TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

938 Aurora Blvd. Cubao Quezon City

PPM003:
PROJECT PLANNING AND MANAGEMENT
Professor/Instructor: Maria Vicky S. Solomo

PROJECT MANAGEMENT PLAN

[Title of the Project]

Submitted by:

Abecina, Roanne
Garing, Arianne Joy
Luna, Jocelle
Obmina, Ana May

March 2010
Acknowledgment
Table of Contents
Table of Contents.................................................................................................................3
I. Project Overview.........................................................................................................3
A. Project Name.........................................................................................................3
B. Brief Description of the Project............................................................................3
C. Sponsor’s Name....................................................................................................3
D. Project Manager and Key Team Members...........................................................3
E. Deliverables of the Project....................................................................................3
F. Reference Materials...............................................................................................3
G. Definitions and Acronyms....................................................................................3
1. Definitions.........................................................................................................3
2. Acronyms..........................................................................................................3
II. Project Organization....................................................................................................3
A. Organizational Chart.............................................................................................3
B. Project Responsibilities.........................................................................................3
III. Management and Technical Approaches..................................................................3
A. Management Objectives........................................................................................3
B. Project Managements............................................................................................3
C. Risk Management.................................................................................................3
D. Project Staffing.....................................................................................................3
1. Project Manager................................................................................................3
2. Graphical User Interface Team.........................................................................3
3. Database Administrator Team...........................................................................3
4. Domain Programming Team.............................................................................3
5. In-house Quality Team......................................................................................3
6. Business Analyst...............................................................................................3
7. Senior Network Engineer..................................................................................3
8. Others................................................................................................................3
E. Technical Processes..............................................................................................3
IV. Description of Work to Perform...............................................................................3
A. Major Work Packages...........................................................................................3
1. Conduct domain analysis...................................................................................3
2. Prepare customer statement of requirements.....................................................3
3. Determine task resources...................................................................................3
4. Determine task durations...................................................................................3
5. Determine task dependencies............................................................................3
6. Create, review and finalize Gantt chart.............................................................3
7. Prepare purchase order......................................................................................3
8. Track shipping...................................................................................................3
9. Setup Equipment...............................................................................................3
10. Design User Interface........................................................................................3
11. Design Website..................................................................................................3
12. Design Database................................................................................................3
13. Develop User Interface......................................................................................3
14. Develop Database..............................................................................................3
 15.
Develop User Verification Subsystem..............................................................3
16.
Develop Inventory Reorder Subsystem.............................................................3
17.
Develop Delivery Subsystem............................................................................3
18.
Develop Sales Subsystem..................................................................................3
19.
Develop Returns Subsystem..............................................................................3
20.
Develop Data Management Subsystem.............................................................3
21.
Develop Reports Generation Subsystem...........................................................3
22.
Construct Website.............................................................................................3
23.
Develop Beta Version.......................................................................................3
24.
Conduct System Test.........................................................................................3
25.
Conduct User Acceptance Test.........................................................................3
26.
Develop final version of the program................................................................3
27.
Develop a user’s manual...................................................................................3
28.
Conduct training................................................................................................3
B. Key Deliverables...................................................................................................3
V. Project Schedule Information......................................................................................3
A. Summary Schedule...............................................................................................3
B. Detailed Schedule.................................................................................................3
C. Other Schedule-Related Information....................................................................3
VI. Budget.......................................................................................................................3
A. Summary Budget...................................................................................................3
B. Detailed Budget.....................................................................................................3
I. Project Overview
A. Project Name

Inventory Management System for a Furniture Exporter

B. Brief Description of the Project

This project aims to provide our client a secure, efficient and user-friendly
Inventory Management System to assist them in addressing the inventory
problems they face while going about their business.

The following objectives will be met by the project:

 The system should assign access rights to certain users such as the
warehouse personnel who has access only to the functions related to
ordering and receiving new inventory, and the salesperson, who can
only perform functions involving the sale or return of inventory, and
the administrator, who should have access rights to all. It should add
new authorized persons or remove the existing ones.

 Each authorized user should log in using a valid username and

password.

 The system should keep a record of all products offered by the store.
The record includes the product code, product name, price, and
number of stocks on hand.

 When recording the delivery of new inventory from suppliers, the

warehouse personnel should be shown an Acknowledgement Form
where he/she should be able to specify the date of delivery and the
supplier name, list the products received, and for each product indicate
the quantity and price. The system should automatically increase the
current count of a product by the quantity received and record the
transaction.

 When recording a sale, the salesperson should be allowed to either

enter the product name/code or select from a list, then input the
quantity sold. The price per unit and the total amount of sale should
populate on the screen. Upon confirming the transaction, the system
should automatically decrease the current count of the corresponding
products by the quantity sold and create a record of the transaction.
The record should include the product code, price, quantity sold, and
username of the person who made the sale.
 When a customer returns a product, the salesperson should be able to
verify that the product was brought from the store by searching for the
sales transaction by date and/or customer name. The system should
then record the data for two kinds of scenarios: Refund. The system
should automatically increase the count of the product returned and
record the transaction. Exchange. Aside from increasing the count of
the product returned, the count of the product given to the customer in
exchange should be decreased. The transaction details should also be
recorded. Transaction details that the salesperson needs to enter
include the date, product code, quantity returned, and whether it was
exchanged or refunded.

 When products are returned to a supplier, the warehouse personnel

should be able to choose from the list of inventory, enter the quantity
to be returned, and note down the specific defects of the product to be
returned. This should automatically reduce the current count of the
products returned. The system should keep a record of the transaction.

 If an inventory audit finds a discrepancy between the physical

inventory count and the inventory control system count, the
administrator should be allowed to make adjustments in the inventory
database. He/she should be able to search for the product by name or
code, and then change the inventory count for that product. A
transaction record describing the change should be created. The record
should contain the date, the product code, the old amount, the new
amount, and the username of the person who made the change.

 The system should keep a supplier database containing the company’s

name, a contact person’s name and telephone number, and the
company’s address.

 The administrator should be able to set a critical level for each

product, and the system should recognize when the critical level has
been reached. A report displaying which products have reached critical
levels should be shown to the warehouse personnel on a daily basis.

 The registered customers should be able to submit an order form

through the company website.
C. Sponsor’s Name

Tim Roberti
Chief Executive Officer
AE Design Concepts, Inc.

Upper Tingub 
Mandaue City, 6014 Cebu 
Phone: (63 32) 343 9169
Fax: (63 32) 343 9170
E-mail: aedesignconcepts@hotmail.com

D. Project Manager and Key Team Members

Project Manager: Arianne Joy Garing

Key Team Members: Roanne Abecina
Jocelle Luna
Ana May Obmina

E. Deliverables of the Project

Listed below are the products that will be produced as part of the project and
a brief description for each. They are explained in more detail in the section about
the work to perform.

