Cost management

6.1 Overview of Cost Management……………………………………………………………55

6.2 Cost Risks…………………………………………………………………………………...53

6.3 Cost Estimates………………………………………………………………………………55

6.3.1 Breakdown Considerations………………………………………………………………57

6.3.2 Project Requirements Breakdown………………………………………………………57

6.3.3 Overall Costs……………………………………………………………………………...58

7. COMMUNICATION MANAGEMENT PLAN………………………………...…….59

8. RISK MANAGEMENT PLAN……………………………………..………………….

9. STAKEHOLDER MANAGEMENT PLAN………………………………………….

APPENDIX A: REFERENCES ……………………………………………………………….62

APPENDIX B: FORMS ……………………………………………………………………….64

APPENDIX C: Communication Plan Forms…………………………………………………77

1. INTEGRATION MANAGEMENT

1.1 Team Charter

1.1.1 Project Description: The purpose of this Project is to replace the legacy Enterprise Information System (EIS) Pinnacle Business Systems (PBS) by developing and implementing a new EIS that can handle all of the functionality outlined in the Project Objectives section. In addition to a new EIS, the Project will also develop an informational company website and update the company vehicles for remote Teleconferencing. SCI's budget for the entire Project is $1 million to $1.4 million for this Project.

1.1.2 Project Objectives: The core project objectives, as requested by the customer, include an EIS that will allow for:

· A system that can handle the following functionality:

· Payroll

· Accounting

· Purchasing

· Bids and plans

· General and Administrative Expenses

· Project Management

· Management Reports

· Accessible by all employees

· Enterprise mail server

· Workstations for 40 full-time on-site staff. Each office employee must be equipped with a PC and wirelessly linked to a printer. Each machine should be equipped with dual flat screens no smaller than 19". In addition, each machine should have a headset and webcam for communication.

· 3 workstations in each of the two (2) remote office vehicles

· 2 workstations in each of the ten (10) trailers used at construction sites

· PDA and smartphone access to email

· 10 laptops for all key field personnel. Laptops will need to interface with main office computers from any location. In addition, they will need to withstand a "field" environment and therefore should be equivalent to "field" laptops the military uses.

· Company website highlighting company and key projects with contact links

· Microsoft Project Server and updated Microsoft Office suite

· New system will be off-the-shelf, established non-proprietary technology (preferred)

· The system should allow for standard reports and ad hoc report generation that may or may not combine data from multiple modules

All employees must receive the appropriate training for each module they will have access to within the system.

1.1.3 Key Project Stakeholders

· Dan Black, CEO Service Construction, Inc.

· Walt Granger, Director of IT Service Construction, Inc.

· Javier Nunez, Project Manager

· Vinh Nguyen, Project Coordinator

· Earl McMannis, Technical Lead

· George Nealy, Software Engineer

· End-users

1.1.4 Core Team Principles

Our guiding core team principle is that that the users of the new information system, both their need and satisfaction, will be our #1 priority. Other internal core team principles include:

· Respect, Open Communication: the team will respect each other and maintain transparent, open communication at all levels

· Collaboration: each team member will try his or her best effort to ensure we collaborate, share responsibilities, and effectively complete assigned tasks

· On Time, On Budget, No Excuses: the success of the team will be gauged based on this Project's cost, schedule, and performance. We will make sure that the Project will complete on time, and within budget, to the best of our ability.

1.1.5 Team Members

1.1.6 Key Measurements of Project Success

· Schedule: all project deliverables delivered on time and before the end of the period of performance. Our estimated objective and threshold timeline are 6 and 8 months, respectively.

· Quality: all final hardware and software will work and function as intended and meet the approved required system specifications and drawings

· Cost: Our budgeted cost is between $1M (objective) and $1.4M (threshold) for this Project

1.1.7 Team Acknowledgements

· Earl McMannis, Technical Lead: This role will provide solutions to software or technical challenges during the development, design, and implementation of the customer's products and services. In addition, ensuring the Project meets all of the customer's design specifications for technical or software products for the duration of the Project.

