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ADDITIONAL CASES
INTRODUCTION
This document provides four cases in addition to the Global Treps running case in Chapters 4 through 13 of Information Technology Project Management, Eighth Edition. The first two cases include tasks ordered by each of the 10 knowledge areas discussed in Chapters 4 through 13. The first one, Manage Your Health, was in the seventh edition. The third and fourth cases include tasks based on the five project management process groups and are based on Kathy Schwalbe’s text, An Introduction to Project Management, Fifth Edition.
The purpose of these cases is to help you practice and develop the project management skills you learned from this text. Several of the tasks involve using templates provided on the companion Web site () and the author’s personal Web site ( ). Some suggested solutions are provided for the Manage Your Health case in the instructor’s solutions manual, but other solutions are not provided as answers will vary.
ADDITIONAL CASE 1: MANAGE YOUR HEALTH
Note: This case was in the seventh edition of Information Technology Project Management. References to figure numbers may vary from the eighth edition.
Part 1: Project Integration Management
Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of healthcare products and services. Below are some ideas the IT department has developed for supporting these strategic goals:
1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the industry average for employee healthcare premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least $30/employee/year for full-time employees over the next four years. This application would include the following capabilities:
• Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, and walking.
• Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health-related issues.
• Track data on employee involvement in these recreational and health-management programs.
• Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).
2. Health Coverage Costs Business Model: Develop an application to track employee healthcare expenses and company healthcare costs. Healthcare premiums continue to increase, and the company has changed insurance carriers several times in the past
10 years. This application should allow business modeling of various scenarios as well as tracking and analyzing current and past employee healthcare expenses and company healthcare costs. This application must be secure and run on the current intranet so several managers and analysts can access it and download selected data for further analysis. The new application must also import data from the current systems that track employee expenses submitted to the company and the company’s costs to the insurance provider. You believe that having this data will help you revise policies concerning employee contributions to healthcare premiums and help you negotiate for lower premiums with insurance companies. You estimate that this application would save your company about $20/employee/year for full-time employees over the next four years and cost about $100,000 to develop.
3. Cross-Selling System: Develop an application to improve cross-selling to current customers. The current sales management system has separate sections for major product and service categories and different sales reps based on those products and services. You see great opportunities to increase sales to current customers by providing discounts when they purchase multiple products and services. You estimate that this system would increase profits by $1 million each year for the next three years and cost about $800,000 each year for development and maintenance.
4. Web-Enhanced Communications System: Develop a Web-based application to improve development and delivery of products and services. There are currently several incompatible systems related to the development and delivery of products and services to customers. This application would allow customers and suppliers to provide suggestions, enter orders, view the status and history of orders, and use electronic commerce capabilities to purchase and sell their products. You estimate that this system would save your company about $2 million each year for three years after implementation. You estimate that the system will take one year and $3 million to develop and require 20 percent of development costs each year to maintain.
Tasks
1. Summarize each of the proposed projects in the Running Case section using a simple table format suitable for presentation to top management. Include the name of each project, identify how each one supports business strategies, assess the potential financial benefits and other benefits of each project, and provide your initial assessment of the value of each project. Write your results in a one- to two-page memo to top management, including appropriate back-up information and calculations.
2. Evaluate the four projects in the Running Case section by preparing a weighted scoring model using the template provided on the companion Web site for this text. Develop at least four criteria, assign weights to each criterion, assign scores, and then calculate the weighted scores. Print the spreadsheet and bar chart with the results. Also write a one-page paper that describes this weighted scoring model and the results.
3. Prepare a business case for the recreation and wellness intranet project. Assume that the project will take six months to complete and cost about $200,000. Use the business case template provided on the companion Web site for this text.
4. Prepare a project charter for the recreation and wellness intranet project. Assume that the project will take six months to complete and cost about $200,000. Use the project charter template provided in this text and the sample project charter provided in Table 4-1 as guides.
5. Prepare a change request for the recreation and wellness intranet project, using the template provided on the companion Web site for this text. Be creative when making up information.
Part 2: Project Scope Management
Managers at Manage Your Health, Inc. (MYH) selected Tony Prince as the project manager for the Recreation and Wellness Intranet Project. The schedule goal is six months, and the budget is $200,000. Tony has previous project management and systems analysis experience within the company, and he is an avid sports enthusiast. Tony was starting to put the project team together. He knew he would have to develop a survey to solicit input from all employees about the new system and make sure it was user-friendly.
Recall from Chapter 4 that this system would include the following capabilities:
• Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, and walking.
• Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health-related issues.
• Track data on employee involvement in these recreational and health-management programs.
• Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).
Assume that MYH would not need to purchase any additional hardware or software for the project.
Tasks
1. Document your approach for collecting requirements for the project described in the Running Case section. Include at least five requirements in a requirements traceability matrix.
2. Develop a first version of a project scope statement for the project. Use the template provided on the companion Web site for this text and the example in Chapter 3 as guides. Be as specific as possible in describing product characteristics and requirements, as well as all of the project’s deliverables. Be sure to include testing and training as part of the project scope.
3. Develop a work breakdown structure for the project. Break down the work to Level 3 or Level 4, as appropriate. Use the template on the companion Web site and samples in this text as guides. Print the WBS in list form. Be sure the WBS is based on the project charter (created for the Chapter 4 Running Case), the project scope statement created in Task 2, and other relevant information.
4. Use the WBS you developed in Task 3 to begin creating a Gantt chart using your choice of software. Do not enter any durations or dependencies. Print the resulting Gantt chart on one page, and be sure to display the entire Task Name column.
5. Develop a strategy for scope validation and change control for this project. Write a short paper summarizing key points of the strategy.
Part 3: Project Time Management
Tony Prince is the project manager for the Recreation and Wellness Intranet Project. Team members include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a business analyst; and Bonnie, another programmer/analyst. Other people are supporting the project from other departments, including Yusaff from human resources and Cassandra from finance. Assume that these are the only people who can be assigned and charged to work on project activities. Recall that your schedule and cost goals are to complete the project in six months for under $200,000.
Tasks
1. Review the WBS and Gantt chart you created for Tasks 3 and 4 in Chapter 5. Propose three to five additional activities that would help you estimate resources and durations. Write a one-page paper describing these new activities.
2. Identify at least eight milestones for the Recreation and Wellness Intranet Project. Write a short paper describing each milestone using the SMART criteria. Discuss how determining these milestones might add activities or tasks to the Gantt chart. Remember that milestones normally have no duration, so you must have tasks that will lead to completing the milestone.
3. Using the Gantt chart you created for Task 4 in Chapter 5 and the new activities and milestones you proposed in Tasks 1 and 2 above, create a new Gantt chart using Project 2013. Estimate the task durations and enter dependencies as appropriate. Remember that your schedule goal for the project is six months. Print the Gantt chart and network diagram, each on one page.
4. Write a short paper summarizing how you would assign people to each activity from Tasks 1, 2, and 3. Include a table or matrix listing how many hours each person would work on each task. These resource assignments should make sense given the duration estimates made in Task 3 above. Remember that duration estimates are not the same as effort estimates because they include elapsed time.
Part 4: Project Cost Management
Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months for under $200,000.
Tasks
1. Prepare and print a one-page cost model for the project described in the Running Case, similar to the model provided in Figure 7-2. Use the following WBS, and be sure to document your assumptions in preparing the cost model. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000.
