Project Management - the River Oak Dispensing Company - Case Study Example

Project Management Name: Tutor: Course: Date: Abstract The River Oak dispensing company is in the process of re-engineering through adoption of systems that increases user interaction, efficiency and response time. The company CEO has offered $123,000 to install and run a Human Resource Information System (HRIS) to address the company concerns. The objectives are to reduce inconsistency and redundancy of the human resource department and increase employee data confidentiality and privacy. The project involved adoption human resource, risk, communication scheduling tools. The constraints involved completion of the project within three months meeting the desired quality and schedule. The activities involved in the project are; listing of project requirements, hiring and selection, HRIS prototype, testing and inspection, installation, documentation, training and support. The project will require costs and scheduled performance charts to implement and allow for change management through crashing which will increase costs by $1000 and reduce the duration by 5 days. The project will be closed upon satisfying the acceptance criteria procedure. The project learned that team work is essential while project plans are crucial in design and implementation of any project. Table of Contents PROJECT CHARTER 6 Specific Objectives 7 Results expected and Benefits 7 Assumptions 8 Project Scope 8 Deliverables and Milestones 8 Table 1: Deliverables and Milestones 8 Roles and Responsibilities 9 Resources 9 Success Measurements 10 Signatures 10 Table 2: Table on formal project charter approval 10 PROJECT PLANNING 10 Project Schedule 11 Table 3: HRIS Project Scheduling 11 Gantt chart 12 Figure 1: HRIS Gantt chart 15 Network Diagram 15 Figure 2: HRIS Network Diagram 15 Figure 3: HRIS Tasks in Progress Report 17 Project Cost 17 Figure 4: HRIS Budget Report 18 Human Resource Plan 18 Table 4: HRIS Human Resource Plan 18 Risk Plan 19 Table 5: HRIS Risk Plan 19 Communication Plan 20 Table 6: HRIS Communication plan 20 PROJECT IMPLEMENTATION 21 Table 7: Log Frame Analysis 22 Figure 5: HRIS implementation Model 23 Project Progress Report 24 Table 8: Cost Performance 24 Table 9: Earned Value 25 Quality Reviews 27 Addressing Project Changes 27 Decision Matrix 27 Table 10: Decision matrix 28 Issue Resolution 28 PROJECT CLOSURE 28 Table 11: Project Closure Acceptance Criteria 29 Project Wrap-Up 29 Closure and Lessons 30 References 32 List of Tables Table 1: Deliverables and Milestones 8 Table 2: Table on formal project charter approval 10 Table 3: HRIS Project Scheduling 11 Table 4: HRIS Human Resource Plan 18 Table 5: HRIS Risk Plan 19 Table 6: HRIS Communication plan 20 Table 7: Log Frame Analysis 22 Table 8: Cost Performance 24 Table 9: Earned Value 25 Table 10: Decision matrix 28 Table 11: Project Closure Acceptance Criteria 29 List of Figures Figure 1: HRIS Gantt chart 15 Figure 2: HRIS Network Diagram 15 Figure 3: HRIS Tasks in Progress Report 17 Figure 4: HRIS Budget Report 18 Figure 5: HRIS implementation Model 23 Introduction The River Oak Dispensing Company procures, assembles and sells medical household appliances such as water dispensers, fridges and purifiers. With more than 250 employees, the company has been experiencing organizational challenges regarding employee management and motivation. It has been using a manual system to evaluate and inspect employee payrolls, rewards, claims and work performance. The Company CEO chaired a management meeting that resolved to procure a Human Resource Management System (HRIS) that will help solve some of the teething problems that have reduced efficiency and increased costs to the company. The system is to be rolled in utmost one month and requires the input of everyone in the organization. The board appointed me as the project manager in charge of the HRIS system installation in the firm. The initial action is to provide a project charter which defines the objectives, project plans and implementation directions. It also advises on ways of project closure. The scope of Work (SOW) includes; review of project requirements and creation of plan of action that will work on expanded activities and project timelines within four months, listing project requirements, preparing documents, designing HRIS prototype, testing, installation and training. The project is to be terminated once it achieves its goals in entirety (Rae, 2007). PROJECT CHARTER Project Title: Adoption and installation of a Human Resource Information System (HRIS) in River Oak Dispensing Company Project Brief description: The Company has been facing numerous employee complaints, hiring without regard to competencies and missing employee information such as leave, workmanship compensation and claims. This required adoption of an efficient, reliable and sufficient system that addresses these concerns. The HRIS installation will begin with a project brief with defines the needs of the organization based on needs analysis (Evans, Campbell, & Stonehouse, 2003). The company intends to be efficient and effective in running employee affairs which is likely to increase its profitability and market share. The needs also meet the organization strategies and plans. Specific Objectives 1. To provide adequate human resource data storage with redundancy and inconsistency reduced to 2% within the next three months 2. To increase the level of restricted data or unauthorized access in the company’s human resource to 98% within three months 3. To allow for alteration and proper documentation with efficiency of 90% within six months 4. To reduce employee complaints regarding their claims, overtime and rework compensation by 5% within five months 5. Increase profitability and market share of the company by 10% within the next one year