ENG8208 Advanced Engineering Project Management
Assignment 1 – Semester 1 2016
Date due: 22 April 2016
Weighting: 40% (400 marks)
Special Instructions
1. Answer all questions, and ensure that your answers have the coverage, and are in the format, requested.
2. Present your own ideas.
3. Your answers should be properly referenced and reflect that you have undertaken research outside the study material. You are to use the Harvard AGPS referencing system, information which is available from the USQ Library webpage:
http://www.usq.edu.au/library/referencing/harvard-agps-referencing-guide
4. You will require a table of contents for your answer to Part A.
5. You will require an abstract and table of contents for your answer to Part B.
6. You should include a word count for each of Part A and Part B of Question 1. Word counts exclude the List of References.
7. It is expected that your written answers will be produced using electronic word processing. The ‘.pdf’ format is preferred for written answers.
8. Calculations for the project budget should be clearly explained.
9. Assignments will be submitted electronically via the Study Desk.
10. Please note that if plagiarism or cheating is detected in this assignment it will result in no marks for the assignment. Students should ensure they clearly understand the meaning of plagiarism and cheating. In particular, students should understand that while they may collaborate with other students on the conceptual ideas in their assignments, the final written report submitted by each student must be unique, and must not contain the written material of (a) any other student in the course, or (b) by any other person without due acknowledgement. Assignments are expected to be submitted to plagiarism detection software at the time of submission.
11. Applications for extensions of assignment submission must be made in writing to the Course
Examiner together with accompanying documentation as specified in the Assessment of Compassionate and Compelling Circumstances Procedure. The application and all supporting documentation must be submitted electronically.
An Assignment submitted after the deadline without an approved extension of time will be penalised. The penalty for late submission without a pre-approved extension will be specified in the assignment instructions. At the very least, the penalty for late submission is a reduction by 5% of the maximum Mark applicable for the Assignment, for each University Business Day or part Business Day that the Assignment is late. An Assignment submitted more than ten University Business Days after the deadline will have a Mark of zero recorded for that Assignment.
Course Examiners may refuse to accept Assignments for Assessment purposes after Marked
Assignments and/or feedback have been released. If Compassionate and Compelling Circumstances appear to exist, Course Examiners must consider these before refusing to accept an Assignment.
See: http://policy.usq.edu.au/documents/14749PL#4.2_Assignments
Question 1 (100 marks total)
Earned Value Management
Question 1 (a) - Project 1 - 25 marks
You are managing a project that is scheduled to take 12 months to complete and has a budgeted actual cost (BAC) of $1,000,000.
At the Status Date, the project has the following characteristics:
Planned value (PV) $300,000
Actual cost (AC) $350,000
Percentage of work completed 25%
Calculate the following quantities:
Earned Value (EV)
(4 marks)
Cost Variance (CV)
(3 marks)
Schedule Variance (SV) (3 marks)
Cost performance index (CPI) (3 marks)
Schedule performance index (SPI) (3 marks)
Using your results, apply the three (3) formulae listed in Section 7.4.2.2 of the text to the calculation of the Estimate at Completion (EAC) of the project.
These formulae are as follows:
• EAC=AC + (BAC – EV)
• EAC=BAC/CPI
• EAC= AC + [(BAC-EV) / (CPI x SPI)]. (6 marks)
For each of these calculations (3 in total), calculate the To-Complete Performance Index (TCPI). (3 marks)
SUB- TOTAL FOR QUESTION 1 (a) 25 MARKS
Question 1 (b) - Project 2 - 25 marks
You are managing a second project that has the same time and cost specifications as those in Question 1 (a), but which is 40% complete at the Status Date, when Actual Costs are $350,000.
Its specifications are below
Budgeted Actual Cost (BAC): $1,000,000.
Schedule time to complete: 12 months
At the Status Date, the project has the following characteristics:
Planned value (PV) $300,000
Actual cost (AC) $350,000
Percentage of work completed 40%
Calculate the following quantities:
Earned Value (EV)
(4 marks)
Cost Variance (CV) (3 marks)
Schedule Variance (SV) (3 marks)
Cost performance index (CPI) (3 marks)
Schedule performance index (SPI) (3 marks)
Using your results, apply the three (3) formulae listed in Section 7.4.2.2 of the text to the calculation of the Estimate at Completion (EAC) of the project.
These formulae are as follows:
• EAC=AC + (BAC – EV)
• EAC=BAC/CPI
• EAC= AC + [(BAC-EV) / (CPI x SPI)]. (6 marks)
Calculate the To-Complete Performance Index TCPI_. (3 marks)
SUB- TOTAL FOR QUESTION 1 (b) 25 MARKS
Question 1 (c) - 30 marks
Comment on each of these projects from the point of project performance, paying particular attention to the following:
Cost Variance (CV) (2 marks per project)
Schedule Variance (SV) (2 marks per project)
Cost performance index (CPI) (2 marks per project)
Schedule performance index (SPI) (2 marks per project)
Estimated Actual Cost (EAC) of the project (2 marks per project)
A brief assessment of the overall project performance, including any necessary measures required to successfully complete the project (5 marks per project)
Total Marks per project 15 marks per project
SUB- TOTAL FOR Question 1 (c) 30 MARKS
Question 1 (d) - 20 marks
Briefly discuss two (2) advantages and two (2) disadvantages of Earned Value Project Management.
