Project Scope Statement
Bendigo Tours and Travels is a tourism company that wants to develop an information system. The proposed information system will have several features that will facilitate the operations of the organization as well as help the growth of the company. The company wants to expand from Australia to worldwide and hence, development of the information system is necessary. In addition to the expansion initiative, the company also wants to increase the overall efficiency of business operations and a variety of features that are to be introduced after the expansion is complete.
In this report, a project plan has been developed for the design and implementation of the proposed information system.
2.0 Project Scope Statement
The primary scope of the project is the development of the information system for Bendigo that will help the company to start operations globally. Further in-scope items of the project include:
- Implementation of a completely automated system
- Implementation of online hotel and airline reservation system
- Implementation of automated payroll system
- Implementation of Computerized Reservation Order Entry (CROE) and Decision Support System (DSS)
- 3.0 Stakeholder Register and Stakeholder Management Strategy
The stakeholder register is developed as follows.
|
Stakeholder Name |
Position |
Contact Details |
Role |
|
Mr. A |
Project Manager |
Management, control and monitoring of the project |
|
|
Mr. B |
Chief Developer |
Development of the information system |
|
|
Mr. C |
Chief Finance Manager |
Control and management of funds available for the project, finance reporting |
|
|
Mr. D |
Procurement Officer |
Procurement of all resources necessary for the project |
|
|
Mr. E |
IT Supervisor |
Supervision of project and regular reporting regarding progress of the project |
In addition to the stakeholder register, it is also important to develop suitable stakeholder management strategy for the key stakeholders in order to ensure they perform their duties successfully and as per the pre set guidelines (Harrison and Lock 2017). In this project, the two key stakeholders involved are the project manager and the chief developer. The management strategies for these two stakeholders are as follows.
|
Name |
Level of Interest |
Level of Influence |
Potential Management Strategy |
|
Mr. A (Project Manager) |
High |
High |
The project manager is the head of the project and has a number of important duties like planning, managing, monitoring and controlling of the project (Laudon and Laudon 2016). Hence, it is required to ensure the project manager is fulfilling all his duties throughout the course of the project. At the end of each week, the project manager needs to send a progress report to the higher authority regarding the progress in the project. |
|
Mr. B (Chief Developer) |
High |
Low |
The chief developer will be in charge of the development process of the information system (Fleming and Koppelman 2016). Since he will deploy a number of developers for the development of each aspect of the information system, he will need to monitor the progress of work done by each of the developers. Moreover, the chief developer will have to report to the IT supervisor who will update the progress report of the project accordingly at the end of each day. |
4.0 Team Contract
The team has agreed upon the following terms of contract for the project.
- As the final budget has been agreed, the team must stick to it and will only receive additional funds in case of unforeseen incidents and accidents.
- Each feature of the information must be developed without fail. Any missing feature or requirement will result in strict penalty against the developers.
- The team must follow all ethical guidelines and organizational rules while working on the project.
|
Name |
Sign of Team Contract |
|
Mr. A |
______________________________________ |
|
Mr. B |
______________________________________ |
|
Mr. C |
______________________________________ |
|
Mr. D |
______________________________________ |
|
Mr. E |
______________________________________ |
5.0 Financial Projection of the Project
The total agreed budget for the project is $500,000 and the allowed discount rate is 9%. Based on the budget and other financial estimations, the overall financial estimation is shown as follows.
