APM_AEB_FINAL

HIGH-TECH THEME PARK PROJECT
TEAM 5
April - June, 2016

Applied Project Management (APM) Team FUNTASTICS
Application Exercise Booklet June 8, 2016
1
HIGH-TECH THEME PARK (HTTP) PROJECT EXERCISE DESCRIPTION
You are a project manager working for a company called “NoKlue Incorporated”. NoKlue wants
you to manage the design, development, and testing of a new High-Technology Theme Park
(HTTP) based on the following requirements. NoKlue won this design/build contract from the
Santa Cruz City Business Management Department which is now NoKlue’s customer.
Scope Statement
This project shall include all design and construction of HTTP so that it is fully compliant with
state and federal building code regulations, including compliance with Occupational Safety and
Health Administration (OSHA) standards, and environmental impact assessments. A final
inspection of the completed structure against all specifications, and regulations shall be made to
determine its acceptance. Once accepted, your job is completed and HTTP will be turned over to
another firm for ongoing operation, maintenance and repair.
Requirements
 HTTP must be a high-technology theme park located along the beach in Santa Cruz, CA.
 Its purpose will be centered on educating people in the fields of computer science,
biotechnology, engineering, information technology, pharmaceuticals, health care,
business finance, Internet applications, biology, medicine, aerospace, and oceanography.
 It must resemble the existing Great America Park regarding entertainment, rides, food
services, and all that goes into managing such a park.
 It must comply with all applicable local and state regulations.
 It will be built on a 200-acre area which is already owned by Santa Cruz County.
 Once this project is completed, it will be turned over to an operations and maintenance
company (O&M), and your job will be done.
Project Constraints and Assumptions.
The HTTP project shall be completed in two years for no more than $100 million.
NoKlue Incorporated Key Stakeholders
- Ken Martinez, Project Sponsor – You will be reporting directly to Ken.
- Chi Yang, Chief Financial Officer – As CFO, Chi will be responsible for providing all funding
for the project.
- Matt Washington, Head of Functional Managers – Matt and his functional managers will
provide all personnel for this project.
- Ayah Habib, NoKlue’s Customer – Ayah is the Head of the Santa Cruz Business Management
Department, and as such, is NoKlue’s customer.

2
APPLICATION EXERCISE NO. 1
PROJECT INITIATION
Team Synergy Information
Team was formed on April 6, 2016 to manage the High-Tech
Theme Park (HTTP) project from design, through development, to testing.
Team members
Name Occupation Fun Fact Phone Email
Eva
Janos
Technical
Writer
Languages:
English,
German,
Romanian,
Hungarian,
some Italian
408-628-2421 eva.janos@gmail.com
Ushi
Lo
Associate Project
Manager
Taekwondo
black belt
408-838-0066 lo.ushic@gmail.com
Mahesh
Pokharel
Procurement
and Contract
Management
Self-practiced
performer:
singing,
dancing
Languages:
English,
Nepali,
Hindi
203-548-1289 pokharel111@gmail.com
Macie
Skipwith
Program
Management
Taekwondo
black belt
408-425-2663 macieskipwith@gmail.com
Our name and colorful logo reflect the nature and theme of the project. Pencils
represent learning, writing, and the project management work.

3
Team Responsibility Assignment Matrix (Team RAM)
Application Exercise (AE) Eva Mahesh Macie Ushi
AE 1
Team RAM 1, 2, 3 1, 2 0, 1, 2 1, 2
Project Charter 2, 3 1, 2 0, 2 2
1. Project Authorization 2, 3 1, 2 0, 2 2
2. Project Manager Authorization 2, 3 1, 2 0, 2 2
3. Key Stakeholders 2, 3 1, 2 0, 2 2
4. Project Goal(s) 2, 3 2 0, 1, 2 2
5. Project Priorities 2, 3 2 0, 1, 2 2
6. Scope Statement 2, 3 2 0, 1, 2 2
7. Product Requirements 1, 2, 3 2 0, 2 2
8. Project Assumptions 2, 3 1, 2 0, 2 2
9. Project Constraints and Boundaries 2, 3 2 0, 2 1, 2
10. Initial Project Risks 2, 3 2 0, 2 1, 2
11. Deliverables List 1, 2, 3 2 0, 2 2
12. Cost Estimates 2, 3 1, 2 0, 2 2
13. Schedule Estimates 2, 3 2 0, 2 1, 2
14. Integrated Change Control 2, 3 2 0, 2 1, 2
15. Success Criteria 2, 3 2 0, 2 1, 2
Key Stakeholder RAM 1, 2, 3 2 0, 2 2
Communication Plan 2, 3 2 0, 1, 2 2
AE 2
WBS 1, 2, 3 2 0, 2 2
1. Decompose to level 2 1, 2, 3 2 0, 2 2
2. Decompose to level 3 2, 3 2 0, 2 1, 2
3. Decompose to lowest levels 2, 3 2 0, 1, 2 2
4. Check estimated hours 1, 2, 3 2 0, 2 2
5. Ensure that WBS elements have ID
numbers and labor hours
2, 3 2 0, 2 1, 2
AE 3
Project Schedule Management Plan 2, 3 2 0, 1, 2 2
1. Describe how to develop the schedule 2, 3 2 0, 1, 2 0, 2
2. Describe how to ensure that the
schedule is accurate and complete
1, 2, 3 2 0, 2 2
3. Describe when and how to use
schedule compression techniques
2, 3 2 0, 1, 2 2
4. Describe why the critical path is
important and how to take advantage
of non-critical activities
2, 3 1, 2 0, 2 2
5. Describe the differences between
deterministic and stochastic
scheduling
2, 3 2 0, 2 1, 2

4
AE 4
Cash Flow Table 2, 3 1, 2 0, 2 2
1. Access and download the project Cash
Flow table from instructor’s email, and
update it based on team’s WBS
2, 3 2 0, 2 1, 2
2. Insert planned hours in PV for each of
the first twelve months of the project
2, 3 2 0, 2 1, 2
3. Finalize and print the table and the
graph
2, 3 2 0, 1, 2 2
AE 5
Risk Management Table 2, 3 2 0, 2 1, 2
1. Risk 1 2, 3 2 0, 2 1, 2
2. Risk 2 2, 3 2 0, 1, 2 2
3. Risk 3 2, 3 1, 2 0, 2 2
4. Risk 4 1, 2, 3 2 0, 2 2
5. Risk 5 2, 3 2 0, 1, 2 2
6. Risk 6 2, 3 1, 2 0, 2 2
7. Risk 7 1, 2, 3 2 0, 2 2
WRF Table 2, 3 2 0, 2 1, 2
Risk Response Threshold Table 2, 3 1, 2 0, 2 2
Risk Responses 2, 3 1, 2 0, 2 2
AE 6
Tracking Table 1, 2, 3 2 0, 2 2
1. Take the project Cash Flow Table from
AE4, and verify if the hourly/cost
estimates are captured
2, 3 2 0, 1, 2 2
2. Change title to “Project Tracking
Table”
1, 2, 3 2 0, 2 2
3. Insert hypothetical hours for AC and
EV
2, 3 2 0, 1, 2 2
4. Print a copy for your records 1, 2, 3 2 0, 2 2
AE 7
Project Monitoring and Control Plan 2, 3 2 0, 2 1, 2
1. Conduct Regular Project Status
Reviews
2, 3 2 0, 1, 2 2
2. Implement a Cybernetic Control
Process
2, 3 2 0, 2 1, 2
3. Implement a Project Change Control
Plan
2, 3 2 0, 2 1, 2
AE 8
Procurement Plan 2, 3 1, 2 0, 2 2
1. Describe how to determine which
portions of the project should be
outsourced
2, 3 1, 2 0, 2 2

