Project Procurement and Risk Management Assignment

Trans Lan

Trans LAN Project Trans Systems is a small information systems consulting firm located in Meridian, Louisiana. Trans has just been hired to design and install a local area network (LAN) for the city of Meridian’s social welfare agency. You are the manager for the project, which includes one Trans professional and two interns from a local university. You have just finished a preliminary scope statement for the project (see below). You are now brainstorming potential risks associated with the project.1. Identify potential risks associated with this project. Try to come up with at least five different risks.2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of the risks. 236 Chapter 7 Managing Risk PROJECT SCOPE STATEMENTPROJECT OBJECTIVE To design and install a new local area network (LAN) within one month with a budget not to exceed $90,000 for the Meridian Social Service Agency with minimum disrup-tion to ongoing operations. DELIVERABLES∙ Twenty workstations and twenty laptop computers.∙ Server with dual-core processors.∙ Two color laser printers.∙ Windows R2 server and workstation operating system (Windows 10).∙ Migration of existing databases and programs to new system.∙ Four hours of introduction training for client’s personnel.∙ Sixteen hours of training for client network administrator.∙ Fully operational LAN system.MILESTONES1. Hardware January 22.2. Setting users’ priority and authorization January 26.3. In-house whole network test completed February 1.4. Client site test completed February 2.5. Training completed February 16.TECHNICAL REQUIREMENTS1. Workstations with 17-inch flat panel monitors, dual-core processors, 4 GB RAM, 8X DVD+RW, wireless card, Ethernet card, 500 GB hard drive.2. Laptops with 12-inch display monitor, dual-core processors, 2GB RAM, 8X DVD+RW, wireless card, Ethernet card, 500 GB hard drive and weigh less than 4½ lbs.3. Wireless network interface cards and Ethernet connections.4. System must support Windows 11 platforms.5. System must provide secure external access for field workers. LIMITS AND EXCLUSIONS1. On-site work to be done after 8:00 p.m. and before 7:00 a.m. Monday through Saturday.2. System maintenance and repair only up to one month after final inspection.3. Warranties transferred to client.4. Only responsible for installing software designated by the client two weeks before the start of the project.5. Client will be billed for additional training beyond that prescribed in the contract. CUSTOMER REVIEW Director of the city of Meridian’s Social Service Agency.

Appendix 12.1

Contract Management LEARNING OBJECTIVES After reading this appendix you should be able to: LO A12-1 Describe the procurement management process. LO A12-2 Describe the differences between Fixed-Price and Cost-Plus Contracts and their advantages and disadvantages. 452 Chapter 12 Outsourcing: Managing Interorganizational Relations Since most outsourced work on projects is contractual in nature, this appendix discusses the different kinds of contracts that are used, their strengths and weaknesses, and how contracts shape the motives and expectations of different participants. Contract manage-ment is a key element of any project procurement management system. It is beyond the scope of this book to describe this system. However, the basic processes are listed here to put contract management and related topics like Request for Proposal (RFP) (see Appendix 12.1) in perspective. Six main steps comprise procurement management:∙ Planning purchases and acquisitions involves determining what to procure, when, and how. This entails the classic build-versus-buy analysis as well as determination of the type of contract to use.∙ Planning contracting involves describing the requirements for products or services desired from outsourcing and identifying potential suppliers or sellers. Outputs include procurement documents such as a RFP as well as selection criteria.∙ Requesting seller responses involves obtaining information, quotes, bids, or pro-posals from sellers and providers. The main outputs of this process include a quali-fied sellers list and specific proposals.∙ Selecting sellers involves choosing from potential suppliers through a process of evaluating potential providers and negotiating a contract.∙ Administering the contract involves managing the relationship with the selected seller or provider.∙ Closing the contract involves completion and settlement of the contract. Most companies have purchasing departments that specialize in procurement. Often purchasing agents will be assigned to project teams and they work with other team members to come up with optimum solutions for the project. Even if project teams are not directly involved in contract negotiations and the decision to outsource project work, it is important that the team understand the procurement process and the nature of different kinds of contracts.