· Javier Nunez, Project Manager: I acknowledge that my role is both to be the voice of the project team and the project stakeholders. I will ensure that the deliverables of the Project are communicated and delivered in the manner as agreed-upon in the Project Charter and that all risks are addressed in a timely manner. In partnership with the other project team members, we are dedicated to deliver the highest quality of products on time and on budget.

· Vinh Nguyen, Project Coordinator: To ensure our goals are achieved, I will listen and respect all contributors, be open to all ideas, trust each other, and meet assignments on time.

· George Nealy, Software Engineer: I will work side by side with the Technical Lead to ensure all software needs are met. I will design develop and implement all software solutions for the Project and assist with risk management. I will abide by all timelines set for me with the desired results accomplished.

· The team will meet every Thursday, 6 P.M. (CST) via Zoom link: https://park.zoom.us/j/94384116459

1.1.8 Deliverables

1.2 Project Charter

1.2.1 Purpose of the Project

The purpose of this Project is to replace the legacy Enterprise Information System (EIS) Pinnacle Business Systems (PBS) by developing and implementing a new EIS that can handle all of the functionality outlined in the Project Objectives section. The new EIS is called Apex Business Systems (ABS). In addition to a new EIS, the Project will also develop an informational company website and update the company vehicles for remote teleconferencing. This highest-priority Project is created to improve the current sluggish and outdated data processing and information management systems. It also enables the company to stay competitive in a marketplace where customers are increasingly demanding quick response and the flexibility to tailor projects to new and unique situations.

1.2.2 Project Description

SCI is growing and transforming itself from original roots as a construction contractor for refurbishing commercial office and warehouse space, and as a sub­contractor on larger, new commercial office buildings. The executive management has envisioned a future for the company with a mix of business in which the largest part is higher margin industrial construction projects. However, the current basic management system is not providing necessary information nor providing it in a timely fashion to be competitive. Moreover, our current custom enterprise software, PBS, is buggy and slow. Therefore, as part of the vision to improve its tactical operations, SCI's management has prioritized and placed in the most urgent category of projects to be undertaken immediately is improvement of its computer system to process operations data and provide management information. To better support this new business model, the new state of the art EIS will provide the capability and environment as described in Project Objectives section. Our estimated objective and threshold timeline are 6 and 8 months, respectively. Approved budget is $1 million to $1.4 million for this Project.

1.2.3 Project Assumptions

Assumptions are based on the original plan provided during the project planning phase. The assumptions are anticipated to occur or will have some impact during the Project. Any negative impact or significant assumption pertaining to the project schedule or budget will be added to the risk management plan.

· Departments: Facility access, power requirements, and section management approvals.

· Department managers will ensure access to buildings and server rooms will be provided with twenty-four-hour access as required.

· Current system has installed upgrade power requirements to meet requirements for all new hardware.

· Department managers will provide forty-eight-hour approvals for any change documentation to include submission, review, and signature authority.

· Schedule: Project tasks, phases, and work breakdown structure.

· Hardware and materials will be available onsite prior to installation.

· Project will be phased based on inspection points determined by customer.

· Budget: Management reserve, funding request, and signature authority.

· Project currently holds a 10% management reserve.

· Funding request will follow organizational request and approval process

· Funding request over one hundred thousand will require secondary approval from financial approval board.

· Hardware: EIS system, location, and connections.

· Each department's current system has been upgraded to handle the new additions of hardware for this Project.

· Each department manager has predetermined the locations and footprint for new hardware.

· All cabling and connectors will be procured through department accounts prior to Project.

· Each vehicle and trailer will be upgraded with new hardware and software systematically when due for monthly maintenance at the service center.

· Software: Design, software development, and technical documentation.

· Design will be compatible and able to run on existing and new hardware.

· Software development will be complete before installation.

· Customer to provide all technical documentation to current system requirements to aid in the development and installation.

1.2.4 Project Constraints

The Project is constrained by the following:

· No part of the legacy system, Pinnacle Business Systems (PBS), is salvageable (except for the data) so no costs can be recouped or time savings from building off of the legacy system. PBS will be completely retired after we go online with the new system.

