Pm610 1103 b-02-schwappach-loren-p5-gp5


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Pm610 1103 b-02-schwappach-loren-p5-gp5

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  2. 2. Developing the project charter is the first objective to moving forward with IRTCManufacturing Enterprises Legacy system upgrade. Receiving a signature on thecharter from the project sponsor indicates that the reason for the project areacceptable and align with the Enterprise goals and strategic objectives, the formallyauthorized project documents the first requirements that appease the stakeholdersneeds and expectations, according to PMBOK, 2008, the latter justify and authorizethe project as acceptable to proceed. The purpose and defense of this projectaccording to (PM610 course materials 2011), meet the demands of our client base,including, reducing the number of days for outstanding accounts receivables. Inaddition to, improving Today’s customers way to view his or her accounts on line inreal time, and communicating with the Enterprise in real time to resolve billing issuesefficiently, and afford the customer the ability to ask questions online. The results ofthe Legacy system upgrade through a (strength, weakness, opportunity, and threat)SWOT analysis shows the upgrade will lower the operating cost of IRTC via this Webbased technology, improve customer satisfaction by providing customers the optionsto pay on line, and the creation of several new positions designed to give IRTC aleading edge in the market place. 2
  3. 3. The project sponsors in this endeavor for IRTC Manufacturing Enterprises upgrade areheld responsible for providing the financial support in currency, or in kind, forinstance, for example, providing behind the line assistance to project stakeholdersinternal and external to the organization. According to Kerzner 2009, projectmanagers and line managers are the same in light of a project. Therefore, whenleadership is required to keep the project moving via advice or council the projectsponsor provide motivation to the line managers and project manager to ensure eachkeep his or her promise. When the Chief operating officer, director of billing , orcustomer service director perform in the ladder capacity they take on the role ofproject sponsor. According to Kerzner 2009, a project is capable of succeedingwithout the commitment of a project sponsor “as long as work flows smoothly”Kerzner, 2009 p. 19. However, in events of a crisis a project sponsor is the necessarytool to keep the project flowing efficiently. 3
  4. 4. The need for improved quality according to Kerzner, 2009 surfaced prior therecession of 1982. In other words management processes were deemed as poor afterthe ladder event. According to Kerzner, 2009 the recession prior to the years 1984through 1994, management in high technology organizations never understood theneed to shortening a product development time and the contrast between projectmanagement. The drive for faster product development, quality products, minimumdefects and rejections and lower contractor profits are all customer driven. Some ofthe things that can negatively impact the external customer includes: Salabilityaccording to Kerzner, 2009, salability indicates the balance between quality and cost,and produceability according to Kerzner, 2009 produceability translates to the abilityto produce goods with available technology and labor, at a reasonable price. IRTC’sresponsibility is to develop a Web based Legacy system upgrade that will function andmeet the customer needs at a low cost and high technology level. 4
  5. 5. The change management plan describes the formal process of “documentedprocedures that defines how project deliverables are documented and will becontrolled, changed, and approved” PMBOK, 2008 p. 428. the communicationsmanagement plan “communicates the needs and expectations for the project”PMBOK, 2008 p. 429. the communications plan also depicts how and what formatinformation is presented to stakeholders, when and where the communications willtake place, and who is responsible for each type of communications. The costmanagement plan according to PMBOK, 2009 this document outlines the establishedactivities, criteria, planning, structuring, and controlling the project costs. Costperformance baseline is a timed phased budget according to PMBOK 2009, used as acomparison tool for actual expenditures to planned expenditures. Human resourceplan according to PMBOK, 2009, documents how roles and responsibilities, reportingrelationships, and staffing management is handled in the project structure. 5
  6. 6. Procurement management plan according to PMBOK, 2009, identify howprocurement processes from the inception through the contract closure is managed.Risk management plan according to PMBOK, 2009, outlines how project riskmanagement is structured and managed on the project, even though the causes ofrisk varies, which cause the project manager to place risks in multilple categories.Scope management plan: this document according to PMBOK, 2009, identify how theproject scope is defined, developed and verified. The scope management plan alsoidentify how the work breakdown structure is created and defined, which determineshow the project scope is managed and controlled by the project management team.The scheduled management plan according to PMBOK, 2009, lays out the guidelinesfor activities and governing the project schedule 6
  7. 7. To ensure that the customer receive a product that is delivered and accepted by thecustomer the knowledge areas of project management must prevail. Therefore, in theenvironment of project management combining the characteristics of unification,consolidating tasks, clarification and articulation of tasks, and integrative actionsaccording to PMBOK, 2009 are key to project management and successfully managingthe stakeholders expectations, and delivering the project on time within budget, anddelivery that is acceptable to the customer. In the end the benefits to using a projectmanagement plan covers a document that formally authorize the project, followed bythe benefits to using the project plan including documenting the actions necessarycommunicate all subsidiary plans. Directing and managing the project execution,monitoring and controlling the project tasks, performing integrated change control inthe event a change request is requested by following the organization’s methodology,and finalizing the project or phase. 7
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  9. 9. The scope statement is an documented understanding between the customer, theproject team, the sponsor, and all high level stakeholders. The scope specifies a basisunderstanding of the project for the purpose of bringing about communicationsamong stakeholders and for placing authorities and regulations for the projectmanagement team. The scope statement incorporates the project to the businessobjectives and goals, and clarify the parameters of the project to the degree to whichit extends including any of the fundamental units on which the project is based; Also:approach, deliverables, milestones, and budget. “The scope statement is asummation of all deliverables required as part of the project. This includes allproducts, services, and results” (PMBOK, 2008 p. 426). 9
