Project Cost Assessment and Management Plan for Desklib

BSBPMG514_AE_Pro_2of2 - Project Cost
Assessment

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
1. Determine the resource requirement for the project...........................................................3
2. Cost estimations and budget preparation for project within agreed tolerances.................3
3. Presenting the process to develop a cost management plan...............................................4
TASK 2............................................................................................................................................5
1. Processes or procedures in financial-management to monitor actual project expenditure
against project budget.............................................................................................................5
2. Cost analysis tools and methods for identifying cost variations & evaluating alternative
actions.....................................................................................................................................6
3. Describing how PM provides accurate and timely reporting to stakeholders....................7
TASK 3............................................................................................................................................8
3.1 Conducting appropriate activities to signify the financial completion.............................8
3.2 Effectiveness of project cost management.......................................................................8
3.3 Review the cost-management issues and document improvements for future projects...9
REFERENCES..............................................................................................................................11

TASK 1
1. Determine the resource requirement for the project
In the WBS, there are some resources required for the project that assists the project
manager to meet the defined aim of the project. Along with this, the list of necessary resources
identified in WBS for the project are as mentioned below:
 Human resource: In this, project manager requires designers and as per the defined aim,
it has been identified that it requires 200 hours of working with an hourly rate of $60.
This in turn assists to meet the defined aim of the project and the input from stakeholders
shows that PM consults with entire team for selecting the designers for 200 hours
(Demirkesen and Ozorhon, 2017). It is considered as a short term contract which helps to
meet the requirement of project.
 Technology resource: Project manager require 6 users due to license for software in
order to establish the project in an effective manner. The cost per user identified as $300
and the costing estimation is $1800. Thus, input from stakeholders reflected that Project
manager consult with IT manager for hiring the users as per the software requirement and
determine the integration issues for further improvements as well.
2. Cost estimations and budget preparation for project within agreed tolerances
Deliverable (or
work package)
Resou
rces Particulars
Estimated
costing
(calculations)
Agreed tolerances
(+ or - %) and / or $
Huma
n
Desig
ners
Design time – 200 hours
(cost per hour - @ $60) $12000 + / - 10%
testers
Testing time – 100 hours
(cost per hour - @$40) $4000 + / - 2%
Work package 1
– Estimated

cost is $35800
Equip
ment
Lapto
ps (to
be
used
by
design
ers
and
testers
)
Number of laptops – 6
(cost per laptop - @
$3000) $18000 + / - 1%
Techn
ology
(IT)
Licenc
e for
softwa
re
Number of users – 6
(Fees per licence - @
$300) $1800 + / - 0%
$35800
3. Presenting the process to develop a cost management plan
The process of cost management plan is as mentioned below: Project manager reviews: The reviews have collected by project manager through project
charter especially through scope in order to determine the actual performance. Apart from
this, the time balance i.e. WBS is used that helps to examine the actual performance and
time taken to complete the same (Picciotto, 2020). PM consult with stakeholders: All the stakeholders are involved within a project in order
to ensure that which resources and cost is required to complete the project. In this, Project
manager discuss the same with procurement team, vendors (suppliers) and then with
finance team to explain the cost requirement.