1. Project management
2. Requirements definition
3. Web site design
1. Registration for recreational programs
2. Registration for classes and programs
3. Tracking system
4. Incentive system
4. Web site development
1. Registration for recreational programs
2. Registration for classes and programs
3. Tracking system
4. Incentive system
5. Testing
6. Training, rollout, and support
2. Using the cost model you created in Task 1, prepare a cost baseline by allocating the costs by WBS for each month of the project.
3. Assume that you have completed three months of the project. The BAC was $200,000 for this six-month project. You can also make the following assumptions:
PV = $120,000
EV = $100,000
AC = $90,000
a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under bud get or over budget?
c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?
d. Use the SPI to estimate how long it will take to finish this project.
e. Sketch an earned value chart using the preceding information. See Figure 7-5 as a guide.
Part 5: Project Quality Management
The Recreation and Wellness Intranet Project team is working hard to ensure that the new system they develop meets expectations. The team has a detailed scope statement, but the project manager, Tony Prince, wants to make sure they’re not forgetting requirements that might affect how people view the quality of the project. He knows that the project’s sponsor and other senior managers are most concerned with getting people to use the system, improve their health, and reduce healthcare costs. Users want the system to be user-friendly, informative, fun to use, and fast.
Tasks
1. Develop a list of quality standards or requirements related to meeting the stakeholder expectations described in the Running Case. Also provide a brief description of each requirement. For example, a requirement might be that 90 percent of employees have logged into the system within two weeks after the system rolls out.
2. Based on the list created for Task 1, determine how you will measure progress on meeting the requirements. For example, you might have employees log into the system as part of the training program and track who attends the training. You could also build a feature into the system to track usage by user name, department, and other criteria.
3. After analyzing survey information, you decide to create a Pareto chart to see which types of recreational programs and company-sponsored classes generated the most interest. First, create a spreadsheet in Excel using the data in the following table. List the most frequently requested programs or classes first. Use the Excel template called pareto_chart.xls on the text’s companion Web site and check your entries so the resulting chart looks similar to the one in Figure 8-7. See the companion Web site for help in creating Pareto charts.
|Requested Programs/Classes |# of Times Requested |
|Walking program |7,115 |
|Volleyball program |2,054 |
|Weight reduction class |8,875 |
|Stop smoking class |4,889 |
|Stress reduction class |1,894 |
|Soccer program |3,297 |
|Table tennis program |120 |
|Softball program |976 |
Part 6: Project Human Resource Management
Several people working on the Recreation and Wellness Intranet Project are confused about their responsibilities for the testing portion of the project. Recall that the team members include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a business analyst; and Bonnie, another programmer/analyst. Tony Prince is the project manager, and he has been working closely with managers in other departments to make sure everyone knows what’s going on with the project.
1. Prepare a responsibility assignment matrix based on the following information: The main tasks for testing include writing a test plan, unit testing, integration testing for each of the main system modules (registration, tracking, and incentives), system testing, and user acceptance testing. In addition to the project team members, a team of user representatives is available to help with testing, and Tony has also hired an outside consulting firm to help as needed. Prepare a RACI chart to help clarify roles and responsibilities for these testing tasks. Document key assumptions you make in preparing the chart.
2. The employees of the outside consulting firm and the user representatives have asked you to create a resource histogram to show how many people you think the project will need for testing, and to show when testing will occur. Assume that the consulting firm has junior and senior testers and that the user group has workers and managers. You estimate that you’ll need the involvement of both groups in testing over a period of six weeks. Assume that you’ll need one senior tester for all six weeks, two junior testers for the last four weeks, two user-group workers for the first week, four user-group workers for the last three weeks, and two user-group managers for the last two weeks. Create a resource histogram like the one in Figure 9-6 based on this information.
3. One of the issues in Tony’s issue log is the ability to work effectively with the user group during testing. According to MBTI classifications, Tony knows that several of his project team members are very introverted and strong thinking types, while several members of the user group are very extroverted and strong feeling types. Write a one-page paper that describes options for resolving this issue.
Part 7: Project Communications Management
Several issues have arisen on the Recreation and Wellness Intranet Project. The person from the HR department who was supporting the project left the company, and now the team needs more support from that group. A member of the user group that supports the project is extremely vocal and hard to work with, and other users can hardly get a word in at meetings. The project manager, Tony, is getting weekly status reports from all of his team members, but many of them do not address obvious challenges that people are facing. The team is having difficulty deciding how to communicate various project reports and documents and where to store all of the information being generated. Recall that the team members include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a business analyst; and Bonnie, another programmer/analyst.
1. Prepare a partial communications management plan to address some of the challenges mentioned in the previous paragraph.
2. Prepare a template and sample of a good weekly progress report that could be used for this project. Include a list of tips to help team members provide information on these reports.
3. Write a one-page paper describing two suggested approaches to communicating with the hard-to-work-with user.
Part 8: Project Risk Management
Tony and his team identified some risks during the first month of the Recreation and Wellness Intranet Project. However, all they did was document the risks in a list. They never ranked the risks or developed any response strategies. Because the project has had several problems, such as key team members leaving the company, users being uncooperative, and team members not providing good status information, Tony has decided to be more proactive in managing risks. He also wants to address positive risks as well as negative risks.
1. Create a risk register for the project, using Table 11-5 and the data after it as a guide. Identify six potential risks, including risks related to the problems described in the previous paragraph. Include negative and positive risks.
2. Plot the six risks on a probability/impact matrix, using Figure 11-5 as a guide. Also assign a numeric value for the probability and impact of each risk on meeting the main project objective. Use a scale of 1 to 10 in assigning the values, with 1 representing the lowest values. For a simple risk factor calculation, multiply the probability score and the impact score. Add a column called Risk Score to your risk register to the right of the impact column. Enter the new data in the risk register. Write your rationale for how you determined the scores for one of the negative risks and one of the positive risks.
3. Develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register. Also write a separate paragraph describing what specific tasks would be required to implement the strategy. Include time and cost estimates for each strategy as well.
Part 9: Project Procurement Management
Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to outsource employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also wants to outsource the incentive program designed to motivate employees to use the system and improve their health. MYH feels that the right outside company could get people excited about the system and provide a good incentive program. As part of the seller selection process, MYH will require interviews and samples of similar work to be presented to a review team. Recall that MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. Assume that the work would involve several instructor-led training sessions, developing a training video that employees could view from the company’s intranet site, developing a training manual for the courses that anyone can download from the intranet site, developing an incentive program for using the system and improving health, creating surveys to assess the training and incentive programs, and developing monthly presentations and reports on the work completed. The initial contract would last one year, with annual renewal options.
1. Suppose that your team has discussed management’s request. You agree that it makes sense to have another organization manage the incentive program for this new application, but you do not think it makes sense to outsource the training. Your company has extensive experience doing internal training. You also know that your staff will have to support the system, so you want to develop the training to minimize future support calls. Write a one-page memo to senior management stating why you think the training should be done in-house.
2. Assume that the source selection criteria for evaluating proposals are as follows:
• Management approach, 15%
• Technical approach, 15%
• Past performance, 20%
• Price, 20%
• Interview results and samples, 30%
Using Figure 12-5 and the weighted scoring model template as guides, create a spreadsheet that could be used to enter ratings and calculate scores for each criterion and total weighted scores for three proposals. Enter scores for Proposal 1 as 80, 90, 70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and 95. Enter scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph to the spreadsheet that summarizes the results and your recommendation. Print your results on one page.
