When we are projecting a budget for an information technology project, we must examine many different areas.

When we are projecting a budget for an information technology project, we must examine many different areas. This can be very time consuming, but it doesn’t have to be if you know some of the variables ahead of time. Let’s look at this example:

First, we must understand the problem. For the purposes of this example, let’s assume we have a large distribution warehouse. Currently there are 3 shifts of 20 employees and the warehouse operates 5 days a week for 50 weeks (the warehouse is closed for 10 established holidays). Each employee pushes a cart and picks up items to be bundled and shipped out. The employees must pick up dozens of different parts to complete an order. They first should walk to the “pick desk” to get a print out of the items to be bundled. Each time the employee goes to get the next list, this is called a “route” This involves 6 minutes walking time to and from to get to the pick desk located at one end of the warehouse for each route. Let’s assume that each employee makes $10.00 per hour. The current expectation is 8 routes per shift.

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The information technology department has consulted with the warehouse manager and has determined there is a more efficient way of doing things, but there will be some costs incurred initially, but the long-term reward will pay for itself very quickly. Let’s look at how this breaks down:

• Provide the employees with ruggedized tablets to eliminate the pick ticket on each route (Eliminate the pick desk)
• Install 5 wireless access points
• Installation labor
• Training labor (training facilitator and non-route time to train the warehouse workers)
• Spares
• Ongoing support

By doing this project and eliminating the non-productive walk time just to get a pick ticket, we gain an additional 60 minutes of route time per shift. Let’s look at the economics of this productivity gain:

• 3 shifts x 20 employees = 60 employees
• 1 hour productivity gain per shift per employee ($10 per hour x 60 = $600)
• $600 x 50 weeks = $30,000 in gained productivity

The trainer will cost $20 per hour and the training will take 1 hour per shift for a one-time training session. There will be training materials that will take 2 hours to produce and will cost $5 per quick guide per employee. The cost of cabling alone will be $2000 for labor and materials. Cisco Aironet access points that need a range of 200 feet will need to be purchased and installed. Installation and calibration of access points are two hours of support analyst time per unit. The environment calls for 7″ ruggedized tablets. Tablets will have to be available for everyone working a shift plus a reserve of an additional 10 tablets to replace damaged or defective tablets. Assume that there will be 5 support tickets after the initial installation for ongoing support per month and budget for the year. Support analysts bill at $75 per hour. Support issues take 1-2 hours to resolve.

Research and find a requirements document from a large well-known company. Write a two-page project needs analysis to be presented to management.

1. The 2 page paper will be written in 12 pt. Times Roman, double-spaced for the paragraphs and single spaced line item charges and total cost.
2. Include a third page for your references formatted in APA style.
3. In your own words, summarize the problem and what is to be done in one paragraph.
4. Create a line item and cost for all costs involved in the total installation and support for one year. There should be at least 10 line items for this budget.
5. Total all the costs that will go into solving the problem.
6. Using at least 3 credible sources, research product costs and determine the best device (look for value, but compare features and reviews!).
7. Determine if the project will pay for itself within one year, based on labor savings.
8. Summarize if the project is worth doing or not. State your reasons in a clear concise manner, limited to one paragraph.