ContentsPart 1 Build a Methodology4Abstract4Introductio

Contents
Part 1: Build a Methodology 4
Abstract 4
Introduction 4
Project Scope Statement 5
Methodology 5
Deliverables 7
Work Breakdown Structure (WBS) 8
Project Management Office Review Strategy 9
Life Cycle Cost (LCC) 10
Prioritization Technique 11
Risks and mitigation strategies. 13
Delay in Project 13
Budget Shortages 13
Low-quality product 14
Incomplete project design and delivery definition 14
Lack of resources 14
Organizational Structure 15
Part 2: Project Description 16
Agile Methodology 16
Algorithm for SCC 16
Part 2A: Project Requirements 19
Agile Scope Control 19
Agile Task Control 19
References 22

Part 1: Build a Methodology
Abstract
Susan Consulting Company (SCC) has been spending more than
the industry standards on project management costs while
projects are overrunning the budget and timeline. The objectives
of this paper to provide a solution for SCC to improve their
project management process with the ability to track issues,
risks, and changes. Also, to provide a solution where SCC be
able to view project activities and life cycle project costs. From
the research it has been found that Agile methodology would
make the project management process cost effective. Using this
method, this research developed an algorithm to operate six
applications. This research found that SCC needs to make sure
six core activities in project deliverable lists which would
define the project outcomes. Also, a new project structure
model has been proposed which would provide more stringent
solution for budget monitoring. MOSCOW prioritization
technique has been suggested for process
optimization.Introduction
Susans Consulting Company (SCC) has been in business for
more than five years and lately has been experiencing turnovers
in its project management. SCC decided to hire us, a team of
experts, to help them revitalize their project management
system, deliver their projects on time, and use their budget
correctly. An investigation made by the SCC's senior leadership
determined that the amount of project management
documentation necessary for a project. The leadership also

found that the company was spending 30-40% of its budget on
projects, which is over the industry standards.
SCC Company has faced issues with late projects and over
budget. To help solve the company's problem, SCC has
contracted us to revitalize their full project management. Our
team will help the company with its project timeline and
deliverables. Project Scope Statement
This project Management paper will describe the process that
SCC must implement in order to reorganize their projects. The
present paper will show each stage necessary within the projects
and build a process that will help cut the costs and have projects
delivered on time.
Life Cycle
As we aim to create a system where SCC can organize their
projects, our team will use the standard life cycle composed of
five stages, which are (1) Project Initiation (2) Project
Planning (3) Project Execution (4) Project Monitoring &
Control (5) Project Closure.
Figure 1 – Project life cycle
Methodology
An essential step in reviving SCC's project management is
choosing the right kind of methodology. According to Hill
(2013), the project methodology manages projects that use
methods, principles, and rules. One of the main reasons for
using a methodology is to establish standards for management
processes. The SCC company had been facing problems with the
methodology used. Some of the complaints about the old project
management system at SCC were the number of documents
required and delays in delivering projects.
With that in mind, our team thought about using the Agile
methodology, which is a more flexible and dynamic
methodology. According to Reddy (2019), the Agile
methodology prioritizes the continuous improvement and
development of a product or service. The Agile system uses
shorter development cycles and requires collaboration between

cross-functional teams that organize themselves according to
the project's needs. The Agile methodology is well known for
its flexibility and the ability given to the group to create and
respond to change as needed.
Our group will implement this methodology to help SCC think
through the project, understand what is going on, and adapt to
the environment. This means that the company will be flexible
with its planning strategy and can develop the work as it goes,
so the amount of documentation required will also decrease.
This methodology will also help SCC with time management
and budget adjustment. The new system will emphasize
articulating goals, enabling interactions, improving team
dynamics, supporting collaboration, and encouraging
experimentation and innovation (Gannod, et al., 2015). Any
other project management, the agile process will be composed
of five phases, such as project Initiation (1); project planning
(2) - design, development, and test; Project execution (3) –
Deploy; Project monitoring and control (4) Review; and Project
closure (5) – Launch and termination (See figure 2).
Figure 2 – Project life cycle
Deliverables
Once the project management methodology is defined, it is
crucial to think about the deliverables for the projects.
According to Bloomenthal & Estevez (2021), deliverables are
the quantifiable goods or services that must be accomplished in
a project. In order to help SC Company, solve their issues
within their projects, our team has established six core activities
that must be provided to have a project completion. The list
counts with (1) project task list, (2) budgeting, (3) risk
management plan, (4) project schedule, (5) assign task, (6)
communication plan (see figure 2).
Figure 3 – Six core activities
Work Breakdown Structure (WBS)
After defining the deliverables, our group developed the Work
Breakdown Framework (WBS), a hierarchical division of the

