Costs and benefits of the EMU

Abstract:
This paper contributes to the ongoing debate over European Monetary Union (EMU) including the costs and benefits of joining it. Advocators of EMU stressed that it is essential to create a stronger European Union with greater economic, political and social cohesion, whereas the opponents did not support this stage of the European Union’s construction such as the United-Kingdom, Denmark and Sweden, reviewing the merits of a single currency (OCA) and the requirements for a stable currency (Convergence Criteria). (Bernhard Winkler, 1996)
Identify and discuss the costs and benefits of joining the Economic and Monetary Union (EMU)? Do the benefits outweigh the costs?
Introduction
According to François Mitterrand, “EMU is seen as a mean to recover some influence over European monetary affairs.” (François Mitterrand, 1992)The French left wings president at time wanted the emergence of the European Union against the US dollar which has been widely used as the yardstick measurement for all currencies.
In Europe, the existence of different national currencies was considered as the remaining barriers for a barrier-free single market and the influence of the dollar pressed the European Union (EU) to form an Economic and Monetary Union (EMU). The genesis of the EMU with the initial impulse given by the Werner Report in 1970, then failed in 1973 with the oil crisis and finally relaunched with the Delors Plan in 1989 and the Treaty of Maastricht in 1992, was noteffortlessly. The EMU is a type of trade block involving a single market and a common currency. At the European scale, it involves a single European market within its borders and the adoption of the Euro.

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Economists usually refer to the EMU as an economic trade off between perceived benefits and cost of joining the area (Thomas D. Willett, 2002). There are diverging views on the extent of these costs and benefits, and therefore, especially on the question whether to join the EMU or not. The aim of this paper is to analyse the key issues surrounding the entry in the EMU, and balance positive and negative aspects. The pros and cons regarding the EMU require a careful analysis of the economic benefits and drawbacks at both national and company level.

Debate surrounding the EMU

There are many benefits that a country will have by entering EMU. Recently, the euro has gained a lot of influence since many European nations have adopted it. Indeed, the benefits of EMU increase and costs decrease as the level of integration intensifies. (Krugman, 1990)The growing importance of the euro in international trades and the increasing trade activities which result from adopting the currency clearly shows that benefits will outweigh costs. For a country international trades are fundamental in order to have a stronger economy.
Therefore, the “antis-EMU” advocate that the process will submerge the individuality of the European nations in an “unwieldy federation, hobbled by bureaucracy, commanding little popular support and imposing a crippling burden of regulatory and other costs on Europe’s economies” (David Currie, 1997, pp.14) They believe that an organized Europe will have a negative impact for most member states as it will also “reduce the volume of trade and would certainly increase the level of unemployment” (Martin Feldstein, February 20, 2008).
In order to join the EMU, a country must correspond to the Maastricht Convergence Criteria: price stability, sustainable public finances, exchange rate stability and durable convergence. The term “convergence” refers to the process of unifying technological and non-rival domains, preparing late countries in terms of structure and institutions to match with those at the forefront. One of the first obvious benefits is that the implementation of those criteria represents a factor of macroeconomic stabilisation and sustainable economic growth for both EMU countries and future members. However, the convergence requirements are also a clear example of conflict because they are considered as lacking economic rationale and imposing unnecessary pain. Many economists have attacked the convergence criteria, responsible of provoking instability and serving no other purpose except to delay. (De Grauwe, 1993) The convergence criteria and EMU itself seek to guard against “unsustainable budgetary policies in a member state” because these are seen to lead to either “default or debt monetisation” which would “be a major threat to the overall monetary stability” (European Economy, 1990:100)
Furthermore, the convergence criteria make clear that fiscal discipline is defined as the avoidance of an unsustainable build-up of public debt (Emerson, 1992, pp.107) and the transition to EMU for a country will amplify the domestic effectiveness of national fiscal policy for stabilisation purposes. (Emerson, 1992, pp.115)

