1

2

Executive Summary

We carried out this netbook selection project in order to purchase the best suitable netbook for

managers and sales executives of an international company. When we compare the netbooks, we

considered some facts such as usability, functionality of netbooks, for now and for the future, and TCO.

To accomplish our project within a month, we considered to manage our project with a standard

methodology. We used a tailor-made methodology by combining PRINCE 2 and PMBOK standard to

systematically manage our netbook procurement project. In addition, we used a good quality management

approach which includes three main processes: planning, assurance and control for quality.

Then, we created work break down structure and defined resources. Next, schedule management

tools such as Gantt chart and Activity Network Diagram were utilized to identify our project's milestones,

costs, responsibility of each team member, dependency between activities and duration of each activity.

We also decided to use Spread Sheet Model which is the easiest and most efficient technique to

compare the products. So, we could define the important factors and criteria which will best suit with our

business requirements. After comparing the scores got by each netbook model for all factors, we

recommended Toshiba because it can provide abundant storage capacity, excellent customer services,

efficient performance and usability. Moreover, it has high durability and its price is also reasonable.

Consequently, we do believe that our managers and sales executives will surely be happy with our

recommended Toshiba netbook.

3

4

Report for Netbook Procurement Project (Word Count - 999)

We could successfully accomplish our Netbook Procurement Project by managing with many

systematic ways. So, we want to present to the Project Steering Committee about how we made sure the

successful rollout of our project. In this report, we will describe about our selected project management

methodology together with the reasons of choosing it, our approach of managing project quality and our

recommended netbook model.

Every project needs a project management methodology to achieve the goals for which the

project is being carried out. Therefore, we analyzed which methodology is best to manage our project and

found that "Projects In Controlled Environments (PRINCE 2)" can assist our project in many ways.

By applying PRINCE 2, we can easily set up our project team and define their accountability

precisely because standard role descriptions suitable for all sorts of projects are described in it. Another

important fact of choosing it is most people across our organization are familiar with PRINCE 2. As our

company is an international company, standardization is essential in managing our projects. Since

PRINCE 2 can provide a standard approach and it is easy to use and learn even for the project team

members with limited experiences, we have been using it to manage all types of our projects. So, we

planned to use it for this netbook procurement project too. Another reason also created the potential to

choose this methodology. This is PRINCE 2 can reduce risks by providing many excellent quality control

techniques. Since our project must be completed within one month, we needed to consider these aspects

to make sure of delivering our project with low risks and good quality.

Although we decided to use PRINCE 2 for above reasons, procurement management is not

covered in PRINCE 2. As our project is netbook procurement project, we realized to use another

framework in conjunction with PRINCE 2. Then, we observed that there is a best standard which can give

guidelines to manage procurement processes and contract administration. This is "Project Management

Body of Knowledge (PMBOK)" which can more fully describe the ways to handle the procurement flow

rather than other methodologies. By these ways, we could manage our project successfully by using a

tailor-made methodology formed by combining PRINCE 2 and PBMOK.

5

As we have presented above, we must accomplish our project with good quality so that we can

assure the successful roll-out of our project and use of our selected netbooks. So, we want to clarify the

quality management approach that we had utilized for our project to satisfy the implied or stated needs

of our company and staff. We used the approach of integrating quality management throughout our

project life cycle. Our project quality management contains three key processes: (1) quality planning, (2)

quality assurance and (3) quality control. (Schwalbe, 2007)

At the start of the project, we performed the quality planning process. Firstly, we defined the

quality standard or metrics (functionalities, usability, reliability, etc.) our desired netbook should have.

So, we made market research on the netbook models and listed evaluation factors and criteria to compare

the quality of each model. Project quality management plan was also created based on vendor

management plan and budget because project cannot finish on time if vendor does not perform in

accordance with contract. Likewise, if project costs exceed the available budget, we cannot say that our

project is good in quality. So, selected vendor's actions and budget must be monitored so that we can

produce a good quality project.

