INDIVIDUAL ASSESSMENT COVER SHEET

Faculty of Design and Creative Technologies

Family
First Name Gary Zhang Student ID No 23209425
Name

Course Course Assignment Due 7 June

IT Project Management COMP507
Name Code Date 2024
Tutorial 18/5/20
Lecturer Jing Ma Date Submitted
Day 24
Tutorial
Tutor No.Words/Pages 9
Time

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Author: Academic Office, Faculty of Design and Creative Technologies Page 1 of 8

Subject: DCT Individual Assessment Cover Sheet
Version 7.0 Issue Date: 19/04/2017 Last Updated: 17/02/2022
COMP507- ITPM Semester 1 2024

ASSIGNMENT #2 (100 marks)

Contribution to final marks: 50%
Must get a minimum of 35/100 marks in this assignment to get an overall pass for this paper

Submission Requirements:
 This is an individual assignment. The cover page must have your ID number and Name (in full)
 Please use 1.5-line spacing and 12-point font (no handwritten assignment will be marked except for
drawing the AOA diagram)
 Include page numbers.

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COMP507- ITPM Semester 1 2024

Task1: Project Cost Control (30 marks)

You are required to control the budget for the MYH project. Below is the Business Case of the project.

Table 1
Business Case for MYH

Discount rate 10%

Assume the project is completed in Year 0 Year

0 1 2 3 4 5 Total
Costs $2,400,000 $706,000 $712,360 $719,102 $726,248 $733,823
Discount factor 1.00 0.91 0.83 0.75 0.68 0.62
Discounted costs 2,400,000 641,818 588,727 540,272 496,037 455,646 $5,122,500

Benefits 0 0 18600000 18600000 18600000 18600000

Discount factor 1.00 0.91 0.83 0.75 0.68 0.62
Discounted benefits $0 $0 $15,371,901 $13,974,455 $12,704,050 $11,549,137 $53,599,543
0
Discounted benefits - costs (2,400,000) (641,818) 14,783,174 13,434,184 12,208,013 11,093,491 48,477,043 NPV
Cumulative benefits - costs (2,400,000) (3,041,818) 11,741,355 25,175,539 37,383,552 48,477,043

ROI 946%
Payback before Year X

1.1 What is the total budget at completion (BAC) for the project? (3 marks)

2400000 + 706000 + 712360 + 719102 + 726248 + 733823 = 5,997,533

Assume that the work for the first week is completed in the project. The following information has
been provided as a result of work done so far.

Plan Value (PV) = $400, 000

Earned Value (EV) = $250, 000
Actual Cost (AC) = $600, 000

Answer the following questions (1.2 – 1.6). You must show all the workings to support your answers.

1.2 Explain a likely reason for the difference between PV and AC for the first week of this project. (5
marks)

AC higher than PV means the project costing is being overrun for the first week. It might be because
the cost for the project is higher than expected, or the project team is not productive enough.

1.3 Calculate the cost variance (CV) and the cost performance index (CPI) for the first week of this
project. Is the project under or over budget? (7 marks)

CV: 250000 – 600000 = -350000

CPI: 250000 / 600000 = 0.42

A minus CV and below 1 CPI means the project is over budget.

1.4 Calculate the schedule variance (SV) and the schedule performance index (SPI) for the first week of
this project. Is the project ahead of or behind schedule? (7 marks)

SV: 250000 – 400000 = -150000

SPI: 250000 / 400000 = 0.625
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COMP507- ITPM Semester 1 2024

A minus SV and below 1 SPI means the project is behind schedule.

1.5 Calculate the new estimate at completion (EAC) for this project after the completion of the first
week’s work. (4 marks)

EAC = AC + (BAC-EV) / CPI

= 600000 + (5997533 – 250000) / 0.4167
= 14384800

1.6 Calculate how long it will now take to finish this project after working on the project for a week. (4
marks)

Estimate to complete: 14384800 – 600000 = 13784800

If AC per week stays the same: 13784800 / 600000 = 22.97 = 23
It takes about 23 weeks to finish if AC stays the same.

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COMP507- ITPM Semester 1 2024

Task 2: Project schedule development (35 marks)

Table 2 shown below provides the activities (A to L) and their three-point estimates for an Auckland City
IT Infrastructure (LAN Network) project.

