Running Head: COST MANAGEMENT AND COST SCHEDULE
Cost Management and Cost Schedule
Kevin Moseley
GM 592
Dr. Fleming
12/24/2018
1
COST MANAGEMENT AND COST SCHEDULE
2
Table of Contents
Table of Contents ............................................................................................................................ 2
Introduction ..................................................................................................................................... 3
Cost Management Plan ................................................................................................................... 3
Cost Baseline .................................................................................................................................. 4
Conclusion ...................................................................................................................................... 6
References ....................................................................................................................................... 7
COST MANAGEMENT AND COST SCHEDULE
3
Introduction
With the planning of the Cost management and Cost Scheduling for the Ryder-Pepsi
Warehouse Project, the cost estimates, the sources of funding, controlling, and managing all the
cost attributed to the project will be integrated within a budget (Kerzner, 2018). The cost
management and cost schedule will enable the project team to set the procedures and policies for
documenting the process of ensuring that the project is implemented within its cost constraints.
The Cost Management and Cost schedule will outline the costs of the Ryder-Pepsi Warehouse
Project from the beginning to the end to facilitate cost budgeting, cost control, cost estimating
throughout the lifecycle of the project.
The Project Manager will be accountable for presenting all reports of the project’s cost
until the completion of the project. The Project Manager will also update the Pepsi managers and
executives on the status of the cost management and performance of the project. Reports will be
sent out weekly to recap the previous week and to forecast the cost and expectations for the next
week.
Cost Management Plan
The Cost Management Plan for the Ryder-Pepsi Warehouse Project will cover cost
definition of each element of cost to be incurred, the cost baseline, and the mode of managing all
the costs throughout the lifecycle of the project. The short deadline means that the project must
be implemented within the costs constraints (Harrison & Lock, 2017). While the total costs of
the project stand at $242,550, the other costs relating to equipment, material, and other
components have also been factored into this total costs. The WBS was used as the baseline for
apportioning these cost while work will run from Monday to Friday with a break of two days of
COST MANAGEMENT AND COST SCHEDULE
4
the weekend. Every cost element is estimated in US dollars and rounded off to the nearest 0.1 of
a dollar.
The cost management plan will help the manager to keep the cost of the project under
their control and ensure effective utilization of all the resources. It will also restrict the
implementation within the cost constraints to achieve better and quality performance. In order to
ensure that the cost management plan serves the interests of all stakeholders in the project, they
must be developed in the creation of the plan to ensure active participation in its implementation
through the project lifecycle.
Cost Baseline
The cost baseline provides the process to be used to subject the costs of the project to
control and minimize any changes to the costs to an acceptable level. A change control board
will be set to approve any changes in the cost to avoid possible interference with the project
deliverable (Kerzner & Kerzner, 2017). The project sponsor will then adopt the changes and then
document the changes for future reference. Formal requests will be made for each deliverable to
facilitate cost management and control. Below is a cost baseline that would be used for the
purpose of the project.
Using the cost baseline, the project managers will create a time-phased budget that is
effective in monitoring and measuring the performance of every costs element in the project as it
progresses through its lifecycle. There would be a provision for contingency costs to cater for
the unidentifiable costs elements attributed to the implementation of the project.