Next, we made assure our project quality by testing selected netbook models and using product

selection method such as WSM. At the end of project execution stage, we applied a quality assurance tool

such as a quality audit to review the particular quality management activities. Finally, we controlled the

quality with post implementation evaluations. We made survey on user's satisfactory level about selected

netbook model and our procurement management. Apart from this, since we reselected the one among

four netbook models which are the most suitable with our business requirements, we also believed that

quality has already been controlled.

After justifying our selected methodology and quality management approach, we want to

recommend a netbook model to meet the needs of our company and staff. We defined 31 criteria under

six factors to compare four netbook models: Samsung, HP, Sony and Toshiba. These main factors are

technical considerations, netbook ergonomic features, business considerations, long-term prospects, TCO

and build quality. We gave the weighted scores to each netbook model for all criteria and then, calculated

the average weighted scores got by each netbook. Finally, we have seen that Toshiba got the first place

with 63.59% followed by HP with 55.975, Samsung with 54.49% and Sony with 53.19%.

Consequently, we want to recommend Toshiba for our netbook procurement project after

calculating and comparing the percentage of scores got by each netbook model. The most prominent

reasons why we chose Toshiba are because of its specialized security features, abundant storage capacity,

efficient performance and usability such as large keyboard layout, smart design. Moreover, as it is a

second most reliable netbook brand in the netbook market, it is high durable, has good brand reputation

6

and achieved 4 stars consumer ratings. Apart from this, Toshiba provides excellent customer services and

international warranty. So, we can get long-term prospects. In terms of costs, we noticed that Toshiba

netbook price is reasonable and its warranty extension charges are inexpensive. The last thing what made

us recommend Toshiba is that it is best suitable with business travellers like our sales executives because

of its good battery life, performance and extra light weight.

To conclude, more value could be added to our project because of our tailor-made methodology.

Moreover, we could perform quality management processes by dedicating two aspects: conformance to

requirements and fitness for use with the help of our quality management approach. So, we do hope that

the investment for our recommended Toshiba netbooks costing about $314,544 can satisfy the needs of

our staff.

7

References

Web References

Report for Netbook Procurement Project

URL :

http://www.aipm.com.au/resource/A%20comparison%20of%20Prince%202%20vs%20PM

BOK.pdf

http://www.goalgroup.com.au/SiteFiles/goalgroupcomau/C007_ComparingPMBoKAndPRI

NCE2In2009.pdf

http://www.logro.sk/na_stiahnutie/project_management_-

_comparing_prince2_with_pmbok.pdf

Access Date : 14th October, 2012

Information of Netbooks

URL : http://www.gogodigital.co.uk/toshiba-nb500-12x-black-10-1-atom-n455-netbook-

1gb-320gb-windows-7.html

http://www.reghardware.com/2012/08/28/product_round_up_ten_netbooks/page3.html

http://reviews.cnet.co.uk/netbooks/samsung-nc110-review-50004178/

http://www.expertreviews.co.uk/laptops/277054/sony-vaio-m-series-m11m1e

Access Date : 14th October, 2012

8

Bibliography

Schwalbe, K. (2007). Information Technology Project Management (5th ed.). (M. P.Martin, Ed.) Boston:

GEX Publishing Services.

9

Appendices

Appendix A (The Spread Sheet Model)

1. Selected Factors and Criteria for Spread Sheet Model

Firstly, we will have to define some business related factors and criteria to create a spreadsheet-

based 2-level WSM. So, we analyzed the needs of our staff and found that functionality and usability are

highly requested by them. Apart from this, the company also wanted us to consider for business prospects

for future. Moreover, we usually notice about the tangible costs such as netbook purchasing costs and

project development costs and we do not aware the hidden costs. So, if we do not carefully plan for TCO,

costs can be too high. As company also wanted us to evaluate TCO, we took it into consideration as a

factor. Consequently, we picked up the following factors and criteria for our netbook procurement

project.

