Project Proposal- Planning and budgeting with risk
SCOPE
Flexible Models (FM) shall engage in the design, production and assembly of specified ‘PDDG Box Mk3’ at the site identified by Property Development Department of the Government (PDDG) to enable PDDG undertake assessments of the effectiveness of the boxes. Planned project shall be completed in 51 days costing $121,795.00. The project plan is represented in a Gantt Chart. The Plan’s assumptions (Appendix A) are that no delays in transport shall be experienced, the specifications provided are final ant the PDDG will appropriately prepare the site for evaluation in time for receipt of shipment so that implementation may start. The Gantt Chart will assist project manager and stakeholders to communicate by picturing timelines, their interrelation and dependencies.
Microsoft Project is selected for creating the Project because of its greater potential to enhance communication and control by connecting to our Web-hosted project tracking system that offers project information at any point in time (LEE, 2004).
The quality of delivered boxes is dependent on the quality of material as specified by PDDG. However, FM guarantees best possible design as well as production on their part. Quality Management Plan that consist aspects of quality guarantee, quality control as well as continuous improvement shall be used to control the quality of the project.
Production resources are available in all departments excluding the ‘Cutting and Parts development’ department scheduled for work on earlier contracted projects. They may be exclusively available for this project if rescheduled from other projects, resulting in increased cutting costs. Cost estimation for exclusive availability is provided. Appendix B shows the Work Breakdown Structure (WBS) used to develop Requirement Breakdown Structure (RBS) and Staffing/Resource Management Plan. Scope of the work shall remain as described in Project Proposal.
Appendix A also show the Schedule which is flexible to extension by 12 days in the event that PDDG declines the option for cost compensation for the specialists in the ‘Cutting and parts development’ department.
This project’s deliverable is boxes manufacture, delivery and their execution on the site approved by PDDG. FM shall not bear responsibility or fault if there is delay in deliverable or implementation caused by natural causes (i.e. weather conditions) of failure to prepare the implementation site in time by PDDG.
Product/boxes of specified dimension to be used in foundation of buildings are identified as ‘PDDG Box Mk3’. Their specification is by PDDG’s Research and Development Unite (RDU). The product will permissible it conforms with quality control specifications after completing assembly integration.
Project stakeholders
Name Position Department Company
James Hudson Project Manager Project FM
Mary Clinton General Manager Designing and Drafting FM
Simon Stanford General Manager Cutting FM
Fidelis Clarkson General Manager Assembly FM
Robert Johns General Manager Supply Chain Management FM
Edith Chun Vice President New Model FM
Sylvester McCarthy Marketing Chief Marketing FM
Paulina Mackenzie Technical Lead RDU PDDG
Gilbert Smith Program Manager Seismic Zone PDDG
Josephine Murray Chief Editor Construction Consortium Journal
STAFFING/RESOURCES MANAGEMENT PLAN
Estimate Activity Resources process is utilize in estimating resources requirement for Project. It gives us estimation on the types of resources needed and quantity of each resource type.
The following Requirement Breakdown Structure (RBS) is created to develop Resources Management Plan.
Activity Task Department Person in Charge
1. Requirements analysis 1.1 Interview client stakeholders Design and Drafting Mary Clinton
1.2 Product detail analysis Design and Drafting
Assembly Mary Clinton
Fidelis Clarkson
1.3 Refine final draft Design and Drafting Mary Clinton
2. Design & Concept 2.1 High level design Design and Drafting Mary Clinton
2.2 Details on operation design Design and Drafting Mary Clinton
3. Purchasing Material 3.1 purchase of Cardboard sheet Supply Chain Management Robert Johns
3.2 Purchase of Metal sheet Supply Chain Management Robert Johns
3.3 Purchase of Cubes Supply Chain Management Robert Johns
4.Production 4.1 Set up Assembly Fidelis Clarkson
4.2 Cutting & parts development Cutting Simon Stanford
4.3 Sub-Assembly Phase1 Assembly Fidelis Clarkson
4.4 Sub-Assembly Phase 2 Assembly Fidelis Clarkson
4.5 Sub-Assembly Phase 3 Assembly Fidelis Clarkson
4.6 Assembly Integration Assembly Fidelis Clarkson
5. Delivery 5.1 Pre-Delivery Supply Chain Management Robert Johns
5.2 Shipment/Delivery Supply Chain Management Robert Johns
5.3 Implementation Design and Drafting
Assembly Mary Clinton
Fidelis Clarkson
Appendix C shows Staffing/Resources Management Plan while Appendix D shows Project Network.
COST ESTIMATION
Cost estimation for Project is calculated using methodology developed by Sanghera (2006) and University of Liverpool (2011) as follows
Task No. Cost Description Duration Total Cost ($)
1.1 Work 4 4,8000
1.2 Work 6 14,400
1.3 Work 2 1,200
2.1 Work 4 2,400
2.2 Work 6 10,800
3.1 Material 1,000
3.2 Material 1,250
3.3 Material 9,000
4.1 Work 4 3,600
4.2 Work 3 2,430
4.3 Work 6 10,800
4.4 Work 6 10,800
4.5 Work 4 4,800
4.6 Work 3 2,700
5.1 Fixed cost 2 3,000
5.2 Fixed cost 14 6,000
5.3 Work 7 18,900
Grand Total (US$) 107,880
Initial estimates give a grand total cost of US$107,880, but performing Risk Management analysis will determine final cost.