Benefits and costs of joining the EMU

Our aim is to understand the incentives of the players in the EMU, and a natural starting point is to assess economic costs and benefits of a single currency for a country like France as an example. More or less, there are microeconomic benefits versus macroeconomic costs.
a) Transaction costs and stable environment
One of the most obvious benefits is the resulting ease of transactions across the European Union. Countries are using one currency and as a matter of fact, the elimination of exchange rate fluctuation helped to eliminate transaction costs in intra-EU trade. Firms and business are both saving time and money. For example, an estimated $30 billion[1] a year is spent on foreign exchange transactions. The transactions involve the change from one currency to another but also from accounting systems. Additionally, joining the EMU eliminates the possibility of exchange-rate variation with the EMU zone. If exchange rates move irregularly and unsystematically in response to arbitrary speculation, exchange volatility imposes a macroeconomic cost (David Currie, 1997). Thus, its elimination represents a real advantage as it provides a more stable environment for trade within the euro zone by lowering risks and uncertainties as the economy is more flexible and resources more mobile.
b) Monetary policy and the European Central Bank
Despite affecting a fundamental aspect of a country’s sovereignty, member-states must abandon monetary policy. Additionally, members are deprived from revenue of seigniorage which is the net revenue derived from the issuing of currency. This loss mainly affects high-inflation rate countries such as Greece or Spain for example. Monetary policy is not anymore at the national level but depends on a supranational authority, the European Central Bank, headquartered in Frankfurt, Germany. Established in 1998, the ECB is responsible for monetary policy covering the sixteen member States of the Euro zone. Granting monetary control to the ECB means that National governments are giving monetary policy instrument such as regulating exchange rate and interest rate, and this is likely to involve a cost. This cost will occur during recession or inflationary boom, when a country will be unable to raise or lower interest rates independently of other countries within the EMU.
c) Fiscal power of member-states
Joining EMU severely limits the fiscal power of member-states. While they maintain formal responsibility for fiscal policy, member-states will have to show fiscal rectitude to avoid penalty. Convergence criteria require countries to reduce their debt which produced a ‘squeeze effect’ (Gärtner, 1997) for countries with loose fiscal policy. Indeed, fiscal policy remains the only macro-economic tool that is available to governments. At the same time, the union has the power of coordination and surveillance, and the ability to recommend modifications of fiscal policy and to apply sanctions against governments that have no taken the recommended steps.
d) A single currency and its effect on public support
As we already mentioned earlier, a member-state joining the EMU will have to adopt a common currency: the euro. Despite the fact that the adoption of the euro will clearly affect the country’s sovereignty, some people ‘feel closer to other countries’ (European Commission, 2002) which can bring Europeans together and build a notion of European identity. Therefore, the adoption of a common currency can result in undermining a nation’s identity. Currencies such as the “Francs” or the “Deutsch Mark” have symbolized economic prosperity, especially due to the fact that people trusted them. Moreover, the “Franc” was the French national currency since 1795 and has remained for two hundred and four years. The Deutsch Mark had the reputation as one of the world’s most stable currencies. For a country like France or Germany, the change of their currencies was a memorable step.
Moreover, an obvious economic consequence is the impact on the purchasing power. For example, in France the switch from “Francs” to the “Euros” had a major effect on the French purchasing power. Twenty euro is the equivalent of approximately a 120Francs and this was perceived as a large amount of money in terms of purchasing power before the introduction of the new currency. While the adoption of the euro was meant to bring stability over the long-term, a study has been conducted showing that price rises were evident in the service sector such as restaurants, cafés, hairdressers and recreational and sporting services. (Eurostat, 2003) Nevertheless, French consumers have noticed a change in the cost of living. Additionally, adopting a new currency is not always the easiest thing to do.
e) Effects on firms and businesses
Another benefit is the increase in attractive opportunities for foreign investors and these effects are unevenly spread across firms and businesses. Thus, larger firms will benefit more from EMU. For example, strong domestic enterprises will benefit from a greater degree of internationalisation of their markets. It will be especially helpful to small and medium sized enterprises which may not be able to reap sizeable economies of scale. Nevertheless, firms and businesses will be the first to experience the negative effects from joining the EMU. For example, travel agents and banks that are losing commission on currency exchanges and European currency traders will no longer be able to exert this business. Moreover, the single currency may lead to the “Europeanising” (Brown, B.2004, pp. 57-60.) of labour markets within the EMU zone. Consequently, it would be much easier to compare wages across the zone, especially in sectors where trade unions wield bargaining power. This will lead to an increase of wages and could engender major problem to companies outsourcing in low wages countries such as in Eastern Europe. The single currency will remove just the elements of labour-market flexibility.
f) Price transparency and price convergence
Nevertheless, joining the EMU will foster competition as there is greater price transparency across countries. Indeed, a single currency makes easier to show how prices differ between countries. It has been found that “the prices of goods differ considerably in different countries and continents due to the differences in currency.” (McCallum, 1995, pp24-25) As an example, before EMU, a customer living in France was able to buy a high value-added car cheaper when going in Germany. Hence, this leads to lower prices in the short to medium run because consumers can buy from the cheapest source and thus, drive prices down as companies are running under pressure. Indeed, “The formation of the euro zone and the SM of almost 300 million consumers will inevitably sharpen competitive pressures throughout Europe”. (Spanos et Al., Greek, pp.638) The subsequent enhancement of competition will increase economic efficiency and should cause price convergence. (Spanos et Al., Greek, pp.639) Consequently, the EMU provides information to its members and thus, enables them to make wiser decisions.
g) “One fit all” policy problem:
Moreover, other problems of joining the European Economic and Monetary Union will occur in the medium to long term. Indeed, the concern is that whether the states are sufficiently similar for them to co-exist with a common currency. For example, not all states are at the same stage of the trade cycle which represents a periodic fluctuation in the rate of economic activity as measured by levels of prices, production and employment. As an example, the UK is the world’s fourth largest economy and the second largest in the EU. The City of London represents Europe’s major European financial centre. The case of the UK has specific arguments: the UK has a lower level of intra-EU trade, one of the highest percentages of home owners and is affected differently by oil price movements due to different arrangements. It is then weaker and more vulnerable to external shocks which are unexpected shocks that do not affect every nation equally. (D. Johnson, C. Turner, 2nd edition, p180-183) Hence, if the UK joins the euro, they will have to increase their exchange risks because the euro is turning around the dollar. The pound for example is neutral compared to the dollar and the euro. Consequently, the inappropriateness of one monetary policy for so many states is a major cost of joining the EMU. The case against the UK’s entry in EMU depends also on other factors such as the recession the country is undergoing and the influence of the United-States.

