It_Project_Management

1. Executive Summary This project is for the Melbourne base family restaurant specializing in international cuisine’s website. Main purpose of the website would be, to display recipes and its images, meal pricing, special event carting booking such as wedding, anniversaries and birthday parties online to its customers with a secure online booking facility with an option for paying online via secured connection to our website. The aim of the project is to make the restaurant online to customer so they can easily place order for food and save time and money as well as they will be encouraged and offered discounted prizes online. The project will be a web- based application and will be accessible with basic windows or any operating system that is available in market these days. The budget that has been approved for this project is $130,000 and the duration given is 1 months. In this project Jaspreet is acting as the project manager. 2. Risk Identification Risk management is the process that allows IT managers to balance the operational and economic costs of protective measures and achieve gains in mission capability by protecting the IT systems and data that support their organizations’ missions (Schwalbe, 2006). This process is not unique to the IT environment; indeed it pervades decision-making in all areas of our daily lives. Take the case of home security, for example. Many people decide to have caller ID systems installed in land line and pay a monthly fee to a service provider to provide. Risk management is important throughout the project to meet project objective. Manager should give priority to the risks in the project. The risk concerned to this project and there prioritization can be  Must take care that the project is always done within the estimated budget.  If the estimated time is nearing then we must be careful with the reports and there documentation.  The money given to the project be accurately shared and spent on required resources.  The database must be perfectly maintained such that they may not be any system failure or system crash down. 2.1. Risk associated with Project  Deliverables of Project: It is a plan that documents the procedure for managing risk throughout the project.  Balances risk across all projects: Balancing risk with numbers of steps some time difficult with it arise at one time.  Risks in potential  Risk in management planning: Management risk occur when if small and important part missing in project that can fail whole project  Risk identification risk: While identifying risk it can also happen that human thinking not able to think beyond in certain cases specially thinking about risks in project.  Risk in analysis: Analysis of risk also needed after risk identification.  Risk in response and planning: Late or no response from team and client can generate risk in project design. Non-satisfactory data or information can fail in this case or not reach up to client satisfaction.  Risk with monitoring and control: After completing project most of time it happens that problems can arise after certain amount of time and not clearly monitored by team.  Authoritarian: risk may arrive in different sizes and involve with state as well as central laws. Projects are also subject of regulatory obligation as an example of solitude laws, like HIPAA, EEOC.  Capital accessibility: economic markets and subsidy naturally are serious factors. Numerous projects spotlighted on the progress of real estate.  Operational Risk: winning process at project achievement is a different type aspect in important project success.  Customer Expectations: The achievement of a project will be characterized by the customer. Reflection of customer expectations requires be factoring into generally project plan and checking frequently. (http://www.ehow.com/about_5459505_risk-management-projects.html) 2.2. Probability  Risk occur when if small and important part missing in project.  Potential limit.  Client information and data is most important thing in project design.  Limited data provided by client can change project and will not reach up to client satisfaction.  Web site can be hacked, information will get stole such as credit card details and personal information.  Database failure to upload data.  Customer expectation can be change in between and possibility to change entire idea and design of project. 2.3. Impact  Without proper tool and packages it is difficult to develop project.  If important part missing in project can fail project at last movement. It is most dangerous risk and organization will get closed.  Potential can limit the project and will not reach up to client satisfaction. It creates limitation of tool, software, hardware and employment for project designer.  Because of unmanaged monitoring of risk and bugs control will not identify errors in project and website can be hacked and data can be stolen by hackers, such as credit card details and personal information.  Data base sometimes fail to upload and update data while saving. Client can lose his customers because of this risk.  