You have been asked to determine a rough schedule for a nine-week Billing System Conversion project, as part of your job as a consultant to a Fortun

Part 1

You have been asked to determine a rough schedule for a nine-week Billing System Conversion project, as part of your job as a consultant to a Fortune 500 firm. The firms old system was written in COBOL on a mainframe computer, and the maintenance costs are prohibitive. The new system will run on an off-the-shelf application. You have identified several high level activities that must be done in order to initiate, plan, execute, control and close the project. The table below shows your analysis of the projects tasks and schedule so far.

Complete any relationships (predecessors) between tasks. Use the following notion (FS default), SS, FF, and SF.

Using the information in the table, draw horizontal bars to illustrate when you think each task would logically start and end. (you may copy the table to Excel and draw the duration bars properly)

Identify one milestone that could be included under each of the process groups in the table.

Predecess-orsWeeks Tasks 1 2 3 4 5 6 7 8 9

1 1.0 Initiating 2 1.1 Assign project manager FS 3 1.2 Develop project charter SS 4 1.3 Meet with stakeholders FS 5 2.0 Planning 6 2.1 Create scope plan FS 7 2.2 Create WBS and schedule SS 8 2.3 Create procurement plan FF 9 2.4 Create PMP FS 10 3.0 Executing 11 3.1Develop network configuration FS 12 3.2 Remove all HW SS 13 3.3 Order SW and HW FS 14 3.4 Install new SW on servers FF 15 3.5 Install new HW and SW on clients machines SS 16 3.6 Test new billing system FF 17 4.0 Controlling 18 4.1 Status reports FS 19 4.2 Update plans FS 20 5.0 Closing 21 5.1 Lessons learned FS 22 5.2 Prepare final report FF Use the Precedence Diagramming Method (PDM) or Activity on Node (AON), to create a network diagram for the Billing System Conversion project. Assume all durations are in days. Answer the following questions:

How many paths are on this network diagram? How long is each path?

Which is the critical path? What is the shortest amount of time needed to complete this project?

What does the critical path really mean? How might this information be valuable to the project manager of the Billing System Conversion project?

Case Study

Unpopular Schedule

Read the required reading for this week (McConnell, 1996), and answer the questions below.

What reasons does McConnell give for poor defence of project delivery estimates? What do you think?

Outline each of the effective scheduling negotiation strategies presented. As a project manager which technique(s) would you adopt? Why?

Part 2

Prepare a cost model, for the following 6 month (24 week) Rec Centre Web Development Project. The total cost estimate should be $210,000. Use the WBS provided. Note the following assumptions and document any additional assumptions you make in preparing the cost model. How much is your contingency reserve? Use Table 1 (at end)

assume all work a 38 hour week @ 7.6 h/day (pro-rata)

assume project manager works on project management tasks only for 2 days p/wk @ $100.00 p/hrassume project team is composed of 3 members @ 60 p/hr, available:

0.5 day p/wk on project management tasks

4.5 days p/wk on product related deliverables

assume all product related activities have F-S relationshipassume requirements definition will take a week to complete in week 1assume each of the web site design activities will take 1.5 weeks to complete commencing in week 2assume each of the web site development activities will take 3 weeks to completeassume testing will take 2 weeksassume training and support will take 3 weeks to completeWork Breakdown Structure

Rec Centre Web Development Project

Project management

Requirements definition

Web site design

Registration for recreational programs

Registration for classes and programs

Tracking system

Incentive system

Web site development

Registration for recreational programs

Registration for classes and programs

Tracking system

Incentive system

Testing

- Training, roll out, and support

Using the cost model you created above, prepare a cost baseline by allocating the costs by WBS for each month of the project. Use TABLE 2 (at end)

Assume you have completed three months of the project. The BAC was $200,000 for this six-month project. Also assume the following, and answer the questions below.

