014 Project Management
Term 2, 2018
014 Project Management
Term 2, 2018
ASSIGNMENT 2
Individual Assignment
Contribution to final Grade: 40%
Due Date: Monday, 1st October 2019 at 5 pm.
Submission Requirements:
• This is an individual assignment.
• No handwritten assignments will be marked.
• In the footer, include the page number.
Learning Outcomes
On successful completion of this assignment, students will be able to:
• Produce professional documentation such as a project report.
• Produce an implementation plan for an information system to a pre-defined standard.
• Prepare a feasibility analysis including a cost / benefit analysis.
A Case Study for Tasks 1
Manage Your Health, Inc. (MYH) is listed in the Fortune 500 Company that provides a variety of healthcare services across the globe. They have 18,000 full-time and 7,000 part-time employees. A study found that MYH, Inc. pays 45% more than the industry average for their employee healthcare premiums, due to the poor health of its employees. Therefore, the company has planned to provide a web application that provides online functionalities to help their employees enrol and manage their health-management and recreational programs. This application will have the following capabilities.
• Allow employees to register for company-sponsored recreational programs such as soccer, netball, bowling, jogging and walking.
• Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, and stop smoking.
• Track employees’ involvement in these recreational and health-management programs.
• Offer incentives for people to join the programs and do well in them.
Financial information
The project is expected to cost the company $1,600,000 for the web application development and $800,000 for web and database servers. It is expected to take 6 months to complete. They believe that this application will help improve their employees’ health within one year of its rollout so that the company can negotiate lower health insurance premiums, providing a net saving of at $600/employee/year for full-time employees and $400/employee/year for part-time employees over the next four years. The company does not expect any savings in employee health care premiums during the year of investment and for the first year when the application will be up and running. A yearly budget of $300,000 has been set aside for the next three years for system maintenance. A new role “Application Operations Manager” has been created with the responsibility to work with the development team and to provide on-going application management and support after the rollout of the application. For the first year, this role will cost the company $120,000 with a 5% yearly increase in the annual salary. Assume that the discount rate is 9%.
Task 1: Business case financial analysis (50 marks)
• You are required to prepare a financial analysis up to year 3 using the table provided below for the MYH’s project in order to find the Return on Investment (ROI) and payback period of the project based on the financial information provided. (35 marks)
Discount rate
8%
PROJECT 1
Year 0
Year 1
Year 2
Year 3
Total
Revenue
Discount Factor
Discounted revenue
Costs
Discount factor
Discounted Cost
Discount benefit
Cumulative benefit
• Calculate the Return on Investment (ROI) of the project. (5 marks)
• Calculate the payback period of the project. (5 marks)
• Justify if the proposed project is worthwhile undertaking. (5 marks)
Task 2: Project Schedule Development (35 marks)
The Table shown below provides the activities (A to L) and their estimated duration for implementation of web application designed for Manage Your Health, Inc. (MYH). The start date for activity A and B is 25th September, 2019.
Task
Predecessor
Duration (days)
A
–
30
B
–
30
C
A
35
D
A
25
E
C
25
F
D
20
G
B
20
H
B
10
I
E,F, G
10
J
H
8
K
J
10
L
I, K
10
• Draw a Gantt chart to show the distribution of activities in this project. The diagram must be clearly labelled. (10 marks)
(Students can use any of online tool to draw Gantt Chart.)
• Draw the network (sequence) diagram to show the order in which all the activities will be undertaken in this project. The diagram must be clearly labelled. (10 marks)
(Students can use any of online tool to draw Network Diagram.)
• List all the possible paths for this project with their total durations. (5 marks)
• Clearly identify and briefly explain the critical path for this project. (5 marks)
• This project is expected to be up and running within 7 months from the time the work on the project is started. Does this opening date appear feasible? (5 marks)
Task 3: Project Feasibility Report (65 marks)
3.1 Develop a feasibility report considering the implementation of the web application for Manage Your Health, Inc. (MYH). Use the template of feasibility report provided with the assignment. The assignment will be marked with following Criteria. (65 Marks)
Criteria
Marks
Description of project
15
Technology Consideration
10
Organization and Staffing.
10
Schedule
10
Financial Projections
10
Findings and Recommendations
10
Total Marks for Report
65
This assignment will be marked out of 150 and it contributes 40% of the final mark for the paper.