Your team works for WSS and has been tasked with preparing the Project Initiation Document for the project. You must assume that estimates of project costs, benefits and resources already exist (see below). In addition, an initial analysis of the project has resulted in a preliminary set of required tasks, their duration and required resource (see below). Project Costs Initial estimates for project costs are given below. These costs are based on a specific solution option. Alternative options may be considered as part of project Stage 1. One-off hardware Dedicated servers: 35,000 Workstations: 10,000 Ethernet, routers and other connections: 20,000 Printers and scanners: 10,000 Annual software cost (Year 0 onwards) ERP software (licence): 45,000 Server software (including database): 20,000 Developer software: 25,000 Annual support (Year 1 onwards): Software: 11,500 Hardware: 8,500 . . One-off development ERP software (replaces most existing systems): 100,00 . In-store sales software: 30,000 Sales forecasting module: 20,000 E-commerce software (new system, including database and CMS): 105,000 MSW staff: 100 staff days at an average of 300.0 per day Annual data cost (Middle of year 0 onwards) Geodemographic data: 60,000 Annual staff cost (Year 1 onwards): 1 systems manager: 55,000 systems technicians: 30,000 each Project benefits Initial estimates for project financial benefits are: Increased sales Net profit to increase by 150,000 in the calendar year after the system goes live, 350,000 the year after that, and 550,000 each year thereafter. Reduced costs Business Case You are required to assess the financial viability of the proposed project using the estimated costs and benefits given above. Assume a discount rate of 5.5%. You must then recommend whether to proceed with the project or not. You should consider how critical the benefit estimate and discount rate values are to your calculation. You might also want to make suggestions for how the profitability of the project could be increased. Assume that the product development takes place throughout the duration of project Year 0. The system will "go live" at the start of Year 1 and is expected to have a 7-year lifespan. If you can justify other costs or benefits, you may include them in the calculation. 1.1 1.2 Suggested project tasks 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 3.6 Reduced mail-order and telephone sales should allow MSW to reduce call centre staff by 3 (currently costing 18,000 each per year including overheads) but only after the new system has been running smoothly for 6 months. 3.7 The new system will remove the need for quarterly catalogue production, printing and distribution costs (currently 10,500 per quarter). 2 years after web site deployment there will be overall marketing savings to MSW of 12,000 per year. 4.1 4.2 Task Stage 1 Formal progress review meeting Prepare/amend detailed plans for Stage 1 only Quality review Stage 1 plans Formal progress review meeting Provide Stage 1 plans to lecturer Prepare critical path of Stages 2 to 5 Produce Project Initiation Document Formal progress review meeting Produce final review, compile all documents ready for submission Formal progress review meeting to sign off work Stage 2 Confirm user requirements Produce options for solution to user requirements Quality review Stage 2 Stage 3 Produce design documentation Quality review design Source and purchase hardware Source and purchase software Develop in-store sales software Web site development Source and purchase data Stage 4 Install servers Load software Duration (days) 1 3 1 1 1 3 6 1 4 1 30 25 8 55 0000 8 6 10 15 8 7 6 Resource Systems analyst Systems analyst Quality review team Systems analyst Quality review team Computer technician Purchasing officer Software developer Web/database developer Purchasing officer Software developer Software developer Web/database developer Purchasing officer Computer technician Computer technician 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 5.1 5.2 5.3 5.4 Install all cabling for workstations and printers Install workstations, printers and internet connection Perform hardware test Quality review hardware installation Customise and configure software Perform basic test of software Prepare user instructions Prepare user training Prepare user acceptance test plans Load and configure data Stage 5 Train end users Perform user acceptance test Quality review the acceptance test Review project 5 Quality review team x 1 Web/database developer x 1 Software developer x 1 Software technician x 1 5 Systems analyst x 1 Application programmer x 1 Computer technician x 1 Purchasing officer x 1 5 3 50 Your Task This coursework has 3 deliverables. 8 10 8 8 9 7 7 5 10 Web/database developer Computer technician Computer technician Computer technician Quality review team Software developer Web/database developer Software developer Web/database developer Software technician Software technician Notes: (1) Stage 1 represents coursework Deliverable A. The tasks shown for Stage 1 are therefore illustrative - you need to change these tasks to reflect what you plan to do. Also note - you can manage Stage 1 using any appropriate project management framework (subject to approval). (2) You may amend tasks in Stages 2 to 5 if you think tasks are not needed, or some have been omitted, or some should be split up. You must discuss any changes with Mark Ware; be prepared to justify any changes. (3) You must decide the predecessors for the tasks. As a general.cule, run tasks in parallel wherever possible to reduce the total project duration. Software technician Software technician Computer technician (4) Stages 2 to 5 must be conducted Mondays to Fridays, and not during public holidays. The Gantt chart for Stages 2 to 5 must show calendar dates starting 28th February 2022. (5) Stages 2 to 5 must adopt a Waterfall approach to stage scheduling. Software technician Software technician Resources At any given time, the following resources will be available to Stages 2 to 5 of the project: Quality review team Project team Deliverable A - PID (40 marks) Your Team has been tasked with producing the Project Initiation Document (PID) for the project outlined above. The PID must define Stages 2 to 5 of the proposed project, setting out the reason for the project, justifying the expenditure, specifying the expenditure and time plans and allocating responsibilities for the project. The PID must be structured as follows: Title and contents pages (team letter and team member enrolment numbers must be included on this page) . Project definition, including project scope and completion criteria (4 marks) Project justification including a NPV spreadsheet of income and expenditure plans for 7 years. For NPV calculation assume that development takes place during Year 0 and deployment takes place at start of Year 1 (the Gantt chart is likely to indicate otherwise) (15 marks) Precedence table produced for each stage- it is suggested you use MS Project (10 marks) Time plans for Stages 2 to 5 of the project in CPA network diagram and Gantt chart formats - these must be produced using MS Project (or equivalent software) (8 marks) * Resource usage table (3 marks) Gantt chart, Excel document and MS Project files can be included as part of your submission if you want. Your team may be required to demonstrate your MS Project CPA and Gantt chart to your module tutor. Deliverable B - Evidence of coursework management (40 marks) This coursework can be regarded as a project and must be managed appropriately. Your submission must therefore include detail on how you managed the coursework. This is your opportunity to demonstrate and showcase your knowledge and understanding of the project management approaches taught in class. As part of the project management process, it is important for your team to meet regularly (either in-person or virtually) - these meetings should be documented. You must provide clear evidence of how the coursework was managed. Deliverable C - Individual Review (20 marks) Each team member must produce an individual review of the coursework. The review should describe and analyse how the coursework was conducted and include detail on: who did what; who checked what; what went well; and, what you would do differently if you had to do it again. The review must adopt the following format: 1 page of A4 paper, font - black 11-point Arial. Page heading showing title, team letter and student number Submission Instructions Deliverables A, B and C should be submitted as a single zipped folder/file via Unilearn/Blackboard. This zipped folder/file should be named IS2S561_CW1M_SamTeamX where X is your team letter. Each deliverable must list the enrolment numbers of all team members. There should be 1 submission per team. Text-based documents must be submitted in MS Word or PDF format. Gantt chart, Excel document and MS Project files can be included as part of your submission if you want. Your team may be required to demonstrate your MS Project CPA and Gantt chart to your module tutor Any additional evidence of work undertaken should be included as an appendix.