5
2. Describe how to organize and staff a
Procurement Management Team
(PMT)
1, 2, 3 2 0, 2 2
3. Describe responsibilities that are given
to the PMT
1, 2, 3 2 0, 2 2
3.a Development of Request-for-
Proposals (RFPs)
2, 3 1, 2 0, 2 2
3.b Selection of best bidders 2, 3 1, 2 0, 2 2
3.c Monitoring and controlling
subcontractors
1, 2, 3 2 0, 2 2
3.d Ways of getting regular status of all
subcontractor efforts
2, 3 1, 2 0, 2 2
AE 9
Close-Out Report 2, 3 2 0, 1, 2 2
1. Post-project Review Agenda and
Guidelines
2, 3 2 0, 1, 2 2
2. Post-project Review Report 2, 3 2 0, 2 1, 2
3. Client Satisfaction Assessment 2, 3 1, 2 0, 2 2
4. Project History File Guidelines 1, 2, 3 2 0, 2 2
5. Project Summary Report 2, 3 2 0, 1, 2 2
Presentation in Class
PPT 2, 3, 4 2, 4, 6 0, 1, 2, 5 2, 4, 5
Final Paper Handout 2, 3 2 0, 2 1, 2
Application Exercise Booklet 1, 2, 3 2 0, 2 2
Legend
0 = Overall team leader (optional)
1 = Document originator
2 = Document reviewer
3 = Final paper organizer/editor
4 = Presentation topic researcher
5 = Presenter
6 = Presentation slide preparer

6
Project Charter
Project Name: HTTP Sponsor: Ken Martinez
Project Manager: Date: April 13, 2014
1. Project Authorization
The Board of Directors of NoKlue Incorporated hereby authorizes Team Funtastics to
manage the design, construction, and testing of a new High-Tech Theme Park project
(HTTP). HTTP will be completed within two years from the date of this authorization.
The scope of the project will be limited to the agreed and approved requirements unless
otherwise authorized by the Board. Team Funtastics will operate as prescribed by the
Policy Statement. The Board reserves the right to terminate the services of any team
member at any time if it believes that such action would be in the best interest of the
project.
On behalf of NoKlue Incorporated
_____________________Ken Martinez_____________________
Ken Martinez, Project Sponsor
2. Project Manager Authorization
NoKlue Incorporated authorizes Project Management Team Funtastics to fulfill the
following roles and responsibilities:
 Manage contributors responsible for the design, construction, and testing of HTTP.
 Ensure that HTTP complies with state and federal building code regulations,
including Occupational Safety and Health Administration (OSHA) standards and
Environment Impact Assessment (EIA).
 Ensure that the completed structure meets the specifications and regulations by
means of thorough review and complete approvals by project stakeholders.
 Support and manage the overall project implementation responsibilities for planning,
organizing, staffing, directing, coordinating, risk assessing, budgeting, and
controlling.
 Oversee and support the entire project lifecycle.
 Manage PTCR.
 Plan and request resources.
 Facilitate technical decisions.
 Resolve conflicts.

7
3. Key Stakeholders
Stakeholder Role and Function
Project Sponsor
Ken Martinez
- Authorizes the project.
- Approves the project budget.
- Is accountable for project success.
- Approves project deliverables.
Chief Financial Officer (CFO)
Chi Yang
- Manages the project budget and funding.
- Is responsible for processing project payments
for eligible expenditures.
Head of Functional Managers
Matt Washington
- Coordinates functional collaboration between
functional units.
- Develops specifications.
- Identifies organizational impact areas.
- Identifies opportunities and manages
resources.
- Challenges old rules of the business and
proposes stimulating creative thinking.
- Reports to project manager.
Customer, Head of Santa Cruz
Business Management Department
Ayah Habib
- Ensures that product requirements are met.
- Approves the final design.
- Signs contract.
- Monitors the progress and process compliance.
Project Manager
Funtastics
- Manages the overall project.
- Drafts and reviews the project charter.
- Develops and manages the project plan.
- Secures appropriate project resources.
- Delegates and tracks project work.
- Ensures successful project completion.
- Manages project team communication.
- Communicates with all the stakeholders.
Legal - Drafts/reviews the project contract.
- Ensures legal and regulatory compliances.
- Provides PM with relevant documentation.
OSHA, EIA - Provide approvals based on inspections and
environmental impact assessments.
Team Leaders - Analyze, design, and ultimately improve or
replace the business processes.
- Collaborate with teams to develop high-level
process designs and models.
- Understand best practices for processes.
- Partner with team members to identify
appropriate opportunities, challenge old rules of
the business, and stimulate creative thinking.
- Identify organizational impact areas.

8
4. Project Goals
 Design, develop, and test a new High-Technology Theme Park (HTTP) within 2
years from the date of contract. HTTP must be located along the beach in Santa Cruz,
California.
 Develop HTTP for educating people in the field of computer science, biotechnology,
engineering, information technology, pharmaceuticals, healthcare, business finance,
internet applications, biology, medicine, aerospace, and oceanography.
 Ensure that the project will resemble the existing Great America Park regarding
entertainment, rides, food, services, and all the necessary management areas.
5. Project Priorities
1. Meet the customer to discuss the detailed scope.
2. Negotiate the PTCR objectives with the Santa Cruz Business Management
Department.
3. Sign the contract with the customer for the design and development of HTTP.
4. Prepare the detailed design of HTTP in compliance with state and federal building
code regulations, Occupational Safety and Health Administration (OSHA) standards,
and Environmental Impact Assessment (EIA).
5. Estimate project costs.
6. Board the full-fledged project staff.
7. Manage the initial investment fund to run the overheads and meet the project cost
requirements.
6. Scope Statement
Design, construct, and test HTTP within two years upon the request of the Santa Cruz
City Business Management Department.
HTTP will be a single shop for education and entertainment located along the beach in
Santa Cruz, California on a 200-acrea area. It will seek to enthrall and educate guests on
cutting-edge technological disciplines. It will include various attractions, rides, food
services, transportation, security, and efficient management to ensure fun for all age
groups.
While enriching the lives of guests through education, HTTP also aims to advocate
environmental awareness through environmental amenities and green structure. Plant
landscaping will be made in such a design that grabs the attention of all age learners
alike.
Operation and maintenance is not in the scope of the HTTP project. The operation and
maintenance of HTTP will be turned over to the O&M company.

9
7. Product Requirements
 HTTP is fully compliant with state and federal building code regulations,
Occupational Safety and Health Administration (OSHA) standards, and
Environmental Impact Assessment (EIA).
 HTTP is located along the beach in Santa Cruz, California.
 HTTP is constructed with high-tech equipment designed to accommodate education
and entertainment in multidisciplinary fields.
 HTTP is designed on a 200-acre area provided by Santa Cruz County.
 All the equipment in HTTP is tested and inspected.
 HTTP layout is approved.
8. Project Assumptions
 The Project will stay within an agreed budget.
 The Project will be completed within the allotted time.
 Any required permits will be approved without issue.
 All equipment and materials will be obtained without any complications.
 All materials will meet all environmental and safety regulations.
 All necessary contracts will be obtained with required vendors and will be carried
out successfully.
 All subcontractors will have appropriate licenses, certifications, and insurance
coverage required by any federal, state, or local government agency to provide
services for the project.
9. Project Constraints and Boundaries
 Budget: The project will be expensive to complete. Going over the budget could be
an issue.
 Time Constraints: Completing the project on time could also be a constraint due to
delivery dates not being in line with the project milestones; completion date of the
project could be impacted.
 Community Constraints: Getting the community on board with this project could
also be an issue and could ultimately affect the outcome.
 Licenses and Permits: Obtaining the appropriate licenses and permits in a timely
manner.