Table 2
Activities Schedule for Auckland City IT Infrastructure Project

Task Predecessor Optimistic Most Likely Pessimistic Task effort

duration (Day) duration (Day) duration (Day)
A - 12 14 26 15.67
B - 14 18 24 18.33
C A 21 23 32 24.17
D A 12 17 26 17.67
E C 11 13 16 13.17
F D 16 19 21 18.83
G B 8 6 11 7.17
H B 6 4 12 5.67
I E, F, G 8 6 13 7.5
J H 8 7 16 8.67
K J 9 7 13 8.33
L I, K 10 8 12 9

3.1 Complete the PERT estimation to show the duration of each activity. (10 marks)

PERT estimation = (Optimistic Duration + 4 * Most Likely Duration + Pessimistic Duration) / 6

A: (12+4*14+26)/6 = 15.67

B: (14+4*18+24)/6 = 18.33

C: (21+4*23+32)/6 = 24.17

D: (12+4*17+26)/6 = 17.67

E: (11+4*13+16)/6 = 13.17

F: (16+4*19+21)/6 = 18.83

G: (8+4*6+11)/6 = 7.17

H: (6+4*4+12)/6 = 5.67

I: (8+4*6+13)/6 = 7.5

J: (8+4*7+16)/6 = 8.67

K: (9+4*7+13)/6 = 8.33

L: (10+4*8+12)/6 = 9

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COMP507- ITPM Semester 1 2024

3.2 Draw the network diagram (AOA) to show the order in which all the activities will be undertaken in
this project. The diagram must be clearly labelled. (5 marks)

3.3 List all the possible paths for this project with their total durations. (4 marks)

A – C – E – I – L = 69.51 days

A – D – F – I – L = 68.67 days

A – B – G – I – L = 57.67 days

A – B – H – J – K – L = 65.67 days

3.4 Clearly identify and briefly explain the critical path for this project. (10 marks)

Critical Path is the path with longest durations. In this project, the longest durations path is A – C – E
– I – L, with 69.51 days duration.

3.5 This network is expected to be up and running within 4 months from the time the work on the
project is started. Does this opening date appear feasible? Justify with your calculations. (6 marks)

The critical path for this project takes 69.51 days to complete. If we consider 5 working days a week,
22 working days a month, we will have 88 days to complete this project, which is more than the
durations of the critical path. So it is feasible.

Task 3: Project selection (15 marks)

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COMP507- ITPM Semester 1 2024

You are required to perform analysis to help identify the order in which the projects will be undertaken
from the available four projects.

3.1 Use the information below to create a table that must show the weighted score and priority for each
project for a software vendor environment. (10 marks)

The factors that impact the success of a project include (a) the availability of a principal engineer
(20%); (b) a development team assigned based on at least 4 senior software engineers with local
development experience (20%); (c) availability of a product manager as an on-site customer) (20%);
(d) support for the project from the sales and marketing team (20%); (e) availability of an agile
tester (10%); and (f) an established product backlog based on high-level requirements (10%).

Table 3 below provides the scores based on these factors for each project.

Table 3
Criteria for Projects 1-4

Project / Criteria a b c d e f
Project 1 65 45 45 60 55 60
Project 2 70 65 55 65 85 70
Project 3 75 70 75 75 85 50
Project 4 60 70 75 75 85 70

3.2 Explain the order in which these 4 projects should be undertaken. Justify with your calculations. (5
marks)

Project 3 has the highest priority with a 72.5 weight score.

Project 2 and Project 4 have the same priority with a 68.5 weight score.

Project 1 has the lowest priority with a 56.5 weight score.

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COMP507- ITPM Semester 1 2024

Task 4: Project selection (20 marks)

4.1 Based on the information provided below, perform a quantitative risk analysis using a decision tree
diagram to calculate the expected monetary value (EMV) and contingency reserve for each project.
(10 marks)

Chance Expected monetary Contingency

Risks of Estimated value (EMV) reserve
Project Outcome Impact
Risk 1 40% -$ 60,000 -$24000 $66000
Project 1
Risk 2 60% -$ 70,000 -$42000
Risk 1 20% -$ 100,000 -$20000 $39000
Project 2
Risk 2 25% $ 60,000 $15000
Risk 3 55% $ 80,000 $44000
Risk 1 20% $ 60,000 $12000 $14250
Project 3
Risk 2 25% $ 75,000 $18750
Risk 3 55% -$ 30,000 -$16500
Risk 1 40% $ 60,000 $24000 $18000
Project 4
Risk 2 35% $ 40,000 $14000
Risk 3 25% -$ 80,000 -$20000

4.4 Explain the contingency reserve for each project. Justify with your calculations. (10 marks)

Project1 contains 2 risks both with negative impact, -$60000 * 40% = -$24000 for Risk 1 EMV, and -$70000
*60% = -$42000 for Risk 2 EMV, so it needs $24000 + $42000 = $66000 for Contingency Reserve.

Project2 contains 2 positive risks and 1 negative risk. Each Estimated Impact * Each Chance of Outcome =
EMV. -$20000 + $15000 + $44000 = $39000 for Contingency Reserve.

Project3 contains 2 positive risks and 1 negative risk. Each Estimated Impact * Each Chance of Outcome =
EMV. $12000 + $18750 - $16500 = $14250 for Contingency Reserve.

Project4 contains 2 positive risks and 1 negative risk. Each Estimated Impact * Each Chance of Outcome =
EMV. $24000 + $14000 - $20000 = $18000 for Contingency Reserve.

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