Concordia University

Engineering & Computer Science

INSE-6230 Total Quality Project Management

Professor:
Dr. AMIN HAMMAD

ASSIGNMENT ONE

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

FALL 2014

INSE -6230 Total Quality Project Management

1

Questions Chapter 4

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
Benefits
Costs
Cash flow
NPV

YEAR 1
YEAR 2
$
$ 2,000
$ 5,000
$ 1,000
$ (5,000) $ 1,000
$ 2,316

YEAR 3
$ 3,000
$ 1,000
$ 2,000

YEAR 4
$ 4,000
$ 1,000
$ 3,000

YEAR 5
$
5,000
$
1,000
$
4,000

TOTAL
$ 14,000
$ 9,000
$ 5,000

PROJECT 2
Benefits
Costs
Cash flow
NPV

YEAR 1
$ 1,000
$ 2,000
$ (1,000)
$ 3,201

YEAR 3
$ 4,000
$ 2,000
$ 2,000

YEAR 4
$ 4,000
$ 2,000
$ 2,000

YEAR 5
$
4,000
$
2,000
$
2,000

TOTAL
$ 15,000
$ 10,000
$ 5,000

YEAR 2
$ 2,000
$ 2,000
$
-

Figure 4.5
Discount rate
8%
Assume the project is completed in Year 0
YEAR 0
YEAR 1
Cost
$ 140,000
$ 40,000
Discount Factor
1.00
0.93
Discounted costs
140,000
37,200

YEAR 2
$ 40,000
0.86
34,400

YEAR 3
$ 40,000
0.79
31,600

Benefits
Discount Factor
Discounted Benefits

$ 200,000
0.93
186,000

$ 200,000
0.86
172,000

$ 200,000
0.79
158,000

Discounted Benefits-Costs
Cumulative Benefits-Costs

(140,000)
(140,000)

148,800
8,800

137,600
146,400

126,400
272,800

ROI

1.00
-

112%

TOTAL

$ 243,200

$ 516,000
$ 272,800

PAYBACK IN YEAR 1
2

NPV

INSE -6230 Total Quality Project Management

Figure 4.6

PAYBACK
600000

500000

400000

Payback
$ 300000
200000

100000

0
0

YEAR
Cumulative cost

Cumulatif benefits

Figure 4.7

Criteria
Supports key buisness objectives
Has strong internal sponsor
Has strong costumer support
Uses realistic level of technology
Can be implemented in ne year or
less
Provides positive NPV
Has low risk in meeting scope, time
and goals
Weighted project scores

Weight
25%
15%
15%
10%

Project Project Project Project

1
2
3
4
90
90
50
20
70
90
50
20
50
90
50
20
25
90
50
70

5%
20%

20
50

20
70

50
50

90
50

10%
100%

20
56

50
78.5

50
50

90
41.5

INSE -6230 Total Quality Project Management

WEIGHTED SCORE BY PROJECT

Project 4

Project 3

Project 2

Project 1

1.2

20

40

60

80

100

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.

INSE -6230 Total Quality Project Management

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

Cost
Discount Factor
Discounted costs
Benefits
Discount Factor
Discounted Benefits
Discounted Benefits-Costs
Cumulative Benefits-Costs
ROI

YEAR 1
YEAR 2
$ 200,000
$ 30,000
1
0.84
200,000
25,250

YEAR 3
$ 30,000
0.77
23,166

YEAR 4
$ 30,000
0.71
21,253

$ 100,000
0.77
77,218

$ 100,000
0.71
70,843

54,053
(87,030)

49,590
(37,440)

1.00
-

(200,000)
(200,000)

$ 100,000
0.84
84,168
58,918
(141,082)

TOTAL

$ 269,669

$ 232,229
$ (37,440)

-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.

NPV

INSE -6230 Total Quality Project Management

First exam
Second exam
Third exam
Homework
Group project
Total

Weight Student 1 Student 2 Student 3

20%
100
70
90
15%
100
70
80
25%
100
70
75
15%
100
80
80
25%
100
95
70
100%
100
77.75
78.25

Final grades

Student 3

Students
Student 2

Student 1

20

40

60

80

100

Grades

INSE -6230 Total Quality Project Management

2
2.1

Questions Chapter 5
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.

INSE -6230 Total Quality Project Management

2.2

Question 5

Create a WBS for one of the following projects:

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.

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.

Answer

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.

INSE -6230 Total Quality Project Management

Main tasks Microsoft Windows Server 2003 Deployment template
WBS
1
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7

Task Name
Microsoft Windows Server 2003 Deployment
Envisioning
Evaluate corporate business objectives
Determine technology goals and objectives
Formulate preliminary cost/benefit analysis
Determine project scope
Determine major milestones
Secure executive sponsorship/funding
Develop executive elevator pitch for internal
marketing on solution value
1.1.8
Envisioning complete
1.2
Planning
1.2.1
Assemble Project Teams/Define Roles
1.2.2
Detail Current Computing Environment
1.2.3
Detail Preliminary Design Objectives
1.2.4
Identify Coexistence Strategies
1.2.5
Establish Test Lab Environment
1.2.6
Perform Risk Assessment
1.2.7
Define Communication Strategy
1.2.8
Define Education/Training Strategy
1.2.9
Review plan for development
1.2.10
Development approved
1.3
Deployment
1.4
Post-Implementation Review
1.4.1
Obtain user feedback
1.4.2
Evaluate lessons learned
1.4.3
Modify items as necessary
1.4.4
Establish ongoing infrastructure planning team
1.4.5
Post-implementation review 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 task.
Level 1: corresponds to the entire project.
Level 2: the 5 process groups are clearly identifiable.

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INSE -6230 Total Quality Project Management

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.
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.

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INSE -6230 Total Quality Project Management

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

WBS
1
1.1
1.1.1
1.1.2
1.1.3
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.9.1
1.9.2
1.9.3
1.9.4
1.10
1.10.1
1.10.2
1.10.3
1.10.4

Task Name
Single Family House - Architect Design (3,000
square feet with full basement)
General Conditions
Finalize plans and develop estimate with
owner, architect
Sign contract and notice to proceed
Apply for Permits
Site Work
Foundation
Framing
Dry In
Exterior Finishes
Utility Rough-B97Ins and Complete Concrete
Interior Finishes
Landscaping and Grounds Work
Pour concrete driveway and sidewalks
Install backyard fence
Sod and complete plantings - front yard
Sod and complete plantings - backyard
Final Acceptance
Complete final inspection for certificate of
occupancy
Cleanup for occupancy
Perform final walk-through inspection
Complete punch list items

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

WBS
1
1.1
1.2
1.3
1.4
1.5
2
3
4
5
6
7
8
9
10
10.1
10.2
10.3
10.4
11

Task Name
Scope
Determine project scope
Secure project sponsorship
Define preliminary resources
Secure core resources
Scope complete
Analysis/Software Requirements
Design
Development
Testing
Training
Documentation
Pilot
Deployment
Post Implementation Review
Document lessons learned
Distribute to team members
Create software maintenance team
Post implementation review complete
Software development template complete

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
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INSE -6230 Total Quality Project Management

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
5. Closing: this activity was called Software development template 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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