3. Draft potential clauses that you could include in the contract to provide incentives to the seller based on MYH achieving its main goal of improving employee health and lowering healthcare premiums as a result of this project. Be creative in your response, and document your ideas in a one-page paper.
Part 10: Project Stakeholder Management
Recall from previous chapters that the following people are involved in the Manage Your Health, Inc. (MYH) Recreation and Wellness system:
• Tony Prince, the project manager
• Hillary, the project sponsor
• You and Bonnie, programmer/analysts in the IT department
• Patrick, a network specialist in IT
• Nancy, a business analyst in IT
• Gayle, the sponsor and VP of human resources
• Yusaff, a human resources specialist
• Cassandra, a finance specialist
• Supplier A, who was hired to handle training on the new system and manage an incentives program
• 20,000 full-time employees and 5,000 part-time employees, all of whom are potential users of the new system
1. Prepare a stakeholder register using the preceding information. Make up other information as needed.
2. Create a stakeholder management strategy for the project, focusing on members who are not on the project team, such as Hillary, Gayle, the lead person from Supplier A, and a vocal member of a user group testing the new system. Be creative in developing potential management strategies.
3. Prepare an issue log for the project. Include past issues discussed in prior chapters, such as Yusaff leaving the company, a difficult and vocal member of the user group, and unproductive meetings. Make up three additional potential issues.
ADDITIONAL CASE 2: GREEN COMPUTING RESEARCH PROJECT
Note: This case was based on the seventh edition of Information Technology Project Management. References to figure numbers may vary from the eighth edition.
Part 1: Project Integration Management
You work for We Are Big, Inc., an international firm with more than 100,000 employees in several countries. A strategic goal is to help improve the environment while increasing revenues and reducing costs. The Environmental Technologies Program just started, and the VP of Operations, Natalie, is the program sponsor. Ito is the program manager, and there is a steering committee made up of 10 senior executives, including Natalie, who oversees the program. Several projects operate within this program, including the Green Computing Research Project. The CIO and project sponsor, Ben, has given this project high priority and plans to hold special interviews to hand-pick the project manager and team. Ben is also a member of the program steering committee. Before coming to We Are Big, Ben sponsored a project at a large computer firm to improve data center efficiency. This project, however, is much broader. The main purpose of the Green Computing Research Project is to research possible applications of green computing, including the following:
• Data center and overall energy efficiency
• Disposal of electronic waste and recycling
• Telecommuting
• Virtualization of server resources
• Thin client solutions
• Use of open source software
• Development of new software to address green computing for internal use and potential sale to other organizations
The budget for the project is $500,000, and the goal is to provide an extensive report, including detailed financial analysis and recommendations for which green computing technologies to implement. Official project request forms for the recommended solutions will also be created as part of the project.
Ben decided to have five people working full-time on this six-month project and to call on people in other areas as needed. He wanted to be personally involved in selecting the project manager and to have that person help him select the rest of the project team. Ben wanted to find people already working inside the company, but he was also open to reviewing applications for potential new employees to work specifically on his project as long as they could start quickly. Because many good people were located in different parts of the world, Ben thought it made sense to select the best people he could find and allow them to work virtually on the project. Ben also wanted the project manager to do more than just manage the project. The project manager would also do some of the research, writing, and editing required to produce the desired results. Ben was also open to paying expert consultants for their advice and to purchasing books and related articles as needed.
Tasks
1. Research green computing and green projects performed by large organizations such as IBM, Dell, HP, and Google. See and similar sites provided on the companion Web site, or find sites yourself. Include your definition of green computing to incorporate all of the topics listed in the background scenario. Describe each area of green computing, including a detailed example of how at least one organization has implemented each area, and investigate the return on investment. Summarize your results in a short paper, and cite at least three references.
2. Prepare a weighted decision matrix using the template named wtd_decision_matrix.xls from the companion Web site. Ben will use this matrix to evaluate applicants for project manager for this important project. Develop at least five criteria, assign weights to each criterion, assign scores, and then calculate the weighted scores for four fictitious applicants. Print the spreadsheet and bar chart with the results. Write a one-page paper that describes the weighted decision matrix and summarizes the results.
3. Prepare the financial section of a business case for the Green Computing Research Project. Assume that this project will take six months to complete (in Year 0) and will cost $500,000. The costs to implement some of the technologies will be $2 million for year one and $600,000 for years two and three. Estimated benefits are $500,000 in the first year after implementation and $2.5 million in the following two years. Use the business case spreadsheet template (business_case_financials.xls) from the companion Web site to help calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate, but make sure the rate is an input that is easy to change.
4. Prepare a project charter for the Green Computing Research Project. Again, assume that the project will take six months to complete and that the budget is $500,000. Use the project charter template (charter.doc) and examples of the project charters in Chapters 3 and 4 as guidelines. Assume that part of the approach is to select the project team as quickly as possible.
5. Because people will request changes to the project, make sure that you have a good integrated change control process in place. You also want to address change requests as quickly as possible. Review the template for a change request form (change_request.doc) provided on the companion Web site. Write a short paper that describes how you plan to manage changes on this project in a timely manner. Explain who will be involved in making change control decisions, what paperwork or electronic systems will be used to collect and respond to changes, and other related issues.
Part 2: Project Scope Management
Congratulations! You have been selected as the project manager for the Green Computing Research Project. The company’s CIO, Ben, is the project sponsor, and Ito is the program manager for the larger Environmental Technologies Program. Now you need to put together your project team and get to work on this high-visibility project. You will work with Ben to hand-pick your team. Ben had already worked with the HR department to advertise team openings internally and outside the company. Ben also used his personal contacts to let people know about this important project. In addition, you are encouraged to use outside consultants and other resources as appropriate. Initial estimates suggest that about $300,000 of the funds budgeted for this project will go to internal staffing, and the rest will go to outside sources. The main products you will create are a series of research reports—one for each green computing technology listed earlier and a final report that includes all data. You will also produce formal project proposals for at least four recommendations to implement some of these technologies. Ben suggested that the team should develop at least 20 different project ideas and then recommend the top four based on extensive analysis. Ben thought that some type of decision support model would make sense to help collect and analyze the project ideas. You are expected to tap into resources that are available from the Environmental Technologies Program, so you need to include some of those resources in your project budget. Ben mentioned that some research had already been done on increasing the use of telecommuting. Ben also showed you examples of what he considered good research reports. You notice that his examples are very professional, with plenty of charts and references; most are 20 to 30 pages and are single-spaced. Ben has also shown you examples of good formal project proposals for We Are Big, Inc. These proposals are quite detailed as well; they often reference other research and include a detailed business case.
Tasks
1. Document requirements for your project so far, including a requirements traceability matrix. Use the reqs_matrix.xls template provided on the companion Web site. Also include a list of questions you would like to ask the sponsor about the scope.
2. Develop a scope statement for the project using the template provided (scope_statement.doc). Be as specific as possible in describing product characteristics and deliverables. Make assumptions as needed, assuming you received answers to your questions in Task 1.
3. Develop a work breakdown structure (WBS) for the project. Break down the work to level 3 or level 4, as appropriate. Use the wbs.doc template on the companion Web site and samples in the text as guides. Print the WBS in list form as a Word file. Be sure to base your WBS on the project scope statement, stakeholder requirements, and other relevant information. Remember to include the work involved in selecting the rest of your project team and outside resources as well as coordinating with the Environmental Technologies Program. Use the project management process groups as level 2 WBS items or include project management as a level 2 WBS item to make sure you include work related to managing the project.