Figure – 1.1

10

Figure – 1.2

11

2. Descriptions of Weighted Score Range

We gave the weighted scores to all these factors and criteria according to our predefined weighted

score standard. We defined the range of scores between 0 and 10 and the following table is the

descriptions of the range of scores.

Figure – 1.3

12

3. Calculation Methods of WSM and TCO

(i) Calculation Methods of WSM

We will demonstrate how we calculated weighted scores for comparing netbook models by

giving HP netbook model as an example.

Figure - 3.1

1. For Factors and Criteria, we assigned their weight and calculate their maximum score.

E.g. Netbook Ergonomic Features Factor (8 out of 10)

Usability and Design (8 out of 10) Max Score 8 * 10 = 80

Portability or Mobility (7 out of 10) Max Score 7 * 10 = 70

Screen Size (5 out of 10) Max Score 5 * 10 = 50

2. For each netbook model, we gave score for each criterion to show how much a netbook can

satisfy each criterion and calculate total score of each criterion.

E.g. For HP 210-4125sa

Usability and Design (5 out of 10) Total Score 5 * 8 = 40

Portability or Mobility (5 out of 10) Total Score 5 * 7 = 35

Screen Size (6 out of 10) Total Score 6 * 5 = 30

3. To calculate the percentage got by each netbook for each factor, total scores must be divided

by maximum scores and then multiply with 100.

E.g. For HP 210-4125sa

Percentage got by HP for Netbook Ergonomic Features Factor = (105/200) * 100

= 52.50%

13

Figure - 3.2

14

(ii) Calculation Methods of TCO

TCO is also an important factor to consider while planning a spread sheet model because it is

more vital than netbook purchase price according to head office. So, we calculated TCO in a separate

excel sheet.

Firstly, we will calculate TCO for each netbook. We divided two categories of costs in

calculating TCO. First category is one-off costs and second one is recurring costs. One-off costs are the

costs that we have to pay only once for the procurement of netbooks and they include netbook purchasing

costs, project development costs, licensing costs, consultant fees and training fees. Recurring costs are the

costs that we will have to pay throughout the product life cycle and warranty extension charges, monthly

operational and overhead costs and service fees for 2 years are included under this category. But, we can

get 35% return if we sell an old netbook after two years. So, we will firstly add one-off costs and

recurring costs and then subtract the money got from selling an old netbook to calculate TCO for each

netbook. The formula is as follows:

Figure – 3.3

15

How Spread Sheet Model can assist us for our netbook procurement project?

To summarize, Spread Sheet Model is the easiest and most efficient technique to compare the

products. We could define the important factors and criteria which will best suit with our business

requirements with the help of spread sheet model. Based on our defined factors and criteria, we could

compare the four netbook models by assigning scores to them for each criterion. As we can see clearly the

percentage of scores got by each netbook model, it is very convenient for us to choose the most suitable

one for our staff. Moreover, we could evaluate each netbook model's TCO which can have a great impact

on business benefits. As a result, we could reduce the business risks because hidden costs of each netbook

model could be considered. By analyzing all these facts, what we can conclude is that implementing

spread sheet model can give us many advantages by creating more possibilities to meet the requirements

of our sales executives.

16

4. Test Plan

After implementing the spread sheet model, it will be necessary to test that our spread sheet

system to ensure that it is robust and flexible. Therefore, we arranged a test plan to carry out testing of

some functions used in our spread sheet model. When we drew a project plan for our netbook selection

project, we put a task in our project to select suppliers for our netbooks. The name of this task is "Source

Selection by Using WSM and TCO" which will be carried out on 16th October to 19th October. So, we

will perform our testing during these days after creating spread sheet model to select the potential netbook

model.