10
10. Initial Project Risks
Risk Mitigation Risk Assessment
Matrix
(Probability / Impact)
Technical Risks
Feasibility
- Lack of resources
and/or expertise to
adequately design
and develop the
HTTP
- Ascertain available resources in
relation to the project scope and
timeline.
- Employ red teams to provide
feedback based on their own
previous experiences.
- Seek external expert advice when
unable to draw from internal teams.
High
Moderate/Sever
Quality
- Failure to meet
design/theme
specifications
expected by the
customer
- Design flaws
and/or lack of
construction quality
- Have customer define all
requirements as detailed as possible.
- Set milestone meetings with the
customer to review designs and plans
before performing critical tasks.
- Work with a design and
construction team that has a proven
track record.
- Build flexibility into high-risk tasks
to allow for more extensive quality
assurance.
High
Unlikely/Severe
Timeline
- Inability to meet
project milestones
and the two-year
completion date
- Utilize project software to map out
and manage the project schedule.
- Shorten project tasks using proven
methods, for example, exploiting
critical path lead-lag, fast-tracking,
and crashing.
Moderate
Moderate/Moderate
Collaboration
- Poor
communication/han
d-off between
design and
development teams
- Define roles and responsibilities in a
document, for example, OBS.
Low
Moderate/Minor

11
- Loss of project
personnel during the
project having
impact on team
cohesion
- Establish proper channels of
communication and conflict
resolution.
- Create processes for better
coordination between teams.
- Document communications
whenever possible.
Financial Risks
- Failure to meet the
pre-established cost
constraints
- Form strict cost control procedures
to keep a tight budget.
- Hold quarterly budget meetings to
review the financial health of the
project.
High
Moderate/Significant
- Possibility of
budget cuts; is the
funding secure?
- Build sections of the HTTP in
phases.
- Execute a signed contract with the
customer detailing project cost
requirements.
Moderate
Moderate/Moderate
- Changes in T&M
costs over the
duration of the
project
- Obtain fixed cost quotes from all
vendors.
Low
Unlikely/Moderate
Social and Political Risks
- Amendments made
to local, state, or
federal legislation
and/or regulations
- Follow changes in legislation
regularly; collaborate with the Legal
Department.
Moderate
Rare/Significant
- Lack of local
interest in HTTP
after development
due to evolving
trends
- Establish a presence on social media
to keep the public interested in the
project.
Minimum
Moderate/Negligible
Reputational Risks
- Damage to
company reputation
if results are not
delivered as planned
- Have a contingency plan in place in
case the customer is not happy with
the direction of the design and/or
development of HTTP.
Moderate
Unlikely/Significant
- Backlash from
locals and
disgruntled
commuters during
construction phase
- Reduce heavy construction that
would be obstructive for the public
during peak hours.
Low
Possible/Minor

12
11. Deliverables List
 Infrastructure (buildings, parking, roads, utilities)
 Five rides and five attractions
 Services (food, security)
 Transportation (train, shuttle)
12. Cost Estimates
Based on the preliminary estimation, the total estimated budget for the HTTP project is
$100 million. Below is an estimated cost breakdown schedule for the project.
Description Budget in $ million
Project Management 2
Infrastructure 50
Entertainment 33
Transportation 10
Services 5
13. Schedule Estimates
Based on the timeline provided by the Santa Cruz City Business Management
Department, we have an allowance of two years to plan, design, develop, test, and hand
off HTTP to O&M.
Description Duration Completion Date
Project Planning 10 weeks June 8, 2014
HTTP Design and Permissions 32 weeks January 18, 2015
Construction and Development 52 weeks January 17, 2016
Testing and Final Inspection 8 weeks March 28, 2016
HTTP Hand-Off to O&M 2 weeks April 11, 2016
14.Integrated Change Control
The purpose of this section is to define the rules and processes to be followed in case of a
change request.
Any change request must be subjected to the following steps:

13
Change Request Step Stakeholder Action
Recognition Any project
stakeholder
- A need for a change is recognized.
- A Change Request Form is filled in and
sent to the PM.
Assessment PM - The PM reviews the change request and
determines the validity of the request.
Invalid requests will be rejected with no
further action.
- A quick assessment is made of the
potential impact that the change request
will have on the project.
- A decision is made to either advance or
defer the request.
Analysis Project Sponsor
PM
Subject Matter
Experts (SMEs)
- The PM and the SMEs perform a more
detailed analysis of the risk, complexity,
and impact that the change request will
have on the project.
- High risk and high impact change
requests must be escalated to the Project
Sponsor.
- A decision is made whether to defer the
request or send it along for approval.
Approval CFO
PM
Customer
- The PM has the authority to
immediately approve change requests
below $10,000.
Change requests exceeding this amount
must be approved by the CFO.
- Change requests requiring revisions to
the project contract must also be
approved by the Customer.
Implementation PM
FM
- The PM updates plans and procedures
to reflect the approved changes.
- Changes are communicated to the
project team.
- The FM increases or shifts personnel
resources to accommodate the change.
- The change request is carried out and
closed when the task is complete.

14
15. Success Criteria
This project will be considered a success if the following criteria are met.
 HTTP must be designed to have a high-tech theme while resembling the existing
California Great America Park.
 Park attractions should facilitate the education of guests in the fields of computer
science, biotechnology, engineering, information technology, pharmaceuticals,
healthcare, business finance, internet applications, biology, medicine, aerospace, and
oceanography.
 The entire 200-acre allotted space is efficiently spaced and utilized.
 HTTP is built according to local, state, and federal code, and it passes the final city
inspection.
 OSHA standards are enforced throughout the duration of construction and
development. No severe injuries or casualties are suffered.
 The project concludes within the two-year timeline and comes under the $100
million budget.
 HTTP is handed off to the O&M company according to agreements.

15
Key Stakeholder* Responsibility Assignment/Allocation Matrix
(Key Stakeholder RAM)
Responsibility PM Sponsor CFO FM Customer Legal OSHA, EIA TLs
Meet project goals 1 2, 3, 4 2, 3 2, 4 2 2, 3 2, 4
Issue CPIDs 1 2, 3 2 2 2 2, 4 4
Define HTTP
requirements
2 3 2 1 2, 3
Provide skilled personnel 4 2, 4 1 2, 4
Develop project plan 1 3 2, 3 2 3 2, 4 2, 4
Provide funding to project 3 1
Control changes to plan 1 3 3 4 3 2, 4 2, 4
Ensure law compliance 3
Legend
*NoKlue Incorporated Key Stakeholders:
 Project Manager (PM): Team Funtastics
 Project Sponsor: Ken Martinez
 Chief Financial Officer (CFO): Chi Yang
 Head of Functional Managers (FM): Matt Washington
 Customer: Head of Santa Cruz City Business Management Department,
Ayah Habib
 Legal: Legal and Compliance Group
 OSHA, EIA: Occupational Safety and Health Administration (OSHA) and
Environment Impact Assessment (EIA) – governmental authorities
 Team Leaders (TLs): Project Team Leaders
1 = Primary responsibility
2 = Provides input
3 = Approval authority
4 = Overall support