|
Cost Benefit Analysis for Bendigo Tours and Travels |
|
|
Total Costs for New Hardware |
$ 260,000.00 |
|
Total Costs for New Software |
$ 45,000.00 |
|
Development Costs for the New Information System |
$ 275,000.00 |
|
Training Module for the Employees |
$ 100,000.00 |
|
Total Development Cost |
$ 680,000.00 |
|
Maintenance Cost of the Information System |
$ 55,000.00 (50% discount after 3 Yrs.) |
|
Operational Costs |
$ 5,000.00 |
|
Other Costs |
$ 15,000.00 |
|
All Recurring Costs of the System |
$ 75,000.00 ($47,500 after 3 Yrs.) |
|
Savings from Wages of the Employees |
$ 150,000.00 |
|
Reduced Various Costs |
$ 170,000.00 |
|
Total Benefit |
$ 320,000.00 |
|
Discount Rate Used |
6.50% |
|
Cost Benefit Analysis and Financial Statement for Bendigo Tours and Travels |
||||||||
|
Analysis Variables: |
||||||||
|
Discount Rate Used |
6.50% |
|||||||
|
Annual Benefits |
$ 320,000.00 |
|||||||
|
Annual Operational Costs |
$ 75,000.00 |
$ 47,500.00 |
||||||
|
One-Time Development Cost |
$ 680,000.00 |
|||||||
|
Year of Project |
|
|||||||
|
0 |
1 |
2 |
3 |
4 |
5 |
TOTALS |
||
|
Economic Benefit |
$0.00 |
$ 320,000.00 |
$ 320,000.00 |
$ 320,000.00 |
$ 320,000.00 |
$ 320,000.00 |
||
|
Discount Rate |
1.0000 |
0.9390 |
0.8817 |
0.8278 |
0.7773 |
0.7299 |
||
|
PV of Benefits |
$0.00 |
$300,469.48 |
$282,130.97 |
$264,911.71 |
$248,743.39 |
$233,561.87 |
||
|
NPV of all BENEFITS |
$0.00 |
$ 300,469.48 |
$ 582,600.45 |
$ 847,512.16 |
$ 1,096,255.55 |
$ 1,329,817.42 |
$ 1,329,817.42 |
|
|
One-Time COSTS |
$(680,000.00) |
|||||||
|
Recurring Costs |
$0.00 |
$ (75,000.00) |
$ (75,000.00) |
$ (75,000.00) |
$ (47,500.00) |
$ (47,500.00) |
||
|
Discount Rate |
1.0000 |
0.9390 |
0.8817 |
0.8278 |
0.7773 |
0.7299 |
||
|
PV of Recurring Costs |
$0.00 |
$ (70,422.54) |
$ (66,124.45) |
$ (62,088.68) |
$ (36,922.85) |
$ (34,669.34) |
||
|
NPV of all COSTS |
$(680,000.00) |
$ (750,422.54) |
$ (816,546.98) |
$ (878,635.66) |
$ (915,558.51) |
$ (950,227.85) |
$ (950,227.85) |
|
|
Overall NPV |
$ 379,589.57 |
|||||||
|
Overall ROI |
||||||||
|
0.3995 |
6.0 SDLC Model of the Project
Based on the requirements of the information system, the most suitable SDLC model should be Agile development model. Using this model, the development of the system will be done in rapid and incremental cycles until the final outcome is reached.
The Agile model cycle consists of six main parts – Initiating, Planning, Executing, Monitoring & Control and Closing. These parts are explained as follows.
Initiating – This is the initiation phase when the project is formally initiated after agreeing on the project goals and other estimated parameters (Marchewka 2014). Initiation of the project requires approval from project manager after the project proposal document is submitted.
Planning – In this phase, suitable plans for the project are made that include development of project charter, scope, schedule and budget.
Executing – This is the longest and the most important phase in which, the entire project is executed as per the plan developed.
Monitoring and Control – In this phase, the project progress is monitored and in case the project outcomes are not satisfactory, suitable control measures are taken.
Closing – This is the final phase of the project in which project documentation is prepared and submitted, project is reviewed and the stakeholders sign off from the project.
This cycle is mostly favorable for software and information system development and hence, this is specifically chosen for this project. Moreover, the iterative procedure of Agile will help to ensure all the features of the information system are working as per the requirements.
Stakeholder Register
This project can also be executed using adaptive software development process with a different cycle of process like speculate, collaborate and learn. This process also involves development of prototype for the proposed system (Nicholas and Steyn 2017). However, agile is more suitable for this project as it is much more detailed and suits the needs of the project sequence.
7.0 Work Breakdown Structure
The work breakdown structure of the project is shown as follows.
The Gantt chart of the project is shown below in which, the path marked in red is the critical path of the project.
9.0 Network Diagram
The network diagram of the project that also shows the slack of some activities is as follows
10.0 Schedule Trade Offs
The schedule trade-offs and the slack for certain activities are shown in the following diagram.