  10. 10. Executive summary: “Your company, IRTC Manufacturing Enterprises, is upgrading itslegacy billing system. The system was installed originally ten years ago” (Coursematerials PM610). To meet the objective of the IRTC strategic business goalsincluding lowering the operating cost of the daily activities, improve customersatisfaction, and reduce the number of days for outstanding accounts receivable,“IRTC will be doing a major upgrade for the new web-based version of the system.The time frame for the upgrade is predicted to take 16 through 20 weeks. The finishproduct will bring about many changes to the existing business processes, includingchanges to current jobs, and the formation of new job positions. Business objective:reduce costs, improve customer satisfaction, and reduce the number of days foroutstanding accounts receivables. Project description: This is an integrated web-bases version of the system, in addition to the mainframe legacy system update.Deliverables include: customers ability to access his or her bill on-line and accessing acustomer service agent on line as needed. 10
  11. 11. Project approach via Risk assessment: The following high level risks have beenidentified during the preliminary risk assessment by the IRTC steering committee.“The person with the most experience on the package and current training/documentation will not be available to the project due to other projects” PM610Course Materials, Planning, Execution, and Closure 2011; The project duration isestimated at more than 20 weeks; The number of departments the upgrade willaffect is more than three; The project staff is slated by over 90% contractors and /orcontractors commitment is not expected prior to start of project. Constraints: Thereare many processes, standards, guidelines, laws etc. required by the Federal & Stategovernment which the company must adhere to once known. 11
  12. 12. IRTC Manufacturing Enterprises is issuing a request for proposal (RFP) for the design,development, and implementation of the new web-based database system upgrade.The goal of the upgrade is to implement new work solutions for the internal endusers and integrate technology that will meet the demands of the clients for thisproject. The vendor selected will have the responsibility of building, designing,testing, and integrating the system into IRTC business processes. The followingpersonnel and team resources are required to ensure that the objectives arecompleted: Project manager; Business analysis; Technical architects; Programmers ortesters and Instructional designers. 12
  13. 13. The personnel listed above are required to complete this project. The projectmanager provides oversight to the project. Including accountability for establishingthe project charter, developing and managing the work plan, securing appropriateresources and delegating the work and ensuring successful completion of the projecton schedule, and within budget. All team members report to the project manager forwork packages. The project manager handle all administrative duties, interface withthe project sponsors and owners and have overall accountability for the project. Thebusiness will communicate the business processes to the technical architect so theprogrammer or tester can proceed with the design of the new web based system. Theinstructional designer will provide the training needs for the end users. The IRTCsupport staff will serve as support to the contractors via clarifying business processes. 13
  14. 14. The project sponsor provides executive team approval and sponsorship for theproject. The project sponsor has budget ownership for the project and is a majorstakeholder in the project. The project owner provides policy definition to theproject team, resolves all policy issues with the proper policy owners in order toprovide clear and concise definition. Makes final decisions and resolve conflict orissues concerning the project. Steering committee: provides assistance to the projectmanager in resolving issues that arise beyond the project managers jurisdiction.Monitors project progress and provides necessary tools and support when milestonesare in jeopardy. The working team member analyze, designs, and overall improves orreplaces the business processes, and communicate the best practices for businessprocesses, and identifying the organizations impact areas. Project manager: All teammembers report to the project manager. 14
  15. 15. The check points and milestones will receive close monitoring on a weekly basis bythe project manager and project owner to ensure vendor has successfully completedthe work packages planned for the week. The steering committee meetings arescheduled weekly this schedule may change as the work progress. The projectmanager will provide monthly written status reports to the project owner on amonthly basis and distribute the project team meetings minuets. IRTC and theselected vendor will schedule periodic meetings and review to ensure the projectrisks and associated mitigation actions are monitored and controlled in accordancewith the risk management plan. Issue management: Project related issues aretracked, prioritized, assigned, resolved, and communicated as outlined in the projectmanagement procedures. Change management: The control procedures will followthe outlines of the change control board to ensure that a change is necessary, overallavoiding scope creep and project rebaselining. Communications management: Theproject owner will receive notification via email or in person on all urgent issues.Issue notifications will include time constraints, and impacts, which will identify theneed and urgency for service. 15
  16. 16. The project sponsor and project manager approve the scope statement. Projectchanges are approved by the project sponsor. Project deliverables are approved andaccepted by the project sponsor, project manager, and the key stakeholders. Thepurpose of this approval process is to ensure that the objectives of the organizationare followed through. Failure to place the previous constraints in place most oftenleads to a customer who is not satisfied with the deliverables because of thepotential of rebaselining the project, which ultimately push the finish date back andincrease the cost of the project. 16
  17. 17. The purpose of this document is to provide a vehicle for documenting the initialplanning efforts for the project. It is used to meet a satisfactory level of agreementbetween the project manager and the project sponsors on the objectives and scopeof the project before significant resources are committed and expenses incurred.“The signature of the people above relay an understanding in the purpose andcontent of this document by those signing it. By signing this document you agree tothis as the formal Project Scope Statement” Paul A. Sevigny 11/28/2007. In the endthe scope statement addresses seven questions according to Kerzner 2008, asfollows: who, when, what, where, why, how, and how many. 17
  18. 18. RequirementsThe requirements for this project were identified by the CIO of IRTC ManufacturingEnterprises with suggestions and recommendations provided by the project teammembers to provide the level of detail needed to properly cost and implement theproject. A rough order magnitude dollar figure was provided to identify an initialbaseline for planning the project and was then adjusted based on projectrequirements. Meetings with the Billing Department Head, Customer ServiceDepartment Head and IT Department head helped clarify the objectives furture.Define ScopeThe scope of this project is to upgrade IRTC’s legacy billing system to a new webbased architecture that interfaces with the legacy billing system and customer servicesystems. The web based system will allow customers to view and pay bills online andaccess a billing agent when needed. The web based system is expected to reducecosts and improve customer satisfaction.Verify ScopeA contract proposal will be developed by the project manager providing detailedrequirements for acquiring human resources from the venderControl ScopeAll scope changes will be coordinated with the project manager, project sponsor andcustomers. Scope changes will be submitted in writing with cost estimates forapproval by the customers prior to implementation. The scope changes will beaddendums to the construction contract. 18
