How to develop a Project Scope Statement

How to develop a Project Scope Statement

 

Introduction
The purpose of this report is to help the students to study how to develop a Project Scope Statement, a
Work Breakdown Structure and a Project Network, to estimate the project time and cost and to analyze
the risks for a given Project.

Completion Date
The completion date for the assignment is 10 March 2016

Late Submission
A penalty of 5% deduction per day will apply for late submission of the assignment (Assignments
submitted 5 or more days after the specified completion date will receive 0 %).uidelines to the
preparation of your report
Report Content
Your report must contain the following:
 Cover Page with titles, graphics, …etc
 Table of Contents Page
 Introduction (briefly explain the scope of your project)
 Body of the report
 Conclusions to the Project. This could include what you have learned from
exploring information regarding the application of the methods of Project
Management.

 

Solution

Introduction

The project is in relation “streamlined purchase of airline tickets”. The project seeks to
find ways to streamline buying of airline tickets. Travelling from place to place is a day-to-day
need for everyone, planes are the fastest means of transport and hence preferred over others.
Getting a ticket at convenient cost and at the exact time you need it is hard, especially on
holidays. Airlines put all schedules and available seats online, customers choose the number of
seats they want and on which type of flight. The process operates like a supermarket; customers
choose their preferred item themselves. The system encourages customers to fly more often by
offering gift cards, reach a certain number of flights in a given period and you earn redeemable
points to fly free of charge. The project began two years ago, one airline has already purchased
the algorithm for the new system of purchasing airline tickets. The project targets airline network
operators as it main clients. The project has faced several challenges including high cost,
uneasiness of airlines to accept different systems for operation and fears of loss of profit. The
project has gotten the support of major airline businesses in the world, governmental departments
and business met in the UAE, who are the biggest percentage of shareholders. The project
outlines this strategy in several parts, the scope management plan, and break down structure, risk
management, cost management, time management, human resource management,
communication management, and quality management. This report is written to meet the
requirements of EGN 3103Project Management at Sharjah Higher Colleges, (Wang, Gal-
Or, & Chatterjee,  2009).

PROJECT MANAGEMENT 4

Objectives

The project aims to make the process of buying an airline ticket faster, cheaper and
convenient to each person’s tastes. It is well suited for people who fly frequently like business
people. It gives the airline a chance to increase customer flow but still make profits. The project
shows how this method is beneficial in cost, time, among other areas. The project uses a software
program to change customer experience in flying by making it more customer oriented in its
services.

Scope Management Plan

Finding an airline ticket that you desire is difficult, especially if you travel regularly. It is
either a problem of finding the right price or getting a plane that will take you where you need to
go at the right time. Travelers often find themselves stuck when prices increase or spaces are full.
Holiday season remain a hectic time to travel with airports receiving a swarm of people who
want to buy tickets at the same time. A more organized approach may go a long way to help
reduce this chaos and make air travelling smoother and more convenient. Airlines sell 80% of
their tickets online; the rest is mostly done in the airport. The worst possible scenarios appear
when a customer needs to connect two flights, one is often cheap while the other more
expensive. What happens when a customer changes his flight plans? The airline, on certain
occasions refund the ticket if you call before the elapse of a specified time period, however,
delay too long are your refund cannot be accepted. The project puts all these problems into
consideration and attempts to solve them by using software that allows the internet to sell 95% of
all tickets. The airline’s website is segmented into different sections to make the flight time,
duration and cost flexible and transparent, (Lewis, P. H. (1992).

PROJECT MANAGEMENT 5
Customers will make reservations for their tickets months or days in advance, however
the system will be flexible enough to allow the customer to make a sale of his tickets if he no
longer wishes to use it. The project will have two phases, phase one to establish and start use of
the system and phase two that will deal with adjusting the system to possible problems that might
develop further on. The time duration is five years from the date of commencement, (Frei, F. X.,
2006).

Work Breakdown Structure

The project was designed in partnership with boards of major airlines, government
specialist, tech experts and airline customers. Airlines will have to have top-notch servers to be
able to handle to large web activity and demands. To change customer experiences, the website
will have holiday packages for customers who use the airline frequently and have attained a
certain number of bonus marks and mileage points, the customer can get a free holiday by
redeeming these points. The program includes packaging the website details in a mobile app to
make it more accessible to customers. The breakdown structure shows a detailed progress of the
implementation of the project in both phases (Allenchey, 2007).

PROJECT MANAGEMENT 6

Project Network

Time Management

The project involves a sophisticated and effective algorithm to process the data in
microsecond to allow fast information distribution. The algorithm is already complete together
with testing its effectiveness. The results are promising. The software needed was installed in a
Formulating
algorithm Installing the
software

Making the
websites

Making mobile
applications

Training airline
staff on how to
manage
websites

Further system
testing to
check on
customer
adaptation

Project
launching

PROJECT MANAGEMENT 7
local airline network system for use for a period of two years. The two years form part of phase
one testing, two other airlines are currently using a demo version of the same software to market
and book tickets. Installation of the software took 12 days in all ten branches of the airline. The
program took several hours to collect all relevant data from the system of the airline. The new
website was created and was ready for use immediately.

Cost Management

The total budget for the project was split into phase one and phase two of the project.

Cost Management Table
Phase One

Activities Details Cost
Design and purchase of
algorithm

The algorithm for the project
was made and purchased from
Dubai Web Designers
Company.

1 million dirhams

Probation cost In the project, we paid 12
million dirhams to Emirati
Airlines as cost to install
changes to their software
systems and back-up security
in all their branches.

