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The main Company strategy for EX. is providing high quality personal computers to consumers. The typically order from a consumer customer is $1,800. The very tight market. The EX. Company wants to increase its market share. The executive team has commission a panel, which consists of members from the sales and marketing teams, the purchasing team, and a few valued consumer consultants to help understand what the organization can do to increase sales and market share. This endeavor led o your project, which is to secure a new facility, which will provide Customer Support for PC and PC applications.
The support center must be based in Illinois. It is 2006 and the U. S. Economy is considered to be well on its way back to stability from the economic recession that emerged in 2001. As a result, the government has indicated that interest rates for Business mortgages will rise to the 5% to 10% range for 30-year mortgages, possibly even higher, on or near the second quarter of 2006. Your company would like to purchase a new facility to house there Customer Support Center. It is now January 2006, and for all intent and purposes, you should target March 1, 2007 as the completion date for the construction of the new Customer Support Center.
Completion meaner the site is fully furnished, wired, and ready for operation. NOTE: Each section should include the detail as described above, along with a proper discussion about the included data as well as the project manager’s analysis/ interpretation of the information. The clock is ticking, and your assignment has Just begun. Do: PROJECT PART 1 : Here is what you need to (1) First, develop an order of magnitude estimate for this project so the executive an secure the funding to support this project. Please use PERT for your estimates.
You must show your PERT table. (2) Prepare a Work Breakdown Schedule (WEBS) for all the activities that need to be undertaken between now and March 1, 2007. (3) Establish a Task Responsibility Matrix for all appropriate tasks in your WEBS. The WEBS. The Giant Chart should provided, as a minimum, milestones for the following activities: project definition, selection of an architect, completion of design work, permit process, acquisition of site, initiation and completion of construction, furnishing, and equipping site for operation.
EACH of these major milestones should also have two interim milestones that will be used to monitor progress for that individual task. In other words, each of these major milestones, and you may have others, should have smaller task which help you make sure you will meet or succeed the schedule for the major milestone – hint, you may want to use a quality auditing system here. (5) Define a hypothetical location for your location (I. E. Select a real location that you fell will best serve the company, which is bases in Naperville or any other area within the general Chicago land market). Then, research and find at least three different facilities that are currently for sale in that area. Determine, as a minimum, the square footage for the facility, any of the amenities/features of the facilities, and the cost. You will use this information to derive an average unit cost ($) per square foot for facility in that area. (6) Define the amenities/features you would like to have in your facility, and the square footage.
Use the average unit cost per square foot derived in part (5) to estimate the cost for your facility (you will need to make slight adjustments to that average unit cost based on the amenities/features you have identified for your facility compared with those of the “sample facilities that you researched information for). (7) Prepare a more detailed cost estimate for your project. Here are some tips to help you: Research the average cost for a facility similar to the one that you have in mind. It. Assume architectural cost will be between $20. 00 to $50. 00 per square foot of space defined for your facility. Iii.
Assume permitting costs are 3% of the total facility construction cost (derived from parts 5 and 6 above) lb. Assume the MARRY for the funds will be 12%. . The Center will be staffed 24 X 7 with 10 Tier 2 and 5 Tier 1 on morning and evening Shifts. During the night shift, there will be 5 Tier 2 and 2 Tier 1. You determine salary for all resources. The goal is to sell maintenance contracts for out of warranty products. You v’. Come up with the pricing strategy. Shift. Use the above information to determine the AIR, payback period, and derive the B / C for this project. (8) What amount of contingency would you add to your budget?
Justify your decision, and consider the areas of uncertainty that influence the contingency amount you have defined. Submission Requirements CPA-I must be submitted as a single document in MS Word. Information or details created with other tools like Excel or MS Project such as tables, charts, or graphs must be incorporated into the MS Word submittal as an inserted object, such as a JEEP. (For help with MS Project, see the Video Tutorial link in the Overview section above. ) Failure to follow this requirement will result in the return of the proposal for re-formatting to the requested MS Word format.
