Project Time and Cost Management: Running Case

2

Recreation & Wellness Project: Part 2

Recreation & Wellness Project

Project Management

The Recreation and Wellness Intranet project is a type of project which will give a capability for a firm to operate an application on their Intranet that will assist employees in preserving their health. Furthermore, the corporation will minimize its internal costs.

Requirements Definition

The following are the prerequisites for this project:

i. The system must allow user ideas.

ii. Staff can sign up for training and activities on health-related topics.

iii. Staff who participate in leisure activities might have their data tracked by the system.

iv. Staff can use the intranet to register for leisure activities.

v. Staff should be able to participate in recreational activities provided by the system.

Website Design

We will require a website for this project that has the following specifications:

i. Classes and programs are available for registration. We will need to create a separate registration form to collect information from employees who want to participate in the workshops and programs.

ii. Incentive systems. We have to create an incentive system that will automatically provide bonuses to staff upon project completion.

iii. Recreational program registration. We ought to create a registration form that will allow us to collect information from staff who are willing to participate in leisure programs.

iv. Systems for tracking (Tracking system). The site should have a tracking feature so as we can keep track of the staff' development and engagement.

Website Development

i. Classes and programs registration

ii. Incentive system

iii. Recreational program registration

iv. Tracking system

Testing

All the system components need to be tested thoroughly before deployment.

Training, Rollout and Support

Staff will be trained on regular basis on how to use the system. The training is important as it will also make them aware of the security hence protecting the system. The rollout and support will also be very key in the last phase of the project. Support will ensure the system is well maintained

Tasks

Cost Model

WBS Items	1	2	3	4	5	6	Total
1. Project Management
1.1 Project manager	$18,000	$18,000	$18,000	$18,000	$18,000	$18,000	$108,000
1.2 Project team members	$20,000	$20,000	$20,000	$20,000	$20,000	$20,000	$120,000
2. Website Design
2.1 Registration for recreational programs	$2,000	$2,000	$2,000	$2,000	$2,000		$10,000
2.2Registration for classes and programs	$55,000						$55,000
2.3Tracking system & Incentive System	$8,000	$8,000	$8,000	$8,000	$8,000	$8,000	$48,000
3. Web site development
3.1 Registration for recreational programs					$14,000		$14,000
3.2 Registration for classes and programs		$20,000	$20,000	$20,000			$60,000
3.3 Tracking system & Incentive System		$9,000	$9,000	$9,000			$27,000
4. Testing
4.1 New network installation					$7,200		$7,200
4.2 Units testing						$3,600	$3,600
5. Training, Rollout and Support
5.1 Network Operating						$9,000	$9,000
5.2 Network management						$18,000	$18,000
5.3 Network maintains and support						$9,000	$9,000
5.4 Internet						$10,000	$10,000
5.5 Training						19000	$19,000
Totals	$103,000	$77,000	$77,000	$77,000	$69,200	$114,600	$517,800

Task 2

	# Units/Hrs.	Cost/Unit/Hr.	Subtotals	WBS Level 1 Totals	% of Total
WBS Items
1. Project Management				$211,300	41%
1.1 Project manager	960	$100	$96,000
1.2 Project team members	1920	$60	$115,200
2. Website Design				$108,500	22%
2.1 Registration for recreational programs	2500	$5	$12,500
2.2Registration for classes and programs	1	$60,000	$60,000
2.3Tracking system & Incentive System	12	$3,000	$36,000
3. Web site development				$103,000	21%
3.1 Registration for recreational programs	1	$18,000	$18,000
3.2 Registration for classes and programs	300	$200	$60,000
3.3 Tracking system & Incentive System	300	$90	$27,000
4. Testing	180	$120	$15,000	$15,000	3%
5. Training, Rollout and Support				1,05,200	13%
5.1 Network Operating	100	60	6000
5.2 Network management	160	$60	$9,600
5.3 Network maintains and support	160	$100	$16,000
5.4 Internet	160	$60	$9,600
5.5 Training	640	$60	$64,000
Total project cost estimate				$517,800	100%

Task 3

Assumptions given

BAC	$200,000
Time	6 months
PV	$120,000
EV	$100,000
AC	$90,000

a. What is the CV, SV, CPI, and SPI?

CV	$10,000
SV	-$20,000
CPI	111.11%
SPI	83.33%

b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?

The SPI number is just 83.33 percent, indicating that the project is behind schedule. The CPI Value is more than 100 percent, indicating that the project is within budget.

c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?

Estimate on completion can be calculated as,

EAC = BAC / CPI = $180,000

As a result, after six months, the project is working better than expected.

d. Use the schedule performance index (SPI) to estimate how long it will take to finish this project.

Estimated time to complete can be calculated as,

Estimated Time to Complete = Original Time Estimate / SPI = 7.2 months

Hence, it will take 1.2 months more to finish this project.

e. Sketch an earned value chart using the above information.