microsoft word - project management ass 1

8/8/2019 Microsoft Word - Project Management Ass 1

http://slidepdf.com/reader/full/microsoft-word-project-management-ass-1 1/22

Project Management (ASST 8432)

Assignment 1 (Due Date Oct 8)

Peter Mark SMITH – Student No 20724513

The Model Project I have selected is an actual development project for the company I am currently

working for. I have changed some data and the set the starting date as next year.

The project working name is “OCIV CBM WELL SURVEILLANCE PROJECT (KALIMANTAN).

The project is to supply equipment, software and services suitable for monitoring CBM test wells in a

remote location in Indonesia.



Table of Contents

1. Project Charter .................................................................................................................................. 3

2. Stakeholder Analysis ......................................................................................................................... 6

3. Work Break-down Structure (WBS) .................................................................................................. 8

4. Quality Plan ..................................................................................................................................... 10

5. Communications Plan ..................................................................................................................... 11

6. Purchase / Build Plan ...................................................................................................................... 12

7. Compensation and Incentive Program ........................................................................................... 13

8. Risk Analysis and Evaluation ........................................................................................................... 14

9. CPM Schedule: ................................................................................................................................ 15

10. CPM / EV ..................................................................................................................................... 16

11. References .................................................................................................................................. 17

Appendix 1 .............................................................................................................................................. 18

Appendix 1.2 Gantt Chart with Resources Loaded ................................................................................. 19

Appendix 1.3 Budgets Costs & Schedule ................................................................................................ 20

Appendix 1.4 EV Report 1 ....................................................................................................................... 21

Appendix 1.5 EV Report 2 ....................................................................................................................... 22



Objectives Definition: State success criteria. If they are completed, the project mission will be accomplished.

Format: To + Action Verb + Measurable Output + Quantity + Time Frame

• To build a Well Surveillance and Control System that meets the customers signed offrequirements to the price agreed by June 10, 2011.

AssumptionsDefinition: Clarify any uncertainties

• The physical hardware and LOWIS CBM Well Surveillance software will be available withoutmajor delays.

• The customer is the domain expert in the design of the product.

Constraints Definition: State limits placed on the project or project team

• This project must be completed by June 2010 to order for the system to ready for the pilot welloperation. Delays will hinder the success of the campaign and potentially hurts the clients business.

Time/Decision

Points

Definition: List key events which usually represent a significant deliverable.

They may be process indicators, decision gates, funding decision points or

other significant phases.

Activity DateRequirements Gathering 10/01/2011

System Design 10/2/2011

Detail Design 11/3/2011

Lowis Configuration, RTU Code & Test 11/5/2011

System Acceptance Test 18/5/2011



Cost/Financial Assumptions Definition: Usually information from the feasibility analysis. Answers

funding questions.

The System will cost approximately USD$120,000 on the basic assumption that a qualified, capable developer for

the RTU and a LOWIS Configuration Engineer can be sourced internally to the company.

User Acceptance

Criteria/Quality

Definition: Basis for quantifying quality.

• The project team guarantees that all requirements will meet the client’s needs by conducting periodicstakeholder meetings that will require signature from the stakeholder to indicate the approval project

requirements and progression.

• System Acceptance Test and Factory Acceptance Tests will be developed and provided to users for testing

and approving all functionality provided by the system. Acceptance of the functionality will require a signed

document from the testing users and the business process owner.

Major

Risks

Definition: Define and list events which can affect the project’s success.

Internal Risks:

• In general, a major risk is getting behind schedule and missing the completion date

• Cost overruns can adversely impact the cost saving and revenue.

• Lack of stakeholder’s involvement in project due to remote development model used.

• Incompletely or inadequately defined technical requirements

• Failure to locate suitable RTU / LOWIS developers



• Company’s need and behavior

2. Stakeholder Analysis

Stakeholder Identification::

Internal Connected / Mixed External

WFT Employees BP Migas (regulator) Indonesian Government

Management (PM) PT CATUR (WFT Agent) Australian Government

OCIV (Client) RTU Supplier Lowis Product Line GBU

Stakeholder Interests, values & concerns:

Nam,e Interests / Values & Concerns Ranking (in power)

ABA (Client) Quality / Timeliness 1 - Highest

Matrixgroup Quality / Timeliness /Cost

control in order for a return on

investment.

2

Geoffshore Return on investment 3

Management (PM) Successful project completion 4

Competitors etc To see project fail. N/A

Indonesian Government Legal (Labor laws / taxation) 5

Australian Government Legal (Customs / taxation) 6

Strategic challenges caused by Stakeholders:

1. WFT will be pushing for maximum speed in order to reduce costs. OCIV want a top product

regardless of WFT’s concerns. The challenge for the PM is to balance the two.

