Business Finance
Grantham WK3 Pre Initiation Activities Before Starting a Project Paper

Grantham University

Question Description

IT Project Management

Read the business case at Bertas_Pizza_Business_Case.docx
See the organization chart Bertas_and_HiFives_organization_charts.docx
Locate the project charter template charter.docx
Locate the project plan template Project Management Plan_template.docx

  1. What are the pre-initiation activities that need to take place before a project begins?
  1. Use the business case, organization chart, and the project charter template, to create a project charter.
  1. Use the project plan template to complete the “Overview” section of the Project management plan.
  1. Based on what you know about the project from the business case, and organization chart, what type of project management methodology would you use to manage it? Why?

Your paper should reflect scholarly writing and current APA standards. Please include citations to support your ideas.

Unformatted Attachment Preview

1 Berta’s Pizza Business Case 1.0 Introduction/Background Berta’s Pizza Shop consists of five locations in the city of Lawrence. Many restaurants in the city offer efficient carryout and delivery mobile/online ordering. Berta’s does not have an online ordering system. Customers cannot order from Berta’s menu via a mobile device or from Berta’s website. Customers must call Berta’s to order delivery or carryout. The current takeout/delivery order process is inefficient and negatively impacts Berta’s current and future revenue goals. 2.0 Business Objective Berta’s strategic goals are to increase customer loyalty, brand recognition, and revenue. The Berta’s mobile/online ordering system (BMOS) project will support these goals by facilitating food orders from mobile devices, and from the Berta’s Pizza website. A mobile/online ordering system will allow Berta’s to compete in the food carryout and delivery market. 3.0 Current Situation and Problem/Opportunity Statement Berta’s Pizza has five Lawrence locations, downtown, in the north-east, north-west, south-east, and south-west areas of the city. Berta’s current carry-out and delivery order process is inefficient. Customers may order pizza delivery from a Berta’s location that is further away than the Berta’s Pizza closest to the customer. The phone ordering process places customers on-hold until a current order has been taken. Ordering over the phone places the burden of order mistakes on the order takers. Customer loyalty has diminished since other pizza shops began offering mobile and online takeout and delivery orders. Additionally, revenue has decreased. The addition of a mobile/online ordering system will enable all orders to come into one system. The system can determine which Berta’s Pizza would be appropriate to fulfil the delivery orders based on the customer’s location, the status of the Berta’s locations, and the customer’s order. Customers will be able to order Berta’s menu option at will through mobile, or stationary devices. Customers will be able to register and create an account on Berta’s website and receive promotional offers. 4.0 Critical Assumptions and Constraints Berta’s mobile and online ordering capabilities must be available before the annual convention starting next year in July. Instead of building two applications, a mobile app, and a web app, only one web-based, device-responsive system is developed. The system must host 100 concurrent customers, and have data backup and automatic system recovery capabilities. The system must have security and access levels for customers, and Berta’s internal staff. Customer personally identifiable information (PII), and credit card information must be encrypted during transmission and while stored in Berta’s databases. A team from Hi Five Software will develop Berta’s online ordering system. The system must be hosted on the existing servers that host Berta’s current website. A project manager must manage this project. 2 5.0 Analysis of Options and Recommendation There are three options to consider: 1. Do nothing. Berta’s takeout and delivery comprise almost 80% of sales. We must facilitate ordering for these customers, and engender customer loyalty by offering promotions to customers who register on the website. 2. Purchase access to new servers to support this new capability, with Hi Five Software as developers and a project manager. 3. Use existing servers to support this new capability, with Hi Five Software as developers and a project manager. After consideration by stakeholders, option three was chosen. 6.0 Preliminary Project Requirements Description: Takeout and delivery customers may register to use the Berta’s Pizza website. Or, customers may order from the site without registering. Customers may choose multiple items from Berta’s menu for delivery or carryout. Customers can pay for their orders by the methods described in the requirements document (cash, credit, debit, and PayPal). Different website user roles will define a user’s level of website accessibility. Roles may be assigned to customers, Berta’s staff, website developers, and others. The order system will assign orders to Berta’s locations. An order will display on the takeout/delivery order web page at the Berta’s location assigned to fulfill the order. Internal users, on Berta’s staff, will have an accessibility role needed to update the menu. Another role will update orders as completed or canceled. 