11.0 Communication Management Plan
Any project requires a suitable communication management plan that helps the stakeholders to share information and ideas among themselves in order to ensure the project is running according to plan. The communication management plan for the project is as follows.
|
Stakeholder |
Communication Purpose |
Communication Frequency |
Communication Medium |
|
Project Manager |
Any project progress update, change requests, consultation regarding project activity |
Weekly |
Face to face during team meeting, emails |
|
Chief Developer |
Project requirements |
Before start of project |
Face to face in project meeting |
|
Chief Finance Manager |
Fund requirements, financial expenses updates |
Whenever required |
Finance reports through emails |
|
Procurement Officer |
Resource requirements for the project |
Before start of project |
Face to face in project meeting |
|
IT Supervisor |
Project updates |
Daily |
Daily progress report document |
There are certain risks associated with the project, which are shown in the following table along with the mitigation strategies.
|
Risk Description |
Chance of Occurrence |
Effect on Project |
Mitigation Strategy |
|
Due to the extensive implementation of the information system, the central server is vulnerable to the cyber security attacks. |
Very High |
Extreme |
During implementation of the information system, strong firewall and anti-virus software are to be installed in all the workstations to prevent the attacks. |
|
Due to the scale of implementation of the project, the pre set budget may not be sufficient and the organization faces the risk of bankruptcy if they are not able to keep with the actual costs of the project. |
High |
Very High |
Create budget breakdown structure during planning, add flexibility to budget considering all extra costs, possible overshoots and others, communicate with project sponsor regarding possible additional costs. |
|
Lack of technical expertise of the employees may result in poor handling of the system. |
High |
Medium |
Initiate a training module for helping the employees learn the management of the new information system. |
|
Since the company wants to implement the information system on a global scale, the complexity of the proposed information system may be high resulting in poor handling and management of the system. |
Very High |
Medium |
Assess the proposed system and ensure the organization is ready to use such a complex system. |
|
The organization may fail to manage end user expectations i.e. the customer requirements. |
Medium |
High |
Ensure the customer requirements are fulfilled while determining the features required for the system. |
The weekly status report is shown in the following table.
|
Timeline |
Activity |
Status |
|
Week 1 |
Board Meeting |
Completed |
|
Week 2 |
Project Proposal Submission |
Completed |
|
Week 3 |
Second Board Meeting |
Completed |
|
Week 4 |
Project Plan |
Pending |
|
Week 5 |
Final Project Budget |
Pending |
|
Week 6 |
Third Board Meeting |
Pending |
14.0 Conclusion
This report is used to develop an appropriate project plan for the implementation of the proposed information system for Bendigo Tours and Travels so that the company is able to expand on a global scale instead of just the native country. The entire project process is scheduled to be completed within 138 working days and is estimated to consume a budget of $680,000.
References
Erich, F., Amrit, C. and Daneva, M., 2014, December. A mapping study on cooperation between information system development and operations. In International Conference on Product-Focused Software Process Improvement (pp. 277-280). Springer, Cham.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Larson, E.W., Gray, C.F., Danlin, U., Honig, B. and Bacarini, D., 2014. Project management: The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Lavbi?, D., Lajovic, I. and Krisper, M., 2018. Facilitating information system development with Panoramic view on data. arXiv preprint arXiv:1807.04998.
Marchewka, J.T., 2014. Information technology project management. John Wiley & Sons.
Meredith, J.R., Mantel, S.J., Shafer, S.M. and Sutton, M.M., 2014. Project management in practice. Wiley.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Routledge.
Spiegel, B.M., Hays, R.D., Bolus, R., Melmed, G.Y., Chang, L., Whitman, C., Khanna, P.P., Paz, S.H., Hays, T., Reise, S. and Khanna, D., 2014. Development of the NIH patient-reported outcomes measurement information system (PROMIS) gastrointestinal symptom scales. The American journal of gastroenterology, 109(11), p.1804.
Stein, E., Taskaeva, N. and Chibisova, E., 2016. Methodological Aspects of the Creation of Information-and-technological Complexes Within the Investment Projects as a Factor of the Urban Territory Development. Procedia Engineering, 165, pp.1410-1416.
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