2. PT Catur – the “shell” company being used in Indonesia – will not bear much strategic influence

however the longer the project runs – the more money they potentially make (time and

materials basis).

3. WFT and the Management (PM) have the potential to come into conflict if a unified front is not

presented to the client.



KEY STAKEHOLDERS

Name Project Core Team:

OCIV Project Representative (To be nominated)Indonesia Team Leader (To be nominated)Peter Mark SMITH

Subject MatterExperts (SME)

(Include company &channel designations if applicable)

OCIV Representative

WFT GBU Representative

APPROVALS

Type Name Signature Date

Project Manager Approval:

Peter Mark SMITH

Owner/Sponsor Approval:

OCIV Ltd



3. Work Break-down Structure (WBS)

Defined as a logical breakdown of the tasks required to meet the deliverables .

A generic list of the tasks required to be performed I have identified are below. It is acceptable to show

these in outline form as a WBS is hierarchical. The project management tasks are included as they are a

key part of ensuring a project succeeds. (Comments added for ease of understanding).

1 Project Initiation

1.1 Project Charter

1.2 Project Approval

2 Project Planning

2.1 Define Requirements

2.2 Prioritize Requirements

2.3 Complete Basic Design (Software and Hardware interface and basic task requirements)

3 Development Tasks (Primarily detailed design tasks)

3.1 RTU Detailed Design (Software task)

3.2 Communications Detailed Design (hardware task)

3.3 LOWIS Configuration Detailed Design (Software task)

4 Programming (Software)

4.1 RTU Programming (Software)

5 Testing Tasks (Software)

5.1 Pre-FAT Test (Software and Hardware together)

5.2 Punch List Rework

5.3 Factory Acceptance Test (FAT)

6 Implementation Phase



7.1 Closeout Phase Review

7.2 Closeout Phase CHECKPOINT



4. Quality Plan

Quality Statement

The following standards will be applied:

WFT : ISO9001

OCIV is committed to maintaining OHSAS 18001 and ISO 14001 certification to drive continuousimprovement in their HSE program.

WFT & Quality, Health, Safety and the Environment

In all of our operations, WFT’s most important mission is to pursue the highest possible standards to

maximize our Quality, Health, Safety, and Environmental performance. In order to achieve this goal, the

effective implementations of our policies on these issues are the top priority for all employees. By

maintaining compliance with all applicable laws and regulations within the areas of our operation and byconducting all operations in a manner that promotes safe work practices and avoids risk to our

employees, our neighbors, and the environment, we can optimize the value created for our customers.

* Assure the quality and technical integrity of our products and services so that they are fit for purpose

and that their functional specifications match the customer’s application in all instances.

* Conduct our operations with zero risk to personnel or the environment.

* Seek continuous improvement.

* Consult regularly with employees, and others, with regards to Quality, Health, Safety and the

Environment.

Clearly – regular communications and continuous checking are part of the quality plan.



5. Communications Plan

The communications plan below shows the expected categories and destinations of the communications

on this project. Formal documents should always be mailed through for the legal teams to maintain

copies of.

Item Purpose From / To Timing Method

1 Regular Updates PM -> Client (CC PT

Catur)

Weekly E-mailed report

3 Ad-hoc technicalclarifications

PM->Client Ad-hoc E-mail orTelephone

4 Formal Sign-offs PM -> Client and return

(CC PT Catur)

As per Project Plan E-mailed report

with printout

mailed by post.

5 FAT PM -> all parties As per Project plan Witnessed Test

6 SAT PM -> all parties As per Project Plan Witnessed Test

7 Purchase orders/ scope

variation requests

Client -> PM Ad-hoc E-mail with printout

mailed by post.



6. Purchase / Build Plan

The BOM (Bill of Materials) is shown below.

RTU Equipment Qty

Siemens 1

Telemetry Equipment

MDS Radios (7 + Master) 21

NETioB-MD211WBFC10N

Inmarsat Terminal 1

LOWIS Licenses Per Well / Year 21

Solar Panels / Chargers / Batteries 1

Data Charges

Inmarsat per month 12Cables / Enclosures / Racks

Allow 1

The purchasing options for all of this equipment is to buy from external vendors on a quoted basis with

the exception of LOWIS which is an external product.

In addition to materials there is also configuration and programming required. This will be an internal

purchase based on WFT having the domain knowledge and ready resources to do the work.