Benefits outweigh the costs?

The case of Greece is a good example to show how benefits can outweigh the costs. Indeed, Greece has recently entered the EMU and thus, represents a good example for a number of candidates. Hence, it is an example of an economy in transition that has made a lot of progress in order to fulfil the macroeconomic convergence. A study of Greek firms has been conducted by Spanos (Business strategy analyst at Athens University) which helps to understand how firms react when entering the EMU and found that leading Greek firms “appear fully aware of the dramatic changes they will have to address in the near future…In line with recent empirical evidence, the findings presented here are encouraging in that they suggest a strong learning effect that has presumably led Greek management towards convergence.” (Spanos et Al, pp.646) We understand that both EU membership and the panorama of competing in the EMU have acted as major catalysts. In short, the EMU has contributed toward the development of western-type of management style. Additionally, Greek firms have new challenges to overcome and this requires new competitive strategies, organizational structures, and management processes. Consequently, Greek firm’s strategy has shifted toward offer better quality products and services, and a tighter cost control.

Trade theories are examples of why benefits outweigh costs. (Aiginger, K. et al, 1999, pp.3) The traditional theory was described by Ricardo in 1817; a country can achieve a “comparative advantage” resulting from differences in productivity or endowments between countries and regions. Consequently, trade liberalization and economic integration will result in production re-location and increasing specialization according to comparative advantages.
Additionally, Mundell (1961) McKinnon (1963) and Kenen (1969) identified the reasons why a country should or should not enter a monetary union. If for every member-state benefits outweigh costs then the currency area is optimal. An “optimum currency area” (OCA) considers the premise that “when an external shock hits the economy, it is easier to adjust the exchange rate rather than domestic prices or wages.” (A. Belke and D. Gros, (1997). pp. 3/50) Indeed, this approach assesses what a country loses by giving up the exchange rate as an adjustment instrument.
Conclusions
To conclude, according to Martin Feldstein, EMU is seen by France as an opportunity to be a “co-manager” of Europe as an equal of Germany. Furthermore, it has been assumed that economic integration among the European countries will lead to convergence while reducing asymmetric shocks. However, classical theories assess that integration results in more specialization due to comparative advantage. Hence, core economies (France and Germany) may benefit at the expense of less efficient economies such as Eastern member-states. Furthermore, with a Single Market, firms will have to expand in size in order to compete. Such large firms are mostly located in core economies of the EU. However, Greece case study showed that EMU has contributed to the development of firms by offering higher quality products and services. We can then conclude that if a country joins EMU, benefits will clearly outweigh costs.
References:
Aiginger, K. et al. ‘Specialisation and (geographic) concentration of European
Manufacturing’, Enterprise DG Working Paper No 1, Background Paper for the ‘The Competitiveness of European industry: 1999 Report’, Brussels.
Ardy, B., Begg, I., Hodson, D., Mahe, I. and Mayes, D. (Eds) (2005) Adjustment to EMU: One Europe or Several? Basingstoke: Palgrave Macmillan
Backé, P., Thimann, C., Arratibel, O., Calvo-Gonzalez, O., Mehl A. and Nehrlich, C. (2004) ‘The Acceding Countries’ Strategies towards ERM II and the Adoption of the Euro: An Analytical Review’, ECB Occasional Paper Series, n°10. Frankfurt: European Central Bankn http://www.ecb.int/pub/
Brown, B. (2004) ‘Existing EMU’, the International Economy, 18 (2), pp. 57-60.
C. Allsopp & M. Artis, “The Assessment: EMU, Four Years On,” Oxford Review of Economic Policy 19 Cambridge University Press,