If customer expectation change then the possibility that to change and rework all from first step of project. 2.4. Short Contingency plan  Need of proper tool and packages need to use while developing web site.  In limited potential it is helpful to use feed modules and software for website development such SQL, PostgreSQL, free modules and temples.  Website need to get secure registration with the help of security provider such as PayPal.  Tacking database backup with the help of checkpoints will be helpful for website. Tools and techniques can help in short contingency plan such as:  Brainstorming  Norming grouping technique  Mind mapping  Lesson learned technique  Surveys and so on. 3. Project Marketing Plan This online Marketing plan will provide in-depth guidance and necessary information for marketing our restaurant to local market as well as national and international market, and increase sales and revenue. Objectives:  To achieve success in field of expertise, and achieve financial well-being of restaurant  To promote business locally as well as attract new customers for business  To increase web traffic on businesses website portal  Enable more communication to customers by getting feedbacks and make existing customers more happy and attract new customers Target Market The market for restaurant covers a large area of diverse and densely populated areas of Melbourne, although it will be located in local sub-urban setting. It is run by a family as a family business. Market location & current customers The location of restaurant is one of the most desirable locations in Melbourne. There is a vast potential for growth in business. The customer base will come from major segments as given below; Local population – the restaurant is centrally located in very populated area which has large number of local businesses running and some residential areas as well, and drive of 15 minutes from nearby 5 major suburbs. Colleges and Universities – Melbourne Institute of technology is within walking distance from the restaurant. The college is having seasonal population of around 22,000 students. In addition 2-3 colleges are near vicinity also have large student bodies. Tourism — Melbourne is well known for tourism around the world and it’s been always a favorite place among tourists. The hotels in Melbourne last year had 90% occupancy. The food concept and product image of restaurant will attract different customer profiles The Students – more and more young people have developed healthy eating habits, and with international cousin available to students will provide international students the taste of food they want. The health conscious person of any age or sex – this includes everyone on a restricted or prescribed diet or those who have planned to stay on healthy diet. Curious and open minded peoples – “If you try it, you will like it.” Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive. Marketing Plan Strategy Focusing on the unique aspect of the product theme a mix of marketing plans will be created to convey our presence, our image, and our message. The online marketing strategy should be aligned with the business needs it should not be Online marketing = web traffic (NO) Online marketing = business objectives (YES)  Print media – Local news papers, magazines and student publications.  Direct mail – Subscription lists, emails, office delivery of mail brochures.  Misc – Website marketing, Yellow pages, events and offers. The marketing strategy for our restaurant will be mainly focused on online marketing side and will deal on tactics on online marketing side.  List business portal on popular and top ranked search engines, and practice good search optimization techniques while developing the website.  Advertise by email, subscribe customers to emails newsletters and provide them information about restaurant products and events regularly.  Build responsive email list of customers for feedback & to give new product news.  Create a blog & interact with customers or community via social networking sites regularly.  Advertise on most commonly used & famous websites.  Search optimization will enable the website to be found more easily and searched very top part of searched list.  Keep a sharp eye on local community sites and advertise on those sites as well.  Create and advertise about Fast and Secure way of payment via websites online payment option where customer  Provide latest and cheap deals for customers which will attract them to restaurant.  Provide customers with online ordering tools and online menu tools also provide then with secure way of making payment for their orders.  Put business location and information details on Google maps or on yahoo local’s site to enable users to see on map directly.  