Term Formula Calculation

planned value (PV) PV $120,000

earned value (EV) EV $100,000

actual cost (AC) AC $90,000

budget at completion (BAC) BAC $200,000

cost variance (CV) CV = EV AC $100,000 - $90,000 = $10,000

schedule variance SV = EV PV $100,000 - $120,000 = ($20,000)

cost performance index (CPI) CPI = EV / AC $100,000 / $90,000 = 111% or 1.11

schedule performance index (SPI) SPI = EV / PV $100,000 / $120,000 = 83% or 0.83

estimate at completion (EAC) EAC = BAC / CPI $200,000 / 1.11 = $180,180.18

How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

Review the estimate at completion (EAC) figure for this project. Is the project performing better or worse than planned?

Review the schedule performance index (SPI) figure for this project. How long it will take to finish this project?

Case Study

Budgetary Blackholes

Read the required reading for this week (Brandel, 2004), and answer the questions below.

Describe Brandels top ten money wasters on IT projects.

What solutions does Brandel offer for each?

Rank the ten money wasters as you see them from most important to least important. Outline your reasons for ranking the items as you have. In your opinion, has Brandel missed anything? If so, what?

TABLE 1:

Cost Model Solution Rec Centre Web Development Project #Units/Hours Calculations: Project Expenses #Units/Hours Cost/Unit/Hr Subtotals Total hr/day days/wkweeks no. team total hrs

1.0 Project management 1.1. Project manager $ 100.00 $ 7.6

1.2. Team members $ 60.00 $ $ 7.6

2.0 Requirements definition $ 60.00 $ $ 7.6

3.0 Web site design 3.1. Registration for recreational programs $ 60.00 $ 7.6

3.2. Registration for classes and programs $ 60.00 $ 7.6

3.3. Tracking system $ 60.00 $ 7.6

3.4. Incentive system $ 60.00 $ $ 7.6

4.0 Web site development 4.1. Registration for recreational programs $ 60.00 $ 7.6

4.2. Registration for classes and programs $ 60.00 $ 7.6

4.3. Tracking system $ 60.00 $ 7.6

4.4. Incentive system $ 60.00 $ $ 7.6

5.0 Testing $ 60.00 $ $ 7.6

6.0 Training, roll out, and support $ 60.00 $ $ 7.6

Total Project Expenses $ 200,640.00 Contingency Reserve $ Budget Total $ 210,000.00 TABLE 2:

Cost Baseline Rec Centre Web Development Project Project Expenses Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Total

1.0 Project management 1.1. Project manager $

1.2. Team members $

2.0 Requirements definition $

3.0 Web site design 3.1. Registration for recreational programs $

3.2. Registration for classes and programs $

3.3. Tracking system $

3.4. Incentive system $

4.0 Web site development 4.1. Registration for recreational programs $

4.2. Registration for classes and programs $

4.3. Tracking system $

4.4. Incentive system $

5.0 Testing $

6.0 Training, roll out, and support $

$ $ $ $ $ $ $

Contingency reserve $

Total $ 210,000.00

Part 3

Complete table 1 below using the complaints listed. List the most frequent customer problems first (See Schwalbe, 2014). Prepare a pareto chart using chart 1 based on the information in table 1.

Customer is on hold too long 90 complaintsCustomer gets transferred to wrong area or cut off 20 complaintsService rep cannot answer customers questions 120 complaintsService rep does not follow through as promised 40 complaintsTable 1:

Customer complaints Frequency / week % of Total Cumulative %

Total complaints Chart 1:

0

a).To illustrate a normal distribution, shake and roll a pair of dice 30 times and graph the results. It is more likely for someone to roll a 6, 7 or 8 than a 2 or 12, so these numbers should come up more often. Graph your results in chart 2.

Chart 2:

dice roll frequency 10 9 8 7 6 5 4 3 2 1 0 2 4 5 6 7 8 9 10 11 12

dice roll sum

b).Describe how the techniques of statistical sampling and normal distribution might be used by IT companies such as Dell computers to identify quality problems with production and distribution processes of its IT goods and/or services.

a).Refer to the case study on page 3. Use Ishikawas fishbone technique to determine possible causes of problems with the Apple PowerBook 5300 model.

b).Describe how Ishikawas fishbone technique can be used to identify the primary cause of quality problems on IT projects.

