Project Management

1. Project Proposal Summary

Project Name

Suitability as Six Sigma Project

Improvement of Operations

Decrease in Cost

Ranking

1. Online Six Sigma Training Program

Small project orientation

Result Orientation

Systematic Skill-driven method

Continuous organisational learning supports efficient decision-making of managerial and frontline employees.

Decrease cost from mistakes or delays in operations as well as in using cost-effective Internet training tools.

2. Coding Performance Improvement Project

Small project orientation

Result Orientation

Systematic data-driven method

Efficient coding enhances computing efficiency to provide accurate and reliable information for decision-making and evaluations.

Decrease cost through computing efficiency and accuracy.

3. Web Site Redesign Project

Small project orientation

Result Orientation

Systematic data-driven method

Redesign improves linkages between the company and clients since it serves as an important point of interaction with clients.

Contribute cost-effectiveness by optimising the web site channel.

4. Wireless Technology Project

Small project orientation

Result Orientation

Wireless technology would ensure real time intra and inter communications.

Reduce costs of delays by speeding up real time communications necessary in effective decision-making.

5. Supporting Office Project

Small project orientation

Result Orientation

Outsourcing data entry allows members of the organisation to focus on other aspects such as creativity and innovations.

Reduce cost of labour hours allocated to data entry.

Five projects constitute the Six Sigma strategy implementation proposal for the company. These projects cover different areas to ensure organisation-wide and long-term improvement. When implemented as complementary projects, this should contribute to the enhanced efficiency of the company in terms of improved results and greater cost reduction.

The first project involves the online Six Sigma training of employees to enhance their skills in directing efforts toward the minimisation of mistakes and delays by developing efficiencies in processes, systems and relationships. Through online Six Sigma training, a change to an efficiency-drive value system would allow the organisation to decrease cost by spending on a cost-effective training venue or tool. This ranks as the top project because it represents the highest cost-saving result, encompassing effects, and long-term impact.

The second project covers coding performance improvement project to minimise the cost involved in developing large computers by enhancing the efficiency of existing large computers to support the computer needs of the company and divest the necessity of developing more supercomputers. This project ranks second since it constitutes another key area of efficiency change that contributes effectively to cost-savings. This project targets system efficiency.

Third project involves the redesign of the company’s website to integrate it with emerging client needs and developing company objectives. By doing this, the company should be able to connect more with new and existing clients to achieve mutual goals. This targets client needs. It ranks fourth because of its lesser cost reduction contribution although it contributes to the improvement of operations in terms of developing linkages with existing and potential clients.

Fourth project targets communication efficiency. The company is a multi-national firm with operations across the globe. By investing on wireless technology, the company ensures that it is able to integrate its global operations to ensure consistency in operations. Real time communications adds to efficiency by making it easier to receive and obtain updates from the different business units or the different people in the field. This ranks fifth because of its lesser cost-saving contribution although it offers linkage benefits.

The fifth project is supporting office project by outsourcing data entry functions in countries with low labour costs. Apart from cost savings on labour, the company should be able to rationalise its organisational structure to focus on innovativeness and creativity. This project not only minimises cost but it also contributes to operational outputs. This ranks fourth because of its important cost-saving and operational effectiveness contributions.

2. Project Screening Matrix (Multiple-Project Screening Matrix)

Project screening matrix shows the relative ranks and scores of the different projects based on the four criteria of cost reduction, efficiency, increase in clients, and skills improvement. The results of the matrix compare the different projects in terms of the criteria to determine prioritisation. Higher ranking indicates the higher degree of expectation that the project would facilitate the achievement of the criterion and lower ranking pertains to the lesser degree of expectation that the project would achieve the criterion. Since all criterion used are necessary in the achievement of the Six Sigma objectives of the company, the higher total ranking should indicate the project that would provide solution to the problems that the company wants to solve through Six Sigma projects.

The table below shows the comparative ranking and scores of the different projects in terms of the criteria. The higher weight given to a criterion indicates the level of importance of the criterion as an expectation from the projects. This means that cost reductions constitutes the most important benefit expected from the projects followed by efficiency, skills improvement and increase in clients. The weight also constitutes the determination of project prioritisation.