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  21. 21. Human resources management is an important part of the IRTC BillingSystem Upgrade Project. This human resources management plan describes the roles andresponsibilities that will be fulfilled and a rational for the staff that are going to fulfill eachposition. The purpose of this human resources management plan is to achieve projectsuccess by ensuring the appropriate human resources are acquired with the necessary skills,resources are trained if any gaps in skills are identified, team building strategies are clearlydefines, and team activities are effectively managed. The vender will play an essential role insupplementing this project and has been contracted to provide an additional skilledprogrammer, a technical architect, and a technical writer since IRTC team members lackproficiency in such skills. All of the vender team members will be utilized on an as neededconsultant basis as determined by the project team and schedule and will only be utilizedunder project critical circumstances and to develop IRTC team members skills as necessary toensure the quality and integrity of the IRTC system upgrades. 21
  22. 22. The key human resources that will be utilized on the IRTC Billing System Upgrade Project include: Project Sponsor,Project Manager, Customer Service Department Manager, Billing Department Manager, Vender, Team Leader, Business Analyst, TechnicalArchitect, Quality Assurance, Software Engineers, End User/System Tester, and Technical Writer. IRTC’s technical writer will be unavailable forthe length of this project thus IRTC has contracted with the vender for technical writing. As mentioned the vender will also provide an experttechnical architect to aid in the design stage and a seasoned programmer to supplement IRTC’s programmer when necessary. The chart shown is an organizational chart that displays the primary human resources that will be utilized in this projectas well as the level of authority of each member. Each of these roles will be explained in greater depth in the roles and responsibilities section ofthis human resource plan. However, some key items of note is that the Customer Service and Billing Departments will play a role in providing theend user and project with critical requirements identification. Quality Assurance has authority over the Software Engineers and End User, and theTeam Leader has authority over all other project members as shown. 22
  23. 23. The chart shown is a project responsible, accountable, consult, and inform (RACI) chart. It is a type of responsibilityassignment matrix (RAM) that is used to show the connections between activities and project team members. In the top row you can see thecritical human resources of this project as well as the individuals who will play these roles (to be discussed later). Overall the primary personsresponsible for activities are identified by the letter “R”. However, there are also many individuals who do not have primary responsibility but arenone the less accountable for each activity these are shown by the letter “A” above. If a member is accountable for a specific task they are tied tothe project team for that activity and should provide aid as necessary to ensure the activities success. Cells that have the letter “C” requires theresponsible member consult with the indicated individual prior and during the activity. Finally, cells that have the letter “I” require that theparticipant be informed of the progress and made during each activity to reduce the likelihood of conflicts or absent communication betweenproject stakeholders. 23
  24. 24. Role:Project SponsorAuthority:The Project Sponsor has full control over the project and must approve project scope changes and provides go/no-go decisions where there isparticularly high risk.Responsibility:The Project Sponsor is the person or group that provides the financial resources for the project, champions the project, and authorizes projectscope changes, and plays a significant role in the development of the initial scope and project charter (Global Standard, 2008).Role:Project ManagerAuthority: The project manager has authority over all project team members and all resources allocated to the project.Responsibility:The Project Manager is responsible for the overall success of the Project. The PM must authorize and approve all project expenditures. The PM isalso responsible for approving that work activities meet established acceptability criteria and fall within acceptable variances. The PM will beresponsible for reporting project status in accordance with the communications management plan. The PM will evaluate the performance of allproject team members and communicate their performance to functional managers. The PM is also responsible for acquiring human resourcesfor the project through coordination with functional managers. The PM must possess the following skills: leadership/management, budgeting,scheduling, and effective communication. 24
  25. 25. Role:Team Leader, TerryAuthority:Has authority over project team.Responsibility:The team leader creates an environment of trust, open communication, and creative thinking between project team members (Crow, 1999). Theteam lead is responsible for coordinating team logistics, setting team schedules and organizing team member meetings. Finally the team lead isable to provide status reports of team progress and activities that have project on the schedule and is responsible for keeping the projectmanager informed.Terry is assigned as the projects team leader because of her background involvement in past system upgrades. Terry has vast technicalcapabilities and has played the role of software developer and tester on many projects. Terry is enthusiastic and has shown excellentmanagement and communication skills in prior projects.Role:Business Analyst, RobinResponsibility:The business analyst understands what the business does, determines how to improve existing practices, determines steps needed, createsfunctional specifications, and implements the technical design of a new system (Babcock, 2007). The business analyst is responsible for thecreation of graphs, charts, and must analyze the changes that are being implemented and their impact on IRTC organizational goals. Robin isassigned as the systems analyst for this project because of her outstanding role as systems analyst in the last two IRTC upgrade projects. 25
  26. 26. Role:Software Engineer, ChrisResponsibility:The SE is responsible for gathering coding requirements for the Project. The SE is responsible for all upgrade design, coding, of the upgradedsoftware. The SE is responsible for the timely reporting to the Team Leader and PM as required by the communications management plan. TheSE is responsible for programming, designing, testing, checking, and maintaining the IRTC Billing System Upgrade Project. The software engineermust have good communication skills and be able to work well with the business analyst, end user, and quality assurance team members. Chris isassigned as the lead software engineer / web programmer for this project. Chris has an undergraduate degree in computer science and has vastexperience in web programming and software systems testing.Role:Quality Assurance, PatResponsibility:Quality Assurance responsibilities include maintaining the project library and repository of project metrics, verification of project plans byaffected by the group, review of processes and process requirements, preparing a QA plan, ensuring project requirements are clear, verifiable,and testable, coordinating audits and informal code reviews, observing end user system testing, and inspecting project reports. Pat is assigned asthe Quality Assurance team member due to his past experience with IRTC projects. 26
