Project Management: National Archives of Australia

This document provides a project budget and work breakdown structure for the National Archives of Australia website upgradation project. It also includes a cost management plan and details budget performance report.

PROJECT MANAGEMENT
Project Management: National Archives of Australia
Student Name:
University Name:

1PROJECT MANAGEMENT
Table of Contents
Part 1................................................................................................................................................2
1. Project budget for the entire project scope and Work Breakdown Structure (WBS)..................2
1.1 Budgetary assumptions for the National Archives of Australia............................................2
2. Cost Management plan for National Archives of Australia website upgradation project...........3
2.1 Control thresholds..................................................................................................................3
2.2 Rules of performance measurement......................................................................................4
Part 2................................................................................................................................................6
1.1 Cost analysis methods and tools for demonstrating the cost variation which occurred in the
project..........................................................................................................................................6
1.2 Details budget performance report showing variance against the baseline budget...............6
3. Provide evidence of re-planning to bring project back to original budget..................................8
Part 3................................................................................................................................................9
3. 1 Describe in details a financial completion activity that needs to be undertaken..................9
3.2 Review of the project performance in terms of cost management........................................9
3.3 List of all cost issues............................................................................................................10
References......................................................................................................................................11

2PROJECT MANAGEMENT
Part 1
1. Project budget for the entire project scope and Work Breakdown Structure
(WBS)
1.1 Budgetary assumptions for the National Archives of Australia
In order to assume the budget of National Archives’ website of Australia the assumptions
those are considered include:
 Finding for reliable knowledge regarding the subject that are making the possible
assumptions
 Keeping the numbers of assumptions to make the minimum
 Sharing the budget details with every project associates
 Validation of the assumptions
The budget details prepared for the specific project are as follows:
Task Name Duration Resource Names Cost
Website upgrade planning
schedule 121 days $70,244.00
Project initiation 44 days $30,156.00
Feasibility study 6 days finance manager $1,344.00
Project budget estimation 10 days Facility cost[1] $3,800.00
Resource identification 6 days Project manager $1,824.00
Analyzing the current
features of national archives’ 6 days
Cost assigned for
materials [1],Project
manager
$7,824.00
Developing project scope
statement 10 days equipment cost[1],Project
manager $7,540.00
Requirements gathering
and analysis
6 days Cost assigned for
materials [1],Project
$7,824.00

3PROJECT MANAGEMENT
manager
Project planning 31 days $19,440.00
Budgetary planning 5 days finance manager $1,120.00
Risk management plan 9 days Cost assigned for
materials [1] $6,000.00
Communication plan 8 days HR costing [1] $7,000.00
Contingency and
procurement planning 4 days Facility cost[1] $3,800.00
Considering proactive
security policy framework 5 days Project manager $1,520.00
Project design and
development 21 days $12,880.00
Considering feedback from
consumers and other users 5 days Project manager $1,520.00
Analysis of possible
changes those can be
incorporated
6 days Resource manager $1,200.00
Modification of the
prototype 8 days system designer $1,920.00
UML diagram presentation 8 days system developer $2,240.00
Connectivity with database 2 days Cost assigned for
materials [1] $6,000.00
Testing 19 days $4,256.00
Unit testing of the design 5 days system tester $1,120.00
Integrated design 6 days system tester $1,344.00
Acceptance design 8 days system tester $1,792.00
Project closure 6 days $3,512.00
Final draft of the modified
website 3 days Project manager $912.00
Post maintenance program
for National archives’
modified website
3 days service and statutory
cost[1] $2,600.00