Deliverable Type Description

Business case Document Explains the business need for the project
Project charter Document Recognizes the existence of the project
Team contract Document Lists the expectations of team members
from each other
Customer statement Document Lists what the user should be able to do
of requirements using the system or what the system
should do automatically
Project scope Document Clearly defines the work to be done
statement
Communication plan Document Guides project communications by
defining the kinds of information are
needed by stakeholders, and determining
when and how they are to be provided
Quality assurance Document Lists the activities related to satisfying the
plan relevant quality standards of the project
Change management Document Describes the processes related to
plan managing and communicating changes in
 the project
Test plan Document Describes how the system will be tested
Training plan Document Describes the plan for training clients in
the use of the system
Work breakdown Document Lists the activities required to accomplish
structure (WBS) the project and its objectives
Schedule baseline Document The approved planned schedule for the
project, used to measure project progress
and schedule performance
Cost baseline Document The approved time-phased budget for the
project, used to measure and monitor cost
performance
Risk management Document Describes the procedures for managing
plan risk throughout the project
User inputs Document Compilation of user feedback, comments,
and suggestions
Server Hardware Contains the server software and enables
the sharing of files and resources in the
network
Client computers Hardware Computers that serve as the users’
workstations. They request access to
information and resources, and are
connected to the server as clients.
Router switch Hardware Delivers routing functionality along with
traditional switching capabilities for the
network
Modem Hardware Needed to connect to the Internet.
Firewall and VPN Hardware Provides protection of private information
device by preventing unauthorized access to or
from the network
Operating system Software Provides the software platform on top of
which application programs like the
Inventory Management System can run
User interface design Document Describes how the system would look like
to a user
Website design Document Describes how the website would look
like to clients and guests
Database design Document Describes how information will be stored
in the database so they can be used for
different processes
User interface Software Implements the user interface design
subsystem
Database subsystem Software Implements the database design
User verification Software Enables the user to log in to the system
subsystem using a username and password. It also
permits access of users only to those
 functions that they have access rights to
Inventory reorder Software Enables the user to prepare a purchase
subsystem order to replenish stocks, and submit it for
approval. Once approved, it may be
printed and sent out to the appropriate
supplier
Delivery subsystem Software Enables the user to record the acceptance
of new stocks when they are delivered by
a supplier
Sales subsystem Software Enables the user to record the sale of an
item
Returns subsystem Software Enable the user to record the return of an
item by a customer
Data management Software Enables the user to add, edit, and delete
subsystem user, product, and supplier information
Reports generation Software Enables the user to obtain information
subsystem about transactions in an organized format
Website Software Enables the site visitor to view
information about the company and its
products, contact the marketing arm of the
company, and register to be able to order
online
Beta version Software All software subsystems integrated into
one working version of the system, used
for further testing
Final version Software Final version of the system to be turned
over to the sponsor
User’s manual Document Serves as a reference material to users
regarding the use of the system
Training sessions Means for users to learn the use of the
system from actual training
Weekly status reports Document Reports the accomplishments of the
project team for the week, as well as
changes, issues, and outlook for the
following week
Monthly progress Document Reports the accomplishments of the
reports project team for the month, discusses how
the project is going as compared to
planned, and raises issues that affected or
can affect work for the following month
Final project report Document Provides a summary of the project
Lessons learned Documents Discusses the important lessons the
project team has learned from working on
the project, a valuable resource for future
projects
Table 1. List of project deliverables and their description
F. Reference Materials

 Project Charter
 Project Communication Plan
 Project Scope Statement
 Quality Assurance Plan
 Change Management Plan

G. Definitions and Acronyms

1. Definitions

Software Development Process

A software development process is a structure imposed on the
development of a software product. Synonyms include software life cycle
and software process.

Work Breakdown Structure (WBS)

In project management and systems engineering, it is a tool that
defines a project and groups the project’s discrete work elements in a way
that helps organize and define the total work scope of the project.

Bug
A software bug is an error, flaw, mistake, failure, or fault in a
computer program that prevents it from behaving as intended (e.g.,
producing an incorrect or unexpected result).

Presentation layer
The presentation layer is a layer in the logical internal architecture
of an application that displays data and accepts user input via keystrokes
and mouse gestures and manages application-specific navigation issues.

Domain layer
Also called the business layer, the domain layer contains and
enforces business rules and functionalities. It is where most logical
processing occurs.

Data layer
The data layer manages persistent storage of data. Data access
components in this layer are responsible for exposing the data stored in
databases to the business layer.
2. Acronyms

CDR Critical Design Review

CI Configuration Integration
CM Configuration Management
DID Data Item Description
FCA Functional Configuration Audit
FGD Focus Group Discussion
FQR Formal Qualification Review
GUI Graphical User Interface
LAN Local Area Network
PDR Preliminary Design Review
PM Project Manager
PRR Production Readiness Review
SCM Software Configuration Management
SDL Software Development Library
SDP Software Development Process
SDR System Design Review
SIP System Implementation Plan
SOW Statement of Work
SPM Software Project Management
SQA Software Quality Assurance
SRR System Requirements Review
SRS Software Requirements Specification
SSR Software Specification Review
SW Software
TRR Test Readiness Review (TRR)
UI User Interface
VPN Virtual Private Network
vs. Versus
WBS Work Breakdown Structure
II. Project Organization
A. Organizational Chart
Project Organizational Breakdown Structure
2/21/2009

Tim Roberti
Project Sponsor

Amaya Bengzon
Marketing Manager

Felix Hagad
Procurement Officer

Executive Steering Committee

Business Analyst

Arianne Garing
Project Manager

Jocelle Luna Ana May Obmina Roanne Abecina

Technical Lead Interface Expert MySQL Roanne Abecina
Database Expert Software Quality
Assurance Engineer
Senior Web Carlos Muro
Senior Java Developer
Programmer Senior Network
I
Engineer
Tester
Database Administrator
Web Developer
Senior Java Developer
II

GUI and Web Team Database Admin Team Network Quality Assurance Team
Junior Java Developer
I

Junior Java Developer

II

Domain Team

B. Project Responsibilities

Role Responsibility
 Project Champion
 Offer strategic business leadership and direction
 Serve as communication bridge to the company’s
Project Sponsor Senior Management
 Approve scope change
 Approve budget variance
 Remove project barriers
 Scope change approval
Executive Steering
 Provide business content expertise
  Remove project barriers
 Provide business requirements input, test planning, test
execution, and User Acceptance testing sign-off
 Provide business sign-off for project milestones as
Committee needed
 Ensure that the appropriate business resources are
available to meet project schedule and project
deliverables
 Ensure that the business needs are met
 Manage daily project tasks
 Manage project deliverables, resources, and schedule
 Track project progress to plan and manage the project
plan
 Facilitate project communication, project decision
making, project issue resolution, and project risk
Project Manager management
 Facilitate Monthly Executive Steering Committee
meetings
 Review project deliverables, facilitate adjustments as
needed, and facilitate change approval
 Issue and Change management log owner
 Project Status Report author
 Provide leadership in the coordination of assigned
project tasks for the technical team
 Provide technical architect and design expertise
 Ensure that appropriate resources are available to meet
Technical Lead project schedule and project deliverables
 Conduct technical testing as required
 Provide technical sign-off for project milestones as
needed
 Provide documentation as required for the project
 Provide technical expertise in the area of mySQL
databases
MySQL DBA Expert  Complete technical tasks related to the setup,
configuration, and testing of the mySQL databases
 Provide documentation as required for the project
 Act as the primary project contact for all network
related issues/questions
 Provide technical expertise in the area of network
administration, components, and implementation
Senior Network  Complete technical tasks related to the setup,
Engineer configuration, and testing of the network of different
workstations and the website
 Recommend and administer hardware and network
decisions
 Provide documentation as required for the project
  Provide technical expertise for the design and setup of
the system’s user interface.
 Set product direction and UI requirements based on
business, user and brand needs
 Collaborate with product managers, engineers and
Interface Expert
research specialists to define the user experience
 Design user interaction models, workflows and user
interfaces.
 Work hand in hand with web developers and java
engineers to deliver the final product
 Engage in system development
 Integrate systems to achieve flow-through efficiency
and performance
 Promote a strong Management and process
environment that guarantees the integrity and
continuity of business information
 Facilitate workshops to capture business requirements
using use cases as required
 Develop software designs adhering to company’s
technical standards, architecture and frameworks.
 Assist in validating solution definitions, software
Senior Java designs and data-model designs
Developers  Ensure adherence to coding standards and technical
standards
 Ensure adherence to code versioning
policy/procedures (company’s configuration
management), security policies and procedures
 Ensure system documentation (design and operational
documents where appropriate) completed as per
policy/procedures
 Complete unit/system/regression testing as per
policy/procedures
 Monitoring/mentoring junior staff as required
 Support of development processes as required
Junior Java  Work hand-in-hand with Senior Java Developers in
Developers systems development
 Develop software designs adhering to company’s
technical standards, architecture and frameworks.
 Ensure adherence to coding standards and technical
standards.
 Ensure adherence to code versioning
policy/procedures (company’s configuration
management), security policies and procedures.
 Complete unit/system/regression testing as per
policy/procedures
 Other requirements as per assigned by Senior Java
 Developer or Technical Lead
 Write codes for the web sites
 Work on web-based applications, web enhancements,
database-backed websites and web administration
Senior Web
processes
Programmer
 Collaboration with Interface Expert and Web
Developer to provide system end needs in GUI and
website part
 Provide website design and implementation
 Work on web-based applications, web enhancements,
database-backed websites and web administration
Web Developer processes
 Work closely with the Database and Domain Team to
meet customer and system specifications on the
website end
 Provide technical expertise in the area of mySQL
databases
 Complete technical tasks related to the setup,
Database
configuration, and testing of the mySQL databases
Administrator
 Provide documentation as required for the project
 Assist the mySQL Database Expert in monitoring,
updating, fixing and running the database.
 Review of documents developed by development
team.
 Track the compliance with standards
 Development of quality assurance plan
 Implementation of test cases
Software Quality  Management of bug repository
Assurance Engineer  Participating in code and design reviews
 Provide QA related documentations
 Participating in code and design reviews
 Participate in product and process audits
 Initiation and participation in developing standards,
processes and checklists
 Design test cases
 Write test scripts
Tester
 Test modules and identification of bugs
 Creation of bug reports and test results
III. Management and Technical Approaches
A. Management Objectives

Management deems large corporations as a long-term business partner.