· Historical data from the old system, PBS, needs to be able to be imported into the new system.

· The cost for the Project should not exceed $1.4 million

· The Project is estimated to take 6 to 8 months; if this changes, the project schedule needs to be revised

· In order for the new system to have a longer shelf life and the ability to more easily upgrade to more advances processing and functionality, the system should avoid proprietary technology when possible and the database structure be off-the-shelf technology with minimum customization.

· The new enterprise mail service should allow mobile (PDA and smart phone) access to email.

· The new system will need to be accessible and have a consistent experience across the various places it can be accessed – workstation in remote vehicles, on-site workstations, workstations in construction site trailers, and laptops for field environment.

2. SCOPE MANAGEMENT

2.1 Work Breakdown Structure

2.2 WBS Updates

All requests to change the WBS will be treated as a change control project because of the change's potential to impact the scope, schedule and/or budget. These requests need to go through the formal submittal and approval process. The Project Manager and relevant stakeholders will review the proposed request and take into account the potential for scope, schedule or budget change and approve or deny the request as necessary. If the change is required and inevitable and has a large impact to the Project, a new project charter should be drawn up with the adjustments incorporated. The entire project plan will need to be reviewed for impact, not just the directly related items (Bowen, n.d.).

2.2.1 PM 691 WBS Modifications

During the time and cost management planning our team has identified information that was changed in the WBS. As each step of the Project is analyzed further, it is important to look back and see what new information may need to adjust. For our team, the primary focus of change was what time we estimated for our WBS tasks.

During the time management planning the team discovered a few tasks that were not dependent on others and could therefore be started earlier. By starting these tasks earlier we have a better likelihood of early completion which could shorten our critical path leading to cost savings and finishing ahead of schedule. The tasks that have changed (this information is reflected in the WBS) are primary tasks 1.2, and 1.3. The main tasks 1.2, and 1.3 have adjusted to start on June 1 rather than on July 1, with each sub step maintaining the same time allotted with earlier end dates. For exact date changes, both the previous time and new times are annotated within the WBS. Essentially the start and end dates for each task has been moved to the left which will hopefully lead to gaining time and finishing the entire Project early.

All of the WBS changes were approved by the project manager and therefore do not require a change request to be implemented. The WBS now reflects the correct dates respective to each corresponding activity. This timeline allows for additional slack as well as offers the chance to finish early and begin work on other sections of the Project.

2.3. Change Management or Control Management Plan

· Overall Strategy: The Change Management Plan (CMP) has been established to serve as a guide and process procedure to ensure efficient and successful documentation in executing any required changes within the Project. The Change Management Plan seeks to gain single point of accountability to collect, review, analyze, approve, and provide authorization to implement the requested changes. In addition, the CMP provides clear paths for communication of changes to permit multiple teams to work together on meeting the desired goals and objectives of the Project and organization. Other items that are addressed in the CMP safeguards or direction to maintain budgetary limits, project risk, customer satisfaction, and overall productivity. The final elements of the CMP are reporting and performing closeout of the documentation to check all the requirements of the changes have been fully integrated and implemented.

· Overview: The Change Mange Plan (CMP) is a revision-controlled document for the business. For each Project the CMP document is tailored to the requirements of the single Project. The key members, roles, and responsibilities are detailed in the plan for use for the life of the Project.

· Location: The Change Manage Plan has been incorporated into this Project Management Plan as part of the Appendix B: Forms. (1) Change Management Plan Version 1.0; Dated 6/10/2020. (2) Change Management Request Form CR001-01, Revised 6/10/2020. Copies of each stand-alone document will be provided during Project Kickoff and all form templates can be found within the organization's Document Forms Database.