Results expected and Benefits 1. Increased data storage and reduced inconsistency and redundancy of human resource department 2. Increase confidentiality and privacy of employee data through secured databases 3. Increase affinity to alteration and proper documentation of employee issues 4. Increased profitability and market share in the local and regional market Speedy 5. Better employee interaction and information procedure 6. Enhanced scheduling and development of programs and superior information precision Assumptions 1. The project will have a secure and consistent funding throughout the project period 2. The project team remains intact and devoted to the project objectives until its closure 3. The project needs remains unchanged until interventions take place Project Scope The project addresses the human resource issues within the organization and is not intended to resolve issues with other stakeholders such as customers and suppliers (Mooz, PMP & Cotterman, 2007). The project is also limited by a budget of $122,245 which is an estimated cost to cover all the deliverables and milestones within three months. Deliverables and Milestones Table 1: Deliverables and Milestones Deliverable Milestone Date Project requirement listing Listing of requirements complete Business process documentation Project system prototype Project plans Project plans complete Coding Coded programs and database structures Testing and inspection Units, systems and user acceptance tested Training and support User guides and training manuals complete, management accepts the project Roles and Responsibilities Project Sponsor: Provide the project with a clear sense of direction. Approve project plan and charter, confirm project goals and objectives, obtain updates of key project objectives, and assists in resolving challenges. Project Manager: Provide leadership in development and project planning. Develop plans, deliverables and identify risks plans, resource plans, project controls, change management, report project status and resolve conflicts. Project Team: Work towards project deliverables. Comprehend work to be completed. Update project manager on daily activities and changes, undertake project activities, manage expectations and communicate project status. Customer: This is the Human resource department of River Oak Dispensing Company. Partner with the sponsor and project manager to manage, work plans, timelines, documentation, resources and testing procedures (Adam, 2004). Work with project team and provide a clear definition of deliverables. Take ownership of the developed software and process. Resources The project requires an initial funding of $122,245, 18 personnel and 10 computers and its accessories to complete the project. The project constraints will be; quality, time, cost and schedule. Success Measurements The project will be able to save more than $100,000 in unjustified claims and workmanship compensation. Superior information precision will go up by 15%. Quick printing of accurate reports will save time up to 90%. Signatures The people providing the signatures in the table below accept in approval of a formal project charter. It therefore empowers the project manager to proceed with project activities as stated in the charter. Table 2: Table on formal project charter approval Customer: HR Department Name Signature Date Project Sponsor: CEO-River Oak Dispensing Company Name Signature Date Project Manager Name Signature Date PROJECT PLANNING The HRIS project began with definition of a project brief with outlined the needs of the organization based on needs analysis. The company intends to be efficient and effective in running employee affairs which is likely to increase its profitability and market share. The needs also meet the organization strategies and plans (Galbraith, 2001). The project will therefore adopt several project plans like human resource, risk, communication, cost, and schedules. The triple constraints will show baseline studies and later compare during implementation. The plans are provided based on assumptions and needs of the system to be implemented. The project will optimize on employee database, benefit systems and payroll system into a single HRIS (Crampton, 2008). Project Schedule The HRIS project schedule will cover a period of three months. The schedule will consist of baseline plans and status of action. The schedules assist the project manager in identifying lags and weaknesses in project implementation by comparing the actual and baseline schedules, cost and quality. Table 3: HRIS Project Scheduling Deliverable/Item Baseline schedule Actual Schedule % Completion Listing of HRIS Project requirements 7 days 8 days 0 Finding and appraisal of requirements 4 days 4 days Assessment of components 3 days 4 days Hiring and selection of project team 5 days 5days 5% Advertising for project positions and vacancies 1 day 1 day Recruitment and selection 4 days 4 days HRIS prototype 16 days 14 days 10% Designing new or extensive components 5 days 4 days Development and configuration 4 days 4 days Validation 1 day 1 day Deployment 3 days 3 days Coding 2 days 2 days Testing and Inspection 12 days 11 days 5% Module integration 3 days 4days Testing for errors and defects 7 days 5 days Rework and failure 2 days 2 days Installation 7 days 6 days 0 Piloting 3 days 3 days Actual installation 4 days 3 days Documentation 8 days 7 days 0 HRIS control phasing 6days 5 days Pilot test results 2 days 3 days Training and support 9 days 8 days 5% User manuals 3 days 3 days User training 6 days 5 days HRIS Go Live 1 day 1 day 0 Gantt chart The Gantt chart is used to plan activities from the start to the end. These are sequentially arranged to reflect a logical order and sense of transition. The project deliverables are sub-divided into smaller activities which can be managed through