2016-18

ITPM

ASSIGNMENT-1

Resource Loading & Cost Budgeting Exercise

SUBMITTED TO:
Prof. NMK Bhatta

SUBMITTED BY:
Bhavik Leuva (2016PGP093)
Divya Deolkar (2016PGP113)
Gourav Sarkar (2016PGP133)
Kritika Kapoor (2016PGP181)
Pranesh Bisen (2016PGP277)
Rachna Murarka (2016PGP291)
Resource Loading and Cost Budgeting Exercise

Introduction
Tanjavore Consultancy Services recently got an assignment from People Bank. To implement a core
banking solution at Coimbatore. The total cost for this project is estimated to be INR 146 Cr.
Expected time for completion is 12 months, 12 months warranty post completion of project and 12
months maintenance support after completion of warranty period.

Methodology and Assumptions

We have, followed liner programming to solve this issue in the most efficient way. Assumption is the
project is starting from 1st January First, we made the schedule for 12 months and then we deep
dived into number of resources required for each resource. It is assumed that the project is initiated.
We have increased manpower in case of redundancies related to clients and reworks required. The
reason of doing so was to make project complete in 12 months. Also, we have assumed that each
module requires a data migration, so the data migration process is included in each module.

Location
The constraint from client side on location is there should be only one offshore location so choosing
a location becomes increasingly important. We have chosen Bangalore as the base location for our
project, as it is nearest to the client. Also, we can implement the Near Shore model through
Bangalore and no of resources on the onsite location will reduce.

Provision for Risks and Contingencies

Below are some risks identified by us and how we planned to overcome them-

Attrition and resource unavailability Risk By choosing the location as Bangalore, we reduced both
the risks as unlike Indore, attrition rates are not very high and resources are available at Bangalore.

Deadline Extension Risk The expected completion time in this project is 12 months. The major
delaying risks are Rework and Contingencies due to client related delays. We have eliminated this
risk by allocating more resources ex: Design is 400 hours job, it is mostly done at client locations so
20% extra effort is required, this converts to 80 man hours. So, to complete job in 1 month, we hired
three Designers instead of 2.

Dearth of Client Interaction We are following waterfall model in this project where client
interaction is less and it is possible that client becomes unhappy because they cannot keep track of
the project. To overcome this, we decided to go with Near Shore location, Bangalore.
Critical Paths in the project
Project construction and unit testing process is where we can go in a non-liner fashion. The process
is simplified in the block diagram below.

Module 1

Dependency- NIL,
Work - 2MLC

Module 2 Module 5 Module 6 Module 7

Dependency- NIL, Dependency- 2, Work Dependency- 5, Work Dependency- 1,6
Work - 3MLC - 3MLC - 2MLC Work - 5MLC

Module 3 Module 8

Critical Path
Dependency- 3
Dependency- NIL,
Work - 1MLC Work - 3MLC

Module 4 Module 11
Dependency- NIL, Dependency- 4, Work
Work - 4MLC - 1MLC

Module 9 Module 12
Dependency- 6, Work Dependency- 9, Work
- 2MLC - 3MLC

The critical path is 2-5-6-9-12.

Complete Project Duration

S. No Project Phase Duration (months)

1 Requirement gathering and Analysis 1
2 Design 0.5
3 Test Plans 0.5
4 Constructing and Unit Testing
5 Integration Testing
6 Data Base Design 8
7 Data Migration
8 Training
9 UAT
10 Roll out & Go Live 2
11 Warranty 12
12 Maintenance & Support 12

We have assumed that

Each month has 20 days with 8 hours work shift

The duration of each phase has been assumed from the Project Planning session taken in class.
The phases from 4 to 9 will be repeated for each module ( The calculations are attached in the
Excel)

Calculation of Resource Allocation and Budgeting

Please find the attached excel with the calculations done (Solver is used and the objective here was
to minimize cost with the given constraints)

The demarcations for each module and each phase with the number of resources and costing is
indicated in the excel sheet attached.
ITPM_Solution.xlsx