16
Communication Plan
Stakeholder Information Needed Frequency Medium Response
PM
From TLs
Status reports Weekly E-mail and
weekly status
meetings
2 days
Sponsor
From PM
High-level cost, schedule,
quality, performance, major
problems and planned
solutions, assistance
required
Monthly Meeting and brief
summary report
3 days
CFO
From PM
Project cost reports Monthly E-mail 5 days
FM
From PM
Major problems and planned
solutions, personnel
performance
Bi-weekly E-mail 2 days
Customer
From Sponsor
High-level cost, schedule,
quality, performance, major
solutions, required actions
Monthly Meeting and brief
summary report
5 days
Legal
From PM
HTTP requirements Bi-weekly
during
planning
Monthly
during
execution
E-mail 3 days
TLs
From PM
Detailed cost, schedule,
quality, performance,
solutions, news from
customer and sponsor
Weekly E-mail and
weekly status
meetings,
meeting minutes
1 day
Legend
 Project Manager (PM): Team Funtastics
 Project Sponsor: Ken Martinez
 Chief Financial Officer (CFO): Chi Yang
 Head of Functional Managers (FM): Matt Washington
 Customer: Head of Santa Cruz City Business Management Department,
Ayah Habib
 Legal: Legal and Compliance Group
 Team Leaders (TLs): Project Team Leaders

17
PROJECT WORK BREAKDOWN STRUCTURE
Work Breakdown Structure
0.0
HTTP
100%, 240,000 h
1.0
Project
Management
25%, 60,000 h
4.0
Transportation
10%, 24,000 h
2.0
Infrastructure
30%, 72,000 h
3.0
Entertainment
30%, 72,000 h
5.0
Services
5%, 12,000 h
1.1
Scope
6%, 14,400
h
1.4
Quality
4%, 9,600 h
1.2
Time
5%, 12,000 h
1.3
Cost
5%, 12,000 h
2.1
Buildings
20%, 48,000 h
2.2
Roads
4%, 9,600 h
2.3
Utilities
6%, 14,400 h
3.1
Rides
15%, 36,000 h
3.2
Attractions
15%, 36,000 h
4.1
Train
4%, 9,600 h
4.2
Shuttle
6%, 14,400 h
5.1
Food
2%, 4,800
h
5.2
Security
3%, 7,200
h
1.5
Risk
5%, 12,000 h

18
1.1 Scope 6%, 14,400 h
1.1.1 Scope management plan 1%, 2,400 h
1.1.2 Requirements gathering 2%, 4,800
1.1.2.1 Documentation 1%, 2,400 h
1.1.2.2 Traceability matrix 1%, 2,400 h
1.1.3 Scope definition 1%, 2,400 h
1.1.4 Work Breakdown Structure 1%, 2,400 h
1.1.5 Scope control 1%, 2,400 h
1.2 Time 5%, 12,000 h
1.2.1 Schedule management plan 1%, 2,400 h
1.2.2 Activities 2%, 4,800 h
1.2.2.1 Definition and sequencing 1%, 2,400 h
1.2.2.2Resources and duration estimation 1%, 2,400 h
1.2.3 Schedule development 1%, 2,400 h
1.2.4 Schedule control 1%, 2,400 h
1.3 Cost 5%, 12,000 h
1.3.1 Cost management plan 1%, 2,400 h
1.3.2 Cost estimation 2%, 4,800 h
1.3.3 Budget determination 1%, 2,400 h
1.3.4 Cost control 1%, 2,400 h
1.4 Quality 4%, 9,600 h
1.4.1 Quality management plan 1%, 2,400 h
1.4.2 Quality assurance 2%, 4,800 h
1.4.3 Quality control 1%, 2,400 h
1.5 Risk 5%, 12,000 h
1.5.1 Risk management plan 1%, 2,400 h
1.5.2 Risk identification 1%, 2,400 h
1.5.3 Risk analysis 1%, 2,400 h
1.5.4 Risk responses 1%, 2,400 h
1.5.5 Risk control 1%, 2,400 h

19
2.1 Buildings 20%, 48,000 h
2.1.1 Permits 1%, 2,400 h
2.1.2 Administrative/office 3%, 7,200 h
2.1.2.1 Design 1%, 2,400 h
2.1.2.2Construction and test 2%, 4,800 h
2.1.3 Merchandise/shops 5%, 12,000 h
2.1.3.1 Design 1%, 2,400 h
2.1.4 Restaurants/cafeterias 5%, 12,000 h
2.1.4.1 Design 1%, 2,400 h
2.1.5 Attractions/rides/theaters 6%, 14,400 h
2.1.5.1 Design 2%, 4,800 h
2.2 Roads 4%, 9,600 h
2.2.1 Roads and parking lots around the park 2%, 4,800 h
2.2.1.1 Design 1%, 2,400 h
2.2.2 Roads inside the park 2%, 4,800 h
2.2.2.1Design 1%, 2,400 h
2.3 Utilities 6%, 14,400 h
2.3.1 Electricity 1%, 2,400 h
2.3.2 Water 2%, 4,800 h
2.3.3 Sewage 1%, 2,400 h
2.3.4 Gas 1%, 2,400 h
2.3.5 Telecommunication 1%, 2,400 h
Most of the WBS items are broken down to 1 - 3% (2,400 – 7,200 h) of the total hours. The only
items that are 9,600 hours are 2.1.3.2, 2.1.4.2, and 2.1.5.2 (construction and test). These were kept
together for the sake of consistency and briefness with the other items in this outline, but of
course, in reality these items would be broken further down, for example:
2.1.3.2.1 Construction 3%, 7,200 h
2.1.3.2.2 Test 1%, 2,400 h
The rides and attractions are the educational venues. Their purpose is to educate people in the
fields listed under Project Goals in the Project Charter.

20
3.1 Rides 15%, 36,000 h
3.1.1 4D motion ride 4%, 9,600 h
3.1.2 Infinite loop ride 4%, 9,600 h
3.1.3 Gravitation craze maze 2%, 4,800 h
3.1.4 High-tech thrill ride 3%, 7,200 h
3.1.5 Intergalactic ride 2%, 4,800 h
3.2 Attractions 15%, 36,000 h
3.2.1 Hologram theater 4%, 9,600 h
3.2.2 Interactive 360 projections dome 3%, 7,200 h
3.2.3 Geek peek cave 3%, 7,200 h
3.2.4 Hover board room 2%, 4,800 h
3.2.5 Futuristic lab 3%, 7,200 h
4.1 Train 4%, 9,600 h
4.1.1 Railway 2%, 4,800 h
4.1.2 Stations 1%, 2,400 h
4.1.3 Ticket vending machines 1%, 2,400 h
4.2 Shuttle 6%, 14,400 h
4.2.1 Stops 4%, 9, 600 h
4.2.2 Ticket vending machines 2%, 4,800 h
5.1 Food 2%, 4,800 h
5.1.1 Restaurant/catering equipment 1%, 2,400 h
5.1.2 FDA compliance 1%, 2,400 h
5.2 Security 3%, 7,200 h
5.2.1 Surveillance system 2%, 4,800 h
5.2.2 Alarm system 1%, 2,400 h

21
PROJECT SCHEDULE
Project Schedule Management Plan
1. Describe how to develop the schedule.
A project schedule must take into consideration the contents of the project
Work Breakdown Structure (WBS), Organization Breakdown Structure
(OBS), Responsibility Allocation Matrix (RAM), and Network Diagram. It
is highly recommended to use Gantt Charts as a tool to visualize the project
schedule for means of project tracking.
WBS
The WBS identifies all the tasks in a project and breaks down the project
into separate tasks: summary tasks and work packages. The summary task
is not executed; it only summarizes the subordinate work packages. The
work packages are executed.
The WBS must be broken down starting at the top to the lowest
decomposition level. It is a hierarchical diagram of the entire project. It
decomposes a complex project into smaller, more manageable parts. The
highest level is called the root level (level 0 or level 1), and the lowest levels
are the work packages. The size of work packages depends on the following
rules:
 8/80
The lowest level is between 8 hours and 80 hours.
 Reporting Period
No task is longer than the time between project status meetings.
 If It’s Useful
It makes no sense to break it down further.
 100% Percent
The lowest level is approximately 1% of the total labor hours or total
cost.

