ADDITIONAL CASE 1: MANAGE YOUR HEALTH

Note: This case was in the seventh edition of Information Technology Project Management. It has been
updated slightly to match info in the ninth edition.

Part 1: Project Integration Management

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare
services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time
employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing
cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and
suppliers work together to improve the development and delivery of healthcare products and services.
Below are some ideas the IT department has developed for supporting these strategic goals:
1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help
employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the
industry average for employee healthcare premiums, primarily due to the poor health of its
employees. You believe that this application will help improve employee health within one year of its
rollout so that you can negotiate lower health insurance premiums, providing net savings of at least
$30/employee/year for full-time employees over the next four years. This application would include
the following capabilities:
 Allow employees to register for company-sponsored recreational programs, such as soccer,
softball, bowling, jogging, and walking.
 Allow employees to register for company-sponsored classes and programs to help them manage
their weight, reduce stress, stop smoking, and manage other health-related issues.
 Track data on employee involvement in these recreational and health-management programs.
 Offer incentives for people to join the programs and do well in them (e.g., incentives for
achieving weight goals, winning sports team competitions, etc.).
2. Health Coverage Costs Business Model: Develop an application to track employee healthcare
expenses and company healthcare costs. Healthcare premiums continue to increase, and the company
has changed insurance carriers several times in the past
10 years. This application should allow business modeling of various scenarios as well as tracking
and analyzing current and past employee healthcare expenses and company healthcare costs. This
application must be secure and run on the current intranet so several managers and analysts can
access it and download selected data for further analysis. The new application must also import data
from the current systems that track employee expenses submitted to the company and the company’s
costs to the insurance provider. You believe that having this data will help you revise policies
concerning employee contributions to healthcare premiums and help you negotiate for lower
premiums with insurance companies. You estimate that this application would save your company
about $20/employee/year for full-time employees over the next four years and cost about $100,000
to develop.
3. Cross-Selling System: Develop an application to improve cross-selling to current customers. The
current sales management system has separate sections for major product and service categories and
different sales reps based on those products and services. You see great opportunities to increase sales
to current customers by providing discounts when they purchase multiple products and services. You
estimate that this system would increase profits by $1 million each year for the next three years and
cost about $800,000 each year for development and maintenance.
4. Web-Enhanced Communications System: Develop a Web-based application to improve development
and delivery of products and services. There are currently several incompatible systems related to the
development and delivery of products and services to customers. This application would allow
customers and suppliers to provide suggestions, enter orders, view the status and history of orders,
and use electronic commerce capabilities to purchase and sell their products. You estimate that this
 system would save your company about $2 million each year for three years after implementation.
You estimate that the system will take one year and $3 million to develop and require 20 percent of
development costs each year to maintain.
Tasks
1. Summarize each of the proposed projects in the Running Case section using a simple table format
suitable for presentation to top management. Include the name of each project, identify how each one
supports business strategies, assess the potential financial benefits and other benefits of each project,
and provide your initial assessment of the value of each project. Write your results in a one- to two-
page memo to top management, including appropriate back-up information and calculations.
2. Evaluate the four projects in the Running Case section by preparing a weighted scoring model using
the template provided on the companion Web site for this text. Develop at least four criteria, assign
weights to each criterion, assign scores, and then calculate the weighted scores. Print the spreadsheet
and bar chart with the results. Also write a one-page paper that describes this weighted scoring model
and the results.
3. Prepare a business case for the recreation and wellness intranet project. Assume that the project will
take six months to complete and cost about $200,000. Use the business case template provided on the
companion Web site for this text.
4. Prepare a project charter for the recreation and wellness intranet project. Assume that the project will
take six months to complete and cost about $200,000. Use the project charter template provided in
this text and the sample project charter provided in Table 4-1 as guides.
5. Prepare a change request for the recreation and wellness intranet project, using the template provided
on the companion Web site for this text. Be creative when making up information.