COST MANAGEMENT AND COST SCHEDULE
Resource
Name
Ordering
Signage and
Decals
Ordering
Forklifts,
Walkies,
Recharge
Stations, and
Battery
Setting
Internet
Networks
and Phones
Hiring and
Converting
Current
Associates
Installing
TV’s,
Printers, and
Computers
Purchasing
Two
Switcher
Trucks
Purchasing
Two
Miscellaneou
s Office
Supplies
Installing
Punch In/Out
machine
Safety
1 Project
Manager
2
Facilities
3
Information
Technology
4 Human
Resource
5
5
Safety
Team
Total
Hourly
Rate
Total
Estimated
Cost
$650.00
50 520
80
$50.00
$32,500
$140.0
0
$29,400
$20.00
$3,200
$40.00
$8,800
$10.00
$6,000
$60.00
$90,000
$20.00
$10,000
$30.00
$80.00
$6,900
$32,000
$210.00
80
70
60
$160.00
80
80
$220.00
90
50
80
$600.00
600
$1500.0
0
600
700
$500.00
500
$230.00
100
50
80
400
$400.00
COST MANAGEMENT AND COST SCHEDULE
Equipment
Mobile
Scanners
Hiring Thirdparty
Security
Company
Hiring
Janitorial
Staff
TOTALS
6
200
$200
$15
$3,000
$10
500
300
600
1230
250
$800
$8,000
$15
1300
300
630
980
$6320
$12,750
$242,550
Conclusion
In conclusion, the cost management and costs schedule for the Ryder-Pepsi Warehouse
Project will provide a detailed cost management plan on how to implement the project within the
cost constraints. It is for this reason that holidays that fall within the project schedule were
negotiated for between the project managers and the stakeholders to ensure that the project does
not go beyond the scheduled duration. In addition, costs relating to the project implementation
was calculated on an hourly rate and there is no anticipated escalation in costs within the
scheduled timeframe of the project.
COST MANAGEMENT AND COST SCHEDULE
References
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Kerzner, H. (2018). Project management best practices: Achieving global excellence. John
Wiley & Sons.
Larson, E. W., & Gray, C. F. (2015). A Guide to the Project Management Body of Knowledge:
PMBOK (®) Guide. Project Management Institute.
7
Unit 3 [GM592]
Unit 3 Assignment: Cost Management__________
In this Assignment, you will be assessed based on the following outcome:
GM592-3: Plan cost management with associated resources.
This Assignment is designed to evaluate your ability to create a cost management plan
and the cost baseline for the project that you select. You will take the role of the project
manager. This effort requires that you research, organize, and present project financial
data in a manner that makes sense to the appropriate stakeholder.
Here are the requirements:
● You will use the project from the Unit 1 Assignment for the Unit 3 Assignment.
● Create a Cost Management Plan for the project you selected in Unit 1.
● Create the Cost Baseline for the selected project.
● Please go to the internet for templates or documents that can help you meet the
requirements.
● The templates or documents that you use must meet all criteria specified in the
grading rubric below.
Components
●
Title page formatted in APA 6th edition style with the following information: Title
of the paper, your name, course number and section number, and date.
● A table of contents using the following headers: Introduction, Cost Management
Plan, Cost Baseline, Conclusion, and References.
● A minimum of three scholarly journal and textbook source references cited and
credited according to APA 6th edition formatting style using a minimum of six intext citations.
● The paper should be focused and to the point, containing between 600–800
words specific to the table of content items (excluding references).
Directions for Submitting your Assignment:
To submit your Unit 3 Assignment, upload all Assignment documents to the Unit 3
Assignment Dropbox. Make sure that you have saved a copy of each of the files you
submit for this Assignment.
Page 1 of 2
Unit 3 [GM592]
GM592 Unit 3 Assignment: Cost Management
Points
Possible
Points
Earned
Content (0-50 points)
1. Cost Management Plan
Includes the units of measure.
Includes the level of precision.
Includes the level of accuracy.
Discusses the organizational procedures links.
Includes the control thresholds.
Discusses the rules of performance measurement.
Provides the reporting formats.
Includes additional details as necessary.
2. Cost Baseline
Reflects costs based on the work packages in the WBS.
Costs are displayed for a project of at least 3 months.
Totals are provided based per WBS item and per month.
Analysis (20 points)
Response exhibits strong higher-order critical thinking and
analysis (e.g., evaluation). Paper shows original thought.
Analysis includes proper classifications, explanations,
comparisons and inferences.
Critical thinking includes appropriate judgments, conclusions
and assessment based on evaluation and synthesis of
information.
Writing (15 points)
Grammatical skills are strong with typically less than one error
per page. Correct use of APA 6th edition.
Appropriate to the Assignment, fresh (interesting to read),
accurate, (no far-fetched, unsupported comments), precise (say
what you mean), and concise (not wordy).
