Cost Management Plan: Develop a cost plan for your project that identifies the allocation and cost of resources for your project. This estimate is applied across the calendar, making a budget that the finance department must know about so they can ensure the funds are available. Estimating the cost of each activity within each work package is the most accurate way. After performing bottom-up addition, see if your estimate meets the constraint allocated by upper management for the project. If not, you must either negotiate for more money or reduce quality or scope to ensure it is realistic to complete the project as defined with the funds available.
“McBride Financial Services is a start-up regional mortgage lender
headquartered in Boise, Idaho. The firm will specialize in conventional, FHA,
and VA loans for home purchasing and refinancing” (University of Phoenix,
2013). Based on the transcript of the
conversation between Hugh McBride (HM), of McBride Financial Services and Abram
LaBelle (AL) of Smith Systems Consulting discussing the computer network needed
for McBride’s planned offices, the company intends to expand its operations
into eight locations. The first
locations will be located in Boise, Idaho, and Sioux Falls, South Dakota, with
the Boise location identified as the McBride Financial Services home
office. There will also be two
additional facilities in North Dakota, two more in Wyoming, one in Montana and
an additional facility in Rapid City, South Dakota.
Methodology and Business Case
Often, construction and multiple geographic locations introduce a
dynamic and risky element to the process.
McBride Financial Services will sequence the installations in a phased
approach to make the most efficient use of manpower and resources and reduce
program risk. As the (Lee, et. al, 2006)
article illustrates, “construction projects are inherently complex and dynamic,
involving multiple feedback processes and nonlinear relationships” (p. 84). To address this issue, the first two
installations will occur simultaneously with the main headquarters at the
Boise, Idaho, as one location and the other at the Sioux Falls, South Dakota,
locale. There will be a programmed pause
after the initial two installations to provide an opportunity to conduct
lessons learned, refine the process, and train the installation teams. Subsequent installations will occur in pairs
over a six month period to allow time for final site preparations at each of
the proposed locations. The desired goal
is a fully functional information system at each of the eight McBride Financial
Services locations within one year.
financial service has a goal of being the premier one stop mortgage company in
five states. This goal has led to the
decision to expand and grow to eight more businesses opening up. What this report will do is give a brief
history of the company and their mission, and provide a look at who the primary
stakeholders will be and the plan for each office.
as a company is known for the ability to provide homeowners with the ability to
stay with one company through the entire process of buying or selling a
home. Staying on the cutting edge of
technology for the industry has proven well for McBride. This has helped them
to complete their mission of providing fast and effective way to process
to "Project Stakeholder Management" (n.d.), A project’s stakeholders
are defined as “any person or organization that is actively involved in a
project, or whose interests may be positively or negatively affected by
execution or completion of the project” (Definition of Project Stakeholders). The
primary stakeholder in this business plan is Hugh McBride the owner of this
company. The secondary stakeholder will
be the brokers at each office. The project management team will ensure each
stakeholder has an equal voice in the execution of the project. As Karlson (2002), illustrates in his article
Project Stakeholder Management, each
stakeholder will have his or her own interest in the project that may cause
different priorities and conflicts. To mitigate those conflicts and balance the
various stakeholder priorities, the program manager will ensure active
stakeholder participation in the program process. Each site broker will have a large role in
the company because of them being the primary expense and the primary income,
so hiring well-qualified people will be a main goal for McBride to accomplish.
goal for McBride is to open up eight offices for financial services in in
Idaho, North Dakota, South Dakota, Montana, and Wyoming. The Idaho office will be the main office with
the others reporting to Idaho. Staffing
goals are that the main office will staff the administrative assistants that
will handle the necessary paper work.
All other offices will have two to three brokers that will handle all
the services in that region.
The overall goal of the project is to have eight offices McBride Financial
Services all computer-networked for provision of conventional, FHA, and VA
loans for home purchasing and refinancing services. The main stakeholders of
the project are McBride Financial Services and Smith Systems Consulting Company
together with the employees. It is expected that the sequence outlined for
installation purposes and the time assigned will be adequate for the project.
The project should be complete within a year. It is also assumed that the staff
will be able and willing to adjust to the new information system after the
first training. As Steinberg (1989) illustrates, “a charter is a written
description of the means by which stated responsibilities will be carried out”
(Steinberg, 1989, p. 12). For McBride
Financial Services, the project responsibilities are divided such that McBride
Financial Services provides the funds for execution while Smith Systems
Consulting will provide the labor and the technical knowhow as well as train
McBride’s staff on the information system. The overall project is expected to
cost approximately $1 million. While the schedules and timelines have been set,
there is a risk of delays due to the importation of some of the equipment that
may require more shipping time and risk of default by different suppliers. A
monitoring program for the project is in place and there are milestones set
that aim at evaluating the progress at each stage.
Work Breakdown Structure
The Work Breakdown
Structure (WBS) is a hierarchical structure of the work that needs to be done
to make the project a reality.
Marchewka, J. T. (2009, p.154), states, “The WBS also provides a bridge
or link between the project’s scope and the detailed project plan that will be
entered into a project management software package”. The consultants for the project will be using
Microsoft Project to create the WBS.
