ASSIGNMENT 3

IT Project Management (MGMT8770)

DHRUMIL PATEL
Student_ID: 8879301
Student ID: 8879301
Name: Dhrumil Patel IT Project Management

1) Give examples of when you would prepare rough order of magnitude (ROM), budgetary,
and definitive cost estimates for an information technology project (please make an
assumption or use one example provided in Week7/Chapter7). Give an example of using
each of the following techniques for creating a cost estimate: analogous, parametric, and
bottom-up.

 Rough Order of Magnitude:

At the outset of a project, or even before it is officially ini�ated, a rough order of magnitude
es�mate is typically created. This type of es�mate provides a rough approxima�on of what the
project will cost, as its name suggests. The �me horizon for a rough order of magnitude es�mate
is usually several years, o�en three or more, before the project is expected to be completed. For
instance, a rough order of magnitude es�mates for providing 100 new iPads to students could be
$100,000.

 Budgetary:
A budgetary es�mate is a type of cost es�mate used to allocate funds for a project or ini�a�ve
within an organiza�on's budget. It is typically used to plan for future expenses, and organiza�ons
may develop budgets that extend two or more years into the future. A budgetary es�mate
breaks down the projected costs of a project into detailed categories such as hardware and
so�ware, and includes assump�ons to support these es�mates. Overall, a budgetary es�mate
helps organiza�ons plan for their future financial needs and ensure that they have the necessary
resources to support their goals.

 Defini�ve Cost Es�ma�on:

A defini�ve es�mate is a type of cost es�mate that provides a highly accurate projec�on of the
total cost of a project. It is typically more detailed and precise than a rough es�mate or a budget
es�mate and may include vendor quotes. With a defini�ve es�mate, the actual cost of a project
could fall within a narrower range, such as between $95,000 to $110,000, which indicates a
higher level of accuracy compared to other types of es�mates.

 Techniques for crea�ng a cost es�mate:

To es�mate the cost of a project, there are three techniques that can be used: analogous
es�mates, parametric es�ma�ng, and botom-up es�mates. Analogous es�mates involve using
the cost of a similar project as a reference point for es�ma�ng the current project's cost. For
instance, if we were tasked with providing iPads for students, we could research the cost of a
similar project or reach out to schools that recently adopted iPads. Parametric es�ma�ng uses
key factors, such as the brand of iPad and other requirements, to create a mathema�cal model
for es�ma�ng the cost. Lastly, botom-up es�mates involve breaking down the project into
individual work items or ac�vi�es and es�ma�ng the cost of each one. By summing up all the
individual costs, we can get the final project total.
Student ID: 8879301
Name: Dhrumil Patel IT Project Management

2) What are the three main outcomes of quality control? Briefly describe each.

 The quality control process helps organizations ensure that their products or services meet
the specified quality standards and requirements. The three primary outcomes of quality
control are acceptance, rework, and reject.

a) Acceptance:

Acceptance refers to the outcome where the product or service meets the
predetermined quality standards and requirements. When the quality control
process results in acceptance, it means that the product or service has met the
criteria and is deemed satisfactory for its intended use.

b) Rework:

Rework entails correcting any errors or defects identified during the quality control
process. If the product or service fails to meet the specified quality standards, it
will require rework to address the issues and bring it up to the required level of
quality.

c) Reject:

Reject is the outcome where the product or service fails to meet the required quality
standards and cannot be salvaged through rework. In such cases, the product or
service will need to be scrapped or redesigned entirely. Reject is the most
undesirable outcome of quality control, as it represents a significant loss of
resources and effort.

 In conclusion, quality control is an essential process for organizations to ensure that their
products or services meet the required quality standards and requirements. The three
main outcomes of quality control are acceptance, rework, and reject. Acceptance is the
desired outcome, while rework can help fix issues, but reject represents a considerable
loss of resources and effort.
Student ID: 8879301
Name: Dhrumil Patel IT Project Management

3) Describe the relationship between Six Sigma and statistics.

 Six Sigma is a rigorous and data-driven approach to process improvement that seeks to
achieve near-perfect quality by reducing the number of defects or errors in a process. It
was originally developed by Motorola in the 1980s and has since been adopted by
numerous organizations across a wide range of industries.

 At its core, Six Sigma is about minimizing variation in a process. Variability can lead to
defects, errors, and waste, which can negatively impact quality and productivity. To
achieve this goal, Six Sigma relies on statistical methods and tools to measure and
analyze process performance, identify the sources of variation, and develop data-driven
solutions for improvement.

 The use of statistics in Six Sigma is critical because it enables practitioners to make
informed decisions based on data, rather than intuition or guesswork. Statistical analysis
helps to separate real variation from random variation, and to identify the root cause of
defects or errors. By using statistical methods such as regression analysis or design of
experiments, Six Sigma practitioners can model the relationship between input variables
and output variables, and determine which factors are most critical to the process.

 In addition to statistical tools and techniques, Six Sigma also emphasizes the importance
of process management and leadership. A key aspect of the Six Sigma approach is the
DMAIC (Define, Measure, Analyze, Improve, Control) process, which provides a
framework for continuous improvement. This process involves defining the problem or
opportunity, measuring process performance, analyzing the data, implementing
improvements, and controlling the process to ensure sustained results.

 Overall, the relationship between Six Sigma and statistics is critical to the success of the
methodology. By using statistical methods and tools, Six Sigma practitioners can identify
and eliminate variation in a process, leading to improved quality, efficiency, and customer
satisfaction.
Student ID: 8879301
Name: Dhrumil Patel IT Project Management

4) Create a Pareto chart based on the information in the following table. First, create a
spreadsheet in Excel using the data in the table. List the most frequent customer problems
first. Use the Excel template called pareto_chart.xls on the text’s Companion website and
check your entries so your resulting chart looks similar to the one shown in the class. If
you need assistance creating the chart, search for videos describing how to create Pareto
charts using Excel.