Project 1

Project 2

Project 3

Project 4

Project 5

Weight

Reduce Cost

Efficiency

Increase Clients

Improve Skills

Total

The bar chart below, on project ratings, indicate that Project 1, 2 and 5 involving the online Six Sigma training of employees, coding performance improvement, and supporting office project have the highest propensity of ushering cost savings for the company. Project 1 and 5 are also able to deliver fully, efficiency for the company, followed by Project 2. This means that the se projects constitute priority areas. However, in determining a single project that would provide the company with the best combination of benefits, the bar chart below on project scores indicate that Project 2 and 5 affords the company with the greatest benefits. Since the priority is cost reduction, then Project 2 provides the best opportunity for achieving this objective because it focuses on cost minimisation together with efficiency.

3. Coding Performance Improvement Project Proposal

Project Description

Improving coding performance involves writing and testing new computing programs together with the debugging or troubleshooting of existing programs that have remained important to the operations of the company. Computing programs to be developed should ensure that their application exhibit the desired behavior or outcomes intended by the company such as data organization, analysis and transfer to support policy and decision-making whether at the level of the business units or company-wide level.

Expected Results

Technical results cover the removal of any bugs or problems in the programs used by the company in order to prevent mistakes as well as the enforcement of regular testing and checks of computing programs to ensure efficiency. Other non-technical results include the widespread use of computing programs by the company in support of operational objectives. Overall, cost savings come about from minimised mistakes and bugs together with easy navigability. Efficiency arises when managers and employees effectively use computing programs.

Activities/Duration/Cost in the Strategic Plan

Activities

Resource Needs

Plan of Action

Duration

Cost

1. Checking of Computing Programs

technical expertise

Internal experts

Months 1 and 2

£30,000

2. Debugging of Computing Programs

technical expertise

Internal and/or external experts

Months 2 and 3

£50,000

3. Design/Writing of Proposed New Programs

technical expertise

Internal and/or external experts

Months 2 and 3

£40,000

4. Testing of Debugged Programs

technical expertise/testing participants

Internal experts/employees/managers

Months 4 and 5

£20,000

5. Evaluation of Applications

technical expertise/testing participants/actual users

Internal experts/employee and manager feedbacks

Months 5 and 6

£10,000

The project requires six months for completion. Timing and effective results with high precision constitutes the requisites of a bigger project on the implementation of the new coding process. All primary activities should be accomplished within five months to give way for assessments and readjustments.

Cost

Expenses

Amount

1. Technical Tools

£50,000

2. Internal Technical Expertise

£55,000

3. Outsourced Technical Expertise

£30,000

4. Internal Expertise during the Evaluation

£15,000

Bulk of the budget goes to technical expertise, since this is needed in assessing the utility and salience of existing computing programs, determining problems experienced in existing programs, debug these programs to ensure efficiency, and develop an effective means of integrating existing and new computing programs to develop an improved coding system. Technical tools also use up one-third of the budget. Cost-benefit analysis shows that while the company expects to incur a total of £150,000 for the initial project and an additional £350,000 for the implementation of the new coding system, expected benefits amount to £2 million during the first years followed by £.5 million for the succeeding years. This means that during the first year, all expenses have already been covered.

4. Responsibility Matrix

The team of eight involved four full-time and four part-time or consulting members, with each member contributing different expertise and skills to the design of the new computing system. Areas covered include hardware and software expertise, networking knowledge and experience, systems administration, program design, and program troubleshooting. Members of the team cover these different areas so that they should be assertive in contributing their opinions. However, the people in charge of systems administration and troubleshooting should also be open to opinions since these people handle responsibilities encompassing different areas requiring their integrative skills.

Name

Responsibility

Status

Background

Personality

Sandy Schultz

Check, upgrade and set-up hardware requirements

Full-time

Hardware Specifications

Assertive

Chuck Williams

Check for software bugs and recommend upgrades

Full-time

Software Programming

Assertive

Beth Collins

Determine hardware and software performance compatibility

Full-time

Systems Administration

Assertive but Accommodating of Opinions of Suggestions

Steve Whittaker

Assess and recommend improvements in the Current Network and LAN architecture

Full-time

Systems Networking

Assertive

Larry Wilson

Recommend customised programs for the company

Consulting

Program Design

Assertive

Mike Burton

Recommend customised programs for the company

Consulting

Program Design

Assertive

Sarah Smith

Determine potential problems in current or recommended computing systems

Consulting

Program Troubleshooting

Assertive but Accommodating of Opinions of Suggestions

Norah Livingston

Determine potential problems in current or recommended computing systems

Consulting

Program Troubleshooting

Assertive but Accommodating of Opinions of Suggestions

5. Scope Statement

On its own, the coding performance improvement project is limited only to the development of the computing system. This means that it does not include other factors such as the development of the skills of the company or meeting consumer needs directly. However, the project could influence these indirectly when the new computing system is able to allow employees to achieve higher productivity levels in terms of products and services at a lower operating cost due to the minimisation of delays, mistakes or system glitches.

