Term Project Requirements
The Term Project Report and Presentation will due Week 14, 4/29/2021 (for 10 Bonus Points)
and Week 15, 5/3/2021 (No bonus points). Full bonus points will only be given if both the
entire report and presentation is submitted on Week 14, 4/29/2021 before the group give their
presentation. No bonus points for reports and presentation submitted after Week 14,
4/29/2021. Any reports submitted after Week 15, 5/3/2021 will be considered late and will not
be accepted. All presentations must be completed by Week 15, 5/3/2021 which will be the final
class. All reports must submit the report via Canvas before their respected presentation. Any
components submitted after their respected presentation will not be accepted.
The term project consists of developing a plan and a schedule for a real project. You do not
have to perform the project for this course; rather, you have to develop a detailed plan and
schedule for it. You may develop a plan and schedule for a project that you are currently
working on, one recently completed, or one that you will be undertaking in the near future. The
project may be related to your academic program, work experience, or personal. Your proposed
project will include an economic feasibility study which shall be framed to pitch to any investor
such as a private equity group or venture capital institution (similar to “Shark Tank). Size of the
overall project must exceed a $5 million USD with an optional annual dividend paid out to
Most private equity or venture capital institution will want to see most of the following:
• Proprietary Intellectual Property
• Serves a large market size.
• Management team members with expertise and experience.
• Have a scalable project model.
• The ability to exit the investment within 5 years.
• A current valuation that allows for a good return on investment with at least 25%
growth over short term period (1 to 3 years) or doubles the investment (200% growth)
in a period of 10-year term.
Part 1 – Project Proposal
A project proposal serves several purposes. It can help convince investors or lenders to finance
your project. It can persuade partners or key employees to join your company. Most
importantly, it serves as a roadmap guiding the launch and growth of your new project.
This section should convey your enthusiasm for your project idea and get readers excited about
it, too. A good project proposal is clear and concise. A person outside of your industry should be
able to understand it. Avoid overusing industry jargon or terminology. Avoid making
unsubstantiated claims or sweeping statements. Investors, lenders and others reading your
plan will want to see realistic projections and expect your assumptions to be supported with
Your project proposal should briefly explain each of the below.
1. An overview of your porject idea.
2. A description of your product and/or service. What problems are you solving for
your target customers?
3. Your goals for the project. Where do you expect the project to be in one year, three
years, five years?
4. Your proposed target market. Who are your ideal customers?
5. Your competition and what differentiates you and your project plan. Who are you up
against, and what unique selling proposition will help you succeed?
6. Your management team and their prior experience. What do they bring to the table
that will give your project and your plan a competitive edge?
7. Financial outlook for the project. Explain exactly how much money you want, how
you will use it, and how that will make your project more profitable.
Refer to page 81 of Successful Project-Management book (6th edition) for more details on
“Simplified Project Proposal”. The focus of the proposal should be on quality of the content –
clear, concise, and convincing – rather than quantity or number of pages. Provided full
paragraphs for each item. No bullet points. No more than two pages.
Part 2 – Define Project Scope
The project scope defines what needs to be done. It is all the work that must be done to
produce all the project deliverables, satisfy the sponsor or customer that all the work and
deliverables meet the requirements and acceptance criteria, and accomplish the project
objective. This portion of the report is a detailed description of the project scope of work,
including any assumptions. Clearly state project objective(s). The project scope document
should contain the following sections:
1. Customer requirements.
4. Acceptance criteria
5. Brief summary of Work Breakdown Structure
Refer to page 106 of Successful Project-Management book (6th edition) for more details on
“Define Project Scope”. The project scope document is valuable for establishing a common
understanding among project stakeholders regarding the scope of the project. The contractor
or project team needs to gain agreement from the sponsor or customer on the project scope
document. If the scope seems much greater than originally anticipated by the customer, it may
affect the budget and schedule for performing the work and jeopardize accomplishing the
project objective. In such a case, the customer and contractor would have to agree on
increasing the budget, extending the schedule, reducing the scope, or some combination
Part 3 – WBS & RAM
Create a one complete Work Breakdown Structure (WBS) and complete Responsibility
Assignment Matrix (RAM) along with detailed summary of both. List of activities, including
estimated duration of each activity. Budget for each activity (hours for each person and any
material costs). Refer to page 111 and 115 respectfully of Successful Project-Management book
(6th edition) for more details on “Work Breakdown Structure” & “Responsibility Assignment
Part 4 – Network diagram
Create a one Network diagram of the logical sequence of all activities for the project along with
detailed summary of the diagram. The entire Network Diagram and description should answer
the following questions:
