Why the CEO of DelServ Should Accept the Contract with the Australia Company

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Kerzner and Kerzner  (2017) hypothesize that project management is fundamental for the accomplishment of any project. People, as well as business organizations, have different projects that they would wish to achieve over a span of time. However, for the projects to be completed, the project managers should come up with an elaborate schedule for the accomplishment of every task geared towards the accomplishment of the project. Therefore, this coursework provides an analysis of the DelServ Project. The project is aimed at introducing a new delivery system that will modify the way that the company uses to track parcel delivery. The coursework has provided an elaborate schedule of all the activities that will be achieved for the success of the project as well as the cost to be incurred on each activity. Also, the coursework analyses the general risks associated with projects as well as the effects for the introduction of the Cloud 1st approach in the project.

Part One: Scheduling

Network diagram for the project

           

The eligible diagram for the project is as shown above. The diagram contains all the elements of the activities within the project labeled in a sequence order from one to 11 as generated from the project’s outline schedule table. From the chart, the project starts form the project approval then proceeds to the analysis of the requirements of the project.  After the analysis is the next step is designing. It is from this point that the project gets to move to the fourth stage which is the selection of the scanning devices, the fifth step whereby the project manager orders for the purchasing and the installation of the Server Hardware as well as determination of the Back End Software Build. Stage three (Designing) also dictates the tenth step (piloting).  All the activities are interconnected from the project approval up to the last step of roll out and each activity is dependent on each other and must be done systematically. From the calculation, the general project will take approximately sixty to weeks.

A legible Grantt chart for the project

Chart2. Grantt chart Demo for the DelServ project

The non-critical tasks on the project and the calculation of their respective float

The non-critical tasks for the project are determined by the duration allocated for each task. In this case the most non-critical task is the project approval which its duration is indicated zero in the project schedule. This means that it can be accomplished even within a period of 24 hours variable factors considered. Another non-critical task is the selection of the scanning device which is given a duration of one week. To calculate the time slack for the two non-critical activities, I have to consider the earliest time at which the task can start and end as well as the latest dates that the task can start and end. Therefore, I will apply this concept in all the two task. The earliest starting dates for the project approval is 3rd August 2018 and the earliest finishing date is 5th August 2018.  The latest starting date is 5th

August 2018 and the latest finishing date is 11th August. Therefore, the slack time for the project is obtained by subtracting the early start from late start and early finish from late finish. In this case the smallest figure is taken as the slack time. Project analysis slack time= 3 days (latest starting date-earliest starting date = 5th – 3rd).  For the case of scanning device selection, its earliest starting date is 15th

August while the earliest finishing date 18th August. However the task’s latest starting date is 17th August while its latest finishing date is 24. Therefore, its slack time is 3 days (18th -15th).

The 3 areas of the project that might have benefitted from an Agile approach

The three areas of the project that could have befitted from the project are the selection of scanning device, the purchase and installation of Saver Hardware, as Back End Software Build. These three are based on handling software, a task that can be best achieved through the “Agile Methodology.” Agile method is a renounced approach in project management and is extensively used in the software development. If the project could have adopted this methodology, the method could have been much essential in assisting the team in reacting to the unpredictability associated with software construction.

A reasoned arguments on why the whether the Chief Executive Officer (CEO) of DelServ should accept the contract with the Australia company

Arguing on the case of the Australian company, as a consultant, I would not recommend the Chief Executive Officer (CEO) of DelServ to accept the contract with Australian company. First, the price at which the software is to be bought does not match with its value bearing in mind all the costs and energy that have been spent towards the development of the software. Based on the fact the software at hand is a very effective and powerful, its value should not be below $70,000. Also, being that DelServ objectively developed the system to enhance security in their supplies, selling it at the end of task eight will mean that DelServ as a company itself has lost focus on its goals and objectives. Developing a software is a crucial process and is more time consuming. Furthermore, there is no need for the DelServ Company to sell the software without going through the stages the software was intend to go. In fact, the software is ready for use within the company since approximately 85% of the tasks required towards its development are already attained and the process are almost done. Therefore in my opinion, the Executive Officer (CEO) of DelServ should ensure that the software goes through all the stages of its development and that is used for the purpose for which it was intended to serve.

Part 2: Budget calculations

Calculation for the cost of the project

Total budget for the project = total day rate cost for internal workers + total day rate cost for external worker + total fixed cost

Number of weeks required for the accomplishment of the task = 62

The cost payable for the project manager = £ 500 ×62×5 days = £ 155,000

Cost payable for business analyst = £ 450 × 41×5 days= £ 92,250

Back End developer cost = £ 600 ×26×5 days =£ 78,000

Front End developer = 2(£600× 26×5 days) = £ 156,000

Designer cost = 350 × 11 × 5 days =£ 19,250

The cost of two infrastructure engineers = 2(£200×2×5days) =£ 4,000

Cost of tester = £ 180 × 6×5 days = £ 5,400

Server hardware purchasing cost + maintenance cost = 4× £8000 + £800 ×4= £ 35,200

Total cost of handheld scanning device = 750 × £ 400 + 750 × 40 = £ 330, 000

Total cost for depot devices = 8 × £ 4000 + 8 × £400 = £ 35,200

Training cost = £ 15,000

Therefore, the total cost for the completion of the entire project = £ 925,300.