Date Tasks

17th October Cell Validation

17th October Cell Formatting

17th October Cell Calculation

18th October Automatic Graphs

18th October Cell Protection with Sheet Password

18th October Comments

17

5. Test Log

5.1 Cell Validation

Test Log ID Tested Cell No Test Data Expected Result Outcome (see figure)

5.1.1 F14 -1 Error Message Figure – 5.1.1a

Figure – 5.1.1b

5.1.2 F14 11 Error Message Figure – 5.1.2a

Figure – 5.1.2b

5.1.3 F14 abcde Error Message Figure – 5.1.3a

Figure – 5.1.3b

5.1.4 F14 8 Input Acceptance Figure – 5.1.4a

Figure – 5.1.4b

Test Log 5.1.1

Before

Figure – 5.1.1a

After

Figure – 5.1.1b

18

Test Log 5.1.2

Before

Figure – 5.1.2a

After

Figure – 5.1.2b

Test Log 5.1.3

Before

Figure – 5.1.3a

After

Figure – 5.1.3b

19

Test Log 5.1.4

Before

Figure – 5.1.4a

After

Figure – 5.1.4b

20

5.2 Cell Formatting

Test Log ID Tested Cell No Test Data Excepted Result Outcome (see figure)

5.2.1 O11 Decimal value and

percentage is not

calculated.

Decimal value must be

in the percentage

format and it must have

two decimal place.

Figure – 5.2.1a

Figure – 5.2.1b

Test Log 5.2.1

Before After

Figure – 5.2.1a Figure – 5.2.1b

21

5.3 Cell Calculation

Test Log

ID

Tested Cell

No Applied Formula Test Data Excepted

Result Outcome

(see figure)

5.3.1 N4 Multiplication * =F4*M4 48 Figure - 5.3.1a

Figure - 5.3.1b

5.3.2 N5, N6, N7,

N8, N9,

N10

Copying Formula

of N4

Plus sign will

appear while

putting mouse

pointer bottom

right corner of cell

N4. Drag it

downward until it

reaches cell N10

and releases it.

N5 = 64

N6 = 56

N7 = 7

N8 = 36

N9 = 30

N10 = 28

Figure - 5.3.2a

Figure - 5.3.2b

5.3.3 N11 Addition

SUM (Number1,

Number2,…)

=SUM(N4:N10) 269 Figure - 5.3.3a

Figure - 5.3.3b

5.3.4 O11 Division

Number1/Number2

=N11/G11 59.78% in

percentage

format or

0.59777778

Figure - 5.3.4a

Figure - 5.3.4b

22

Test Log 5.3.1

Before

Figure - 5.3.1a

After

Figure - 5.3.1b

23

Test Log 5.3.2

Before

Figure - 5.3.2a

After

Figure - 5.3.2b

24

Test Log 5.3.3

Before

Figure - 5.3.3a

After

Figure - 5.3.3b

25

Test Log 5.3.4

Before

Figure - 5.3.4a

After

Figure - 5.3.4b

26

5.4 Automatic Graphs

Test Log ID Tested Cell No Test Procedure Expected Result Outcome (see figure)

5.4.1 A2, A3, B2,

B3, C2, C3,

D2, D3

Select all tested cell no and

choose Column Chart from Insert

Menu.

Automatic Graph Figure - 5.4.1a

Figure - 5.4.1b

Figure - 5.4.1c

Test Log 5.4.1

Before

Figure - 5.4.1a

After

Original Graph After Modifying the Design

Figure - 5.4.1b Figure - 5.4.1c

27

Test Log ID Tested

Cell No

Password Test Data Expected Result Outcome

(See Figure)

5.5.1 M20 - Click on the cell

M20

Message box describing

the sheet is protected

will be displayed.

Figure – 5.5.1a

Figure – 5.5.1b

5.5.2 M20 Q Click on the cell

M20

Modification will be

allowed.

Figure – 5.5.2a

Figure – 5.5.2b

Test Log 5.5.1

Before

Figure – 5.5.1a

After

Figure – 5.5.1b

28

Test Log 5.5.2

Before

Figure – 5.5.2a

Choosing unprotect sheet from Review Menu Entering Password Q

Figure – 5.5.2c

Figure – 5.5.2b

After

Figure – 5.5.2d

29

5.6 Comments

Test Log ID Tested Cell No Test Data Expected Result Outcome (See figure)

5.6.1 D15 Adding new comment Display comment when

mouse pointer hovers

cell no D15.