4PROJECT MANAGEMENT
Website upgrade
planning schedule
Project initiation
Feasibility study
Project budget
estimation
Resource
identification
Analyzing the
current features of
national archives’
Developing project
scope statement
Requirements
gathering and
analysis
Project planning
Budgetary planning
Risk management
plan
Communication plan
Contingency and
procurement
planning
Considering
proactive security
policy framework
Project design and
development
Considering
feedback from
consumers and
other users
Analysis of possible
changes those can
be incorporated
Modification of the
prototype
UML diagram
presentation
Connectivity with
database
Testing
Unit testing of the
design
Integrated design
Acceptance design
Project closure
Final draft of the
modified website
Post maintenance
program for National
archives’ modified
website
Figure 1: WBS for the Website upgrading project
(Source: created by author)

PROJECT MANAGEMENT 3
2. Cost Management plan for National Archives of Australia website
upgradation project
2.1 Control thresholds
In order to design and evaluate the project the project manager is required to assign an
upper limit and a lower cost limit also. This approach may be utilized for defining the acceptable
cost limits or project management expenditure. For indicating maximum rate of time within
which the actions or processes will take place are measured with the help of control threshold.
The net budget assumed for the project is $70,000.00. Therefore, the project fiance manager is
responsible to make sure that the net cost is not exceeding the actual estimated budget.
Factors Units of
measures
Level of
precision
Level of
accuracy
Responsibilities
Material cost 2 High High The facility manager and project
manager are responsible to measure
the cost of materials.
Facility costing 1 High Moderate In order to facilitate the project
progress the finance manager are
responsible
Service and
maintenance
cost
3 Moderate High The system designer, developers
should take the responsibilities of
system and service maintenance
Design and 1 Low Moderate It is the responsibility of system

PROJECT MANAGEMENT 4
development
cost
designer and developers to assume
the needful budget and cost
Cost for
modification
2 Extreme High The project manager’s
responsibility is to assign the
modification making costs
2.2 Rules of performance measurement
In order to measure the performance of the project manager and project team members
the rules those are to be followed include the following:
 Clear understanding regarding the actual requirements, objectives and goals of the
project
 Separating activities to be done using critical thinking
 Watch out for them that are focus on information
 Elimination of the potential risks
 Focus on the actions
2.3 Reporting formats
Different types of reporting formats are there and the project manager for this specific
project must use the most suitable reporting approach. The timely progress and status of the
project will be shown in the reports. The format must be used for this project are as follows:
 Project status report
 Project summary
 Letters or MOUs

PROJECT MANAGEMENT 5
 Memos
2.4 Process description
The cost management plan developed for the website upgrading project must include the
objectives, measures, methods, targets, risks, its effect, the cause and process stages as well.
Initially the physical resources required for the project must be identified including the other
process constraints. After that, these processes should be reviewed accordingly followed by
performance review, improvement review and effectiveness review.
2.5 Organizational chart of the account links
The links between the employees working in costing department of Nationals’ Archives’ are
shows in the below diagram:
Figure 2: Organizational chart of National Archives’
(Source: Created by author)
Project
manager
Finance head
Credit
controller
Cost
accountant
Auudit
manager
financial
accountant

PROJECT MANAGEMENT 6
Part 2
1.1 Cost analysis methods and tools for demonstrating the cost variation which
occurred in the project
There are different cost analysis methods and tools available in the market such and the
finance manager is required to select and apply the most suitable method and tool for managing
the project. The cost analysis method applied for this project is Return on Investment (ROI).
Some of the tools and techniques used by professional project managers while
implementing the project are expert’s judgment, analogous estimation, parametric estimation,
bottom up estimation, reserve analysis and three point estimation.
Both Bottom up and Top down cost benefit analysis approaches are used by the project
managers to develop the cost management plan. The cost benefit analysis (CBA) is a method
used to access the effects of projects and policies for social welfare. It also helps to take easy
decision making from the business perspectives. Most of the companies use Top down CBA to
support all participative environmental planning. The tools and techniques those are widely used
for managing the cost details of the project are parametric modeling, engineering estimation etc.
1.2 Details budget performance report showing variance against the baseline budget
Task Name Duration Start Finish Cost
Actual
Cost Variance
Website upgrade
planning schedule 121 days
Tue
2/12/19
Tue
7/30/19 $70,244.00 $30,380.00 $39,864.00
Project initiation 44 days
Tue
2/12/19
Fri
4/12/19 $30,156.00 $30,156.00 $0.00
Feasibility study 6 days
Tue
2/12/19
Tue
2/19/19 $1,344.00 $1,344.00 $0.00
Project budget
estimation 10 days
Wed
2/20/19
Tue
3/5/19 $3,800.00 $3,800.00 $0.00