Work Break Down (WBS) and assigned to additional staff (Hillson & Webster, 2004). The status of progress is determined by the percentage of advance in every sub-activity that contributes to the main activity. The Gantt chart assigns resources to the specific activities depending on the competencies of the responsible person. The part in black of every bar in the Gantt chart shows the status of work in progress from 0 to 15%. The above schedule is run on a Gantt chart as shown below; Figure 1: HRIS Gantt chart Network Diagram This is depicted and derived from the Gantt chart but shows the critical path and constraint type Figure 2: HRIS Network Diagram The tabulate form of a Gantt chart is provided below which has been taken as a report. The table shows resource names, work left, units worked, delay, start and finish dates. The predecessors and resource names are also provided (Basingstoke & MacMillan, 2004). Formal approval of the project plan is obtained prior to proceeding with the implementation and the AR phase to ensure customer and sponsor commitment. For effective documentation, it is necessary to have the current plan (analysis project plan or work plan) maintained across the project to give quality results. Effective project plan document must be prepared hence involving great input and effort from the input of the Peer Review participants and the whole project team (PMBOK® Guide, 2005). Living the plan is enabled through a disciplined project plan not forgotten once established. Use of a work breakdown structure requires effective task management. Clearly approved and defined performance objectives and scope deliverables are the essential for the project team to keep focused the scope of effort. Detailed planning and analysis will be accomplished prior to final project baseline estimates which are likely to improve the estimates of project quality.  Benefits to project control  is by use of the change management process geared to reducing scope creep, maintaining software control and project status communication by way of consistent format that keeps the team involved (Mathis, 2009). Involving the sponsor and management in periodic project status reviews will help keep them involved and updated in the decisions and key activities. Major reviews improves performance while holding dress rehearsal for major tasks. Figure 3: HRIS Tasks in Progress Report Project Cost Cost allocation report: The project will be measured in terms of cost allocation to specific deliverables based on actual and baseline costs. The variance will be compensated through change management by fast tracking or crashing the project (Kerzner, 2004). This will save costs by reducing the indirect costs by increased direct costs in the short term. The report will also be as shown below; Figure 4: HRIS Budget Report Human Resource Plan This is the plan that stipulates the work to be done, hiring and selection in order to achieve quality in the project under progress. The HR plan intends to employ those with superior competencies, qualifications and experiences in system documentation and administration (Krajewski, & Ritzman, 2005). The resource plan identifies the specific persons and their academic and professional experiences. Table 4: HRIS Human Resource Plan Name Competencies Work hours/day Dalia Holds a Masters Degree in Business Administration and professional experience in financial consultancy. Has five years experience in the company’s management as finance manager 8 Jassim Has a BSC degree in public relations and marketing. Has worked with Proctor and Gamble for 4 years as relationship manager. He currently in charge of training and development portfolio for the company 6 Wael Has an advanced degree in computer science from MIT and also 5 years experience in systems configuration and development. Has overseen inspection of several systems for SMEs in North America 10 Suzanne Advanced diploma in computer administration and applications 12 Basil Degree in computer science. 5 years experience in system analysis 10 Saeed Masters degree in computer studies and networking. 10 years experience in computer administration 12 Mahra Degree in human resource management. Four years experience in human resource planning 8 Jawaher Degree in computer studies. Experience in system administration and troubleshooting installations 10 Risk Plan The project identifies with some of the risks or challenges which are likely to affect its implementation and quality (Hicks, 2009). The risk plan identifies the risk, impact, the frequency of occurrence, mitigation and responsibility. Table 5: HRIS Risk Plan Risk Impact (Low, Medium, High) Frequency of occurrence (Low, Medium, High) Mitigation Responsibility Delayed listing of project requirements H L Adopting and procuring the required components and materials in time. Collecting and assembling all the required information from the various departments of the company Jawaher Lack of suitable competencies H M Advertising broadly with specific emphasis on qualifications and experience. Using a suitable channel to reach potential applicants Mahra Crashing of computers and online viruses M H Using sufficient repairs and backups for the information under installation. Using suitable anti-viruses to protect the documents from harm Basil Difficulty of end users to comprehend the new systems M L Using interactive and friendly user manuals make end users understand the system. Employing trainers to explain, guide and respond to the user queries Jassim Communication Plan This addresses the communication needs of the project to various stakeholders and specifies the medium to be used as specific points in time (Johnson & Scholes, 2008). Communication helps restore confidence and communicates project status to stakeholders at various levels. Table 6: HRIS Communication plan