Part 2: Project Scope Management

Managers at Manage Your Health, Inc. (MYH) selected Tony Prince as the project manager for the
Recreation and Wellness Intranet Project. The schedule goal is six months, and the budget is $200,000.
Tony has previous project management and systems analysis experience within the company, and he is an
avid sports enthusiast. Tony was starting to put the project team together. He knew he would have to
develop a survey to solicit input from all employees about the new system and make sure it was user-
friendly.
Recall that this system would include the following capabilities:
 Allow employees to register for company-sponsored recreational programs, such as soccer,
softball, bowling, jogging, and walking.
 Allow employees to register for company-sponsored classes and programs to help them manage
their weight, reduce stress, stop smoking, and manage other health-related issues.
 Track data on employee involvement in these recreational and health-management programs.
 Offer incentives for people to join the programs and do well in them (e.g., incentives for
achieving weight goals, winning sports team competitions, etc.).
Assume that MYH would not need to purchase any additional hardware or software for the project.
Tasks
1. Document your approach for collecting requirements for the project. Include at least five
requirements in a requirements traceability matrix.
2. Develop a first version of a project scope statement for the project. Use the template provided on the
companion Web site for this text and the example in Chapter 3 as guides. Be as specific as possible in
describing product characteristics and requirements, as well as all of the project’s deliverables. Be
sure to include testing and training as part of the project scope.
3. Develop a work breakdown structure for the project. Break down the work to Level 3 or Level 4, as
appropriate. Use the template on the companion Web site and samples in this text as guides. Print the
WBS in list form. Be sure the WBS is based on the project charter earlier, the project scope statement
created in Task 2, and other relevant information.
4. Use the WBS you developed in Task 3 to begin creating a Gantt chart using your choice of software.
Do not enter any durations or dependencies. Print the resulting Gantt chart on one page, and be sure
to display the entire Task Name column.
5. Develop a strategy for scope validation and change control for this project. Write a short paper
summarizing key points of the strategy.

Part 3: Project Schedule Management

Tony Prince is the project manager for the Recreation and Wellness Intranet Project. Team members
include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a
business analyst; and Bonnie, another programmer/analyst. Other people are supporting the project from
other departments, including Yusaff from human resources and Cassandra from finance. Assume that
these are the only people who can be assigned and charged to work on project activities. Recall that your
schedule and cost goals are to complete the project in six months for under $200,000.
Tasks
1. Review the WBS and Gantt chart you created for Tasks 3 and 4 in Chapter 5. Propose three to five
additional activities that would help you estimate resources and durations. Write a one-page paper
describing these new activities.
2. Identify at least eight milestones for the Recreation and Wellness Intranet Project. Write a short paper
describing each milestone using the SMART criteria. Discuss how determining these milestones
might add activities or tasks to the Gantt chart. Remember that milestones normally have no duration,
so you must have tasks that will lead to completing the milestone.
3. Using the Gantt chart you created earlier and the new activities and milestones you proposed in Tasks
1 and 2 above, create a new Gantt chart using Project 2016. Estimate the task durations and enter
dependencies as appropriate. Remember that your schedule goal for the project is six months. Print
the Gantt chart and network diagram, each on one page.

Part 4: Project Cost Management

Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been
asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a
solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to
complete the project in six months for under $200,000.
Tasks
1. Prepare and print a one-page cost model for this project using spreadsheet software. Use the
following WBS, and be sure to document your assumptions in preparing the cost model. Assume a
labor rate of $100/hour for the project manager and $60/hour for other project team members.
Assume that none of the work is outsourced, labor costs for users are not included, and there are no
additional hardware costs. The total estimate should be $200,000.
1. Project management
2. Requirements definition
3. Web site design
3.1 Registration for recreational programs
3.2 Registration for classes and programs
3.3 Tracking system
3.4 Incentive system
4. Web site development
4.1 Registration for recreational programs
4.2 Registration for classes and programs
4.3 Tracking system
4.4 Incentive system
5. Testing
6. Training, rollout, and support
2. Using the cost model you created in Task 1, prepare a cost baseline by allocating the costs by WBS
for each month of the project.
3. Assume that you have completed three months of the project. The BAC was $200,000 for this six-
month project. You can also make the following assumptions:
PV = $120,000
EV = $100,000
AC = $90,000
a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule
performance index (SPI) for the project?
b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under bud get or over
budget?
c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project
performing better or worse than planned?
d. Use the SPI to estimate how long it will take to finish this project.
e. Sketch an earned value chart using the preceding information. See Figure 7-5 as a guide.