However, there are other miscellaneous that may emerge in the process of the project management that the project team must take into considerations.

Part 3: Change Management

The new project table

Table1. The new project schedule

Task

Description

    Duration

Predecessors

1

Project approval

0w

1

2

Requirements Analysis

4w

2

3

Design

5w

3

4

Select scanning device

1w

2

5 (a)

CSP Contract

1w

1,2

5 (b)

Cloud Server Environment

3w

1

6

Back End Software Build

13w

3,5

7

Handheld Application Build

16w

4

8

Testing

6w

6,7

9

Training

2w

8

10

Pilot

2w

9

11

Roll Out

8w

10

To calculate the new date for the completion of task 6 (Back End Software Build), we must take first consider the starting date for the project. In this case, the project is entitled to kick-off from 1st April 2018. The exact date for the completion of task 6 is determined by adding all the consumed in the tasks accomplished before task 6 and the weeks consumed to first of April. The total number of weeks required until the end of task six is 27 weeks which is approximately 7 months. 7 months when added to April, 1st 2018 takes the accomplishment of task 6 to Novemebr. Therefore, task 6 will be completed on 1st November, 2018.  However, the completion of the entire project will need a minimum period of 55 weeks (1year, 2 months). When the period is added to the starting date of the project, the completion date becomes June 1st 2019.

The new budget for the project

New project cost =  initial total cost for the completion of the entire project – the initial cost incurred in task 5 + the new cost for task 5).

                                     The initial project cost was £ 925,300

                                     The initials cost for task five was £ 4000.

                                      The new cost for task five is £ 15,000 (1000×3×5).

                                      Therefore, the new project cost = £ (925,300-4000+15000)

= £936,300

The biggest risks that arise from the Cloud 1st Approach

Although the Cloud 1st Approach may be a viable approach for the completion of the project, as it has been used extensively used by most business, there are a variety of security issues that come along with the project.  The security issues are associated with data transfer security, software interface security, the security of the stored data, user access control and data separation. Therefore, it is advisable for the project manager to consider evaluating the Cloud 1st Approach providers to ensure to ensure that the king of cloud-based services they provide have no security issues. Regarding the data transfer security, the project manager must ensure that all the traffic traveling between the project’s network and the services being accessed in the cloud transverse the internet. The description implies that the project manager should ensure that the organization’s data are always secure.

Discussion on whether the PM is happy or unhappy with the new policy

In a close analysis, it is very evident that the contributions of Cloud 1st approach are more eminent as compared to its risks. Therefore, the DelServe project manager would be happy with the employment of the new policy. The argument is based on his perception that cloud computing is appropriate to suspend the unnecessary IT burden. “Cloud-first “ approach is more effective in project completion since it can send IT projects and can also upgrade the wrong paths of project implementation, thus limiting the errors committed during the project implementation. The DelServ project also views cloud-first approach as counter-productive technology in IT project. Therefore, based on the two outlined perceptions, it is reasonable to conclude that the project manager will be happy with the new technology.

Table 2. Simple ‘traffic light’ system according to the status of each task

Task

Description

Traffic light

Description of the color

1

Project approval

The task may fall behind the plan by 2 days.

2

Requirements Analysis

The task may be accomplished one day after the speculated time line.

3

Design

The task is completed two days before the end of the time allocated

4

Select scanning device

The task is completed at the speculated time

5 (a)

CSP Contract

The task is completed two days after the end of the time allocated

5 (b)

Cloud Server Environment

Task completed before the time elapse

6

Back End Software Build

The task in progress is behind the time plan by 7%

7

Handheld Application Build

The task behind the schedule is approximately 3%

8

Testing

Task completed in time

9

Training

8% of the task is in progress

10

Pilot

Task accomplished in time

11

Roll Out

1% of the task is in progress

Risk analysis for the DelServ project using a Risk Identification & Mitigation

There are a variety of risks that DelServ project is likely to face. However, the risks cab divided into four major categories which are scope risks, scheduling risks, resource risk, and technology risks. The scope are characterized by change in scope, and they are characterized by factors such as scope creep, integration issues, hardware, and software deficit, or change in dependencies. Some of these factors come along with the cloud-first approach; therefore, they are likely to be experienced in DelServ project completion. Scheduling risk is another significant risk that would face the DelServ project. Scheduling risks that may occur are unexpected delays, natural factors, estimation errors, or delays in the procurement of important parts of the project.

 Moreover, the DelServ project may also face some significant resource risks which may typically be characterized by personnel related problems or outsourcing. Being that the DelServ project is a very big project, it entails dozens of employees who may at one point have some significant attrition issues that may influence the progress of the project. Also, DelServ project may face some technological risk which might arise from the delays in delivery of hardware and software or their failure to function effectively. For instance, in the course of the project, the DelServ project manager may realize that the cloud service provider working on the project is not satisfying the project’s benchmark. The situation causes a threat to the completion of the project. However, DelServ project manager can minimize the risks outlined by adopting the robust project management tool.

Bibliography

Eskerod, P. and Jepsen, A.L., 2016. Project stakeholder management. Routledge.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley & Sons.

Meredith, J.R., Mantel, S.J., Shafer, S.M. and Sutton, M.M., 2014. Project management in practice. Wiley.

October 30, 2023
Category:

Business

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Company

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