Communication item Audience Medium Remarks Kick of meeting briefs Management, employees Board room meeting To brief the key stakeholders on the need to have the HRIS system hence defining its benefits Cost and time Sponsor, departmental managers e-mails, Board meeting Update on the project status according to the triple constraints Project benefits Employees Town hall meeting, e-mails Provide employees and the company at large as to why the software is essential Project job vacancies Potential employees Newspapers, TV and direct bidding The communication is to obtain the best talent that will have the ultimate team to deliver the project goals PROJECT IMPLEMENTATION The log frame will be used to actualize the project plans during implementation. The project expectations can therefore be met despite conditions prevailing. The HRIS project will be implemented based on the quality, schedule, cost and time (Morrison, Rimmington & Williams, 1999). Monitoring and evaluation will be based on these constraints. When the inspection team is satisfied that the quality of the system is sufficient it will be permissible to allow for increased costs. The project implementation will be guided by resource plans and scheduling tools and techniques such as Gantt charts and network diagrams. Deviation from the planned quality, costs and time will necessitate change management to be done (Palmer, 2009). Performance checklists will also be used during implementation to help monitor and evaluate the objectives against desired goals. The log frame is as given below; Table 7: Log Frame Analysis Item Indicators of achievement Means of Verification Assumptions Aim: To install and adopt a HRIS software in the company HRIS databases, installations in specific computers User manuals and guides All the computers are running and updated with anti-viruses Purpose: To increase efficiency and responses of payroll and benefits scheme Documentation and interfaces User manuals “ Outputs: Reduce use of manual systems and increase user interaction Prototype Codes The system is compatible to the operating system used Activities: Listing requirements, hiring employees, installation and documentation Project planning and evaluation in four months Project plans “ Inputs: Computers, accessories, people, management, and Procurement and supply of inputs within a month Checklists All the requirements are provided in time The factors that will ensure the success of the HRIS plan are; Staying within the scope Updating the project plan Authorization of change implementation Providing the deliverables on time The HRIS implementation will be based on the model below; Figure 5: HRIS implementation Model Performing tasks: The activities are as provided in the schedule and will be undertaken according to time, quality and cost scheduled. The activities will require close monitoring and evaluation (Bridge S, O’Neill & Cromie, 2003). Tracking progress: The activities undertaken will compare actual and baseline estimates of time, quality and cost. Any deviation will show lags and delays in some activities or way ahead of time which will allow for review. Manage Change: This requires application of project change management tools like crashing or fast tracking or resource leveling to bring the constraints under check (Getz, Carlsen, & Morrison, 2004). It also allows for the project objectives to be achieved when they are still desirable to all the stakeholders. Update plan: This will mean increasing the number of employees, increasing the amount of money allocated to the project or increasing the allocated time to meet unexpected delays or other contingencies. Project Progress Report This compares the baseline costs against the actual costs and provides variances and amount remaining as given in the table below; Comparing progress to plan: This requires Gantt chart schedule performance reviews Quality reviews Cost performance charts Earned value techniques Cost performance charts: The charts compare the baseline costs against the actual costs and provide variances and amount remaining (Chapman, 1997). The performance chart is shown below; Table 8: Cost Performance The progress reporting is capture in the document provided below. This provides a summary of project performance with regard to the three constraints (Mulcahy, 2003). Earned Value techniques: This shows the real value of cost administration with regard to specific deliverables. Table 9: Earned Value Quality Reviews This considers the design of the prototype and specifications of the computer and its accessories alongside the operating system (Burns & Davidson, 1996) The manuals and parts will also form part of the quality reviews Computer program code will be checked for quality with minimal errors and defects of less than 5%. Addressing Project Changes This will involve; Calling a team meeting Offering explanation concerning the changes Identifying alternative options for correction Obtaining feedback from the project team members Selection of recommended option(s) Preparing decision matrix Implementing the course of action approved. Presenting information to customer/ upper management Decision Matrix This will help in arriving at a decision and defining the way forward Table 10: Decision matrix Option Impact on Risk Quality Cost Schedule Use overtime to have work behind schedule completed Minimal impact on quality Likely to increase costs by 8% The project will be back on schedule Low risk level Adding staff so as to overlap work on the critical path Minimal impact on quality Likely to increase costs by 12% The project will be back on schedule High Issue Resolution The project will seek to resolve issues and disagreements on areas such as; documentation, assignments, scheduling, tracking, escalation and resolutions (Archer & Ghasemzadeh, 1999). PROJECT CLOSURE