project where each deliverable is specified. Generally, the WBS
can be done in two ways, which are either phase-based or
deliverable-based. For SCC projects, our team develops a WBS
according to the project results. Each structure has been graded
on a level for each element to be identified. The projected WBS
can also be used to schedule and estimate costs. A chart with
the stipulated deliverables.
In the projected structure, we have an example of how the
necessary deliverables in the development of each project would
work. At level 1, we decided to receive reports related to the
internal work of scheduling, risk analysis, project scope, and
project plan. As the project makes progress, we see each step
broken down according to its respective deliverables. Each step
will be assigned to specific teams, who will be responsible for
providing the reports.
Figure 4 – Overall project structure
Project Management Office Review Strategy
To help SCC improve their projects, it will be important that the
organization see the strategy as an agenda for their long-term
decision. The goal is to help the company to create a continuous
process with their projects. In order to help with the progress,
we created a responsible mechanism of review. As Ballowe
(2019) suggested, three types of review can be used, and that is,
these are the ones we decided to implement. First, will take
place weekly tactical meetings, these should take no longer than
one hour, and they are used to cover operational elements and
weekly priorities. The weekly meetings are a way to tight the
short-term goals to the long-term vision. The team will decide
and review what needs to be done for the next 5-7 days.
Figure 5 – Project review strategy
The other review will take place monthly. This review will be
taken to see how the company is doing and work on the
subsequent assignments for the following 30 days. This meeting
will give a clear view of how the team is doing and areas that
need improvement. The last review that will take place is the

Quarterly Strategy Reviews. This review happens to articulate
the focus for the next 90 days. They will function basically like
the monthly review, except that it is a long time. This type of
review was chosen to give the team a clear picture of what is
working and what is not (Ballowe, 2019). Life Cycle Cost
(LCC)
As part of our planning, we will suggest the life cycle cost of
the project. As any project manager knows, the budget has a
significant influence on the company's operations. Shtub &
Rosenwein (2019) state that the total costs during the
elaboration of a product, project, or system throughout its
useful life are defined as the life cost cycle. The goal is to know
and control the costs throughout the project so that there are no
extra expenses and the project achieves the defined goals.
Therefore, the projects managed by SCC will have a lifecycle
cost with five phases.
a) Conceptual design phase: in this first phase, the objective is
to highlight all the initial costs of the project life cycle. This
phase should include feasibility costs, project investigation,
logistics research, and initial design.
b) Advanced Development Phase: The second phase must
include the cost of preparing the project. If we take software
creation as an example, this phase should include the cost of the
analytical structure and the budget for resource management
plans.
c) Production phase: The third stage includes the costs related
to the execution of the projects. All costs of equipment,
resources, labor, documentation, marketing, product launch
must be calculated (GoCardless, 2020).
d) Product operation and maintenance phase: This phase must
include all the costs necessary for the project to continue
functioning, usually maintenance, updating, and labor costs.
e) Product closure/disposal phase: This last phase is linked to
the costs of finishing or disposal of the product. When the
product reaches the end of its useful life, the cost for the
termination of the activity or disposal of the product must be

