Week 4 Hand-in Assignment
Individual Project: Project Proposal
This week, you will begin work on your Final Project for this module. Your Final Project for this module will be
completed in three stages and submitted in Weeks 4, 6, and 8. This week, you will complete the first stage of
your Final Project—the Project Proposal. The purpose of the Final Project is to apply the concepts and
techniques of the module to the development of the following:
Project scope statement
Staffing (resource) management plan
Risk management plan
Each of these will form a separate section of the Final Project.
Your task for Week 4 is to prepare a Project Proposal that covers the following:
1. Description of how you plan to manufacture, deliver, and assemble the boxes.
2. Information on how you will create a project plan. You can create your project plan using either
Microsoft® Project or OpenProj™.
3. Description of how you plan to address time, resources, and cost issues to execute tasks and
complete the project effectively and efficiently.
The purpose of this week's submission is a proposal and not the solutions to the problems given in the case
The case study on which the project is based is as follows:
Project Background: The Research and Development unit of the Property Development Department of the
Government (PDDG) is working on a program called the Seismic Zone Residential Construction Improvement
Program. PDDG is working to assess the effectiveness of the boxes of a particular dimension used in the
foundation of buildings.
PDDG has furnished the following specifications for the each box:
The size must be 300 x 250 x 200 cm with a slot of 10 x 10 x 25 cm.
The tolerance on outer dimensions must be +/-2 cm.
The tolerance on dimensions of the slot must be 0 to -3 mm in width. In short, the slot cannot be more
than 10 x 10 cm.
It should be made of cardboard or metal sheet.
It should be made of small cubes of dimensions 5 x 5 x 5 cm.
It should be smooth in appearance.
The boxes should be delivered and assembled at the client's site.
Company Background: Your Company, Flexible Models (FM), develops to-the-scale industrial models. Your
principal clients are industrial construction companies and your projects include building manufacturing plants,
refinery process plants, and public usage buildings, such as halls and shopping malls.
FM also has clients in the residential construction business but deals in building complexes having more than
17,000 square meters of actual usable area. The model development skills of FM are well-known across
The key departments in FM are as follows:
Designing and Drafting Department: This department is involved in understanding the client's
design requirements. Generally, the client specifies the design of the product. The department
prepares the detailed drawings for the Cutting Department. It also gives them the assembly drawings
with guidelines on the assembly approach. The resources from this department are allocated
exclusively to the project depending upon the project requirements. Roy Benjamin, general manager,
heads the department. He needs alternate day updates on product design. He is also a man of detail
and requires detailed analysis.
Cutting Department: This department's staff is competent in cutting the parts and producing the units
as per the drawings. The resources from this department are not allocated exclusively to the project.
However, the project work is taken up by the department and then delivered back to the project.
Michael Gartner, general manager, heads the department.
Assembly Department: This department is responsible for assembling the parts based on the design
drawings. The resources from this department are allocated to the project exclusively depending upon
the project requirements. Philip Cloony, general manager, heads the department.
Supply Chain Management (SCM) Department: This department is responsible for vendor
management, market analysis, contracting, and procuring required resources. The department is a
single point of contact for the supply chain. Jim Stanford, general manager, heads the department.
New Model Development: John Morris is the vice president of this division. John is adept at using the
Web-based project tracking system and insists on maximizing its use. He is a person of detail and
prefers point-by-point communication. He is keen on regularly obtaining information on the progress of
the project and the project management processes that are being implemented. Having realised the
need for effective portfolio management, FM has initiated the organization restructuring efforts under
John's leadership, who is also the project sponsor. He wants you to undertake this project and help in
strengthening the organization’s initiative. You have been authorized by John to select people from
various key departments for your project. These people shall directly report to you for the duration of
The marketing chief, Caroline Smith, wants to keep the budget under control. Caroline is quite comfortable with
quick information and does not like details. She prefers one-on-one meetings or telephone calls for quick
FM primarily uses e-mail as the means of communication. The company also uses a Web-based project
tracking system to gather information.
The editorial team of a local journal, Construction Consortium Journal, is interested in your project. Joseph
Bukhmann, the chief editor, has full faith in FM's expertise. He wants to know more about the project to report it
in the journal.
