A&D High Tech

About A&D High Tech

 Project Objective –
To develop and launch company’s online store before holiday season to compete
with competitors and reduce cost without loosing on customer experience.

 Goal –
Tap into new market segment
Increase revenue by reaching more audience
Reduce cost by saving on SG&A expenses.
Assumptions

 Project starts from 26th May 2003

 Working days – 5 days a week
 8 hours working per day
 Not accounting for personal leaves taken by resources and holidays.
 Resources are 100% available for the task
 Plan does not include time spent on project meeting.
Project Schedule and Plan

 On 26th May, Johnson received WBS and created project plan based on effort
estimates and available resources.

 Project Timelines

Without Leveling With Leveling

Start date 26 May 2003 Start date 26 May 2003
End date 19 Nov 2003 End date 25 Nov 2003
Project Cost

 Capital Cost
 12 * Windows 2000 Work station = $ 36,000
 5 * Windows 2000 Server = $ 62,500

Total Capital Cost = $ 98,500

 Labor Cost = $ 843,360

 Total Cost = $ 941,860

Critical Path
1.1 Project Management
1.2.1 Gather Business Requirements
1.2.2 Design Business Process Flow
1.2.4 Create Operational Requirements
1.3.1.2 View and Search Product Catalog
1.3.1.3 Updating and Calculating Shopping Cart
1.3.1.5 Submit Order
1.3.1.6 Check Order History and Order Status
1.3.3 Create ERP Interface Requirements
1.4.2 Design View and Search Product Catalog Pages and Components
1.4.3 Design Updating and Calculating Shopping Cart
1.4.8 Design ERP Interface
1.7.2 Build View & Search Product Catalog Pages & Components
1.7.3 Build Updating & Calculating Shopping Cart
1.7.5 Build Submit Order Pages & Components
1.7.8 Build ERP Interface
1.8 Testing
1.9 Deployment
Risk Assessment

 Most of the activities are critical to the project. Delay in any of the activity
would change the project timelines
 Risk is very high
 Measures to be taken to mitigate risk
Project Status as of 26th August 2003

Cost Distribution
 Project Timelines Status:
Complete,
 Start date – 26/05/03 $174,220.00

 End date – 02/01/04

 Costs (Labor)
 Actual Cost = $ 290,439 Status: On
Schedule,
Status: Future $121,800.00
 Remaining Cost = $ 606,360 Task,
$534,720.00
 Updated Cost = $ 896,800
Status: Late,
 Variance = $ 53,440 $66,060.00

 Duration = 49% Work = 36%

Status: Complete Status: On Schedule Status: Late Status: Future Task

* Above cost does not include capital cost required for infrastructure setup
Earned Value Analysis (As on 26th August)

 Schedule Variance = $ -96,333

 Cost Variance = $ -15,813
 Cost Performance Index (CPI) = 0.93
 Schedule Performance Index (SPI) = 0.69

 SPI - Project is running behind schedule and corrective measures to be taken

 CPI – Project is costing more than planned
Additional Assumptions

 Decision are made based on updated plan and resources are made available
from 1st September 2003
 For scope change like addition of promotional bundle, the change needs to be
approved by Change control board and within the control specification. Here
considering that they want to maintain similar customer experience to online
as well as store customers, we assume that they would configure promotional
bundles into their system
 Marc Sanders (Development Lead) trains all new developer added to the team
 Consultant is informed well in time
Decision to be made

 Reduce scope of submit order activity

 Add more developers
 Configure promotional bundles in MS Site Server
 With help of MS Consultant
 With help of existing developers
Reduce Scope of Submit Order activity

 Project timelines
 Start date – 26 May 2003
 End date – 02 Jan 2004

 Cost = $ 880,000

 There is no impact on project timelines due to reduction but there is

reduction in cost.
 Only 1.7.5 gets impacted (Work reduced to 12) and efforts spend on other
activity 1.3.1.5 and 1.4.5 is wasted (as the task has already been completed)
* Above cost does not include capital cost required for infrastructure setup
Add more developers

 Rate - $175 /hr & OT – 262.5 /hr

 Training - 1 week (5 days)
 Resource involved – Marc Sanders and the new developer

Resource End Date Cost Increase in Cost from

Baseline
1 Developer 24 Dec 2003 $ 884,705 $ 41,345
2 Developer 17 Dec 2003 $ 907,112 $ 63,752
3 Developer 11 Dec 2003 $ 928,052 $ 84,692
4 Developer 05 Dec 2003 $ 939,546 $ 96,186

* Above cost does not include capital cost required for infrastructure setup
Configure promotional bundles in MS
Site Server
 With help of MS Consultant
 Rate – 500$ /hr Duration – 3 days
 Resources involved – MS Consultant, Marc Sanders & 1 Developer
 Project Timelines –
 Start date – 26 May 2003
 End date – 09 Jan 2003
 Updated Cost - $ 936,004

* Above cost does not include capital cost required for infrastructure setup
 Configure promotional bundles in MS
Site Server
 With help of developers
 Training – 3 days Configuration Time – 12 person-days
 Testing time – 25 person-days
 Resources involved –Marc Sanders, Developers, Testers
 Project Timelines –
 Start date – 26 May 2003
 End date – 14 Jan 2003
 Updated Cost - $ 946,564

* Above cost does not include capital cost required for infrastructure setup
 MS Consultant(Promotional Bundle)
+ Reduce scope of ‘Submit Order’
 Project Timelines –
 Start date – 26 May 2003
 End date – 09 Jan 2004

 Cost - $ 919,204

 There is no change in project duration because of these changes.

* Above cost does not include capital cost required for infrastructure setup
 MS Consultant(Promotional Bundle) + Reduce
scope of ‘Submit Order’ + Developers
 Project Timelines & Cost

Resource End Date Cost Increase in Cost from

Baseline
1 Developer 31 Jan 2003 $ 944,976 $ 101,616.00
2 Developer 23 Dec 2003 $ 973,352 $ 129,992.00
3 Developer 17 Dec 2003 $ 977,867 $ 134,507.00
4 Developer 15 Dec 2003 $ 1,019,824 $ 176,464.00
5 Developer 09 Dec 2003 $ 1,039,626 $ 196,266.00
6 Developer 10 Dec 2003 $ 1,058,560 $ 215,200.00
7 Developer 09 Dec 2003 $ 1,075,683 $ 232,323.00
8 Developer 08 Dec 2003 $ 1,091,215 $ 247,855.00
* Above cost does not include capital cost required for infrastructure setup
MS Consultant(Promotional Bundle) + Reduce
scope of ‘Submit Order’ + Developers
Increase in Cost
(Promotional bundle + Reduce scope + Additional Dev
1,200,000

1,000,000

800,000
Cost ($)

600,000

400,000

200,000

0
1 2 3 4 5 6 7 8
No of additional developers

Cost Increase in Cost

Recommendation

 As this project is to boost presence of A&D on online platform without

impacting customer experience
 It is recommended to configure promotional bundles on online site as well
 We should take help of MS Consultant in configuring promotional bundles
 To bring project back on track, we need to add more developers.
 If we skip the project wrap-up phase, we can launch the website on 1st Dec
2003 with help of 8 additional developers
 We recommend to add 5 developers, which brings down the launch date to 11
Dec 2003 but with an incremental cost of $ 160,065
THANK YOU!