You will examine scenarios regarding specific practices and techniques relating to project management in particular estimating cost and monitoring and controlling including status reporting. This assignment is based on your course readings, your own experience and understanding of analyzing and evaluating cost estimates, applying indices to manage project progress and monitoring and tracking budget progress. You will apply your learning by providing expert advice to a company to in resolving a project management issue. This assignment has two parts and you are required to use excel spreadsheet to complete the budget for part 1 (Include the spreadsheet as an appendix). The case has a short turnaround so make sure you start working on the assignment early. In grading your assignment the instructor will look for evidence that you have kept up with the required reading and can think critically about the concepts discussed. You can include any additional resources and provide appropriate APA style referencing. Your paper should be set up in a business report format. Your paper should include: Title page Executive Summary Brief introductory paragraph Provide appropriate advice, action or opinion as an expert. Conclusion References Part 1 - Reviewing Budget Estimates: (5%) You are a new project manager who joined the company Ultra Safe' recently. The company is currently reviewing the different methods used for estimating schedule, cost and resource since the company is concern with the quality and accuracy of estimation. You have been provided the following information to create a budget for designing and producing 'Ultra Safe' brochure using Excel spreadsheet. The following are some assumptions about the project and the budget that you made. You estimated that as the project manager you will spend 200 person-hours on the project and a teammate (Maryam) will spend 100 person hours. Rate for project manager is $45/hour and Maryam is $25/hour Stationery to copy the brochures estimated cost is $1000 Travel cost to visit vendors and suppliers is $300 Graphic designer fees to create the artwork for the brochure is $5000 Ultra Safe' has developed a combined indirect cost rate of 60% of direct salary. 1. II. Explain how you will determine the direct cost, indirect cost and total cost. Assuming that you received information that the cost of stationery increased by 10% and the graphic designer's fee increased by 25%. Include the variances and total variance in the report. According to Maryam the best budgets are timed-phased, however, she suggested that in budgeting, the project manager must focus on the different phases of the project such as: Scope documentation III. Project Planning . Design Development (Buying Materials) Prototype (drafts) Prototype (Review) Production Based on Maryam's views about creating a budget that focuses on the different phases of project or timed-phased budget; what advice do you have for the project manager and project team? Part 2: Interpreting Project Status Reports (5%) Interpret the following Project Status Reports from company "Ultra Safe' and provide guidance to project sponsors on: a. how to proceed with each project, and b. justify which of the projects should be given the highest priority for use of shared resources as you can only afford to spend an additional $100,000 on one of the projects. You must choose only one project to support. You may not split the $100,000 between the projects. Project 1: Project Status Report May 2nd Project Summary Project 1 will produce a prototype model of a safety cage for prisoner transport that can be easily fitted to many models of vehicle, proposed product name is 'Safe Ways'. This potential product was requested by the marketing department to meet a market need in private contractor prisoner transportation for the North American market. The marketing department believe the potential of this product for the company is in the region of $50 million profit annually if it can be produced at a cost of $1,000 and sold for $1,500 (a price point marketing believe represents the 'sweet spot for the market segment they have identified). Project Deliverables and milestones Project Specifications (Marketing Department product requirements) January 10 High Level Design (Engineering) February 15 1st Pass Model (Project Team) March 15 Field Test 1 April 1 2nd Pass Model (Project Team) April 15 Field Test 2 May 1 3rd Pass Model (Project Team) May 15 Field Test 3 June 1 Project Review and Closure June 15 Major Issues and their impact Issue 1: Marketing were two weeks late with the project specifications, which the engineering department argued were too vague. After three weeks of back and forth between engineering and marketing a workable specification was agreed. SPI: 0.9 CPI: 1.1 ETC: $750,000 Change Requests Accepted: None to date Open: Request to increase the project budget by $95,000 to compensate for the time lost to marketing and engineering issues. Risks Risk One: Engineering are concerned that the large variation in sizes across vehicles models used may negatively impact the possibility of developing an appropriate product. We have started the process of exploring