We can advertise using Google Ads using Pay per click. I.e. we only have to pay for advertisement when someone clicks on link. This is economical way of advertising. Necessary Event Resources Resource Objective Estimated Work Hours Providing Free / Discounted food to Students in University Attract students and make aware of them to the food we offer and give facility of providing delivery on campus 2 days Distributing Coupons for discounted food to general public Attract new customers promote business 1 day Signature/Date Signature/Date Signature: Signature: Print first and last name: xxxx Print first and last name: xxxxx Title: Marketing Manager Date: Title: Date: Signature: Signature: Print first and last name: xxxx Print first and last name: xxxxx Title: Date: Title: Date: Signature: Print first and last name: xxxx Title: Date: 4. Earned Value Management Calculation It is the process of considering scope, schedule, and Resources, measured against a project’s actual performance. It compares the planned amount of work to the completed tasks, to the projects’ cost, to determine if the cost, schedule, and work completed are all in synch and in accordance with the plan. Assumptions by considering this website project as follows:  The project estimates include a total of 360 hours of development time.  There are five separate tasks that will take 72 hours each.  It has five programmers. Each will have twenty percent of the work that can be completed concurrently.  Each programmer will charge $361.11 per hour. Total budget for the project is $130,000.00.  Based on the distribution of work, it is determined that the project can be completed within one Month Information of work done: Programmer Budgeted Time Actual time spent Invoices Submitted Percentage of all tasks completed xxx 72 Hours 54 hours $19500.00 60% xxxx 72 Hours 90 hours $32500.00 75% xxxxxx 72 Hours 36 hours $13000.00 55% xxx 72 Hours 95 hours $34305.00 65% xx 72 Hours 55 hours $19861.00 55% Total time and costs incurred 360 Hours 330 Hours $119166.00 To calculate EV, multiply the budget by the percentage of all tasks completed as shown above. For example, Jaspreet was given 72 hours to complete tasks. He estimated that 60% of the subtasks are completed. You multiply $26,000 by 60% and this gives a value of $15,600. So you can clearly see that Jaspreet’s (real) work does not equal the actual cost of $19,500. As a result, Jaspreet has fallen behind (in schedule and cost) based on this one calculation. Also to calculate total EV of the project we have to add all the individual EV values. Starting Calculation: Term Values Notes PV (Planned Value) $130,000.00 Our Budget AC (Actual Costs) $119,166.00 Total Invoice EV (Earned Value) $80,600.00 ($26000*60%) + ($26000*75%) + ($26000*55%) + ($26000*65%) + ($26000*55%) Again, we can see that the group as a whole has fallen behind on their work. They have submitted $119,166 as the cost but produced only $80,600 of (Earned) value. So at this point in time, the project appears to be $38,566 over budget. And we also know the project is behind schedule because the tasks were not completed within the 1 month of time. The Performance Index Calculations The Performance Index figures help us quantify efficiency. They are also used in subsequent EVM calculations. Term Value in % Formula CPI(Cost Performance Index) 67.63% EV/AC SPI (Schedule Performance Index) 62.00% EV/PV Based on these results, we can see that this team is working at an average of 67.63% performance efficiency. The 62% SPI index tells him that the project will most likely need another few days for completion. Final Cost Estimates: According to this information can we calculate the project’s final cost Term Value Formula BAC (Budget At Completion) $130,000.00 Original Budget EAC (Estimate At Completion) $192,222.39 BAC/CPI(in dollars) ETC (Estimate To Complete) $73,056.39 EAC-AC VAC (Variance At Completion) -$62,222.39 BAC-EAC CV (Cost Variance) -$38,566.00 EV-AC SV (Schedule Variance) -$49,400.00 EV-PV At this point in time, the project appears to be $62,222.39 over budget (VAC). It will be next to impossible to hit the original target figure of $130,000. The current EAC value assumes that the programmers will continue working at the same pace. The Cost (CV) and Schedule (SV) variances indicate that the project is “over budget” and “behind schedule.” Overall Efficiency Ratings: Term Value Formula PE (Planned Earned) 62.00% (EV/BAC) * 100 PS (Percent Spent) 91.66% AC/BAC CSI (Cost Schedule Index) 0.419 CPI * SPI The values for PE and PS do not surprise. But CSI is surprising. This value is far from “1” and indicates the seriousness of the project’s inefficiency. The formulas provide a mathematical analysis of performance. Unfortunately, they cannot explain “why” the inefficiencies have occurred. For this, we will need to examine the work of each programmer in order to understand why they are all running over the allotted time. Hopefully, these problems can be solved. The other issue to consider is that the task lengths were severely underestimated. Interviews with the programmers may show that they in fact are working to the best of their ability. The problem may have occurred in the original project estimates. 