calculated. According to Shtub & Rosenwein (2019), this can be
a positive value or have no value depending on the product.
Figure 6 – LCC analysis
Prioritization Technique
As we work on revitalizing the project management at SCC, we
have decided to use the MOSCOW prioritization technique to
optimize the processes. The Moscow Technique is a
straightforward method and will have the company categorize
the list of requirements and the project's needs. The acronym
MOSCOW stands for:
· MUST be executed: These are non-negotiable. During the
project elaboration, these tasks will be the mandatory ones that
must be satisfied.
· SHOULD be executed: After defining the non-negotiables, the
team will look for high-priority tasks. These features have a
second place in the priority list.
· COULD be executed: At this third level, the tasks in question
could be executed, but they are not necessarily crucial for the
project to happen.
· WOULD be executed: These are the ones that the team knows
are there but can be postponed and held for future execution.
Using this technique will help SCC to rank and classify their
list of priorities. Time management was an issue with the
previous project management team. MOSCOW offers a quick
list of priorities and will help the company to visualize its
needs. In addition, it will also be used the Pay Back Period
(PBP), the Internal Rate of Return (IRR), and the Net Present
Value (NPV).
Risks and mitigation strategies.
When working in project management, it is necessary to define
the risks and possible mitigations strategies. Many of the SCC
issues with budgeting and time could have been caused by not
doing excellent risk management strategies. Therefore, for this
project, our team has identified five possible risks and their

mitigations strategies such as: Delay in Project
Delay in projects was a problem at the SCC, and therefore it
should still be considered a risk - it falls into the schedule risk
category. Both the impact and probability of occurrence of this
risk are low. What can happen is a delay in the project that will
trigger a delay in subsequent activities. The strategy to
minimize this risk is controlling risk. It will be vital to control
the project's schedule and have a person responsible for
checking the schedule. In this case, team leaders will be
appointed to observe the progress of the project and the
development of activities.Budget Shortages
Budget overhead is another problem SCC has already been
facing. Therefore, it should also be on our risk list. This is a
budget risk. This risk will have a low impact and probability of
occurrence. However, some projects may run out of labor or
resource costs, affecting the total budget. The budget goes into
the controlling risk measure. The project manager will be
responsible for making a budget plan for each phase of the
project. For security reasons, the team will work with a margin
of 80% of the total budget. Your team will be responsible for
monitoring and managing resources according to future risk
events.Low-quality product
This is a risk that is also very common in some projects. This
risk is linked to the quality and security of the information. In
the SCC project, it may happen that some of the elaborated
algorithms do not work well and cannot filter the transcribed
information, but we will consider this as low risk. There is also
a risk of hackers altering the data and causing the algorithm to
fail. To mitigate this risk, we will adopt the controlling risk
strategy. When this risk occurs, part of the team will be
responsible for meeting and controlling the impact of the risk.
They are joined, seeing which occurrences can still be avoided
and which should only be accepted.Incomplete project design
and delivery definition
This risk enters the planning area. This risk can occur if project
monitoring is not conducted diligently and information has not

been communicated in detail to the project team and leader. To
mitigate this risk, the measure of avoiding the risk will be
adopted. The team will be responsible for monitoring and
implementing measures that avoid this risk as much as possible.
The work will be divided into projects according to the skills of
each member so that this also helps in delivering projects.Lack
of resources
During projects, it will be essential that SCC consider the lack
of resources as well. This is considered an operational risk. The
impact of this risk will be medium to low. This risk can be
caused by unskilled labor, equipment or software failure, and
misallocation of resources. To mitigate this risk, the controlling
risk measure will be adopted. Part of the team will monitor
resources throughout the project lifecycle and managing
resources according to project demand.Organizational Structure
Another task developed by our team was to build SCC an
organizational structure to help their project teams. That is how
the consulting company should be organized in order to
accomplish its goals. Our team decided on a Matrix
Organizational Structure. At the top level, SCC will have its
General Manager responsible for overseeing all the other levels.
Below the top manager, we see the Project managers working
with the other VPs to organize the projects. Under the projects,
managers and team leaders will be the group of each department
working on the projects, as shown in the following picture.
Figure 7 – Proposed organizational chart
Part 2: Project DescriptionAgile Methodology
Project management entails overseeing the project and assigning
various duties to team members in order to ensure that the
project runs well. Project Management methodology depends
upon objectives of the company, size of the team, time available
and budget. The methodology we have chosen to complete this
project is the Agile Methodology. The project's deliverables are
the project's final product. The company's aims are considerably
different from the deliverables. Some of the deliverables are the
report of cost estimated, Work-in-progress report.