the most used vehicle models for prisoner transportation to reduce the possibility of the product failing (this work will cost $5,000). Marketing have said if we do this we may reduce the potential market for the product by 10% Project 2: Project Status Report May 2nd Project Summary Project 2 will produce an update model of our best-selling 'Safe_n_Sound' in house 'safe room' product. This update model was requested by the marketing department to meet a market need for enhanced security and increased comfort and to allow us to hold and grow our market share as competitors launch their latest high comfortable 'safe room models. The marketing department believe the potential for the updated model of this product for the company is in the region of $40 million profit annually if it can be produced at a cost of $30,000 and sold for $45,000 (a price point marketing has said our competitors cannot compete against). Should we delay and not update the model they believe we are likely to lose $10 profit annually until our product is no longer a viable product for the market place within four years. The budgeted cost for the project is $1,000,000 Project Deliverables and milestones Project Specifications (Marketing Department product requirements) March 10 High Level Design (Engineering) April 1 1st Pass Model (Project Team) April 15 Field Test 1 May 1 2nd Pass Model (Project Team) May 15 Field Test 2 June 1 Project Review and Closure June 15 Major Issues and their impact None to date SPI: 1.01 CPI: 0.9 ETC: $720,000 Change Requests Accepted: None to date Open: Request to reduce the project deadline by two weeks to allow for launch at a new trade show in Los Angeles, allowing for a bump in advance sales and taking market share from our competitors. This change request will cost us an additional $100,000 in project costs. Risks Risk One: Reduce the project deadline by two weeks to allow for launch at a new trade show in Los Angeles, allowing for a bump in advance sales and taking market share from our competitors in the region of $1,000,000. Response: Hire additional personnel for development and trade show launch at a cost of an additional $100,000 to the project - needs management approval. END Proficient Exemplary Developing Below Expectations Report All required sections are All required sections Ideas are somewhat Ideas are Organization and included, and each is are included. Ideas are organized, have some unorganized, lack formatting effectively organized. organized and coherency, provide coherency and Formatting is appropriate coherent, and some insight and provide little to no and consistent. Ideas somewhat insightful integration insight or presented were coherent, and integrated integration logical, integrated, and insightful Appropriate Business Report Task completion Understood the Understood the Not fully understood Misunderstood the requirements of the task and requirements of the the requirements of requirements of completed the assignment task and mostly the task and makes the task and failed demonstrating application of completed the little mention and to demonstrate strong project management assignment applying connections to project applications of principles and concepts and project management management principles project best leadership and concepts and some and acceptable management management practices sound practices in practices in leadership principles and leadership and and management concepts. management. Context, Analysis Ideas emerge from evidence Clear and sufficient Partial ideas provided Ideas are not and with a clear focus on the analysis provided and and analysis was basic related to Recommendations issue at hand. Analysis was supported by evidence with some points evidence, and comprehensive and detailed with some justifications missing or not properly analysis provided explanations provided to and of opinions based on explained were basic and justify opinions based on project management missed many evidence provided. Analysis principles points. and resolutions were clear, engaging, and thorough Grammar Very few, if any, errors in Few errors in spelling, Some errors in spelling. Multiple errors in spelling, punctuation, punctuation, modifiers, punctuation, modifiers, spelling, modifiers, changes in voice changes in voice or changes in voice or punctuation, or tense, and very few (if tense, and few (if any) tense, and some modifiers, changes any) sentence fragments. sentence fragments. sentence fragments in voice or tense, and presence of sentence sources are Sources and Exceeds the minimal three Exceeds the minimal References. required references three required Include minimum Cites all evidence and references of three references resources appropriately in Cites some evidence Appropriate use of APA style. and resources APA style for File naming was appropriate appropriately in APA citations and style. reference page. File naming was appropriate fragments. Includes three Does not include references references. Some Cites some evidence correctly and generally unreferenced, follows APA style. incomplete or File naming was inaccurately cited. somewhat appropriate File naming was inappropriate. You