1. Which activities must be finished immediately before this activity can be started?
2. Which activities can be done concurrently with this activity?
3. Which activities cannot be started until immediately after this activity is finished?
By answering these questions for each activity, you should be able to draw a network diagram
that portrays the sequence and dependent relationships of activities needed to accomplish the
project work scope. The entire network diagram should flow from left to right, although some
arrows may flow from right to left to prevent the overall diagram from becoming too long or
unwieldy. Refer to page 118 of Successful Project-Management book (6th edition) for more
details on “Network Diagram”.
Part 5 – Base Line Schedule
Create a Base Line Schedule via Computer-generated Gantt Chart using Microsoft Project (any
version). You can download Microsoft Projects Professional for free on the following link from
NJIT: http://ist.njit.edu/software-available-download/ You can use the textbook and/or any
other Internet resource for tutorials if have not used this software before.
The Base Line Schedule should show the duration, earliest start and finish times, latest start and
finish times, and slack for each activity. Identify activities that make up the critical path. Discuss
possible ways to reduce overall project duration and consequences of doing so. If done
correctly will Microsoft Projects automatically generate your Network diagram for the project.
Part 6 – Project Financials
The objective of the Financial section of the proposal is to convince the customer that your
price for the proposed project is realistic and reasonable. Describe the economics and financials
for the project by completing the following:
1. Create an Estimate Activity Cost Table for the project along with detailed summary of
the table. This table should include the following:
a. Labor cost
b. Material cost
c. Equipment cost
d. Facilities costs
e. Subcontractors and consultant costs
f. Travel cost
h. Overhead & Profit
Refer to page 245 of Successful Project-Management book (6th edition) for more details
on “Estimate Activity Costs”.
2. Identify which costs are investment costs (initial costs) or operating costs to offset the
cost outlined on the Estimate Activity Cost Table by providing the following:
a. Analysis of investment cost. Refer to Table 12-1 on page 131 of Engineering
Economics book for more details. Identify the lenders (investors) initial
investment to startup the project.
b. Analysis of the operating costs. Refer to Table 12-2 on page 132 of Engineering
Economics book for more details. Identify the lenders (investors) annual (or
monthly) investment to the maintain the project (after the initial investment).
Create a Cash Flow Diagram to represent the transactions of cash which will take place
over the course of your project. Transactions can include initial investments,
maintenance costs, projected earnings or savings resulting from the project, as well as
salvage and resale value of equipment at the end of the project. The cash flow
statement tracks how much cash your project has on hand at any given time. Once your
project is up and running, you’ll want to keep close tabs on your cash flow statement.
For now, however, you’re creating a cash flow projection. Think of the cash flow
projection as a forecast for your project checking account. It details when you need to
spend money on things such as inventory, rent and payroll, and when you expect to
receive payments from customers and clients. For example, you may make a sale, have
to buy inventory to fulfill the sale, and not collect payment from the customer for 30, 60
or 90 days. The cash flow projection takes these factors into account, helping you
budget for upcoming expenses, so your project doesn’t run out of money.
Refer to page 5 of Engineering Economics book for more details on Cash Flow Diagram.
3. Net present value (NPV) is the difference between the present value of cash inflows and
the present value of cash outflows over a period of time. NPV is used in capital
budgeting and investment planning to analyze the profitability of a projected
investment or project. NPV is the result of calculations used to find today’s value of a
future stream of payments. Compute the Net Present Value (NPV) based on your
projected cash flow. Identify the following points:
a. NPV at the start of the project (after the initial investment)
b. NPV at future asset valuation point (or end of the project).
c. Estimate when NPV equals 0.
Refer to page 66 of Engineering Economics book for more details on Net Present Value.
4. The internal rate of return (IRR) is a metric used in financial analysis to estimate the
profitability of potential investments. IRR is a discount rate that makes the net present
value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR
calculations rely on the same formula as NPV does. Keep in mind that IRR is not the
actual dollar value of the project. It is the annual return that makes the NPV equal to
zero. Generally speaking, the higher an internal rate of return, the more desirable an
investment is to undertake. IRR is uniform for investments of varying types and, as such,
can be used to rank multiple prospective investments or projects on a relatively even
basis. In general, when comparing investment options with other similar characteristics,
the investment with the highest IRR probably would be considered the best. Calculate
the Internal Rate of Return (IRR) for your project or client’s investment over 1-year, 3-
year, 5-year and 10-year holding terms. Refer to page 66 of Engineering Economics book
for more details on Rate of Return.