The project upon meeting all the project deliverables and milestones will undergo post-evaluation review which involves checking the quality and acceptance criteria through audits. The inspection team will only allow the system to be rolled into the entire company when the minimum requirements have been met and justified. The closure checklist will help in project closure (Olsen, West, & Ching-Yick Tse, 2008). The project closure checklist will involve the product turnover and wrap-up Project quality arises from the inspections and audits done. This will determine whether the software will be accepted or rejected. Table 11: Project Closure Acceptance Criteria Product Activity Acceptance Software Customers to be provided with Acceptance Test results of installed software Third party warranty statements should be provided to sponsors and customers Software warranties and licenses Less than 1% in errors Suppliers offer software warranties Extended maintenance packages Additional software tools or spares provided Hardware Acceptance Test results for the installed system hardware to customers provided Complete implementation of security into installed system Supplier provides equipment warranties Extended service or maintenance packages Documentation Project deliverables completed, accepted and taken to the suitable persons Results of the system project testing Document a final test for disaster recovery plan Provide training materials and copies of vendor or internal maintenance agreements Yes if complete Copies of test plan provided for future reference Provide users with a Technical Guide on integration of hardware Several manuals for user references provided Project Wrap-Up Final project acceptance criteria will be reviewed to check the attainment of each and final closure steps Project punch list of uncompleted activities or tasks prepared Final accounting transactions prepared especially to sponsors, suppliers and consultants through invoices and verification of asset purchase and processing. Expense and AR capital accounts are closed to any further charges External publicity and internal to the company should have announcements on sponsors and IT management prepared Final project lessons learned are captured and used as part of the project and future projects A final physical audit of the project records, assets, documents, software, test results and storage gadgets or other valued information in the sponsor area or designated project (Charvat, 2005). A Quality Assurance person will perform this function and follow the practices as mandated in the quality assurance configuration management plan Final project metrics results is determined for purposes of closure reporting Final closure acceptance report conducted and presented to sponsors, managers accountable and the rest of the management for purpose of closure. Closure report outline is reviewed and lessons learned overview is provided for format and approach. Closure and Lessons The HRIS project is essential in delivering the objectives and solving the needs of the company regarding HR issues. The benefits of the system and payroll needs are essential in driving the deliverables and milestones to completion. The project requires the adoption of a project charter and scope of work which defines the activities and how they will be implemented. The project initiation process is critical through use of tools and techniques preferred in project planning. The Gantt chart and network diagrams are important in showing the sequence of activities, duration and logical order besides resource allocations (Thieraus et al. 2009). Once the project is running on schedule, the other constraints like quality and costs are also likely to be within the boundaries advised. The implementation part will employ costing reports, scheduling of time showing variance and remaining time. The project has shown that it can be completed within schedule despite the few days of extension. The project did require additional $1000 with an extension of 5 days. This meant that crashing had to be done to reduce on project duration days. The project has demonstrated that it can succeed with huge customer (HR department) involvement through commitment in terms of dollars, time, people and smooth working relationship. The customers assisted in making changes to the scope and avoiding scope creep. Actual testing and development of test plan was essential besides presenting and preparing training. The suppliers were able to offer crucial contractual negotiations and on-going obligations. It was necessary to have quality assurance inspections and supplier product performance specifications. Full time dedicated resources was essential for project success. The schedules were achievable because the project ran on realistic budgets. Input and effort is needed in preparing and effectively managing project plans. Differences and varied view points within teams are resolved through discussion (Stogdill, R. (2004). It was beneficial to have a well documented code and design inspections. Overall, it was important to have a project manager with discipline and training in management issues. References Adam, E. (2004). Alternative Quality Improvement Practices and Organizational Performance. Journal of Operations Management. 12: 27-44. Archer, N. P. & Ghasemzadeh, F. (1999). An Integrated Framework for Project Portfolio Selection. International Journal of Project Management, 17, 4 (1999) 207-216. Bridge S, O’Neill, K. & Cromie, S. (2003). Understanding Enterprise, Entrepreneurship and Small Business. Basingstoke. MacMillan. Burns, P., & Davidson, J. (1996). Small Business and Entrepreneurship (2nd Edition) Basingstoke. A. & MacMillan C. L. (2004). Project Management Primer. Bureau of Reclamation, p. 2. Chapman, J. R. 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