Marking:
Advantages (5 marks per advantage – 10 marks total)
Disadvantages (5 marks per disadvantage – 10 marks total)
SUB-TOTAL FOR QUESTION 1 (d) 20 MARKS


Question 2 (300 marks total)
Developing a Revised Project Management Plan and Report to Management
Background
You have recently been appointed as a project manager in a large engineering organisation. Some examples of such an organisation include, but are not limited to:
• Consultant
• Government organisation
• Construction company
• Installation company
• Asset management provider • Maintenance services provider
• Other.
The organisation may be operating in one or more engineering disciplines, such as civil, mechanical, electrical, environmental, mechatronic, biomedical, or other discipline, or in construction or surveying.
Your organisation has asked you to review the management of a medium sized project (up to $5 million in value), which is to be completed within two (2) years of its commencement. The project has at least 20 main activities.
The project commenced eight (8) months ago. The first six (6) weeks were spent developing the project charter and preparing the original project management plan. Project execution (carrying out the work) commenced immediately the project management plan was completed and approved.
There will be a one (1) month project closing period at the end of the project. During this time, equipment will be tested and commissioned (if relevant to your project), and the project will be finalised.
The project deadline is firm, subject to any justifiable contingencies.
The existing business case and project charter are not detailed. Similarly, the project management plan, including a basic Gantt chart and high level budget is not well detailed or described.
There are a number of issues with the project:
1. To date, the project is two (2) months behind schedule. Part of this delay has resulted from poor understanding of lead times for delivery of particular project components. There are no other significant factors that should impact on project delivery.
2. Because there is only a quite basic project plan and time schedule, there is poor sequencing of critical activities. They do not have clear scheduled completion dates.
3. There have been delays in procuring some critical project resources. There may be alternative suppliers.
4. While there were a number of specialised personnel for particular aspects of the project available at the start of the project, they were not booked ahead of when they were required.
Most of these resources are now booked for several months ahead. Few alternatives are available.
5. As a result of the influence of a number of stakeholders, there has been significant scope creep, which with the current rate of progress will delay delivery by one (1) month. This scope creep also threatens to impact on the project’s business case.
6. Some components of the project have not been delivered or built to the required quality specification. Consequently, there have been delays while defects have been rectified.
7. Communication between project manager, project sponsor, stakeholders, contractors, consultants and other key personnel has not been good. There are therefore a number of cases where key information has not been communicated well. This poor communication has impacted on project progress.
You have been charged with delivering a revised project management plan to deliver the project on time; and with providing a report to the Project Sponsor explaining the actions you have taken.
Your Task
Question 2 (a) Developing a Revised Project Plan
(maximum 2500 words) (200 marks)
1. Define your organisation and project. (20 marks)
Nominate an organisation of your choice, and the engineering discipline or disciplines in which it is operating.
Nominate a suitable project (for example, road development, subdivisional development, power station, mobile phone network, mining, provision of industrial equipment, installation, maintenance, surveying) to use as an example.
2. Prepare a revised project charter, including an updated business plan. (30 marks)
3. Prepare an updated project management plan for completing the project within its original timeline.
(130 marks)
The project management plan should include the following:
• Definition, preparation and definition of subsidiary plans
• Identification and description of stakeholder needs
• Work Breakdown Structure (WBS)
• Plans for the project management Knowledge Areas of:
• project integration management
• project scope management
• project time management
• project cost management
• project quality management
• project human resource management
• project communications management
• project procurement management
• Definition and sequencing of the main project activities
• Main activity resources and durations
• Project schedule, costs and budget
Notes:
• The project charter should include a revised business case for the project and link the project with your organisation’s strategic plan. On the basis of this business case, the project sponsor will make a decision about the future of the project.
• You may assume that the project sponsor has allowed the project timeline to be increased by one (1) month to allow for the scope creep already approved. However, further scope creep is not permitted.
• The project scope management plan should include a section on controlling scope creep
• The project time management plan should include a Gantt chart showing the major project activities.
• The project cost management plan should include all costs reasonably expected to be incurred in delivering the project. These costs may include estimates for ensuring completion of the project.
4. Prepare a plan for executing, monitoring and controlling the project (10 marks).
5. Prepare a plan for any testing and commissioning, and for closing the project
(10 marks)
SUB- TOTAL FOR QUESTION 2 (a) 200 MARKS
Question 2 (b) Report to Project Sponsor
(maximum 1000 words) (50 marks)
Write a report to your Project Sponsor that:
• succinctly outlines the steps you have taken to deliver the project within its original timeframe
(as extended by permitted scope creep of one (1) month)
• explains why they have been taken
• demonstrates how they will enable the project to be completed within its original timeframe
• discusses the additional costs that will be incurred to achieve this target
(50 marks)
SUB- TOTAL FOR QUESTION 2 (b) 50 MARKS
Written Communication (50 marks)
Abstract and table of contents (10 marks)
Structure (10 marks)
Language, style, spelling (10 marks)
Completion in within word count (10 marks)
Setting out and referencing (10 marks)
SUB- TOTAL FOR WRITTEN COMMUNICATION 50 MARKS