4. Use the WBS you developed in Task 3 to create a Gantt chart for the project in Microsoft Project 2013. Use the outline numbering feature to display the outline numbers. Click Tools on the menu bar, click Options, and then click Show outline number. Do not enter any durations or dependencies. Print the resulting Gantt chart on one page, and make sure to display the entire Task Name column.
Part 3: Project Time Management
As project manager, you are actively leading the Green Computing Research Project team in developing a schedule. You and Ben found three internal people and one new hire to fill the positions on the project team as follows:
• Matt is a senior technical specialist in the corporate IT department. He works in the building next to yours and Ben’s. He is an expert in collaboration technologies, and he volunteers in his community to help organize ways for residents to dispose of computers, printers, and cell phones.
• Teresa is a senior systems analyst in the IT department in a city 500 miles away from your office. She just finished an analysis of virtualization of server resources for her office, which has responsibility for the company’s data center.
• James is a senior consultant in the strategic research department in a city 1,000 miles away from your office. He has a great reputation as being a font of knowledge and excellent presenter. Although he is over 60, he has a lot of energy.
• Le is a new hire and former colleague of Ben’s. She was working in Malaysia, but she was planning to move to your location and begin work about four weeks after the project started. Le wrote her doctoral thesis on green computing.
While waiting for everyone to start working on your project, you talked to several people who were working on other projects in the Environmental Technologies Program and you did some research on green computing. You can use a fair amount of the work already done on telecommuting, and you have the name of a consulting firm to help with that part of your project, if needed. Ito and Ben both suggested that you get up to speed on available collaboration tools because much of your project work will be done virtually. They knew that Matt would be a tremendous asset for your team in that area. You have contacted other IT staff to get detailed information on your company’s needs and plans in other areas of green computing. You also found out about a big program meeting in England next month that you and one or two of your team members should attend. Recall that the Green Computing Research Project is expected to be completed in six months, and you and your four team members are assigned full-time to the project. Your project sponsor, Ben, has made it clear that delivering a good product is the most important goal, and he thinks you should have no problem meeting your schedule goal. He can authorize additional funds, if needed. You have decided to hire a part-time editor and consultant, Deb, to help your team produce the final reports and project proposals. You know Deb from a past job. Your team has agreed to add a one-week buffer at the end of the project to ensure that you finish on time or early.
Tasks
1. Review the WBS and Gantt chart you created for Tasks 3 and 4 in Part 2. Propose three to five additional activities you think are needed to help you estimate resources and durations. Write a one-page paper that describes these new activities.
2. Identify at least four milestones for this project. Write a one-page paper that describes each milestone using the SMART criteria.
3. Using the Gantt chart you created for Task 4 in Part 2, and the new activities and milestones you proposed in Tasks 1 and 2 above, estimate the task durations and enter dependencies as appropriate. Remember that your schedule goal for the project is six months. Print the Gantt chart and network diagram.
4. Write a one-page paper that summarizes how you would assign people to each activity. Include a table or matrix that lists the number of hours each person would work on each task. These resource assignments should make sense given the duration estimates made in Task 3.
5. Assume that your project team starts falling behind schedule. In several cases, it is difficult to find detailed information on some of the green computing technologies, especially financial data. You know that it is important to meet or beat the six-month schedule goal, but quality is the most important goal. Describe contingency strategies for making up lost time and avoiding schedule slips in the future.
Part 4: Project Cost Management
Your project sponsor has asked you and your team to refine the cost estimate for the project so that a solid cost baseline exists for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months or less for under $500,000. Initial estimates suggested that about $300,000 would be spent on internal labor. You mistakenly thought that travel costs would be included in that $300,000, but now you realize that travel is a separate cost item. The trip to England early in the project cost $6,000, which you had not expected.
Tasks
1. Prepare and print a one-page cost estimate for the project, similar to the one provided in Chapter 7. Use the WBS categories you created earlier, and be sure to document assumptions you make in preparing the cost estimate. Assume a burdened labor rate of $100/hour for yourself (the project manager), $90/hour for Teresa, James, and Le, and $80/hour for Matt. Assume about $200/hour for outsourced labor.
2. Using the cost estimate you created in Task 1, prepare a cost baseline by allocating the costs by WBS for each month of the project.
3. Assume that you have completed three months of the project and have actual data. The BAC was $500,000 for this six-month project. Also assume the following:
PV = $160,000
EV = $150,000
AC = $180,000
Using this information, write a short report that answers the following questions.
a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
b. Use the CPI to calculate the estimate at completion (EAC) for this project. Use the SPI to estimate how long it will take to finish this project. Sketch an earned value chart using the preceding information, including the EAC point. See Figure 7-5 as a guide. Write a paragraph that explains the information in the chart.
c. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Should you alert your sponsor or other senior management and ask for assistance?
4. Several tasks that involve getting inputs from consultants outside your own company have cost more and taken longer to complete than planned. You have talked to the consultants several times, but they say they are doing their best. You also underestimated travel costs for this project. Write a one-page paper that describes corrective action you could take to address these problems.
Part 5: Project Quality Management
The Green Computing Research Project team is working hard to ensure that its work meets expectations. The team has a detailed project scope statement and schedule, but as the project manager, you want to make sure that you’ll satisfy key stakeholders, especially Ben, the project sponsor, and Ito, the program manager. You have seen how tough Ito can be on project managers after listening to his critiques of other project managers at the monthly program review meeting. He was adamant about having solid research and financial analysis and liked to see people use technology to make quick what-if projections. You were impressed to see that several other project teams had developed computer models to help them perform sensitivity analysis and make important decisions. Most of the models were developed using Excel, which Ito preferred, and you were glad that you and Matt were experts in Excel. Ito was easy on you at your first monthly review because things were just getting started, but he did give you a list of items to report on next month. You had Ben at the review to help answer some of the tough questions, but you wanted to be able to hold your own at future monthly meetings.
Tasks
1. Develop a list of at least five quality standards or requirements related to meeting stakeholder expectations, especially Ben and Ito’s. Also provide a brief description of each standard or requirement. For example, a requirement might be related to the computer model, and might state that the computer model you create to analyze the 20 or more green technologies will be done in Excel 2010. Other standards or requirements might be related to the quality of the financial analysis and research you use.
2. Review the Seven Basic Tools of Quality. Pick one and create a scenario related to this project where the tool would be useful. Document the scenario and tool in a short paper.
3. Find a high-quality research report related to green computing. Summarize the report in a short paper that describes the high quality of the research.
Part 6: Project Human Resource Management
You are five weeks into the Green Computing Research Project, and the full-time team members are together for the first time. You, Ben, Matt, and Le all work in the same location, but Teresa and James are based out of town and do most of their work virtually. Le is also new to the company and has just moved to the United States. She is staying in a hotel and looking for a place to live. She’d like to buy her first home, but she wants to make sure it’s a good investment and somewhere she’d like to stay for at least five years. You get along well with your project sponsor, Ben, and Matt is a great resource, although he is extremely reserved. Le is also very quiet, and you quickly discover that she is an excellent researcher and writer, but she is not comfortable speaking in public. Teresa and James are much more talkative and are excited to be working on this project. However, James seems to be reluctant to use much technology to share ideas, and he enjoys face-to-face meetings and discussions. You have made preliminary agreements with two outside consultants to assist you with editing and the teleconferencing topic for your research. You have to prepare a monthly progress report and presentation for Ito, the program manager. You also have short meetings as needed with Ben, your sponsor, and you send him a weekly progress report.