  27. 27. Role:End UserResponsibility:The end user/system tester is responsible for ensuring that the desires of the Customer Service Department and Billing Department arearticulated (Dean, 2007). The end user/system tester is also responsible for verifying that the finished project meets all of the expressedrequirements. The end user is responsible for articulating requirements, thoroughly testing requirements, ensuring requirements are satisfied,and ensuring Customer Service and Billing Department staff is qualified and able to accept the system, and must promote and teach the system tousers. The end user will provide a written contract of requirements and the qualifying criteria to the project stakeholders for delivery approvaland approval of installation procedures. The end user will review existing business practices, and develop procedures/policies as required tosupport the new system. Jan is assigned as the end user for this project. Jan has prior experience with similar web based billing system projectsand has extensive knowledge of the features, requirements, and functions the new system requires.Role:Technical ArchitectResponsibility:The technical architect is responsible for working with the project team in designing an end product that can be utilized easily, effectively,productively by the Customer Service and Billing Departments. The Vender will provide this position. 27
  28. 28. This chart created with Microsoft Excel highlights planned project activities and theamount of human resources that will be expended. It provides an outlook onexpected costs assosiated with using FTE’s vs. Vender staffing for the project. 28
  29. 29. This chart created with Microsoft Excel illustrates the planned human resource usageof the project. 29
  30. 30. Performance Reviews:The project manager will review each team member’s assigned work activities at the onset of the project and communicate all expectations ofwork to be performed. The project manager will then evaluate each team member throughout the project to evaluate their performance andhow effectively they are completing their assigned work. Prior to releasing project resources, the project manager will meet with the appropriatefunctional manager and provide feedback on employee project performance. The functional managers will then perform a formal performancereview on each team member.Recognition and Rewards:Upon successful completion of the project, a party will be held to celebrate the success of each team member with the team members’ familiespresent.Upon successful completion of the project, any team member who satisfactorily completed all assigned work packages on time will receive acertificate of thanks from the CEO.Team members who successfully complete all of their assigned tasks will have their photo taken for inclusion in the IRTC corporate newsletter.IRTC will provide free family movie tickets for the top two performers of the project. 30
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  35. 35. IRTC Manufacturing Enterprises is upgrading the legacy billing system. The system hasbeen through nine (9) upgrades before. The new upgrade will affect changes to IRTCbusiness processes as they are switching to a new web-based version of the system,in addition the mainframe legacy system update. The project is expected to last 16-20weeks; however, everyone has agreed that a formal scheduling process should becompleted which may change the duration estimate (Colorado Tech UniversityOnline, 2011). The changes will streamline business functions, change existing jobs,create new positions, affect both the billing and customer service departments,improve customer satisfaction and reduce the number of days for outstandingaccounts receivables.The purpose of this presentation is to provide IRTC will a formal scheduling processthat will offer them a roadmap for completing the new legacy billing system. It willoffer the Project Sponsor (the Director of the Billing Department), stakeholders andproject team a picture of the project’s status throughout the project lifecycle. Onetool that will be used in the establishment of a project schedule is the Critical PathMethod (CPM). Critical Path Method calculates the theoretical early start and finishdates, and late start and finish dates, for all activities without regard for any resourcelimitations, by performing a forward and backward pass analysis through theschedule network (Project Management Institute, 2008). 35
  36. 36. Information on the schedule comes from the Project Charter and the project scope. The legacy billing system has beenupgraded within a 9-12 week period; the duration was dependent on the vendor’s schedule. It is estimated that this new billingsystem will last from 16-20 weeks; however it is expected that in following a formal schedule will result in a longer time frame.Apparently, the past upgrades did not follow a formal scheduling process plan.The project baseline will be from 16-20 weeks, not to exceed 26 weeks (approximately six (6) months). The vendor and his teamof trainers and technical writers and technical architects will be on board for 8 weeks. This will be enough time to take care ofall training and instructing needed to have IRTC staff proficient on the new system. From that estimation, even we accept thevendor’s software add-on that supports the integration of our existing customer service system with the billing system’scustomer service function, that still keeps us under budget of the $100,000 allocated for vendor resources.Roles and responsibilities will be established for the following participants in the schedule management plan. These participantsplay a significant role in the creation of the schedule and its management: Project Sponsor, Project Manager, Team Lead,Project Stakeholders and Business Analyst.Project Sponsor: The Project Sponsor is a sitting member of the executive committee and the approval authority for the LegacyBilling Upgrade Project. The Project Sponsor is responsible for approving any requested schedule changes. Additionally, theProject Sponsor will provide status updates to the Executive Committee in monthly meetings.Project Manager: The Project Manager has overall responsibility for schedule management on the Legacy Billing UpgradeProject. The Project manager is required to submit a weekly schedule status update to the Project Sponsor by close of businessevery Friday. The Project Manager is responsible for chairing the bi-weekly project team schedule meeting; for leading theproject team in identifying and quantifying any schedule impact event which may result in schedule variance and reviewing allschedule change requests prior to submitting them to the Project Sponsor for approval.Business Analyst: The Business Analyst will participate in all bi-weekly project team schedule meetings. He/she will assist theProject Manager in identifying and quantifying scheduling impact events. The Business Analyst will be responsible foridentifying any potential schedule impacts and submitting the appropriate schedule change request to the Project Manager forany IT-related project function.Team Leader: The Team Leader will participate in all bi-weekly project team schedule meetings. He/she will also assist theProject Manager in identifying and quantifying scheduling impact events. The Team Leader will be responsible for identifyingany potential schedule impacts and submitting the appropriate schedule change request to the Project Manager for any team-related project function.Project Stakeholders: Stakeholders identifying potential schedule impact events will work with the Project Manager and Teamto determine if a schedule change request is necessary. Schedule status will be communicated to Stakeholders at the monthlyproject status meeting.The Work Breakdown Structure (WBS) will be used to provide a framework of the schedule activities and the project milestoneestablished. It represents verifiable products, services or results pertaining to the project schedule. It will provide a consistencyon the estimates of scheduling strategy and monitoring and controlling of schedule. Decomposition is the subdivision of projectdeliverables into smaller, more manageable component or activities, which are the effort needed to complete a work package.Designated milestone include: project kickoff; completion of the new IRTC website; completion of the customer service andbilling database; integration of vendor software add-on with legacy billing system; vendor training; and project sponsorapproval 36