Bernhard Winkler. “Towards a Strategic View on EMU: A Critical Survey.” Towards a Strategic View on EMU: A Critical Survey Jan.-Apr 16.1 (1996): 1-26. Print.
Commission of the European Communities (2004) ‘EMU after Five Years’, European Economy, Special Report, and Number 1/2004, http://europa.eu.int/comm/economy_finance/publications/european_economy/2004/eesp104en.pdf
Chang, M. 2009. Monetary integration in the European Union. Basingstoke: Palgrave MacMillan.
David Currie, The Pros and Cons of EMU by, the economist intelligence Unit, January 20, 1997
De Grauwe, P. (2002) ‘Challenges for Monetary Policy in Euroland’, Journal of Common Market Studies, 40 (4), pp. 693-718
Dinan, D. 2005. Ever closer union: an introduction to European integration (3rd ed.). Boulder, Colorado: Lynne Rienner. Chapter 15
European Central Bank (2008) Statistical data Warehouse, http://www.ecb.int/stats/prices/hicp/html
Gärtner, M. (1997) ‘Who wants the euro-and why? Economic explanations of public attitudes towards a single European currency’, Public Choice 93 (3-4): 487-510
Greek Firms and EMU: Contrasting SMEs and Large-Sized Enterprises, Spanos et al. 2001, European Management Journal, Vol. 19, No. 6, pp. 638-648. (Available electronically)
Johnson and Turner, 2006, Economic and Monetary Union Chapter 15 – Dinan, 2005, Economic and Monetary Union
Dr Rachel Doern, Royal Holloway University of London, Lecture n°5: Economic and Monetary Union, 2009
Panos.C. Afxientiou (1998), Convergence, the Maastricht Criteria, and Their Benefits,
Philip R.Lane. “The Real Effects of European Monetary Union.” The Real Effects of European Monetary Union 20.4 (fall, 2006): 47-66. Print.
Susan A. Banducci, Jeffrey A.Karp and Peter H.Loedel. “Journal of European Public Policy.” Economic interests and public support for the euro(June 2009): 564-81. Print.
Thomas D. Willett.Some Political Economy Aspects of EMU. Elsevier Science Inc, 2000. Print.
Kathryn M.E. Dominguez, The Journal of Economic Perspectives “The European Central Bank, the Euro, and Global Financial Markets.” The European Central Bank, the Euro, and Global Financial Markets Fall 20.4 (2006): 67-88. Print.
Werner Bonefeld, Economic and Political Weekly. “Politics of European Monetary Union: Class, Ideology and Critique.” Politics of European Monetary Union: Class, Ideology and Critique 33.35 (1998): 55-69. Print.
http://www.unc.edu/depts/europe/conferences/eu/Pages/emu8.htm
http://www.publications.parliament.uk/pa/cm200304/cmselect/cmpubacc/541/54107.htm
 

Analysis of the Economic and Monetary Union (EMU)

The Geography of European Integration: Economy, Society and Institutions

Which of the following two sentences is more likely to be correct in your opinion? Present at least two arguments to support your opinion.

The establishment of a common monetary union in the EU was a successful step towards deeper European integration.
The idea of a common monetary union in EU didn’t take under consideration all the economic aspects resulting in its failure a few years later.

Economic and Monetary Union (EMU) represents a major step in the integration of EU economies. It involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro. The 28 EU Member States take part in the economic union, but some countries have taken integration further and adopted the euro.
The decision to form an Economic and Monetary Union was taken by the European Council in Maastricht in December 1991, and was later enshrined in the Treaty on European Union. The Economic and Monetary Union helps the EU in its process of economic integration. Economic integration brings the benefits of greater size, internal efficiency and robustness to the EU economy as a whole and to the economies of the individual Member States. This offers opportunities for economic stability, higher growth and more employment. On January, 1999, 11 of the 115 European Union (EU) countries formed the Economic and Monetary Union (EMU), adopting the euro as their common currency. Since then, in the Eurozone, the European Central Bank carries out a common monetary policy and, to a high degree, bond markets are fully integrated ( European Commission).

