Background

Round Island Transport (RIT) is a company in Singapore that provides a full range of public transportation services. It operates a Mass Rapid Transport (MRT) line, a public bus service and a taxi service.

Development in new technologies helps to make transportation safer and more efficient. Equipped with cameras, wireless sensors and short-range radars, a vehicle without driver can automatically adjust its speed to the surrounding traffic, maintain a safe distance from the vehicle in front, keep within its own lane and park by itself. The usage of advanced microprocessors, wireless communication between devices in the vehicle and surrounding earth stations, controlled by complicated software, reduces accidents and provides passengers with more reliable rides than ordinary vehicles driven by humans.

RIT's management envisages an Autonomous Bus System will serve passengers well. It has obtained permission from the Land Transport Authority (LTA) to conduct a pilot Autonomous Bus System (ABS) Project in the International Business Park (IBP) in Singapore. It has approached Enterprise Singapore, the Statuary Board in charge of developing the local companies' capabilities, for funding under the Enterprise Development Grant scheme.

RIT will work with the following new partners:

1. Schlau Bus Ag (SBA), a bus manufacturer from Germany, to develop a bus for the system.
2. Unified Technologies Devices (UTD), a telecommunication equipment manufacturer from USA, to design and supply sensors in vehicle and radio earth stations.

RIT's newly formed IT team will develop the application software, integrate the SBA's bus and UTD's wireless communication into a completed Autonomous Bus System.

Assume that you are the Business Development Manager of RIT. Your CEO, Mr. James Tan, has appointed you to be the Project Manager for the ABS Project.

The following are project members from RIT and its partners:

1. Yourself: The Project Manager from RIT. You are in charge of leading the project, administration and liaison with all partners and agencies on commercial matters.
2. Ms. Farah: A System Developer from RIT. Her role is to develop the application software to control the autonomous bus, and coordinate with all partners on technical design issues.
3. Mr. Kumar: A Mechanical Engineer from RIT. His role is to work with the partners on the bus design and installation so that he will be able to maintain the system after the implementation.
4. Mr. Genz: A Vehicle Specialist from SBA. He will customise a bus engine and chassis for the project.
5. Ms. Nancy: A Telecommunication Engineer from UTD. Her role is to design the wireless communication system between the devices in bus and earth stations.

Ms. Nancy and Mr. Genz will participate and support the project remotely from their countries during the initial planning and design phases. They will join the team in Singapore from the installation phase onwards.

RIT needs to provide a project costing to Enterprise Singapore in the application for funding. Appraise any five (5) relevant conditions in deciding whether to use the Top-down or Bottom-up

Answer should be in the following format:

For _________ (state the condition): *Top-down/Bottom-up (choose one) Estimates approach is preferred because __________________(explain the rationale). This *is/is not the case for ABS Project because _____________________(provide justification). Hence, RIT shall adopt the *Top-down/Bottom-up Estimates approach under this condition.

Conditions for Preferring Top-down or Bottom-up Time and Cost Estimates
Condition	Top-Down Estimates	Bottom-Up Estimates
Strategic Decision Making	X
Cost & Time Important		X
High Uncertainty	X
Internal, Small Project	X
Fixed-Price Contract		X
Consumer wants details		X
Unstable scope	X