  37. 37. The project schedule will be developed using a variety of tools and management software fromMicrosoft Project. By using Microsoft Project, project deliverables will be identified in the WorkBreakdown Structure (WBS) and the WBS dictionary. Activity list will identify the specific workpackages which must be performed to complete each deliverable. From the activity list, estimatedactivity durations will be established. These activity durations will be used to calculate the number ofwork periods required to complete work packages (Project Management Docs, n.d.). As noted earlier,this project has a time from of 20-26 weeks; budget, resources, time, cost and procurements havebeen allocated to meet the demands of each. Adherence to these time durations is very important;deviations could result in schedule changes which must be handled through a formal change process.Once a preliminary schedule has been developed, it will be reviewed by the project team and anyresources tentatively assigned to project tasks. The project team must agree to the proposed workpackages assignments, durations, and schedule. Project durations may be affected or developeddepending on resource calendar, enterprise environmental factors and organizational process assets.The resource calendar provides information on which resources (e.g., people, equipment and material)are potentially available during planned activity period for estimation the utilization of thoseresources. Enterprise environmental factors include but are not limited to availability of the resourcesand skills needed; this information often kept in a project management information system (PMIS).Organizational process assets may include but are not limited to the following: existing activityplanning-related policies, procedures and guidelines that are considered in developing the activitydefinitions and lessons-learned knowledge base containing historical information regarding activitylists used in previous similar projects (Project Management Institute, 2008). 37
  38. 38. Maintaining constant awareness of the schedule is important because it allows theProject Manager and team to understand and provide the status of the project at anygiven time. However, this awareness is also necessary to allow the Project Managerto identify potential impact events and address these events by adjusting resources,funding, or submitting appropriate schedule change requests.The Legacy Billing Upgrade Project will be monitored and controlled by the ProjectManager and team. Bi-weekly project schedule meetings, which will be chaired bythe Project Manager, will be conducted to provide schedule awareness. All projectteam members will be required to report the status of their assigned work as itrelates to the schedule at this meeting. This will allow the Project Manager to fullyunderstand the status of the project schedule and provide him with the opportunityto shift or re-allocate resources, funding, or submit schedule change requests asnecessary (FAST Project Plans, n.d.).As each schedule task is completed, the team member responsible for the work willprovide an update to the Project Manager notifying him of such. This will allow theProject Manager to track schedule status in real time in order to provide statusupdates to the Project Sponsor or Stakeholders as necessary with currentinformation. Additionally, as interim project deliverables are completed, they will bepresented to the Project Sponsor for deliverable acceptance. 38
  39. 39. Changes are going to occur during a project’s life cycle. Just because the changes occur, they need not be implemented without evaluating the impact they will have on the project. A formal change process must be followed in order to avoid unnecessary schedule changes, changes in the schedule which may be inadequate or fail to account for schedule impacts, or a lack of awareness across the project team of any changes which may have been made (FAST Project Plans, n.d.).For the legacy billing system all proposed schedule changes will follow a formal process which is agreed by the project sponsor, i.e., the director of the of the billing department. The project sponsor is the one that sets the boundaries for the changes; therefore, all change requests must be approved by him. Any change requests that does not meet these boundaries may be submitted to the project manager for approval (boundary conditions set below). While it is the project sponsor that approves the change request, any member of the project team may request a schedule change once it has been determined that a boundary condition has been exceeded. The change is submitted to the Project Manager who reviews the change request with the project team. This review includes an evaluation of the impact the change request will have on schedule, cost and scope of the project. If it has been determined that the impact falls within the boundary conditions established, the change request may be approved or denied by the Project Manager and any changes needed may then be implemented in accordance with the Change Management Plan. If the impact exceeds the boundary conditions, the change is forwarded to the Project Sponsor for approval. Once approved, the project manager is responsible for adjusting the schedule and communicating all changes and the impact of those changes to the project team, project sponsor and stakeholders (Project Management Docs, n.d.).Boundary conditions for the Legacy Billing System are as follows:a) The proposed change is estimated to reduce the duration of the design teams work package by 10% or more, or increase the duration of their work package by 10% or more.b) The change is estimated to reduce the duration of the overall schedule baseline by 10% or more, or increase the duration of the overall baseline by 10% or more. 39