Tasks
1. Before this first face-to-face meeting, you asked everyone to send a brief introductory e-mail, including links to their personal Web sites, LinkedIn sites, and other sites. You also asked everyone to take a short version of the Myers-Briggs Type Indicator (MBTI) online and share the results with the rest of the team. Take this test yourself at and research how different MBTI types respond to work environments, especially for research projects and with virtual teams. Summarize your findings in a short paper. Also document what you would write in an e-mail to introduce yourself, assuming you are the project manager for this project. Be creative in your response.
2. Prepare a responsibility assignment matrix in RACI chart format based on the WBS you created earlier and the information you have on project team members and other stakeholders. Use the template (ram.xls) and samples in the text. Document key assumptions you made in preparing the chart.
3. Because everyone will be in town for most of the week, you want to make sure they develop good working relationships. You also want everyone to work together efficiently. You asked Matt to review collaboration tools and recommend which ones the team should use for this project. As Matt starts demonstrating some of the tools, including webcams and wikis, you notice that a couple of team members seem uncomfortable, especially James. He thought that he would be in charge of certain aspects of the research reports, and was uncomfortable with the idea of other team members being able to change his work in a wiki. Le did not like the idea of using a web cam. She’d rather not have her face on video when communicating virtually. Discuss these human resource concerns and others that you think would be common in this situation. Include strategies for addressing these concerns as well.
Part 7: Project Communications Management
Several communications issues have arisen on the Green Computing Research Project in the three months since the project started. Your team had agreed to post all of its work on a shared site, but a couple of team members don’t seem to like using the site and prefer to use e-mails and attachments. When they do, other team members cannot easily see the work in one place or provide feedback using the wiki tools. It is also clear that some team members are better researchers and writers than others. When you have weekly conference calls with the webcams, at least a couple of team members don’t use the webcam and rely on the audio instead. You find that the meetings rarely end on time because some team members become very talkative. Also, you were grilled by Ito at the last monthly program review meeting. He thought you’d be much further along in the project by now and expects you to have a recommendation for a promising green computing project by next month. You haven’t seen any great ideas yet. You want to start having face-to-face meetings at least twice a month, but you know it would make your project go over budget even more. At least the Excel model is going well. You and Matt have put a good deal of time into developing it. If only you had enough good data to put into it.
Tasks
1. Write a short memo that describes some of the problems you are facing. You would like to discuss the problems with seasoned, objective project managers to get their advice.
2. Research the use of wikis and address the concerns that several team members have about using them, especially their fear of having others “mess up” their work. Document your findings in a short paper.
3. Write a short paper describing how you might approach two of the conflicts described above.
Part 8: Project Risk Management
Because several problems have occurred on the Green Computing Research Project, as described in the previous section, you decide to be more proactive in managing risks. You also want to address positive and negative risks.
Tasks
1. Create a risk register for the project using the risk_register.xls template. Identify six potential risks, including at least two positive risks.
2. Plot the six risks on a probability/impact matrix using the prob_impact_matrix.ppt template. Print the matrix. Assign a numeric value for the probability of each risk occurring and its impact on meeting the main project objectives. Use a scale of 1 to 10 to assign the values, with 10 being the highest. For a simple risk factor calculation, multiply the probability score by the impact score. Document the results in a one-page paper; include your rationale for how you determined the scores for one of the negative risks and one of the positive risks.
3. Develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register and then print the complete risk register. Also, write a one-page paper describing the specific tasks needed to implement these two strategies. Include time and cost estimates for each strategy.
Part 9: Project Procurement Management
After a monthly program management review meeting four months into your project, Ito and Ben approved another $100,000 and an additional month to complete the work. You provided a strong rationale to justify additional travel funds and more money for outside consultants to help you find good research information. You decided to have James return to his old job because he didn’t seem open to sharing ideas with others. It would be best to have one of the participating consulting firms do the work that James was assigned to do, even though the cost would be greater. The lead consultant, Anne, has done a great analysis of improving overall energy efficiency for the company; her ideas could save millions of dollars each year. Ben, your project sponsor, was disappointed that you couldn’t meet the original time and cost goals, but he wants to make sure that the final results are of high quality.
Tasks
1. Draft a contract to have Anne’s consulting firm perform the work that James was supposed to do for this project. Assume that the contract would last for three months and that Anne would be working about half-time, earning $200/ hour. She would also have other consultants do up to 100 hours of work at $150/hour. They would do most of the work virtually, but Anne would come to town at least once a month for face-to-face meetings. Limit the contract to two or three pages, and be sure to address specific personnel and travel requirements. Also make sure that all work produced is owned and copy righted by your company exclusively.
2. Deb, the editor you hired for this project, has asked for your assistance in organizing the final comprehensive research report. Draft a one-page executive summary and a table of contents for the report.
3. Prepare a lessons-learned report for what you have learned so far as the manager of this project. Use the template provided on the companion Web site (lessons_learned_report.doc); be creative in your response. Although this is not really a procurement task, it is provided here for convenience.
Part 10: Project Stakeholder Management
Review what has happened so far in this case, especially the information from Part 7: Project Communications Management. Assume that the project is still in its early stages, and that you just presented information in the first monthly program review. Ito was upset about the lack of progress, and he told Ben, your project sponsor.
Tasks
1. Prepare a power/interest grid for stakeholders on this project.
2. Prepare part of a stakeholder management plan for the project, focusing on how you could develop and improve relationships with key stakeholders.
3. Create an issue log for the project using the template provided (issue_log.doc). List at least four issues and related information based on the scenario presented and information from the Communications section.
ADDITIONAL CASE 3: REAL PROJECTS1
Note: My personal preference is to use real projects as part of a project management class. It helps students gain real-world experience and practice working with a “real” sponsor and other stakeholders. Projects often produce very useful results for the college, non-profit organizations, businesses, or the students themselves. The information below is based on my personal experience and syllabi instructions for having students work on real projects in a team setting. I give students the option of doing another case study, but the vast majority of students choose to work on a real project.
An important part of coming up with good project ideas is the following required homework assignment, due very early in the course. Each student must do the homework, so as long as you get about one good idea out of every four, you should have enough real projects to work on. I often propose additional project ideas, mostly from suggestions from colleagues or former students.
Individual Homework: Project Proposal (100 points)
Here’s your chance to get some useful work done! Each student will propose a project to be done as part of this class, and hopefully we will do several of them. Even if you want to do a case study instead of a real project, you must still propose a real project. Projects must have a sponsor (can be a student, friend, relative, boss, community leader, etc.), provide a needed service or product, and be a good fit for this class. Each student normally spends between 20-40 hours on the class project. Review my Web site and look at some of the past student projects and the information in the syllabus about the projects. Then write a proposal for a potential project, using the potential project template. Talk to the sponsor before writing the proposal, and try to come up with a good proposal! Think about projects at work, for community groups, etc. that you could do. If you do not do a real project, you will work on a case study. You still need to propose a real project, though, to get experience doing that!
It is also important to explain how grades will be determined for these team projects. Below is another individual homework assignment that allows each student to provide inputs on his/her own team project grade and the grade of each team member. They do this assignment for both the real projects and case studies, and it is due the last day of class.
Individual Homework: Self-Assessment (100 points)
Write a 1-2-page self-assessment based on the team project, answering the following questions:
• If you had to give your team a grade for the project, what would it be? Why?