22
OBS
The OBS is a hierarchical diagram. It typically depicts the overall
organization of the project members, usually with the project manager at
the top, the team leaders at level 2, and the individual team members below
level 2. Staff members may also be included. It is similar to the WBS in
terms of decomposition to reach to the lower level, but it differs in nature as
it is focused on the organization’s functional departments.
The OBS is helpful in resource planning and estimation. It shows clear lines
of responsibility and reporting within the project. As a rule of thumb, there
should be no more than about six people reporting directly to the project
manager.
RAM
It is a key responsibility allocation tool for the organization. It defines
responsibilities and accountabilities to all project stakeholders and the
team. The RAM is a matrix which relates the OBS to the WBS to help
ensure that each element of the WBS is assigned to a responsible individual.
The primary purpose of using a RAM is to avoid role confusion in projects.
There can be three levels of RAMs:
 primary stakeholder RAM
 project management team RAM
 individual team RAM
Network Diagram
A project network diagram is a flowchart that mentions the sequence in
which a project’s non-summary activities are to be completed, showing all
their dependencies. The network diagram is an excellent tool for planning
and replanning project activities sequencing, and it also identifies the
project’s critical path. Upon completing the construction of the network
diagram, the activities which represent the longest path from project start
to project end, are identified. That means if any of the critical path activities
slips, so does the project completion date.

23
2. Describe how to ensure that the schedule is accurate and complete.
To ensure that a project schedule is accurate and complete, it is important
to reference historical data, conduct parity checks, orchestrate a
red-team/tiger-team review, and complete a final plan review.
The Red Team / Tiger Team members are usually individuals who have
specific scheduling knowledge and do not belong to the schedule owner's
project team. The Red Team / Tiger Team ensures that the proposed
schedule is accurate and complete by identifying any incorrect activity
durations, incorrect activity sequencing, missing activities, incorrect
resource allocations, and schedule risk areas.
Additionally, it is valuable to consider the six techniques elaborated by
Wysocki for estimating task duration. The main principle of applying these
six methods is to reduce the variation from the optimistic and pessimistic
estimates to achieve the closest realistic estimation.
 similarity to other activities
 expert advice
 Delphi technique
 three-point technique
 wide-band Delphi technique
 studying historical data
3. Describe when and how to use schedule compression techniques.
Schedule compression techniques are typically used either when a project
sponsor pulls up the completion date without reducing project scope, or
when the project team falls behind but wants to finish on time.
There are three suggested compression techniques:
 exploiting critical path lead-lag times
Allows to change the lead-lag time to achieve a project schedule
accepted by the project sponsor or customer.
Exploiting lead-lag times along the critical path is one of the best
ways to reduce the project’s duration. This technique is normally free
from time and cost risks. It looks parallel in configuration, and task
duration is unchanged to the estimation.

24
The lead-lag time approach is the most common project scheduling
technique. Lead-lag times are applied during network analysis to
develop a viable schedule by adjusting the start time of the successor
activities.
̶ Finish to Start
The first task must finish before the second task can start.
̶ Start to Start
The first task must start before the second task can start.
̶ Start to Finish
The first task must start before the second task can finish.
̶ Finish to Finish
The first task must finish before the second task can finish.
 fast-tracking the critical path
Is the process of forcing an overlap while realizing an acceptable
increase in risk.
It is a schedule compression technique in which activities or phases
that are normally done in sequence are performed in parallel. It is
applied to critical path activities to reduce the project’s remaining
duration.
Fast-tracking the critical path might lead to some potential cost
increase with some risks, which could be acceptable. This approach is
applied whenever there is time pressure to accomplish the goal to the
acceptable threshold. Fast-tracking only works if activities can be
overlapped to shorten the project duration.
 crashing the critical path
Means adding resources and time, thus normally incurring extra cost.
This technique has a challenging time pressure and it might lead to
possible cost risks or budget overrun, but it could be helpful to
accomplish the project in a short duration of time.
This technique may demand extra resources to manage the crash time
and may need additional efforts beyond the normal week hour.

25
While implementing a crashing technique, the following precautions
must be taken:
̶ Accurate time - cost relationships must be known.
̶ Time must have a higher priority than cost.
̶ Critical path period reductions may bring other paths into the
time-cost tradeoffs.
̶ Keep human factors in mind (availability, fatigue)
4. Describe why the critical path is important and how to take advantage
of non-critical activities.
The critical path is defined as all of the tasks with zero or negative float and
is typically the longest path on a network diagram. The critical path
demonstrates the minimum time the project will take to complete. This is
important to know so that project teams can make educated scheduling and
resource decisions if a project sponsor pulls in the completion date or if the
team falls behind schedule.
Sometimes in the project schedule something happens or an unavoidable
situation comes that puts the project plan at risk, and the project manager
has to cope with serious difficulties to control the project schedule slippage.
For example, late shipments from the suppliers, equipment malfunctions,
sickness, natural disasters, or customer change requests. The critical path of
the project will consequently be affected in such situations. In those cases,
the resources from the non-critical path activities can be allocated to the
activities that slipped.
These non-critical path activities may be in the same project in which the
slippage occurred or they may be in another project of the same project
manager. So the project manager can take advantage of the non-critical
tasks to control/correct the critical task slippage.

26
5. Describe the differences between deterministic and stochastic
scheduling.
Deterministic Estimating – assumes that project schedule activity durations
have no uncertainties, so only one estimate is made. However, most project
schedules contain activity duration uncertainties, which means that this
method will establish a project duration which is unrealistic.
Stochastic Estimating – takes uncertainty into account by using a statistical
approach based on three estimates for activity durations. The project
duration is then based on estimates which include uncertainties, and it will
establish a project duration which is more accurate.
The stochastic estimation is a simulation that involves calculating multiple
project durations with different sets of activity assumption, usually using
probability distributions constructed from the three-point estimates to
account for uncertainty. The most common technique is the Monte Carlo
analysis, in which a distribution of possible activities duration is defined for
each activity and used to calculate a distribution of possible outcomes for
the total project.
The stochastic estimation can be done in a spreadsheet or with MS Project.
Optimistic, pessimistic, and most likely times are taken into consideration.
The optimistic time is the shortest duration one has experienced or might
expect to experience given that everything happens as expected. The
pessimistic time is the duration that one would experience if everything
that could go wrong will most likely go wrong, however, the task was
completed. The most likely time is the estimation for the time experienced.
The equation below shows the relation between optimistic, pessimistic, and
most likely time estimations:
E = O+4M+P
6
E = Estimated
M = Most likely
O = Optimistic
P = Pessimistic

27
PROJECT CASH FLOW TABLE
Cash Flow Table
(cont.)

28
(cont.)

29

30
Justifications of the estimated cost and schedule
Quality assurance is a continuous process throughout the project design, development, and
handover, so the remaining cost is assumed to be spent over the period.
The Risk Management Plan is to be revised and updated throughout the project implementation
period, so the remaining cost is also estimated to be spent in the second year.
Out of the $50 million budget allocated to infrastructure, the major part is to be spent on the
buildings and roads as follows: more than 80% in the first year and the rest in the second year.
However, the other major infrastructure costs (for example, entertainment, transportation, and
services) are assumed to be spent in the second year.