  40. 40. IRTC Manufacturing Enterprises is upgrading the legacy billing system. IRTC will follow a formalscheduling outlined in the Project Time Management Plan. This formal scheduling process will offer aroadmap for completing the new legacy billing system. It will offer the Project Sponsor (the Director ofthe Billing Department), stakeholders and project team a picture of the project’s status throughout theproject lifecycle. Information on the schedule comes from the Project Charter and the project scope.The legacy billing system has been upgraded within a 9-12 week period; the duration was dependenton the vendor’s schedule. It is estimated that this new billing system will last from 16-20 weeks;however it is expected that in following a formal schedule will result in a longer time frame.Roles and responsibilities will be established for the following participants in the schedulemanagement plan. The project will be Decomposed into smaller, more manageable component oractivities with designated milestone as follows: project kickoff; completion of the new IRTC website;completion of the customer service and billing database; integration of vendor software add-on withlegacy billing system; vendor training; and project sponsor approval. The Legacy Billing UpgradeProject will be monitored and controlled by the Project Manager and team. Bi-weekly projectschedule meetings, which will be chaired by the Project Manager, will be conducted to provideschedule awareness. All project team members will be required to report the status of their assignedwork as it relates to the schedule at this meeting. All proposed schedule changes will follow a formalprocess which is agreed by the project sponsor, i.e., the director of the of the billing department. Anychange requests that does not meet the established boundaries may be submitted to the projectmanager for approval. While it is the project sponsor that approves the change request, any memberof the project team may request a schedule change once it has been determined that a boundarycondition has been exceeded. 40
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  42. 42. The budgeting process for IRTC Manufacturing Enterprise will include a portion of thethree methods that follows to estimate the cost to complete the project budget.Beginning with the bottom up approach it is the method of estimating a unit of work,in other words a unit of work is broken down into more details at a lower level anmore descriptive pieces of work, which are forwarded to vendors to provide quotesaccording to PMBOK, 2009 this technique is known as bottom up estimating. Thesecond technique is analogous estimating according to Greene, 2008, which usecontractor expertise to verify the cost of a work package. The last technique of thebudget process is parametric estimating, according to Greene, 2009 parametricestimating use historical data gathered from previous projects to estimate the cost toperform a work package or section of work. 42
  43. 43. IRTC corporation determined a fixed budget for the legacy system upgrade. However,one of the most often used methods to create a budget follow the method listed, first the document make note that a budget should always receivelabeling as an estimate, until it has been authorized and approved. The process helpmanage expectations and prevent miscommunications from being signed off on. Onlarge projects such as IRTC legacy system upgrade on person does not make thebudget. According to the following stakeholders should offer input tothe budget process: lead developer, project manager, and high level stakeholders. 43
  44. 44. Bottom up estimating is the generic name for analogous estimating or roll upestimating. In other this process requires the customer to retrieve three quotes for aservice or commodity. Expert judgment estimating is the process of consulting withexperts in the subject area to obtain price quotes to build the budget. However, mostexperts charge a consulting fee for services rendered. Parametric estimating is a formof budgeting process where the client use historical data gathered from otherprojects to build price quotes for work packages this budgeting process. Either of theprocesses listed offer a certain degree of accuracy for the budget building process.Moreover, once the cost are outlined it is time to obtain more accurate figures, Usinga project manager most often make the cost of completing a project budget line upwith real cost estimates. 44
  45. 45. Project cost and projects are two separate entities. The project cost are not definedtotally by the monetary amounts, actual amounts including shipping and taxes, forsoftware items used on the project must total onto the bill to ensure that appropriatebaselining is achieved. Likewise contractors and vendor resources used for IRTC aretotaled in hours, not dollar figures. Once the costs are laid out the next step is toidentify the risks and assign a percentage reflecting how much each rick factor mayaffect the project overall, or portions of the project. Each of the delivery teams needsto have a certain percentage of risk value assigned to as insurance to make the teamproactive, including the ability to cover occasional overtime etc. The budget for IRTCthen is the total costs as calculated in the total cost figures and the total riskpercentage of that cost. The budget is not an invoice contrary the baseline for theproject budget. 45
  46. 46. The risk assessment and assignment is highly important to a successful project.According to without risk assessment the crisis that inherently happenover and over on a give project will affect the projects bottom line. To handle theescalations the values selected for the work packages should have contingency builtin to the price estimate and not considered a part of a sales markup according Risk represent actual costs incurred over the course of the project.The associations of the project requires careful planning, such as obscurity of thetechnology used, planning time shortages, number of development teams, number ofmodular components, product dependencies such as third party software, and anyunknown. As risks escalate the resolution is to add a scope and a percentage to eachitem. 46
  47. 47. All project have a certain amount of risk potential involved that is most oftencontributed to human error. People contract illness, people take vacation, peopleattend training, have court appointments just to name a few of the contributingfactors that may cause project failure. From my personal experience no one is anexpert in a subject matters. Therefore, a percentage needs assigning to this areabeyond other considerations. According to an average 10 developer sixmonth project justifies a risk assessment of 5% of the total project cost. According it is normal for the overall risk assessment of a project to totalbetween 20 and 30 percent. According to when you suspect thenumbers are too high do a comparison in the company to other projects to verify didother projects actually fall within budget. In the end a client is mush happier whenyou complete a project within budget, and too high risk values can cause stickershock, revealing inexperience etc. however, by following the guide lines outlined you can rest assured that your project team, drivers, andclient will enjoy the benefits. 47
  48. 48. Project description: A group of teachers wants to take a world tour starting inMumbai India, and ending someplace in Europe. The objective is to persuade theACME company to offer world tours to meet the demands of the clients. The strategicanalysis of this event would give the company the edge over other companies in townbecause the other company’s charge $500 more that the customer is willing to pay.The teachers research shows that the company could make $700 profit and stillundercut the closest competition. The intangible benefits include the agents whoattend this trip will gain experience booking travel in Europe, and that will thecompany with other prospects that has showed interest in other destinations.Conclusion it is the best interest of the ACME company to fund this project. 48