7.0 Budget Estimate and Financial Analysis A preliminary budget of $150,000 has is estimated for this project. This estimate is based on a project manager working 15 hours per week for six months, and software developers working 60 hours (2 developers, 30 hours each) for six months. The customer representatives from Berta’s Pizza will not be paid from the project budget. The hourly rate of the project manager is $55, and the hourly rate of the developers is $75. After project completion, a maintenance cost of 35,000 for the first year is included in the estimate. The projected benefits are established by an increase in takeout and delivery orders. More customer loyalty and satisfaction. A projected 30% increase in takeout and delivery orders translates to a 24% increase in orders and revenue. After one year, a $57,000 revenue increase per pizza shop is projected. Totaling $288,000 per year increased revenue, after one year. Exhibit A depicts the projected costs, benefits, estimated net present value (NPV), return on investment (ROI), and the year that payback occurs. The NPV is $502,740, based on a three-year projection. The discounted ROI is 209 percent. Exhibit A BMOS Financial Analysis 3 8.0 Schedule Estimate Berta’s Pizza expects the project to be completed before the annual convention in July next year. The size and complexity of the project indicate a six-month duration. 9.0 Potential Risks The main risk is the customers not using the mobile and online system for carryout and delivery orders. To mitigate this risk, Berta’s informs each customer who orders takeout or delivery by phone, of the mobile/online order system. Business risks are no increase in or lower customer loyalty and satisfaction, and no increase in or lower revenue. To mitigate these risks, the mobile and online ordering system is user-friendly, intuitive and easy to use, and defect free. 10.0 Exhibits Exhibit A: Financial Analysis for BMOS Project Berta’s Pizza Business Case Project Charter Project Title: Project Start Date: Budget Information: Projected Finish Date: Project Manager: Name, phone, e-mail Project Objectives: Main Project Success Criteria: Approach: Roles and Responsibilities Role Name Organization/ Position Contact Information Sign-off: (Signatures of all above stakeholders. Can sign by their names in table above.) Comments: (Handwritten or typed comments from above stakeholders, if applicable) Organization Charts Berta’s Pizza Berta's Pizza - Owner Jim Carr Store 1 Store 2 Store 3 Business representive Roy McMillan Business representative Nancy Cortez Business representative Tuan Nguyen Store 4 Business Representative - Mary Mulder Store 5 Business Representative - Tim Newsom Hi Five Software Hi Five Software CIO Tina Johnson PMO - Director Sue Wong Test Manager Sam Schultz Jim Breithaupt, PMP, ACP Marie Rainwater, Certified Scrum Master You Dennis Phillips Abdi Ahmed Carla Montana e-Commerce Manger - Gangan Grandhe Big Data Manager - Maurice Dillon Cyber Security Manager - Janet Settle Network Engineering Manager - Denise George Online Commerce Manager - Gangan Grandhe Requirements Analysist Gary Cook Software Architect Howard Aronson Software Developer Software Developer Martha Bell Alan Sunley Software Developer Michael Gardner Test Manager - Sam Schultz Test Engineer Kenneth May Test Engineer Anu Patel Test Engineer Johana Jones Software Developer Paula Mundy Software Develolper Evan Murray Project Management Plan I. Overview a. Project name: Every project should have a unique name, which helps distinguish each project and avoids confusion among related projects. b. Purpose: (write in layperson’s terms, avoid technical jargon) i. ii. iii. iv. c. Sponsor i. ii. iii. d. The goals of the project: Strategic reason for the project: Time estimate: (a rough estimate) Cost estimate: (a rough estimate) Name: Title: Contact information: Team Name Title Phone Email Xxxxx Xxxx Project manager / Project contact NNN-NNN-NNNN e. Deliverables i. Briefly list and describe the products that will be created as part of the project. Software packages, pieces of hardware, technical reports, and training materials are examples of deliverables. Product f. Description A list of important reference materials: reference and summarize important parts of: i. Scope management plan ii. Schedule management plan iii. Cost management plan iv. Quality management plan v. Human resource management plan vi. Communications management plan vii. Risk management plan viii. Procurement management plan ix. Stakeholder management plans plan g. A list of definitions and acronyms, if appropriate: Many projects, especially IT projects, involve terminology that is unique to a particular industry or technology. Providing a list of definitions and acronyms will help avoid confusion. Term Definition II. How the project is organized Organizational charts: a. (PASTE ORG CHARTS HERE) Organizational chart of the company sponsoring the project Organizational chart of the customer’s company Project organizational chart b. Project responsibilities: This section of the project plan should describe the major project functions and activities and identify the people responsible for them. A responsibility assignment matrix (described in Chapter 9) is often used to display this information. WBS activities  c. OBS activities 1.1 2.0 3.0 4.0 5.0 4.0 Business Analyst User Project manager Software engineer Hardware engineer Test engineer Integration management Quality assurance Configuration management Training III. Other organizational or process-related information: a. List documents major processes of the project. IV. Management and technical approaches a. Management objectives: It is important to understand top b. management’s view of the project, the priorities for the project, and any major assumptions or constraints. Project controls: This section describes how to monitor project progress and handle changes. Will there be monthly status reviews and quarterly progress reviews? Will there be specific forms or charts to monitor progress? Will the c. d. e. project use earned value management (described in Chapter 7) to assess and track performance? What is the process for change control? What level of management is required to approve different