Paper is in 12-point font, and double-spaced with a double
space between. Paper is free of serious errors; grammar,
punctuation, and spelling help to clarify the meaning by
following accepted conventions. At least three scholarly journal
and textbook sources are cited and referenced in APA 6th
edition format. Content is between 600–800 words specific to
the table of content items (excluding references).
Total
25
25
7
7
6
5
5
5
85
Page 2 of 2
ProjectManagementDocs.com
PROJECT COST MANAGEMENT PLAN TEMPLATE
This Project Management Plan Template is free for you to copy and use on your project
and within your organization. We hope that you find this template useful and
welcome your comments. Public distribution of this document is only permitted
from the Project Management Docs official website at:
ProjectManagementDocs.com
COST MANAGEMENT PLAN
COMPANY NAME
STREET ADDRESS
CITY, STATE ZIP CODE
DATE
1
ProjectManagementDocs.com
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................... 3
COST MANAGEMENT APPROACH ............................................................................................................ 3
MEASURING PROJECT COSTS .................................................................................................................. 4
REPORTING FORMAT............................................................................................................................. 6
COST VARIANCE RESPONSE PROCESS ....................................................................................................... 6
COST CHANGE CONTROL PROCESS ........................................................................................................... 6
PROJECT BUDGET ................................................................................................................................. 6
2
ProjectManagementDocs.com
INTRODUCTION
The Cost Management Plan clearly defines how the costs on a project will be managed
throughout the project’s lifecycle. It sets the format and standards by which the project costs
are measured, reported and controlled. The Cost Management Plan:
• Identifies who is responsible for managing costs
• Identifies who has the authority to approve changes to the project or its budget
• How cost performance is quantitatively measured and reported upon
• Report formats, frequency and to whom they are presented
The Project Manager will be responsible for managing and reporting on the project’s cost
throughout the duration of the project. During the monthly project status meeting, the Project
Manager will meet with management to present and review the project’s cost performance for
the preceding month. Performance will be measured using earned value. The Project Manager
is responsible for accounting for cost deviations and presenting the Project Sponsor with
options for getting the project back on budget. The Project Sponsor has the authority to make
changes to the project to bring it back within budget.
COST MANAGEMENT APPROACH
This section you explain your approach to cost management for your project.
We chose to create Cost Accounts at the fourth level of the WBS as an example since many
project management offices don’t have a Project Management Information System. If you are
using a Project Management Information System then you can, and should, manage costs down
to the work package level. For those who don’t have a Project Management Information
System you’ll want to determine which level of the WBS you can most effectively manage the
project’s costs from. The further down in the WBS you go, the more detailed your cost
management is. However, you should balance the granularity at which you want to manage
costs against the amount of effort it takes to manage at that level. The more granular your cost
management, the more work is necessary to manage it.
Costs for this project will be managed at the fourth level of the Work Breakdown Structure
(WBS). Control Accounts (CA) will be created at this level to track costs. Earned Value
calculations for the CA’s will measure and manage the financial performance of the project.
Although activity cost estimates are detailed in the work packages, the level of accuracy for cost
management is at the fourth level of the WBS. Credit for work will be assigned at the work
package level. Work started on work packages will grant that work package with 50% credit;
whereas, the remaining 50% is credited upon completion of all work defined in that work
3
ProjectManagementDocs.com
package. Costs may be rounded to the nearest dollar and work hours rounded to the nearest
whole hour.
Cost variances of +/- 0.1 in the cost and schedule performance indexes will change the status of
the cost to cautionary; as such, those values will be changed to yellow in the project status
reports. Cost variances of +/- 0.2 in the cost and schedule performance indexes will change the
status of the cost to an alert stage; as such, those values will be changed to red in the project
status reports. This will require corrective action from the Project Manager in order to bring
the cost and/or schedule performance indexes below the alert level. Corrective actions will
require a project change request and be must approved by the Project Sponsor before it can
become within the scope of the project.
