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Assessment 1 Instructions: Budget Analysis and Cost Estimating… image of image of Tut a Is Thomastlens% ot,t FACULTY COACH
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Assessment 1 Instructions: Budget Analysis and Cost Estimating
Create a budget analysis report of the current failed project and a project estimation report for the turnaround project.
This portfolio work project, a budget analysis and cost estimating artifact, is based on your selected business or IT project. You may choose to base your assessment on the Revive LLC case study for the development of a new online employee orientation module, or you may select a company/scenario of your own choosing. Both human resources and information technology employees, as well as contractors, will be used in this project.
Cost management is defined as “primarily concerned with the cost of the resources needed to complete the project activities” . Also, consideration needs to be taken with respect to project costs and stakeholder differences. Financial performance techniques provide both internal and external measurement capabilities that allow for decision making, financial analysis, and mitigation strategies.
Effective cost management involves establishing a cost baseline for measuring project performance. Establishing the project baseline is like establishing a point of reference. Whatever that point of reference, it will become the baseline against which project performance will be measured. This cost baseline becomes the basis for more advanced techniques, such as earned value management
Project cost management includes planning for the resources needed: the people, equipment, and materials. With the use of proven estimating techniques, an estimate is presented to the project sponsor and management for approval. Upon approval, the cost estimate becomes the official budget for the project. As the project goes through the normal project lifecycle, cost control techniques track and monitor the budget, which allow you to make sure you will not incur a budget overrun.
Reference
Project Management Institute. Guide to the Project Management Body of Knowledge — Sixth Edition and Agile Practice Guide. Newtown Square. PA. 2017. Authentic Experience Project Components You will do what is necessary to have the project succeed this time around. Using the Project Revive LLC Scenario or a project of your choosing, you will:
• Assess the failed project by examining the cost estimation process.
• Analyze the existing project work breakdown structure
• Create a new WBS.
Using the original WBS:
• Break down the activities and tasks further into smaller work packages that will not exceed 80 hours of work.
• You may also add new activities and tasks that you think are needed to successfully complete the project.
• You will use Microsoft Project as the project management software tool to create the new WBS in tabular form.