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The creation of the Eurozone was preceded by a gradual regulatory harmonization among European stock markets and the ending of various restrictions on nonresidents, and also by an effort among EU countries to satisfy the Maastricht criteria for joining the Eurozone. The effort to satisfy the Maastricht criteria also led to better‐balanced fiscal budgets, which may have led to a “real convergence” of European economies, that is, an increased synchronization in business cycles across the European economies (Julian Alworth, Giampaolo Arachi, 2008).
The introduction of the euro had many advantages. It improved transparency, it standardized the pricing in financial markets, and reduced investors’ transaction and information costs. Finally, the introduction of a single currency eliminated the currency risk within the EU and reduced the overall exchange rate exposure of European stocks. This factor, together with the nominal and real convergence, should have led to more homogeneous valuations of equities in EMU countries (Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, 2007).
One way to evaluate if European stock markets became more integrated during the 1990s is to examine the evolution of the relative influence of EU. When stock markets are partially integrated, both global and local risk factors are priced. There is a possibility of estimating a conditional asset pricing model with a time‐varying degree of integration, which measures the importance of EU, wide market and currency risks which are relative to country‐specific risk (Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, 2007).
Each Eurozone country has its own time‐varying degree of stock market integration. The degree of integration is bounded between zero and unity and conditioned on a broad set of monetary, currency, and business cycle variables. These variables estimate the gradual nominal and real convergence of the European economies during the pre‐monetary union period. Among the included variables, the most prominent one is each country’s forward interest rate differential with Germany which was widely used by market analysts as an indicator of the probability that an EU country would eventually manage to join the Eurozone. In the second half of the 1990s, the degree of integration gradually increased to the point where individual Eurozone country stock markets appear to be fully integrated into the EU market. There have been two main factors that driven the increase in the level of integration: the evolution of the probability of joining the single currency and the evolution of inflation differentials (Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, 2007).
Moreover, economic integration resulted in business‐cycle convergence. Cross‐country return correlations and business cycles are related. Monetary and fiscal policy coordination may have led to increased synchronization of business cycles among EMU member countries, which could have led to increased correlation of expected corporate earnings and more homogeneous estimates of European equities (Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, 2007).
In the 1990s there is a process of increased integration of European stock markets to the prospects of the formation of EMU and the adoption of the euro as the single currency. During the 1990s, the degree of integration of each country’s stock market with the EU market was negatively related to both its forward interest rate differential with Germany and its inflation differential with the best three performing countries. Also, the inflation differential was a major indicator of whether a country with a high inflation had the ability to achieve nominal convergence and satisfy a major criterion for admittance into the Eurozone. The process of integration was not easy, but in the second half of the 1990s, stock markets converged toward full integration. In other words, their expected returns became increasingly determined by EU‐wide market risk and less by local risk (Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, 2007)
Concluding, supporting evidence on the hypothesis that the prospect of EMU was the cause behind the observed increase in stock market integration among Eurozone countries comes from two main sources. First, when we observe the experience in the United Kingdom, an EU country that chose not to join the Eurozone, is clearly different than the rest of the European stock markets. The UK market showed no signs of increased integration with the EU stock market. Second, the integration in Europe appears to be a Eurozone‐specific phenomenon, which does not rely on possible simultaneous world‐market integration. So, now it can be said that the establishment of a common monetary union in the EU was a successful step towards the European integration. It is obvious that the process of integration was not easy, but there was a convergence of the stock markets towards full integration. In other words, their expected returns became increasingly determined by EU‐wide market risk and less by local risk.
References

European Commission, Economic and Monetary Union. [online] Available at: http://ec.europa.eu/economy_finance/euro/emu/index_en.htm
Gikas A. Hardouvelis, Dimitrios Malliaropulosa, Richard Priestleyd, (2007). The impact of EMU on the equity cost of capital. Journal of International Money and Finance
Julian Alworth, Giampaolo Arachi, (2008). Taxation policy in EMU, Economic Papers 310

1
 

Implementing Local Area Network for a New HR Department in EMU

IMPLEMENTING LOCAL AREA NETWORK FOR A NEW HR DEPARTMENT IN EMU

 