Figure - 5.6.1a

Figure - 5.6.1b

Test Log 5.6.1

Before

Figure - 5.6.1a

After

Figure - 5.6.1b

30

Appendix B (Explanations of Presentation)

In this section, we will demonstrate our presentation slides together with some notes we used to

make our presentation more effective. In this presentation, we will justify our chosen business related

factors and criteria by explaining why they are important for business purposes, the reasons of giving the

scores to each netbook and our final recommended netbook to satisfy our business needs.

Slide 1

1. This is the introduction slide

which shows what we are going to

present to the audience. In this

slide, we will start our presentation

by describing the contents of our

presentation.

31

Slide 2

2. This slide will describe our chosen

business related factors and criteria

and the reasons of why they are

important in buying the netbooks for

our staff. Factors and criteria will be

arranged from the highest scores to the

lowest scores. Details of three factors

such as Technical Considerations,

Netbook Ergonomic Features and

Business Considerations will be

explained.

Netbook Ergonomic Features – this

can add value to the netbooks by

letting users feel comfortable while

using a netbook.

Slide 3

3. This slide is also the same as above

slide. In this slide, details of three

factors: Long-term Prospects, TCO

and Build Quality will be presented.

Licensing Costs – Operating System

License costs and other software

license costs.

TCO – Total Cost of Ownership

Build Quality – The most prominent

benefits that a netbook can bring or a

netbook comes together with.

Best Value – Best Price

Best for Business Travelers – This

will be decided based on functionality,

performance, portability and battery

life.

32

Slide 4

4. In this slide, our defined weighted

score standard will be explained. Then,

our weighted score model which

compared four netbook models will be

clarified. There will also be a link to our

excel spread sheet. If we click on

"Descriptions of Weighted Score Range,

WSM and TCO", our excel spread sheet

will be opened.

Slide 5

5. We will continue presenting our

weighted score model in this slide. If we

click on "Descriptions of Weighted

Score Range, WSM and TCO", our excel

spread sheet will be opened.

33

Slide 6

6. For all four netbook models, we

will describe how we calculate their

total weighted scores, maximum

scores and average scores to evaluate

which netbook got the highest scores.

Slide 7

7. This will show how we calculated

Total Cost of Ownership.

One-off Costs – costs that we must

pay only once for the procurement of

netbooks and they include netbook

purchasing costs, project development

costs, licensing costs, consultant fees

and training fees

Recurring Costs - costs that we will

have to pay throughout the product

life cycle and warranty extension

charges, monthly operational and

overhead costs and service fees for 2

years are included under this category

Return Costs – money that we can

get by selling the old netbooks after

two years period

34

Slide 8

8. Finally, we will compare

overall scores got by each

netbook model. To see clearly, we

will demonstrate with graph.

Slide 9

9. This slide will show the reasons

of why each netbook got the

scores described in above slide.

We will justify with strengths and

weaknesses of each netbook.

35

Slide 10

10. This slide will also describe

the strengths and weaknesses of

Sony and Toshiba.

Slide 11

11. This is final recommendation

and thank you slide. We will end

our presentation by

recommending Toshiba netbook.

We will also explain the reasons

of choosing it.

36

Appendix C (Project Plan)

In this section, we will explain about our implemented project plan for our netbook selection

project. We will use Microsoft Project Plan 2007 which is project management software to create a work

breakdown schedule, a network diagram and a Gantt chart together with the critical path. Moreover, we

will assign the resources and responsibilities to carry out our project from start to end. Finally, we will

calculate the total project development costs which will be included in Total Cost of Ownership. This cost

will be considered in our Weighted Score Model.

To develop the work breakdown schedule, we will apply two approaches stated in (Schwalbe,

2007). They are –

(i) the analogy approach – we will analyze WBS of similar projects and then create our tailor-made

WBS based on them.

