Project Management: Cost, Time and Quality - Case Study Example

Running header: Project Management Project Management Author’s Name Institutional Affiliation INTRODUCTION It is very hard for people with general body imparement to access public ammenities. After continued research, a project aimed at helping people body imparement was carried out. Its main motive was to develop a software that could help disabled people access public services more easily by the software identifiying their needs. The following calculations are a result of data that was used to advance the projects course. The calculation are aimed at evaluating the accuracy of the budget estimates, they also give insight on the right implimentation plan. Projects are time bound, they have a defined time frame within which they should be impimented, inorder to have a prior knowledge of when to commence and end the project , calculation of how long each activity takes should be carried out. Time is an essential resource in project implimentation, it ensures that resources are used in the proposed manner, projects that take long periods of time may not be cost effective. Math calculations on time management on this project have been carried out to veryfy how long each activity would take. Projects may have a great potential however an eror in their implimentation could result in their average performance , in order to ensure that the software project’s final product could be commercialized is very important , its long term implimentation could be a source of income as well as employment thus meeting the projects overall objectives. A project can only be termed to be succesful if it achieves its overall objectives and if it cost effective in most of its operations. The best way of determinig whether the project is successful is by cusing quality control measures evaluate the project’s performance. Quality control evaluates on the viabilty of the project on a long –term basis , it helps in keeping the project relevant over time. A suggestion of various metrics that can be used to evaluate will be instrumental as the project is being implimented. 1. a) Network Diagram Activity Duration in days Predecessor A 30 - B 60 A C 15 B D 15 C E 20- C F 90 B G 90 F, D, E H 10 G 0 30 30 30 60 90 105 15 120 180 90 270 0 0 30 30 0 90 145 55 160 165 60 180 180 90 270 270 10 280 90 90 180 180 0 270 160 55 180 Critical path 90 90 180 90 0 180 KEY: Early start duration early finish Late start float(slank) late finish Network diagrams are of great importance in project management. They help the project managers to priotiritizing on project activities. Network diagrams are useful in time management (Arnuphaptrairong, 2011). The given network diagram indicates the most important activities project implementation. More resources and time should be dedicated to the given order of activities for a smooth implementation of the project b) Determination of the Critical path The critical path is the shortest duration within which a project can be successfully completed. This project can be successfully completed thorough the following path. A B F G H Assembling of related activities, developing of a schedule from the network diagram, mapping out of possible paths and calculation of possible time that each group of related activities would take. A mapped path that takes the longest time to be completed is the critical path. A) A B C D b) A B C E H c) A B F G H a) 30 +60 + 15 + 15 = 120 b) 30 + 60 + 15 + 20 + 10 = 125 c) 30 + 60 + 90 + 90 + 10 = 280 The critical path is A B F G H This is because it has the longest completion period. C) Forward Pass Calculation. Forward calculation is used to calculate the early start and early finish of a project. The critical path that was identified earlier is useful in this calculation. Early start and for any path can therefore be given by; Early start (Es) = early finish for previous activity + 1 Early finish (Ef) = time taken on activity + early start of activity – 1 A B F G H ES of activity A = 1 EF of activity A = 1 + 30 – 1 EF of activity A = 30 ES of activity B = 30 + 1 ES of activity B = 31 EF of activity B = 60 + 1 - 1 EF of activity B = 60 ES of activity F = 60 + 31 ES of activity F = 91 EF of activity F = 91+ 90 – 1 EF of activity F = 180 ES of activity G = 180 +1 ES of activity G = 181 EF of activity G =181+90- 1 EF of activity G = 270 ES of activity H = 270 +1 ES of activity H = 271 EF of activity H = 271 + 10 – 1 EF of activity H = 280days The calculations above depict the earliest period within which the project can be implimented without affecting the overall implimentation of the project (Atkinson, 1999). NB/ ES represents early start EF represents early finish d) Backward Pass Calculation The backward pass calculation is used to estimate how much longer a project may take for it to be completed due to unforseen delays. Late start (LS)- s the latest time an activity may begin without affecting the project’s time duration. Late start is obtained by adding the float to earliest time the activity may take. LS of activity A = 0 + 1 LS of activity A =31 LS of activity B = 0 +31=31 LS of activity f = 0+ 91 LS of activity f =91 LS of activity G = 0 + 181 LS of activity G = 181 LS of activity H = 0 + 271 LS of activity H= 271 Late finish (lf) – latest time that a n activity can be done without affecting the proposed date of completion