Part 5: Project Quality Management

The Recreation and Wellness Intranet Project team is working hard to ensure that the new system they
develop meets expectations. The team has a detailed scope statement, but the project manager, Tony
Prince, wants to make sure they’re not forgetting requirements that might affect how people view the
quality of the project. He knows that the project’s sponsor and other senior managers are most concerned
with getting people to use the system, improve their health, and reduce healthcare costs. Users want the
system to be user-friendly, informative, fun to use, and fast.
Tasks
1. Develop a list of quality standards or requirements related to meeting the stakeholder expectations
described in the Running Case. Also provide a brief description of each requirement. For example, a
requirement might be that 90 percent of employees have logged into the system within two weeks
after the system rolls out.
2. Based on the list created for Task 1, determine how you will measure progress on meeting the
requirements. For example, you might have employees log into the system as part of the training
program and track who attends the training. You could also build a feature into the system to track
usage by user name, department, and other criteria.
3. After analyzing survey information, you decide to create a Pareto chart to see which types of
recreational programs and company-sponsored classes generated the most interest. First, create a
spreadsheet in Excel using the data in the following table. List the most frequently requested
programs or classes first. Use the template on the text’s companion Web site and check your entries
so the resulting chart looks similar to the one in the text.
Requested Programs/Classes # of Times Requested
Walking program 7,115
Volleyball program 2,054
Weight reduction class 8,875
Stop smoking class 4,889
Stress reduction class 1,894
Soccer program 3,297
Table tennis program 120
Softball program 976

Part 6: Project Resource Management

Several people working on the Recreation and Wellness Intranet Project are confused about their
responsibilities for the testing portion of the project. Recall that the team members include you, a
programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a business
analyst; and Bonnie, another programmer/analyst. Tony Prince is the project manager, and he has been
working closely with managers in other departments to make sure everyone knows what’s going on with
the project.
1. Prepare a responsibility assignment matrix based on the following information: The main tasks for
testing include writing a test plan, unit testing, integration testing for each of the main system
modules (registration, tracking, and incentives), system testing, and user acceptance testing. In
addition to the project team members, a team of user representatives is available to help with testing,
and Tony has also hired an outside consulting firm to help as needed. Prepare a RACI chart to help
clarify roles and responsibilities for these testing tasks. Document key assumptions you make in
preparing the chart.
2. The employees of the outside consulting firm and the user representatives have asked you to create a
resource histogram to show how many people you think the project will need for testing, and to show
when testing will occur. Assume that the consulting firm has junior and senior testers and that the
user group has workers and managers. You estimate that you’ll need the involvement of both groups
in testing over a period of six weeks. Assume that you’ll need one senior tester for all six weeks, two
junior testers for the last four weeks, two user-group workers for the first week, four user-group
workers for the last three weeks, and two user-group managers for the last two weeks. Create a
resource histogram like the one in Figure 9-6 based on this information.
3. One of the issues Tony identified is the ability to work effectively with the user group during testing.
According to MBTI classifications, Tony knows that several of his project team members are very
introverted and strong thinking types, while several members of the user group are very extroverted
and strong feeling types. Write a one-page paper that describes options for resolving this issue,
focusing on using a confrontation/problem-solving approach.

Part 7: Project Communications Management

Several issues have arisen on the Recreation and Wellness Intranet Project. The person from the HR
department who was supporting the project left the company, and now the team needs more support from
that group. A member of the user group that supports the project is extremely vocal and hard to work
with, and other users can hardly get a word in at meetings. The project manager, Tony, is getting weekly
status reports from all of his team members, but many of them do not address obvious challenges that
people are facing. The team is having difficulty deciding how to communicate various project reports and
documents and where to store all of the information being generated. Recall that the team members
include you, a programmer/analyst and aspiring project manager; Patrick, a network specialist; Nancy, a
business analyst; and Bonnie, another programmer/analyst.
1. Summarize three different communications media that could be used for getting more support from
the HR department and which you think would be most effective.
2. Prepare a partial communications management plan to address some of the challenges mentioned in
the previous paragraph.
3. Prepare a sample of a good weekly progress report that could be used for this project. Include a list of
tips to help team members provide information on these reports.
4. Write a one-page paper describing two suggested approaches for communicating with the hard-to-
work-with user.

Part 8: Project Risk Management

Tony and his team identified some risks during the first month of the Recreation and Wellness Intranet
Project. However, all they did was document the risks in a list. They never ranked the risks or developed
any response strategies. Because the project has had several problems, such as key team members leaving
the company, users being uncooperative, and team members not providing good status information, Tony
has decided to be more proactive in managing risks. He also wants to address positive risks as well as
negative risks.
1. Create a risk register for the project. Identify six potential risks, including risks related to the
problems described in the previous paragraph. Include negative and positive risks.
2. Plot the six risks on a probability/impact matrix. Also assign a numeric value for the probability and
impact of each risk on meeting the main project objective. Use a scale of 1 to 10 in assigning the
values, with 1 representing the lowest values. For a simple risk factor calculation, multiply the
probability score and the impact score. Add a column called Risk Score to your risk register to the
right of the impact column. Enter the new data in the risk register. Write your rationale for how you
determined the scores for one of the negative risks and one of the positive risks.
3. Develop a response strategy for one of the negative risks and one of the positive risks. Enter the
information in the risk register. Also write a separate paragraph describing what specific tasks would
be required to implement the strategy. Include time and cost estimates for each strategy as well.

