Question 2 Assignment 2 Deadline: April 11, 2017 23:59

Pg 02question Twoassignment 2deadline Day 4112017 2359

Read the scenario carefully and answer the following questions:

1. Use a project manager to develop a work breakdown structure (WBS) and draw a Gantt chart for the video store project organized by the five project management process groups. The project should start on 1/11/2017 and end on 31/1/2018. Include tasks under executing such as System design, Database design, and Inventory.

2. Identify at least four risks associated with implementing this project.

3. Perform a net present value (NPV) financial analysis for the project using the manual method, given the projected costs and benefits over three years: Costs are $85,000 in Year 0 and $30,000 in Years 1 and 2; benefits are $0 in Year 0 and $90,000 in Years 1 and 2. Use a 10% discount rate and show all calculations in a table.

4. List four different methods that could be used to collect requirements for this project.

Paper For Above instruction

The development of a comprehensive project plan, including work breakdown structure (WBS) and Gantt chart, is fundamental in organizing and executing a project efficiently. For the Video Store Project, which involves various stakeholders including the store clerk, customer, and manager, applying the five project management process groups provides a structured approach to project execution.

Development of WBS and Gantt Chart Using the Five Project Management Process Groups

The five process groups—Initiating, Planning, Executing, Monitoring & Controlling, and Closing—serve as the backbone for effective project management. During the Planning phase, the WBS is created to break down the project into manageable components. For the Video Store Project, key deliverables include system design, database design, and inventory management, scheduled from November 1, 2017, to January 31, 2018. Each task's duration and dependencies are mapped in the Gantt chart, illustrating the project timeline and resource allocation.

Initiating involves defining the project scope and securing stakeholder approval. Planning covers detailed design and scheduling. The Executing phase includes implementing system development and database setup, while Monitoring & Controlling involves tracking progress, managing risks, and ensuring quality. Lastly, the Closing phase wraps up activities and documents lessons learned.

Risks Associated With the Project

Implementing the Video Store Management System entails several risks, including:

  1. Technical Risks: Challenges in integrating new hardware and software components, leading to delays or system failures.
  2. Operational Risks: Disruptions in daily store operations during system implementation, potentially impacting sales and customer satisfaction.
  3. Financial Risks: Budget overruns or underestimated costs may threaten project viability, especially if benefits do not materialize as expected.
  4. User Adoption Risks: Resistance from staff or customers to adopt new systems, which could hinder the realization of intended efficiencies.

Financial Analysis Using NPV Method

Performing an NPV analysis involves discounting future benefits and costs to their present values and subtracting the total costs from total benefits. Given the data:

  • Initial Cost (Year 0): $85,000
  • Annual Costs (Years 1 & 2): $30,000
  • Benefits (Years 1 & 2): $90,000 annually
  • Discount Rate: 10%

Discount factors for each year are calculated as 1 / (1 + r)^n, where r is 0.10. The calculations:

Year Cost Benefit Discount Factor Present Value of Costs Present Value of Benefits
0 $85,000 $0 1.00 $85,000 $0
1 $30,000 $90,000 0.91 $27,300 $81,900
2 $30,000 $90,000 0.83 $24,900 $74,700
Total $137,200 $156,600

The NPV is calculated as total benefits minus total costs: $156,600 - $137,200 = $19,400. A positive NPV indicates that the project is financially viable under these assumptions.

Methods for Requirements Collection

Gathering accurate and comprehensive requirements is critical for project success. Four effective methods include:

  1. Interviews: Conducting structured or semi-structured interviews with stakeholders to capture their needs and expectations.
  2. Questionnaires/Surveys: Distributing questionnaires to a broader group of users to collect quantifiable data on their requirements.
  3. Observation: Watching users perform current processes to identify pain points and undocumented needs.
  4. Workshops and Focus Groups: Facilitating collaborative sessions where stakeholders discuss and prioritize features and functionalities.

Each method provides unique insights and, when combined, ensures comprehensive requirements gathering tailored to the project's scope and stakeholder interests.

Conclusion

Applying structured project management principles, including WBS, Gantt charts, risk assessment, financial analysis, and requirements gathering, is essential for the successful implementation of the Video Store Management System. These tools and methods enable systematic planning, execution, and control, ultimately leading to a project that meets stakeholder needs while managing risks and ensuring financial viability.

References

  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
  • PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Project Management Institute.
  • Schwalbe, K. (2018). Information Technology Project Management. Cengage Learning.
  • Meredith, J. R., & Mantel, S. J. (2014). Project Management: A Managerial Approach. Wiley.
  • Harrison, F., & Lock, D. (2017). Advanced Project Management: A Structured Approach. Gower Publishing.
  • Gray, C. F., & Larson, E. W. (2017). Project Management. McGraw-Hill.
  • Heldman, K. (2018). Project Management JumpStart. Microsoft Press.
  • Heagney, J. (2016). Project Management Essentials. AMACOM.
  • Leach, L. P. (2014). Critical Chain Project Management. Artech House.
  • Wysocki, R. K. (2014). Effective Project Management. Wiley.

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