Agile development is an iterative, team-based process. This
method emphasizes the speedy delivery of complete functional
components of an application. All time is "time-boxed" into
phases termed "sprints," rather than creating tasks and
schedules. (Lotz, 2018) Algorithm for SCC
The ask is to develop an algorithm to operate the six
Applications, within the project, based on costs. Based on Agile
methodologies, we would dive deeper into how an iterative
approach could help achieve best results. Algorithm to be used
is based on the costs assigned to each application. We have
calculated the Payback period, Internal rate of Return (IRR) and
Net Present Value (NPV) for all the applications. Below is an
example of the calculation done for Application A.
Table 2 - Calculations for Application A
Year
0
1
2
3
4
5
Final Values
Nominal Amount
($175,000)
$50,000
$55,000
$60,500
$66,550
$73,205
Acceptable Rate of Return

10%
Present Value
($175,000)
$45,454
$45,454
$45,454
$45,454
$45,454
$227,273
Pay Back Period
3.85
Net Present Value
($117,768)
($76,446)
($35,124)
$6,198
$47,520
$47,520
Internal Rate of Return
20%
The above table takes acceptable rate of return as 10%. Invested
amount is the projected cost of Year 0 and Net Present value is

calculated for a rate of 10%, with Year 0 value as investment
value and nominal values for years 1 through 5 as cashflows in
respective years. The Present Value, that accounts only for cash
flows without the initial investment is about $227K, and
including it is $47.5K.
The present value of the yearly cashflows is calculated and the
amount is used to estimate a payback period. The payback
period gives us the information of how long it could take for the
project to return profits, after covering the costs of investment
and operations. The 3.85 payback period for Application A,
shows that the amount invested would start to yield profits
towards the end of Year 4. This also aligns with the NPV
calculation of year 4, which shows a total cash flow of about
$6000, towards the end of Year 4. It is also important to note
that through years 1 and 5, the value of NPV has been
consistent and increasing. The negative cashflows realized in
the first three years turns positive in the fourth year and at the
end of fifth year, there is a profit of $47,500, which is also
equal to the NPV at the end of five year period.
About 15% out of the total investment is assigned for Project
Management costs. Given the history of SCC that uses about 30-
40% of overhead costs for project management, we need to
make sure at each step that the project management costs do not
exceed the intended amount. Using the same process, we have
assessed the values for all six applications and below is a
summary of the same. It is also important to focus on timely
delivery of the project and could be achieved by pairing the
applications that realize profits sooner with the ones that take
more time.
To achieve this, we started by calculating key metrics for all the
applications and a summary of the same is provided below.
Detailed calculations for all these applications can be found in
the appendix at the end of the document.
Table 3 - Assessment of Applications A,B,C,X,Y and Z
Application

Investment
IRR
Payback Period (Years)
Net Present Value
Overhead Costs for Project Management
A
$ (175,000.00)
20%
3.85
$ 7,520.66
$ 26,250.00
B
$ (120,000.00)
49%
2.20
$ 38,842.98
$ 18,000.00
C
$ (200,000.00)
26%
3.38
$ 86,776.86
$ 30,000.00
X
$ (150,000.00)
32%
2.75
$ 90,032.25
$ 22,500.00
Y
$ (220,000.00)
10%
6.05
$ (1,799.66)
$ 33,000.00
Z