Part 9: Project Procurement Management

Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to outsource
employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also
wants to outsource the incentive program designed to motivate employees to use the system and improve
their health. MYH feels that the right outside company could get people excited about the system and
provide a good incentive program. As part of the seller selection process, MYH will require interviews
and samples of similar work to be presented to a review team. Recall that MYH has more than 20,000
full-time employees and more than 5,000 part-time employees. Assume that the work would involve
several instructor-led training sessions, developing a training video that employees could view from the
company’s intranet site, developing a training manual for the courses that anyone can download from the
intranet site, developing an incentive program for using the system and improving health, creating surveys
to assess the training and incentive programs, and developing monthly presentations and reports on the
work completed. The initial contract would last one year, with annual renewal options.
1. Suppose that your team has discussed management’s request. You agree that it makes sense to have
another organization manage the incentive program for this new application, but you do not think it
makes sense to outsource the training. Your company has extensive experience doing internal
training. You also know that your staff will have to support the system, so you want to develop the
training to minimize future support calls. Write a one-page memo to senior management stating why
you think the training should be done in-house.
2. Assume that the source selection criteria for evaluating proposals are as follows:
 Management approach, 15%
 Technical approach, 15%
 Past performance, 20%
 Price, 20%
 Interview results and samples, 30%
Using the weighted scoring model template, create a spreadsheet that could be used to enter ratings
and calculate scores for each criterion and total weighted scores for three proposals. Enter scores for
Proposal 1 as 80, 90, 70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and
95. Enter scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph to the spreadsheet that
summarizes the results and your recommendation. Print your results on one page.
3. Draft potential clauses that you could include in the contract to provide incentives to the seller based
on MYH achieving its main goal of improving employee health and lowering healthcare premiums as
a result of this project. Be creative in your response, and document your ideas in a one-page paper.

Part 10: Project Stakeholder Management

Recall from previous chapters that the following people are involved in the Manage Your Health, Inc.
(MYH) Recreation and Wellness system:
 Tony Prince, the project manager
  Hillary, the project sponsor
 You and Bonnie, programmer/analysts in the IT department
 Patrick, a network specialist in IT
 Nancy, a business analyst in IT
 Gayle, the sponsor and VP of human resources
 Yusaff, a human resources specialist
 Cassandra, a finance specialist
 Supplier A, who was hired to handle training on the new system and manage an incentives
program
 20,000 full-time employees and 5,000 part-time employees, all of whom are potential users of the
new system
1. Prepare a stakeholder register using the preceding information. Make up other information as needed.
2. Create a stakeholder management strategy for the project, focusing on members who are not on the
project team, such as Hillary, Gayle, the lead person from Supplier A, and a vocal member of a user
group testing the new system. Be creative in developing potential management strategies.
3. Prepare an issue log for the project. Include past issues discussed in prior chapters, such as Yusaff
leaving the company, a difficult and vocal member of the user group, and unproductive meetings.
Make up three additional potential issues.
 MANAGE YOUR HEALTH RUNNING CASE SOLUTION
CHAPTER 4
1. Answers will vary. Below is a table summarizing each project. The memo information will vary.
Project Name Business Strategy Financial Benefits Other Benefits Initial Assessment
1. Recreation &
Wellness Intranet reducing costs $2.4M over 4 years improve heath high potential, upfront
less costs and productivity, costs and need to
lower premiums persuade people to
join teams/programs

2. Health Coverage reducing costs $1.6M over 4 years negotiate lower high potential, cost $100K
Business Model less costs premiums upfront

3. Cross-Selling System increase cross selling $3M over 3 years increased sales, medium, cost $800K/year
less costs better customer
service

4. Web-Enhanced
Comm. System exploit Web $6M over 3 years improve comm. low, cost $3M to develop
and $600K/year to maintain

2. Answers will vary. Below is one potential weighted decision matrix. Note that Projects 1 and 2 look most
promising.
Weighted Scoring Model for MYH Inc.
Created by: Bobby S. Date: 6/17/2005
Criteria Weight Project 1 Project 2 Project 3 Project 4
tie to business strategy 10% 90 90 90 90
upfront costs 25% 70 80 20 10
potential net savings 25% 90 70 50 20
realistic technology 15% 90 70 60 50
in-house expertise 10% 90 80 60 50
potential resistance 15% 50 90 90 50
Weighted Project Scores 100% 79 78.5 55 36.5

