Without Modification, any plan is a bad one”

1Contingency Plan

RUNNING HEAD: CONTINGENCY PLAN

Scheduling, Resources, and Budgeting

Carla J. McCoy

Unit 3 Individual Project – MGT110

April 7th, 2009

American InterContinental University

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Introduction

Every business knows that having a good Contingency plan will not only protect

firms in the event of disaster such as earthquakes, vandalism, civil arrest, floods, and fires

but it will also prepare them as well. This plan is designed for a time frame when disaster

occurs where the business ceases to exist. Small Business Works has goals of continuing

critical business functions and addressing the damage so that we can recreate our

organization. Without this plan it would cost our Organization pretty severely. This plan

will help in assisting Small Business Works to be able to come back from disaster within

an approximate allotted time frame of 15 days. What this does for our customers is allow

them to be serviced at a known time rather than guessing when our Organization will re-

open. Our customers deserve the best planning possible that minimize business disruption

because we don’t want our Organization to mitigate any loss. We look forward to all the

Modifications necessary in developing this Contingency Plan so our customers know

they can count on us year round. (Gill, 1996)

All Costs Involved

There are various types of cost involved in this project which are direct costs,

project overhead costs, and general or administrative overhead costs. Direct Costs are

normally identified as part of the project and are incurred as a direct result of delivering a

project. Overhead costs are needed in order to support as well as administer project,

activities, and the organization itself. Overhead costs are associated with strategic

development, research, management and leadership, development and innovation and

support functions such as IT, HR, finance and accommodation. These costs are split

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among activities within an organization. (NCVO, 2005-2007) General and

Administrative overhead costs are necessary for operations but do not have to be directly

associated with the development of a new product or service. (Forex Trading, 2007)

Cost Estimates Created April 10th, 2009

 Created By: Carla J. McCoyUnits/Hours Cost/Unit/Hour Subtotals

WBS Level 1 Totals % of Total

WBS Items          1. Project Management Labor       $300,600 25%(Direct) Project Manager 945 $120 $97,000    (Direct)Project Team Members 2000 $95 $148,000    (Direct)Contractors (15% software development & testing)     $69,200    2. Hardware       $78,350 8%(Project Overhead) Modems 250 $877 $74,320    Servers 7 $6,700 $18,499    3. Software       $770,000 58%(Project Overhead) 3.1 Licensed Software 200 $263 $26,850    (Project Overhead) 3.2 Software development     $600,000    4. Testing (12% hardware & software costs)     $74,500 $74,500 10%5. Training and Support       $242,000 20%(Direct) Trainee cost 250 $799 $58,200    (Direct) Travel/Volunteer Fund Raising cost 25 $800 $9,500    (Direct) Project Team Members 2,200 $100 $166,000    6. Reserves (25% of total estimate)     $275,800 $275,800 23%Total Project Cost Estimate       $1,741,250  

(Depaul.edu, 2009)

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Time Phased Budget

WBS Items Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Totals1. Project Management                          Project Manager 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 114,000Project Team Members 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 168,000

Contractors   7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 85,800

2. Hardware                          

2.1 Modems       42,000 42,000               84,000

2.2 Servers       9,600 9,600               19,200

3. Software                          3.1 Licensed Software       12,800 12,800               25,6003.2 Software Development   68,300 68,300 93,000 135,000 135,000 92,000 56,000   647,600     647600

4. Testing     7,510 9,350 13,500 17,000 17,000 14,600   78,960     78,9605. Training and Support                          

Trainee Cost                 58,000       58,000Travel Volunteer Fund Raising Cost                 9,200       9,200Project Team Members             26,700 26,700 26,700 26,700 26,700 26,700 160,200

6. Reserves       11,300 11,300 32,500 32,500 62,000 46,000 46,000 32,300 4,600 306,200

Totals 23,500 99,600 107,110 209,350 255,500 215,800 199,500 190,600 171,200 830,560 90,300 62,600 1,756,760

(Depaul.edu, 2009)

Cost Cutting

I’d have to say that our organization would need to create a structured controlled

software development process because they can be effective in complying with

regulatory requirements and reduces the cost of compliance. Having a structured

repeatable process will also reduce errors, save auditors time, and reduce the

requirements for rework. Manual intervention would be reduced where software can be

developed in a controlled manner. Another area costs could be cut are to apply best

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practice methodologies such as using stress automated, structured and repeatable

processes such as COSO, COBIT, ITIL, Six Sigma, and CMMI all make software

development processes easy to track, easy to measure and easy to control. Our

organization is going to turn to specific technology so our employees, IT Technicians and

business teams can get centralized and be put on an automated process driven system.