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  51. 51. Risk as they “Is a measure of probability, and consequence of not achieving adefined project goal.” A project management plan does not go further withoutpreparing a risk management assessment. First we have to identify the risks, and liststhem to determining any new risk that is laying there in wait. A risk assessment startswith looking at all the areas of interest that represents the intended project. SeeScenario, (CTU, 2011). Using a “Risk Flow Diagram,” we can see above the differentsteps to take in doing this assessment; which begins with identifying the risks – goodor bad negative or positive. The advantages of doing this assessment is to see whatthere is, that might be of a good advantage to the project and/or organization. Otherlevel show that things can be added to or be updated or to pay close attention to; as faras the levels of risks there are out there to take. Of these levels there are steps to betaken at certain times. There contingencies that have to be met of which certainadjustments may be made to benefit the project cycle or budget, or all who areworking on the project that can be added or left out at needed. (Using specific projectrisk assessment software can help to sort and define those risks where it can bedocumented and stored as data for future use). (Kerzner, 2010;) 51
  52. 52. Working on a project plan means knowing all the High/negative andLow/positive risks there are for the time of the project, and present time. It is withouta doubt that the first thing to do is to ask questions- and how we are going to dothat? Communicate within those within our environment and our external forces whoare our customers, suppliers, and our competitors. (2011) Risks can be a hazard to us or it can be an opportunity; it also has variability.(2011).The responsibility also comes from the upper management and lowermanagement; to give a breakdown of what their normal risks are; not forgettingcustomer relations and what is being done to lower those risk which can eventuallysave any disaster at a later time. (2011). Beyond the initial risk assessment, given bymanagement, we have to be disciplined to be able to work in difficult situations; andnot to get caught up with other distractions, so we can identify other risks and listthose risks. We must also be able to keep in tune with the customer’s needs, andother daily operation and the scope of the project process. (2011). There arecertainty risks and uncertainty risks that are the two categories that control theaspect of risk management; one we know of or can see, to work with have moreconfidence in, and it is more predictable .(Kerzner, 2010) Last but not least, allcompliance of the Sarbanes Oxley Act must be taken met as an added confidence andethical value to the organization. (2011) 52
  53. 53. A risk analysis is the evaluation of the activities of things that happened andthe things that are liable to happen in the period of the project . (2011). We have toexpect that there is a probability of a risk happening on a daily basis is just as theopposite not happening; therefore in order for us to determine the possibility ofthose basis, we have to evaluate the presumptions. To determine the probability ofan incident can happen, we list the probability of risks categorizing, and adding thatup, and giving a percentage of that probability for by using a basic formula; and latermore intricate, to calculate; by the intervals of the incidents happening with dividingthe events by intervals plus 1 and determine the percentage (average ) of time anincident can happen. Thus: Formula= p (Ri) = (1/1+ti). See video (Youtube, 2011) A risk analysis helps us to determine our profit and loss ( Kerzner, 2010), ingoing into this project, or any other proposed project; the objective is to go forprofit- not loss. 53
  54. 54. After the WBS is done, these two charts can be used to check on the status oftasks done or to be done in order to determine the risks that may or not causeunnecessary risks to the project. As one can see the GANTT chart shows wherespecific notation are documented as our guide for our plan to be initiated. The PERTdiagram shows the fish diagram, of how the specific the tasks to be done, when, what,and how it should be done which includes also the timeline of such task will be done.In order to make reasonable decisions such steps must be made to dispel unnecessarydoubts. (2011). The difference between the two models are that THE PERT Chart asis best described thus: A PERT chart is a project management tool used to schedule, organize, andcoordinate tasks within a project. PERT stands for Program Evaluation ReviewTechnique, a methodology developed by the U.S. Navy in the 1950s to manage thePolaris submarine missile program. A similar methodology, the Critical Path Method(CPM) was developed for project management in the private sector at about thesame time. (Tech Target, 2011) the PERT chart has connected lines and dots thatstates what the next steps are; which might not be directly connected which mightbe a few weeks from the last do a broken or dotted line at the last task and at thestart of the new task. (2011). The GANNT chart is also a matrix and it lists tasks on avertical axis that are listed vertically. IN every row a task is identified by name oflabel, and is done in a horizontal form with columns, identifying what level of task isneeded to do a task and the provider of the task. There are periods for the tasks to bedone, e.g., year, week, month, or date, time, and year. In the graphs following the textportion horizontal bars are made for connecting the time and period of the start andending of a task. (2011). 54
  55. 55. A SWOT analysis is used to determine the risks involved when preparing aproject plan; for the benefit all the stakeholders involved. It is an examination of thestrengths, weaknesses and opportunities. If a SWOT analysis is not done we willnot be able to determine our budget, timeline, and staff that will be needed in orderto reduce costs, and there must be enough to pay our vendor and/or consultant ifneeded, and I feel the add-on program may not be needed when adding up the netper hour salary for the staff including the vendor’s staff it may be not enough basedon the time the vendor has given us. We will have to look for another vendor whocan do it for less time and also at a lower cost. 55
  56. 56. In our SWOT analysis of our project plan we try to determine the effectivenessin our organization, base on our past and present decisions. (2011) This method ofanalysis is used to understand the ways of business strategy. This method is a basicmethod that is simple, to understand and follow. Is usually done as a 2x2 matrix, andis used worldwide for as a good method for presentation, and reviews. (2011). In thetwo categories we can see that the opportunities are good; but unsure, becausethere are possibilities that might happen that can enhance the functions of businessat IRTC. in the Threats column we see that they are also a possibility, of happening,because they are a certainty; due to the facts of the history, and account of presentconditions at IRTC. 56
  57. 57. In this risk management plan we can see that there are different methods andsteps taken to get every part of the project put together by team effort and theknowledge of a good project manager; who along with other management team hasto work together to achieve an effective outcome. (2011). Our next step is todocument our task, and put them together in a document to be reviewed by thesponsor and management; before it can be approved for the project. It will be a goodadvice not to get to overwhelmed and caught up with too much distraction; but use alevel head and work with the team to obtain a quality plan that that meets allrequirements for approval. ( (Kerzner, 2010). Some training on leadership for the staffwill be good recommendation. (DIR, 2011). 57
