Development on a LAN/WAN Solution for Enhancing Data Connectivity within an Organization - Term Paper Example

Project Cost Management Project This project is focused on development on a LAN/WAN solution that will enhance data connectivity within an organization. It is expected to enhance high speed data connectivity. The entire project involves the following phases: 1. Analysis of the present LAN/WAN infrastructure. 2. Proposal preparation to ensure optimization as well as re-organization of the network infrastructures. 3. Creating initial deployment plan inclusive of the costs, duration resources and also outline the initial list of network infrastructure necessary for establishment of the data network. 4. Preparation of a training plan for IT staff charged with deployment as well as maintenance of the network. 5. Network deployment phases. 6. Network follow up and auditing. 7. Network documentation and handover. Constraints As is with most projects, the project is presumed to have funding limitations, resource constraints, as well as time constraints. Project deliverables Based on the requirements for Network operation a number of deliverables will be presented to the contracting body. These include the following: 1. A centralized network monitoring system that isn’t able to manage faults, allow configuration management, an alert mechanism, system for monitoring of the critical servers and also provide data links, alongside system log monitoring. 2. A network performance and evaluation report. 3. Parameters for performance monitoring. 4. A disaster recovery plan, business continuity plan as well as a solution plan for database backup. 5. A report for physical and information security plan and structure. 6. An Audit report with regard to information security and management. Project management is quite challenging and requires a lot of planning. Time, budget, as well as deliverables are key constraints which may affect the direction taken by a project (Kerzner, 2003; Stevens, 2002). More often than not, Variation in any of the constraints results into a corresponding variation of other constraints. In the case illustrated here, a number of aspects which help in project decision-making are illustrated based on factual information (Clifford, 2003; Vinter, 2006). The information provided for this project is as follows. Initial cost estimates for the Project = $500, 000 Initial Estimated Time for completion = 1 Yr (12 Months) Initial estimates suggested about half of the 500,000 budgeted for this project would go to hardware costs and the outsourced software and consulting services Project Estimates The estimated costs are also the figures for the budget scope within which the project is expected to work. S. No. Activity Duration Cost 1. Project Management 1000 Hours $100, 000 2. Requirements Definition 300 Hours $18, 000 3. Off-the-Self System Installation - $50, 000 4. System Customization Data input (Product and Customer information) 250 Hours $30, 000 Developing new capabilities (Referrals, advertisements etc.) 1000 Hours $120, 000 Hardware - $50, 000 5. Testing 2000 Hours $120, 000 6. Training and Rollout Support 200 Hours $12,000 Total 4750 Hours $500, 000 Assumptions Hardware cost is 20% of the total = $50, 000 ($250, 000 X 20%) Total Customization Cost = $250K - $100K = $150K Total Customization Effort = $150, 000 / $120 (consulting services) = 1250 Hours Total Data input effort is 20% of the total customization effort = 250 Hours (1250 X 20%) System Installation is 20% of the total = $50, 000 ($250, 000 X 20%) Following assumptions on activities estimates Project Manager effort = 1000 Hours Requirements definition effort = 300 Hours Testing effort = 2000 Hours Training and Rollout = 200 Hours Assume that requirements take 2 months to complete Software and Hardware is purchased in 3rd months after the requirements are complete Data input and development start in 3rd month and continues for 4 months Testing starts after the completion of development and data input and continues for 5 months Training and rollout start in the last month and is completed in the same month Monthly Cost based on WBS Activity Total effort (hrs) Unit cost per hour Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Project Management 1000 100 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 $ 8333 Requirements definition 300 60 $ 9000 $ 9000 Off-the-shelf system installation $ 50000 System customization Data input (Product and customer info.) 250 $120 $ 7500 $ 7500 $ 7500 $ 7500 Developing new capabilities (referrals, advertisements, e.t.c. 1000 $120 $ 30000 $ 30000 $ 30000 $ 30000 Hardware cost $ 50000 Testing 2000 $ 60 $ 24000 $ 24000 $ 24000 $ 24000 $ 24000 Training and roll out support 200 $ 60 Monthly baseline Project cost $17,333 $17,333 $145,833 $45,833 $45,833 $45,833 $32,333 $32,333 $32,333 $32,333 $32,333 $8,333 Cost Baseline Graph The availed for analysis include the follow available BAC (Budget at Completion) = $500, 000 (for 12 months project) PV (Planned Value) = $300, 000 EV (Earned Value) = $280, 000 AC (Actual Cost) = $250, 000 The figure listed above form basis for the calculations hereafter: Cost of Variance Cost Variance (CV) is given by the equation below: Whereby a negative value shows an over budget while a positive values will show an under budget. The resulting value is positive indicating that the project is under budget Schedule Variance Schedule Variance (SV) is given by the equation: Whereby a negative value shows that the project is behind schedule while a positive value will show that the project is ahead of schedule The resulting value is negative indicating the project is behind schedule Cost performance Index The cost performance index is given by the equation below: This in essence implies that every dollar results into $1.12. $ Schedule performance Index This value is given by the equation below: The value implies that the project is progressing at 93.3 % of the planned progress rate. Estimate at Completion The value for the estimated amount at completion is given by the equation below (Ireland, 2006). : How long will it take to complete the project? The duration that the project will take to complete is illustrated hereafter whereby: Substituting the values, the following equation is yield, And hence estimated time to complete the project is 12.86 months Based on the information provided, the earned value chart is generated (see figure below). Earned Value Chart Figure 1: Earned Value Chart From the chart, the scheduled variance and the cost variance are recorded. Taking into consideration the example outlined in fig. 3 below, a deeper understanding of the derived chart (fig. 1) is developed with respect to scheduled variance and the cost variance. The graph indicates that the project is not only behind schedule but it is also under-budgeted. The presentations are based on the earlier calculations and are a representation of the project’s technical performance i.e. the project in progress, begun faster than anticipated, but was later slowed down and fell behind its schedule. This chart illustrates the schedule performance aspect of EVM. Additionally, it is also found that the project was actually under-budgeted for in relation to the amount of work completed, since initiation of the project. Based on the calculations obtained, the project is behind schedule and also under-budgeted for. Although, the project is behind schedule, its performance is still relatively good (93.3%) and as indicated, the delay is bound to be very slight. The calculation anticipates that the project will take 12.86 months against the projected12 months, which is a relatively small delay. This is variance of only 0.86 months, which is less of a month. Despite the project schedule delay, it will be accomplished within the projected budget project ($446,429). Based on this information, there is absolutely no reason for changes to be made or additional assistance sought. The project manager may however wish to communicate the variation in schedule to the involved stakeholders (Lock, 2007). References Clifford, C. (2003). Project Finance. London: IFR Publishing. Ireland, L. R. (2006). Project Management. London: McGraw-Hill Professional Kerzner, H. (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (8th Ed.). Wiley. Lock, D. (2007) Project management (9th Ed.) Washington: Gower Publishing, Ltd. Phillips, J. (2003). PMP Project Management Professional Study Guide. London: McGraw-Hill Professional. Stevens, M. (2002). Project Management Pathways. Association for Project Management. APM Publishing Limited. Vinter, G.D. (2006). Project Finance (3rd Ed). London: Sweet and Maxwell. Read More