Information System project Assignment MT300.docxNew Information System Project
New Information System Project
Part 1: Initial Plan budget. (Using math for decision-making)
You are a manager with budget authority for a new IT project
that is being developed for your department. The project is being developed
internally by the company IT staff. You are developing a budget for the
project. In this scenario, you will be in integrating information systems and
information technology to progress an organization toward their organizational
objectives. Consider the information given to determine how much capital you
will need to raise to complete this project successfully. Your goal is
determine the budget needed to complete the project within the stated timeline
and maintain the system through the full five year maintenance contract. Note
that the first month of maintenance for the contract starts simultaneously with
the start of the project. In this case, you have wisely decided to add a 10%
strategic reserve to the development phase of the project.
Here are some calculations related to this project. Answer the
following 10 questions. You can use Microsoft Excel to do this work; however you
must show your answers and detailed calculations.
Part 2: Writing Assignment to explain the tradeoffs during the
life of development phase of the project. You will not perform any mathematical
calculations for this section of the Assignment. Conduct research to ensure
that you understand this concept of the project management triangle. Do not perform any calculations
for this portion.
• IT Project Timeline: 1
January 2016– - 31 March 2017
• 3 weeks of holiday
time is planned off during this timeline
• Do not forget the
concept of a leap year
• Assume vacation weeks
are not paid for the purpose of this problem, as vacation pay is paid and
allocated by a separate corporate budget funding source different from the IT
Project funding source
• If total weeks are
computed as a non-whole number of weeks, round to the nearest week
• Carry out items to the
thousands place for fractions (for example 1/3 = 0.333) prior to continuing
calculations, then round up or down as needed to whole numbers for final dollar
• 40 hour work week is
the standard contracted work week
• No overtime is allowed
to keep costs down
• 10 managers
• 100 union employees
• Manager salary is $100
• Union salary is $35
• Systems planning cost
• System development
cost is $1.5M
• System fielding cost
• System Maintenance (5
year contract, amortized, payments begin at project start) = $5.0M
• Strategic reserve,
when (if) applied to the timeline, should also be applied to the maintenance
costs during the timeframe of the timeline. However maintenance costs beyond
the timeline have been negotiated as a firm fixed priced contract and no longer
require the use of strategic reserve in addition to the negotiated price
Answer the following questions: (Show your work):
1How many work weeks
are in the project timeline, where work will actually occur?
2How much money does
the team cost per hour?
3How much money does
the team cost per week?
4How much money does
the team cost for the duration of the IT Project?
maintenance is amortized, and that payments begin during the first month of the
project, and that all other system costs are assigned to the project; what is
the total systems cost through the timeline completion on 31 March 2017?
6What is the total
project cost through completion on 31 March 2017?
completion on 31 March 2017, what will be the remainder cost for maintenance that
will still need to be budgeted and managed?
8Forecasting a budget
with no strategic reserve, what should the project cost per month be for the
budget during the project timeline?
9With the addition of a
ten % strategic reserve, what should the project cost per month be for the
budget during the project timeline?
Considering that you decide to budget using the strategic
reserve, and you need to budget for the entire maintenance cost, what is the
total amount of capital you will need to raise to complete the project
successful during the timeline, and then maintain the system through the full
five year maintenance contract, noting that the first month of maintenance for
the contract starts simultaneously with the start of the project?
Written Portion – Discussion of the project management triangle
An example situation:
The project manager has come to you with the following:
1Some of your employees
who will be using the system have suggested changes, which will end up
improving the system but will take longer to develop and implement. She feels
that they would be beneficial changes.
2Two of her developers
and one of her managers have left to work for another company. The company has
a hiring freeze so she is unable to replace them. This will most likely add
time to the project but it will also result in small savings in terms of labor
You are also the aware of the following information:
1When the budget was
approved there was a strategic reserve to allow for contingencies.
2You have some
additional discretionary funds which you were hoping to be able to use them for
bonuses for you employees at the end of the year.
3You have a lot of
faith in the project and believe that it will eventually improve the productivity
of your employees. He also realize that it will take time after the project is
fully implemented for this productivity to be realized and that there is a
likelihood that it will actually decrease for a couple of months while people
are learning the new system.
4You know that you have
a number of people in your department that are nearing retirement and are not
in favor of having to learn a new system.
To meet the requirements of this Assignment, write an APA style
paper in which you take the role
of manager to discuss the pros and cons of making any changes to the
plan regarding the initial goals of performance, cost, and schedule. For the
paper do not do any calculations. The facts presented are examples of the types
of situations that you might encounter. You do not have to address these
Limit your discussion to the tradeoffs among these three areas.
How do performance, cost, and schedule interact? Discuss the concept of the
project triangle, also called the triple constraint, or iron triangle.
Ensure you turn in your unit Project as a single Microsoft Word
document, in APA format, with a cover page and reference page citing at least
two online references on the unit concept topics and the eBook as a reference.
Your work should compose 2–3 pages of content (double spaced, 12 point Times
New Roman font).
This Assignment addresses the following outcomes:
- Describe the role manager’s play in integrating information
systems and information technology (IS/IT) within an organization.
- Solve business problems using information systems.
- Solve real-world problems using mathematical skills
Your paper must be double-spaced, Times New Roman, 12 pt. font,
and follow APA 6th edition format. You are required to include at least two references
using the appropriate APA format. A title page and a reference page are
Compose your Assignment in a Microsoft Word document.
The Book for
this class is called: -
Information Systems Supporting and Transforming Business ).
For (R. Kelly Rainer Jr.)
for downloading The Book is
The Reading for this
assignment is: -
9: “Social Computing”
10: “Information Systems Within the Organization”