You may insert objects into the body of your paper to support your discussion if they are half a page or less. Larger items should be included in an appendix with appropriate references to this information. CPA-I must include a cover page. As a guide, the body of CPA-I should be between five and ten pages in length (I. E. , not including cover page, appendix, etc. ). Submit the Word document to the Week 4: Course Project, Part 1 Dropped. Submit your assignment to the Dropped located on the silver tab at the top of this page.
For instructions on how to use the Dropped, read these Step-by-Step Instructions or watch this Dropped Tutorial. Course Project, Part 2 – Due Week 7 Back to Top PROJECT PART 2: Here is the performance for the first three months of your project (total project below comprises every task defined for your project through the point in time that you take acceptance of your facility from the builder, on or before March 1, 2007): Month 1: half-complete with the tasks you scheduled for Month 1 . Actual Cost of Work Performed (AC): is approximately 90% of the Budgeted Cost of Work Scheduled (PA) for the tasks undertaken in Month 1 .
Month 2: Project Progress: You are 5% complete of the total project. Actual Cost of Work Performed (AC): is approximately 75% of the Budgeted Cost of Work Scheduled (PA) for the tasks undertaken in Month 2. Month 3: Project Progress: You are 10% complete of the total project Actual Cost of Work Performed (AC): is approximately 77% of the Budgeted Cost of Work Scheduled (PA) for the tasks undertaken in Month 3. Conduct an earned value analysis for this project and calculate the cost and schedule variances, as well as the cost and schedule performance indexes for the first 3 months of the project. 2) What are your interpretations of the results from the earned value analyses? What actions would you take to ensure that March 1, 2007 deadline is met? 3) What is the estimate to complete and estimate at completion for this project given the corrective measures you have identified above? (4) Provide you overall synopsis of and conclusions on this project This Course Project will provide students with practical experience in making assumptions and applying the skills, tools, and methodologies contained in the course work for PM 592.
Professionalism is expected from students enrolled in this course towards each other at all times. Students who fail to interact in the team environment may be awarded a grade of “F” for any team project components. Course Project Submittal Requirements: The two parts of the project must be submitted as single documents in MS Word (attachments in other software can be submitted) and have no less than an 11-point font size. There are no page limitations. However, as a guide, each subsection of the project should be between one and three pages in length. In addition, the project must have a cover page attached.
It is due on week 4 and 7, no exceptions, no up to three days, at which time all credit would have been forfeited. Exceptions due to illness or family emergency will be dealt with by the instructor at his/her secretion. Submit the Word document to the Week 7: Course Project, Part 2 Dropped. Submit your assignment to the Dropped located on the silver tab at the top of this page. For instructions on how to use the Dropped, read these Step-by-Step Instructions or watch this Dropped Tutorial. See Syllabus “Due Dates for Assignments & Exams” for due date information.
See Syllabus “Due Dates for Assignments & Exams” for due date information. Grading Rubrics Back to Top CPA-I Grading Rubric General business presentation and format A professional, well-worded paper with cover page which meets requirements and maintains continuity from start to finish. Uses proper references to important information, including items contained in the appendix. Uses appropriate citing and notation. 10 points Project Description The description is brief (one-page maximum) and includes an overview of the project, including deliverables and benefits to be derived.
WEBS Proper grouping, indenting, and coding for approximately 250 to 350 tasks. The WEBS focuses on cost- and revenue-generating elements of the project, and will form the basis of the cost estimate and schedule. 20 points Cost Estimate venue elements, and includes facilities, equipment and materials for start-up, labor costs (rates and hours) for start-up and operations, materials for operations, and detailed estimated revenue streams. For minor tasks, it is not necessary to provide complete details of the way the estimate was generated.
Reasonable “guesstimates” should be made where accurate data are not available. 10 points Advanced Cost Estimating Technique Describe and demonstrate the use of an advanced technique such as three-point or contingency estimate. (It is NOT required to show the estimating technique for EACH ask/item. ) Cost Assumption Section Provides information on the basic assumptions made during the estimating process. 15 points Financial Analysis Provides financial analysis details including NP Analysis and calculations.