2.4 Deployment Plan

2.4.1 Deployment Overview

· Deployment Plan provides detailed information on the deployment of software and hardware. Include in the Deployment Plan are pre-release considerations, schedule and resource information, training and notification of deployment requirements, and operations and maintenance planning

· Users will be asked to back up their data 4 weeks prior to initial deployment

· All hardware including server/network racks, workstations, monitors, laptops, printers, software CDs/DVDs, new vehicles, new trailers, and their components/peripherals will be delivered by UPS 6 weeks prior to installation

· EIS system will be deployed to 10% of each type of users for feedback first prior to full scale installation

· Phase 2 & final installation will start after positive customer feedback has been received

· Pre-release considerations

· Assumptions/Dependencies/ Constraints

· Department managers will ensure access to buildings and server rooms will be provided with twenty-four-hour access as required. Hardware and materials will be available onsite prior to installation. All cabling and connectors will be procured through department accounts prior to Project.

· Each department's current system has been upgraded to handle the new additions of hardware for this Project. Each department manager has predetermined the locations and footprint for new hardware.

· Each vehicle and trailer will be upgraded with new hardware and software systematically when due for monthly maintenance at the service center.

· Design will be compatible and able to run on existing and new hardware.

· Software development will be complete before installation.

· Historical data from the old system, PBS, needs to be able to be imported into the new system.

· Old data is migrated to the new system prior to installation. Application analyst will be the lead for this effort.

· Testing is done prior to partial and full-scale system installations.

· End users are aware of installation schedule.

· Ensure clear communication of any anticipated disruption

· Feedback is handed out and collected to evaluate the success of the installation and address stakeholder needs.

· Allow up to 2 weeks for user training. Training is provided by vendor and included in the original cost.

· Deployment Schedule and Resources

· Training

· Users Training: the week after each deployment. Training will be available as e-training and instructor-led (provided by vendor). Digital copy is available on shared drive for users who cannot make it to these training sessions. Technical Lead and support staff will be responsible for this task. Project Coordinator will work with both on-site and off-site staff to schedule appropriate training dates.

· IT Help Desk Training: Same as above.

· Notification of deployment

· Technical Lead will send out emails to all employees to let everyone know the installation dates and who will be affected

· Project Manager also informs stakeholders and management at staff meetings

· Operations and maintenance planning

· ABS EIS system and website will be maintained by local IT team and vendor's support team via phone or email

· Upgraded new vehicle and trailers will be maintained by the original manufacturer

Efficient time management is the productive use of your time that allows you to organize your days in a way that you complete your work with less energy. The significance of time management is the ability to maximize your time in the organization by using one of the five techniques: Bottom-Up Estimating, Top-Down Estimating, Comparative Estimating, Parametric Estimating & Three-Point Estimating. 

Bottom-up Estimating allows you to generate an estimate for a project. To examine from the "bottom-up," break down larger tasks into detailed tasks, with an estimate time needed to complete the task. Considering each job incrementally, assessing time requires each position is likely to be more reliable. You can later add up the total amount of time needed to execute the plan.

Top-down Estimating allows you to receive an overview of the expected timeline first, using past projects or previous experience as a model. It is beneficial to compare top-down estimates against your bottom-up forecast to ensure accuracy.

Comparative Estimating involves analyzing current or finished functions for which you have some measures of time and resources required. This method is based on experience rather than theory, but it is only useful if the similarity is legitimate.

Parametric Estimating allows you estimate the time required for one deliverable; and then multiply it by the number of deliverables required.

Three-Point Estimating enables you to build in a buffer for ambiguity or uncertainty. The Three-Point Estimates are – best case, worst case, and most likely. This method requires extra effort to create three separate views, that permits you to set a more rational and sensible expectations, based on realistic outcomes.

Schedule compression is the act of slimming down processes, or finding ways to run steps concurrently (Mulcahy, 2013). This Project is no different, and in order to maintain timelines the team is projecting the following plans in case schedule compression is needed. Schedule compression is best employed during the actual life of the Project since it is typically needed in ad hoc situations (Hall, n.d.). If processes run longer than expected, or there are delays that could not have be accounted for, compression must be done to get back in line with expectations (Hall, n.d.). The techniques our team will keep at the ready are Fast Tracking and Crashing. Beyond that, our Project Manager and Technical Lead will continuously look for simpler solutions to speed up activities as problems arise. Many of our solutions are being created by the software engineer and technical team, in the event compression is needed we the team can employ the crashing technique to purchase replacements. Resource Leveling and Resource Smoothing can also be employed to get back to the critical path of the Project by hitting minimums rather than using the best solutions (Mulcahy, 2013). By optimizing resources, we will reduce wait times for materials and speed up the process of employing those resources altogether. When possible, the team will employ both Fast Tracking and Crashing techniques such as purchasing solutions rather than creating them and running as many processes as we can along the critical path parallel to each other.