1. Project Name

Coding Performance Improvement Project

2. Project Description

Assess and improve the existing computing system as a Six Sigma strategy.

3. Scope Inclusions

A. Goals and Objectives

B. Requirements

C. Deliverables

The project should bring about cost reduction on the computing system and efficiency in terms of providing accurate bases for decision-making.

Expenses of £150,000 and £350,000

Reduction of as much as half of current expenses on the computing system and increased productivity in terms of revenue growth by at least 10 percent

4. Scope Exclusions

A. Goals and Objectives

B. Requirements

C. Deliverables

The project does not directly target development of computing skills of employees or improvement in client relations.

Employee training especially on the new computing system and improvement of service and service delivery venues

Efficient use of the improved computing system resulting to outputs double the existing levels of productivity and the development and growth of the company’ client base.

6. Work Breakdown Structure

Level 1

Level 2

Level 3

Preparation

Briefing

Introduction of Group Members

Expectation Sharing

Sharing of Expertise & Background

Overview of the Project

Six Sigma Training

Scheduling of training before commencement of work

Tasking

Responsibility Determination and Assignment

Work Coordination

Selection of Modes & Channels of Communication

Sharing of names, work and home contact numbers, e-mails especially for the consultants

Scheduling

Meeting schedules, availability schedules

Work Performance

Resource determination & procurement

Hardware, software, systems, processes, tools, expertise, experience

Productivity and performance

Daily and weekly outputs, output evaluations

Adjustments of Tasks

Re-assignments, merger or switching of tasks as necessary

Work Integration

Consultations, endorsement of finished task to the next person in charge of the next task, development and shifting of working sub-teams

Assessment

Task completion evaluation

Comparison with goals and objectives, feedback from project team members

Project effectiveness evaluation

Comparison with goals and objectives, feedback from various departments of the company

Performance evaluation

Comparison with expectations, feedback from team members

There are four primary tasks involved in the completion of the project, which are group formation, project preparation stage, tasking, work performance, and evaluation. Under these four major tasks are second level work constituting details of the first level tasks. Second level tasks are further detailed into specific work that needs to be done from the preparation stage until project completion.

7. Process Breakdown Structure

Process

Elements

Process Activities

Consultant Contracts

Negotiation Clarification

Delivery

Assessment

Negotiations for service-delivery, determination of the scope and limits of the consultation services as well as terms and conditions, bidding for the price, transfer of expertise and skills, payment upon satisfactory completion

Resource Management

Determination

Selection

Prioritisation

Procurement

Allocation

Use

Determine all resources needed from the commencement until the completion of the process, in case of competing resource area needs select the best resource to invest in, prioritise resource needs especially with a limited budget, procure the selected and prioritised resources, effective allocation or spread of resources to meet various objectives, and optimised utilisation of resources to achieve the greatest possible result with available resources

Assessment

Assessment Measures

Period of Assessment

Scope of Assessment

Sources of Information

Analysis

Identify the assessment measure required for various areas to be evaluated, specify the period and scope of the evaluation, gather information from all possible sources, analyse information using the measures to determine whether the variable being evaluated has achieved the intended or expected results.

8. Linking of Structures

The work breakdown structure and the process breakdown structures can be linked to allow one project manager to handle both structures by considering two perspectives in the completion of the projects, with the first perspective focusing on the tasks or work that need to be accomplished while the other perspective looks into processes that need to be fulfilled. In a way, the process breakdown structure constitutes details of the work breakdown structure. One cannot be separately management from the other structure. As the different levels of work unfold, processes also happen.

9. Gantt Chart and Network Diagram

Task

Task Duration

Dependencies

Milestones

Preparation

Briefing

One day

Non-approval of the project

Go signal from management to commence the project

Six Sigma Training

Two Days

Lack of common schedules

Presence of black belt trainer

Tasking

Responsibility Determination and Assignment/

Work Coordination/

Selection of Modes & Channels of Communication

One Day

Lack of cooperation and Agreement of team members

Inclusion of the targeted members of the team

Scheduling

One Day

Interference of other commitments especially the consultants

Determination of common schedules

Work Performance

Resource determination & procurement

One Week

Absence of all team members, lack of supplier networks

Key resources and resource suppliers

Productivity and performance

5 Months

Natural calamities and uncontrolled external circumstances such as economic downturns as well as completion of regulatory and legal requirements