They will be producing charts and reports as part of the deliverables
for submission at the status meetings with Hugh McBride at regularly intervals
once the project begins. The WBS is an
iterative process that will be revised several times before the sponsor signs
off on it.
The WBS is a logical
decomposition of the project plan. The
highest level with the Unique WBS code one beside it is the Computer Network
which is the end result of the project.
Level two is broken down into five phases; the Business Case, Project
Charter and Plan, Execute and Control, Close Project, and Evaluate
Project. Each phase is further
sub-divided into specific activities and important deliverables. The Execute and Control phase is the most
in-depth of the phases and shows the sub-phases of analysis, design,
construction, testing, and implementation.
Each sub-phase is broken down into more detail activities. The lowest levels represent work packages
which comprise all the work necessary for completion of that
sub-deliverable. The WBS is therefore,
the groundwork for determining the cost and schedule of the project.
Schedule Management Plan
A stakeholder is
anyone who will benefit from the success or failure of a project. McBride Financials are trying to carve out a
share of the real estate market for themselves.
The successful outcome of this project will help the company gain a
substantial foothold in the market. Its
failure, however, will be a win for their competitors. The major stakeholders in this project are
Hugh McBride, Smith Systems Consulting, the employees of McBride Financial
Services, and the vendors they will be procuring goods and services from. Select members of the various groups will
participate in the various stages. The
project charter and project plan identifies who these individuals are and their
roles and responsibilities.
A stakeholder analysis helps the project manager in determining
who to assign to certain tasks. Marchewka, J. T. (2009, p. 110) suggests
“one may start with the published organizational chart and then add to it as
the complexities of the informal organization become known.” Important
stakeholders are those who will provide resources to the project. As the
sponsor of the project, Hugh McBride will only participate in the project at a
high level but will be very influential sustaining it. The list should also include both those who
would benefit from the successful outcome of the project and also those who
would benefit from its failure.
The analysis process
continues with indicating the stakeholders’ interest by putting relevant
notations beside them; positive, negative, neutral, questionable. Next note the level of influence each
stakeholder has on the project by using a range of values to represent
extremely high influence through to no influence in the decision-making
process. Another critical step in the
analysis process involves assessing the risk of conflicts between certain
individuals or groups. At this point it
should be easier to start labeling the individuals with their respective roles
such as sponsor and product owner, consultants, and organization champion along
with their objectives. Finally, Marchewka,
J. T. (2009, p. 111) suggests outlining strategies for the stakeholders
relationships. Understanding who the
players are and the role each fills is vital in fostering good working
relationships between the different sets of stakeholders.
Communication Management Plan
communication management plan is a change management tool important in the
management of any project and vital in ensuring desired behaviors.
Communication involves the deliverance of relevant and clear message between
project parties so as to ensure the objectives of the project are met (Letavec,
Rollins, & Altwies, 2008). The
main objective of communication is to facilitate a two-way information flow and
to make use of the dialogue in channeling efforts in the right direction so as
to meet the set objectives.
main elements of a communication management plan include: Date, Name of
stakeholder, title of stakeholder, the type of information required, frequency
at which it is required, team member responsible for compiling the information
and the delivery channel to be used. These entries ensure there is consistency
and information needs are well documented (Letavec, Rollins, & Altwies, 2008). It
also ensures that the implementers are aware of the needed information and
communicates with the stakeholders in good time to promote project efficiency.
It should ideally be developed at the design phase of the project before
commencement of the project activities so as to be used regularly and
consistently. Through a communication plan, channels of communication to
different stakeholders are set out. For example, Smith Systems will be aware of
what information is needed when and what channels are to be used in delivering
this information to Mcbride Financial Services.
Quality Management Plan
effective quality management plan must ensure that both the product and process
meets the customer’s needs. McBride
Financial Services looks at quality management as a holistic endeavor and
embraces the functionality found in established standards, such as Lean Six
Sigma illustrated in figure one. All
projects managed by McBride financial Services will ensure Black Belt certified
personnel are available in support of the project and Green Belt certified
staff are assigned to each project. This creates an environment that, as
Wagner, (1997) illustrates in his article Total
Quality Management: A Plan for Optimizing Human Potential? “it
becomes very important to monitor the system and to constantly seek ways for
further improvement. Making the system better is the essence of a quality
organization” (Wagner, 1997, p. 243).
McBride Financial Services accomplished this with a robust approach
toward a culture dedicated to the elimination of waste within the organization’s
The scope of the McBride Financial Services expansion
includes building modification and information system infrastructure
development. In order to ensure the
implementation effort at the various locations are standardized, McBride
Financial Services will comply with the ISO 9001:2008 certification
standards. The is largely due to the
fact the ISO 9001:2008 sets the criteria for a quality management system and
can be certified to, providing McBride Financial Services with a certified
quality management system.
In line with the inherent controls and audits compliance
with the ISO 9001:2008 provides, McBride Financial Services will be tracking
the key project milestones of network design, installation of network cables,
hardware procurement, hardware setup, and implementation with specific entry
and exit criteria for each event at each physical location. McBride Financial Services’ designated
project managers and local site managers will approve documentation to initiate
entrance or exit milestones and ensure the program remains within the proposed
$1 million budget.
Risk Management Plan
Cost Management Plan