Case Study

What Went Wrong

In 1981, a small timing difference caused by a computer program change created a 1/67 (or 1 in 67) chance that the space shuttles five onboard computers would not synchronize. The error caused a launch abort.

In 1986, two hospital patients died after receiving fatal doses of radiation from a Therac 25 machine. A software problem caused the machine to ignore calibration data.

In one of the biggest software errors in banking history, Chemical Bank mistakenly deducted about $15 million from more than 100,000 customer accounts one evening. The problem resulted from a single line of code in an updated computer program that caused the bank to process every withdrawal and transfer at its automated tell machines (ATMs) twice.

For example, a person who withdrew $100 from an ATM had $200 deducted from his or her account, though the receipt only indicated a withdrawal of $100. The mistake affected 150,000 transactions from Tuesday night through Wednesday afternoon.

In 1996, Apple Computers PowerBook 5300 model had problems with lithium-ion battery packs catching fire, causing Apple to halt shipments and replace all the packs with nickel-metal- hydride batteries. Other quality problems also surfaced, such as cracks in the PowerBooks plastic casing and a faulty electric power adapter.

Hundreds of newspapers and Web sites ran stories about the Melissa virus in March of 1999. The rapidly spreading computer virus forces several large corporations to shut down their e-mail servers as the virus rode the Internet on a global rampage, according to several leading network security companies.

(Schwalbe, 2010, p.294)

Discuss some of the examples of poor quality in information technology projects presented in the Case Study. Could most of these problems be avoided? Why?

Refer to the required journal reading for this week Kloppenborg and Petrick (2004). Outline several ideas the authors present on how to effectively manage project quality.

Why do you think there are so many examples of poor quality in information technology projects? What can the IT industry need to do to reduce this situation?

Part 4

Imagine you work for a project management consultancy firm, name Enterprise Consulting. Your CEO James Kirk has assigned you the role of project manager, for a communications systems upgrade, for an accounting firm whose practice is based in Camperdown with a second office in Cobden (which is open for 2 days per week). Your team consists of two members Nyota Uhura a sub-contracted telecommunications expert, and Montgomery Scott a technician.

Trek accountancy is run by co-directors Gene Roddenberry, and Leonard Nimoy. Hikaru Sulu works as a senior accountant at the Camperdown office and Christine Chapel works as an accountant sharing her time between Camperdown and Cobden. Gary Spock works as a part-time pay roll officer (with some computer skills). Leonard McCoy is a full-time administration officer at Camperdown, and Pavel Chekov works as a part-time administration officer at the Cobden office. The Corangamite Shire Council is a major client of Trek accounting.

Develop project organisational charts for the Trek Accounting Camperdown & Cobden Communications Upgrade Project 2021.

Why are organisational charts useful tools to a project manager? Identify key people/positions in your organisational charts, and indicate why these are important.

a.Describe the purpose of, and differences between a RACI chart and a RAM chart.

b.Create a RAM chart using the WBS listed in Figure 1, for the Trek Accounting Camperdown & Cobden Communications Upgrade Project 2012. Use Table 1 (at end)

Figure 1:

Initiating

Determine/assign project managerIdentify key stakeholdersPrepare project charterPlanning

Prepare scope statementPrepare WBS

Prepare schedule baselinePrepare cost baselinePrepare procurement management planExecuting

Develop communications specificationsReview current systemConduct researchPrepare specificationsContract supply firm

Solicit quotationsSelect and reject quotation(s)

Sign contract

System Upgrade

Install hardware and softwareTest system

System roll-out

Controlling

Status reports

Weekly team meetings

Closing

Prepare final project reportPrepare lessons learned reportFormal acceptance and closure

Following is a description of the Trek Accounting Camperdown & Cobden Communications Upgrade Project 2012 members current aspirations and results of Hertzberg motivation-hygiene test.

