77,218 70,843 $ 232,229

Discounted Benefits-Costs (200,000) 58,918 54,053 49,590 $ (37,440) NPVCumulative Benefits-Costs (200,000) (141,082) (87,030) (37,440)

ROI -14%

During the first 4 years the payback does not occur. The return on investment (ROI) is 14%, what means that the investor would lose his money. The higher the ROI, the better, and it is recommended to have more than 100%, in order to have the money back. For those reason we do not recommend investing in in this project.

1.3 Question 5

Create a weighted scoring model to determine grades for a course. Final grades are based on three exams worth 20%, 15% and 25%, respectively; homework is worth 15%; and a group project is worth 25%. Enter scores for three students. Assume student 1 earns 100% (or 100) on every item. Assume Student 2 earns 70% on each of the exams, 80% on the homework, and

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95% on the group project. Assume student 3 earns 90% on Exam 1, 80% on Exam 2, 75% on exam 3, 80% on the homework, and 70% on the group project. You can use the weighted scoring model template, create your own spreadsheet, or make a matrix by hand.

Weight Student 1 Student 2 Student 3First exam 20% 100 70 90Second exam 15% 100 70 80Third exam 25% 100 70 75Homework 15% 100 80 80Group project 25% 100 95 70Total 100% 100 77.75 78.25

Student 1

Student 2

Student 3

0 10 20 30 40 50 60 70 80 90 100

Final grades

Grades

Students

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2 Questions Chapter 5

2.1 Question 3

Create the same WBS described in Exercise 2 using Project 2010, indenting categories appropriately. Use the outline numbering feature to display the outline numbers manually. Notice that Project 2010 uses PMI’s standard numbering scheme but MindView does not. You may want to enter the numbers to ensure that they appear as desired and are displayed in all reports. Do not enter any durations or dependencies. See appendix A or project 2010´s Help for instruction on creating WBS. Print the resulting Gantt chart on one page, being sure to display the entire task name column.

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2.2 Question 5

Create a WBS for one of the following projects:

Introducing self-checkout registers at your school’s bookstore Updating 50 laptops from project 2007 to project 2010 Providing a new Internet cafe onsite at your organization Developing an app that you and your friend will create and sell online within three

months Earning a CAPM or PMP certification

Decide on all the level 2 categories for the WBS. Use your choice of software to create a WBS in chart form and as tasks in a Gant chart. Do not enter any durations or dependencies. Be sure to include all deliverables and work required for the project. Make notes of questions you had while completing this exercise.

Project chosen: Updating 50 laptops from project 2007 to project 2010.

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2.3 Question 6

Review three different template files in the Microsoft Project 2010 templates folder, from Microsoft’s “templates on Office online” link at http://office.microsoft.com/project, or from another source. What do you think about the WBS? Write a short paper summarizing your analysis, providing at least three suggestions for improving one of the WBS.

Answer

A template file is a good guideline for developing work breakdown structure (WBS) of a project, it will help improve the work and to save time.

Microsoft Project includes a variety of templates for free that can be used as start point for different type of projects.

This exercise aims to review 3 of those templates focusing on the WBS of each one.

The chosen templates are:

1. Microsoft Windows Server 2003 Deployment.mpp: 2. Residential Construction Project Plan.mpp3. Software Development Plan.mpp

An ideal way to develop the WBS is following the project management process groups: 1. Initiating; 2. Planning; 3. Executing; 4. Monitoring and Controlling and 5. Closing.

Considering that we do not know the real scope of the project the review will be performed just based in the contents of the mentioned process groups.

Microsoft Windows Server 2003 Deployment

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The table below presents a summary of the main tasks. The first observation is that the WSB numbering was not included. As a part of this exercise an in order to facilitate the review we developed the numbering.

Main tasks Microsoft Windows Server 2003 Deployment template

WBS Task Name1 Microsoft Windows Server 2003 Deployment1.1 Envisioning1.1.1 Evaluate corporate business objectives1.1.2 Determine technology goals and objectives1.1.3 Formulate preliminary cost/benefit analysis1.1.4 Determine project scope1.1.5 Determine major milestones1.1.6 Secure executive sponsorship/funding1.1.7 Develop executive elevator pitch for internal

marketing on solution value1.1.8 Envisioning complete1.2 Planning1.2.1 Assemble Project Teams/Define Roles1.2.2 Detail Current Computing Environment1.2.3 Detail Preliminary Design Objectives1.2.4 Identify Coexistence Strategies1.2.5 Establish Test Lab Environment1.2.6 Perform Risk Assessment1.2.7 Define Communication Strategy1.2.8 Define Education/Training Strategy1.2.9 Review plan for development1.2.10

Development approved

1.3 Deployment1.4 Post-Implementation Review1.4.1 Obtain user feedback1.4.2 Evaluate lessons learned1.4.3 Modify items as necessary1.4.4 Establish ongoing infrastructure planning team

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1.4.5 Post-implementation review complete1.5 Microsoft Windows Server 2003 deployment

complete

We consider that this template is very well developed. The file includes the Gantt chart that facilitates the visualization of the time allotted for every task. Level 1: corresponds to the entire project.Level 2: the 5 process groups are clearly identifiable.