• What were your roles and responsibilities on the group project? How well do you think you performed on this project?
• Briefly assess each team member’s performance. If you had to give each person, including yourself, a grade, what would it be and why? To compare individual contributions, if you had 100 points to allocate to your team, how would you allocate them? If you’re an Apprentice fan, what would be the order you would use to fire people from your team?
Syllabus Description of Team Projects
The purpose of the team project is to use a structured approach to project management in a team setting (3-5 students/team). I normally let teams self-select and assign people to teams as needed. One person could take the lead on each task, but other team members should provide inputs and edit the work so it is consistent and of high quality and reflects a team effort. Each team member should plan to spend 20-40 hours total on the team project, including some time in class. If the project is done for someone outside of Augsburg, students can earn the Augsburg Experience credit. You must have the sponsor call or email me to approve the project after you propose it if you really want to work on it. If you do not choose to work on a real project, teams will work on one of the case studies in the text (New Business Venture or Fixer Upper). You can substitute a different business idea for the new business venture case study, if you like, with my approval.
Examples of “real” class projects: One example of a past project called the Tempting Templates Project Web Site (which I sponsored, and which was all done virtually) is available on my personal Web site () under PM Info. I will show some other student project sites in class. Most of them were done as Google sites starting in 2011. Other examples of recent class projects include the following:
• Organizing and running a fundraising event, like the Hockey Team Fights Cancer project (raised over $5,000 last fall), a benefit for someone with a disease, a game night at Grand Slam, a 5K race for the Make a Wish foundation, or making baby blankets for hurricane victims
• Creating/updating a Web site or smart phone/table app for a small business or non-profit organization
• Helping a new store market its products to college students (i.e., Punch Pizza, Edible Arrangements)
• Organizing and running a shark tank type of event to help promote entrepreneurship (Note: We did this twice at Augsburg College with great interest and success.)
• Redesigning/renovating one or more rooms of someone's home or rental property
Team Progress Reports:
If you are working on a case study, I’ll provide instructions on which tasks you should have completed by the progress report dates and which ones to present. In general, you should have the initiating tasks done for the first progress report and the planning tasks and some of the executing tasks done for the second one. Below are instructions for what is needed for progress reports for the “real” projects. I will review some of this information before you present as part of an online assignment. I also want to communicate directly with your project sponsor and have access to your team’s web site at least a week before your first progress report.
Progress Report 1: Assume you, the project manager, are giving a formal progress report to senior managers. You will present and review highlights of the following information:
• a brief introduction of your project and your team, emphasizing why you are doing the project, what your main deliverables will be, and how you will measure success
• a one-page progress report (using the template called performance report)
• a project charter (using template), signed by all stakeholders, including your sponsor (an email confirmation is okay in place of a signature for now)
• a summary of communications so far with your project sponsor and instructor (emails or documented meeting minutes)
• a preliminary scope statement (using template. Note: Describe each product-oriented deliverable using at least two complete sentences)
• a team contract, emphasizing the communications section (using template)
• a draft schedule (using the template in Moodle for this class. I will be most interested in what you have under Executing and your total estimated hours by person. I know this is a rough estimate, but do the best you can for now. Your team can update actual hours using Google docs or other means)
• a brief summary of your team’s MBTI types and how they might affect your team dynamics
Be sure all of your documents and your presentation are on your team’s web site, and also provide me with a hard copy of them all before you present. Put key information from each document in a presentation and make sure it is easy to read. For example, you can paste the information from all of these documents into PowerPoint slides. You can also pull up some of the documents and zoom in so they are easier to read, like the draft schedule. Make sure you have consistent information in each document. For example, if you say in your project charter under the approach that you will prepare a flyer for your project, describe that flyer in more detail as a deliverable in the scope statement and include it in the executing section of the draft schedule. It would probably fall under a summary category called marketing. I will provide written and verbal feedback during the presentation, just as a program manager would.
Progress Report 2: Assume you, a team member, are giving a formal progress report to senior managers. You will present and review highlights of the following information:
• a one-page progress report (using the template called performance report. Be sure to focus on work completed since the first progress report)
• an updated scope statement, including more detailed descriptions of key deliverables
• a Gantt chart created in Microsoft Project, based on the draft schedule you created. Be sure to include your detailed WBS under executing, and list at least 4 milestones under executing. Note: You can create the Gantt chart in Basecamp or MindView or other software, if you prefer.
• a probability/impact matrix, including at least 10 potential risks for your project. For at least three of them (most important ones), describe your strategy for managing them
• a summary/sample of completed deliverables under executing
• a comparison and explanation of estimated versus actual hours to date (show your updated draft schedule)
• feedback from your sponsor since the last progress report. I also want your sponsors to email or call me to verify their involvement at least three days before you present the second progress report
Final Project Presentations and Notebooks
By the last day of class, each team will present a final project presentation and hand in a project notebook (stapled pages or soft cover; no spiral notebooks, please). Assume you are giving a presentation to senior managers and potential employers. If you do a case study, put all of that information together in a notebook. If you do a real project, include the following information. All documentation should also be available on the team’s web site. Note: Each team member must give part of the 20-30 minute final presentation.
1. Cover page and detailed table of contents. List the project name, team members, and date on the cover page of the notebook. Be sure to number all pages (by hand is fine), which should match the table of contents. You may include tabs or dividers between major sections of the notebook, too.
2. A double-spaced 3-4-page project report. Address the following questions in your report, which should be in the front of your notebook after the table of contents: What did your team produce? Was the project a success or not, and what was your criteria for determining success? (Remember that should be defined in your scope statement early in the project). What project management tools/documents did you use, and did they help? How close was your draft schedule and estimate of hours to the actual schedule and actual hours worked on the project? What went right on the project? What went wrong? What did your team learn by working on this project? How did you select the project manager? Did he/she do a good job at leading your team? Did you work well as a team? What was your project sponsor’s final assessment of the project? Include some written feedback from the sponsor in your final report and presentation. See the sample customer acceptance form in your text for an example. Discuss this information in your final project presentation and show/summarize the main products produced. If your project involves some type of event, be sure to show pictures of the event.
3. Hard copies of all of the products your team produced. Include the project management documents you created (charter, Gantt chart, etc.), communications with your sponsor, and all product-related items.
Note: Part of the grade for the team project will be based on the team’s final presentation and progress reports, and part of grade will be based on the quality of the project and its notebook (one notebook per team, due the last day of class). You should also include a project completion form or some method of evaluation for real projects. I will look at the final homework where everyone suggests grades as well. Team project managers will earn a small amount of extra credit for successfully leading their project teams.
This case should be interesting to anyone interested in starting a new business. It involves research, marketing, finance, technology, and personal ethics. Feel free to change the type of business, if desired. The main purpose of this and other cases, however, is to help you practice some of the project management skills you are developing as part of your course. Note: If students want to propose a different business idea, let them! You can still use many of the tasks listed below, but modified as needed.
ADDITIONAL CASE 4: NEW BUSINESS VENTURE2
Part 1: Initiating
Background Scenario:
You and several of your friends have been working for corporations for over five years, but several of you have a desire to start your own business. You have decided that you are ready to pursue your idea of starting a music academy for children ages 3-16. You all enjoy creating music, and you saw the advantages that some children had from participating in special music programs beyond those available in schools. In particular, you see the need for music training in your area for children interested in voice, guitar, keyboard, and percussion so they can perform in their own bands.
