Course Project Part 1
PROJ592 Project Cost & Schedule Control
Table of Contents
WBS (Work Breakdown Structure)
Capital Cost Estimates
Advanced Cost Estimating Technique
The Consulting Service Company will lean on its relationships that have been built in the project management industry to take full advantage of an opportunity of a lifetime. We are looking to break into an industry that is not accustomed to utilizing project management to manage their office activities. Law firms are a new industry in which the project management professionals are embarking upon. Project Management usage is predominate in the Information Technology industry and is still growing very fast. I think this is an opportunity for Freeman Consulting to work its way into the hearts of the lawyers, one office at a time, showing how project management can provide techniques to improve their day-to-day operations. The company will begin working out of a home. Therefore, cost will not extend past the startup cost of $50,000, of which the company will supply $4,000. Based on preliminary estimates, the company will be expecting revenues of approximately $15,336 and a net income of $1,278 per month. Assuming the net income holds true the payback on the $46,000 of capital required is five years. The Net Present Value of the project is approximately $23,000 assuming a 10% discount rate for 5 years. Given that it is able to raise the required capital, the project would immediately begin the process of performing market research to truly understand the law firm sector and what areas and law focus should be the focus. All indications show that this project is poised for success. In order to capitalize on this opportunity, the startup capital of $46,000 is needed at this present time. I am confident that this is the time to be a front-runner with establishing relationships with the law community and providing the best project management services around. Not only will you be investing in this company, but also you will be a valued partner as we grow this company and expand our services in the years to come.
This project will focus on creating a new business in the Project Management Consulting industry in the Chicago land area. The name of the business will be “Consulting Services” and its primary focus will be to provide project management services. After conducting some preliminary research, it has determined that there is a strong demand for project management consultants to assist law firms planning their day-to-day operations. At this point, there is very little competition as this is a new direction for law firms. For a long time, law firms have billed by the hour, but the practice often masked inefficiencies and prevented transparency in the way attorneys worked. Now, recession injured clients are increasingly demanding changes that will promote greater accountability. This demand is pushing law firms to turn to project management practices. Lawyers want to use project management to find alternative ways to give more value for less money, because clients are demanding more quality for less money. Alternative fee arrangements are fueling the rise in project management practices. A firm may handle a single case or portion of it for a negotiated amount. Project management fundaments can be utilized for its scheduling and scope management techniques. Using fixed fee scenarios, it can be easy to lose money. Project management can help lawyers be more efficient with their time, streamline the budget, understanding how resources are being utilized and getting a better feel for how long each task would take. In the culture of law firms, there is always a strong resistance to change. Therefore, it would be a very difficult but...
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