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MYH recreation and wellness project

By:
Rebecca WhitworthOmid Jamshidi
Joshua Ricketts Manreet Singh
 Memo
To: Harry Conan, President
Jonathan Thomas, CFO
Nancy Tangle, CIO
 From: Tony Prince, Project Manager
 CC: Jane Wright, Directors, IT Development
Tom Dancy, Director, Health and Wellness
Sue Vigli, Director, Human Resources
 Date: 07/30/2014
_______________________________________________________________________________

Manage Your Health, Inc (MYH) provides a variety of healthcare services across the globe. Recently
the company adjusted its business strategic goals to address the following goals listed below.
•
Reducing internal cost,
•
Increase cross – selling of products,
•
Exploiting new web- based technologies to help employees and customers and suppliers to help
improve the development and delivery of healthcare products and services.
These projects are an update strategic plan our Information Technology Department has come up
with to address new business needs and goals.
Recreation and Wellness Intranet Project
▪ Project purpose ▪ Strategy support
▪ This plan will allow MYH employees to join ▪ Goal of reducing internal cost/ reduce
company sponsored recreational events and premium paid annually per employee
programs. The programs will include softball,
bowling, soccer, and jogging. Also employee can
participate in classes to address stress, smoking
cessation, weight management. Application will
allow MYH to track and monitor information on
employee’s participation in health programs to
offer engagement incentives.

Expenses/Benefits
▪ . MYH pays 20% more than average employee healthcare premiums due to poor health of its employees. This
application will help improve MHY employee’s health within one year. Then you can negotiate lower health
insurance premiums. This will save at least $30 a year for each full time MYH employee over next four years.
MYH has more than 20,000 full-time employees this could reduce internal cost in the next four years.

▪ Estimate cost $200,000. Project manager will be overseeing project for estimate six month completions. Project
manager will make $100 per hour for a total of 500 hours for length of project. Developers cost $60 per hour
estimate hours for project 2500 totaling $150,000.
 Health Coverage Costs Business Model
▪ Project purpose ▪ Strategy support

▪ An application to track employee healthcare ▪ Data will help negotiate lower

expenses and company healthcare cost. premiums with insurance companies
Healthcare premiums continue to increase
yearly. This business model will track and reducing internal costs
analyses current and past employee healthcare
expenses and company healthcare cost. This new
application will be able to track employee
submitted expenses along with company cost to
insurance provider.

Expenses/Benefits
▪ This will cost around 100,000 to develop but can save the company about $20 a year for each full time employee
reducing the premium paid annually. The estimated payback period occurs during year one
 Cross-selling System
▪ Project Purpose ▪ Strategy Support

▪ This application will improve cross-selling to ▪ increase cross-selling to customers

current customers. The current sales
management system has sections for major
products and services. We see a great
opportunities to increase sales to current
customers by providing discounts when they
purchase multiple products and services. This
can be utilized to obtain needed information for
discount calculations.

Expenses/Benefits
▪ This system will cost roughly around $800,000 for software development and maintenance. Estimated payback
period occurs during year one. The profit for this application will increase by $1 million each year for next three
years.
 Web-enhanced Communications System
▪ Project Purpose ▪ Strategy Support

▪ This project is a web-based application to ▪ This web application will help employees,
improve development and delivery of products customers, and suppliers work together to
and service to our current and future customers. improve development and delivery of
Currently MYH has several incompatible systems healthcare products and service at MYC..
related to development and delivery of products
and services to customers. This system would
allow customers and suppliers to provide
suggestions, enter orders, view status history of
orders, and use electronic commerce to
purchase and sell their products.
Expenses/Benefits
▪ We have estimated this application will save company around $2 million each year after implementation. Web
system would take around one year and $3 million to develop. Then will require 20% of development cost each
year to maintain.
 Making Decisions – Weighted Scoring

Criteria: Project 1 Project 2 Project 3 Project 4

▪ Meets business objectives

▪ Meets minimum ROI of 10%
▪ Has low risk the organization Criteria Weight
Recreation and Wellness
Intranet Project
Health Coverage Costs
Business Model Cross-Selling System
Web-Enhanced
Communications System

Meets Business Objectives 30% 8% 4.50% 6% 4.50%

▪ Project implementation within Meets Minimum ROI of 10% 25% 5% 25% 0% 3.70%

3 years Has low risk to the organization 20% 20% 4% 2% 2%

Project Implementation within 3 Years 25% 25% 5% 8% 25%

Weighted Project Scores 100% 58% 38.50% 16% 35.20%

 Voice of Customer – collecting Requirements
Internal & External User(s) to be Requirement No. Name Category Source Status

interview: R1 Easy logon to track

activities
End User Face to face
interviews
Validating with further VOC

▪ Sample size of 10 associates per R2 View acquired points

against goals
End User Face to face
interviews
Validating with further VOC

department within
R3 Sign up for programs End user e-mail survey Validating with further VOC
via site

the organization R4 Generate reports for HR Telephone interviews Validating with further VOC
wellness site
engagement
▪ Human Resource Managers
R5 Generate surveys to Benefits & Focus Group Validating with further VOC
distribute to end Compensation