3. Below is one potential solution. Students should make some assumption about maintenance costs for the
system. They might also not start benefits in year 1. Note the strong financial projections. Payback occurs in less
than a year, the ROI is 444%, and the NPV is over $1.6 million. You could pull up the file and change some of the
assumptions to see the impact on the numbers.
Business Case for Recreation and Wellness Project
1.0 Introduction/ Background
MYH, Inc. currently pays 20 percent more than the industry average for employee health care premiums,
primarily due to the poor health of its employees. Improving employee health can reduce premiums and
provide other benefits to the company and individuals.
2.0 Business Objective
MYH, Inc. provides a variety of health care services to people across the globe. Unfortunately, we have
been neglecting the health of our own employees. We pay 20 percent more than the average for employee
health care premiums, which is unacceptable. By improving employee health, we can negotiate lower
premiums and improve productivity.
3.0 Current Situation and Problem/Opportunity Statement
The company currently does not have a coordinated program to promote employee wellness. It was not
until the CFO reviewed our increasing costs for employee health care benefits that we discovered that our
own employees were less healthy than average. By developing a comprehensive program to promote
wellness, track employee involvement and progress, and provide incentives for improved health, MYH,
Inc. can negotiate lower premiums and have a more productive workforce.
4.0 Critical Assumption and Constraints
The proposed solution is to organize current services and provide easy access to new services via a
Recreation and Wellness Intranet Project. The new system must run on existing hardware and software,
and it should require minimal technical support. It must be easily accessible by employees yet secure from
unauthorized users.
5.0 Analysis of Options and Recommendation
There are three options for addressing this opportunity:
1. Do nothing. We can continue to operate without this new project.
2. Require employees to pay even higher rates for insurance themselves.
3. Design and implement the new intranet capabilities in-house using mostly existing hardware and
software.
4. Outsource the work involved in providing a system to track and manage employee progress toward
improving health.
Based on discussions with stakeholders, we believe that option 3 is the best option.
6.0 Preliminary Project Requirements
The main features of Recreation and Wellness Intranet site include the following:
 Allow employees to register for company-sponsored recreational programs, such as soccer,
softball, bowling, jogging, walking, and other sports.
 Allow employees to register for company-sponsored classes and programs to help them manage
their weight, reduce stress, stop smoking, and manage other health-related issues.
 Track data on employee involvement in these recreational and health-management programs.
 Offer incentives for people to join the programs and do well in them (i.e., incentives for achieving
weight goals, winning sports team competitions, etc.).
7.0 Budget Estimate and Financial Analysis
A preliminary estimate of costs for the entire project is $200,000, based primarily on the costs for internal
staff to develop the new system. After the project is completed, maintenance costs of $50,000 are included
for each year, primarily to update the information and provide necessary changes.
Projected benefits are based on reducing the insurance cost per employee by $30 each year for
four years. Total projected benefits, therefore, are about $600,000 per year for four years.
Exhibit A summarizes the projected costs and benefits and shows the estimated net present value
(NPV), return on investment (ROI), and year in which payback occurs. It also lists assumptions made in
performing this preliminary financial analysis. All of the financial estimates are very encouraging. The
estimated payback is within one year.. The NPV is over $1.6 million, and the discounted ROI based on a
four-year system life is excellent at 444 percent.
8.0 Schedule Estimate
The sponsor would like to see the project completed within six months, but there is some flexibility in the
schedule. We also assume that the new system will have a useful life of at least four years.
9.0 Potential Risks
There are several risks involved with this project. The foremost risk is a lack of interest in the new system
by employees as well as the risk that we may not be able to negotiate lower insurance premiums. We also
need to provide useful programs and incentives to realize improved employee health. The main business
risk is investing the time and money into this project and not being able to recoup the costs..
10.0 Exhibits
Exhibit A: Financial Analysis for Recreation and Wellness Project
 Financial Analysis for Recreation and Wellness Project
Created by: Kathy Schwalbe Date: Feb. 7, 2005

Discount rate 8%

Year
0 1 2 3 4 Total
Costs 200,000 50,000 50,000 50,000 50,000
Discount factor 1.00 0.93 0.86 0.79 0.74
Discounted costs 200,000 46,296 42,867 39,692 36,751 365,606

Benefits 0 600,000 600,000 600,000 600,000

Discount factor 1.00 0.93 0.86 0.79 0.74
Discounted benefits 0 555,556 514,403 476,299 441,018 1,987,276

Discounted benefits - costs (200,000) 509,259 471,536 436,608 404,266 1,621,670 NPV
Cumulative benefits - costs (200,000) 309,259 780,796 1,217,403 1,621,670

ROI 444%
Payback before end of year 1
Assumptions
Assumed ongoing costs to support the system of 25% of total development cost each year.
Entered benefits in year 1.
Used estimated costs as provided.
Benefits based on $30/employee, 20,000 employees, each year for 4 years.