1. Initiating: this activities group was called Envisioning. We suggest including project charter as a deliverable in this phase.

2. Planning: they refine the project objectives and then plan the steps necessary to achieve those objectives within the project scope that was given. We suggest changing the assemble teams to the initiating phase.

3. Executing: this activities group was called Deployment. Since we are not familiar with the process the technical part will not be assessed. Regarding the structure, our opinion is that it is well developed, includes a good description of deliverables in the level 3 and 4.

4. Monitoring and Controlling: this activities group was called Post-Implementation Review. The activities for monitoring and controlling are included.

2.4 Closing: this activity was called Microsoft Windows Server 2003 deployment complete. The overall project was closed.

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Residential Construction Project Plan

The table below presents a summary of the main tasks. As for the template considered above, the WSB numbering was not included but we developed to facilitate the review.

Main tasks Residential Construction Project Plan template

WBS Task Name

1 Single Family House - Architect Design (3,000 square feet with full basement)

1.1 General Conditions

1.1.1 Finalize plans and develop estimate with owner, architect

1.1.2 Sign contract and notice to proceed1.1.3 Apply for Permits1.2 Site Work1.3 Foundation1.4 Framing1.5 Dry In1.6 Exterior Finishes1.7 Utility Rough-B97Ins and Complete Concrete1.8 Interior Finishes1.9 Landscaping and Grounds Work1.9.1 Pour concrete driveway and sidewalks1.9.2 Install backyard fence1.9.3 Sod and complete plantings - front yard1.9.4 Sod and complete plantings - backyard1.10 Final Acceptance1.10.1

Complete final inspection for certificate of occupancy

1.10. Cleanup for occupancy

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21.10.3 Perform final walk-through inspection

1.10.4 Complete punch list items

The file includes the Gantt chart that facilitates the visualization of the time allotted for every task. Level 1: corresponds to the entire project and it is well defined.Level 2: Even though that the real scope of the project is unknown, in this level is expected finding the 5 process groups, but in this template that structure was not fully followed.

1. Initiating: Not well defined

2. Planning: Apparently the initiating planning phases were included within general conditions but they are not properly defined.

3. Executing: The executing process was developed within the tasks 1.2 to 1.9. As we can see even that the deliverables are well specified the main task are level 2, our suggestion is naming the executing phase as level 2 and under that one as level 3 and 4 the required items.

4. Monitoring and Controlling: this activities group was apparently considered within final acceptance.

5. Closing: this group was not included.

Omitting or not defining properly the process groups can cause confusion or even delays in the development of the project. Phases like initiating and planning are vital for defining scope, work teams, objectives, schedule, etc. Also defining clearly monitoring and closing guarantees quality control and that the project was successfully finished.

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Software Development Plan

The table below presents a summary of the main tasks. As for the templates considered above, the WSB numbering was not included but we developed to facilitate the review.

Main tasks Residential Construction Project Plan template

WBS Task Name1 Scope1.1 Determine project scope1.2 Secure project sponsorship1.3 Define preliminary resources1.4 Secure core resources1.5 Scope complete2 Analysis/Software Requirements3 Design4 Development5 Testing6 Training7 Documentation8 Pilot9 Deployment10 Post Implementation Review10.1 Document lessons learned10.2 Distribute to team members10.3 Create software maintenance team

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10.4 Post implementation review complete11 Software development template complete

This file, as the others, includes the Gantt chart that facilitates the visualization of the time allotted for every task. Level 1: That corresponds to the entire project it is not defined.Level 2: The structure of this template does not follow the 5 process groups.

1. Initiating: Not well defined

2. Planning: We can assume that initiating and planning activities, although are not defined; part of them is contained or considered within scope and analysis phases.

3. Executing: we consider that this phase is comprised within 3 and 9. But to improve organization and understanding is better using the levels and grouping within executing phase.

4. Monitoring and Controlling: this activities group was called Post Implementation Review

5. Closing: this activity was called Software development template complete.

As mentioned for the previous template review, omitting or not defining properly the process groups can cause confusion, also the appropriate levels of the tasks are a very important part to be considered, it helps to improve organization and facilitates visual understanding.

Summary

The comments and suggestion were included within the review of each template, but in general, our suggestions are:

1. Include the numbering: it will help to understand the hierarchy of the WBS.2. Use the levels appropriately: the entire project should be level one, the 5 process

groups level two and the subtasks level 3, 4 etc.3. Include and properly define the 5 process groups

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Assignmet 1 INSE-6230 Total Quality Project Management