▪ Benefits and Compensation Managers users for wellness

coaching

▪ Be Better Health (future - outside R6 Intranet application

easily maintained
Vendor Telephone interview Validating with further VOC

vendor) outside company

firewall

Voice of Customer Gathering Tools:

▪ On-site Focus Group
 Roles & Responsibilities

Application S upport M anager

RACI Matrix Recreation and Wellness Intranet Project Resource Responsibility

Consulting Representative
Configuration M anager
P - Primary Responsibility
Proje ct Exte r nal

Operations M anager
Proje ct Te am M e m be r s A - Approval Authority
Le ade rs hip Contributors

S oftware E ngineer

S ystem E ngineer
S - Supporting Responsibility

P roject M anager

Q uality M anager
P roject S ponsor
Software Engineer
Nancy - Business
Patrick - Network
(Contributor or Review er)

Consulting Firm
Testing Manager
Project Manager

Risk M anager

Test M anager
Role

Tony Prince
I - Information Only

End Users
Technician
Specialist

Analysist
Sponsor

Outside

Technician

E nd Users
Project Deliverable (Select from drop down list)
(or Activity)

1.0 Main System Module - Registration

Main System Module Registration
1.1 Test Plan I A P S
Test Plan R C
1.2 Unit Testing I A P S
Unit Testing I A C
1.3 Integration Testing I A P S
Integration Testing I A C
Main System Module Tracking 2.0 Main System Module - Tracking
Test Plan R C 2.1 Test Plan I A P S
Unit Testing I A C 2.2 Unit Testing I A P S
Integration Testing I A C 2.3 Integration Testing I A P S
Main System Module Incentives 3.0 Main System Module - Incentives
Test Plan R C 3.1 Test Plan I A P S
Unit Testing I A C 3.2 Unit Testing I A P
Integration Testing I A C 3.3 Integration Testing I A P
System Testing
4.0 System Testing
Test Plan R C
4.1 Test Plan I I A S P S
Unit Testing I I A C C
User Acceptance Testing 4.2 Unit Testing I I A S P
Test Plan R 5.0 User Acceptance Testing
System Testing I I I I C A 5.1 Test Plan I I A S P S
5.2 System Testing I I A S S S P
Effective Communication
Business Case for recreation and wellness intranet project

▪ Introduction/ Background

▪ Objective/Current Situation /Assumption

▪ Recommendation/Requirements

▪ Financial Estimate

▪ Time Estimates and Risks

Business Case for recreation and wellness intranet project

▪ Introduction/ Background

e r v ices
t h care S
Hea l

Manage Your Health Inc.

20,000 Full time

5,000 Part time
▪ Business Objective

By helping employees improve their health will result in MYH, Inc. negotiating lower
premiums.

To update and improve the development and delivery of healthcare products

MYH goals include:
▪ reducing internal costs
▪ increasing cross-selling of products
▪ exploiting new Web-based technologies
Supporting idea:
§
Developed recreation and wellness intranet project
§
Employees can register for:
•
Soccer
•
Softball
•
Bowling
•
Jogging
•
Walking
§
Register for company-sponsored classes :
•
Manage their weight
•
Reduce stress
•
Stop smoking, and manage other health related issues.
§
Tracking data on employee involvement
§
Offering incentives for people to join the programs and do well in them
▪ Current Intranet System Pay
Due to poor health condition > Industry average + 20%

•
Assumption and Constraints
Current Intranet completed 6 months

Assume that Cost $200,000

Employees Participation
Professional health coaches
Through out the design

Sample employees
 ▪ Recommendation and Requirement

Do nothing and hope

Pay higher rates

Recommendation
Purchase software (out source the work)

Use current system and design a program

Int/Ext user Interview

Gathering requirements/ voice of customer Gathering tools
Closing deals with the trainers and coming up with the class schedules
Begin the website development
Completion of website with downloadable software access
Requirement
App development
Training the employees and getting feedback
Testing and making any required changes

Registration for classes starts

 Budget Estimate and Financial Analysis
Preliminary Estimates
•
Entire project $200,000
•
Project benefit $600,000
•
NPV 1.8 million
•
ROI 9.8%
  Project Year 0 Year 1 Year 2 Year 3 TOTAL  
               
  Costs $200,000 $0 $0 $0    
  Discount Factor 0.93 0.87 0.81 0.76    
  Discounted Costs $186,000 $0 $0 $0 $186,000  
               
  Benefits $600,000 $600,000 $600,000 $600,000    
  Discount Factor 0.93 0.87 0.81 0.76    
  Discounted Benefits $558,000 $522,000 $486,000 $456,000 $2,022,000  
               
  Discounted benefits - costs= $372,000 $522,000 $486,000 $456,000 $1,836,000 NPV
  Cumulative benefits - costs= $279,000 $383,400 $480,600 $571,800    
               
ROI 9.87%            
 Time Estimates and Risks
Time estimate
▪ 6 months for the project to complete(some flexibility)

▪ 4 years of useful life

Risks
▪ Lack of Interest from users

▪ Investing time and money but not using system as plan

▪ Potential outside venter cost

▪ IT platform must be evaluated to enable the support of the additional 15,000 associates
 Project charter

▪ Date of Authorization: 12/01/2014

▪ Start Date: 01/15/2015

▪ Goal:
To improve the employee health, thus enabling the company to negotiate
lower employee insurance costs. 