In order to know when the team must employ schedule compression techniques, we will reference the project baselines. Our project plan already identifies certain baselines which must be met to stay in line with stakeholder expectations. These baselines are:

· Original Scheduled Start and Finish Dates

· Planned Effort

· Planned Cost

These baselines are the teams overall measure of success. If any of these dates or numbers slip, we will face additional costs or running late on the Project. Baselines are used as a reference to success which is why they will be monitored closely and the Project Manager will employ schedule compression as needed throughout the Project to stay on course with the baselines.

In terms of dependent steps that are at risk, luckily much of the deployment plan is a parallel schedule that involves little dependency prior to final deployment. In the acquisitions phase some dependencies at risk are the required interactions between information systems, if the desired product is unable to be acquired or produced, there may be issues with interoperability. While those issues are being addressed, the team can still work on the off-site requirements as well as user training for the migration phase. The biggest preceding step that could postpone the Project is early user rollout. This step is used to ease the transition and provide a window for troubleshooting and testing. In the event prior testing found a problem, or if it is identified in the early user rollout, it will delay the overall migration and completion of the Project. In these situations, we will rely heavily on resource smoothing and the techniques of Crashing/Fast Tracking as applicable. Not all portions of the WBS that have dependent steps are on the critical path which means we can use the associated slack to fix the issues prior to moving on to the dependent work.

The critical path is the longest total duration. Moreover, activities on the critical path cannot be delayed, or the whole Project will be delayed. The critical path has been shown below in the Gantt chart using red bars and arrows. The steps needed to create this Gantt chart include:

· Review the network diagram to ensure all activity relationships are complete

· Review the activity durations, resource assignments and skill levels required to complete each activity

· Review the project calendar and include project dependencies and constraints

· Develop the Gantt chart and determine the time scale and the symbols to identify the activity bars and milestones (PM4Dev.com, 2015)

As noted on this Gantt chart, this critical path has a total of 147 days. The activities on this path include:

· Requirement Documents

· System Development

· System and User Development Testing

· Training and Deployment

· Project Handoff and Closeout

Things that can impact this critical path

· Requirement Changes

· Budget Changes

· Technical issues and challenges during development and testing

6. COST MANAGEMENT PLAN

6.1 Overview of Cost Management: For businesses to conduct prediction on coming expenses to reduce the chances of going over budget, cost management must be a part of the Project. Cost management is the method of estimating, distributing, and managing the costs on a project. Fees are determined during the planning phase of a project and must be approved before work has begun. This Project will be utilizing cost risk, and cost estimating as risk mitigation.

6.2 Cost Risks: A cost risk is any situation that can increase costs in a project due to estimation issues, or scope creep. The largest cost risks associated to this Project can be in the procurement of equipment, if for any reason the value of the equipment we need to purchase rises due to demand, we will not have sufficient funds in our projected budget. Another risk associated to this Project is the need for all equipment and software to work in concert. If even one of the information systems or models of IT equipment is incompatible, and ever worse if this is found out after acquiring it, additional costs will be faced. A third large cost risk is training and maintenance. Certain figures and estimations are attached to the amount of time and money that will be spent on user education and initial maintenance, if these projections are off or the users are more reluctant than we initially thought, additional costs may be incurred.

Contingency is a term used in many aspects of business, and even the military. A contingency is essentially an alternate plan, or a fallback to a situation that may occur. Reserves are pools of money that are set aside in order to cover gaps in a project (Chung, 2017). Contingency Reserves are used to cover the costs of projected risks that come to fruition (Chung, 2017). This money is typically set aside just in case, but for risks that have been previously identified (Chung, 2017). Essentially we are preparing ourselves for a bad situation which is why we are setting aside $100,000 for contingency reserves. These funds will be used to offset the failure of product implementation, the delay in remodeling of trailers, and in case our new purchases of equipment (field laptops, computers, monitors etc.) are insufficient or replacements are needed prior to project completion.