This New Business Venture Project would primarily involve you and three of your friends, who were all part of your high school band:
1. You are an excellent bass player, and you were the one who organized your band in high school and got the few paid gigs that you had. You can also play keyboard. You continue to play both instruments occasionally, but your full-time job and new spouse take up a lot of your time. Your current full-time job is working as a business analyst for a large retail store. Although your job is going well, you realize that you would be happier working in your own business and with something involving music. Your strengths are your creativity, organization, and analytical skills. Your spouse is employed full-time and supports your idea to start your own business, as long as you have a detailed plan and financial backing.
2. Brian, one of your best friends since sixth grade, played lead guitar in your band. He is a natural musician and has little trouble learning to play very complicated songs. Brian is very quiet, but he would love to work for a successful small business and be able to share his passion for guitar with children. He is also a whiz at music technology, having recorded and edited CDs for several years. He works as a software developer for a large consulting firm. He is married and has one young child, and his spouse works part-time. Brian would not give up his full-time job until he knew he could support his family in this new business venture, but he could do a lot of part-time work.
3. Nicole, also one of your best friends since sixth grade, was the lead singer in your band. She has a great voice and really knows how to work a crowd, too. She is currently working as a part-time telemarketer, but she doesn’t like her job at all and is ready for something new. Her spouse has a great job and supports her in pursuing a new business opportunity. Her strengths are her vocal talent, professional voice training, and sales ability. She also loves working with children and would be willing to work full-time on this new business venture.
4. Andres was the last person to join your band in high school, having replaced your original drummer. He currently works as a music teacher at a local middle school. He has a lot of contacts with local schools and is dying to get this new music academy started. He is single and would want to keep his current job, but he could devote a fair amount of time to the business in the evenings, on weekends, and full-time in the summer. His strengths are his drumming expertise, teaching ability, music technology experience, and contacts with school-age children, parents, and school administrators. He currently gives some private lessons and knows other people who do as well, so he has potential clients and instructors that he could bring into the business.
The main goals of the New Business Venture Project are to prepare a business plan, get financial backing, handle legal issues, develop marketing materials, find a rental space for the music academy, purchase/develop curriculum, hire staff, and open for business by one year from now, September 1, to coincide with the school year. Your team has already analyzed the market, and you know you can make this business succeed. Your goal would be to cover your investment costs after two years in business.
Work with your teammates and instructor to perform all or just some of the following initiating tasks for this project.
Tasks
1. To become more familiar with the children’s music instruction market, do some preliminary research to find out how big this market is, who the main companies are in the market, what the best-selling services are, pricing and marketing strategies, etc. If you do not want to focus on your own geographic area, pick one to focus on for this and future tasks. Write a two- to three-page paper (double-spaced) with your findings, citing at least two references. For example, the author’s son took lessons and performed in rock bands from Virtuosos Music Academy in Plymouth, Minnesota (). You can also include a paragraph or two with your team’s personal experience in this area, if applicable.
2. Prepare a stakeholder register and management strategy for the project. Include all project team members and make up names and information for at least one spouse, one potential financial backer, and one local competitor. Assume that you and your three friends are all team members, and you each invest $10,000 into the business. Your mother, a retired business professor, has decided to provide a substantial loan ($30,000), so she will be the sponsor. You still need to figure out how to get an additional $30,000 for the first-year start-up costs. Use the templates provided on the companion Web site, and review the sample stakeholder register and management strategy in the text.
3. Prepare a team contract for this project. Use the template provided on the companion Web site, and review the sample in the text.
4. Prepare a project charter for the New Business Venture Project. Assume the project will take one year to complete and cost about $100,000. Recall that the main project objectives are to prepare a business plan, get financial backing, handle legal issues, develop marketing materials, find a rental place for the music academy, purchase/develop curriculum, hire staff, and open for business by one year from now. Your project team will not get paid for the hours they put into this project, but once the business opens, they will be compensated. You will incorporate the business and hire a lawyer to help with this and other legal issues. Use the template provided on the companion Web site, and review the sample in the text.
5. An important part of starting any business is preparing financial projections. Although you will prepare a more detailed financial analysis when you create your business plan, you still want to do rough projections at this stage. Prepare a spreadsheet that can be used to determine the profit potential of starting this business. Include inputs for the initial investment cost, number of customers in the first month, customer growth rate/quarter, average monthly fee per customer, fixed and variable monthly operating costs, and variable costs per customer. Use the most likely, optimistic, and pessimistic inputs as shown in Figure C-2 to generate results for all three scenarios. For each month (Month 1-24), calculate your revenues (number of customers that month X monthly fee/customer) and expenses (fixed monthly salaries plus fixed monthly operative costs plus variable costs/customer/month X number of customers that month). Then determine the cumulative income each month. For example, the cumulative income in Month 1 is the Monthly Revenues - Monthly Expenses for Month 1. The cumulative income for Month 2 is the Monthly Revenues - Monthly Expenses for Month 2 plus the Cumulative Income for Month 1. The first month for the most likely scenario is filled in for you to check your formulas. Will you be able to recoup your start-up costs within two years in each scenario? If so, in what month? There is no template for this example, but you can use the format in Figure C-2. Print out a sheet with results for each scenario, clearly labeling if/when you recoup your investment.
[pic]
Figure C-2. Financial Projections Format
6. Prepare a 10–15 minute presentation that you would give to summarize results from the initiating phase of the project. Assume the presentation is for a management review to decide if the project should move on to the next phase.
Part 2: Planning
Work with your teammates and instructor to perform all or just some of the following planning tasks for this project.
Tasks
1. Develop a requirements traceability matrix and a scope statement for the project. Use the templates provided on the companion Web site, and review the samples in the text. Remember that the main project goals are to prepare a business plan, get financial backing, handle legal issues, develop marketing materials, find a rental space for the music academy, purchase/develop curriculum, and hire staff so you can open for business by one year from now. Be as specific as possible in describing product characteristics and requirements, as well as key deliverables. For example, assume that you need to rent a space for your business that is in a desirable part of town near other businesses and schools, has enough room for a reception area, technology lab with five computers, two larger band rooms that have soundproofing or can be sound proofed, and five small rooms for private lessons.
2. Develop a work breakdown structure (WBS) for the project. Break down the work to what you think is an appropriate level. Use the template provided on the companion Web site, and review the samples in the text. Print the WBS in list form as a Word file. Be sure the WBS is based on the project charter, scope statement, and other relevant information.
3. Create a milestone list for this project, and include at least 10 milestones and estimated completion dates for them.
4. Use the WBS and milestone list you developed in numbers 2 and 3 above to create a Gantt chart and network diagram in Project 2013 for the project. Estimate task durations and enter dependencies, as appropriate. Remember that your scheduled goal for the project is one year. Print the Gantt chart and network diagram.
5. Develop a cost estimate for developing just the technology lab for your music academy. Assume that you will purchase five personal computers that can connect to the Internet and run several popular music creation and editing programs. Include the costs of the desks, chairs, microphones, keyboards, soundproofing the room, set-up, testing, etc.
6. Create a quality checklist for ensuring that the business is ready to open its doors. Also define at least two quality metrics for the project. Use the templates and samples provided.
7. Create a RACI chart for the main tasks and deliverables for the project. Use the template and sample provided.
8. Develop a communications management plan for the project. Use the template and sample provided.
9. Create a probability/impact matrix and list of prioritized risks for the project. Include at least 10 risks. Use the template and sample provided.