MEASURING PROJECT COSTS
This section defines how the project’s costs will be measured. The PMBOK focuses on Earned
Value Management for measuring and controlling a project’s costs. Earned Value Management
is a broad and powerful tool; as such, we recommend that all project managers take some
formal courses in Earned Value Management.
In this section you should detail how you will measure the project costs. What Earned Value
measurements will be captured and reported upon. Will you use any tools, such as project
management software, to assist in capturing Earned Value metrics? How will you forecast
future project costs? Will you review cost performance over time, across work packages or
schedule activities?
Our example in this section measures four Earned Value measurements; Schedule Variance
(SV), Cost Variance (CV), Schedule Performance Index (SPI) and Cost Performance Index (CPI).
For most typical projects these four measurements can provide enough insight for effective
management without overburdening the Project Manager with Earned Value calculations and
measurements.
Schedule Variance (SV) is a measurement of the schedule performance for a project. It’s
calculated by taking the Earned Value (EV) and subtracting the Planned Value (PV). Since EV is
the actual value earned in the project and the PV is the value our project plan says we should
have earned at this point, when we subtract what we planned from the actual we have a good
measurement which tells us if we are ahead or behind the baseline schedule according to our
project plan. If SV is zero, then the project is perfectly on schedule. If SV is greater than zero,
the project is earning more value than planned thus it’s ahead of schedule. If SV is less than
zero, the project is earning less value than planned thus it’s behind schedule.
4
ProjectManagementDocs.com
Cost Variance (CV) is a measurement of the budget performance for a project. CV is calculated
by subtracting Actual Costs (AC) from Earned Value (EV). As we already know, EV is the actual
value earned in the project. AC is the actual costs incurred to date, thus when we subtract
what our actual costs from the EV we have a good measurement which tells us if we are above
or below budget. If CV is zero, then the project is perfectly on budget. If CV is greater than
zero, the project is earning more value than planned thus it’s under budget. If CV is less than
zero, the project is earning less value than planned thus it’s over budget.
Schedule Performance Index (SPI) measures the progress achieved against that which was
planned. SPI is calculated as EV/PV. If EV is equal to PV the value of the SPI is 1. If EV is less
than the PV then the value is less than 1, which means the project is behind schedule. If EV is
greater than the PV the value of the SPI is greater than one, which means the project is ahead
of schedule. A well performing project should have its SPI as close to 1 as possible, or maybe
even a little under 1.
Cost Performance Index (CPI) measures the value of the work completed compared to the
actual cost of the work completed. CPI is calculated as EV/AC. If CPI is equal to 1 the project is
perfectly on budget. If the CPI is greater than 1 the project is under budget, if it’s less than 1
the project is over budget.
Performance of the project will be measured using Earned Value Management. The following
four Earned Value metrics will be used to measure to projects cost performance:
• Schedule Variance (SV)
• Cost Variance (CV)
• Schedule Performance Index (SPI)
• Cost Performance Index (CPI)
If the Schedule Performance Index or Cost Performance Index has a variance of between 0.1
and 0.2 the Project Manager must report the reason for the exception. If the SPI or CPI has a
variance of greater than 0.2 the Project Manager must report the reason for the exception and
provide management a detailed corrective plan to bring the projects performance back to
acceptable levels.
Performance Measure
Schedule Performance Index (SPI)
Cost Performance Index (CPI)
5
Yellow
Between 0.9 and 0.8 or
Between 1.1 and 1.2
Between 0.9 and 0.8 or
Between 1.1 and 1.2
Red
Less Than 0.8 or Greater
than 1.2
Less Than 0.8 or Greater
than 1.2
ProjectManagementDocs.com
REPORTING FORMAT
Reporting for cost management will be included in the monthly project status report. The
Monthly Project Status Report will include a section labeled, “Cost Management”. This section
will contain the Earned Value Metrics identified in the previous section. All cost variances
outside of the thresholds identified in this Cost Management Plan will be reported on including
any corrective actions which are planned. Change Requests which are triggered based upon
project cost overruns will be identified and tracked in this report.