Management Reserves on the other hand are pools of money set aside by upper level management (Chung, 2017). These funds are to be used in the event a complete unknown incident occurs. Management funds are similar to the concept of a rainy day fund, instead of being hedged towards items on a risk register, they are truly funds set aside for the worst case scenario (Chung, 2017). Usually a fairly arbitrary number between 5-15% of the project budget is set aside in addition to anything used for a contingency. For the purpose of SCI the project team has been allocated 5% of the $1 Million budget which gives us $50,000 in management reserves initially. These funds will only be used for situations that arise outside of our risk management plan, and still leaves us with a buffer to avoid running over budget or behind schedule. Throughout the life-cycle of the Project the contingency reserves will slowly decrease and if the funds are not used, they will switch to management reserves. Since contingency reserves are meant for specific purposes, as those windows close meaning the risk is no longer a factor, the money can be used in other situations. See chart below.

6.3 Cost Estimates: There are many factors that are uncertain when cost estimating. The level of skill and experience available also play a vital role. The following techniques are what the team will use to do project cost estimation.

· Analogous Estimating

· Bottom-Up Estimating

· Statistical Modeling

· Three-Point Estimate

· Reserve Analysis

Once the needs of the Pinnacle Business Systems have been determined, the project team will finalize the resource and staffing requirements necessary for the successful completion of the Project. The Project Manager, the Technical Lead, and the Software Engineer will complete the WBS with the help of an internal cost analyst. Some WBS items that cannot be done by in-house personnel and might require the contractor team's assistance to do the cost estimate. Control account and staff labor categories will be created in each WBS element. Based on the labor costs and planned duration of each WBS element, an estimation will be determined (FAST Project Plan, n.d.). WBS element costs will then be totaled and compared with the funding of the Project. Since the project budget has been approved, the Project Manager still need to compare the allocation for each WBS element against the overall budget and adjust as necessary to comply with the budget objective and threshold. Once all the allocations have been reviewed and approved by the project manager and or management, the project cost will be baselined. The project cost baseline may only be changed with authorization by the Project Sponsor (FAST Project Plan, n.d.).

It is also critical that all project team members will need to record their work associated the PBS project. Tracking cost allows us to see where the potential problems may exist concerning project costs and this practice allows us to collect data to generate appropriate metrics and reports. To track cost throughout the project lifecycle, the Project Manager will collect all of the timesheets and calculate the labor costs associated with each cost account. Additionally, all associated invoices will be copied by the receiving department each month and sent to the Project Manager. The Project Manager will calculate the actual costs for all categories and compare them to the baseline costs on a monthly basis. These comparisons will be used to support variance analysis if needed.

The Project Manager will also collect the following metrics to capture and measure cost and schedule performance.

· Cost Performance Index (CPI) which will be reported monthly

· Schedule Performance Index (SPI) which will be reported monthly

· Control thresholds for CPI and SPI

6.3.1 Breakdown Considerations: When estimating the project costs, there are a variety of costs that need to be estimated in order to come up with the total estimate for the cost of the Project. For our Project, the following costs need to be estimated:

· Costs of quality efforts

· Costs of risk efforts

· Costs of the project manager's time

· Costs of project management activities

· Costs directly associated with the Project, including labor, training for the new system, new environment requirements, etc.