31
PROJECT RISK MANAGEMENT PLAN
Risk Management Table
Risk Description Statement (Risk/Impact)
Risk 1:
Contractors and vendors (labor/material delay) that impact project scope,
schedule and cost
Risk 2:
Structural/aesthetic flaw in design that impacts project scope, schedule and cost
Risk 3:
Internal resources risk (short staff) that increases project scope and schedule
Risk 4:
Operational risk (death/serious injury on site) that impacts company reputation
and team morale
Risk 5:
Technological risk (technology roadblocks) that impacts cost to resolve technical
roadblocks
Risk 6:
Natural disasters (earthquake, tsunami, or fire) that impact projects schedule and
cost
Risk 7:
Damage to reputation (community protest) that impacts project feasibility

32
Weighted Risk Factors (WRF) Table
Risk Response Threshold Table and Risk Responses
Risk No. WRF Risk Level Risk Response Mitigation Plan
1 0.7248 High Transfer Include frequent status update points
early in the project. Develop an
alternate schedule with margin,
allocate contingency fund to cost
overruns with the schedule, and
develop communication plan for
increased monitoring and coordination
activities with the equipment vendors.
2 0.566 Moderate Reduce Hire Subject Matter Experts (SMEs),
for example, experienced architects
and design engineers, conduct periodic
chicken tests, communicate frequently
with the community for the best
aesthetic design views and
perceptions, and modify the design
plans appropriately.

33
3 0.4984 Moderate Transfer Hire people with attractive salary and
benefits, prepare HR plan with margin
in schedule, and make a contingency
plan for alternate staff contracting
service agency.
4 0.426 Moderate Prepare
contingency plan
Purchase reliable insurance, hire
skilled operators from the company
leasing the equipment, and conduct
safety training.
5 0.4008 Moderate Monitor/prepare
contingency
plan/transfer
Probability and consequences are low.
The project team reacts to the risk
if/when it occurs.
6 0.161 Low Accept As the risk could be beyond the project
team's control, prepare the
contingency plan for safety measures
and tips during the disasters, do the
training, and elaborate a post-disaster
recovery plan.
Insurance provisions and coordination
with the government agencies for
quick response and relief strategies
will be adopted.
7 0.0534 Low Accept Probability and consequences are low.
The project team reacts to the risk
if/when it occurs.
Sources
- The Project Manager's Survival Handbook
- The Fast Forward MBA in Project Management, Fifth Edition
Note
Risk response strategies (according to Verzuh): accept, avoid, monitor and
prepare contingency plan, transfer, and mitigate

34
PROJECT TRACKING
Tracking Table
(cont.)

35
(cont.)

36

37

38
PROJECT MONITORING AND CONTROL
Project Monitoring and Control Plan
Conducting Regular Project Status Reviews
 How often to conduct HTTP project status reviews
The cadence and duration of project status review meetings depend on the
audience.
Core team status meetings will take place weekly on Tuesdays for no longer
than an hour. Extended team meetings with key stakeholders will occur on
a biweekly or monthly basis as stated in the communication plan.
 Who to attend the project status reviews
Project status review meetings are tailored to two audiences: core team and
extended team. The core team includes the project manager and team
leaders, whereas the extended team includes all key stakeholders.
Other team members will be informed through the meeting minutes via
email as agreed in the communication plan.
 What to expect to accomplish during these reviews
Regular project status review meetings are held to encourage the flow of
information: gather information from the team and distribute all the
necessary information to the team.
The following should be achieved: present the “big picture”, review the
overall status of the project, identify variances from the project baseline
(project plan), develop corrective actions, recognize exceptional performers,
encourage and assist lagging performers, identify both current and potential
problems, and require recovery plans.

39
 What to include on the project status review meeting agenda
The agenda structure should aim to remain consistent week over week;
however, as the project develops, the agenda may be tailored to address new
issues/topics.
Agenda items may include: top project concerns, accomplishments since the
last review, project schedule status, project cost/labor status, product
development status, risk abatement activities, potential problem areas, and
project-level action items.
Implementing a Cybernetic Control Process
 How to establish an accurate agreed-upon control baseline
In the planning phase, all stakeholders involved in the execution side will
meet to develop the baseline, key assumptions, clarifications, and any key
exclusion. During the process, the project management team and the
department leads will provide input which will be documented to develop
staffing plans, schedules, risk registers, and so on.
These documents will form the project baseline that all the stakeholders
agreed to and based on which the project execution can start.
When the baseline documentation has been finalized, reviewed, and agreed
upon, appropriate team members will be provided a copy for use to track,
measure, forecast, and report against.
 How to measure the actual work accomplished
There are three ways to measure actual work:
- Percent complete
The percent of the activity completed is the percent of the EV
given.
- Earned-standards rule
EV is based on some earned standard, such as lines of code
completed, number of manual pages completed, number of
engineering drawings completed, and so on.

40
- Weighted milestones rule
Giving an assigned weighted value of the EV when an activity is
started and the remaining weighted-value when it is completed.
Weighted values may be 50/50, 30/70, 20/80, or 0/100.
In the HTTP project, the preferred way of measuring actual work will be the
weighted milestone rule 20/80.
 How to identify variances from the approved baseline
Variances from the baseline can be identified based on variance
identification reports that:
- Are produced by project schedule software (for example, MS
Project)
- List all activities that are behind schedule
- List all activities that are overrunning costs
 How to take corrective actions to unacceptable variances
Corrective actions to unacceptable variances will be taken based on
correction reports. These reports will be written by the problem “owner”
and will include:
- Recovery actions necessary to get back on track
- Root causes of the problem
- Estimate to complete (ETC)
Recovery actions can be:
- Soft (no added cost): reorganizing, improving procedures, moving
non-critical path resources to critical path (if no increase in labor
hours), scope reduction, exploit lead-lag times, fast-track
schedule, working more hours (if not paid overtime)
- Hard (added cost): adding more resources, premium procurements
of Commercial Off-the-Shelf (COTS) parts, adding incentives,
moving non-critical path resources to critical path (even if
increase in labor hours), outsourcing

41
Implementing a Project Change Control Plan
 How to review and accept or reject proposed changes to the project plan
(schedule, budget, scope, and so on)
Responses to project changes are dependent on the severity of the changes
requested. If the requested changes impact the CPI or SPI, then the change
will have to be captured in the change control form and authorized by the
Change Control Board (chaired by the PM).
Each change request will be assessed as it is important to know how the
change is going to impact the deliverable(s) and what the reason for the
change request is. Changes will be assessed based on the following
questions:
- What are the benefits of the change?
- How would the change affect cost?
- How would the change affect schedule?
- How would the change affect the product’s quality?
- Is the change out of scope?
- Will the change impact any other activities?
- Can the change be deferred to the next product version?
- Does the change satisfy a customer’s need in a better way?
After the change assessment the project management team will use
integrated change control (configuration management). This control
technique establishes an orderly process for formal review and approval of
all baseline changes.
Proposed changes will be tracked and approved changes will be
disseminated to project teams through configuration status accounting
(change tracking).
 How to involve the key stakeholders when certain changes require their
approval
The key stakeholders (project manager, change originator, experts, all who
are impacted by the change, for example, customer and sponsor) will be
members of the Change Control Board.

42
 How to implement approved changes so that everyone becomes aware of
them and follows them
Approved changes will be documented and distributed among team
members. Configuration status accounting done by the “configuration
manager” will be used, which will record and document approved changes,
track pending changes, provide a change audit trail, track fee recovery
status of subcontracts, and capture and disseminate all changed baseline
documents.
Change control documents will be used, for example, customer
requirements, design disclosure documentation, engineering drawings, and
specifications.