(ii) the Top-down approach – we will firstly think about high level tasks and then placed the sub tasks

under these main tasks.

(1) Work Breakdown Schedule

We created work breakdown structure to define the overall scope of our netbook selection project

as it can act as a foundation for planning and managing our project schedules, resources and costs. There

are five main stages in our project plan and we will also describe the sub-tasks and milestones under each

main task. As monitoring processes will be integrated throughout the project life cycle, we will not show

it as a separate task.

(i) Initiation

Preparing charter and preliminary project scope statement

Project Charter and Preliminary project scope statement (milestone)

(ii) Planning

Carrying out Make-Or-Buy Analysis and Market Research

Define evaluation factors and criteria for WSM and list qualified sellers

Assign Resources and sign team contract

Planning project's quality with vendor management plan and budget

Procurement Planning

Procurement Management Plan (milestone)

Prepare procurement document such as RFP

37

(iii) Execution

Requesting Seller Responses

Testing selected netbooks models

Source Selection by using WSM and TCO

Procurement Contract (milestone)

Make payment for purchased netbooks

Progressing delivery and inspecting delivered netbooks

Training

Delivered netbooks to 400 staff and Finish Training (milestone)

Performing procurement audits for performance and quality

(iv) Closing

Prepare and present lessons learnt report

Project Roll Out

Closed Contract (milestone)

(v) Post Implementation Evaluations

Making survey on user's satisfactory level about netbooks and procurement management

Produce Finalized Project Report (milestone)

Justifications of Sub-tasks

Preparing charter and preliminary project scope statement

Firstly, a project charter will be defined to let the key stakeholders know their general roles and

responsibilities, project title, project start and finish date, project manager's name, project objectives,

budget information and the approaches to use for developing the project. Then, key stakeholders will have

to comment, agree and sign the project charter.

An outside consultant will be hired because we need person with specialized skills to accomplish

the netbook procurement project within a month.

Secondly, preliminary project scope statement will be developed based on project charter. In

preliminary project scope statement, required characteristics and features of netbook will be described. At

this stage, WBS will also be developed because it can demonstrate a complete picture of our project's

scope.

38

Project Charter and Preliminary project scope statement (milestone)

This is a milestone and project charter and preliminary project scope statement will be produced

as outputs.

Carrying out Make-Or-Buy Analysis and Market Research

For planning purchases and acquisitions process, we need to make market research on the

strengths and weaknesses of netbook models in the market. Only if, we will know which netbook models

can meet our business requirements. After that, we need to carry out make-or-buy analysis to evaluate

whether company can gain more benefits from purchasing the netbooks or hiring the netbooks from an

outside organization.

Define evaluation factors and criteria for WSM and list qualified sellers

Consultant will need to define evaluation criteria to select the best netbook which can meet the

requirements of company. Examples of these factors will include technical considerations such as

functionality, performance, reliability, connectivity, netbook ergonomic features such as usability, design,

portability, screen size, business considerations such as brand reputation, discounts, long-term prospects

such as availability in the local market, customer services, extensibility, and other criteria such as TCO

and build quality of netbooks.

Consultant will need to analyze the result of market research to list the qualified sellers in the

market from which we can purchase the netbooks.

Assign Resources and sign team contract

Inputs to this task are the project charter and preliminary project scope statement. Project

manager will break down the tasks, assign the responsibilities to the respective project team members and

show the project communication chart. Then, project team members will need to sign the team contract.

Planning project's quality with vendor management plan and budget

We will plan project's quality based on vendor management plan and budget. When we applied a

quality planning technique such as design of experiments, we realize that vendor management plan and

budget have the most influence on the overall outcome for the project. This is because project will not

finish at the predefined time if vendor does not perform according to the contract. So, we will need to

monitor the actions of selected vendor and think what to do if they do not perform according to their

promises so that we can produce a good quality project. Likewise, if project costs exceed the available

39

budget, we cannot say that our project is good in quality. So, we must arrange project quality management

plan based on vendor management plan and budget.