Client Background: Paul Lee, the technical lead at the Research and Development unit of PDDG wants a
once-a-week update about the progress of the technical design. The Seismic Zone Residential Construction
Improvement Program Manager at PDDG would like to speak with you about the project progress on a
biweekly basis. However, he needs a short presentation on the project status update two days before the
Assignment: You are accountable for the project costs, and hence, you are keen on developing realistic cost
estimates and a realistic project budget. You have already estimated the effort, which is given in the table
Task Name Duration Resource Effort
Interview client stakeholders 4 days Design 8 person days
Product detail analysis 6 days Design 10 person days
Assembly 6 person days
Refinement of the final draft 2 days Design 4 person days
Design and Concept
High level design 4 days Design 4 person days
Details with operation designs 6 days Design 12 person days
Set up 4 days Assembly 6 person days
Cutting and parts development 3 days Cutting 9 person days
Sub-assembly 1 6 days Assembly 12 person days
Sub-assembly 2 6 days Assembly 12 person days
Sub-assembly 3 4 days Assembly 8 person days
Assembly integration 3 days Assembly 6 person days
Cardboard sheet 50 sheets
Metal sheets 50 sheets
Cubes 900 pieces
Pre-delivery 2 days Will cost USD 3000
Shipment/Delivery—delivery takes 2 weeks Outsourced Will cost USD 6000
Implementation 7 days Design 11 person days
Assembly 7 person days
'Product detail analysis' can start with 'Interview client stakeholders'. However, the final draft can be refined
only after both tasks are completed. The task 'Details with operation designs' starts with a 50% overlap with
'High level design'. The tasks 'Sub-assembly 1', 'Sub-assembly 2', and 'Sub-assembly 3' all start after the task
'Set up' is completed. 'Assembly integration' starts only after all sub-assemblies are completed. Pre-delivery
can start after set up, while shipment starts only after assembly integration. The last activity is implementation.
The 'Cutting and parts development' task requires skilled labor and is the most crucial task from a quality
perspective. A minor mistake can cause a lot of waste and escalation in the cost of the product. There are only
two skilled people in the company who can undertake this task and they are always extremely busy. The
probability that they will not be available for this work in the schedule mentioned above is 0.7. This has impact
on the schedule as the schedule gets pushed by 6 days for every day of delay in this task.
Traditionally, there has been a 0.3 probability of components getting damaged during shipment and the costs
should incorporate 30% of additional budgeting for these incidences.
In addition, factors such as a change in client requirements after the cutting stage, a delay in the arrival of raw
materials needed for each task or process, and the time wasted during incorrect set-up should be considered
when you draw the risk log and the risk management plan for the project.
Resource rates are as follows:
USD 20 per industrial cardboard sheet of 300 cm x 200 cm x (4 mm thickness) dimensions
USD 25 per metal sheet of 250 cm x 200 cm x (4 mm thickness) dimensions
Standard cubes of 4 cm are available in the market at USD 10 each
Design department: USD 150 per day
Cutting department: USD 90 per day
Assembly department: USD 150 per day
For completing the project plan, additional information can be found at the following Web sites:
Example of project plan in Microsoft Project:
Plutonic Power Corporation East Toba River and Montrose Creek Hydroelectric Project proposed
construction schedule [Online]. (n.d.). Available from:
5cd42fc4020fb.pdf (Accessed: 15 September 2009)
Getting started with OpenProj (2008) Available from:
http://openproj.org/wiki/index.php/Getting_Started_with_OpenProj (Accessed: 15 September 2009)
Note: Additional documentation can be accessed by clicking Next Tip of the Day within OpenProj and by
pressing F1, which will give you online help for the item underneath the cursor. Note also, as an open source
software package, documentation and support will be limited.
Examples of a project plan in OpenProj
Gantt chart (2008) Available from: http://openproj.org/wiki/index.php/Gantt_Chart (Accessed: 15 September
The Research and Development Unit of the Property Development Department of the Government (PDDG) has
commissioned to Flexible Models (FM) the supply of boxes to be used in the foundation of buildings. PDDG
has also provided the specifications for each box.