5. Selection Technique 5.1. NPV There is difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. (http://www.investopedia.com/terms/n/npv.asp). NPV is that how much value an investment in project firm. Formulas: Discount Factor=1/ (1+r) ^ t Where - r= Discount Rate and t=Year NPV = NPV (Discount Rate, (Addition of Cost flow of all year)) + Initial Investment Cost Following table present the NPV analysis for our website project: Discount Rate 10.00% Project A 1 2 3 Total Costs $130,000 $30,000.00 $30,000.00 $190,000.00 Discount factor $0.91 $0.83 $0.75 Discounted costs $118,181.82 $24,793.39 $22,539.44 $165,514.65 Benefits $0.00 $30,000.00 $35,000.00 $65,000.00 Discount factor $0.91 $0.83 $0.75 Discounted benefits $0.00 $24,793.39 $26,296.02 $51,089.41 NPV= $182,066.12 The NPV calculation is very sensitive to the discount rate: a small change in the discount rates causes a large change in the NPV. As the estimate of the appropriate discount rate is uncertain, this makes NPV numbers very uncertain. 5.2. ROI ROI that is return on investment is an important formula in Web marketing. The term is used frequently with advertising or any other online investments. ROI is use to calculates the capability of your investment, applying the amount gained from investment and the amount spent on it as factors in an equation that determines how much potential earnings the investment offers. As the technology market gets bigger, more people are trying to use the Internet to make money. ROI is the chief formula most people use to determine the potential of an investment. (http://www.ehow.com/about_6050500_roi-computer-technology-terms_.html). To calculate ROI help to improve area that needed. ROI=(Discounted Benefits- Discounted costs)/Discount Cost Discounted benefits $51,089.41 Discounted costs $165,514.65 Disc Cost $165,514.65 ROI -69.13% Pay back (years) 3 5.3. Payback Model This method of evaluating business investments uses cash flows to measure the amount of time it takes for a company to recoup its investment. There are two drawbacks to the payback model, firstly, cash flows are not discounted for the time value of money, meaning that a dollar received three years from now has the same value as a dollar received in the current year, and secondly, it fails to consider the profitability of the project in its entirety. Payback Calculation Year Cash Flow 1 2 3 Total $130,000 $13,000.00 $26,000.00 $52,000.00 $91,000.00 6. Detail Schedule 6.1. Gantt chart 7. Conclusion To conclude, as we have made a plan to develop an online processing website for the Melbourne restaurant by dividing the whole project in various segments and equally distributed among team members. The project management plan includes their objectives, scope, budgeting, time schedule, risk management, project control. As a result we would be able to provide website to our customer where they can promote their products and prices and would be able to perform online transactions by credit card or debit cards to purchase or to do the booking. By considering Part of risk management it is the most important part of project to get knows what types of risks occurs while developing project. With the help of different selection techniques NPV, ROI, and Payback model we conclude that 3 year payback period is sufficient. EVM part also perfectly developed and with the help of perfect calculation it can be seen that that plan of project get successful. Furthermore, the marketing strategy has been developed as per the need of client. With the help of evaluation of marketing strategy, target market has been defined and advertisement of the website also needed in marketing plan. 8. Reference List Computer Reseller Marketing Plan, AMT Inc. Retrieved 2 May 2010 http://www.mplans.com/sample_marketing_plans/computer_reseller_marketing_plan/ Earned Value Management, by Tom Carlos, Retrieved 2 May 2010, http://www.projectperfect.com.au/downloads/Info/info_earned_value_management.pdf http://www.hyperthot.com/pm_cscs.htm Net Present Value, Retrieved 3 May 2010 http://www.investopedia.com/terms/n/npv.asp Net Present Value, Retrieved 3 May 2010 http://www.insidus.com/CalculatingROI.pdf Payback Model, Retrieved 4 May 2010 http://www.accountingcoach.com/online-accounting-course/10Xpg02.html Risk Monitoring and Control, Implementing the Risk Management Plan, Carla crepin, July 2009, Retrieved 4 May 2010 http://business-project-management.suite101.com/article.cfm/risk_monitoring_and_control Project Risk Identification Process, Carla Crepin-Swift Jul 1, 2009 , Retrieved 2 May 2010 Project Management The Managerial Process Third Edition, McGraw Hill Publication, Gray & Larson, 2006. Risk Management in IT Projects, By Kaye Morris, eHow Contributing Writer, Retrieved 6 May 2010, http://www.ehow.com/about_5459505_risk-management-projects.html Sample Marketing Plans, Retrieved 2 May 2010 http://www.mplans.com/sample_marketing_plans/ What is ROI in terms of computer technology', By Miguel Leiva-Gomez, eHow Contributing Retrieved 8 May 2010, Writer, http://www.ehow.com/about_6050500_roi-computer-technology-terms_.html