COST VARIANCE RESPONSE PROCESS
This section of the Cost Management Plan defines the control thresholds for the project and
what actions will be taken if the project triggers a control threshold. As a part of the response
process the Project Manager typically presents options for corrective action to the Project
Sponsor who will then approve an appropriate action in order to bring the project back on
budget. The Project Manager may propose to increase the budget for the project, reduce
scope or quality, or some other corrective action.
The Control Thresholds for this project is a CPI or SPI of less than 0.8 or greater than 1.2. If the
project reaches one of these Control Thresholds a Cost Variance Corrective Action Plan is
required. The Project Manager will present the Project Sponsor with options for corrective
actions within five business days from when the cost variance is first reported. Within three
business days from when the Project Sponsor selects a corrective action option, the Project
Manager will present the Project Sponsor with a formal Cost Variance Corrective Action Plan.
The Cost Variance Corrective Action Plan will detail the actions necessary to bring the project
back within budget and the means by which the effectiveness of the actions in the plan will be
measured. Upon acceptance of the Cost Variance Corrective Action Plan it will become a part
of the project plan and the project will be updated to reflect the corrective actions.
COST CHANGE CONTROL PROCESS
Typically the change control process follows the project change control process. If there are
special requirements for the cost change control process, they should be detailed in this
section.
The cost change control process will follow the established project change request process.
Approvals for project budget/cost changes must be approved by the project sponsor.
PROJECT BUDGET
The budget for this project is detailed below. Costs for this project are presented in various
categories...
Fixed Costs:
$xxx,xxx.xx
6
ProjectManagementDocs.com
Material Costs
Contractor Costs
Total Project Cost
$xxx,xxx.xx
$xxx,xxx.xx
$xxx,xxx.xx
Management Reserve $x,xxx.xx
7
ProjectManagementDocs.com
SPONSOR ACCEPTANCE
Approved by the Project Sponsor:
__________________________________________
Date: ___________________
This free Project Cost Management Plan Template is brought to you by
www.ProjectManagementDocs.com
8
Running Head: COST MANAGEMENT AND COST SCHEDULE
Cost Management and Cost Schedule
Kevin Moseley
GM 592
Dr. Fleming
12/24/2018
1
COST MANAGEMENT AND COST SCHEDULE
2
Table of Contents
Table of Contents ............................................................................................................................ 2
Introduction ..................................................................................................................................... 3
Cost Management Plan ................................................................................................................... 3
Cost Baseline .................................................................................................................................. 4
Conclusion ...................................................................................................................................... 6
References ....................................................................................................................................... 7
COST MANAGEMENT AND COST SCHEDULE
3
Introduction
With the planning of the Cost management and Cost Scheduling for the Ryder-Pepsi
Warehouse Project, the cost estimates, the sources of funding, controlling, and managing all the
cost attributed to the project will be integrated within a budget (Kerzner, 2018). The cost
management and cost schedule will enable the project team to set the procedures and policies for
documenting the process of ensuring that the project is implemented within its cost constraints.
The Cost Management and Cost schedule will outline the costs of the Ryder-Pepsi Warehouse
Project from the beginning to the end to facilitate cost budgeting, cost control, cost estimating
throughout the lifecycle of the project.
The Project Manager will be accountable for presenting all reports of the project’s cost
until the completion of the project. The Project Manager will also update the Pepsi managers and
executives on the status of the cost management and performance of the project. Reports will be
sent out weekly to recap the previous week and to forecast the cost and expectations for the next
week.
Cost Management Plan
The Cost Management Plan for the Ryder-Pepsi Warehouse Project will cover cost
definition of each element of cost to be incurred, the cost baseline, and the mode of managing all
the costs throughout the lifecycle of the project. The short deadline means that the project must
be implemented within the costs constraints (Harrison & Lock, 2017). While the total costs of
the project stand at $242,550, the other costs relating to equipment, material, and other
components have also been factored into this total costs. The WBS was used as the baseline for
apportioning these cost while work will run from Monday to Friday with a break of two days of
COST MANAGEMENT AND COST SCHEDULE
4
the weekend. Every cost element is estimated in US dollars and rounded off to the nearest 0.1 of
a dollar.
