MIS PROJECT COST ESTIMATES. 8.1 Costs CHAPTER 8
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1 CHAPTER 8 MIS PROJECT COST ESTIMATES This chapter details the costs involved in implementation of the proposed IS and IT solution for UPID according to the implementation plan provided in chapter 7. These costs are suggestive in nature and will be fine tuned in phase 1 of the project. 8.1 Costs The costs that will be incurred for implementing the proposed IS and IT solution will be of two types one time and recurring. This section presents the build-up of one time and recurring costs spread over time frame of the project. One time costs would include the cost of servers, computers and peripherals, network components for LAN and WAN, scanners, plotters, UPS, etc. The specifications of each of the component is given in Appendix N. Recurring costs would include cost of operation and maintenance of hardware and network components, charges payable to service provider, cost of manpower for the IS organisation and outsourcing of services One Time Costs One-time costs would include:?? Costs for Hardware?? Costs for Software?? Costs for Communication Infrastructure?? Costs for Miscellaneous Items Refer to Appendix M for details on build-up of one-time costs Costs for Hardware One-time costs will be incurred for purchasing hardware such as:?? Server - Application server - Mail server - Web server?? PCs - Workstations - Desktops 8-1
2 - Laptops?? Peripherals - Printers LaserJet printers (Small) Network printers which include LaserJet (Black) and LaserJet (Color) Line Printers (Black) Dot Matrix Printers - UPS 1 KVA 5 KVA 10 KVA 20 KVA - Scanners A0 Size A4 Size - Plotters - Digitisers Costs for Software One-time costs will be incurred for purchasing/procuring software such as:?? Application Software The cost for development of Application Software has been estimated as per the calculations in following table. Item Value Remarks Number of Function Points for the Application Systems 6663 Function Points for applications developed on Oracle and 932 Function Points for applications developed on Lotus This is an estimate based on current understanding of UPID processes. However, re-estimation is to be done by Application Development vendor. 8-2
3 Item Value Remarks Notes Effort for Application System Development Cost of Development of Application Systems Actual Cost person hours or person months Rs Lac ~ Rs Lac (Rounded off to the nearest tens) Assuming 7 hours per day and 24 working days in a month Productivity figures have been taken as 10 hours per function point for applications developed on Oracle and 5 hours per function point for applications developed on Lotus Notes. Assuming Rs. 1 Lac per person month of effort spent Assuming fresh development of application system.?? RDBMS Package It is assumed that enterprise version of RDBMS package for unlimited users will be purchased and all authenticated users will have access to database.?? GIS Software GIS software with editing facilities at server side and viewing facilities at client side will be procured. It is being assumed that changes, if any, in GIS data will be incorporated at location housing server and end users can view them on their desktops.?? Modelling Software Modelling Software will be purchased to facilitate organisation and management of technical functions of UPID.?? Mailing and Messaging Software Enterprise server licenses will be purchased for mail servers and collaboration client licenses will be purchased for clients. Clustering of server licenses will be done at server.?? Bandwidth Management Software Bandwidth management software will be purchased to manage bandwidth and improve performance of WAN. The cost includes cost of additional servers and concurrent user licenses. 8-3
4 ?? Backup Management and Administration Software Backup management and administration software will be purchased to manage backup of servers at a central location.?? Middleware Middleware will be purchased to improve performance of application software.?? Hindi User Interface Hindi User Interface will be purchased for all users of UPID. It will enable users to switch between English and Hindi as per their requirements Costs for Communication Infrastructure?? WAN - Leased Lines Routers Modems - Radio Links Microwave Radio Router Semi parabolic antenna - VSAT Outdoor unit Indoor unit Router?? LAN - Switches (24/12 ports) - Jack Panel - Rack with cable and power supply - Ethernet cable Costs for Miscellaneous Items?? Storage Unit?? Tape Library 8-4
5 ?? Back-up Media?? Video Conferencing Set-up?? VoIP Set-up?? Training UPID officials will be given training depending upon their work spheres. Various training areas and corresponding users have been identified in chapter 6. The estimated one time costs exclude costs incurred on other works like site preparation, building of data centre, acquisition of furniture, ACs, generators and furnishing of buildings etc Build-up of the of one time costs Phase 1 Hardware for mailing and messaging solution, Software for mailing and messaging solution and costs for training Phase 2 Remaining hardware, remaining software, WAN, LAN, Back-up media, Video Conferencing equipment, VoIP, etc. Table 8.1 and Table 8.2 give capital cost plan for centralised and distributed architecture respectively. Capital cost plan has been prepared according to Implementation Plan provided in chapter 7. Description Table 8.1 Capital Cost Plan (Centralised Architecture) Phase 1 Phase 2 Costs for Hardware Costs for Software Costs for Communication Infrastructure Costs for Miscellaneous Items * *Existing hardware will be accounted for at the time of preparation of bidding document. Description Table 8.2 Capital Cost Plan (Distributed Architecture) Phase 1 Phase 2 Costs for Hardware Costs for Software Costs for Communication
6 Description Phase 1 Phase 2 Infrastructure Costs for Miscellaneous Items * *Existing hardware will be accounted for at the time of preparation of bidding document Recurring Costs Recurring costs will be incurred mainly for:?? Annual Maintenance Contract (AMC)?? Charges payable to Service Provider (WAN Connectivity)?? Cost of Manpower for IS Organisation?? Outsourcing of Services Refer to Appendix M for details of recurring costs AMC Recurring costs will be incurred for AMCs of the following.?? Hardware Maintenance of hardware has been taken as 8% of the hardware cost. This cost includes the hardware upgrades, replacements, etc.?? Networking Maintenance of networking components has been taken as 10% of the cost of communication infrastructure. This cost includes the hardware upgrades, replacements, etc.?? Software - Application Software It is assumed that application software vendor will provide 11 support staff personnel. One person month has been assumed to be equal to Rs. 100,000/-. - Mailing and Messaging Software It is assumed that vendor will provide 11 support staff personnel for mailing and messaging solution. One person month has been assumed to be equal to Rs. 25,000/-. 8-6