Hence, the management supports the timely completion of the Inventory
Management System project for the client.

Since project inception, the management has been involved by sealing its
approval, and then supporting its commencement. They have reviewed the
project proposal and approved providing resources in order to accomplish project
requirements. Correspondingly, they have approved of a 6 million Philippine
Peso budget, which will be released on a staggered-basis.

Management is also well-informed of the six-month project timeframe.

They are determined to see the project through and would like to be updated on
the project’s progress. They would like to keep track of the accomplishment of
project milestones provided in the proposed Gantt chart schedule. At the same
time, they would like to get a glimpse of the monthly progress reports and other
related accompanying reports. They would like to make sure that the project
progresses within the proposed timeframe. Accordingly, any adjustments to the
timeframe will be communicated to the management.

More than the timely completion of the project, management is also

concerned with the effective completion of Inventory Management System
software features. That is, they would like to be informed of the project
requirements which have been met. They would like to be updated if the
following software features have been in place:

 Record Incoming Inventory

 Record Inventory Returned
 Reorder Inventory
 Record Sold Inventory
 Correct Inventory Count
 Generate Reports
 Manage Data

Aside from meeting the project software specifics, management would

like to ensure the excellent quality of the product. The management supports the
creation of an internal quality team, who will not include the project manager and
staff members who have been instrumental to the completion of the project. They
would like to hear their opinions in terms of how well the project team has created
the Inventory Management System software as against the project proposal.
 In case of significant circumstances that will affect the project’s
completion, the management would like the project team to take steps to resolve
it. However, the management would like to be informed of such circumstances,
and management decisions when issued should hold.

B. Project Controls

Project management plan shall serve as a reference material as to the

proposed deliverables, costs, schedule, and the like. It shall be reviewed by the
project team in order to keep track of their deliverables and work schedules.
Likely deviations from the proposed plan shall be determined and communicated
to the project’s key stakeholders; namely, the management team and the project
sponsor. These deviations shall be approved by the Change Management
Committee, who will be represented by the management team.

It is the project team’s objective to minimize the changes in the project

plans. Hence, the Weekly Status Reports shall assist in determining the progress
of the project team. The Weekly Status reports shall be checked against the
proposed deliverable timeline and work schedules. Issues which impede the
successful implementation of the proposed deliverable and work schedules shall
be brought the team’s attention.

Identified issues could have been identified as a risk factor in the project.
Hence, the Project Risk Management plan shall be consulted for reference. The
recommended preventive and/or corrective action shall be evaluated as to its
appropriateness. If the preventive and/or corrective actions can be administered
within the project team, the project manager shall communicate the objective to
the project team for everyone’s compliance. However, if it has been determined
that the action will result in significant changes in the proposed deliverable
timeline and/or work schedule, the project manager shall accomplish a signed
Change Request Form to be forwarded to the Change Management Committee.
The Change Request Form shall include pertinent details relating to the nature of
the request, the evaluation on the necessity of the request, and the status of the
request.

The Change Management Committee shall review the Change Request

Form. They shall evaluate on the necessity of the request. Upon careful
evaluation, they shall warrant an approval or otherwise. Once it has been
approved, it shall be communicated to the project manager. The project manager
shall be responsible for the dissemination approved changes to the project team.
He or she shall take the succeeding steps to realize the approved changes.

Approved Change requests shall be properly documented. Project

proposals which shall affect with the change shall be revised. The revised project
proposals shall be archived accordingly.
 Referenced below is the Change Request Form template.

Change Request Form Template

1) Nature of the Change Request

 Briefly describe the nature of the change request
 Include the company staff who has requested for the change
2) Change Request evaluation
 Refer to the Risk Management Plan for preventive and/or
corrective actions
 Assess if those actions can be administered within the project
team, without affecting the proposed deliverable and work
schedule timeline
 Evaluate the necessity of Change requests. Project Manager
shall be responsible for its evaluation.
3) Change Request status
 Note if it has been forwarded to the management team.
 Include if it has been approved or not by the management team.

C. Risk Management

In addition to clearly identifying the client requirements, preparing the

budget, and assigning a competent team to meet the project requirements, risk
management is a procedure which would contribute to the project’s success.

Risk management will involve the identification of potential problems or

concerns which the project may encounter. Once identified, mitigating plans are
developed as a response to the concern.

Since the company realizes the importance of delivering quality software

products to its clientele, it plays an active role in overseeing its project’s success.
Being involved in the risk management plan is not an exception. The project
sponsor, stakeholders, management, and the project team sit together and discuss
potential problem areas. Enumerated below are the potential problem areas in
relation to the nine knowledge areas.
Knowledge Area Risk Conditions
Integration  Poor integration management
 Inadequate planning
 Lack of post-project review
Scope  Inadequate scope Management
 Poor definition of scope
 Incomplete definition of quality requirements
Time  Schedule estimation error
 Poor time allocation

Cost  Cost estimation errors

 Unaccounted financial adjustments
Quality  Poor attitude toward quality
 Substandard design/materials/workmanship
 Inadequate quality assurance program
Human Resources  Poor conflict management
 Poor breakdown of responsibilities
 Poor definition of responsibilities
 Absence of leadership
Communications  Lack of communication initiative
 Carelessness in communicating
 Lack of consultation with key stakeholders
Risk  Ignoring risk
Procurement  Unenforceable conditions or contract clauses
 Adversarial relations
 In response to the identified problem areas, the stakeholders, sponsor,
management, and the project team came up with a list of strategies to respond to
the above-mentioned concerns. Summarized in those strategies are the mitigation
plans, contingency plans, severity or impact on the project and an estimate of the
likelihood of occurrence.

Mitigations plans include the steps that the company will undertake in
order to reduce the probability of the occurrence of risk. On the other hand,
Contingency plans lay down the predetermined action the concerned team will
take, if the risk is realized.

Likelihood
Mitigation Contingency Severity/ of
Description
Plan Plan Impact Occurrenc
e
Management
will review the
Project team monthly
Poor Integration will produce a reports & ask
1. detailed project project-specific Low
Management integration questions to
report. ensure good
project
integration
Management
Inadequate Adjustments will oversee
Project
2. planning will be made the project Medium
delay
accordingly. from inception
to completion
Management
Adhoc post-
Lack of post- will check on Inferior
project review
3. project the milestone software Low
will be done by
review progress & product
management.
monthly report
Scope
Management
Inadequate Review & shall be
scope Incomplete
revise the approved by
4. Management project Low
scope management,
requirements
Management sponsor,
stakeholders, &
project team
 Scope review
Poor definition & approval by
Incomplete
of scope management,
5. Scope revision project Low
sponsor,
requirements
stakeholders, &
project team
Review project
Incomplete and its related
definition of quality score. Review quality Substandard
6. quality Low
Incorporate guidelines product
requirements missing quality
criteria.
Project team
plans the
schedule.
Schedule Project team Management
estimation error administers reviews
7. Project delay Low
schedule monthly
adjustments progress as
against the
proposed
schedule.
Project team
Poor time Project team
administers
8. allocation allocates the Project delay Low
time allocation
time.
adjustments.
Review the
cost estimation External and
Cost estimation deviations. internal
9. errors Management stakeholder’s Under budget Low
devises steps to consultation as
solve the to costs.
problem.
Perform cost
Unaccounted analysis and Consultation as
account for to probable
10. financial Under budget Low
adjustments financial future financial
adjustments adjustments.
with caution.
Poor attitude Perform External
toward product quality
Substandard
11. quality revisions to auditors; Low
product
meet quality Product quality
standards. accountability
12. Substandard Perform External Substandard Low
design/materials product quality product
 /workmanship revisions to auditors;
meet quality Product quality
standards. accountability
Inadequate Perform
quality product
Review quality Substandard
13. assurance revisions to Low
guidelines product
program meet quality
standards.
Encourage
Poor conflict Discussion friendly
14. management with involved atmosphere and Project delay Low
parties constructive
criticisms
Poor breakdown Project team
of Revisions on Overworked or
creates the
15. responsibilities breakdown of Underworked Low
breakdown of
responsibilities personnel
responsibilities
Poor definition
of Revise Project team
Unclear
16. responsibilities definition of defines the Low
responsibilities
responsibilities responsibilities