(Magid, 2009) Operating under a unified umbrella will not only improve synchronization

and coordination but they will also be able to report into the same system allowing them

to view, track, and share information. In doing this it will save time, money, headaches

and make the jobs easier for everyone. Costs will be reduced in making sure that project

teams build applications correctly the first time around as well as being able to provide a

secure, visible repository of all application artifacts. In establishing an automated

compliance and change process that’s repeatable this will reduce costs as well. (Magid,

2009)

(Wallace, 1997-2007)

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C om plete P ro ject 365 day effo rt

S ystem 50%

G raphic D esign

30%

D evelopm ent 50%

T esting 25%

Plan 20%

Prepare 25%

Conduct 50%

Review 10%

Project Team Review 50%

Business Review 50%

L abor 25% C hange M anagem ent 20%

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Similar project results that Small Business Works has used in the past are used in

order to produce estimates for the current projects we do so when we come up over

budget we realize we’ve done this before and begin to obtain a well educated guess

which is based on those past experiences. Of course we review the specific differences

between projects but we have a structured knowledgebase of past experience so that

project managers and projects themselves can accumulate experience. There are many

variables that will affect time and effort in any plan or project, but considering that

Programming and Graphics Creation Technicians have various job functions they need to

ask themselves questions at this point such as How they estimated the number of lines of

code that’s put into the calculation or how they estimated the coloring they would use in

the Graphics Creations. You will find that up above there is a breakdown structure of the

layers of work that will be performed. (Wallace, 1997-2007)

Software Development in one of our previous projects which we call Project S

took six months to deliver; however in our current Project which is called Project T being

as the projects are similar then the current Project will also take six months to deliver.

The Project Management Labor is made up of two tasks, Tasks S and Tasks T. Task S

took approximately 6 hours of effort; however Task T will take approximately 15 hours

due to the advancement in technology, therefore the Labor will take approximately 21

hours of effort. The Quantity of work also needs to be reviewed which will be multiplied

by the Productivity Rate which will equal the Effort put in to the project. Our Graphic

Creation Technicians in the previous project created 10 HTML pages which they

multiplied by 3 hours per page which came out to 30 hours of effort. One thing to keep in

mind is that the quantitative results of any Labor or activity are assessments and are

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always based on assumptions. Our Estimates include accuracy and certainty and will

always be qualified, estimated early and estimated often. (Important Projects, 2009)

One Major Risk

Fires are one big risk that every business whether big or small needs to be concerned

About. Fires normally required fuel, oxygen and heat in order to burn; however

Electrical fires can be very hazardous as well. Our buildings provide a plentiful supply of

Electrical machinery and with our business being well ventilated this could be a major

Risk at any given time. Of course fires can begin with almost anything that has a heat

Source, such as heat from our equipment, lightening or lightening strikes due to the

Weather. Our Management practices are critical in the prevention and protection of

All of our customers and employees. A list of bullet points show that Small Business

Works has taken action in helping with this risk in our Fire Contingency Plan, if it ever

Becomes a reality in the future. If available use the Business site map which is created

For our Business Fire Plan. (C-BCEFPP, 2007)

Fire Contingency Plan

One thing we have here at Small Business Works is an evacuation plan for our

employees as well as transportation needs to move everyone safely away from the

building. (C-BCEFPP, 2007)

Small Business Works has sought input from our local fire department on access

routes and making our business more fire-safe.

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We’ve obtained insurance coverage for all our business equipment as well as

coverage for our building.

We’ve developed a routine for fire safety inspection for our entire business and

become familiar with all sources of combustion.

We’ve identified all water sources and means of access.

We’ve gotten rid of a few bushes and hedges that surrounded our building that

would only fuel the fire.

We keep all of our equipment that generally heats up very clean and in good

condition.

We keep all of our flammable cleaning supplies away from our equipment and

stored in approved flammable-liquid safety cabinets.

We’ve put a sign up on the outside of the approved flammable-liquid safety cabinets

that says “Dangers Chemical Storage Authorized Persons Only” and are readable

from a distance. (C-BCEFPP, 2007)

In case of fire call 911 or local fire department at ___322-9999________.

Notify Small Business Works Corp. 1-800-777-9999 (or *7777 on cellular phone)

or Emergency Program at 1-800-322-2144 if fire has potential to spread beyond

our building, affects other properties or persons or lead to an electrical hazard.

A fire extinguisher is available in ___Every Entry Way__. Additional fire fighting

equipment (such as __Hot Shield Fire Protection Gear__) is located at __The Locker-

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room___. An emergency water supply is available in___The Kitchen__________. Refer

to the Contingency Plan Information tabulated on pages 2 and 3 of this factsheet and

shown on your farm map (see example Farm Map on page 4).

