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# Concordia University

## INSE-6230 Total Quality Project Management

Professor:

ASSIGNMENT ONE

Students:
MARIA CATALINA MALPICA - ID: 6712045
MARIA ELIZABETH OSORIO ID: 7401256

FALL 2014

1 Questions Chapter 4
INSE -6230 Total Quality Project Management

1.1 Question 3
Use spreadsheet software to create Figures 4-4 through 4-7 in this text. Make
sure your formulas work correctly.

Figure
4.4
Discount
Rate 10%

## PROJECT 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL

\$ \$ \$ \$ \$
Benefits - 2,000 3,000 4,000 5,000 \$ 14,000
\$ \$ \$ \$ \$
Costs 5,000 1,000 1,000 1,000 1,000 \$ 9,000
\$ \$ \$ \$ \$
Cash flow (5,000) 1,000 2,000 3,000 4,000 \$ 5,000
\$
NPV 2,316

## YEAR YEAR YEAR

PROJECT 2 YEAR 1 2 3 4 YEAR 5 TOTAL
\$ \$ \$ \$ \$
Benefits 1,000 2,000 4,000 4,000 4,000 \$ 15,000
\$ \$ \$ \$ \$
Costs 2,000 2,000 2,000 2,000 2,000 \$ 10,000
\$ \$ \$ \$ \$
Cash flow (1,000) - 2,000 2,000 2,000 \$ 5,000
\$
NPV 3,201

Figure 4.5
Discount rate 8%
Assume the project is completed in Year 0
YEAR 0 YEAR 1 YEAR 2 YEAR 3 TOTAL
\$ \$ \$ \$
Cost 140,000 40,000 40,000 40,000

## Discount Factor 1.00 0.93 0.86 0.79

\$
Discounted costs 140,000 37,200 34,400 31,600 243,200

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INSE -6230 Total Quality Project Management

\$ \$ \$
Benefits \$ - 200,000 200,000 200,000

## Discount Factor 1.00 0.93 0.86 0.79

\$
Discounted Benefits - 186,000 172,000 158,000 516,000

## Discounted Benefits- (140,000 \$ NP

Costs ) 148,800 137,600 126,400 272,800 V

## Cumulative Benefits- (140,000

Costs ) 8,800 146,400 272,800

ROI 112%
PAYBACK IN YEAR
1
Figure 4.6

PAYBACK
600000

500000

400000

300000
\$

200000

100000

0
0 1 2 3

YEAR

## Cumulative cost Cumulatif benefits

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INSE -6230 Total Quality Project Management

Figure 4.7

## Weig Proje Proje Proje Projec

Criteria ht ct 1 ct 2 ct 3 t4
Supports key buisness
objectives 25% 90 90 50 20
Has strong internal sponsor 15% 70 90 50 20
Has strong costumer support 15% 50 90 50 20
Uses realistic level of
technology 10% 25 90 50 70
Can be implemented in ne
year or less 5% 20 20 50 90
Provides positive NPV 20% 50 70 50 50
Has low risk in meeting scope,
time and goals 10% 20 50 50 90
Weighted project scores 100% 56 78.5 50 41.5

## WEIGHTED SCORE BY PROJECT

Project 4

Project 3

Project 2

Project 1

0 20 40 60 80 100

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INSE -6230 Total Quality Project Management

1.2 Question 4

Perform a financial analysis for a project using the format provided in figure
4-4. Assume the projected costs and benefits for this project are spread over
four years as follows: Estimated costs are \$200,000 in year 1 and \$30,000
each year in years 2, 3, and 4.
Estimated benefits are \$ 0 in year 1 and \$ 100,000 each year in years 2, 3,
and 4. Use a 9 percent discount rate, and round the discount factors to two
decimal places.
Create a spreadsheet or use the business case financials template provided
on the companion web site to calculate and clearly display the NPV, ROI, and
year in which payback occurs. In addition, write a paragraph explaining
whether you would recommend investing in this project, based on your
financial analysis.

Discount rate 9%
Assume the project is completed in Year 0

## YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL

\$ \$ \$ \$
Cost 200,000 30,000 30,000 30,000

## Discount Factor 1 0.84 0.77 0.71

\$
Discounted costs 200,000 25,250 23,166 21,253 269,669

\$ \$ \$ \$
Benefits - 100,000 100,000 100,000

## Discount Factor 1.00 0.84 0.77 0.71

\$
Discounted Benefits - 84,168 77,218 70,843 232,229

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INSE -6230 Total Quality Project Management

## Discounted Benefits- (200,000 \$

Costs ) 58,918 54,053 49,590 (37,440) NPV

## Cumulative Benefits- (200,000 (141,082

Costs ) ) (87,030) (37,440)

ROI -14%

During the first 4 years the payback does not occur. The return on
investment (ROI) is 14%, what means that the investor would lose his money.
The higher the ROI, the better, and it is recommended to have more than
100%, in order to have the money back. For those reason we do not
recommend investing in in this project.