12 million dirhams

Installation cost Costs incurred in installing the
software in all branches of the

2 million dirhams

PROJECT MANAGEMENT 8

airline.
Phase Two
Maintenance Cost to maintain the software

and website.

5 million dirhams

Total cost 20 million dirhams

Quality Management

To make certain that the elements of the project work efficiently and effectively to serve
both the airline needs and the customer, the components of the project have to be pre approved
and tested to ensure quality service.

Software

This is the major part of the project, as its implementation will rely largely on
technology. The software for use was tested to give 97% compatibility to the airline demands. It
performs efficiently with the work needs of the airline world giving accurate data for time
schedules, pricing and other specifications. The software is designed to be used by an airline that
operates about 20 to 30 branches; information can be shared through these branches with the use
of internet services all over the world. The estimated lifetime of the software is 20 years,
adjustments and upgrades can be installed during this lifetime to increase its effectiveness and
reusability. Dubai Web Designers Company provides maintenance on the software and is sub-
contracted for a 10-year period on retainer.

Human Resource

PROJECT MANAGEMENT 9
The airline employees are trained to enable them operate the software. They feed data on
the airline’s pricing, schedules and other details. Technical teams are trained on how to create the
mobile apps for the airline and how to deal with customer complaints. The website is designed to
give customers guidance in reservation and booking. It is simple for customers to use.

Budget

The budget for this project is enough, the maintenance cost covers a period of three to
five years. Additional airlines that buy the software cover the cost of installation and probation

costs are eliminated.

Human Resource Management
Organizational Chart

Group Skills
Position Responsibility
Board of directors Hiring the managing director.

Making and evaluating the strategy of the
project.
Supervise the managing director.

PROJECT MANAGEMENT 10
Managing director Direct and control the operation of the project.
Give regular information to the board of
directors on the progress of the project.
Program manager In charge of managing the general operations
of the project to achieve the objectives.
Marketing manager In charge of advertising the project to airlines.
Operation director In charge of day-to-day operations of the

project.

Finance director Oversees the budget and distribution of the

funds in the project.

IT director In charge of managing the IT system.

Responsibility Matrix

Key
R Responsible
S Support

Peter Shakur Albert Iqra Alphonse Michael Julia Cole Moses

Board of
Directors

R R R S S

Overall
project
oversight

S R

Project
managing

S R S

Financial
business

S S S R
Budgeting S R S
Daily
operations
of the
project

S S R S

PROJECT MANAGEMENT 11
Handling
marketing
strategies

R S

Risk
managing

R S S R

Manage
the IT
system

S R

Patrick Ann Esther Eliza Rashid Masjid Mohammed Muhamud Fatuma

Maintenance
work

S S R R

Customer
Support

S S S R S S

Website
Maintenance

R S S S R

Help R R R S S

Communication Management

The team members in the project meet regularly to plan progress and review the progress
of the project.
Team Time Work
Board of directors Thrice a month To assess the progress of the project.
See if goals have been met.
Deal with problems encountered in the
implementation of the project.

Managers Once a week Assess the progress of goals in the departments.
Give a review of the progress to the board and
managing director.

Each manager with his
team

Once a week Discuss team building method.

Discuss the progress and arising problems in the
work.

PROJECT MANAGEMENT 12

Share ideas.

Risk Management

Analysis of the project and its execution shows that it may face a number of threats. The
project largely depends on how customers respond to the easy access and flexible website. Their
ability to choose their desired preference in travel experience will depend on the flexibility of the
airline to afford them opportunity to do so. The software used assesses the customer’s
preferences and gives them the most suitable package. The greatest risk in the project comes
from the high initial cost in getting the design to apply in booking. We give airlines a two-year
gap to assess the effect of the new system on their customer base, while making payments in
installment. Other issues include customer response to the varied choices. In as much as the
customer gets a wide array of choices, some may be skeptical in areas like purchasing a
previously bought ticket. Therefore, the airline can assure the customer by placing surety notes
on the website as to the validity of the tickets, (Jutte, B., 2016).
Conclusion

The process of streamlining purchase of airline tickets is a complex one. It involves
varied systems that demand that all participants and shareholders work in cooperation. The
airline needs to closely monitor the initial stages to encourage customers to use online booking
more than buying tickets at the airport. The system works well in both low seasons and high
seasons, reducing confusion and allowing customers to have access to stable and cheap prices.
The project estimates a worldwide approach to this system in the next ten to twenty years.
Aligning the air travel business towards customer orientation is one of the main foundations of
the system. The project give customers a wide choice to fit their pockets and taste, while

PROJECT MANAGEMENT 13
enabling them to remotely buy tickets on their phones and plans their travels at their convenient
time periods.

References

Frei, F. X. (2006). Breaking the Trade-Off Between Efficiency and Service. Retrieved from
https://hbr.org/2006/11/breaking-the-trade-off-between-efficiency-and-service

Jutte, B. (2016). 10 Golden Rules of Project Risk Management. Retrieved from
https://www.projectsmart.co.uk/10-golden-rules-of-project-risk-management.php

Lewis, P. H. (1992). Booking With a Computer – NYTimes.com. Retrieved from
http://www.nytimes.com/1992/01/12/travel/booking-with-a-
computer.html?pagewanted=all

Allenchey, M. (2007). Bodacious Breakdown Strategy for your Work Breakdown Structure.
Retrieved from http://blog.pdus2go.com/special-edition/bodacious-breakdown-strategy-
for-your-work-breakdown-structure/

Wang, T., Gal-Or, E., & Chatterjee, R. (2009). THE‘ NAME YOUR OWN PRICE ’CHANNEL
IN THE TRAVEL INDUSTRY :AN ANALYTICAL EXPLORATION. Retrieved from

 

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