The cost management plan will help the manager to keep the cost of the project under
their control and ensure effective utilization of all the resources. It will also restrict the
implementation within the cost constraints to achieve better and quality performance. In order to
ensure that the cost management plan serves the interests of all stakeholders in the project, they
must be developed in the creation of the plan to ensure active participation in its implementation
through the project lifecycle.
Cost Baseline
The cost baseline provides the process to be used to subject the costs of the project to
control and minimize any changes to the costs to an acceptable level. A change control board
will be set to approve any changes in the cost to avoid possible interference with the project
deliverable (Kerzner & Kerzner, 2017). The project sponsor will then adopt the changes and then
document the changes for future reference. Formal requests will be made for each deliverable to
facilitate cost management and control. Below is a cost baseline that would be used for the
purpose of the project.
Using the cost baseline, the project managers will create a time-phased budget that is
effective in monitoring and measuring the performance of every costs element in the project as it
progresses through its lifecycle. There would be a provision for contingency costs to cater for
the unidentifiable costs elements attributed to the implementation of the project.
COST MANAGEMENT AND COST SCHEDULE
Resource
Name
Ordering
Signage and
Decals
Ordering
Forklifts,
Walkies,
Recharge
Stations, and
Battery
Setting
Internet
Networks
and Phones
Hiring and
Converting
Current
Associates
Installing
TV’s,
Printers, and
Computers
Purchasing
Two
Switcher
Trucks
Purchasing
Two
Miscellaneou
s Office
Supplies
Installing
Punch In/Out
machine
Safety
1 Project
Manager
2
Facilities
3
Information
Technology
4 Human
Resource
5
5
Safety
Team
Total
Hourly
Rate
Total
Estimated
Cost
$650.00
50 520
80
$50.00
$32,500
$140.0
0
$29,400
$20.00
$3,200
$40.00
$8,800
$10.00
$6,000
$60.00
$90,000
$20.00
$10,000
$30.00
$80.00
$6,900
$32,000
$210.00
80
70
60
$160.00
80
80
$220.00
90
50
80
$600.00
600
$1500.0
0
600
700
$500.00
500
$230.00
100
50
80
400
$400.00
COST MANAGEMENT AND COST SCHEDULE
Equipment
Mobile
Scanners
Hiring Thirdparty
Security
Company
Hiring
Janitorial
Staff
TOTALS
6
200
$200
$15
$3,000
$10
500
300
600
1230
250
$800
$8,000
$15
1300
300
630
980
$6320
$12,750
$242,550
Conclusion
In conclusion, the cost management and costs schedule for the Ryder-Pepsi Warehouse
Project will provide a detailed cost management plan on how to implement the project within the
cost constraints. It is for this reason that holidays that fall within the project schedule were
negotiated for between the project managers and the stakeholders to ensure that the project does
not go beyond the scheduled duration. In addition, costs relating to the project implementation
was calculated on an hourly rate and there is no anticipated escalation in costs within the
scheduled timeframe of the project.
COST MANAGEMENT AND COST SCHEDULE
References
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Kerzner, H. (2018). Project management best practices: Achieving global excellence. John
Wiley & Sons.
Larson, E. W., & Gray, C. F. (2015). A Guide to the Project Management Body of Knowledge:
PMBOK (®) Guide. Project Management Institute.
7
Scope Management and WBS
Ryder-Pepsi Scope Management and Work Breakdown
Structure
Kevin Moseley
Purdue University Global
Dr. Jennifer Fleming
GM 592
1
Scope Management and WBS
Table of Contents
Introduction
Page 3
Project Scope Statement
Page 3
Work Breakdown Structure (WBS)
Page 5
Conclusion
Page 5
References
Page 7
2
Scope Management and WBS
Introduction
When conducting a project, Project Managers (pm) must keep track of the timeline and the
responsibilities of the project. Enforcing the scope and creating a work breakdown structure will help
the PM control the flow of the project from the beginning to the end. My plans is to work with Ryder
System, Inc. to open warehouse services to Pepsi in Brampton, Ontario taking over their current third
party logistics provider.