1.3 Question 5

## Create a weighted scoring model to determine grades for a course. Final

grades are based on three exams worth 20%, 15% and 25%, respectively;
homework is worth 15%; and a group project is worth 25%. Enter scores for
three students. Assume student 1 earns 100% (or 100) on every item.
Assume Student 2 earns 70% on each of the exams, 80% on the homework,
and 95% on the group project. Assume student 3 earns 90% on Exam 1, 80%
on Exam 2, 75% on exam 3, 80% on the homework, and 70% on the group
project. You can use the weighted scoring model template, create your own
spreadsheet, or make a matrix by hand.

## Weig Studen Studen Studen

ht t1 t2 t3
First exam 20% 100 70 90
Second
exam 15% 100 70 80
Third exam 25% 100 70 75

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INSE -6230 Total Quality Project Management

## Homework 15% 100 80 80

Group
project 25% 100 95 70
Total 100% 100 77.75 78.25

Student 3

Student 2
Students

Student 1

0 10 20 30 40 50 60 70 80 90 100

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INSE -6230 Total Quality Project Management

2 Questions Chapter 5

2.1 Question 3

Create the same WBS described in Exercise 2 using Project 2010, indenting
categories appropriately. Use the outline numbering feature to display the
outline numbers manually. Notice that Project 2010 uses PMIs standard
numbering scheme but MindView does not. You may want to enter the
numbers to ensure that they appear as desired and are displayed in all
reports. Do not enter any durations or dependencies. See appendix A or
project 2010s Help for instruction on creating WBS. Print the resulting Gantt
chart on one page, being sure to display the entire task name column.

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INSE -6230 Total Quality Project Management

2.2 Question 5

## Introducing self-checkout registers at your schools bookstore

Updating 50 laptops from project 2007 to project 2010
Providing a new Internet cafe onsite at your organization
Developing an app that you and your friend will create and sell online
within three months
Earning a CAPM or PMP certification
Decide on all the level 2 categories for the WBS. Use your choice of software
to create a WBS in chart form and as tasks in a Gant chart. Do not enter any
durations or dependencies. Be sure to include all deliverables and work
required for the project. Make notes of questions you had while completing
this exercise.

## Project chosen: Updating 50 laptops from project 2007 to project 2010.

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INSE -6230 Total Quality Project Management

2.3 Question 6

Review three different template files in the Microsoft Project 2010 templates
folder, from Microsofts templates on Office online link at
http://office.microsoft.com/project, or from another source. What do you
think about the WBS? Write a short paper summarizing your analysis,
providing at least three suggestions for improving one of the WBS.

## A template file is a good guideline for developing work breakdown structure

(WBS) of a project, it will help improve the work and to save time.
Microsoft Project includes a variety of templates for free that can be used as
start point for different type of projects.
This exercise aims to review 3 of those templates focusing on the WBS of
each one.
The chosen templates are:
1. Microsoft Windows Server 2003 Deployment.mpp:
2. Residential Construction Project Plan.mpp
3. Software Development Plan.mpp

## An ideal way to develop the WBS is following the project management

process groups: 1. Initiating; 2. Planning; 3. Executing; 4. Monitoring and
Controlling and 5. Closing.
Considering that we do not know the real scope of the project the review will
be performed just based in the contents of the mentioned process groups.

## Microsoft Windows Server 2003 Deployment

The table below presents a summary of the main tasks. The first observation
is that the WSB numbering was not included. As a part of this exercise an in
order to facilitate the review we developed the numbering.

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INSE -6230 Total Quality Project Management

## Main tasks Microsoft Windows Server 2003 Deployment template

WB
S
1 Microsoft Windows Server 2003
Deployment
1.1 Envisioning
1.1. Evaluate corporate business
1 objectives
1.1. Determine technology goals and
2 objectives
1.1. Formulate preliminary cost/benefit
3 analysis
1.1. Determine project scope
4
1.1. Determine major milestones
5
1.1. Secure executive
1.1. Develop executive elevator pitch for
7 internal marketing on solution value
1.1. Envisioning complete
8
1.2 Planning
1.2. Assemble Project Teams/Define
1 Roles
1.2. Detail Current Computing
2 Environment
1.2. Detail Preliminary Design Objectives
3
1.2. Identify Coexistence Strategies
4
1.2. Establish Test Lab Environment
5
1.2. Perform Risk Assessment
6
1.2. Define Communication Strategy
7

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INSE -6230 Total Quality Project Management

## 1.2. Define Education/Training Strategy

8
1.2. Review plan for development
9
1.2. Development approved
10
1.3 Deployment
1.4 Post-Implementation Review
1.4. Obtain user feedback
1
1.4. Evaluate lessons learned
2
1.4. Modify items as necessary
3
1.4. Establish ongoing infrastructure
4 planning team
1.4. Post-implementation review
5 complete
1.5 Microsoft Windows Server 2003
deployment complete

We consider that this template is very well developed. The file includes the
Gantt chart that facilitates the visualization of the time allotted for every
Level 1: corresponds to the entire project.
Level 2: the 5 process groups are clearly identifiable.
1. Initiating: this activities group was called Envisioning. We suggest
including project charter as a deliverable in this phase.