In Case of Fire:

1. One thing you never want to do is place yourself, employees, family, or customers

at risk. Stay out of burning buildings.

2. If it’s possible we must all work together to Eliminate the source of the fire.

3. We will need to assess the extent of the fire.

4. Notifying the local fire department is a must.

5. And we all must at least Attempt to contain or eliminate the fire in a very safe way.

6. If evacuation takes place we all will meet at a safe meeting place or local

Emergency Service Shelter.

7. Adequate Training and Post fire assessments will be done in order to Review

employee actions that should be taken to contain, minimize, or prevent a fire.

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8. Clean-up site.

(C-BCEFPP, 2007)

(UTSA, 2009) (C-BCEFPP, 2007)

One Minor Risk

One minor risk in this project is the initial planning of this project where scope

creep can become evident; however we do our very best in preventing more requirements

that may come up that are not originally included in the initial planning of this project.

Scope Creep won’t affect the time frame for any projects we do because we won’t’ allow

that to happen in our Organization, but scope creep is a natural and inevitable occurrence.

We, here at Small Business Works want to assure our customers that scope creep doesn’t

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LEGEND

Fire Extinguishers – All Numbered Buildings

Water Source – All Numbered Buildings

First Aid Kit – In all Janitorial Closets

Spill Kit & Protective Clothing – All Main Closets

Main Electrical Shut off – Basement of Every Numbered Building

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have to be a bad thing when change or growth occurs in our projects because our projects

are effectively managed. (Suresh, 2009) In the event that anything were to go wrong

because nothing is error free, not even humans then we would take the creep scope and

present a change control procedure so that changes are only made when the cost is

worthwhile and would then request our customers to review the requirements. (DeMarco

& Lister, 2009)

Conclusion

Small Business Works understands what our customers are looking for by

carrying out the proposed projects that are requested. We provide the best contractors to

solve problems we may run across and provide some excellent value to our customers.

Our work is professional with complete project budgets that are scheduled in a timely

manner in order to provide good quality service to our customers as well. Here at Small

Business works we have capitalized on our successful experiences with previous projects

and worked towards a much higher goal in the change that occurs in technology. We

modify our projects and plans numerous times until it becomes successfully created

because without Modification any plan or project is a bad one.

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References

CBCEFPP, (2007) Contingency Plan Template for On-Farm Planning the Canada-

British Columbia Environmental Farm Plan Program Order No. 390.100-0

retrieved on April 12th, 2009 from:

http://www.agf.gov.bc.ca/resmgmt/EnviroFarmPlanning/390100-

1_Contingency_Plan_Template.pdf

DeMarco, T., & Lister, T., (2009) Project Plan – Risk List Release Information retrieved

On April 12th, 2009 from: http://readyset.tigris.org/nonav/templates/risks.html

Depaul.edu, Chapter 7: Project Cost Management Information Technology Project

Management (4th Ed.) retrieved on April 10th, 2009 from:

http://facweb.cs.depaul.edu/yele/Course/IS372/IS372w6-1. ppt

Forex Trading, (2007) General and Administrative Overhead Trading Word Dictionary

Retrieved on April 10th, 2009 from: http://www.fxwords.com/g/general-and-

administrative-overhead.html

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Gill, B., (1996) Forming a Contingency Plan American Printer written on Feb 1st, 1996,

retrieved on

April 7th, 2009 from:

http://americanprinter.com/mag/printing_forming_contingency_plan/

Important Projects, (2009) Introduction to Estimating Estimates, Assumptions, Duration

And effort Project Management consulting and training for social mission

organizations, retrieved on April 12th, 2009 from:

http://www.importantprojects.co.uk/resources/IntroductionToEstimating.ppt

Magid, D., (2009) Top Six Cost-Cutting Strategies for IT Compliance Sarbanes-Oxley

Compliance Journal retrieved on April 11th, 2009 from:

http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=2501

NCVO, National Council for Voluntary Organizations, (2005-2007) Types of Overhead

Cost Giving Voice and Support to Civil Society, retrieved on April 10th, 2009

from: http://www.ncvo-vol.org.uk/sfp/?id=2207

Suresh, B., (2009) Scope Creep Management Scope Creep is not only Inevitable – It’s

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Natural. Project Perfect Project Management Software retrieved on April 4th,

2009 from: http://www.projectperfect.com.au/info_scope_creep_mgmt.php

UTSA, (2009) Department of Chemistry Finding UTSA in San Antonio retrieved on

April 12th, 2009 from: http://www.utsa.edu/chem/home/campusmap.cfm

Wallace, S., (1999-2007) Estimating Why, What, How? The ePMbook retrieved on April

12th, 2009 from http://www.epmbook.com/estimating.htm

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