Project Scope Statement
Ryder System, Inc. currently is operating at a Pepsi warehouse facility as a third party in Tracy,
California and we want to capture the market in Brampton, Ontario. By the end of the project we will
fully take control of all warehouse operations including:
•
Project management
•
Inventory control
3
Scope Management and WBS
•
Staffing
•
Human resource
•
Shipping
•
Facilities
•
Finance
Before we take full responsibility of the deliverables listed above, we will be responsible for getting
current inventory from the current third party warehouse company over the facility and also doing a
physical inventory of our own once we take possession of the warehouse. Our team needs to find out if
the current staff works with the previous company or if they are Pepsi associates that can be convert
over to Ryder. Our Legal team will have to study the laws of Canada and know how to address situations
that differ from the United States of America (Baar & Jacobson, 2004). Our human resource team will
aide in hiring and documentations for employees in Canada. Before we start our operation, we will need
to build relationships with the freight carriers that are transporting the loads and find out contact
information for scheduling appointments for drop offs and pickups. Ryder facilities team will need a
blueprint of the warehouse to get utilities and signage set up. Lastly, we will need to gather a plan on
finance metrics that Pepsi and Ryder agree on that are in regards of running their operations.
There are a few constraints to this project startup such as:
•
Unit of measure and speed
•
Legal laws in Canada
•
Support team from United States of America
These constraints could hold back the initiation or progression of the project. In America we use LBS and
MPH but in Canada it is used at KG and KPH. This will need to be corrected for signage around the facility
and for bills of lading information. Another constraint is understanding every Canadian law and statue
4
Scope Management and WBS
there so we do not impose any fines or violations for the company. The last constraint will happen from
the United States of America employees that are coming to Canada to help out with the project.
Work Breakdown Structure
Listed above in the WBS are the objectives to accomplish for the project to be successful. The seven
deliverables are: Project Management, inventory control, staffing, human resource, shipping, facilities,
and finance. The work packages would be administration, physical inventory check, training program
materials, new hires, scheduling, equipment and supplies, and financial metrics. Once we successfully
have each of those work packages completed we are closer to finishing off the project (Hauser, 1994).
The elements in this WBS control accounts would be inventory control, shipping, facilities, and finance.
Conclusion
In conclusion, PM’s need to have control over every aspect of this project to ensure that we are
delivering the service that was presented to the customer (Mansuy, 1991). Time management and
5
Scope Management and WBS
finishing the project on time is imperative for the customer as well because it could cost us more money
to operate longer than we expected (Postula, 1991). Creating a WBS is a great visual tool for
stakeholders to view what we have planned and upcoming in regards to their project. Some may have
suggestions to change some parts and that is fine because we want to deliver a good service to them.
6
Scope Management and WBS
References
Baar, J. E., & Jacobson, S. M. (2004). The keys to forecasting-#2 work breakdown structure. Cost
Engineering, 46(3), 12-14.
Hauser, M. A. (1994). WBS development for an $11 billion transportation project.Transactions
of AACE International, 1994, 7.
Mansuy, J. (1991). Work breakdown structure: A simple tool for complex jobs.Cost
Engineering, 33(12), 15.
Postula, F. D. (1991). WBS criteria for effective project control. American Association of Cost
Engineers.Transactions of the American Association of Cost Engineers, , 7.
7
Ryder-Pepsi Warehouse Project
Kevin Moseley
Purdue University Global
Dr. Jennifer Fleming
GM 592
12/16/2018
1
Table of Contents
Introduction
Pg. 4
Responsibility Chart
Pg. 4
Gantt Chart
Pg. 6
Network Diagram
Pg. 7
Conclusion
Pg. 8
References
Pg. 9
2
Introduction
When conducting a project, Project Managers (pm) must keep track of the timeline and
the responsibilities of the project. Creating responsibility charts, Gnatt charts, and a network
diagram is a beneficial for the customer and team assisting in the project. Everybody involved in
the project will know their roles and what task they are responsible for so there will not cause
any confusion between team members. My plans is to work with Ryder System, Inc. to open
warehouse services to Pepsi in Brampton, Ontario taking over their current third party logistics
provider.