5. The payback period refers to the amount of time it takes to recover the cost of an
investment. Simply put, the payback period is the length of time an investment reaches
a break-even point. The desirability of an investment is directly related to its payback
period. Shorter paybacks mean more attractive investments. Calculate the Payback
Period (PBP) for your project or client’s investment. Refer to page 68 of Engineering
Economics book for more details on Payback Period.
6. A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the
overall relationship between the relative costs and benefits of a proposed project. BCR
can be expressed in monetary or qualitative terms. If a project has a BCR greater than
1.0, the project is expected to deliver a positive net present value to a firm and its
investors. Refer to page 69 of Engineering Economics book for more details on BenefitCost Ratio.
Create a PPT presentation of your term project. Your Presentation is a proposal to a
hypothetical investor. What makes a good proposal? One attribute is appearance. A strong
proposal has an attractive, professional, inviting appearance. In addition, the information
should easy to access. A second attribute is substance. A strong proposal has a well-organized
plan of attack. A strong proposal also has technical details because technical depth is needed to
sell your project. Remember: A proposal is a persuasive document as well your presentation
should be clear, concise, and convincing.
Submit, in a report format, a final copy of all documents (parts), along with a copy of the
presentation visuals in your Appendix section for the report. The presentation should be at
least 15 to 20 minutes per team. Please bring flash drive of your PPT file. I will bring a laptop
from NJIT with a VGA cable to connect to the projector. Feel free to bring in any props and
visual aids you may require for the presentation.
Recommend Group Structure:
Each group should be teams of at least five to six members. The team will unanimously choice
one team lead and one team coordinator.
The entire team is responsible to define their project scope and start brainstorming the
structure of their proposed project. It’s the team’s responsibility to focus on the whole planning
stage of the project (Part 3) together. Now that the project scope has been defined by the
whole team, these planning stage will shape the project. They will collaborate to create the
final Work Breakdown Structure (aka WBS) and Responsibility Assignment Matrix (aka RAM).
WBS establishes the framework for how the project will get done to produce the project
deliverables. RAM illustrates who will be responsible for the work. It is a tool used to designate
the individuals responsible for accomplishing the work items in the WBS. Using the WBS &
RAM, the team members will next define all the specific activities that need to be performed to
produce the end product or deliverable.
This will lead to the creating the Network Diagram (Part 4) which will define the activities more
specifically on how the work will get done. Now that the activities for the project have been
defined, two team members can estimate activity resources and its duration. This will help
create the “Base Line Schedule” (Part 5) for the project. To establish a basis from which to
calculate a Base Line Schedule using the estimated durations for the activities, it is necessary to
select an estimated start time for when the project is expected to begin and a required
completion time for when the project must be done. These two times (or dates) define the
overall window, or envelope, of time in which the project must be completed.
The roughly half of the entire team will need to be involved with determining project cost,
budget, and potential value of the project (Part 6). Typically, after the planning stage of the
project, an estimate activities cost can be created. Resources include people, materials,
equipment, facilities are used for estimating activity costs and project budget. These team will
layout the investment costs (initial costs) and operating costs. They will create cash flow
diagram and project estimated potential value of the project by calculating the Net Present
Value (NPV), Rate of Return (ROR), Payback Period (PBP), Benefit-Cost Ratio (BCR) and Net
Benefit Value (NBV). These team members responsible for the Project Financials will create
necessary tables, draw necessary diagrams and compute necessary values critical for the
The team lead and coordinator should take the Part 1 & 2 of the Term Project and provide
team oversight. This role requires a person(s) to be responsible for guiding the group
throughout the project. They are responsible to communicate clear instructions to team
members and listen to team members’ feedback. Monitor team members’ participation to
ensure the each “Part” connects together. Team lead/coordinator will follow up with each team
members’ progress through the semester. The team lead/coordinator will also focus on the
“Project Proposal” and define the “Project Scope”.
The team (as a whole) will work together to coordinate and collaborate all parts, so they tie
together into one proposal which consists of a comprehensive report and presentation. If
anyone has any question or concerns regarding the term project, please send me an email. If
you require to discuss your project in detail with me, let me know so I can schedule a
conference call with you and/or your group.
Term Project Requirements The Term Project Report and Presentation will due Wee
Term Project Requirements