will examine scenarios regarding specific practices and techniques relating to project management in particular estimating cost and monitoring and controlling including status reporting. This assignment is based on your course readings, your own experience and understanding of analyzing and evaluating cost estimates, applying indices to manage project progress and monitoring and tracking budget progress. You will apply your learning by providing expert advice to a company to in resolving a project management issue. This assignment has two parts and you are required to use excel spreadsheet to complete the budget for part 1 (Include the spreadsheet as an appendix). The case has a short turnaround so make sure you start working on the assignment early. In grading your assignment the instructor will look for evidence that you have kept up with the required reading and can think critically about the concepts discussed. You can include any additional resources and provide appropriate APA style referencing. Your paper should be set up in a business report format. Your paper should include: Title page Executive Summary Brief introductory paragraph Provide appropriate advice, action or opinion as an expert. Conclusion References Part 1 - Reviewing Budget Estimates: (5%) You are a new project manager who joined the company Ultra Safe' recently. The company is currently reviewing the different methods used for estimating schedule, cost and resource since the company is concern with the quality and accuracy of estimation. You have been provided the following information to create a budget for designing and producing 'Ultra Safe' brochure using Excel spreadsheet. The following are some assumptions about the project and the budget that you made. You estimated that as the project manager you will spend 200 person-hours on the project and a teammate (Maryam) will spend 100 person hours. Rate for project manager is $45/hour and Maryam is $25/hour Stationery to copy the brochures estimated cost is $1000 Travel cost to visit vendors and suppliers is $300 Graphic designer fees to create the artwork for the brochure is $5000 Ultra Safe' has developed a combined indirect cost rate of 60% of direct salary. 1. II. Explain how you will determine the direct cost, indirect cost and total cost. Assuming that you received information that the cost of stationery increased by 10% and the graphic designer's fee increased by 25%. Include the variances and total variance in the report. According to Maryam the best budgets are timed-phased, however, she suggested that in budgeting, the project manager must focus on the different phases of the project such as: Scope documentation III. Project Planning . Design Development (Buying Materials) Prototype (drafts) Prototype (Review) Production Based on Maryam's views about creating a budget that focuses on the different phases of project or timed-phased budget; what advice do you have for the project manager and project team? Part 2: Interpreting Project Status Reports (5%) Interpret the following Project Status Reports from company "Ultra Safe' and provide guidance to project sponsors on: a. how to proceed with each project, and b. justify which of the projects should be given the highest priority for use of shared resources as you can only afford to spend an additional $100,000 on one of the projects. You must choose only one project to support. You may not split the $100,000 between the projects. Project 1: Project Status Report May 2nd Project Summary Project 1 will produce a prototype model of a safety cage for prisoner transport that can be easily fitted to many models of vehicle, proposed product name is 'Safe Ways'. This potential product was requested by the marketing department to meet a market need in private contractor prisoner transportation for the North American market. The marketing department believe the potential of this product for the company is in the region of $50 million profit annually if it can be produced at a cost of $1,000 and sold for $1,500 (a price point marketing believe represents the 'sweet spot for the market segment they have identified). Project Deliverables and milestones Project Specifications (Marketing Department product requirements) January 10 High Level Design (Engineering) February 15 1st Pass Model (Project Team) March 15 Field Test 1 April 1 2nd Pass Model (Project Team) April 15 Field Test 2 May 1 3rd Pass Model (Project Team) May 15 Field Test 3 June 1 Project Review and Closure June 15 Major Issues and their impact Issue 1: Marketing were two weeks late with the project specifications, which the engineering department argued were too vague. After three weeks of back and forth between engineering and marketing a workable specification was agreed. SPI: 0.9 CPI: 1.1 ETC: $750,000 Change Requests Accepted: None to date Open: Request to increase the project budget by $95,000 to compensate for the time lost to marketing and engineering issues. Risks Risk One: Engineering are concerned that the large variation in sizes across vehicles models used may negatively impact the possibility of developing an appropriate product. We have started the process of exploring