Table of Contents

1. INTRODUCTION:

1.1. Project Overview(Summary):

1.2. Project Objectives:

2. Initiation

2.1. Integration

2.1.1. Scope

2.1.1.1. Scope definition:

2.1.1.2. Scope Statement:

2.1.1.3. PROJECT CHARTER

2.2. Communication

3. Planning

3.1. Integration

3.2. Work Breakdown Structure (WBS)

3.3. Scope

3.4. Time

3.5. Cost

3.6. Quality

3.7. Human resources

3.8. Communication

3.9. Risk

3.10. Procurement

4. Execution

4.1. Integration

4.2. Quality

4.3. Communication

4.4. Procurement

5. Controlling

5.1. Integration

5.2. Cost

5.3. Quality

6. Closing

6.1. Integration

6.2. Procurement

7. Summary

Reference

 

The information processing services are growing at an alarmingly rapid rate. Network-based resources such as E-mail, client-server, planning and discussion databases have reached mission-stage on a world enterprise level. These network services must be strong and fault tolerant to fulfil business demands. It is essential that the underlying network infrastructure carrying voice, knowledge (data) and video technologies support this growing demand currently, and in the future.

The goal of this project is to provide an architecture strategy that will enable us to have an open interoperable network. The architecture will serve as a guideline that will permit reusability of technologies, economies of scale and support efficiencies.

 

 

1.1. Project Overview (Summary):

It is irrational considering today’s interconnected world to continue using the analog system of computing data considering the ever-increasing volumes of data generated every day. As this transition by companies, institutes, organizations etc. have led to an enormous rise in the importance and requirement for networking and database management.

 

1.2. Project Objectives:

Providing a medium for securing data, safe communication and data transmission are the main objectives of our project.

The Network design and topology is chosen to ensure effective use of the network, as one of the objectives, we have to teach the clients how to use the software and make it as easy as possible for them to use. As we know now technology is a big part of every business and even for every single person alive so we must keep our important data and messages secure as much as we can.

2.1.           Integration

2.1.1.     Scope

2.1.1.1.          Scope definition:

Our requirement for this project is to implement a local area network connection in the HR department, link the network to a server in a remote location, and in addition a database management system.

2.1.1.2.          Scope Statement:

The company needs to implement a local area network for the HR department of the Eastern Mediterranean University water service. This is aimed at upgrading their activities from the old analog system where everything was on paper to a computerized digital system, which would include connecting them to an ISP and a server through the data center.

so we need a database with storage and external storage as a to protect data so that if anything happens, data would not be lost.

We also need to install a database management system on all the computers and teach the staff how to use this software.

Network diagram:

The diagram must be drawing with detail information

Figure 1: network diagram

2.1.1.3.          PROJECT CHARTER

1. General Project Information

The Project Name:

Computer networking of the HR department.

Sponsors

Eastern Mediterranean University  – Ministry of Education of TRNC

Impact of the project:

2. Project Team

Name

Department

Telephone

E-mail

Project Manager:

Aliyu Mubarak

Computer Engineering

05338765235

 Aliyu@emu.edu.tr

Teams Manager

David Benjamin

I.C.T.

05423486753

 David@emu.edu.tr

Configuration Team

Venessa Wisely

I.T

05334646872

 Venessa@outlook.com

 

Ozcem Can

I.T

05338674890

Fittings Team

Mathew Joseph

Hardware networking

05336790432

 athew@gmail.com.uk

Rick Stevens

Hardware networking

05334985204

 Stevens@yahoo.com

Turgut Hussein

Hardware networking

05424856209

 Turgut@yahoo.com.uk

3. Stakeholders (e.g., those with significant interest or who will be significantly affected by this project)

Eastern Mediterranean University

HR department Employees.

4. Project Scope Statement

Project Purpose / Business Justification

To enable the staff to carry out their daily task more easily with computers.

Objectives

To increase the quality of the data collection for the students and the managers.

Deliverables

Computers

Database

External Storage

Network Connection

Internet Connection

Operating System (Windows)

Visual Basic Contain:

Visual Studio 2016

Ms. Access

Ms. Sqlserver

Meeting hours

Detailed weekly reports

Demonstrations

The contracts

Scope

This project will be addressed to the managers of the transportation unit of E.M.U. and the students

It will not address the civil society.

Project Milestones

The starting date is 7th December 2018. The ending date is 4th February 2019. The duration is for two months

Major Known Risks (including important Assumptions) Identify obstacles which may cause the project to fail. 

