Assignment on Resource Planning

Added on - 28 May 2020

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Running Head: Resource Planning
Resource Planning1ACTIVITY 1What are resources? Describe the resources that should be considered whendetermining resource requirement?While undertaking a project, different resources are required to be utilised to carry each tasknecessary to complete the project. There can be a wide range of required resources such aslabour, infrastructures, hardware etc. to reach at the finish point of the project venture. Theabsence of any of the important resource can hamper the project’s work flow. Anythingwhich a firm requires to ensure the viability of its operations and for the successfulaccomplishment of its goals and objectives, can be termed as resource. Both storable as wellas non-storable resources can be utilised in the project. There are certain resources that aregenerally utilised for every project such as money, stock, vehicles etc. however someresources are used in the particular projects depending upon their nature and use.To determine the resource requirement for a project, following points must be taken intoaccount:The business type for which the resources are required (service unit or manufacturing unit orsales unit)The intended users of the resources (i.e. their level of education, competencies, culturalbackground etc.)The business size (small, medium or large) and the scope of its operations (local orinternational).The geographical location of the business (i.e. regional, rural or urban area).The ultimate requirement of resource requirement is dictated by the firm itself which isintended to undertake the project depending upon its goals and objectives.ACTIVITY 2
Resource Planning2Calculate which of the following suppliers is the most cost-effective:a)Safe Hands Insurance Company has received a number of quotations for theirnew AIS. Calculate how much each system will cost per year and determinewhich of the quotes is most cost-effective.Access IT Company has provided a quote of $84,000. The system will last forseven years. They provide free services and maintenance. They offer technicalsupport for an additional cost of $6,000 a year. All the required hardware hasbeen included in the cost of the quote.The details of the services provided by the AIS and the quotations offered by the softwareprovided are given below:Cost of AIS is $ 84000 and the useful life will be 7 years.Therefore, the cost can be evenly distributed to these 7 years.Cost per year would be $12000.No additional charges for after sale services and maintenance.The provider will charge a fees of $6000 per year to provide the technical support.Thus, the yearly cost per system will be $ 18000 ($12000+$6000).b)Vision IT Technical Consultants has provided a quote of $105,000. The systemwill last for 10 years. Their quote includes technical support. The quoteincludes all the required hardware; however, the hardware must be checkedand serviced by them, twice a year at a cost of $500 per service.Quote offered by Vision IT consultants is detailed below:Total quote= $ 105000
Resource Planning3Useful life= 10 yearsCost distribution per year= $ 10500Technical support fees= NilHardware cost= Already included.Maintenance and Service Charges= $ 1000 per year.Total cost per year= $ 11500.c)Total IT Solutions has provided a quote of $65,000. The system will last forfive years. The cost of technical support, services and maintenance are includedin the price. The hardware required will cost an additional $22,500.Total quote= $ 65000Useful life= 5 yearsCost distribution per year= $ 13000Technical support fees= NilHardware cost= Already included.Maintenance and Service Charges= NilTotal Hardware cost (extra) = $22500Per year allocation of Hardware cost = $4500Total cost per year= $ 17500
Resource Planning4From the above calculations it is quite clear that Total IT Solutions is quoting highest andtherefore purchasing of AIS from it will prove to be expensive in comparison to otherproviders.Hence, purchasing of AIS Vision IT Technical Consultants will be cost effective as its quoteis lowest and also its software will serve the company for a longer term i.e. 10 years.ACTIVITY 3:a.Why is it necessary to determine and confirm scope and nature of budgetaryplanning activity with relevant colleagues?It is quite necessary to confirm the scope and the nature, as well, of the budgetary planningactivities of the project with all the significant partners working on that particular ventureproject so as to identify all the necessary areas where funds and other resources will berequired. While preparing the financial plans, it is necessary to involve the colleagues as thereare various factors that can affect the spending arrangements. Such as:The changes in the monetary framework.Development of new directions.Movement of market patterns.Extent of project venture.Human resource necessity.The above mentioned factors can directly or indirectly influence the firm’s representatives.Any change in the budgetary plans or the projections may require to train and monitor theexecutives working on the project. The proper communication of all the budgetary activitiesand plans will not only help them to be aware of the desired performance and objectives but
Resource Planning5also it will practically enable them to perform effectively and efficiently. Moreover, suchinvolvement of all the colleagues will generate the confidence among them when their ideasand thoughts will be entertained in the overall project development. This will ultimatelycontribute positively to the project growth.b)What is the importance of cash flow budget or report?Cash flow budget is an important tool that can is used in project planning. It allows the firmto manage it cash flows in the most efficient manner. Both cash budgets and reports allowsthe firm to make sound and informed economic decisions with the use of relevant andnecessary information provided in these budgetary plans and reports. It also helps themanagers in evaluating its overall performance of the business. The report can offer thereview of the functioning of the entity. These reports and budgets helps the businessmanagers in formulating the necessary strategies and policies for the successful conduct ofthe business. These budgets enables the managers to assess the availability of resources withthe business and the key areas whether they must be distributed to generate the desiredresults. Therefore, these reports provides the strategic direction and platform to the business.c)Describe the process through which you would go to determine whetherfinancial support is available to allow the requirements of an organizationto be achieved?An approximation of cost of a project or unit is called its cost estimation. Theperson who prepares the cost estimates is referred to as the cost estimators. The costestimation process decides the value of the assets that are used in the project. Therecan be various cost estimators such as building cost estimator, electric costestimator. The process of estimation of cost involves making judgements andguesses. This estimated cost is used to conclude the extended exercises. The processemphasises on determining the ideal cost of the projects by aggregating the
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