Procurement Planning

Every project consists of some planning. We will arrange a plan to manage our netbook

procurement project. In this plan, we will document how our netbook procurement processes will be

controlled and managed, from planning purchases and acquisitions to closing the contract.

Procurement Management Plan (milestone)

Procurement Management Plan will be produced as a milestone. It will include such things as

types of contracts to be used, standard procurement documents, make-or-buy decisions, roles and

responsibilities of members of project team, guidelines for selecting prequalified sellers and for

evaluating sellers and procurement metrics for managing contracts and seller's performance and actions.

Prepare procurement document such as RFP

We will need to prepare a procurement document such as RFP. We will need contract type,

procurement management plan, make-or-buy decisions to produce a good RFP. RFP is required for

prospective sellers to prepare the proposals which must be presented to project team.

Requesting Seller Responses

We will have to send our prepared RFP to potential sellers on 10 October and we will give them 2

days to prepare their proposals. On 11 October, we will collect their proposals.

Testing selected netbooks models

We will ask potential sellers for delivering a technical presentation of their netbook models as

part of their proposals. Project team will also test all netbook models to evaluate whether they can meet

user requirements.

Source Selection by using WSM and TCO

When we receive proposals from potential sellers, we will need to carry out source selection

which is the process of selecting the best seller for our netbook procurement project. We will plan two

level weighted score model to compare and contrast the sellers. While comparing the sellers, we will

consider functionality, usability and TCO of each netbook model. We will choose the proposal with

highest weighted scores. After that, we will make agreement with the selected seller and sign contract

with them.

40

Procurement Contract (milestone)

Procurement Contract is a mile stone that occurred on 10 October after signing the contract with

outside seller.

Make payment for purchased netbooks

We will have to issue the invoices and transfer money from our bank account to theirs within two

days.

Progressing delivery and inspecting delivered netbooks

Delivery process will be carried out by them and we will need to make inspections on the

delivered netbooks to check whether they have been damaged or not. If the netbooks have been damaged,

project procurement contract administrator will be responsible to contact with seller and replace the

damaged netbooks.

Training

We will need to deliver training on how to use the selected netbook to the staff.

Delivered netbooks to 400 staff and Finish Training (milestone)

This is a milestone and delivering netbooks and training to 400 staff must be completed at this

point.

Performing procurement audits for performance and quality

A procurement auditor we have assigned will audit the performance and quality of our project

and he will have to produce an audit report. Then, he will have to present his findings to our project

steering committee.

Prepare and present lessons learnt report

Project manager will need to review the audit report and other things that he have experienced

during carrying out the netbook selection project. Then, he will have to prepare lessons learnt report and

present it to project steering committee. In lessons learnt report, he will describe whether our project meet

time, quality, the main lessons he learned.

41

Project Roll Out

At this stage, project manager will confirm that netbook selection project has successfully

accomplished and then will sign off the project. Project manager and the seller will also have to close the

procurement contract.

Closed Contract (milestone)

Closed Contract is a milestone resulted from project roll out task.

Making survey on user's satisfactory level about netbooks and procurement management

Procurement officer will perform post implementation evaluations to make sure that our selected

netbook model meets the requirements of staff. So, procurement officer will make survey on user's

satisfactory level about netbooks and procurement management. Then, project manager will prepare to

create finalized project report based on the facts collected by procurement officer.

Produce Finalized Project Report (milestone)

Finalized project report is a milestone which is produced after making survey on the feedback of

staff about selected netbooks.

Figure – AppC1.1 (WBS)

42

Figure – AppC1.2 (Important Milestones of WBS)

43

(2) Define Resource Names by Using Resource Sheet

We will define the resource names which are the persons included in developing our netbook

selection project and assign their standard rate and overtime rate per hour by using the resource sheet of

Microsoft Project Plan. People who will involve in developing our netbook selection project are:

Project Manager (Project Manager is the leader of our netbook selection project. He has the

main responsibility from project initiation to roll-out.)