PROJECT MANAGEMENT 7
Resource
identification 6 days
Wed
3/6/19
Wed
3/13/19 $1,824.00 $1,824.00 $0.00
Analyzing the
current features of
national archives’ 6 days
Thu
3/14/19
Thu
3/21/19 $7,824.00 $7,824.00 $0.00
Developing project
scope statement 10 days
Fri
3/22/19
Thu
4/4/19 $7,540.00 $7,540.00 $0.00
Requirements
gathering and analysis 6 days
Fri
4/5/19
Fri
4/12/19 $7,824.00 $7,824.00 $0.00
Project planning 31 days
Mon
4/15/19
Mon
5/27/19 $19,440.00 $224.00 $19,216.00
Budgetary
planning 5 days
Mon
4/15/19
Fri
4/19/19 $1,120.00 $224.00 $896.00
Risk management
plan 9 days
Mon
4/22/19
Thu
5/2/19 $6,000.00 $0.00 $6,000.00
Communication
plan 8 days
Fri
5/3/19
Tue
5/14/19 $7,000.00 $0.00 $7,000.00
Contingency and
procurement planning 4 days
Wed
5/15/19
Mon
5/20/19 $3,800.00 $0.00 $3,800.00
Considering
proactive security
policy framework 5 days
Tue
5/21/19
Mon
5/27/19 $1,520.00 $0.00 $1,520.00
Project design and
development 21 days
Tue
5/28/19
Tue
6/25/19 $12,880.00 $0.00 $12,880.00
Considering
feedback from
consumers and other
users 5 days
Tue
5/28/19
Mon
6/3/19 $1,520.00 $0.00 $1,520.00
Analysis of
possible changes those
can be incorporated 6 days
Tue
6/4/19
Tue
6/11/19 $1,200.00 $0.00 $1,200.00
Modification of the
prototype 8 days
Wed
6/12/19
Fri
6/21/19 $1,920.00 $0.00 $1,920.00
UML diagram
presentation 8 days
Wed
6/12/19
Fri
6/21/19 $2,240.00 $0.00 $2,240.00
Connectivity with
database 2 days
Mon
6/24/19
Tue
6/25/19 $6,000.00 $0.00 $6,000.00
Testing 19 days
Wed
6/26/19
Mon
7/22/19 $4,256.00 $0.00 $4,256.00
Unit testing of the
design 5 days
Wed
6/26/19
Tue
7/2/19 $1,120.00 $0.00 $1,120.00
Integrated design 6 days
Wed
7/3/19
Wed
7/10/19 $1,344.00 $0.00 $1,344.00
Acceptance design 8 days
Thu
7/11/19
Mon
7/22/19 $1,792.00 $0.00 $1,792.00

PROJECT MANAGEMENT 8
Project closure 6 days
Tue
7/23/19
Tue
7/30/19 $3,512.00 $0.00 $3,512.00
Final draft of the
modified website 3 days
Tue
7/23/19
Thu
7/25/19 $912.00 $0.00 $912.00
Post maintenance
program for National
archives’ modified
website 3 days
Fri
7/26/19
Tue
7/30/19 $2,600.00 $0.00 $2,600.00
Figure 3: Cost variance for the project
(Source: created by author)