types of changes? (You will learn more about change control later in this chapter.) Risk management: This section briefly addresses how the project team will identify, manage, and control risks. This section should refer to the risk management plan, if one is required for the project. Project staffing: This section describes the number and types of people required for the project. It should refer to the human resource plan, if one is required for the project. Technical processes: This section describes specific methodologies a project might use and explains how to document information. For example, many IT projects follow specific software development methodologies or use particular Computer Aided Software Engineering (CASE) tools. Many companies or customers also have specific formats for technical documentation. It is important to clarify these technical processes in the project management plan. V. Work that needs to be performed a. Major work packages: A project manager usually organizes the project work into several work packages using a work breakdown structure (WBS) and produces a scope statement to describe the work in more detail. This section should briefly summarize the main work packages for the project and refer to appropriate sections of the scope management plan. b. Key deliverables: This section lists and describes the key products created as part of the project. It should also describe the quality expectations for the product deliverables. c. Other work-related information: This section highlights key information related to the work performed on the project. For example, it might list specific hardware or software to use on the project or certain specifications to follow. It should document major assumptions made in defining the project work. VI. Project schedule I. Summary schedule: It is helpful to have a one-page summary of the overall project schedule. Depending on the project’s size and complexity, the summary schedule might list only key deliverables and their planned completion dates. For smaller projects, it might include all of the work and associated dates for the entire project in a Gantt chart. For example, the Gantt chart and milestone schedule shown in Chapter 3 were fairly short and simple. II. Detailed schedule: This section provides more detailed information about the project schedule. It should reference the schedule management plan and discuss dependencies among project activities that could affect the project schedule. For example, this section might explain that a major part of the work cannot start until an external agency provides funding. A network diagram can show these dependencies (see Chapter 6, Project Time Management). III. Other schedule-related information: Many assumptions are often made when preparing project schedules. This section should document major assumptions and highlight other important information related to the project schedule. VII. Budget a. Summary budget: The summary budget includes the total estimate of the overall project’s budget. It could also include the budget estimate for each month or year by certain budget categories. It is important to provide some explanation of what these numbers mean. For example, is the total budget estimate a firm number that cannot change, or is it a rough estimate based on projected costs over the next three years? b. Detailed budget: This section summarizes the contents of the cost management plan and includes more detailed budget information. For example, what are the fixed and recurring cost estimates for the project each year? What are the projected financial benefits of the project? What types of people are needed to do the work, and how are the labor costs calculated? (SeeChapter 7, Project Cost Management, for more information on creating cost estimates and budgets.) c. Other budget-related information: This section documents major assumptions and highlights other important information related to financial aspects of the project. ...
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Final Answer

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IT Project Management


Institutional Affiliation




Pre-initiation activities which need to be taken before beginning a project

The necessary preparation is important before begging any project, this is to ensure that
there is no setback which might affect the success of the project. The pre-initiation level involves
identifying the reason for the project at the partner level and the project level. The preparation
process aims at ensuring that the project is completed to a high standard taking the provided time
and budget.

But taking that into consideration, taking time to prepare the project before it starts plays
a key role in its success. It is the high time for the involved stakeholders to understand the roles
of all the parties, what to do/ when to do it, and how to do it. The entire process needs to be
easily trackable so that any crucial adjustments can be made. Gauging the scope of the project
provides a detailed process of what to do. Once the scope of the project has been identified, a
plan can be adopted. It is also important to understand that the scope can change from time to
time depending on the demands of the stakeholders. The other thing to consider during the preinitiation process is setting the success criteria. How is the success of the project going to be
defined, the overall aim of the project, what the team is looking to achieve, are some of the
answers which need to be considered (Kerzner, 2013).

The factors which determine the success of the project have to be measurable and at the
same time reflecting the objectives of the main stakeholders. By setting and determining these
factors, the performance indicators of t...

NicholasI (28312)
UT Austin

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