43
PROJECT PROCUREMENT PLAN
Procurement Management Plan
How you intend to determine which portions of the HTTP project are to be
outsourced
The first step for NoKLue is to make a Business Requirement Document (BRD) to
ensure defining the HTTP requirements for a successful project implementation.
One of the major documents included in BRD is a Procurement Management Plan.
The Procurement Management Plan is a foundational document used for
outsourcing project requirements. The Procurement Management Plan supports
the project management team to make or buy decisions. It defines the following
important outsourcing activities:
 Procurement goals
 PMT member roles (RAM)
 Competitive vs. sole-source rationale
 List of potential bidders
 Subcontractor selection method
 Procurement risk management plan
 Subcontractor monitoring and control methods
While proceeding with the requirements, the most important tool and technique
is to use the Make or Buy Analysis. It is a method of determining whether project
needs can be created by the project team or must be obtained from outside the
project team.
While simple in concept, a Make or Buy Analysis assesses a variety of factors to
determine whether it is more cost effective and efficient to make or buy. The key
analysis is done in comparing the project triple constraints and balancing the
trade-off among cost, schedule, and quality.
Based on situational analysis and the WBS, the following portions could be logical
to outsource:

44
 Rides and attractions
HTTP is a complex structure consisting of sophisticated technologies, so
the internal core competencies (constructions) will not be sufficient to
provide the possible solutions for planning, designing, constructing, and
testing the technology-based rides and attractions. Thus, consultants,
external subject matter experts, engineers, field workers, designers and
architects, and business analysts need to be involved who have expertise
in the relevant fields.
 Infrastructure building
It will be more cost effective to outsource the building of infrastructure
to a contractor because if the HTTP internal team took on this job, it
might cause too much stress on internal resources, thus impacting the
project. Infrastructure jobs may include buildings, roads, and utilities.
How you intend to organize and staff a Procurement Management Team
(PMT)
Procurement management is a process required to acquire goods and services, to
attain project scope from outside the performing organization. The team who
manages procurement is called Procurement Management Team (PMT).
Project managers usually organize PMTs within the project to oversee and manage
all subcontractors. A PMT is an organization of stakeholders in Project
Procurement Management to serve as an evaluator of sellers and seller proposals as
a part of the seller selection committee. In brief, PMT applies source selection
criteria using proposal evaluation techniques to seller proposals submitted to the
project organization in response to procurement documents in order to determine
selected sellers.
A PMT is typically composed of:
 project manager, administrator, technical lead – key roles
 coordinator, on-site representative, specialists (as required), documentation
managers – supporting crucial members

45
Procurement Management Team Small Medium Large
PMT Leader No Planning only Yes
Tech Leader Yes Yes Yes
Administrator Yes Leader Yes Leader Yes Supportive
Coordinator Initial Planning Periodic Support Yes
Engineer No Optional Optional
On-site Representative Periodic Support Periodic Support Yes
Documentation Manager No Periodic Support Yes
PMT Team Compositions and Roles Chart ©Jeff Schlageter, The Project Manager’s Survival Handbook
The members of the HTTP PMT will be the team comprised of aforementioned key
stakeholders led by the PM.
What responsibilities you intend to give to the PMT
The key responsibilities of the PMT is to execute outsourcing successfully and
award the contract. In order to do so, the PMT has to:
 Prepare RFP documents
 Solicit and select the best bidder(s)
 Negotiate the best price
 Monitor and direct subcontractors
 Ensure contract compliance, early problem detection and resolution
 Provide subcontractor status to project manager
 Ensure timely subcontract completion
 Develop the Request-for-Proposals (RFPs)
 Monitor and control the subcontractors
 Development of the Request-for-Proposals (RFPs)
The RFP is a document developed for the selection of bidder(s). It is an
evaluation tool focused on best value. It is used to request responses from
prospective sellers when the requirement documentation and procurement
statement of work are well defined but where the buyer is seeking to
understand seller capabilities. This document enables the objective and
qualitative evaluation of seller responses that meet the requirements stated
in the RFP. It contains the following:

46
̶ Subcontract Statement of Work (SSOW) – Defines a scope, product
service acceptance criteria, terminology, subcontractor’s document
requirements, and WBS of outsourcing activities. Details of activities
are included in the RFP.
̶ Procurement Schedule – Is the timeline of outsourcing activities. It
determines when to call for the bidding, ask for proposals, contract
and close out the procurements, and so on. It includes all the
timelines from SSOW to product design, construction, testing, and
delivery date.
̶ Procurement Specifications – Are the key features of products and
services to be procured. Specifications should be accurate, concise,
and clear.
̶ Contract Term and Conditions: Contract Terms and Conditions
defines all legal aspects of the contract. It is included in RFP to make
assurance to both buyer and seller to settle any disputes if arise
during the contract implementation. It includes, Period of
performance, Contract type, Incentives to the seller, payment
conditions, latent defects, breakages, proprietary rights, warranties,
insurance, key subcontractors personnel, lower-tier supplier liens,
contract change provisions, condition of contract termination,
proposal preparation instruction to the seller and so on.
The RFP is a comprehensive document which elaborates every statement of
work including contract terms and conditions. This document is developed
by the buyer to outsource the contractor transparently, competitively, and
smoothly. The seller will be able to propose their most competitive price
and quality based on the specifications and requirements mentioned in the
RFP.
 Selection of the best bidders
Selecting the best bidder is one of the challenging jobs in HTTP. Given the
time constraint, most of the small-value outsourcing should be based on the
sole-source (single-source) selection method. However, for high value
procurement with a threshold more than $50,000, it is advisable to go for a
competitive selection process. This is to ensure both competitive cost and
quality.

47
The decision on which method to choose is based on the following criteria:
efficiency, transparency, economy, quality, time, and value for money.
Both selection methods have advantages and disadvantages.
The sole-source selection method does not provide the benefits of
competition in regard to quality and cost, sometimes it lacks transparency,
and could encourage unacceptable practices. Therefore, sole-source
selection should be used only in exceptional cases taking into consideration
the overall interests of the buyer and the project, and buyer’s responsibility
to ensure economy and efficiency and provide equal opportunity to all
qualified bidders.
The most important advantage of the competitive selection is that the buyer
may get a lower best price and better negotiation power. However, sole-
source selection has slower acquisition and higher cost of acquisition.
Usually, competitive outsourcing is more time consuming than going to
sole-sourcing. Sole-sourcing, on the other hand, offers a quicker way to get
subcontractors on board, but it has the disadvantage of negotiating with a
corporation that knows it is the only source.
 Monitoring and controlling the subcontractors
Monitoring and controlling the subcontractors signifies the end of the
procurement phases of project procurement management and the beginning
of the post-award phase activities of contract management and
administration. The buyer and seller must administer the procurement
agreement to ensure that the contracting parties meet their contractual
obligations and that their respective rights are protected.
The monitoring and controlling is mainly focused to ensure whether the
deliverables and milestones are met as per the provision of the contract and
the buyer should ensure that the payments are being made as per the buyer
obligations based on the deliverables and milestones provisioned in the
contract document.
The monitoring and controlling of the subcontractor can be done by using
the following tools and techniques:

48
̶ Telephone calls
o To obtain status of subcontract product
o Usually weekly
o Initiated by subcontractor PM
o Regular call agenda
̶ Reports verification and validation
o To summarize phone call discussions
o Usually weekly
o Include schedule and cost reports
̶ Meetings; generally based on the mutual understanding between the
parties or as per provision of the contract
o Review schedule, cost, and technical status
o Convey importance of subcontract to project
o Examine the product as it develops and ensure it complies
with the standard specifications and requirements
o Usually monthly
o Conducted at subcontractor’s facility
The monitoring and controlling efforts are the key activities to ensure the bidder
performance as per requirements of HTTP or buyer.
 How you expect to get regular status of all subcontractor efforts
The status of the subcontractor is measured based on the progress reports
submitted to the buyer and verification of the performed scope definition as per
the provision of the contract. The progress of the subcontract initiatives may also
be best verified by using the project schedule, cost, and performance tracking.
The measurement should be based on the tracking table developed which deals
with the performance of the contractor based on the planned value and earned
value comparisons in terms of cost, schedule, and physical progress achieved. The
cost and schedule variance could be a good tools to measure the performance of
the project and the subcontractors’ efforts.