10. Prepare a request for proposal for the technology lab (including purchasing the hardware, software, installation, soundproofing, testing, and maintenance) for your music academy and describe at least two procurement issues you need to consider for the project.
11. Prepare a 10–15 minute presentation that you would give to summarize results from the planning phase of the project. Assume the presentation is for a management review to decide if the project should move on to the next phase.
Part 3: Executing
Remember that the main project goals are to prepare a business plan, get financial backing, handle legal issues, develop marketing materials, find a rental space for the music academy, purchase/develop curriculum, and hire staff so you can open for business by one year from now.
Work with your teammates and instructor to perform all or just some of the following executing tasks for this project.
Tasks
1. Write a business plan for this project. Review sample business plans. For example, , , and Microsoft Office online (select File, New, Microsoft Online, Plans from within Microsoft Word) provide templates and/or guidelines for preparing business plans. Decide on a name for this business, as well. Include, at a minimum, the following sections in a five- to eight-page paper:
• Executive Summary
• Company Description
• Products and Services
• Marketing Plan
• Operational Plan
• Management Summary
• Financial Plan
2. Research options for getting small business loans. For example, most governments have a small business administration office that offers loans or loan information. (See for U.S. information.) Several colleges provide loans to alumni. You can also go to banks and credit card companies for funds. Develop a list of at least five different, realistic options for getting financial backing for your new business. Recall that you estimate that you will need $100,000 the first year alone, and you are still short $30,000. Include the source of the funds, interest rates, payment arrangements, etc. Document your results in a two- to three-page paper, including a recommendation on which option to pursue.
3. Create a one-page flier for your new business, a home page for a Web site, and a tri-fold brochure listing key services/courses of the business, and any other marketing materials you think you would need for your business.
4. Research options for a rental space for the music academy. Develop at least five alternative sites. Include a picture of the site, if available, square footage, cost, pros and cons, etc. Document the results and make a recommendation for which site to select in a three- to four-page paper.
5. Assume that you decide to have students sign up for weekly individual instruction on a term basis. You will offer a fall, spring, and two summer terms consisting of 12 hours of instruction in each. Half of the hour will be one-on-one with an instructor, and the other half will be in the music technology lab. You will also have several rock band courses with three to five students each that will meet weekly for six weeks, followed by a performance. Research where to purchase curriculum or what is involved in developing it, if needed, for the following courses:
• Basic, intermediate, and advanced keyboard
• Basic, intermediate, and advanced bass
• Basic, intermediate, and advanced guitar
• Basic, intermediate, and advanced percussion/drums
• Basic, intermediate, and advanced voice
• Basic, intermediate, and advanced rock band
6. Include a one-page curriculum sheet for each course and a one-page schedule for all of the courses, including times for performances for the rock band. Also include a performance each term for students taking the individual lessons.
7. Create a plan for hiring staff for your new business. Assume that you will work full-time as the main manager, providing some front-desk coverage, giving some lessons, and managing most of the business. Assume that Nicole will also work full-time, heading up the vocal lessons area, marketing, and providing some front-desk coverage. Brian will lead the music technology lab development, outsourcing a fair amount of the work. He will also teach some of the rock band ensembles in the evenings or on weekends. Andres will help with marketing and give percussion instructions as his schedule allows. You will also need to hire a part-time receptionist to always have front-desk and phone coverage. You also need to hire several part-time instructors for all of the classes provided. Include job descriptions for all of the positions, salary/pay information, and a work schedule. Document your results in a four- to six-page paper.
8. Assume that the following has occurred since the project started: As usual, you ended up taking lead of this team, but you’re starting to get burned out. You are four months into the project. You are still working your full-time job, and your spouse has been complaining that you work too much and aren’t delegating enough. Nicole quit her telemarketing job to focus on this new business, and she is getting nervous about the business actually opening. Andres promised to get a big list of potential students and instructors to you for the past two months, but he still hasn’t delivered it. Brian thinks that he can set up the whole music technology lab instead of outsourcing it, as you planned. Write a two- to three-page paper describing how you would handle these challenges.
Part 4: Monitoring and Controlling
Background Scenario:
You are six months into the project. You completed the business plan and most of the marketing materials. You had planned to have the location for your business selected and additional start-up funds by now, but you are behind schedule. Brian and Nicole seem to disagree on a lot of key decisions, especially the location. Your mother calls at least three times a week asking how things are going. You are happy that she lives 500 miles away, but you know that she needs assurance that the business will actually open. Andres is in charge of purchasing/developing the curriculum, but he has had very little time to work on it since school is in session. You want him to focus on creating a list of potential students and instructors, so you might hire someone else to help with the curriculum.
Work with your teammates and instructor to perform all or just some of the following monitoring and controlling tasks for this project.
Tasks
1. Create a new Gantt chart based on the revised information above, if needed. Briefly describe other plans you have created so far that you think you should update in a one- to two-page paper.
2. Prepare an agenda for a team meeting to discuss several of the issues you are facing. You definitely want to decide on the location at this meeting, since it is down to two and you have to decide soon. Also write a one- to two-page paper summarizing how you will approach particular people during the meeting.
3. Prepare a 10–15 slide presentation to give to potential funders for your business. Use information from your business plan.
4. Write a two- to three-page statement of work to hire someone to help you purchase/develop the curriculum. Use the template and sample provided.
5. Review the Seven Basic Tools of Quality. Based on the current project scenario, pick one of these tools and create a chart/diagram to help you solve problems you are facing. Use the templates and samples provided.
6. Update your list of prioritized risks. Create a risk register entry for two of them. Use the template and sample provided.
Part 5: Closing
Background Scenario:
It is one month before you plan to open your new business. You just got into your leased building, and you are busy starting to get it ready to open. You have hired a small construction firm to put in a few walls, do some painting, etc. You also got a lot of help from family and friends. You quit your job, and Nicole is also working every day now on the new business. She did a great job at marketing, and you are getting calls and e-mails from your new Web site every day. Brian’s friend, Tom, built the site for you at no charge after Brian said he could come in and use the technology lab when it wasn’t busy. Eric, the person you hired to help with the curriculum, was a fantastic resource, even though it cost you $10,000 you had not planned on spending. He did help you expand your list of potential students and instructors, as well, since he knew the local market very well. You did meet your schedule goal, but you had to borrow another $10,000 from your mom. She is only charging you 5% interest, starting when your doors open. She is happy with the results and has already booked a flight to visit for your grand opening celebration, where you and your team will be performing. Your mom loves to cook and bake, so she volunteered to handle the food for the opening.
Work with your teammates and instructor to perform all or just some of the following closing tasks for this project.
Tasks
1. You have scheduled a final project presentation two days before your grand opening. Prepare a 10–15 slide presentation to summarize the results of the project. Describe the initial project goals, planned versus actual scope, time, and cost information, challenges faced, and key products produced.
2. Prepare a lessons-learned report for the entire project. Include input from all stakeholders in summarizing the lessons learned. Use the template and sample provided, and be creative in your response.
3. Prepare a final project report, using information from your final project presentation and the template provided. Be sure to include all of the documents you have prepared as appendices.
4. Document your own list of best practices that you think helped or could have helped you on this project in a two- to three-page paper.
ENDNOTES
1Kathy Schwalbe, An Introduction to Project Management, Fifth Edition, Schwalbe Publishing (2015).
2Ibid.
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