Team member Current aspirations Hertzberg test score

Hygiene Motivation

Nyota Uhura security, and protection from physical and emotional harm

requires control, and supervision 20 10

Montgomery Scott creativity, problem solving, self-fulfilmentlikes to be involved and consulted 18 12

Gene Roddenberry belongingness, acceptance and friendship

prefers to be friendly with boss and management 15 15

Leonard Nimoy self-respect, autonomy and achievement

prefers responsibility, and autonomy 22 13

Hikaru Sulu hunger, thirst, and shelter

prefers guidance, and daily meetings with boss 14 24

Christine Chapel recognitions, prestige, status

prefers credit for effort, and incentives, good salary 18 16

Gary Spock food, water

requires supervision, and training 11 18

Pavel Chekov acceptance, love, affection

prefers collective decision making, and trust 22 20

Sketch Maslows hierarchy diagram and insert each team member at their correct level. Label and describe each level.

Indicate which team members are likely to prefer a McGregors theory X management style, and those who are more likely to prefer a theory Y management style. What does this tell you about how to go about managing these individuals give examples?

Hertzbergs motivation-hygiene test was administered to your team. See their scores above. Indicate the appropriate management/motivational approach for each team member given the above scores.

Explain two types of team-building activities that could be used by project managers to develop project teams. How might Coveys 7 habits of highly effective people be used to develop effectiveness of teams, give an example?

Case Study

Nylex Plymer Products

Nylex Polymer Products is Australias largest maker of plastic products and a leading manufacturer. It was founded in 1947and markets a range of brands including garbage bins, industrial and garden hoses, marine upholstery and automotive interior trim. Perhaps its most famous product is the Esky cold box, an Australian household name.

Glen Casey, former St Kilda Australia Rules football player and aged just 44, took charge of Nylex on 1 February 2003. Casey has previously worked from Thorn EMI, Phillips and Dulux Paints. He joined the board of St Kilda in the second half of 2001 and is credited by the president helping to turn the club around. Not long before Casey took over Nylex, the company, like St Kilda, was in poor shape. Its debt was about $480 million. His predecessor, Alan Jackson, had pursued a growth strategy and spend more than $500 million on acquiring other companies between 1995 and 2000. However, no attempt was made to integrate the acquisitions, resulting in a disjointed structure. Jackson resigned in April 2001 with Nylex close to $500 million in debt. The company had almost been liquidated the previous year and its banks placed stringent financial conditions on the company in 2001. Peter Crowley took over but resigned in September 2002. Casey became managing director not long afterwards.

His strategy to try and put Nylex back on its feet was to sell assets and use the money to reduce the crippling debt. The strategy worked well because by February 2004, it debt has reduced to $140 million and Nylex was expected to break even or even post a small profit for the 2003-2004 financial year. Even its share price increased by 62.5% over the 12-month period to February 2004 but was then just 32.5c. By mid 2004 it had dropped back to 26.4c.

Since June 2003, 13 of Nylexs businesses were sold for more than $150 million. While many of these businesses had been performing poorly, others, such as Pryda Reid building products, had been doing well. The sale of so many businesses has had a damaging effect on the morale of its employees. The Australian Manufacturing Workers Union (AMWU) has been particularly concerned about changed conditions for workers under new owners of former Nylex businesses. While some good staff left Nylex because they found it difficult to work under conditions of insecurity and uncertainty, Casey felt that if he could turn Nylex round, he could say to the staff: the future is bright, you dont have to look over your shoulder to see if there is another business being sold in the background or were going under. This he believed, would significantly increase staff motivation.

To further increase staff morale, Nylex began its first advertising campaign in January 2004, something the company had not done for four years. Once again Nylex is seeking to acquire small companies with a view to radically increasing sales and cutting overheads of those companies. Casey had, by February 2004, become excited and generally upbeat about Nylexs future. He even talked openly about paying a dividend to the companys shareholders.

(Davidson et al, 2004, p335)

Where would you locate staff in Maslows hierarchy of needs? Why?