the most used vehicle models for prisoner transportation to reduce the possibility of the product failing (this work will cost $5,000). Marketing have said if we do this we may reduce the potential market for the product by 10% Project 2: Project Status Report May 2nd Project Summary Project 2 will produce an update model of our best-selling 'Safe_n_Sound' in house 'safe room' product. This update model was requested by the marketing department to meet a market need for enhanced security and increased comfort and to allow us to hold and grow our market share as competitors launch their latest high comfortable 'safe room models. The marketing department believe the potential for the updated model of this product for the company is in the region of $40 million profit annually if it can be produced at a cost of $30,000 and sold for $45,000 (a price point marketing has said our competitors cannot compete against). Should we delay and not update the model they believe we are likely to lose $10 profit annually until our product is no longer a viable product for the market place within four years. The budgeted cost for the project is $1,000,000 Project Deliverables and milestones Project Specifications (Marketing Department product requirements) March 10 High Level Design (Engineering) April 1 1st Pass Model (Project Team) April 15 Field Test 1 May 1 2nd Pass Model (Project Team) May 15 Field Test 2 June 1 Project Review and Closure June 15 Major Issues and their impact None to date SPI: 1.01 CPI: 0.9 ETC: $720,000 Change Requests Accepted: None to date Open: Request to reduce the project deadline by two weeks to allow for launch at a new trade show in Los Angeles, allowing for a bump in advance sales and taking market share from our competitors. This change request will cost us an additional $100,000 in project costs. Risks Risk One: Reduce the project deadline by two weeks to allow for launch at a new trade show in Los Angeles, allowing for a bump in advance sales and taking market share from our competitors in the region of $1,000,000. Response: Hire additional personnel for development and trade show launch at a cost of an additional $100,000 to the project - needs management approval. END Proficient Exemplary Developing Below Expectations Report All required sections are All required sections Ideas are somewhat Ideas are Organization and included, and each is are included. Ideas are organized, have some unorganized, lack formatting effectively organized. organized and coherency, provide coherency and Formatting is appropriate coherent, and some insight and provide little to no and consistent. Ideas somewhat insightful integration insight or presented were coherent, and integrated integration logical, integrated, and insightful Appropriate Business Report Task completion Understood the Understood the Not fully understood Misunderstood the requirements of the task and requirements of the the requirements of requirements of completed the assignment task and mostly the task and makes the task and failed demonstrating application of completed the little mention and to demonstrate strong project management assignment applying connections to project applications of principles and concepts and project management management principles project best leadership and concepts and some and acceptable management management practices sound practices in practices in leadership principles and leadership and and management concepts. management. Context, Analysis Ideas emerge from evidence Clear and sufficient Partial ideas provided Ideas are not and with a clear focus on the analysis provided and and analysis was basic related to Recommendations issue at hand. Analysis was supported by evidence with some points evidence, and comprehensive and detailed with some justifications missing or not properly analysis provided explanations provided to and of opinions based on explained were basic and justify opinions based on project management missed many evidence provided. Analysis principles points. and resolutions were clear, engaging, and thorough Grammar Very few, if any, errors in Few errors in spelling, Some errors in spelling. Multiple errors in spelling, punctuation, punctuation, modifiers, punctuation, modifiers, spelling, modifiers, changes in voice changes in voice or changes in voice or punctuation, or tense, and very few (if tense, and few (if any) tense, and some modifiers, changes any) sentence fragments. sentence fragments. sentence fragments in voice or tense, and presence of sentence sources are Sources and Exceeds the minimal three Exceeds the minimal References. required references three required Include minimum Cites all evidence and references of three references resources appropriately in Cites some evidence Appropriate use of APA style. and resources APA style for File naming was appropriate appropriately in APA citations and style. reference page. File naming was appropriate fragments. Includes three Does not include references references. Some Cites some evidence correctly and generally unreferenced, follows APA style. incomplete or File naming was inaccurately cited. somewhat appropriate File naming was inappropriate