49
The subcontractor may be provisioned for regular progress report submissions, for
example, weekly, monthly, quarterly, or mid-term progress reports, and final draft
reports and final reports.
In addition to regular reporting provisions, the buyer has another important task:
verification and validation of the work performed by the subcontractor. For
tracking the performance of subcontractors, these efforts are applied to ensure the
subcontract and project are on schedule and within the estimated cost and scope.
When projects involve either contract or subcontract administration, the Project
Coordinator works to ensure project schedule integration with either the
customer or the subcontractor. Generally, the Project Coordinator also tracks
subcontractor schedules to identify problem areas. In the HTTP project, one PM
team member handles subcontracts and preform project coordination tasks.

50
PROJECT CLOSE-OUT REPORT
Project Closure Report
Purpose
The purpose of this closure report is to communicate the work achieved and the
history of the project to the project stakeholders and to others who may benefit
from the historical data. This report captures summaries of each stage of the
project and concludes with lessons learned and recommendations which can serve
as a Jump of Point (JOP) for future teams. This closure report, along with other
project records, can be found in the company document ShareDrive for future
reference.
Overview and Summary
The HTTP project goals achieved and signed off by the customers were those
listed below within the timeline of two years coming in under the budget of $100
million.
 Design, construct, and test a high-tech theme park located along the beach
in Santa Cruz, California within two years from the date of contract.
 Develop the project as a center on educating people in the field of computer
science, biotechnology, engineering, information technology,
pharmaceuticals, healthcare, business finance, finance, internet applications,
biology, medicine, aerospace, and oceanography.
 Ensure that the project will be a valuable recreation center including
entertainment, rides, and services.
To achieve the goals outlined above, the HTTP project was committed to
producing the following deliverables all of which were achieved within budget
and timeline.

51
Deliverable 1: Infrastructure (buildings, parking, roads, utilities: power supplies, sewers,
water pipes, gas pipes, electrical grids, telecommunications; landscaping)
Deliverable 2: At least five rides and five attractions
Deliverable 3: Services (food and security)
Deliverable 4: Transportation (train, shuttle)
Metrics Performance
Planning and Organization
The planning and organization of the HTTP project was managed by the
project management team Funtastics. To ensure an effective project
management plan, we employed three of the five key planning tools:
Work Breakdown Structure (WBS), Organizational Breakdown
Structure (OBS), and Responsibility Matrix (RAM). It was critical to
ensure that poor planning was not the reason for a project failure so we
were sure to plan in three stages:
 Top-Level Planning (Scope Planning)
 Detailed Planning (Scope Definition)
 Final Planning Review
At the end of the day, we found the WBS along with the RAM to be the
most effective tool for the HTTP project planning and organization.
Schedule Management
 Overview
The HTTP project was time bound to two years which started on
June 8th
, 2014 and completed on April 11th
, 2016.

52
 Control Process
The HTTP project deliverables required review and sign off which
ensured the closure of each deliverable. Any deliverables which
required adjustments were quickly resolved due to the strong
rapport between the project management team and the change
control board.
 Corrective Actions
With a project of this size and scale, it was important to set rules
and procedures to avoid scope creep. If there were any major
project changes, they had to undergo a five-step process
concluding in approval before any changes were acted upon.
Although our schedule did flux during certain phases, it was made
up for towards the end.
Risk Management
 Mitigated Risks
The design phase encountered a high risk in completing the
programing for the hologram attraction. To mitigate the
situation, the stakeholders approved for the project team to
outsource a local hologram coding freelancer to complete the
task within just an additional two days.
 Outstanding Risks
The internal team suffered a setback when the company’s IT
system underwent migration to the new and cloud-centric
Office 365. Project data was lost in migration, but was
recovered within a day and a half once the team Funtastics
connected with the support team.

53
Cost/Budget Management
 Overview
The approved project budget was constrained to $100 million.
The cost of hiring a freelance coder to resolve the hologram
issue did acquire additional cost, but in the end that cost was
offset by the team Funtastics team resolving the data access
issue with the in-house support team.
None recorded to date. A select few infrastructure costs will be
closed in the next 30 days due to the amortized nature of the
contracts.
Project Tracking
 Overview
Consistent project tracking was achieved by team Funtastics
through maintaining two types of status meetings with core
team and extended team.
Core team status meetings were held weekly with team leaders
and the Funtastics project managers. The agenda included team
highlights, low light, roadblocks, and next steps.
Extended team status updates took place monthly and
included all key stakeholders. The agenda included report outs
from team leaders capturing project highlights and roadblocks
then concluded with a schedule summary from the team
Funtastics.
At the storming phase it was required to host an offsite
meeting which renormed stakeholder expectations as well as
solidified team collaboration.

54
Monitoring and Controlling
 Overview
Team Funtastics employed the Cybernetic Control process
which followed a baseline agreed upon during the planning
stages of the project. It was important to measure the baseline
which was understood by key stakeholders so we were sure to
report progress by means of the weighted milestones rule,
specifically following the 20/80 rule.
Corrective actions to unacceptable variances were done based
on correction reports. These reports were written by the
problem “owner” and they include: recovery actions necessary
to get back on track, root causes of the problem, and estimate
to complete (ETC). The corrective actions which were
typically taken were either soft (no added cost) or hard (added
cost), or outsourcing.
Outsourcing Management
 Overview
The HTTP Project is complex and as mentioned above the
design/infrastructure piece of the puzzle required outsourcing
due to technical issues with the hologram attraction.
To ensure a successful outsourcing experience, and ultimately a
successful project, a procurement management team (PMT)
was within scope and fully supported by the change control
board. The PMT worked closely with team Funtastics to
ensure that stakeholders and customers were pleased with the
work being done.

55
Lessons Learned
Positives and Negatives
What Worked What Did Not Work
- Project closed successfully within the
agreed upon budget with final signoff
and transfer of ownership to the O&M
company.
- Negotiations were effective as details
were captured in executed contracts.
- Effective and consistent status
meetings were conducted at both team
and stakeholder levels.
- Change control management process
ensured the avoidance of scope creep.
- During the two years of the project,
the team achieved two patents and
more are pending for approval.
- Compressed planning timeline.
- Internal staffing challenges as team
members were disrupted to work on
other projects during the HTTP
lifecycle.
- Communication and collaboration
between PMT and subcontractors.
- Approval from local authorities, such
as, OSHA and EIA, were slow to obtain,
thus challenging planned schedule.
- Slow to admit that internal team
lacked technical expertise and should
have outsourced talent earlier.
Recommendations
The following are the top five areas that the HTTP project management team
Funtastics recommends to focus on:
1. CPID
Specifically the communication plan allowed for consistent and transparent
communication between project management, team leaders, and
stakeholders, ultimately achieving team cohesiveness and overall project
success.
2. Organizational process assets
The sequence in which important documents were well crafted, approved,
and archived ensured high performance and quality deliverables.
3. Change control process
The development and implementation of an integrated change control
management process ensured that the project did not deviate from the
agreed upon baseline.

56
4. Tracking
The status report system in partnership with applying the EVM tracking
method ensured that the team identified issues and took the appropriate
corrective actions early on.
5. PMT Vendor Selection
Typically the HTTP project sought local sole-source vendors in order to
support the community and county, but for certain issues (for example,
problematic technical areas) the team decided to seek competitive bidding.
Competitive bidding allowed to mitigate other budget restraints.
Project Management Team is very proud of the success of
the HTTP project and the project teams’ successful collaboration. To honor
the outstanding achievement, a fun event was organized to celebrate the
success.

APM_AEB_FINAL

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (18)

Similar to APM_AEB_FINAL

Similar to APM_AEB_FINAL (20)

APM_AEB_FINAL