Absence of Appoint a Project Untimely

17. leadership Project Manager must decisions; Low
Manager be assigned. Project delay
Lack of Require
communication Produce Milestone &
No project
18. initiative required Monthly Low
updates
reports progress
reports
Carelessness in Project team Project
Unreliable
19. communicating releases the Manager Low
reports
revised report reviews report
Uninformed
Lack of Milestone &
key
consultation Produce monthly
stakeholders;
20. with key required progress Low
Lack of key
stakeholders reports reports
stakeholders
availability
support
Conduct Risk Risk
21. Ignoring risk Management Management Project delay Low
Plan Plan
Unenforceable Legal Legal
22. conditions or department department Project delay Low
contract clauses consultation consultation
23. Adversarial Legal Legal Project delay Low
 department department
relations
consultation consultation

D. Project Staffing

Project Manager shall anticipate the required knowledge and skills needed
to accomplish the Inventory Management System project. The management team
shall be consulted prior to hiring the necessary personnel. On the other hand, the
recruiting team shall design and warrant an attractive remuneration and incentive
package for the new team members of the project.

Below are the targeted personnel who are deemed crucial to the successful
implementation of the Inventory Management System project.

1. Project Manager

The Project Manager shall administer the successful

implementation of the project. He or she shall be knowledgeable of the
client’s requirements, company’s capacity to fulfill the client’s
requirements, and team’s capability to realize the project’s requirements.
He or she shall lead the team in designing a project plan which details how
the project shall be accomplished. He or she must also be updated with
the progress of the project and must ensure that the project be completed
within the proposed time schedule. At the same time, he or she shall also
be instrumental in the project staffing requirements of the project. He or
she must consider the technical knowledge required to produce quality
software. He or she shall also note the need for the project team’s soft
skills in order for the team to progress smoothly. He or she shall also
serve as a consultant or adviser in case there are deviations from the
proposed work breakdown structure, Gantt chart, or any other significant
changes. He or she shall present the updates to the management, project
stakeholders, sponsors, and the client, either through written or verbal
report.

2. Graphical User Interface Team

The Graphical User Interface “GUI” team shall be composed of

three people, preferably web programmers and/or designers, who will
ensure the visual appeal of the software. They shall be referred as the
Interface Expert, Junior GUI Developer I, and Junior GUI Developer II.
They will work hand-in-hand with the rest of the project team members in
order to understand the visual requirements of the project. Aside from the
visual appeal, the GUI team must also consider the simplicity of the
software interface. The terms that will be used in the GUI system must be
understandable. Technical or jargon terms must be avoided, if possible.
For the client’s ease, the client must be able to walk through the interface
system without referring to the manual’s technical dictionary or manual.
The client’s business familiarity should be sufficient in understanding
what the interface button does.

3. Database Administrator Team

The Database Administrator team shall be composed of two

people; the MySQL DBA Expert and the Database Administrator. They
will design the database of the Inventory Management System project.
Together with the client and project team, they will pinpoint the necessary
variables to be included in the project database system. They will
determine and consider the characteristics of the variables in their database
design. Once the variables have been determined, they will propose for an
efficient and workable database design. They will also define how the
database design shall be implemented. These proposals must be
communicated with the rest of the project team so as to assess its viability.
Design and implementation concerns of the project team must be
accounted for. The Database Administrator team shall assess their design
and implementation proposal once again. Upon careful assessment, the
Database Administrator team shall come up with a revised plan. The
revised plan shall be communicated once again to the whole team. With
the project manager’s approval, the Database Administrator team shall
commence with their task. If within the middle of its design, the Database
Administrator team discovered a significant adjustment, they should
initiate the update to their Project Manager.

4. Domain Programming Team

The Domain Programming Team shall be composed of two Senior

JAVA programmers and two Junior JAVA programmers headed by a
Technical Lead.

The Domain Programming Team shall lead in the creation of

program design of each of the software feature required by the client.
Robustness must be taken into account in the program design. After the
creation of program design, the Domain Programming team shall
communicate their proposal to the project team. The project team shall
discuss the viability of the design. Once determined viable, the Project
Manager gives the approval for the commencement of the programming
proper. The Domain Programming team will then assess the most
effective programming language to be used for the software product.
They shall consider the advantages and disadvantages of the shortlisted
programming languages. They shall also note the existing technical skills
and knowledge the company houses. In-house technical skills and
knowledge shall be utilized to assure project’s successful implementation.
If the current Domain Programming team assesses that there is an unmet
technical need, the recruiting team shall be informed. With the Domain
Programming team’s recommendation and management’s approval, the
recruiting team shall advertise the need for an external technical
programmer, consultant, project-based programmer, or new programmer
who shall fill in the needs of the project. The Domain Programming team
shall absorb the new team member. They shall be responsible in
educating the new team member of his or her roles and responsibilities.
The new team member shall be considered officially part of the project
team. The new team member shall actively participate in the advancement
of the project team’s goals.

5. In-house Quality Team

The In-house Quality team as their name suggests will be internal

quality company personnel who are not included in the Inventory
Management System project team. They shall be composed of two quality
team members---the Quality Tester and the Software Quality Assurance
Engineer---who will be oriented as to the project requirements. The In-
house Quality team shall be knowledgeable of the industry quality
standards and assess the final software product based on those criteria.
Apart from that, they shall ensure that the product software includes all of
the agreed client requirements. Upon completion of the quality
assessment, they shall write a report summarizing their quality findings for
the project teams’, stakeholders’, sponsors’, and management’s perusal.
Unsatisfactory quality assessments shall warrant an overhaul plan for the
project. On the other hand, satisfactory quality findings shall signal the
presentation of the software product to the client.

6. Business Analyst

The business analyst shall work together with the client for the
unambiguous description of product requirements. He or she shall assist
in the careful definition and description of client needs to the project team.
It is imperative that he or she be able to understand the business
requirements of the client. He or she must be able to translate the business
needs into technical terms for the project team’s understanding. He or she
must be also available for consultation while the project is in progress.
 7. Senior Network Engineer

The Senior Network Engineer shall be responsible for the smooth

data transition between and/or among hardware and software components.
He or she shall install hardware and software compatibilities. He or she
shall also be responsible for troubleshooting networking concerns. The
Senior Network Engineer’s service may be extended to the external client
to ensure the smooth integration of the Inventory Management System
software project to the existing network in the client’s company.

8. Others

Other personnel determined as necessary by the project team,

stakeholders, sponsors, and management shall be included in the project
team provided appropriate approval has been secured.

E. Technical Processes

Management employs the technical and business expertise of its in-house

employees for the successful implementation of the Inventory Management
System project. In relation to business knowledge, the management deems it
appropriate to assign a Business Analyst who will be able to interpret and
understand the client’s specifications and unique requirements. The management
would prefer a business analyst who has a thorough knowledge of an Inventory
system. The Business Analyst will work together with the project team.

Initially, representatives of the project team, the business analyst and the
Project Manager, will meet up with the client to discuss their software
requirements. The business analyst takes notes of the client-specified
requirements. After that, the business analyst will prepare a draft on the major
categories of software. The functions of these categories will be explained in
detail as well. The business analyst will communicate the client requirements to
the project team.