Risk

Risk Rating (Hi, Med, Lo)

Delay in shipment

Lo

network problems

Lo

Constraints

There are no constraints since there is a legal agreement between the companies and the project managers, they have to hand the things just in time agreed with the Gantt chart. The personal numbers depend on the companies and their working manners

The schedule is done regarding extra time in case of any delays.

External Dependencies

There will be four teams working at the same time and the process will be reported to the team’s manager weekly. It is added to the contract as well. Everyone involved has agreed to this interaction

5. Communication Strategy

Everybody ( Stakeholders – project managers- teams manager- team leaders )  once at the beginning, once at the end of the project

Project managers to the stakeholders  once in two weeks

Project managers to the team managers  once a week

The team managers to the team leaders twice a week

All the reports are submitted weekly. There will be more meetings if needed.

6. Sign-off

Name

Signature

Date

(DD/MM/YYYY)

Sponsors

 

 

 

 

Project Managers

 

 

 

 

 

 

Teams Manager

 

 

Electron Representative

 

 

Anew Access Representative

 

 

7. Notes

Everyone involved in the project is obligated to follow up the steps and requirements, work responsibly, professionally, carry out their duties and take action when needed.

2.2.           Communication

The communication will be conducted in four different kinds of meetings:

Stakeholders, project managers, team managers and team leaders (at the beginning and the end)

Project managers, team managers (once a week)

Project managers, stakeholders (once in 2 weeks)

Team managers and team leaders (twice a week)

3.        Planning

3.1.           Integration

 

3.2.            Work Breakdown Structure (WBS)

Since the products and the steps will be conducted specifically by the companies, the WBS will be depending on their working arrangement and ways. The company is qualified and professional. They have contributed to several similar projects in the past. Therefore we assume they will use the analogy approach, which is adapting the project from the previous similar projects.

 

3.3.           Scope

The devices will be bought from a company called ‘’ Electron Ltd.’’ and implemented by them. The company is a major distributor and reseller of popular computer and networking brands. The network configurations will be implemented by members of the configuration team. There will be a legal agreement between the project managers and the companies so that they will keep on the track within our Gantt chart. Within each meeting, the reports and the documents will be collected and filed.

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3.4.           Time

As an overall project, it will take approximately one month to finish everything from ordering the devices to connecting and implementing the network configurations. The estimated time is more than the real amount of time needed in case any problems come up and the teams need extra time. If the project is completed earlier than expected, the usage and upgrade will be demonstrated to the staff and they will be asked to fill out a questionnaire for better adjustments.

GANTT CHART

3.5.           Cost

A market survey was carried out and the estimated prices of devices and services needed were found and are tabulated as follow: In addition to the cost of the devices, we will pay ‘’E.M.U IT Department technical Staff’’ 2.000 Lira for the network configurations and 500 Lira yearly for the maintenance. The total cost will be 40,780 Lira for the whole deliverables

Procurement

Quantity

Total

Uninterrupted power supply system 

10

4090 TL

Networking Equipment (Toolbox)

3

920 TL

Computer repair (diagnosis software)

2

300 TL

Computers Intel Dual Core Processors 

10

10,600 TL

Hp Color Printer 

1

2 578 TL

Black and White Laser Printer 

1

950 TL

Networking X 20 points cables (100m)

2 500 TL

Network configuration 

2000 TL

Cisco 24 Port Switch or appropriate 

1

1,170 TL 

Server 

1

4,555 TL

Fixtures and fittings 

11 117 TL

Total 

40,780 TL

3.6.           Quality

The most important point we must focus on in quality is effective interconnectivity of the computers, computerized data management and security.

So the main points in quality:

• Connectivity

• Security

• Effective communication between HR. department and server

• Database size depends on how large the data should be

So we must ensure that the devices supplied are of high quality and compatible models, also the companies that we contracted with are professionals in their areas with global standards certifications.

3.7.           Human resources

A team manager and two teams are needed for this project. The team manager is supposed to take reports from each team leader in the meetings and deliver them to the project manager within their meetings. The first team is in charge of fixtures and fittings of the computers and network ports. The second group is to implement the network configurations for the network and devices. Each team must have a team leader, who will keep communicating with the team manager. It will be contracted within the agreements to prevent the delays and misunderstandings.

3.8.           Communication

3.8.1.    Hierarchy of communication

 

 

Stakeholders, project manager, team manager, and team leaders; will have a meeting at the beginning with the companies directly involved in procurement and also at the end of the project.

Project manager and stakeholders; will have a meeting once in 2 weeks until the end of the project. the objective of this meeting is to give update and reports to the stakeholders to keep them informed and up to date on the progress of the project.