of the project. LF of an activity = late start of the activity + activity duration – 1 LF of activity A = 1 + 30- 1 LF of activity A = 30 LF of activity B =31 + 60 -1 LF of activity B = 90 LF of activity F = 91 + 15 – 1 LF of activity F = 105 This is an estimation of the latest period with in which the implimentation of the project can begin without affecting the overall implimentation plan (Bobera, 2008) e) Slack (Float) Calculation. Float is the amount of time that an activity can be derailed without causing a drawback on the date of completion of a project. Slack helps project managers to anticipate on activities that may take more periods of time , therefore they are able to make changes on the work plan. Float =late star(ls)- early start ( es) Float for activity A = 1-30 Float for activity A = -29 Float for activity B = 31-60 Float for activity B = -29 Float for activity F = 91- 90 Float for activity F= 1 Float for activity G= 181- 90 Float for activity G=91 Float for activity H = 271- 10 Float for activity H= 261 A positive float gives the project manager apple time to work on the given activity without affecting the completion date for the project. Activities A and B have negative floats, while activities F,G, and H have positive floats , the last three activities will give the manager an extra time to work on other activities. Activities A and B cannot. a) a) planed start and finishing date for each activity along the critical path. Activity Planned start Planned finish A 1 31 B 31 60 F 91 180 G 181 270 H 271 281 b) 1) Actual Performance table Activity Duration COST A 30 4000 B 60 12000 F 90 18000 G 90 18000 H 10 2000 Cost variance. Cost variance = earned value – actual cost earned value = 48000 actual cost = 16500 Cost variance = 48000 – 16500 Cost variance = 31500 The project has a positive cost variance , we can therefore interp[ret that the project is under is under budjeted. The project is either under utilizing the resources or is excellent in utilization of resources with the postive cost variance. 2)Schedule variance (SV), Schedule variance = earned value -planned value Earned = $ 16500 Planned value= 75 % of 16500 Planned value= 48000 16500 - 48000 = -31500 The negative shedule variance mean the project is running behind shedule. A change need to done to make a positive change. Cost performance index. Cost performance index = earned value / actual cost = 48000/165000 =2.91 The cost performance index is positive therefore, project is earning more ncome than the value of resources that were used to establish the project. This is a positive infference Shedule performance Index (SPI) Shedule performance Index (SPI) = earned value / planned value earned value = 16500 planned value = 48000 16500/ 48000 = 0.34 The schedule performance is below 1.0 threshold hence the project is running behind shedule, changes should be implimented to fast track the progress of the project. iii)Analysis of the situation and possible scenarios. The cost performance index is greater than 1 , therefore the project is profitable , however the schedule variance is negative , this is an indicator that the project is behind schedule. Drastic measure should be taken to restore the project to the correct schedule so that the project to end in the correct time frame t as at nowt he project may require time extension to allow its full implimentation . iv) ) Budget at completion (BAS) BAS= Baseline effort –hours x hourly rate Hours = 315 days x 1/24 = 13.125 Hourly rate = 64000/ 13.125 = 4,876.19 64000 - 13.125x 4,876.19 BAS= 0.00625 The positive BAS is an indication that the project is runnig on smoothly and the initial budget estimates were accurate in the impliimentation of the project. Estimate at Completion (EAS) EAS = BAC / CPI BAC = 64000 CPI = 2.91 EAS = 64000/ 2.91 = 29993.12 The forcasted cost of the project is estimated to be $ 29993. 12 with reference to the estimate at completion calculation. Estimate to complete (ETC) 75 % Completion. ETC 25% 64000 = 16000 The remainig part of the project requires $ 16000 for the full implimentation of the project, this is in reference to the estimate to completion math. Variance at Completion(VAC) VAC = BAC- EAC EAC = 29993.12 BAC = 64000 – 16000 = 48000 The project has a positive variance to completion , therefore the project can be completed with the inital budget estimate, therefore there is no need to seek for more income to complete the project. . V) To complete performance index. complete performance index = ( remaining work )( remaining funds) = 16500 x 48000 = 792000.00 The performance index is in an excellent condition. The to complete performance index indicates that the project can be completed smoothly ( Pradip, 2012). Task three 3) Quality control. Metrics that can be used to evaluate this project. The project has a noble course of helping the less fortunate in the society, it therefore needs a solid quality control measure. For the software programme to be widely accepted, a strong customer relation is needed. A solid customer relation will ensure that the the project produces softwares that meet the immediate needs of the target market. The project manager should also forcast on the technological changes taking place, the final product should be compatible with the changes in technology. H e should be in a position to predict whether the final product will still be