PROJECT MANAGEMENT 9
3. Provide evidence of re-planning to bring project back to original budget
If the project budget exceeds the actual budget or in other hand if any difference is
identified between the actual cost and planned cost then, in order to bring back the schedule the
project must be re planned by the project manager. The baseline cost for the project is $70,000
and the actual cost is not different from this estimation. With the re-planning of the budget the
rate of variance has also been changed and the re-plan details are detailed below:
Task Name Duration Start Finish Cost
Actual
Cost Variance
Website upgrade
planning schedule 121 days
Tue
2/12/19
Tue
7/30/19 $70,244.00 $68,510.67 $1,733.33
Project initiation 44 days
Tue
2/12/19
Fri
4/12/19 $30,156.00 $30,156.00 $0.00
Feasibility study 6 days
Tue
2/12/19
Tue
2/19/19 $1,344.00 $1,344.00 $0.00
Project budget
estimation 10 days
Wed
2/20/19
Tue
3/5/19 $3,800.00 $3,800.00 $0.00
Resource
identification 6 days
Wed
3/6/19
Wed
3/13/19 $1,824.00 $1,824.00 $0.00
Analyzing the
current features of
national archives’ 6 days
Thu
3/14/19
Thu
3/21/19 $7,824.00 $7,824.00 $0.00
Developing project
scope statement 10 days
Fri
3/22/19
Thu
4/4/19 $7,540.00 $7,540.00 $0.00
Requirements
gathering and analysis 6 days
Fri
4/5/19
Fri
4/12/19 $7,824.00 $7,824.00 $0.00
Project planning 31 days
Mon
4/15/19
Mon
5/27/19 $19,440.00 $19,440.00 $0.00
Budgetary planning 5 days
Mon
4/15/19
Fri
4/19/19 $1,120.00 $1,120.00 $0.00
Risk management
plan 9 days
Mon
4/22/19
Thu
5/2/19 $6,000.00 $6,000.00 $0.00
Communication
plan 8 days
Fri
5/3/19
Tue
5/14/19 $7,000.00 $7,000.00 $0.00
Contingency and
procurement planning 4 days
Wed
5/15/19
Mon
5/20/19 $3,800.00 $3,800.00 $0.00
Considering
proactive security
policy framework 5 days
Tue
5/21/19
Mon
5/27/19 $1,520.00 $1,520.00 $0.00

PROJECT MANAGEMENT 10
Project design and
development 21 days
Tue
5/28/19
Tue
6/25/19 $12,880.00 $12,880.00 $0.00
Considering
feedback from
consumers and other
users 5 days
Tue
5/28/19
Mon
6/3/19 $1,520.00 $1,520.00 $0.00
Analysis of possible
changes those can be
incorporated 6 days
Tue
6/4/19
Tue
6/11/19 $1,200.00 $1,200.00 $0.00
Modification of the
prototype 8 days
Wed
6/12/19
Fri
6/21/19 $1,920.00 $1,920.00 $0.00
UML diagram
presentation 8 days
Wed
6/12/19
Fri
6/21/19 $2,240.00 $2,240.00 $0.00
Connectivity with
database 2 days
Mon
6/24/19
Tue
6/25/19 $6,000.00 $6,000.00 $0.00
Testing 19 days
Wed
6/26/19
Mon
7/22/19 $4,256.00 $4,256.00 $0.00
Unit testing of the
design 5 days
Wed
6/26/19
Tue
7/2/19 $1,120.00 $1,120.00 $0.00
Integrated design 6 days
Wed
7/3/19
Wed
7/10/19 $1,344.00 $1,344.00 $0.00
Acceptance design 8 days
Thu
7/11/19
Mon
7/22/19 $1,792.00 $1,792.00 $0.00
Project closure 6 days
Tue
7/23/19
Tue
7/30/19 $3,512.00 $1,778.67 $1,733.33
Final draft of the
modified website 3 days
Tue
7/23/19
Thu
7/25/19 $912.00 $912.00 $0.00
Post maintenance
program for National
archives’ modified
website 3 days
Fri
7/26/19
Tue
7/30/19 $2,600.00 $866.67 $1,733.33
In this project the rate of variance is reduced and the final amount became $1,733.33
from $39,864.00. This is comparatively beneficial than the previous value.