RISK MANAGEMENT PLAN
Risk identification for this project was done during the first project risk evaluation meeting. Given that the schedule is very stringent, the identified risk are contained in the Risk Register. When the senior project team and stakeholders’ Risk Assessment Meeting is held, eventual additional risks that will be identified would also be added into the Risk Register.
Risks will be controlled and managed within the management, technical, inter-project and time constraints (Zaval & Wagner, 2011).
Risk Management Plan
Risk
No. Constraint Type Risk Identification Risk Mitigation Person in Charge
1 Management Inter-Project 2 top cutters for the Cutting Department may be unavailable for the scheduled dates Reschedule their other tasks to ensure availability on required days Simon Stanford
2 Management Reassigning and transferring of designers and assemblers from one task to another Updated register on personnel deployment be kept and reviewed on daily basis so as to undertake timely transfer Mary Clinton
Fidelis Clarkson
3 Management Potential schedule creep Management team should monitor Project throughout and stay up to date Department Heads
James Hudson
4 Technical Critical project tasks are 1.3 and 4.6 Departmental Heads should control schedule and ensure availability of required resources for scheduled days Mary Clinton
Fidelis Clarkson
5 Technical Potential delays in Shipment/Delivery and Task 5.2 Individual in charge of hiring task subcontractor should stress the situation to subcontractor and ascertain severer contractual penalty in the event of delay which would cover costs resulting from delay Robert Johns
6 Technical Potential damage to components in pre-deliver & shipment/delivery phases Person hiring subcontractors for tasks should stress situation to subcontractor and enforce severe contractual penalty in the event of delay to cover resulting costs from damage Robert Johns
7 Technical Weather conditions at implementation site Protect site from rain. Necessary protection accessories James Hudson
Robert Johns
8 Technical Client change of requirements after cutting phase FM & PDDG should cover such possibility allowing for schedule change, cost reimbursement resulting from change in requirements and cover costs of client requirements change James Hudson
9 Technical Delays in providing raw materials There is sufficient time to organize timely delivery of raw materials and SCM has enough time to receive quotes in advance and enter preliminary agreement about delivery of raw materials Robert Johns
10 Technical Inaccurate set up Review historical data on similar projects and observe strict control and management of set up Fidelis Clarkson
11 Time Tight schedule Management team should monitor Project throughout and stay up to date with all activities James Hudson
Department Heads
Risk No. 1, Task 4.2 is seen to currently have the highest probability and prospective highest damage to the schedule and the cost. It is crucial to eliminate Risk No. 1 because it irreparable to the cost and the schedule. James Hudson and Simon Stanford will coordinate with other project leaders and organize for availability of cutters on required days thus eliminating this risk.
Typically, there is 0.3 probability of damaging components during shipment, therefore costs need to include 30% of extra budgeting for damages.
Affected Task in the event of damage Cost Description Calculated Cost (US$) Extra Budgeting (%) Cost with Extra Budgeting ($)
3.1 Material 1,000 30 1,300
3.2 Material 1,250 30 1,625
3.3 Material 9,000 30 11,700
4.1 Work 3,600 30 4,680
4.2 Work 2,430 30 3,159
4.3 Work 10,800 30 14,040
4.4 Work 10,800 30 14,040
4.5 Work 4,800 30 6,240
4.6 Work 2,700 30 3,510
Grand Total ($) 46,380 60,294
In the event of damages, activities 3 and 4 would be affected, thus extra material should be purchased so as to replace damaged materials and also hire additional labor to meet schedule requirements. The additional budget will be US$13,914 that takes the overall project cost to US$121,794.
COMMUNICATION PLAN
For the purpose of achieving highest possible efficiency as well as contact with clients, FM has designed a Web-based project tracking system to assist management, project team and project client obtain any information relating to the project and provide feedbacks and comments. However, the telephone and email contacts are FM’s main means of communication. A project stakeholders directory is thus distributed to all stakeholders. Appendix E shows the Communication Plan for this project.
Project Stakeholder Directory
Title Name E-mail Phone No.
Project Manager James Hudson jh@fm. aa +890 1234001
Designing and Drafting Lead Mary Clinton mc@fm. aa +890 1234002
Cutting Lead Simon Stanford ss@fm. aa +890 1234003
Assembly Lead Fidelis Clarkson fc@fm. aa +890 1234004
Supply Chain Manager Robert Johns rj@fm.aa +890 1234005
Project Sponsor Edith Chun ec@fm. aa +890 1234006
Marketing Lead Sylvester McCarthy sm@fm. aa +890 1234007
Technical Lead Paulina Mackenzie pm@fm. aa +890 2234008
Program Manager Gilbert Smith gs@fm. aa +890 4236009
Journalist Josephine Murray jm@fm. aa +890 345010
QUALITY PLAN
Appendix F shows the Quality Plan for this project.
Bibliography:
LEE, W. 2004. PMP: project management professional : a graphical study guide. Victoria, B.C., Trafford.
SANGHERA, P. (2006). PMP in depth project management professional study guide for PMP and CAPM exams. Boston, Thomson Course Technology.
ZAVAL, L. K., & WAGNER, T. A. (2011). Project manager street smarts a real world guide to PMP skills. Indianapolis, Ind, Wiley Pub
Appendices
Appendix A