4. Below is one potential solution. Names were not given at this point but are provided in the next chapter.
Project Charter
Project Title: MYH Recreation and Wellness Intranet Project
Project Start Date: Feb. 1 Projected Finish Date: August 1
Budget Information: $200,000 is the estimated project cost

Project Manager: Tony Prince, [email protected], (662)558-4888

Project Objectives: By providing this application on our current Intranet, we can help employees improve their
health, resulting in lower health care costs and improved productivity. The system will allow employees to register
for company-sponsored recreational programs and wellness classes, track data on involvement in these programs,
and offer incentives for people to join the programs and do well in them.

Approach:
1. Select the project team
2. Determine project requirements
3. Develop the application following corporate standards and using a prototyping approach
4. Use good testing procedures
5. Provide training and develop support process
Roles and Responsibilities
Role Name Organization/ Contact Information
Position
Project sponsor Manager X MYH, senior manager [email protected]
Project manager Tony Prince MYH, manager [email protected]
Project team members You, Patrick, Nancy, MYH IT, HR, finance
Bonnie, Cassandra
CIO Manager Y Senior manager
CFO Manager Z Senior manager

Sign-off: (Signatures of all above stakeholders. Can sign by their names in table above.)

Comments: (Handwritten or typed comments from above stakeholders, if applicable)

5. The change request will vary.
Chapter 5
1. Answers will vary.
2. Answers will vary. Below is a sample project scope statement. Be sure the students follow the example in the text
but include information provided for this case.
Scope Statement (Draft Version)
Project Title: Recreation and Wellness Intranet Project
Date: Feb. 10 Prepared by: Tony Prince, Project Manager, (612) 555-5896,
[email protected]
Project Justification: Senior management at MYH, Inc. suggested this project to help improve employee
health and reduce health care premiums, which are 20 percent above the industry average. Estimated savings
are $30/employee per year for four years..
Product Characteristics and Requirements:
1. The new system must run on the existing intranet using current hardware and software as much
as possible.
2. The new system must be very user-friendly.
3. The main requirements of the system are to:
 Allow employees to register for company-sponsored recreational programs, such as soccer,
softball, bowling, jogging, walking, and other sports.
 Allow employees to register for company-sponsored classes and programs to help them manage
their weight, reduce stress, stop smoking, and manage other health-related issues.
 Track data on employee involvement in these recreational and health-management programs.
 Offer incentives for people to join the programs and do well in them (i.e., incentives for
achieving weight goals, winning sports team competitions, etc.).
4.
Summary of Project Deliverables
Project management-related deliverables: Business case, charter, team contract, scope statement, WBS,
schedule, cost baseline, status reports, final project presentation, final project report, lessons-learned report,
and any other documents required to manage the project.
Product-related deliverables:
1. Requirement definition: Define the requirements for the new system. Includes developing and
administering a survey to current employees to help determine desired programs, courses, incentives,
and content and features for the new system.
2. Web site design: An initial design of the new intranet site will include a site map, suggested formats,
appropriate graphics, and design of the required features like registration, tracking, etc. The final
design will incorporate comments from users on the initial design.
3. Web site development: The intranet site will include content for the programs, classes, and incentives
as well as features for registration, tracking, and incentives management.
4. Testing: Testing will include the development of test plans to document how the system will be
tested, who will do the testing, and how bugs will be reported.
5. Training: Training will be provided for the new system, both on-line and in-class.
6. Roll out and support: There will be a well-defined plan for rolling out the new system, supporting
users, and providing updates, enhancements, or other support, as required.
Project Success Criteria: Our goal is to complete this project within six months for no more than $200,000.
The main goal is improve employee health to negotiate lower insurance premiums. Even having this program
should help us negotiate lower premiums, and tracking improvements in employee health will provide solid
evidence for lower premiums and have other benefits, like improved morale and productivity.