Cost estimate has been calculated on 97,080.00 USD as per below table
Task Name Duration Resource Effort Budget
Boxes Days Person Days
Requirements Analysis 15,900.00
Interview client stakeholders 4 Design 150.00 8 4,800.00
Product detail analysis 6 Design 150.00 10 9,000.00
1 Assembly 150.00 6 900.00
Refinement of the final draft 2 Design 150.00 4 1,200.00
Design and Concept 13,200.00
High level design 4 Design 150.00 4 2,400.00
Details with operation designs 6 Design 150.00 12 10,800.00
Set up 4 Assembly 150.00 6 3,600.00
Cutting and parts development 3 Cutting 90.00 9 2,430.00
Sub-assembly 1 6 Assembly 150.00 12 10,800.00
Sub-assembly 2 6 Assembly 150.00 12 10,800.00
Sub-assembly 3 4 Assembly 150.00 8 4,800.00
Assembly integration 3 Assembly 150.00 6 2,700.00
Cardboard sheet 50 sheets 20 $/ sheet 1,000.00
Metal sheets 50 sheets 25$/ sheet 1,250.00
Cubes 900 pieces 10 $ each 9,000.00
Pre-delivery 2 Will cost USD 3000 3,000.00
Shipment/Delivery—delivery takes 2
Outsourced Will cost USD 6000
weeks by sea. 6,000.00
Implementation 7 Design 150.00 11 11,550.00
1 Assembly 150.00 7 1,050.00
TOTAL ESTIMATE COST 97,080.00
Description of how you plan to manufacture, deliver, and assemble the boxes
i. A meeting will be held with the following managers in order to define the project scope.
1. Roy Benjamin general manager of Design and Drafting Department
2. Michael Gartner general manager of Cutting Department
3. Philip Cloony general manager of Assembly Department
4. Jim Stanford general manager of Supply Chain Management Department
5. John Morris vice president of New Model Development division
6. Caroline Smith, marketing chief
7. Paul Lee, technical led at the Research and Development unit of PDDG
ii. Resources: Cutting department has share and restricted resources. As per project data only two
skilled people can undertake this task and as they are always busy there will be only 0.3
probabilities that during project need they can be available. A risk plan and assessment has to
be developed taking into consideration this constraint. Therefore a good planning has to be
prepared. According with the attached Gantt Chart Cutting and & Parts Development will start 4
weeks after the first task that means we should have enough time to coordinate the resources
availability with other departments.
iii. Communication plan has to be implemented as FM uses e-mail as a primarily means of
iv. Quality Plan and Risk Management Plan have to be developed taking into consideration PDDG
specifications and the resources constraint for Cutting Department and the possible
components getting damaged during shipment.
v. A responsibility Matrix has been prepared in order to identify roles and responsibilities during
DDGM Designing and Drafting Dept General manager Roy Benjamin
CDGM Cutting Dept General manager Michael Gartner
ASGM Assembly Dept General manager Philip Cloony
SCMGM Supply Chain Management General manager Jim Stanford
NMDGM New Model Dept Vice president John Morris
MC Marketing Dept Marketing Chief Caroline Smith
CCJ Construction Consortium Journal Chief Editor Joseph Bukhmann
PDDG Research & Devel. Unit Technical Lead Paul Lee
PM Project Manager Cristiano Rossetto
R-Responsible A-Accountable C-Consult I-Inform
DDGM CDGM ASGM SCMGM NMDGM MC CCJ PDDG PM
Interview client stakeholders A C C C C C I C R
Product detail analysis A C C C C C I C R
Refinement of the final draft A C C C C C I C R
Design and Concept
High level design R A C I C C I C C
Details with operation designs R A C I C C I C C
Set up C A R I C I I I C
Cutting and parts development C A R I C I I I C
Sub-assembly 1 C A R I C I I I C
Sub-assembly 2 C A R I C I I I C
Sub-assembly 3 C A R I C I I I C
Assembly integration C A R I C I I I C
Cardboard sheet I C A R I I I I I
Metal sheets I C A R I I I I I
Cubes I C A R I I I I I
Pre-delivery C C R C I A I C C
Shipment/Delivery C C C R C I I I A
Implementation C C C C C C I I R