1
FIT2002 Project Management
Semester 1, 2012
ASSIGNMENT 1
PROJECT SELECTION, CHARTER AND WBS/NETWORK DEVELOPMENT
Value: This assignment is worth 20% of your final assessment in the unit.
Submission Date: 4:00pm Friday May 4, 2012 (Week 9)
Type of Assignment: Individual
Aims: This assignment is designed to demonstrate your:
• understanding of project initiation, in particular the preparation of a project
charter
• ability to apply techniques to evaluate financial attractiveness of a project
• develop network diagrams based on project activities
• ability to perform network crashing techniques
Submission details
Hurdle Requirement: Your assignment must include a completed and signed Individual
Assignment Cover Sheet as the first page. The Cover Sheet is available at:
http://www.infotech.monash.edu.au/resources/student/assignments/
No written work will be accepted without the signed cover sheet that must be the first page of
the assignment. This requirement will assist us in confirming the originality of the content of
the assignment.
Students should submit their assignment in an allocated ASSIGNMENT BOX at the School
office unless alternative arrangements are made by campus lecturers. Please ensure you keep a
backup of your assignment.
All submissions must be single spaced and use a font such as Times New Roman in 12 point.
In addition students should also be aware of the plagiarism and collusion policies established
by FIT and Monash University. This policy can be found at:
http://www.infotech.monash.edu.au/resources/student/assignments/policies.html.
Extensions: Applications for extensions must be submitted and approved by your campus
lecturer at least 3 DAYS BEFORE the due date. All applications for extensions must be made
in writing (email application is acceptable) and provide convincing reasons for the extension.
Where appropriate supporting material should also be provided. A draft of the material
prepared by then should be ready for tutor’s consideration.
Late Submissions: Late submissions will be penalised at the rate of 10% of the total mark per
day, including weekends and public holidays.
2
Assignment Details
Case Scenario: Assume that a large Manufacturing company is considering implementing a
Customer Relationship Management (CRM) system to improve customer service
performance. It has contacted a CRM vendor who has given a cost estimate of AU$1.7m. The
system implementation must be completed within 2 years. As a project manager, you are
required to achieve initial approval from the senior management, complete a cost benefit
analysis, and develop a task scheduling (including network development a nd crashing).
Major stakeholders include senior managers of various functional departments (e.g. chief
financial officer, chief information officer, chief control officer), organisational employees
who would be the users of the proposed CRM system, and internal and external consultants.
Your Tasks: Drawing on the description given in the previous paragraph, you are required
to perform a number of activities specified below:
Task 1: Project charter
Develop a project charter for the proposed CRM project. You may need to make necessary
assumptions in preparing the charter but make sure these are clearly stated. An outline of the
CRM Project Charter is provided below:
• Project title and date of authorisation
• Project manager’s name and contact details
• Summary schedule
– Start and end dates
– Milestones
• Summary budget
• Brief description of objectives, and a brief description of business justifications for
the project
• Roles and responsibilities
• Sign-off section
• Comments (if any)
Task 2: Financial analysis
The projected costs and benefits of the proposed CRM project are given in Table 1. Consider
the discount rate as 8%. Perform:
(a) NPV calculation
(b) ROI calculation
(c) Find the payback period
Based on the calculations, comment on the economic justification of the CRM
project.
Table 1: Costs and expected benefits of the CRM project (in million Australian dollars)

3
Task 3: Network diagram calculations
Several key activities involved in the proposed CRM project are listed in Table 2 along
with the information regarding their duration and dependency relationships. Using the
information in Table 2:
(a) Draw a Network diagram.
(b) Find critical path(s).
(c) Complete float calculations.
Table 2: CRM project activity information

Task 4: Network crashing and cost calculations
Drawing on the network diagram you have developed in Task 3(a) and information given in
Table 2, determine the minimum duration you require for finishing the CRM project.
Also, find out the relevant cost increment. In particular, you should perform the following
activities:
(a) Full crash for the network diagram.
(b) At each crash, find out the project cost and crashing cost.
(c) Draw a new network diagram for each crash.
(d) Find the % cost increase for a full crash.
(The End)