$ (220,000.00)
10%
6.05
$ (1,799.66)
$ 33,000.00
Considering the iterative approach where we can work on
multiple tasks in a project concurrently, the best way to
approach this project would be to work upon low risk and high-
risk applications concurrently. It is clear from the summary
table that Project B has the highest IRR, with least investment
and hence the least overhead costs. We can pair this with the
highest investment, which can be Application Y or Z. The plan
is to monitor the applications after we paired them according to
the IRR and Investment cost. I would start with Applications B
and Y, followed by Applications C and A, to cover the losses
from Y, before we could move on to Applications X and Z. For
an even more complicated and fast returned approach, we can
also base the Algorithm starting with Applications B and C, and
then look at the combination of Applications A, X, Y and Z.
Part 2A: Project RequirementsAgile Scope Control
Agile scope control is not like scope control in a traditional
challenge. Historically, a big part of mission management is
scope management. Product scope is all the talents and
necessities that a product consists. Project scope is all the
artwork involved in developing a product. Traditional
undertaking control treats converting conditions as a signal of
failure in upfront planning. Agile duties, however, have variable
scope indeed, so undertaking businesses can right away and
incrementally contain mastering and comments and ultimately
create better merchandise. The signers of the Agile Manifesto
diagnosed that scope alternate is herbal and valuable. Agile
strategies, in particular, consist of exchange and use it to make
higher-knowledgeable decisions and additional helpful
merchandise (Clark, W. 2019).
Agile Task Control

Agile task control is a technique that is typically used to deliver
complicated obligations due to its adaptive-ness. It emphasizes
collaboration, flexibility, non-save your improvement, and
immoderate terrific consequences. Its goals are to be clean and
measurable via the use of the six most essential deliverables to
song development and create the product (Clark, W. 2019).
Deliverables – Product vision statement: A summary that
articulates the desires for the product. Product roadmap: The
high-degree view of the necessities needed to collect the
product is imaginative and prescient. Product backlog: Ordered
with priority usage, that is the comprehensive listing of what is
needed for your project. Release Plan: A timetable for the
release of a working product. Sprint backlog: The person
memories, goals, and duties are linked to the contemporary
dash. Increment: The operating product functionality provided
to stakeholders at the top of the sprint will likely have given to
the customer
In Agile methodology, the scope of a mission isn't indeed cited
from the start. It evolves at a few degrees inside the lifecycle.
This text explains that all the task requirements, capabilities,
epics, and testimonies are part of the (Product) Backlog.
Though WBS is often related to predictive lifecycles, in Agile
methodology, WBS may be used. The scope of an Agile
assignment is supported by using the manner of the backlog.
Also, because the artwork bundle deal represents the lowest
stage in a WBS, recollections will constitute the lowest degree
of a WBS in an Agile task (Highsmith, J. 2019). There are many
approaches; however, we can discover a Project to Release to
Iteration to Stories scenario for this piece. The mission is
divided into a couple of releases. Each release may additionally
have many iterations, and, in each new launch, we can supply a
set of talents an entire bankruptcy, a part of a financial disaster,
or design. The abilities can be expected in story factors. I have
decided on this decomposition approach to be steady with my
preceding article on Agile Release Planning. As we already
recognize, Agile is every iterative and incremental. Hence, we

have to deliver total value in each generation (Highsmith, J.
2019).Conclusion
The research community and the software industry are not
lacking in interest in agile processes. This can be proved by the
large number of surveys conducted on agile practices and the
growing awareness of agile methods in the industry. This has
motivated us to explore another important topic in the agile
field: agile project management, which requires a deeper
understanding. Our research hopes to explore three specific
issues, namely the process and problems of transition to an agile
framework, the role of agile project manager and outsourcing
agile project management, and draw theories to comment on the
practice's success in all in these areas.
LCC Analysis
Conceptual Design Advanced development and detailed design
phase Production phase: System operations and
maintenance phase: System divestment/disposal phase: 0.1
0.3 0.45 0.1 0.05

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ContentsPart 1 Build a Methodology4Abstract4Introductio