PROJECT MANAGEMENT 11
Part 3
3. 1 Describe in details a financial completion activity that needs to be undertaken
In order to avoid overrunning cost and over allocation of budget the financial completion
activities that to be undertaken by the project manager include:
Selling and buying products and assets: The needful assets and products should buy and
sale properly as per the changing requirements of the website developers of National archives’.
Issuing proper stocks and bonds: The bonds and bonds should be issues professionally
by National archives.
Maintaining accounts: The accounts should be monitored and maintained accordingly.
3.2 Review of the project performance in terms of cost management
In order to review the project performance in terms of cost management the phase to be
considered and analyzed includes:
 Conducting a gap analysis
 Determining whether project goals and objectives are achieved or not
 Determining the project stakeholders and expected activities from their end
 Estimating project cost and benefits
 Identification of areas of cost management that needs further improvement and
management
 Identification of lesson learned
 Reporting findings and other recommendations

PROJECT MANAGEMENT 12
3.3 List of all cost issues
Date Description of
problems/
opportunities
Recommended actions
for the nest time
Lesson learnt
Over running
budget
(15/2/201
9-22/04/2019)
It will cause
overrunning
budget and over
allocation of time
At the initiation phase
the feasibility study
needs to be conducted
It is learned that, if proper
budget is estimated at the
project initiation phase, the
issues of overrunning cost
and over allocation of time
will be resolved.
Poor
support from the
sponsors
(25/5/2019-
28/04/2019)
Cost may exceed
the assumed value
The project sponsors
should be identified
before initiating the
project
Proper capital support can
only meet design and
upgrade the website as per
the client’s requirement.
Lack of
skills among the
finance team
(25/5/2019-
12/06/2019)
Overrunning
budget
on job training and
development program
can improve the skills
of the project team
members
I have learned that, the
project budget must be
estimated and monitored
according the changing time
period

PROJECT MANAGEMENT 13
References
Ahern, T., Leavy, B., & Byrne, P. J. (2014). Complex project management as complex problem
solving: A distributed knowledge management perspective. International Journal of Project
Management, 32(8), 1371-1381.
Cohen-Vogel, L., Tichnor-Wagner, A., Allen, D., Harrison, C., Kainz, K., Socol, A. R., &
Wang, Q. (2015). Implementing educational innovations at scale: Transforming researchers into
continuous improvement scientists. Educational Policy, 29(1), 257-277.
Conforto, E. C., Salum, F., Amaral, D. C., da Silva, S. L., & de Almeida, L. F. M. (2014). Can
agile project management be adopted by industries other than software development?. Project
Management Journal, 45(3), 21-34.
Conger, S. (2015). Six sigma & business process management. In H&book on Business Process
Management 1 (pp. 127-146). Springer, Berlin, Heidelberg.
Heldman, K. (2015). PMP project management professional exam deluxe study guide: updated
for the (2015) Exam. John Wiley & Sons.
Hornstein, H. A. (2015). The integration of project management & organizational change
management is now a necessity. International Journal of Project Management, 33(2), 291-298.
Joslin, R., & Müller, R. (2015). Relationships between a project management methodology &
project success in different project governance contexts. International Journal of Project
Management, 33(6), 1377-1392.

PROJECT MANAGEMENT 14
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project
risk management methodology for small firms. International Journal of Project
Management, 32(2), 327-340.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance & project success. International journal of project
management, 32(2), 202-217.
Sanchez, M. A. (2015). Integrating sustainability issues into project management. Journal of
Cleaner Production, 96, 319-330.
Todorovic, M. L., Petrović, D. Č., Mihic, M. M., Obradovic, V. L., & Bushuyev, S. D. (2015).
Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.