For the BI software, the IT Manager selected the companion product to the Accounting & HR Software she recommended. All the integration to the accounting databases, as well as a full set of standard reports, was provided “out of the box”. She had negotiated a one-time license cost for this product at $225,000. The funds would have to be committed in the same year as for Project A but the implementation would start one year after the Accounting & HR software had been deployed. The IT Manager predicted that improved decision-making enabled by the software would increase profits by $70,000 the year following implementation, increasing by $6,000 per year thereafter. Support and maintenance costs would amount to $21,500 per year, starting the year following implementation. The IT Manager negotiated to fix (cap) the maintenance and support costs over the ten-year expected life of the software. Perform a Payback Period and Discounted Cash Flow (NPV)analysis and Internal rate for proposed project.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
For the BI software, the IT Manager selected the companion product to the Accounting & HR Software she recommended. All the integration to the accounting databases, as well as a full set of standard reports, was provided “out of the box”. She had negotiated a one-time license cost for this product at $225,000. The funds would have to be committed in the same year as for Project A but the implementation would start one year after the Accounting & HR software had been deployed. The IT Manager predicted that improved decision-making enabled by the software would increase profits by $70,000 the year following implementation, increasing by $6,000 per year thereafter. Support and maintenance costs would amount to $21,500 per year, starting the year following implementation. The IT Manager negotiated to fix (cap) the maintenance and support costs over the ten-year expected life of the software.
- Perform a Payback Period and Discounted Cash Flow (NPV)analysis and Internal rate for proposed project.
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