· Any connected overhead costs

6.3.2 Project Requirements Breakdown: Costs related to SCI's new environment project will include:

· New Enterprise Information System creation

· $150,000

· 40 new workstations with each including:

· Corresponding equipment

· $2,300 per computer

· $150 per cable set

· Dual 19" flat screens

· $100 per screen

· Headset and webcams

· $70 per combo

· $2,720 per workstation

· $108,800 for all 40 workstations

· Two brand new Remote Office Vehicles with each including:

· $80,000 per custom ROV

· Three workstations in each ROV

· $2,720 per workstation

· $176,320

· 10 refurbished travel trailers with each including:

· $10,000 each

· Two workstations in each trailer

· $2,720 per workstation

· $154,400

· 10 field-use PEMA laptops

· $5,000 per laptop

· $50,000

· Company Website

· $1,500 startup fees

· Updated MS Project Server and MS Office Suite

· $1,000 MS PS

· $12.50 per user per month for MS OS

· $9,900 for first 12 months

· $10,900 (every 12 months)

6.3.3 Overall Costs:

· $1,000,000 - $1,400,000 budget

· $1,000,000 estimated for project expenses

· $651,920 for required for new environment

· Remaining $348,080 budgeted will be allocated for direct and indirect costs previously mentioned

· $150,000 reserves

· $100,000 Contingency

· $50,000 Management

7. COMMUNICATION MANAGEMENT PLAN

7.1.1 Company Mission: To create and expand innovations by creating groundbreaking platforms, empowering businesses of all sizes on their transformation journey.

The mission is its purpose; a mission statement defines the products or services provided to customers or constituents, and stakeholders. Service Construction Inc. provides on-demand construction upgrades to companies to streamline everyday services.

7.1.2 Vision: Empowering our customers with the best product to maximize their potential one-solution at a time.

Vision is the positive impact that the organization wants to have; a vision statement is a formal description of its desired, long-term future state. Vision statements play a crucial role in driving change and performance in organizations (Kirkpatrick, 2004, 2009). Service Construction Inc.'s vision statement is significant because it states precisely our customers' demand with high-quality solutions.

7.2 Communication Matrix: This allows project managers to show how we plan to communicate information to the project audience. The matrix also includes the communication frequency, types, and methods (Biofore, 2011).

Given the medium size of the project team, communication is relatively simple. Team members will make sure to share a copy of all emails with the rest of the team. The project manager will document telephone calls, in-person and virtual meetings, and posts meeting minutes/notes to a shared workspace such as the company's SharePoint website or shared folder. The project manager will maintain a folder in Microsoft Office Outlook for all email correspondence. This will allow for status reports to be distributed biweekly via emails to the entire project team and key stakeholders. The information will include completed tasks, in-progress tasks with percent completed, upcoming assignments, and current risks/issues. Moreover, a report of earned value against the project baseline shall be included.

7.3 Communication Report Types:

7.3.1 Project status report: A project status report tracks the progress of the project activities. The report provides effective communication between key stakeholders and the project team. See Appendix C for the Project Meeting form.

7.3.2 Risk Report: The risk management report identities the risk associated with the Project. The report details the risk level and ways to reduce the risk and manage them (Types of Project Reports | Sinnaps - Project Management Tool, n.d.).

7.3.3 Executive Reports: Executive report is a concise and brief report noting the Project's critical items. The report shows the essence of the information without getting into fine details (Malsam, 2018).

7.3.4 Resource Report: The resources report lets the project team and stakeholders understand how resources are handled throughout the Project. The information will show the breakdown by team members of what tasks are assigned. The report will show if there any problem if and resources are over-allocated.

7.3.5 Variance Reports: The variance report will show any deviation from the plan projection versus the actual results. The information can organize and collect data for the comparisons that can impact the budget and scope (Types of Project Reports | Sinnaps - Project Management Tool, n.d.). Appendix C for Project Meeting form.

8. RISK MANAGEMENT PLAN

9. STAKEHOLDER MANAGEMENT PLAN

APPENDIX A: REFERENCES

6 essential documents for project management success. (2019, May 21). Retrieved from

https://www.techrepublic.com/article/6-essential-documents-for-project-management-success/

Assumptions and Constraints in Project Management. (2019, August 5). Retrieved from

https://pmstudycircle.com/2012/10/assumptions-and-constraints-in-project-management/

Biafore, B. (2020, January 13). The Project Communication Plan. MPUG.

https://www.mpug.com/the-project-communication-plan/

Bowen, R. (n.d.). How are the work breakdown structures and change control connected?

