Project Management: Cost Estimation, Communication Plan, and Responsibility Assignment Matrix

This article covers cost estimation, communication plan, and responsibility assignment matrix in project management for carpooling application development. It includes insights into stakeholder communication requirements, communication guidelines, escalation procedures, and revision procedures.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student:
Name of the University:

1PROJECT MANAGEMENT
1. Cost estimation
The total cost estimation for the development of carpooling application is $10,098.
The estimation of cost is based on the project activities which are listed in the below
table. The hourly rate of both internal as well as external labour is determined by the
project manager with an assumptions of total internal and external labour. The cost is
based on the actual hour worked by the team members.
Parametric cost estimation is used to estimate the project cost, uses of relations among
the variables for calculation of project cost. In this plan, parametric estimate is being used
to determine by identification of labour and per hour cost for each labour required for the
project plan. Below table shows the total cost estimation for the development of
carpooling application such as:
Task name Interna
l
labour
$/hr Interna
l total
Externa
l labour
$/hr Externa
l
Total
labour
Total cost
Drawing a
sketch of the
application
25 $
35.0
0
$
875.00
- - $
875.00
$
875.00
Search for
platform to
make the
application
35 $
50.0
0
$
1,750.0
0
- - $
1,750.0
0
$
1,750.00
Application
development
platform
32 $
40.0
0
$
1,280.0
0
- - $
1,280.0
0
$
1,280.00
Social media
integration
35 $
35.0
0
$
1,225.0
0
15 $
30.0
0
$
450.00
$
1,675.0
0
$
1,675.00
App
customizatio
n
50 $
30.0
0
$
1,500.0
0
- - $
1,500.0
0
$
1,500.00
Server
backup
30 $
50.0
0
$
1,500.0
0
20 $
30.0
0
$
600.00
$
2,100.0
0
$
2,100.00
Subtotal $
9,180.00
Reserves 918
Total 207 $
8,130.0
0
$
9,180.0
0
$
10,098.00

2PROJECT MANAGEMENT
Initial cost benefit analysis is listed as:
Discount Rate Used 5.00%
Annual Benefits $
12,000.00
Annual Operational Costs $
7,800.00
One-Time Development
Cost
$
7,000.00
Year of Project
0 1 2 3 4 5 TOTALS
Economic Benefit $0.00 $
12,000.00
$
12,000.00
$
12,000.00
$
12,000.00
$
12,000.00
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Benefits $0.00 $11,428.57 $10,884.35 $10,366.05 $9,872.43 $9,402.31
NPV of all BENEFITS $0.00 $
11,428.57
$
22,312.93
$
32,678.98
$
42,551.41
$
51,953.72
$
51,953.72
One-Time COSTS $
(7,000.00)
Recurring Costs $0.00 $
(7,800.00)
$
(7,800.00)
$
(7,800.00)
$
(7,800.00)
$
(7,800.00)
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Recurring Costs $0.00 $
(7,428.57)
$
(7,074.83)
$
(6,737.93)
$
(6,417.08)
$
(6,111.50)
NPV of all COSTS $
(7,000.00)
$
(14,428.57)
$
(21,503.40)
$
(28,241.33)
$
(34,658.41)
$
(40,769.92)
$
(40,769.92)
Overall NPV $
11,183.80
Overall ROI 0.2743

3PROJECT MANAGEMENT
2. Communication plan for carpooling application
development
2.1 Stakeholder communication requirements
In order to get success into the development of carpooling application, both internal
and external stakeholders are required. Communication is required among the project
team members to maximise the chances of project success and prevention of project
scope creep. The project suppliers are required of communication plan while in case of
application development and marketing, the stakeholders are required to interact with the
project manager. It is required when there is any change into the project plan and design
of carpooling application, then through the communication channels they can discussed
the possible changes for better project success.
2.2 Communications summary
In following table, the communication summary is provided for the list of
stakeholders. The project team members follow of proper guidelines and communication
medium for effective communication.
Stakeholders Information Method of
communication
Sender Frequency of
communication
Project sponsor Project plan
documents
Email, shared
drive
Project team Monthly
Project team
member
Project status
report
Email and
presentation
Project
Manager
Weekly
Project
suppliers
Product
delivery report
Email, phone Project
Manager
Weekly
Project
Manager
Project design
changes
Email and
presentation
Project team Monthly
External
stakeholders
Request for
review
Phone, email
and hard copy
Project
Manager
Monthly

4PROJECT MANAGEMENT
2.3 Communication guidelines
 Short weekly meetings are required for making effective communication
among the project team members.
 Project communication template is used in case of written communication
among the project stakeholders.
 Proper email headings should be used when email is used as the
communication channel to interact with the project team.
 Checklists are used at the time of reviewing the product requirements and
conduct of interviews with the customers.
 The meeting minutes are prepared in 24 hours of the project meetings
conducted.
2.4 Escalation procedures for resolving issues
The issues among the project team members are resolved at lowest possible level. If
the issues are not resolved on time, then a communication with the supervisor is required
to prevent from the project conflicts. When the project issues are becoming more critical,
then it is taken to the project manager for resolving it.
2.5 Revision procedures for this document
The revision of project document is done by the project manager. At top of the project
document, the revision version, number and date is marked.
3.0 Project management framework
3.1 Responsibility assignment matrix- RACI matrix
The responsibility assignment matrix (RAM) is used for the carpooling app
development and RACI matrix is shown below table. The project team members have various
roles into the project.
R: Responsible
A: Accountable
C: Consulted
I : Informed

5PROJECT MANAGEMENT

6PROJECT MANAGEMENT
Roles VP of
Operation
VP of
Marketing
Risk
Manager
Project
Sponsor
IS
Project
Manager
Customer
s
Supplier IT
Department
Employees
Monitoring the features of
carpooling application
R - C I R - - - -
Implementation of app R A I R R - - - -
Analyse the market C R C I - - - I I
Identification of threats
into the market
- C R - R R - - -
Analysing the risks - - R C I R I C I
Collection of project funds - - I R I R - - -
Execution of the project C - - - R R - I I
Delivering the constraints-
scope, time and budget
I I I R R - C I I
Consume the products and
services
- - - R C R R C I
Provide analytic package R I R - - - R - -
Establish the application R - R - - - - R -
Accomplish of operational
activities
R A C - I R I C R
Development of
application
R - R I C - R I R
Testing R - - C I - R A -

7PROJECT MANAGEMENT
Bibliography
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Assessment of Transportation Cost Estimation and Cost Management Workforce Educational
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scheduling, and controlling. John Wiley & Sons.
Larson, E.W. and Gray, C.F., 2015. A Guide to the Project Management Body of Knowledge:
PMBOK (®) Guide. Project Management Institute.
Trendowicz, A. and Jeffery, R., 2014. Software project effort estimation. Foundations and
Best Practice Guidelines for Success, Constructive Cost Model–COCOMO pags, pp.277-293.