Supervision to direct all efforts towards goal fulfilment

Adjustments of Tasks

As frequently as needed within the Project Duration

Approval of top management

Non-resistance or cooperation of the team members

Work Integration

5 Months

Breach of contract of consultants in not complying with their task assignments

Cooperation of team members in providing information and contribution to task completion

Assessment

Task completion evaluation

One Week

Interference by non-members of the project team

Completion of the task

Project effectiveness evaluation

One Week

Interference by non-members of the project team

Achievement of goals

Performance evaluation

One Week

Interference by non-members of the project team

Pre-determination of task expectations

Critical Path Analysis

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Preparation

Briefing

Six Sigma Training

Tasking

Responsibility Determination and Assignment/

Work

Work Coordination

Selection of Modes & Channels of Communication

Scheduling

Work Performance

Resource determination & procurement

Productivity and performance

Adjustments of Tasks

Work Integration

Assessment

Task completion evaluation

Project effectiveness evaluation

Performance evaluation

10. Organisational Breakdown Structure

11. Spreadsheet on Project Cost

Employee Name

£/hour

hours/week

no. of weeks

Gross Pay

Six Sigma Training

Total Cost

Sandy Schultz

13000

500

13500

Chuck Williams

13000

500

13500

Beth Collins

13000

500

13500

Steve Whittaker

13000

500

13500

Larry Wilson

2625

Mike Burton

2625

Sarah Smith

2625

Norah Livingston

2625

Project Manager

31200

Kevin

15600

109300

111300

The total labour cost for the project is £111, 300, which is nearly more than three-quarters of the total budget for the project. This means that there is a limited remaining amount for other expenses such as tools and other miscellaneous resource needed in satisfactorily completing the project. However, based on the initial costs, the budget for tools such as hardware and software purchase is one-third of the budget or £50,000. This means that the labour cost exceeded by as much as £11,300. To make the budget the work according to plans, the exact period of work of the full-time and part-time employees should be determined since tasks do not necessarily involve working for 26 weeks. There are instances when the work of the hardware expert is finished to give way to software programming so that this could allow cuts on the cost.

12. Risk Severity Matrix

Risk

Cause

Trigger

Contingency Plan

Response

Risk Event

1. Inconsistencies in Work Contribution of the Different Team Members

Differences in Opinion

Closed Perspectives of Team Members

Stop current work and redirect tasks

Interactive Meetings to reach a common understanding and direction

High

2. Overshooting of Budget

Unrecognised Areas of Spending

Oversight or lack of organisation

Re-allocate and optimise remaining budget

Suspend further spending to apply the contingency plan

Moderate

3. Tool Availability or Allocation Problems

Lack of Budget or Resource Wastage

Oversight

Re-assess resources and find tool suppliers

Suspend areas lacking in resources but continue areas with sufficient resources

Moderate

4. Miscommunication

Limited Channels of Communication

Unfounded assumptions, lack of consultation

Identify and open all available communication channels

Locate the root cause of the problem

Moderate

5. Economic Catastrophes

Money market or stock market shifts

Industry or economic factors

Re-assess goals and objectives

Suspend project to assess viability

Low

The risk considered to have the greatest severity of risk is the inconsistencies in the work performed by the different members of the team. Since the different team members handle different areas of the project, this means that the inconsistencies could result to the non-completion of the project or the completion of the project without meeting all the predetermined goals and objectives. There are other risks related to the budget, resource allocation, and communications but these are considered to carry moderate risk. Economic catastrophes constitute the risk with the least severity. Although the actualisation of this risk could have dire impacts on the project, the risk that this would occur or occur to an extent that would affect the company is low.

13. Lessons Learned Report

Project management involves multi-tasking, which requires knowledge on different areas of project processes such as planning, implementation and assessment. Project management spans the areas of business strategy, accounting, supply chain management, change management, human resource management. True to its comprehensive scope, project management also involves marketing because the project should be marketed to top management to seek their approval and to the different departments of the organisation to ensure their acceptance of the change or new system intended for introduction. Project managers should be innovative and creative in order to convince stakeholders to accept the merits of the project. A good argument does not only involve a presentation of financial and non-financial aspects but also the communication of this information in a manner that appeals not only to reason but also to the other aspects of human nature. Of course, underlying a good marketing scheme is a sound project proposal customised to meet the actual needs and objectives of the company with strong support from financial and non- financial factors.

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