viable in future . The quality of the products should be established within the mission and vision of the project. The fina product should be a representation of the poject’s beliefs , the quality standards should not violate the government standards. The project manager should have a way of responding to customer problems within a short period. The project will be more successful if it is able to commericalize its softwares, it will be earning both revenue, as well as being benefitial to the society by creating jobs. The project manger should be in position to forcast on the future of the project beyond its estimated period of existence. Diversification is another avenue that the project can propergate its lifetime, if the project can make innovations from the original products and meet more needs of people with disabilities, it can easily commercialize its products an establish its long – time existence. The best quality control measures include: a)Cost quality. This metric will help the project manager in reducing costs. By use of this metric the project will be producing quality products at an affordable price (Edward,2016). Cost quality will help the project in maintaining its resources. b)Overall equipment effectiveness. This metric measures the availability of equipment when needed to produce a product for the customer. The overall equipment effectiveness will be used to evaluate on the ability of machines to produce the desired products. c)New products introduction (NPI). New products in the market more often than not come to the market with a competitive advantage, The NPI metric will help will help in evaluating the performance of the project’s product. d)One time and complete shipments. This metric will ensure that products reach the market on time. With this measure in place, more products will be reaching consumers on time. e)Plan quality metric . This metric will help in evaluating whether the project and the final products are meeting the quality standards set that had been set at the onset of the project. It involves the project manager developing quality management plans and quality checklists. f)Percentage of product compliance. This is a metric that verifies the level of product’s compliance to government regulations (Edward, 2016). This is an important measure because it ensures that the products meet the threshold required by the government. It ensures that the project’s product operate within the law. g)Customer complains Customers review on product play an important role in the products’ future developments. How a project manager and cronies respond to compains from consumers plays an important role in developing their public relations. The projects efficiency in responding to customer problems can be established by counting the number of complains that the project has resolved. The project’s ability to respond to customers problems will dictate its level of success. h)Scrap rate. This is an alternative way of measuring quality. It can be defined as the measure of raw materials that do not result to the final products. This metric will be important in giving insight on the level of effiency in probduction by the project. The project will earn more profits if it will manage to keep its scrap rate as low as possible. i)Yeild It is a common quality control measure in most organizations, it measures the percentage of finished products that require to be worked on again to improve their quality (Cleland and Ireland, 2006). This quality control measure will help the project manager determine the number of defective goods and how to reduce the loss. Lower levels of defective goods result to higher returns. Supplier defect rate. Raw material have a significant influence on the final product, it is therefore important for the project to evaluate on the quality of raw materials that their suppliers bring in. The measure will be important in reducing defects in software rawmaterials that could jeopardise the quality of the final product. j) Supplier chargebacks This is an important measure in evaluating the suppliers ability in supplying raw materials of high quality. This metric is important in evaluating aspects such as lateness in delivery . The supplier chargebacks will be a reflection of the project’s policy on suppliers. References. Arnuphaptrairong, T, 2011, “Top ten lists of software project risks: evidence from the literature survey,” Proceedings of the International MutiConference of Engineering and Computer Scientists, IMECS, vol.1, no. 2, pp. 1-6. Atkinson, R., 1999. “Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria,” International journal of project management,vol. 17, no. 6, pp. 337-342. Bobera, D, 2008, “Project management organization,” Management Information Systems, vol. 3, no.1. pp. 3-9. Cleland, D& Ireland, L2006,Project management, New York, McGraw Hill Pradip, P2012, Different ways to calculate EAC(Estimate of completion), Retrieved on 27th September 2016, from; http://www.simplilearn.com/calculating-eac-article Edward,D2016, PMP formulars and calculation for P.M.P certification justified, Retrieved on 27th September 2016, from; http// edward designer.com/web/PMP-calculation formular Edward,D2016, PMP V ariance –at completion justified, Retrieved on 27th September 2016, from; http// www. Ajdesigner .com/ phpearnedvalue/variance _ at_ completion_ equation php . Read More