Project manager and team manager; once every week until throughout the duration of the project to discuss the progress updates and brainstorm how to overcome difficulties or challenges in the project.

Team manager and team leaders; will meet twice a week until the end of the project to ensure an effective interoperation of the teams.

3.9.           Risk

The HR Department staff might not be willing or open to the idea of using computers to carry out their daily task as they are not familiar with the computerized system, as such, we will provide training for them to introduce them to the new system and as well as enlighten them on the advantages as well as how it can make their work easier.

3.10.       Procurement

There will be a legal agreement and contract between the project manager and the companies involved. They will be paid half the total amount at the beginning, and the rest when they deliver the products. In addition to delivery, they are also responsible for fixtures and fitting and will be paid duly as agreed.

4.1.           Integration

We need to ensure that all the devices when networked are functioning properly, we also need to ensure that there is communication between the HR department and the server and security in transmission should be ensured.

We also need to make sure we plan for redundancies like an expansion of the network that may arise in the future if there is a need.

4.2.           Quality

We have investigated and ensured that the products are authentic, the companies are qualified and certified and certified staff who are professionals in their jobs.

4.3.           Communication

group meetings where reports, Information to stakeholders will be given will be conducted. Phone or video calls may also be used if required.

4.4.           Procurement

Selection of the seller is done according to the recommendation and favorable price. The best offers are from the company ‘’Electron’’ for the computer devices and in addition 30% discount for fittings and fixtures if we purchase the devices from them, and lastly, network configurations from the E.M.U. IT Department.

5.1.           Integration

The project manager ensures that the project work meets the performance objectives of the project by keeping an eye on the team members with effective communication.

The time scheduled for the project are effectively controlled as the project manager meets with the team manager face-to-face and also via phone calls to know how the work is going and then, the project manager reports to the stakeholders about the progress of the work.

5.2.           Cost

The first payment will be done via a bank transaction so that there will be legal documentation and receipts for the payment. All payments will never be made by hand, and the transaction records will be filed. The cost of the contract will not undergo any change once it is signed by both parties.

5.3.           Quality

The team leader will check the product qualities and the teams of the companies are obligated to submit the projects completed in time perfectly. The companies have standardized quality and they are qualified. There will be no problem with the quality of the devices. However, the project manager will keep track of the project using the Gantt chart and weekly detailed reports. Controlling teams and submitting reports are the jobs of the team manager. He is obligated to submit the reports and possible delays that may occur weekly so that the adjustments can be made in time to complete and submit the project on time.

6.        Closing

6.1.           Integration

Here we have to finalize all the project activities done in order to formally close the project. After finalizing the project activities, we have to proceed to formally close the project in order to continue with other future engagement.

Close project

This is the last thing we have to do in the life cycle of this project. We are going to close the project and officially report the success of the project to the Eastern Mediterranean University and after that, we have to hand over the work assigned to us to them and then cancel the supplier’s contracts, and officially inform the stakeholders of the closure of the project.

Formal acceptance

The Eastern Mediterranean University (E.MU.) have to accept the project, review it and check if they are satisfied with the work done then after that the can accept it.

Lesson learned

From the beginning to the end of the project, we make sure that in the project, every encounter and how we were able to resolve them was documented. After we checked whether we met the objective, reviewing whether the customer was satisfied, were we able to meet the time schedule for the project, did we complete the project within the cost estimated for it, did the quality meet the standard and was the risk identified and how appropriately did we mitigate it. At the end of this review, as a good manager, we were able to meet everything stated from the beginning to the end of the project and our customer was satisfied with our work.

Project archive

As soon we closed our project, we make sure that the project document is archived, thereby putting them in our historical records.

6.2.           Procurement

Closing procurement

Contract file

The project managers ensure that the completion and settlement of contracts and resolution of the contracts are put in order. The project managers should finalize the archival of all data related to how the contract was administered and how the seller performed for future contract work with the seller. 

Lesson learned

The project manager needs to know whether the right type of contract was used, how effective were risk mitigation strategies. Did the buyer and seller assign the right human resources?

Sign off documents

Products are submitted to the university. The contact information is provided for the upcoming maintenance for the network devices. All the documents are signed off. The documents are filed.

7.        Summary

It is a necessity to have a computerized system of data management because of the relevance and importance of security on university information. There are many instances where data and important information is lost due to unforeseen conditions like (fire outbreak, flood or due to difficulty in handling numerous files). This implementation will improve the quality of the service of the HR department and also make their work easier. The estimated time and the budget is perfect which is another plus of this project.

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