Once the requirements are communicated to the project team, the project
team, together with the business analyst, will start to discuss on how to divide the
software requirements into parts. That is, they will verify if the drafted categories
should be finalized as major software features. Each determined category will be
described in detail. The software methodology of Requirements Analysis will be
utilized to aid the project team in finalizing the description of the software.
Requirements Analysis will be further extended through Use-Case diagrams. Use-
case diagrams will be defined in casual and full-description terms. The casual
description will summarize the capabilities of the identified software feature. The
full-description, on the other hand, will enumerate the step-by-step process of the
implementation of the software feature. In the Inventory Management System
 project case, it will start with the user’s interface with the system. The system
asks for the appropriate username and password. And the system displays
interfaces and performs functions accordingly.

Moreover, the project team will work on the better interpretation of their
Use-Case diagrams. That is, the Use-case diagram will be further elaborated as a
System Sequence Diagram. In this diagram, the external users, who are the
business owners and employees, will be represented as an actor. Actors will
interact with the internal classes of the software. Interactions between the
external users and internal software classes will be represented in sequential
terms.

Apart from the sequential description of interactions, equally important is

the description of object interactions. This will be reflected in the accompanying
Collaboration diagram. Collaboration diagrams are extracted from the System
Sequence Diagram. However, collaboration diagrams serves to highlight the
interaction among objects. Sequences can be deduced from the numbering
sequence referenced beside an object.

Objects will be further defined through class diagrams. These class

diagrams houses the variables and methods of an object. Variables will be
identified based on their name and attributes. Methods, on the other hand, will be
defined through their unique functions or tasks. Class diagrams will then serve as
a blueprint for the programmers.

The final technical document will describe the project in paper-based

form. Initially, it will describe the unique business tasks of the Inventory
Management System. It will describe the major categories or subsystems. These
subsystems will be defined in casual and full-description terms. The transition
from business requirements to technical blueprint will be accomplished through
the use of above-mentioned diagrams. These technical descriptions will be
supplemented by the technical document.

IV. Description of Work to Perform

A. Major Work Packages

Following is the work breakdown structure (WBS) describing the work to

perform for the project. Work packages are represented by the tasks at the lowest
level. They are briefly summarized in this section.

1. Initiating
1.1. Determine/assign project manager
1.2. Identify key stakeholders
1.3. Prepare business case
 1.4. Develop project charter
2. Planning
2.1. Hold project kickoff meeting
2.2. Prepare team contract
2.3. Develop scope statement
2.3.1. Conduct domain analysis
2.3.2. Prepare customer statement of requirements
2.4. Develop a communication plan
2.5. Develop a quality assurance plan
2.6. Develop a change management plan
2.7. Develop a test plan
2.8. Develop a training plan
2.9. Prepare WBS
2.10. Prepare schedule and cost baseline
2.10.1. Determine task resources
2.10.2. Determine task durations
2.10.3. Determine task dependencies
2.10.4. Create, review and finalize Gantt chart
2.11. Identify, discuss, and prioritize risks
3. Executing
3.1. User inputs
3.2. Hardware and Software Installation
3.2.1. Prepare purchase order
3.2.2. Track shipping
3.2.3. Setup equipment
3.3. System Design
3.3.1. Design User Interface
3.3.2. Design Website
3.3.3. Design Database
3.4. System Development
3.4.1. Develop User Interface Subsystem
3.4.2. Develop Database Subsystem
3.4.3. Develop User Verification Subsystem
3.4.4. Develop Inventory Reorder Subsystem
3.4.5. Develop Delivery Subsystem
3.4.6. Develop Sales Subsystem
3.4.7. Develop Returns Subsystem
3.4.8. Develop Data Management Subsystem
3.4.9. Develop Reports Generation Subsystem
3.4.10. Construct Website
3.4.11. Develop Beta Version
3.5. Testing
3.5.1. Conduct system test
3.5.2. Conduct user acceptance test
3.5.3. Develop final version of the program
3.6. Customer Acceptance
3.7. Training
3.7.1. Develop a user’s manual
3.7.2. Conduct training
4. Controlling
4.1. Weekly status reports
 4.2. Monthly status reports
5. Closing
5.1. Turnover product
5.2. Prepare final project report
5.3. Prepare lessons learned report

1. Conduct domain analysis

In order to determine the requirements and specifications of the

system, the team needs to analyze the business for which the system is
being developed. Domain analysis involves evaluating existing systems
and processes, identifying information, events and users in the domain,
and determining their relationships. The main products of this work
package are concept definitions, association definitions, and attribute
definitions. These will help in determining what needs to be done by the
project, and are thus helpful in developing the project scope statement.

2. Prepare customer statement of requirements

For this work package the team will need heavy sponsor or user
involvement in order to describe the kinds of problem in the domain to be
addressed, and how they are solved in the current practice. The customer
statement of requirements enumerates what the user should be able to do
using the new system or what the new system should do automatically. It
encompasses both functional and non-functional requirements. It is a
major input for the preparation of the project scope statement.

3. Determine task resources

Once the WBS is done, the team must convene to determine what
resources need to be allocated to the project tasks. One major resource is
labor, but other resources, such as software and hardware, may also be
assigned. This work package will largely determine project costs.

4. Determine task durations

This work package is also based on the WBS. It involves

determining how long each of the tasks would take, taking into
consideration the actual amount of time needed to work on a task and
elapsed time.
5. Determine task dependencies

In this work package the relationships or dependencies among

project activities are identified. The team needs to ascertain whether
certain activities can be done in parallel, whether some can only start
when others have finished, or whether some can overlap. This work
package results in determining the sequence of project activities.

6. Create, review and finalize Gantt chart

In view of the duration estimate and task dependencies, a Gantt

chart needs to be produced illustrating the timeline of the project. An
initial draft must be created, and then reviewed by the team members
assigned to do the tasks. The whole team must ultimately agree upon a
final Gantt chart.

7. Prepare purchase order

A purchase order must be accomplished listing the hardware and

software products needed for the project. It must be signed off by the
project manager before the equipment and software are acquired.

8. Track shipping

The delivery of purchased hardware and software must be tracked

in order to prevent project delay.

9. Setup Equipment

This work package involves configuring the network, installing the

equipment at the appropriate locations, and installing the software
according to system specifications.

10. Design User Interface

This work package involves coming up with an illustration of how

the system will look like. The user interface design should have screen
mock-ups and must include the parameters users will need to enter. It
describes the navigational paths that one will follow when using the
system. It also specifies the format of forms and reports.

11. Design Website

Designing the website entails deciding on the website’s

appearance, content and map. The website’s appearance must be described
using screen mock-ups so as to show the formats, graphics, forms, and
links to be used. Web content should show the kinds of information that
can be viewed on the website, as well as any images or articles. Mapping
refers to where certain features or information are located in the website.

12. Design Database

The system’s database needs to store information regarding users,

products, suppliers, and transactions such as sales, returns, orders, and
deliveries. Designing the database involves determining the specific
attributes of the entities that need to be recorded, as well as the
relationships among the entities. The output of this work package is a
database schema that defines the tables, the fields in each table, and the
relationships between fields and tables.

13. Develop User Interface

The work in this package goes into putting the user interface
design into software code.

14. Develop Database

This work package involves the actual creation of tables based on

the database schema. It also includes encoding information into the
database. If the sponsor has a list of suppliers and products already
available, for example, the team’s work includes entering the information
in the database.

15. Develop User Verification Subsystem

 The goal of this work package is to develop and test a software
module in Java that takes in the user name and password entered through
the user interface and compares the information with those on the
database. If the user entered a valid username and password, he or she will
be given access to certain parts of the system according to his or her
access rights. Otherwise, he or she will be shown an error message and be
given two more chances to successfully log in.

16. Develop Inventory Reorder Subsystem

The team will also need to code and test in Java the module that
will enable the authorized user to prepare a purchase order. It must pull
information from the database to provide the user a list of products to
choose from. The user can then specify the amount to order. The system
should be able to sort the order into separate purchase orders according to
supplier and compute for an estimate purchase price for each. The user
will have the option to send the purchase orders for approval. Once
approved, the purchase order may then be printed.