2. Planning: they refine the project objectives and then plan the steps
necessary to achieve those objectives within the project scope that
was given. We suggest changing the assemble teams to the
initiating phase.

## 3. Executing: this activities group was called Deployment. Since we are

not familiar with the process the technical part will not be assessed.
Regarding the structure, our opinion is that it is well developed,
includes a good description of deliverables in the level 3 and 4.

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## 4. Monitoring and Controlling: this activities group was called Post-

Implementation Review. The activities for monitoring and controlling
are included.

2.4 Closing: this activity was called Microsoft Windows Server 2003
deployment complete. The overall project was closed.

## Residential Construction Project Plan

The table below presents a summary of the main tasks. As for the template
considered above, the WSB numbering was not included but we developed to
facilitate the review.

## Main tasks Residential Construction Project Plan template

WB
S
Single Family House - Architect
1 Design (3,000 square feet with full
basement)

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INSE -6230 Total Quality Project Management

## 1.1 General Conditions

1.1. Finalize plans and develop estimate
1 with owner, architect
1.1.
Sign contract and notice to proceed
2
1.1.
Apply for Permits
3
1.2 Site Work
1.3 Foundation
1.4 Framing
1.5 Dry In
1.6 Exterior Finishes
Utility Rough-B97Ins and
1.7
Complete Concrete
1.8 Interior Finishes
1.9 Landscaping and Grounds Work
1.9. Pour concrete driveway and
1 sidewalks
1.9.
Install backyard fence
2
1.9. Sod and complete plantings - front
3 yard
1.9. Sod and complete plantings -
4 backyard
1.1
Final Acceptance
0
1.10 Complete final inspection for
.1 certificate of occupancy
1.10
Cleanup for occupancy
.2
1.10 Perform final walk-through
.3 inspection
1.10
Complete punch list items
.4

The file includes the Gantt chart that facilitates the visualization of the time
allotted for every task.
Level 1: corresponds to the entire project and it is well defined.

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INSE -6230 Total Quality Project Management

Level 2: Even though that the real scope of the project is unknown, in this
level is expected finding the 5 process groups, but in this template that
structure was not fully followed.
1. Initiating: Not well defined

## 2. Planning: Apparently the initiating planning phases were included

within general conditions but they are not properly defined.

## 3. Executing: The executing process was developed within the tasks

1.2 to 1.9. As we can see even that the deliverables are well
specified the main task are level 2, our suggestion is naming the
executing phase as level 2 and under that one as level 3 and 4 the
required items.

## 4. Monitoring and Controlling: this activities group was apparently

considered within final acceptance.

## 5. Closing: this group was not included.

Omitting or not defining properly the process groups can cause confusion or
even delays in the development of the project. Phases like initiating and
planning are vital for defining scope, work teams, objectives, schedule, etc.
Also defining clearly monitoring and closing guarantees quality control and
that the project was successfully finished.

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INSE -6230 Total Quality Project Management

## Software Development Plan

The table below presents a summary of the main tasks. As for the templates
considered above, the WSB numbering was not included but we developed to
facilitate the review.

## Main tasks Residential Construction Project Plan template

WB
S
1 Scope
1.1 Determine project scope
1.2 Secure project sponsorship
1.3 Define preliminary resources
1.4 Secure core resources
1.5 Scope complete
2 Analysis/Software Requirements
3 Design
4 Development
5 Testing
6 Training
7 Documentation
8 Pilot
9 Deployment
10 Post Implementation Review
10.
Document lessons learned
1
10.
Distribute to team members
2
10.
Create software maintenance team
3
10.
Post implementation review complete
4
Software development template
11
complete

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INSE -6230 Total Quality Project Management

This file, as the others, includes the Gantt chart that facilitates the
visualization of the time allotted for every task.
Level 1: That corresponds to the entire project it is not defined.
Level 2: The structure of this template does not follow the 5 process groups.
1. Initiating: Not well defined

## 2. Planning: We can assume that initiating and planning activities,

although are not defined; part of them is contained or considered
within scope and analysis phases.
3. Executing: we consider that this phase is comprised within 3 and 9.
But to improve organization and understanding is better using the
levels and grouping within executing phase.

## 4. Monitoring and Controlling: this activities group was called Post

Implementation Review

complete.

## As mentioned for the previous template review, omitting or not defining

properly the process groups can cause confusion, also the appropriate levels
of the tasks are a very important part to be considered, it helps to improve
organization and facilitates visual understanding.

Summary
The comments and suggestion were included within the review of each
template, but in general, our suggestions are:
1. Include the numbering: it will help to understand the hierarchy of the
WBS.
2. Use the levels appropriately: the entire project should be level one, the
5 process groups level two and the subtasks level 3, 4 etc.
3. Include and properly define the 5 process groups

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