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  60. 60. A PM will spend at least half, if not more, of their time communicating with variousindividuals throughout the project. Their communication is performed throughspeaking, facilitating, listening, and writing. In order to be sure there is propercommunication before, during, and after the project, the PM will need to develop acommunication strategy and system. This system is what the PM will use to gatherand distribute information and report the project results. Additionally, they willcommunicate how the project will be closed out and share the lessons they havelearned to help others (Project Communications Systems, 2011). During the planning stages, the PM will determine the following: theaudiences, content, frequency, and mechanisms. Other information will also need tobe communicated such as the schedule, budget, utilization, and other statuscomponents. It is important for the PM to identify what tools and techniques will beused to capture and report the metrics, and the frequency for which it will beperformed. Lastly, they will need to determine how the results will be applied andcommunicated to the stakeholders of the project (Project Communications Systems,2011). 60
  61. 61. Schedules are developed for projects to include what work needs to be completed onthe project, when it will be completed, how long it will take, and who will beperforming the work. The schedules are comprised of the tasks, dependenciesbetween the tasks, durations, start and end dates, and the assignments. The projectsare set-up in one of three different general relationship models. These are finish-start, start-start, and finish-finish. Most likely, the finish-start model will be the onemostly used in IRTC’s new project. Each of the people involved in each of the taskswill not only need to know what they are to accomplish, but will need to knowother’s tasks as well so they can determine their finish times and other requirements(FAQ: Defining Project Schedules, 2011). In order to communicate this information, the PM will need to developa work breakdown structure (WBS) which will list all of the work that must beperformed in order for the project to be complete. The WBS for IRTC should bebased on the phases of work. This WBS will also be referred to for the bases ofdetailing the schedule and other estimates. The milestones of the project will also becommunicated in this schedule. This consists of critical points in the project as wellas the hand-offs between the project’s phases. There are other charts, such as theGantt chart, Program Evaluation Review Technique (PERT), or the Critical PatchMethod (CPM). Each of these communication models depict the schedule andestimates associated with them (FAQ: Defining Project Schedules, 2011). 61
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  63. 63. The communication between the PM and the sponsor regarding the budget will bedone through telephone, meetings, email, and other face-to-face encounters.Anything discussed in the meetings or in person will need to be recorded by the PM,so they have hard copies of the resources should they need it for clarification or torefer to at a later point. (Determining Project Costs, 2011). The budget forecast is also important for the PM and the sponsor. Thisinformation is used in the control cost process. Its purpose is to provide informationregarding the additional funds which are expected to be needed for the amount ofwork remaining. It can also be used, in turn, to develop an estimate for the totalcompletion (PMBOK, 2008). It is important that is information is communicatedbetween the PM and the sponsor. They will use it to develop other budget forecasts,and they will use the information to determine if anything within the budget needs tobe changed and how it will affect the project’s scope and schedule. 63
  64. 64. It is important to keep the team and other project stakeholders informed of what isbeing performed during the project and whether or not it is meeting the scheduledstandards. Reporting the performance is the process of collecting and distributingperformance information. This information pertains to status reports, progressmeasurements, and forecasts. This data will be collected periodically and will beanalyzed to compare the information. The data collected will be communicated inthe project’s progress and performance update and will also be used to forecastproject results (PMBOK, 2008). The PM will need to be sure the performance reports include the rightinformation which is appropriate for each audience. There are many formatsavailable ranging from a simple status reports to more elaborate reports. A simplereport will show information about the percent complete or for status dashboardsmonitoring the scope, schedule, costs, and quality. More elaborate reports includeanalysis of past performance, current status of risks and issues, work completedduring that period, work to be completed next, summary of approved changes, andother relevant information which needs to be reviewed and discussed. This generalinformation will be shared with the team and end users whereas the more elaboratereports will be discussed among the PM, sponsor, business analyst, vendor, and thesenior management (PMBOK, 2008). 64
  65. 65. There are many tools and techniques used to communicate the gathered information.There can be individual or group meetings, video and audio conferences, computerchats, and other remote communication devices. There are many tools available toIRTC to communicate this information to the stakeholders. The PM can distribute theinformation using hard-copy documents, manual filing systems, press releases, orshared-access electronic databases. The electronic communication and conferencingtools, like e-mail, fax, voicemail, telephone, video and web conferencing, websitesand web publishing tools. Other electronic tools for project management such asproject management software, meeting and virtual office support software, portals,and collaborative work management tools (PMBOK, 2008). The PM will decide which interface is the most appropriate for theirdesired audience. They may use different combinations depending on whatinformation is being communicated and to whom it is communicated. The PM willneed to ensure the audience is aware of the type of communication that will be used,so they are able to keep tabs on the information as stay informed. 65
  66. 66. The type of information being shared will also be contingent on who is receiving theinformation. The stakeholders should be notified when issues are resolved, changesare approved, and the general project status updates. Project reports are the formaland informal reports which describe the status of the project and the lessons learnedalong the way. There will be issue logs, project closure reports, and other outputsfrom the different areas of the project. Project presentations will provide the teamwith information in a formal or informal setting. The other project’s stakeholders canalso be involved so long as the information is relevant to their needs. Project recordare used as correspondence in the form of memos, meeting notes, and otherdocuments which describe the project. The information needs to be relevant andpresented in an organized manner. The project records can also be maintained by theproject team in a notebook or other register (PMBOK, 2011). The feedback from the stakeholders is also important information tobe communicated. They will have input concerning the project’s operations. Thisfeedback will be distributed to the team and will be used to modify or improve futureperformance of the project. The lessons learned documentation records the causesof the issues, reasoning behind the corrective action chosen, and other types oflessons learned about the information distribution. The lessons learneddocumentation needs to become a part of the historical database to be used by boththe project, and the performing organization (PMBOK, 2011). 66
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