17. Develop Delivery Subsystem

This work package involves coding and testing the software

module that will allow the user to record delivery of new inventory. The
user should be able to retrieve the purchase order corresponding to the
delivery and tick the items that have been delivered. An acknowledgement
form will be automatically generated for printing, and the quantity of the
products will be increased by the quantity delivered. This transaction will
generate a delivery record.

18. Develop Sales Subsystem

The work in this package goes into coding and testing the software
module that records a sale. The user can choose to either search for the
product or select from a list in order to record the sale of a particular
product. This will generate a sales record and decrease the quantity on
hand of the products sold.

19. Develop Returns Subsystem

This work package involves coding and testing the software

module to record a return of a product. Again, the authorized user can
search for the product or choose from a list, then indicate the amount
returned. He or she will then select whether the product was refunded or
exchanged. If it was refunded, the system will merely increase the quantity
on hand of the product by the quantity returned. If it was exchanged, an
additional step would be to choose the product(s) given in exchange and
decrease their quantity on hand accordingly. The transaction will generate
a returns record.

20. Develop Data Management Subsystem

Certain users will have access to adding, editing, and deleting

information in the database. An authorized warehouse personnel, for
example, will be able to add, edit, and delete product and supplier
information, while the administrator will in addition be allowed to add,
edit, and delete user information in order to manage access rights. The
coding and testing of the software module implementing these processes is
done in this work package.

21. Develop Reports Generation Subsystem

Another important feature of the system is the generation of sales,

returns, delivery, and inventory report. The authorized user will be able to
choose the type of report and the period covered by the report, and then
the system will automatically generate the requested report based on
information stored in the database. This work package involves the coding
and testing of the software module corresponding to this feature.

22. Construct Website

It is in this work package that the team will need to actualize the
website design. It entails coding and testing the website according to
specifications to produce a working website available to the public.

23. Develop Beta Version

When all software modules are done, the team must work to
integrate them into one system. It is in this work package that the modules
representing the interface, processing, and data layers must be merged and
coordinated. The result is called the beta version, which will be used for
testing the entire system.
 24. Conduct System Test

This work package involves letting the technical team run the beta
version and look for any bugs.

25. Conduct User Acceptance Test

Representatives from the sponsor will also need to test run the beta
version and provide feedback regarding the user experience.

26. Develop final version of the program

The beta version must be refined in view of technical and user

inputs in this work package.

27. Develop a user’s manual

Once the final, working product is completed, the team must

prepare a user’s manual to aid the sponsor’s employee in learning how to
use the system. This is a useful training material will also serve as a
reference after system roll out.

28. Conduct training

Team members will take part in training users on-the-job. There

will be classroom training and simulation training in the use of the system.
Additionally, team members will be present while the users interact with
the system doing actual work.

B. Key Deliverables

Listed below are the key products to be produced as part of the project.
Included are the performance indicators for each expected output. Performance
indicators describe the quality expectations, and the nature and/or content of the
deliverable.

Expected Output (deliverable) Performance Indicators

Initiating
Business case This document serves as the project proposal as it
 drives at the need of the business for the project. It
should include an introduction, business objective,
current situation and problem/opportunity
statement, critical assumptions and constraints,
analysis of options and recommendation,
preliminary project requirements, budget estimate
and financial analysis, schedule estimate, potential
risks, and exhibits.
Project charter This document officially recognizes the existence
of the project. It must list the project title, project
start and projected end date, project manager,
project objectives, approach, roles and
responsibilities, sign-off of all key stakeholders,
and comments from stakeholders.
Planning
Team contract This document should help promote teamwork and
clarify team communications. It should enumerate
the project team code of conduct, and the
guidelines for participation, communication and
problem solving. The team contract must be agreed
upon by all team members in a meeting.
Customer statement of This document should list the business problems or
requirements opportunities the system is to address and all
requirements. Each requirement should state that
the user should be able to do using the system or
what the system should do automatically.
Project scope statement This document helps improve the accuracy of time,
cost, and resource estimate by clearly defining the
kind of work to be done. It must include a
description of the project, descriptions of project
deliverables, and the characteristics and
requirements of products and services produced as
part of the project.
Project communication plan This document must enumerate and describe the
forms of communication to be employed
throughout the project. For certain written
documents, a template must be provided.
Quality assurance plan This document must list and describe the processes
involved in ensuring quality of work. It must
include the roles and responsibilities and
documentation needed.
Change management plan This document must define the standard operating
procedure for handling changes in the project
plans.
Test plan This document will describe how the system will
be tested. It must include details such as who will
 do the testing, when testing will be done, and how
bugs will be reported.
Training plan This document will describe the plan for training
clients on how to use the system. It must specify
the names of the trainers, the topics to be covered,
and the date and time of training.
Work breakdown structure This document lists the activities required to
accomplish the project. It provides the basis for
creating the project schedule and forecasting
project performance. It should have at least three
levels and must use the project management
process groups as its main categories.
Schedule baseline This document is the approved planned schedule
for the project. It is used in measuring project
progress and schedule performance. A Gantt chart
must be used to list the project activities and their
corresponding start and finish dates. It must
contain milestones, summary tasks, individual task
durations, and arrows showing task dependencies.
Cost baseline This document is a time-phased budget used to
measure and monitor cost performance. It should
list the WBS items and the costs of accomplishing
them on a monthly basis.
Risk management plan This document describes the procedures for
managing risk throughout the project. It must list
all perceived risks and suggest preventive and
corrective actions for each.
Executing
User inputs The team must hold focus group discussions
(FGDs) with the sponsor’s key employees to
determine desired content and features for the
system. This document is a compilation of user
feedback, comments, and suggestions.
Server This piece of hardware is a specialized computer
where the server software runs on. Having this is
essential as it enables the sharing of files and
resources, such as fax machines and printers,
among multiple computers. It must run on
Windows OS, and meet the following
specifications:

 444810-371 ML110 G5 Xeon 3065 NHP-

SATA
 Processor: Dual-Core Intel® Xeon®
Processor 3065 Processor (2.33GHz, 65W,
1333 FSB, 4MB)
  Cache Memory: 1 x 4MB Level 2 cache
 Memory: 512 MB PC2-6400
 Storage Managementler HP Embedded 6
Port SATA Managementler with embedded
RAID (4 ports for HDD)
 Hard Drive: 160GB SATA HDD
 Internal Storage: Maximum 3TB (4 x
750GB) SATA
 Optical Drive 16x SATA DVD-ROM
 Form Factor Micro ATX Tower (4U)
Client computers These computers are connected to the server as
clients. A client requests access to information and
resources. The client computers to be used by the
system need to meet the at least the following
specifications:

 Memory: 2GB DDR2

 Hardisk: 160Gig SATA
 Operating System: Windows XP
Router switch This piece of hardware delivers routing
functionality along with traditional switching
capabilities at very high rates of speed and
efficiency. It should provide integrated intelligence
for filtering and security, as well as flexibility for
network design and traffic patterns.
Modem This piece of hardware will be used to transmit
data over telephone or cable lines. It is needed to
connect to the Internet. The modem to be installed
must eliminate the need to install a modem for
each computer.
Firewall and VPN device This piece of hardware provides security to the
network by preventing unauthorized access to or
from the private network. All messages entering or
leaving the network must pass through the firewall,
which examines each message and blocks those
that do not meet the specified security criteria. It
must have an integrated gateway anti-virus, anti-
spyware and intrusion prevention support, 90
Mbps Stateful Packet Inspection firewall, and 30+
Mbps 3DES and AES VPN throughput.
Operating System The system will work on Windows XP. Original
software license must be installed on all
computers.
User Interface Design This document must describe how the system
would like to a user. It must include screen mock-
ups to show the system layout, suggested formats,