Retrieved from https://www.brighthubpm.com/change-management/103650-the-connection-between-work-breakdown-structures-and-change-control/

Change Control Board: Process & Best Practices. (n.d.). Retrieved from

https://study.com/academy/lesson/change-control-board-process-best-practices.html

Chung, E. (2017, April 20). Contingency Reserve vs Management Reserve for PMP Exam. Edward-Designer.com. Retrieved from https://edward-designer.com/web/contingency- reserve-vs-management-reserve-for-pmp-exam/

Czajka, M. (n.d.). Schedule Variance Analysis. Global Training Institute. Retrieved January 29, 2021, from https://globaltraining.edu.au/global_training_institute/Resource_Library/Project Management Kit/Diploma Templates/Time Management/Schedule Variance Analysis WorksheetTemplate.doc

FAST Project Plans. (n.d.). Project Cost Management Plan Template. Retrieved from

http://www.fastprojectplans.com/cost-management-plan-template.html

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APPENDIX B: FORMS

-001 Change Management Plan Version 1.0; Dated 6/10/2020

-002 Change Management Request Form CR001-01, Revised 6/10/2020

Version 1.0

6/10/2020

APEX BUSINESS SYSTEMS PROJECT

Service Construction, Inc.

Change management Plan

Project Communication Plan

Table 1.1 identifies the communication documents for this Project. The recipients of each preliminary and revised documents, the responsible individuals or identified role for generating and updating the documents, and the frequency of each document will be updated.

Key member's roles and responsibilities for this Project are outlined based on the anticipated communication between roles, which are identified in the following diagram ("6 essential documents for project management success," 2019).

The individuals or roles in the following table have authority to authorize changes or escalate to Change Control Board.

The following example Table 2.3 illustrates the information maintained on the Change Control Log.

· Date of Change Request submittal for review.

· Change Item Description; general description of change.

· Change Request Number; unique identifier in sequential order per Form CR001-01.

· Impact; any known impacts to the Project.

· Document Plan that will require updates.

Table 2.3

The change management process follows the established steps to document and approve changes to the Project. The change control document Form CR001-01 should be completed and submitted follow the approved steps.

Change Control process definition of steps:

· Change Request Initiation – A change request form is prepared, formally submitted and logged

· Change Request Analysis – The change request is analyzed to determine if it has merit and should be considered. If so, additional analysis is conducted to determine what it will take to implement the change, identify project impacts, and provide any additional information that might aid decision-makers in granting or denying approval of the request

· Change Request Resolution/Approval – Decision-makers consider the results of the analysis and determine if the request should be approved, denied, or if more analysis is needed

· Change Request Implementation – Approved changes are planned, scheduled, resourced and implemented

· Change Request Verification and Closing – Implementation of the change is verified, and the change request is closed.

(Project Management Docs.com, Change Request Form, pg. 04.)

Change control board (CCB)

The individuals or roles in the following table have authority to authorize changes or escalate to Change Control Board.

· Chair - calls the board to order, runs the change control board meetings and has final approval on the changes

· Board members - can be from various projects or groups in the company; decide if the change is approved or rejected

· Evaluator - has the responsibility to evaluate how the change will affect scope, schedule and cost of the Project

· Originator - the person that is requesting a change to be approved; presents the information to board

· Modifier - responsible for making changes to the Project

· Project Manager - responsible for successful completion of the Project

· Verifier - ensures that approved changes were made

("Change Control Board: Process & Best Practices," n.d.)

CHANGE REQUEST FORM CR001-01

(Project Management Docs.com, Change Request Form, pg. 11-13.)

APPENDIX C: Communication Plan Forms

Note: Variance Analysis involves comparing actual project results to planned or expected results. Cost and schedule variances are the most frequently analyzed, but variances from plan in the areas of scope, resource, quality, and risk are often of equal or greater importance.

(Czajka, n.d.).

Reserve Allocation

Contingency Reserves

July August September October 100000 90000 70000 50000 Management Reserves

July August September October 50000 60000 80000 100000

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