▪ Budget and time:

§
Objectives:
The objective of the project is to create an application on the current intranet to help the
employees improve their health. The application would enable employees to register for
company sponsored recreational programs such as soccer, softball, bowling, jogging and
walking. The data of employee involvement would be tracked and incentives would be
given to the employees accordingly.
 
§
Success Criteria:
The software must meet all the specifications and should fulfill the needs within the
allocated budget.
Project Milestones:

•
01/15/2015 – 02/15/2015: Gathering requirements/ voice of customer.
•
02/16/2015 - 03/16/2015: Closing deals with the trainers and coming up with the
class schedules.
•
03/17/2015: Begin the website development.
•
04/17/2015: Completion of website with download software access.
•
04/18/2015 – 04/28/2015 : App development
•
04/29/2015 – 05/29/2015: Training the employees and getting feedback.
•
05/30/2015 – 06/15/2015: Testing and making any required changes.
•
06/16/2015: Registration for classes starts.
 Change Request
▪ Description of Change: ▪ Impact:
▪ Unforeseen company acquisition ▪ Requirements validation for Canadian
▪ Additional 15,000 associates associates

▪ Additional VOC required ▪ Schedule no impact based on efficiencies

built into the schedule
▪ Evaluate future vendor to manage
application ▪ Additional $2,000.00 (USD) required for
VOC (accounted for in contingency funds)
Justification for change:
▪ Risk:
▪ Original scope did not include outside
vendor management of application ▪ Potential outside vendor cost

▪ Accurate tracking of engagement is critical ▪ IT platform must be evaluated to enable the

for rewards and engagement support of the additional 15,000 associates.

▪ Canadian VOC is now required

 Project Scope Statement

Project Characteristics:

▪ The administrators will add the classes and all the activity schedule for the month

▪ The employees can sign up for the activity online.

▪ The activity attendance would then be accessed and employee involvement data would
be generated.

▪ Based on their involvement, various incentives would be entered in the system for
employees.
Project Deliverables:
§
Business case
§
Project Charter
§
Scope Statement
§
Work Breakdown Structure
§
Gantt Charts
§
Change requests and Project Status Reports.
§
Application with administrator and user access.
§
Reporting system for admin to check the attendance and progress of the employees.
§
Troubleshooting training to the administrators.
Success Criteria:
§
The project shall be completed in 6 months and should cost $200,000.
§
The idea is to improve employee health thus putting MYH in a position to negotiate
better health insurance rates.
§
The project will help MYH save at least $30/employee/year, thus accounting to a total
cost reduction of $600,000.
 Cost baseline
WBS Items Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Total
1. Project Management
$5,000 $4,000 $4,000 $4,000 $4,000 $4,000 $25,000
2. Requirements definition
$5,000 $5,000 $5,000       $15,000
3. Web site design
             

3.1 Registration for recreational programs $1,500 $1,500         $3,000

3.2 Registration for classes and programs
$1,500 $1,500         $3,000
3.3 Tracking system
$1,000 $1,000 $1,000       $3,000
3.4 Incentive system
  $1,000 $1,000 $1,000     $3,000
4.Web site development
             
4.1 Registration for recreational programs
$500 $500 $1,000 $1,000 $1,000 $500 $4,500
4.2 Registration for classes and programs
$500 $500 $1,000 $1,000 $1,000 $500 $4,500
4.3 Tracking system
    $500 $500 $1,000 $1,000 $3,000
4.4 Incentive system
    $500 $500 $1,000 $1,000 $3,000
5. Testing
  $500 $500 $200 $3,000 $3,000 $7,200
6. Training, roll out, and support
  $5,000 $5,000 $10,000 $10,000 $50,000 $80,000
Total project cost estimate
MYH Gant Chart
 Three Months Analysis

Budget At Completion (BAC) = $200,000

PV = $120,000 EV = $100,000 AC= $90,000
Cost Variance = $10,000 EV-AC
Schedule Variance = -$20,000 EV-PV
Cost Performance Index (CPI) = 111% EV/AC
Schedule Performance Index (SPI) = 83.3% Ev/Pv
 Three Months Analysis

When the SPI is below 100% the project is behind schedule. The planned value after 3
month is expected to be at $120,000 but the earn value was only $100,000.
The project is currently under budget. The result in a CPI of 111% higher than 100% when
cost variance is positive meaning project is under cost. The actually cost was only $90,000
but the earned value was greater at $100,000.
Estimate at completion
BAC/CPI = 200,000/111%
= $180,180
If the pattern continues for the last three months the project will be completed under cost.
The project is executing well since EAC is less than the budget at $200,000 at completion.
 
Length of finish project = original time/SPI = 6/83.3%
= 7.2 months
Earned Value Chart
Thank You

Questions?