3. There are several ways to create a WBS for this project. You could provide more guidance on how much detail
you expect. Below is one possible solution, with only two items broken down in a bit more detail.
1. Project Management
2. Requirements Definition
3. Web Site Design
3.1 Registration for recreational programs
3.2 Registration for classes and programs
3.3 Tracking system
 3.4 Incentive system
4. Web Site Development
4.1 Registration for recreational programs
4.2 Registration for classes and programs
4.3 Tracking system
4.4 Incentive system
5. Testing
6. Training, Roll Out, and Support

4. The WBS from number 3 above should be entered in Project 2016, MindView, or other project management
software, with appropriate indenting and numbering. Below is a screen shot based on the shorter WBS above.

5. Answers will vary. See some of the suggestions provided in this chapter as well as ideas for change control from
chapters 3 and 4.

Chapter 6
1. Answers will vary. You could give some suggestions based on the WBS provided for Chapter 5, as repeated
below:
1. Project Management
2. Requirements Definition
3. Web Site Design
3.1 Registration for recreational programs
3.2 Registration for classes and programs
3.3 Tracking system
3.4 Incentive system
4. Web Site Development
4.1 Registration for recreational programs
4.2 Registration for classes and programs
4.3 Tracking system
4.4 Incentive system
5. Testing
6. Training, Roll Out, and Support
2. Answers will vary. Milestones can be related to any of the WBS categories above and often include completion of
key deliverables, approvals, etc.
3. Answers will vary. Below is one possible solution.
Chapter 7
1. Answers will vary. Below is one possible solution. Note the major assumption that all of the project manager’s time was
charged under the project management category, even though he assisted in all areas.
Recreation and Wellness Project Cost Estimate

# Units/Hrs. Cost/Unit/Hr. Subtotals WBS Level 1 Totals % of Total

WBS Items
1. Project Management $44,000 22%
Project manager* 320 $100 $32,000
Project team members 200 $60 $12,000
2. Requirements Definition 150 $60 $9,000 $9,000 5%
3.Web Site Design $36,000 18%
3.1 Registration for recreational programs 150 $60 $9,000
3.2 Registration for classes and programs 150 $60 $9,000
3.3 Tracking system 150 $60 $9,000
3.4 Incentive system 150 $60 $9,000
4. Web Site Development $72,000 36%
4.1 Registration for recreational programs 300 60 $18,000
4.2 Registration for classes and programs 300 60 $18,000
4.3 Tracking system 300 60 $18,000
4.4 Incentive system 300 60 $18,000
5. Testing 250 60 $15,000 $15,000 8%
6. Training, Roll Out, and Support 400 60 $24,000 $24,000 12%
Total project cost estimate $200,000
* The PM also assisted in other areas, but all of his costs are included in the project management category.
2. Answers will vary, but the total costs should match the numbers from task 1. Below is one possible solution.
Recreation and Wellness Project Cost Baseline
Month
1 2 3 4 5 6 Total
WBS Items
1. Project Management $ -
Project manager* $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $ 32,000
Project team members $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $ 12,000
2. Requirements Definition $8,000 $1,000 $ 9,000
3.Web Site Design
3.1 Registration for recreational programs $6,000 $3,000 $ 9,000
3.2 Registration for classes and programs $6,000 $3,000 $ 9,000
3.3 Tracking system $ 9,000 $ 9,000
3.4 Incentive system $ 5,000 $ 4,000 $ 9,000
4. Web Site Development $ -
4.1 Registration for recreational programs $3,000 $ 15,000 $ 18,000
4.2 Registration for classes and programs $3,000 $ 15,000 $ 18,000
4.3 Tracking system $8,000 $10,000 $ 18,000
4.4 Incentive system $18,000 $ 18,000
5. Testing $ 15,000 $ 15,000
6. Training, Roll Out, and Support $ 24,000 $ 24,000
Total project cost estimate $15,333 $20,333 $33,333 $49,333 $50,333 $31,333 $ 200,000
* The PM also assisted in other areas, but all of his costs are included in the project management category.
3. a.
 Cost variance = EV-AC=$100,000 - $90,000 = $10,000
 Schedule variance = EV-PV=$100,000-$120,000=-$20,000
 CPI=EV/AC=$100,000/$90,000 =111% or 1.11.
 SPI=EV/PV=$100,000/$120,000=83% or .83
b. The project is under budget and behind schedule.
c. EAC=BAC/CPI=$200,000/1.11=$180,180.
The project is performing better than planned since the new estimate to complete it is almost $20,000 less than
planned.
d. The estimated time to complete the project =6months/.83=7.23 months. The project is projected to take 1.23
months longer than planned.
e. The chart should resemble Figure 7-5, but the EV line will be above the AC line.

Chapter 8
1. Answers will vary. Below are a few examples of quality standards or requirements related to meeting stakeholder
expectations.

90 percent of employees have logged into the system within two weeks after the system rolls out.