Website Design
Database Design
User Interface Subsystem
Database Subsystem
User Verification Subsystem
Inventory Reorder Subsystem
Delivery Subsystem
Sales Subsystem
and graphics.
This document must include the site map,
suggested formats, graphics, and content.
This document must present a database schema for
storing and manipulating information on users,
products, suppliers, and transactions. It must define
the tables, the fields in each table, and the
relationships between fields and tables.
This segment of software code corresponds to the
presentation layer of the system. It is the means by
which the user interacts with the system. As such it
must easily be understood and navigated. It must
also allow the user to enter pertinent data that the
system will use for processing.
This segment of software code corresponds to the
data layer of the system. It must contain
information according to the database design.
This segment of software code corresponds to the
domain layer of the system. It must accept as input
from the interface the username and password and
verify the information against the information
stored in the database. Upon a match, it should
allow the user to proceed. Otherwise, it should
show an error message. It must limit the access of
the user to the functionalities that he or she has
access rights to.
This segment of software code corresponds to the
domain layer of the system. It must accept as input
from the interface the products and quantity to
reorder, and then sort the order according to
supplier. This sorting should be based on the
information in the database.
This segment of software code corresponds to the
domain layer of the system. It must accept as input
from the interface the products and quantities
delivered, and increase the quantity on hand of the
products in the database accordingly. The process
must be completed by the creation of a transaction
record in the database.
This segment of software code corresponds to the
domain layer of the system. It must accept as input
from the interface the products and quantities sold,
and decrease the quantity on hand of the products
in the database accordingly. The process must be
completed by the creation of a transaction record
in the database.
 Returns Subsystem This segment of software code corresponds to the
domain layer of the system. It must accept as input
from the interface the products and quantities
returned and whether they were refunded or
exchanged. In either case, the quantity on hand of
the products must be increased. For an exchange,
however, the quantity of the products given in
exchange must be decreased. The process must be
completed by the creation of a transaction record
in the database.
Data Management Subsystem This segment of software code corresponds to the
domain layer of the system. It should allow the
user to add, edit, and delete user, product, and
supplier information stored in the database. The
process must be completed by the creation of a
transaction record in the database.
Reports Generation Subsystem This segment of software code corresponds to the
domain layer of the system that pulls information
from the database according to user specifications
and presents it in an organized manner. Generated
reports should be accurate and must follow the
specified format.
Website The website should be linked to the database and
provide information to users real-time. It must
have the following features: user registration or
log-in, article on a featured product, view of the
product catalog, forum, price quote, and order.
Beta Version This is the compilation of all subsystems’ software
code. When run, it must flow from one screen or
process to another smoothly. Each subsystem
should still work as intended.
Final Version This is the final product to be turned over to the
sponsor. It must meet all customer requirements
and be approved by all key stakeholders.
User’s Manual This document serves as a means for users to learn
how to use the system. It must enumerate and
describe all system functions in the user’s point of
view, and list directions or steps as necessary. It
must include an FAQ section and an index for
easier access to information.
Training sessions Training sessions should include classroom
training with the users of the system. A dummy
system should be in place to perform simulations
with. On-the-job training should also be
conducted.
Management
 Weekly status reports
Monthly progress reports
Closing
Final project report
Lessons learned
These documents are produced after weekly
meetings that update the whole team of the
project’s progress. They must include the actual
accomplishments of the project team, measured
against the proposed schedule and budget. A brief
description of each accomplishment must be
provided. Issues and concerns must also be
reported.
These documents are produced after monthly
meetings that are held to discuss the progress of
the project. It should summarize the
accomplishments for the current month, plans for
the following month, and important issues that
surfaced or are still important. The dates and
description of approved or requested changes to
the project must also be included in these reports.
This document provides a summary of the project.
It must include the project objectives, a summary
of the project results, original and actual start and
end dates, original and actual budget, project
assessment, a transition plan, and annual project
benefits measurement approach. Documents
relating to project management and to the product
need to be attached to the final project report.
This document details the important things the
project team has learned from working on the
project, and as such is a valuable resource for
future projects. It must discuss reflections on
whether project goals were met, whether the
project was successful or not, the causes of
variances on the project, the reasons behind
corrective actions chosen, the use of project
management tools and techniques, and personal
words of wisdom from team members’
experiences.

V. Project Schedule Information

A. Summary Schedule
Please refer to the attached file PM Plan - Gantt Chart.pdf
 B. Detailed Schedule
Please refer to the attached file PM Plan – Network Diagram.pdf

VI. Budget
A. Summary Budget

Costs play a crucial role in the successful implementation of the Inventory

Management System project. A project cost has its boundary. And a boundary
overboard might be unprofitable for the company. Hence, it is important that the
company consider an exact amount which will serve as a boundary line for the
project cost. Extending beyond the boundary must be put into careful assessment
by the project’s stakeholders. Profitability and other considerations must be
assessed. Correspondingly, appropriate actions must be recommended. Usually,
a project cost overboard may conclude with the project termination.

Noting these, it is important that the Inventory Management System be

reasonably priced. It is also equally important that the design and creation of the
Inventory Management System be profitably undertaken. Hence, the creation of a
project costs estimate will be necessary in the successful implementation of the
project.

Items which are pertinent to the project’s completion shall be identified.

These items will be determined as part of major categories such as Human
Resources, Hardware, Software, and the like. Accompanying these items are their
rough estimates. Data regarding the price estimates are taken from the current
salary structure in the Philippine market. For the hardware items, on the other
hand, their prices were based from the online market price.

Provided below is a table which enumerates the costs items, their

corresponding market price, and a brief description of its components.

Budget Estimated Explanation

Category Costs
Project team 908,118.18 Project Team shall comprise of 14 members, including
compensation the Project Manager. It shall consist of a Technical
Lead, Senior Java Developer I, Senior JAVA Developer
II, Junior GUI Developer I, Junior GUI Developer II,
Interface Expert, mySQL DBA Expert, DB
Administrator, Senior Network Engineer, Tester,
Software Quality Assurance Engineer, and Business
Analyst. Compensation is calculated based from the
monthly income of the project team members and the
 numbers of hours he or she has worked.
Hardware 241,700.00 Hardware shall include three desktop computer clients
and one main computer server. The computer hardware
package shall include a display monitor, keyboard,
mouse, LAN Cards, Printers, and other special
peripherals such as cables and racks. Network hardware
such as router, switch, firewall and VPN, shall be
included as well.
Software 2,380,881.82 Software shall include the Windows XP Operating
license installed in every computer terminal the company
will utilize. It shall be calculated based on the cost of the
software license and the total number of computer
terminals used. It also includes the labor costs for
developing the software components of the system.
Testing 262,258.18 Testing shall include the mandatory quality test on the
final software product. The Testing procedure shall
ensure that the quality standard has been met. At the
same time, it shall verify that the proposed software
features operate in the final software product. More than
that, it shall also cover the integration testing of the
hardware and the software. It shall ensure a smooth data
flow from the hardware to the software and vice versa.
Software 40,000.00 Software packaging shall serve as a physical resource to
Packaging be distributed to the external client. It shall include the
preparation of Compact Discs which will serve as the
installation disc of the final software product. More than
that, the software manual shall be completed for the
client's easy reference. At the same time, hardware
manuals may be designed, if deemed appropriate.
Training & 120,000.00 Training expenses will be incurred once the final
support software product has been distributed to the external
client. The company shall be responsible for the smooth
implementation of the final software product. Hence, it
shall schedule trainings or seminars for the external
client and their employees. It shall cover the
reproduction of training manuals and other incidental
costs such as transportation cost, venue cost, snacks, and
the like. Support expense shall be incurred for the
smooth integration of the final software product to the
external client's system. It shall include the software
system installation costs.
Team Building 60,000.00 Team building expense shall be accounted for the
Activities purpose of encourage team communication and
cooperation. It is also hoped that informal gatherings
shall minimize and resolve conflicts, should they arise.
Team Building activities will be determined by the
project team. The budget will be accounted for as a
recurring monthly expense.
Administration 60,000.00 Administration needs shall cover the non-core related
Needs Inventory Control System project expense. It shall be
considered as a petty cash fund for immediate
administration needs such as paperclips, bond papers,
staplers, pen, and the like. It shall also be used for
reproducing Weekly Status reports, Monthly Progress
reports, Communication Templates, and the like. Other
non-core related expenses shall be covered as well.
Transportation 120,000.00 Transportation allowance shall be accounted for as a
Allowance recurring monthly expense as the project is being
designed. It shall consider the travel expenses to and
from the client's site. It shall also cover the travel
expense the various commercial computer shops. Other
transportation expense incurred for the benefit of the
Inventory Control System project shall be included as
well.
Marketing 60,000.00 Marketing expense shall be allocated as an investment
Expense fund for establishing a strong client relationship. It is
recommended that meetings and/or gatherings with the
external client be not entirely in strictly business
structure. That is, a relaxed and /or informal setting is
encouraged. It is hoped that with this relaxed structure,
the company will encourage smooth project integration
and cooperation.
Reserves 850,591.64 Reserves shall be calculated as 20% of the total cost
estimate. It shall serve as an emergency fund resource
which may be used in case approved changes need to be
implemented.
Total Cost 5,103,549.82  
The costs estimate, on the other hand, is referenced on the table below.