How might Hertzbergs Motivation-Hygiene theory apply to the workers of Nylex? Give examples.

Which of McClellands acquired need theory could be applied to Casey himself? Why?

Refer to the required journal reading for this week Pillai (2006). Provide two ideas presented by Pillai, that might be useful pieces of advice for Casey in handling the staff of Nylex through conditions of uncertainty and insecurity.

TABLE 1:

Responsibility Assignment Matrix

Project Title:

Date:Prepared by:

WBS Activities OBS Units

Key: R = Responsible individual P = Performing individual Part 5

Homer Simpson and his team are working on a nuclear power plant systems software upgrade project, during the first month of the project Homers team identifies the following risks:

key team members leaving

users being uncooperativeteam members not providing good status informationlack of executive management support

unrealistic expectations

unclear requirements

What are some other common risks that Homer and his team are likely to experience on this project?

Using the risks identified by Homers team (from the list above) complete TABLE 1. Prioritise and estimate the impact and probability for each risk.

TABLE 1

Risk Impact Probability

1 2 3 4 5 6

Complete a probability impact matrix based on the risks you have prioritized in TABLE 1, use the template provided.

Probability high medium low low medium high

Impact

Create a risk register for the project, using TABLE 3 (see the last page).

Explain which of the risks needs to be further analysed and/or watched closely during the project.

How might the techniques of top 10 risk item tracking, and expert judgement be used by Homer and his team?

You have been asked by your project manager Ben Tennyson to use decision tree analysis with Expected Monetary Value (EMV) to assess the risk in selecting among three different projects, each with unique expenses, risks, and expected monetary outcomes, with estimates is shown in TABLE 2.

TABLE 2

OutcomeProbabilities Outcome +/-

Project 1 CS 0.2 80,000

PS 0.4 50,000

CF 0.4 -40,000

Project 2 CS 0.15 95,000

PS 0.55 35,000

CF 0.3 -20,000

Project 3 CS 0.1 200,000

PS 0.2 120,000

CF 0.7 -20,000

Draw a decision tree analysis chart for Ben using the values from TABLE 2, filling in the amounts for EMV totalsBen has long been known as a risk taker, advise him on the best alternative based on this information, for a risk-seeking organisation, give reasons for your choice?

Bens partner Gwen Tennyson is risk averse, advise her on the best alternative, based on this information for a risk averse organisations, give reasons for your choice?

How might the techniques of simulation, and sensitivity analysis be used by Ben and Gwen? Provide an example for each.

Case Study

Risk Taker

Cliff Branch and two of his senior people attended a seminar on project risk management where the speaker discussed several techniques such as estimating the expected monetary value of projects, Monte Carlo simulations, and so on. Cliff asked the speaker how he might use these techniques to help his company decide which projects to bid on, since bidding on projects often required up-front investment with the possibility of no payback. The speaker walked through an example using several techniques. Cliff did not have a strong Math background and had a hard time understanding the example, as a result he felt it was much too confusing to be of any practical use to him.

The speaker sensed that Cliff was not impressed, so she explained the importance of looking at the odds of winning projects and not just at the potential profits. She suggested using a risk-neutral strategy by bidding on projects that the firm had a good chance of winning (50% or more), and that had a good profit potential, instead of focusing on projects that they had a small chance of winning and that had a larger profit potential.

Cliff disagreed with this advice, and continued to bid on highrisk projects. The other two managers soon found jobs with competing firms, as did several others.

(Adapted from Schwalbe, 2004, pp.417-418)

Would you rate Cliff Branch as being risk-averse, risk-neutral, or risk-seeking? Why? What risk management tools/techniques would you implement in this situation to ensure business longevity?

Refer to the required journal reading for this week DeMeyer, Loch and Pich (2002). Provide two ideas presented by the authors that might be useful pieces of advice for Branch in approaching high-risk projects.

TABLE 3

No. Rank Risk Description Cate-gory Root Cause Triggers Potential Responses Risk Owner Prob-ability Impact Status