Project Scenario:
Your group comprises the Information Technology and Services Department of a large vehicle
rental company. The company rents all sorts of vehicles including cars, light-duty trucks, vans,
SUVs, and small buses. There are over 25,000 vehicles in the fleet spread among more than 100
locations throughout the continental United States; each location typically has 200+ vehicles at
any given time.
Your company has an excellent database that tracks vehicle rentals, locations, vehicle
descriptions, whether a vehicle is operational or not, and the like. Your company also performs
the maintenance on its own vehicles and has vehicle maintenance histories integrated with this
database. There is a maintenance and repair facility at each rental location. All the record
keeping and reports have been well designed and work well.
As might be expected, the maintenance of such a fleet is a massive undertaking. The normal
scheduled maintenance represents a large investment of time and money and the on-the-road
breakdowns and repairs are significant costs as well. The CEO of the company is very
concerned about the rising maintenance costs and recently attended a large expo where the latest
technical hardware and software gadgets related to vehicle maintenance were on display.
On the Monday after her return, she called your team into her office. She was very excited about
all the things she had seen and had come up with a great idea to reduce fleet maintenance costs.
One of the demonstrations she attended included a real-time automated vehicle monitoring
system. The system consisted of on-board vehicle sensors that monitored things like oil
pressure, engine temperature, tire pressure, coolant level, brake quality, emissions, and many
other things including oil quality. She thinks this technology is the basis for a solution to
considerably reduce maintenance costs – even the savings generated by only having to change
the oil when it was really needed versus every 3000 miles would be tremendous! In addition to
that, the ability to monitor many aspects of each vehicle’s condition should produce a big
reduction in breakdown calls. She knows there would still have to be some scheduled
maintenance (like tire rotations) but the capability to perform on-demand maintenance has the
potential to produce significant cost savings. The more she talked the more excited she became!
Your team thinks this is a great idea but you are a bit concerned about the technological
details. You want to know if this on-demand maintenance system should be integrated with the
scheduled maintenance system; she says she doesn’t care but it might be helpful to the overall
operation if it was. You want to know if the sensors to read the real-time data from the vehicles
should be put in some sort of “sensor arch” that the vehicles have to drive through, or whether
the information should be transmitted such that it is available to the maintenance facility
whenever the vehicle is anywhere on the lot, or even if the information should be available
wherever the vehicle is (and perhaps integrated with a GPS tracking system as well); she says
she doesn’t care. You want to know if the system should be sophisticated enough to try to tell
XXX Project Cost Estimate
Prepared by:
Date:
Note: Change the WBS items and other entries to meet your project needs.
Also make sure the formulas work properly based on the data you enter.
# Units/Hrs. Cost/Unit/Hr.
WBS Items
1. Project Management
1.1 Project manager
960
$100
1.2 Project team members
1920
$75
Contractors (10% of software development and testing)
2. Hardware
2.1 Handheld devices
100
$600
2.2 Servers
4
$4,000
3. Software
3.1 Licensed software
100
$200
3.2 Software development*
4. Testing (10% of total hardware and software costs)
5. Training and Support
5.1 Trainee cost
100
$500
5.2 Travel cost
12
$700
5.3 Project team members
1920
$75
6. Reserves (20% of total estimate)
Total project cost estimate
* See software development estimate
Subtotals
WBS Level 1 Totals % of Total
$306,300
20%
$76,000
5%
$614,000
40%
$69,000
$202,400
5%
13%
$253,540
$1,521,240
17%
$96,000
$144,000
$66,300
$60,000
$16,000
$20,000
$594,000
$69,000
$50,000
$8,400
$144,000
$253,540
* Software development
Contractor labor estimate
Project team member estimate
Total labor estimate
Function point estimate
External inputs
External interface files
External outputs
External queries
Logical internal tables
Total function points
Java 2 languange equivalency value
Source lines of code (SLOC) estimate
Productivity *KSLOC^Penalty (person months)
Total labor hours (160 hours/month)
Cost/labor hour ($120/hour)
Total software development estimate
3000
1920
$150
$75
Quantity Conversion Factor
10
4
3
7
3
5
3
4
6
10
30.27
4,842.55
$120
581,106
$450,000
$144,000
$594,000
Function Points
40
21
15
12
60
148
46
6,808
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