90 percent of employees have completed training on the system within four weeks after the system rolls
out.
 The system has helped identify how 25% of employees can improve their health.
 25% of employees have entered goals for improving their health into the system and are taking actions to
improve their health by signing up for programs, courses, etc.
 Benchmarks have been established for determining how user-friendly and fast the system should be.
2. Answers will vary. Below is one example based on one of the items listed in task 1.
To measure if 90 percent of employees have logged into the system within two weeks after the system rolls out is
pretty straight-forward. Since the IT department will need to establish the log-ins, the system should have the names
of all employees and the total count. A report could generate the total number of people who have logged in and
identify who has not for follow-up action.
3. Below is a solution.
Requested Programs/Classes # of Times Requested % of Total Cum %
Weight reduction class 8,875 30.4% 30.4%
Walking program 7,115 24.3% 54.7%
Stop smoking class 4,889 16.7% 71.5%
Soccer program 3,297 11.3% 82.7%
Volleyball program 2,054 7.0% 89.8%
Stress reduction class 1,894 6.5% 96.2%
Softball program 976 3.3% 99.6%
Table tennis program 120 0.4% 100.0%
Total requests 29,220

10,000 120.0%

9,000
100.0%
8,000

7,000
80.0%
6,000

5,000 60.0%

4,000
40.0%
3,000

2,000
20.0%
1,000

0 0.0%
Weight Walking Stop Soccer Volleyball Stress Softball Table tennis
reduction program smoking program program reduction program program
class class class

Chapter 9
1. Below is a possible solution.
Project Team User Reps Outside Firm Project Manager
Writing the test plan R I C A
Unit testing R I C A
Integration testing for each module I I R A
User acceptance tesing C R I A

Assumptions:
Same responsibilities for all modules
2. Below is a solution.

10
9
Number of People

8
7
6
5
4
3
2
1
0
1 2 3 4 5 6

Week

Junior testers Senior testers

User-group workers User-group managers

3. Answers will vary. Tony could have the people involved attend some team-building sessions to get to know
each other and to learn how to work together more effectively.

Chapter 10
1. Answers will vary.
2. Answers will vary. See the sample progress report in chapter 3. Tips should include how to bring up issues and
challenges without feeling inadequate.
3. Answers will vary. The general approaches to conflict management include confrontation/problem-solving,
compromise, smoothing, forcing, withdrawal, and collaborating. Suggestions might include a meeting between
the project manager and the hard-to-work-with user to hear firsthand what is happening. Additional meetings
may be needed with the user’s boss and other team members. Different approaches for collecting suggestions on
resolving the conflict should be used, such as written, anonymous suggestions or using a facilitator.
Chapter 11
1. Answers will vary. Below is part of a risk register.
Partial Risk Register
Risk Description Category Root Cause Triggers Potential Responses
Attrition Key team members Staffing Lack of incentives Late, lack of More personal attention,
leaving co. to stay interest incentives to stay
Uncoop. Users are not Conflict No plan for Poor team Develop a conflict
Users cooperating, causing conflict manage- dynamics management plan, provide
problems ment training
Poor info Not getting complete Communications No guide-lines for Poor status reports Provide guidelines and
status info creating info personal training
Improve team Several team Health/morale Lack of attention More energy, less Provide incentives to have
health members want to to health sick days team improve health, contest
improve health for participation/ improvement
Earn bonuses If team does well, Incentives Desire to do well Meeting/beating Develop plan for earning
could get bonuses plans, good mgt bonuses
feedback

2. Answers will vary based on task 1 and values assigned for probability and impact.
3. Answers will vary.

Chapter 12
1. Answers will vary. The memo should provide solid justification for doing the training in-house.
2. Below is a solution for the weighted scoring model. Since Proposal 2 has the highest weighted score, it should
be recommended first. Proposal 2, however, is not far behind, not is proposal 3. The evaluation team might want to
revisit their weights and ratings to make sure they are making the best decision.
Proposal 1 Proposal 2 Proposal 3
Criteria Weight Rating Score Rating Score Rating Score
Management approach 15% 80 12 90 13.5 60 9
Technical approach 15% 90 13.5 50 7.5 90 13.5
Past performance 20% 70 14 95 19 90 18
Price 20% 90 18 80 16 80 16
Interview results and samples 30% 80 24 95 28.5 65 19.5
Total score 100% 81.5 84.5 76
3. Answers will vary. There might be a clause to provide profit sharing if the incentive program is well run and
results in reducing insurance premiums by a certain amount.

Chapter 13
1-3. Answers will vary.