Consultant (As our netbook selection project must finish within a month, we will have to hire

outside consultant who understands about the netbooks and procurement project and processes.

Only if, we can successfully accomplish our project within a short period of time.)

Project Procurement Contract Administrator (The most important thing about procurement

project is to monitor the seller's actions and performance. If seller do not do as they promised in

the contract, project procurement contract administrator will have to contact and negotiate with

seller.)

Procurement Officer (Procurement Officer will be responsible for minor administration

processes like requesting sellers' responses, training and making survey on users' feedback about

selected netbooks.)

Procurement Auditor (There are internal auditors employed at our company to monitor the

quality and performance of projects and processes carried out by company. We will assign an

auditor to measure our netbook selection project's quality and performance. As procurement

auditor is not needed in developing the project from start to end and he/she is only needed for

audit, we assigned his/her Max. Units 20%)

Project Team (Project Manager, Consultant, Project Procurement Contract Administrator and

Procurement Officer will be included in project team. Standard Rate will be calculated by adding

standard rate of above resources. Likewise, Overtime Rate will be calculated by adding overtime

rate of above resources.)

Figure – AppC2.1 (Resources)

44

(3) Schedule for Netbook Selection Project and Dependencies between Activities

In this section, we want to justify how we arranged the project schedule for our project. Firstly,

we defined the activities for our project based on the WBS we have described above. Then, we carried out

activity sequencing which is determining the dependencies or relationships between activities. We also

planned to run some activities in parallel if these tasks are performed by different persons so that we can

complete within a month. After that, we assigned the resources to take the responsibilities of each

activity. Finally, we estimated the duration for each activity including its start date and finish date.

Our netbook procurement project will last about 24days. Out of all tasks, we gave most of time

for planning stage and execution stage. The reason of why we assigned 6 days to planning stage is that

we have found that most projects of nowadays fail because of not having the systematic plans to manage

their projects. So, we gave enough time and efforts for planning stage. Execution stage has the longest

duration among all activities because many important milestones such as procurement contract and

delivered netbooks to 400 staff and finish training and critical tasks which can drive to the successful

roll-out of the project are included in this stage. Overall project duration and schedule can be seen in

below diagram.

Figure – AppC3.1 (Overall project duration and schedule)

45

Figure – AppC3.2 (Detail project duration and schedule)

46

(4) Gantt Chart

To complete our netbook selection project within a month, we will need to apply a schedule

development tool such as Gantt chart. Since Gantt chart can show project schedule information in a

calendar format, start and finish dates of activities can be easily seen (Schwalbe, 2007). Therefore, we

can manage time efficiently. With the help of Gantt chart, we can identify the critical path which includes

critical tasks and which can show the completion date of our project. Critical path can be seen in red

coloured bars in our Gantt chart. Apart from this, we also added the black diamond symbols which are

called milestones into our Gantt chart. By adding milestones, we can highlight crucial tasks and

accomplishments on projects.

Figure – AppC4.1 Gantt Chart for Our Netbook Selection Project (showing each activity with its

respective resource)

47

(5) Activity Network Diagram

We will describe our activity network diagram segment by segment. All the activities shown at

the network diagram come from the tasks of WBS. In network diagram, activities shown in red rectangle

are on the critical path and tasks described in hexagon are milestones. Following diagrams are activity

network diagram for our netbook selection project.

Figure – AppC5.1

Figure – AppC5.2

48

Figure – AppC5.3

Figure – AppC5.4

49

Figure – AppC5.5

Figure – AppC5.6

50

(6) Calculating Costs for Netbook Selection Project

We can calculate our netbook selection project development costs by using Microsoft Project

Plan. We can see clearly the costs of each task. After adding the costs of each task, we will cost about

$5,824 for developing our netbook procurement project.

Figure – AppC6.1 (Netbook Selection Project Development Costs)