Responsibility Chart
As shown above, we are planning to have five major departments involved with the
success of this project. The five departments are; The Project manager, Facilities team,
Informational Technology (IT), Human Resources (HR), and the Safety team. Each department
will have their own individual team members to assist with the tasks assigned (Herroelen, 2005).
3
The project manager responsibility will be to oversee the entire project and ensure that each
department is getting their tasks done in a timely manner. The Project manager will also be in
responsible for hiring the third party companies.
The administration tasks will be handled by the project manager and they will keep track
of all admins hours contributed to the project. They will also be responsible for sending out
emails, filing paperwork, and facilitating travel schedules for all of the managers coming to assist
in starting up the project. Lastly, they will be responsible for being the main person in
communication with the customer and scheduling meeting to present to them.
The Facilities team will be responsible for ordering and setting up in the warehouse our
signs, forklifts, walkies, battery station, and switcher trucks. They also will be responsible for
regular maintenance issues such as; the pallet racks being stuck, dock door or plate not working,
or if the equipment is having issues. The Safety team will work alongside the facilities team to
evaluate if the equipment is safe and if the signs are hanging in safe locations. Safety team will
also be responsible for training new associates of safe practices in the warehouse and monitoring
the safety on the day to day operations for all associates and managers.
HR responsibility will be to hire new associates and if there was existing staff from the
previous company they will convert them over to Ryder. They will also be responsible for
training the associates on the clocking in and out procedures, culture of our company, and shift
plans for each associate. Our IT team will be responsible for setting up the internet network and
ordering all of our electronics such as; TV’s, computers, printers, mobile scanners, and installing
the time clock for the associates. IT will also be responsible for trouble shooting the day to day
technical issues within the warehouse or with the equipment.
4
Gantt Chart
Figure 1.2 is a Gantt chart of the Ryder-Pepsi Warehouse WBS activities. This chart is a
visual that shows the various tasks that we would need to complete in the recommended days to
launch our warehouse project (Pankaja, 2005). According to our critical path, we will work on
the tasks that would take the longest to complete first such as purchasing and receiving the
forklifts, walkies, switchers, and hiring associates. Not only because the tasks take longer to
complete but they are also the most important to keep up and maintain during our day to day
operations.
5
Network Diagram
1
1
1
Start
1
1
58
25 25
A
0 25
8
E
53
3
I
0
= Critical Path
ES
LS
6
Duration
Task
Slack
EF
LF
26
26
8
9
25
62
3
2
61
69
21 46
B
0 46
27
27
7
F
53
15
10
68
69
2
J
0
5
1
70
71
14 60
C
0 60
28
28
3 18
G
53 71
1
2
K
0
7
1
72
73
72
14
D
0
74
74
3
H
53
21
2
L
0
9
74
74
Finish
The Network Diagram is designed to show illustrations of the start of the project to the
end of the project with incorporating the tasks associated with it (Jarsky, 2011). Listed above is
the Network Diagram for the Ryder-Pepsi Project and the duration of task completion along with
start dates. Within the network diagram it is preferred to start with the tasks that are going to take
longer to complete and most relevant to the project.
Conclusion
It is imperative that Project Managers who are conducting a project must keep track of
the timeline and the responsibilities of the project. Responsibility charts, Gnatt charts, and a
7
network diagram is definitely beneficial for the customer and team assisting in the project. Our
plan is to start this project December 22nd and the estimated completion date is March 19th.
8
References
Herroelen, W. (2005). Project scheduling-theory and practice. Production and Operations
Management, 14(4), 413-432.
Jarsky, C. (2011). On computer modelling of the building process in construction planning and
management. Organization, Technology & Management in Construction, 3(2)
Pankaja, P. K. (2005). Effective use of gantt chart for managing large scale projects. Cost
Engineering, 47(7), 14-21.
9
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