7 Charges payable to Service Provider (WAN Connectivity) Recurring costs will be incurred for bandwidth charges for leased line, radio link and VSAT in the form of service charges, royalties etc Cost of Manpower for IS Organisation UPID will depute/recruit/hire manpower for IS Organisation and their pay packages will form a component of recurring costs for UPID. The IS Organisation would include a Chief Information Officer, Systems Managers, Analysts/Programmers and Helpdesk Outsourcing of Services Recurring costs will be incurred for outsourcing services for the following.?? Hardware Maintenance The vendor providing hardware maintenance will provide sufficient staff to cater to the needs of UPID.?? Communication Infrastructure Maintenance - Maintenance of LAN - Maintenance of WAN The vendor/s providing communication infrastructure maintenance will provide sufficient staff to cater to the needs of UPID. Table 8.3 gives a summary of recurring costs. Table 8.3 Summary of Recurring Costs Description Recurring Costs for Centralised Architecture Recurring Costs for Distributed Architecture Hardware (After Warranty) Networking (Including WAN and LAN after Warranty) Support for Application Software Support for Mailing and Messaging Software
8 Description Recurring Costs for Centralised Architecture Recurring Costs for Distributed Architecture Software Charges payable to Service Provider (WAN Connectivity) Cost of Manpower for IS Organisation Outsourcing Cost for Services Hardware Maintenance Communication Maintenance Infrastructure Recurring Costs Note: The calculation of estimated costs in this section and appendices are primarily based upon prices, terms and conditions obtained from the Web and/or discussions with the vendors cited or their authorised partners. The consultants do not represent or warrant that the prices and terms and conditions mentioned in this document are accurate, complete or current. However, the prices and terms & conditions are open to negotiations with the respective vendors. The calculations have been done on the basis of 2200 users. The numbers have been estimated for the completeness of calculations.?? UPID Expenditure As part of cost-benefit analysis, the expenditure and the corresponding figures where saving is envisaged, have been classified below from the BM13 document ( ). All figures are in thousand rupees. a. Travel Allowance Expenses on Travel allowances are shown below: Financial Year
9 b. Stationary and Printing of Forms Expenses on stationary and printing of forms are shown below: Financial Year c. Telephone Expenditure Telephone expenditure are shown below: Financial Year d. Publication Expenses Publication expenses are shown below: Financial Year The assignment is in the formulation of strategy phase. Some of the cost items have been identified in this report. The quantification of savings for UPID related to MIS project will involve large effort. Hence, the quantification of savings on manpower, travelling, telephone, water etc. will be dealt separately and will be submitted to UPID in a different report. The inputs from institutional strengthening consultancy being carried out by UPID will also be taken for preparing the report. 8-9
10 8.2 Benefits Information Technology facilitates improvement of operational efficiency by enabling the availability of reliable, accurate and updated information. Further it reduces the amount of time spent on manual exchange of information, which is most often a critical bottleneck causing delay in operations. Some of the envisaged qualitative benefits of implementing the proposed MIS solution in UPID are detailed below:?? Effective Decision Support Implementation of the proposed MIS solution in UPID will facilitate the timely retrieval of accurate and up-to-date information. The facility to make on-line queries will also reduce the delays involved in retrieving and compiling information manually. An effective MIS will assist the management to make timely and effective decisions based on data rather than on intuition and gut feeling.?? Effective Planning and Analysis Based on the Factual Data and Trends Data maintenance, a salient feature of the proposed MIS solution, will ensure that data corresponding to various functional areas, is constantly updated, thereby providing timely, accurate, reliable and updated information on various functions for effective management, planning and control.?? Performance Monitoring The proposed MIS solution will enable monitoring of various activities of UPID based on the information collected. The proposed MIS solution will provide for automatic checks that generate warnings for abnormal conditions. This will enable effective monitoring and control by providing quick means of detecting any unacceptable variations or deviations early enough for corrective actions.?? Increased Productivity Automation of routine tasks will lead to increase in productivity of personnel, since the personnel would be able to handle larger volume of work.?? Reduced Documentation The data-sharing feature in the proposed MIS solution will enable a significant reduction in manual document generation and duplication in data entry. The single point data entry feature of the proposed integrated systems will reduce data redundancy.?? Improved Job Satisfaction to Users computerisation will result in better job satisfaction to users, as the computer will perform routine computational and other repetitive tasks both efficiently and quickly. This will result in an improved utilisation of manpower. 8-10
11 ?? Enhanced Transparency computerisation will result in better transparency for the department, as majority of the tasks will be computerised hence retrieval and verification of the data will be faster.?? Enhanced Communication Establishment of network across UPID will enhance communication and decision making in UPID. The solution will lead to improved workflow. The other benefits of MIS solution will be lesser process time, lesser establishment costs etc. Reduction in manual data retrieval and transfer would result in greater employee satisfaction and higher manpower productivity. Thus the implementation of the proposed MIS solution will result in several benefits to UPID in the performance of its functions. Thereby, it will help UPID to achieve its objectives. All these benefits would also enable UPID to perform its major role of water resource management in a better manner and thus serve the people of the state. 8-11
12 MIS Project Cost Estimates Costs One Time Costs Recurring Costs Benefits
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