GOAL Microsystems Cost Estimate

WBS Level 1 % of
  #Units/Hrs Cost/Unit/Hr Subtotals Totals Total
WBS Items          
1. Project Management       908,118.18 18%
Project manager 296 454.55 134,545.45    
Project team members          
Technical Lead 296 284.09 84,090.91    
Senior JAVA Developer I 296 227.27 67,272.73    
Senior JAVA Developer II 296 227.27 67,272.73    
Junior GUI Developer I 296 170.45 50,454.55    
Junior GUI Developer II 296 170.45 50,454.55    
Interface Expert 296 227.27 67,272.73    
mySQL DBA Expert 296 227.27 67,272.73    
DB Administrator 296 170.45 50,454.55    
Senior Network Engineer 296 227.27 67,272.73    
Tester 296 142.05 42,045.45    
Software Quality Assurance Engineer 296 142.05 42,045.45    
Business Analyst 296 198.86 58,863.64    
OT reserves* 148 397.73 58,800.00    
2. Hardware       241,700.00 5%
Client computers 6 26,500.00 159,000.00    
Server 1 51,000.00 51,000.00    
Router Switch 1 5,000.00 5,000.00    
Modem 1 1,700.00 1,700.00    
Firewall and VPN 1 25,000.00 25,000.00    
3. Software       2,380,881.82 47%
 Windows XP Software 7 7,000.00 49,000.00    
Project manager 760 454.55 345,454.55    
Technical Lead 760 284.09 215,909.09    
Senior JAVA Developer I 760 227.27 172,727.27    
Senior JAVA Developer II 760 227.27 172,727.27    
Junior GUI Developer I 760 170.45 129,545.45    
Junior GUI Developer II 760 170.45 129,545.45    
Interface Expert 760 227.27 172,727.27    
mySQL DBA Expert 760 227.27 172,727.27    
DB Administrator 760 170.45 129,545.45    
Senior Network Engineer 760 227.27 172,727.27    
Tester 760 142.05 107,954.55    
Software Quality Assurance Engineer 760 142.05 107,954.55    
Business Analyst 760 198.86 151,136.36    
OT reserves* 380 397.73 151,200.00    
4. Testing (10% of total hardware &
software costs)     262,258.18 262,258.18 5%
5. Software packaging       40,000.00 1%
Software CD 1 5,000.00 5,000.00    
Software & Hardware manuals 1 35,000.00 35,000.00    
6. Training and Support       120,000.00 2%
Trainee Cost 1 50,000.00 50,000.00    
System Installation 1 50,000.00 50,000.00    
Travel Cost 1 20,000.00 20,000.00    
7. Others       300,000.00 6%
Team Building Activities 6 10,000.00 60,000.00    
Administration needs (Paperclip, folder, etc) 6 10,000.00 60,000.00    
Transportation Allowance (to & from client's
company) 6 20,000.00 120,000.00    
 Marketing Expense 6 10,000.00 60,000.00    
8. Reserves (20% of total estimate)       850,591.64 17%
Total project cost estimate       5,103,549.82  

*Overtime Pay Computation

Daily salary = (monthly salary / 22 days)

Hourly OT rate = (daily salary / 8 hours) * OT rate

*OT rate
regular day -1.25%
non-working holiday - 1.30%

B. Detailed Budget

Apart from estimating the costs which may be incurred during the project, it is also crucial to determine when the costs
will actually be incurred. This projected cost flow will aid the management team and the related budget department in the
timely approval and release of funds. Integrating the release of funds when it is needed assures the project team that the funds
will be available just in time. This eliminates the wait time from the funds approval to its release date. Hence, it is also
necessary to prepare a cost baseline.

For the Inventory Control System project’s purposes, the cost baseline shall project the estimated costs on a monthly
basis. Provided below is the proposed cost baseline for the six-month period.

Goal Microsystems Cost Baseline

  1 2 3 4 5 6 Totals
WBS Items              
1. Project Management              
Project manager 22,424.24 22,424.24 22,424.24 22,424.24 22,424.24 22,424.24 134,545.45
 Project team members              
Technical Lead 14,015.15 14,015.15 14,015.15 14,015.15 14,015.15 14,015.15 84,090.91
Senior JAVA Developer I 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 67,272.73

Senior JAVA Developer II 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 67,272.73
Junior GUI Developer I 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 50,454.55
Junior GUI Developer II 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 50,454.55
Interface Expert 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 67,272.73
mySQL DBA Expert 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 67,272.73
DB Administrator 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 8,409.09 50,454.55
Senior Network Engineer 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 11,212.12 67,272.73
Tester 7,007.58 7,007.58 7,007.58 7,007.58 7,007.58 7,007.58 42,045.45
Software Quality Assurance
Engineer 7,007.58 7,007.58 7,007.58 7,007.58 7,007.58 7,007.58 42,045.45
Business Analyst 9,810.61 9,810.61 9,810.61 9,810.61 9,810.61 9,810.61 58,863.64
OT reserves* 9,800.00 9,800.00 9,800.00 9,800.00 9,800.00 9,800.00 58,800.00
2. Hardware              
Client Computers         159,000.00   159,000.00
Server         51,000.00   51,000.00
Router Switch         5,000.00   5,000.00
Modem         1,700.00   1,700.00
Firewall and VPN         25,000.00   25,000.00
3. Software              
Windows XP Software         49,000.00   49,000.00
Project manager 57,575.76 57,575.76 57,575.76 57,575.76 57,575.76 57,575.76 345,454.55
Technical Lead 35,984.85 35,984.85 35,984.85 35,984.85 35,984.85 35,984.85 215,909.09
Senior JAVA Developer I 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 172,727.27
Senior JAVA Developer I 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 172,727.27
Junior GUI Developer I 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 129,545.45
 Junior GUI Developer II 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 129,545.45
Interface Expert 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 172,727.27
mySQL DBA Expert 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 172,727.27
DB Administrator 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 21,590.91 129,545.45
Senior Network Engineer 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 28,787.88 172,727.27
Tester 17,992.42 17,992.42 17,992.42 17,992.42 17,992.42 17,992.42 107,954.55
Software Quality Assurance
Engineer 17,992.42 17,992.42 17,992.42 17,992.42 17,992.42 17,992.42 107,954.55
Business Analyst 25,189.39 25,189.39 25,189.39 25,189.39 25,189.39 25,189.39 151,136.36
OT reserves* 25,200.00 25,200.00 25,200.00 25,200.00 25,200.00 25,200.00 151,200.00
4. Testing (10% of total
hardware &
software costs)           262,258.18 262,258.18
5. Software packaging              
Software CD           5,000.00 5,000.00
Software & Hardware
manuals           35,000.00 35,000.00
6. Training and Support              
Trainee Cost           50,000.00 50,000.00
System Installation           50,000.00 50,000.00
Travel Cost           20,000.00 20,000.00
7. Others              
Team Building Activities 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 60,000.00
Administration needs
(Paperclip,
folder, etc) 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 60,000.00
Transportation Allowance (to
&
from client's company) 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 120,000.00
 Marketing Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 60,000.00
8. Reserves (20% of total
estimate) 141,765.27 141,765.27 141,765.27 141,765.27 141,765.27 141,765.27 850,591.64
Totals 731,765.27 731,765.27 731,765.27 731,765.27 1,022,465.27 1,154,023.45 5,103,549.82

*Overtime Pay Computation

Daily salary = (monthly

salary / 22 days)
Hourly OT rate = (daily salary / 8 hours) * OT
rate

*OT rate
regular day -1.25%
non-working
holiday - 1.30%