Read the case Poor Baseline Project Plans Lead to Federal Waste of IT at the picture above. Write a one page total (at least 400 words) response to the questions at the end of the case.

Specific Requirements:

1-Explain how the baseline project plan can use the work breakdown structure to contribute

to budget planning.

2-Select a project estimation method, such as the Delphi technique, time boxing, top-down

estimation, or bottom-up estimation and explain how it works.

3-Apply your selected estimation method to one of the structural foundations mentioned by

Larry Reagan.

4-Identify a possible problem that could occur during project execution and its effect on

budget administration.

5-Draw from the WBS-budget relationship, your selected estimation method and its

relationship to the structural foundation, and the possible problem you identified to answer the questions in the book.

58 percent believe they do not have the necessary Poor Baseline Plans Lead to Federal Waste of IT historical data to produce realistic estimates According to a survey of 104 U.S. government IT execu 54 percent believe that they have inadequate tools to manage the cost estimating, control, and tives, an estimated $12 billion was wasted on IT projects reporting processes for IT programs in 2007. The study, called A Cracked Foundation, was conducted by Price Systems, a provider of program The respondents contend that the main reasons why affordability management solutions projects are over budget include poor project manage The study suggests that 46 percent of the failed (can ment, scope creep, lack of proper baselines, and late d, over-budget) projects could have been avoided if understanding of risk. Moreover, the IT executives sur project baseline plans were more realistic, thus saving an veyed reported that the most important tool for ensuring that IT projects are on budget is a fully coordinated base estimated $5.5 billion annually. According to Larry Rea- line followed by training, project management tools, and gan, a vice president at Price Systems, "Agencies require defined risk management stronger foundations upon which to base government IT Similarly, the IT executives identified schedule man program structures in order to avoid the continued rate of agement, cost management, and risk management as collapse. Better baselines can help fill in these structural being the most challenging baseline elements for thei cracks arming agency personnel with the tools, train organizations. The study also reports why project man ing, and historical data necessary to build projects on agers fail to establish effective baselines. More specif solid rock." The study found that only 18 percent of the ically, 64 percent attributed this to a lack of personnel government IT executives expressed confidence in their o perform the functions effectively, 47 percent stated IT budgets, with about 69 percent reporting that they a lack of training, 47 percent stated that timelines were usually begin to notice problems about halfway through too short, and 34 percent claimed that projects teams were not given appropriate tools and data for establishing their projects accurate baseline plans up front. In addition, the study also reports Reagan claims, "In these days of heightened federal 78 percent believe they have inadequate cost est fiscal accountability, our government is not in a posi mating training tion to waste billions of dollars that could be redirected toward any number of programs. Supported by stronger 77 percent believe they have inadequate risk structural foundations ncluding assigning responsibil identification and management training ity for program affordability management: integrating 73 percent believe they have inadequate initial cost estimating, project control, and knowledge manage- baseline development tra ng ment into a single team; providing effective training and 67 percent believe they have inadequate project certification; implementing a methodology for regularly scheduled, independent baseline reviews; and establish- management training ing the consistent use of a reusable knowledge-based 60 percent believe they do not have the nec framework-better baselines can empower agencies essary methodologies to collect historical data to achieve project and program objectives, effectively o produce realistic estimates when a baseline enabling them to better deliver upon their missions. changes 1. Do you agree that improving IT project baseline plans will help avoid failed projects? 2. Consider Larry Reagan's statement in the last paragraph. Do you agree with his assess ent? Is there anything you would add that could be done to improve project success, not only for the federal government but also for any type of organization