For this the following “ideal” resources will be required

Ideal Team

Resource Task Comments

Project Manager Manage the project / quality /

communications

Expat

System Engineer To set out the basic design ExpatLOWIS configuration engineer Set up LOWIS Configuration

based on well / controller basic

design document

Expat

RTU / Instrument engineer Design and Program RTU based

on basic design document

Expat



7. Compensation and Incentive Program

This has to be within the confined of the WFT HR Policies regarding renumeration and compensation. As

such there is little variability or creativity possible. However there are the possible schemes available;

Position Incentive Bonus Rate Comment

Engineers (in field) “Field” bonus for working during the TBA Only if the engineer

is in the field during

final deployment or

during pilot projectvisits.

Engineers (in shop) “Overtime” for working more than 8 hours

per day

As per

HR

Also includes taxi

fare and meal

reimbursement.

PM None possible under WFT HR policy N/A -

All Staff “End of Project” Party Budget

USD1000

This is possible out

of the project

budget.

While the above C&I plan may not seem generous – it does allow the PM some ability to “reward” good

behavior and furthermore with the overtime category it allows the PM to collapse or crash the timeline

by extending work days past 8 hours and possibly into the weekend and public holidays.



8. Risk Analysis and Evaluation

The determined risks are

Internal Risks:

• In general, a major risk is getting behind schedule and missing the completion date

• Cost overruns can adversely impact the cost saving and revenue.

• Lack of stakeholder’s involvement in project due to remote development model used.

•

Incompletely or inadequately defined technical requirements• Failure to locate suitable RTU / LOWIS developers internally.

• Inability to hire external resources if internal resources become unavailable.

• Costs come in under budget this can positively affect the release of the system and improve the ROI

for system.

• Poor system design leading to faults.

• LOWIS does not perform as expected

External Risks:

• Government regulations pertaining to HR/location/Indonesia (BPMigas)

• Decisions by project owner (scope variations)

• Material, space or labor resources (delays in supply or shortages)

Risk Matrix

The risks above have been analyzed on an P (Occurrence) vs Severarity basis.

P r o b a b i l i t y o f O

c c u r r e n c e

High

Low

Late Delivery

Poor Design Material shortages

(slow delivery)

Cost Overruns

Poor technical

requirement capture

Scope changes Inadequate internal

resources

Lack of OCIV

involvement

LOWIS issues No BPMigas Approval

Poor system design

Low High

Severity of Consequence / Opportunity



9. CPM Schedule:

“TurboProject uses the critical path method (CPM) to calculate your project’s schedule. This method

calculates the overall duration of the project by summing the durations of the activities in the workflow.

CPM determines the sequences of work that are essential to meeting project goals. TurboProject begins

calculating the schedule when you enter the first activity. Each additional detail that you add causes the

schedule to be recalculated.

TurboProject displays the critical activities in red, and the non-critical activities in blue.” (2)

The initial CPM schedule (without cost and resource loading) is show in Appendix 1. The data collection

relied on the experience of the author – particularly for the duration of the tasks. There is real concern

that the metrics of this may not be correct.

We can see that in the CPM First Pass (Appendix 1) the total Project Duration is 106 man days with an

estimated completion date May 30th.

CPM Schedule with Resources and Costs:

Appendix 1.2 shows the resources loaded.

Appendix 1.3 shows the Budget Cost & Schedule. This is considerably more than expected in the original

budget where a hardware markup basis was used to recover development costs. The costs have been

taken from the internal costings used in WFT - these typically cover the base employee cost plusadditional allocations for common resource usage (office, power , phone etc).



10. CPM / EV

In order to apply earned value to your project plan, you will need to complete the following six tasks:

1. Enter Resources with hourly bill rates in the Resource Sheet view

2. Assign resources to tasks in the Gantt Entry view

3. Save the Project Baseline

4. Record Actual Start/Finish and Actual Work each week in the project plan

5. Review EVA metrics using the Earned Value views and reports

6. Calculate Schedule Performance and Cost Performance indices (1)

Appendix 1.4 shows part of the EV report generated at the beginning of the project- as expected there

is no variances (as there has been no progress)

In order to complete this exercise I am progressing the project to 15 May 2011. I will enter in actual

start and finish dates, alter some progresses and then calculate the EVA metrics.

Appendix 1.5 shows that where a task has been over run - incomplete (LOWIS) the immediate effect is a

cost variance as expected.



11. References

( 1) http://www.tacticalprojectmanagement.com/earned-value-management-tips/how-to-calculate-eva-

in-microsoft-project.html



Appendix 1

1 – CPM Schedule (1st pass)



Appendix 1.2 Gantt Chart with Resources Loaded



Appendix 1.3 Budgets Costs & Schedule



Appendix 1.4 EV Report 1

--------------------------------------------------------------------------------------------------------------------------------------------------



Appendix 1.5 EV Report 2

microsoft word - project management ass 1

Documents