A large distribution company is expanding rapidly, with much larger numbers of stock items and customers. The stock system will soon become inadequate and therefore needs to be replaced. The development of the replacement system will be outsourced to a well-known software house as a separate project, and is expected to take nine months.
a) Name and explain TWO financial measures that could be used by the company management
to assess the viability of this project when the business case is drawn up (6 marks)
b) In addition to the two financial indicators that you have described in part a), name and explain THREE other non-financial justifications for the project that could be included in this business case. (9 marks)
c) You are the project manager for the software house and the company management have asked you to prepare a monthly report on progress of the project.
i) List the THREE types of report that you might produce, and explain briefly the differences between them. (6 marks)
ii) Bearing in mind the four key criteria for a successful project, list NINE items of information that you consider should be included in each monthly report to the company management. (7 marks)
Choose THREE of these items and identify the most likely source of the information that you would need. (3 marks)