BSBPMG533 Diploma of Project Management: Manage Project Cost

This assignment solution addresses the requirements of the BSBPMG533 Manage Project Cost unit, focusing on project cost management principles. The solution includes answers to knowledge-based questions exploring cost analysis methods, strategies for managing project costs, the importance of cost reviews, and organizational policies. The assignment also presents a project scenario involving the landscaping of a local park, requiring the student to determine resource needs, create a Work Breakdown Structure (WBS), conduct a cost estimate, and address financial reporting. The solution demonstrates an understanding of cost estimation, project planning, and financial management within a project management context, with specific attention given to a scenario involving poor soil quality and a limited budget. The student also includes notes from a consultation regarding the WBS and identifies necessary tolerances for the project.

Student
Assessment Guide:
BSBPMG533 Manage project cost

op ri tC y gh 2022
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rom anot er o rce i it i o icient importance or t em to do of h s u f s f suff f h s .
ontentC
s
A e ment n ormation1. ss ss I f .......................................................................................................4
A P rpo e o a e ment. u s f ss ss ........................................................................................................................4
ompetencie ein a e edB. C s b g ss ss .............................................................................................................4

at o are re ired to doC. Wh y u qu ...............................................................................................................5
Ad tment and pportD. jus Su .....................................................................................................................6
A e ment mi ionE. ss ss sub ss .......................................................................................................................7
A e ment re lt and eed acF. ss ss su s f b k........................................................................................................8
Tec nical tool or completin t i a e mentG. h s f g h s ss ss ..................................................................................9
A e ment o er eet2. ss ss C v sh ......................................................................................................10
A e ment e irement3. ss ss R qu s.................................................................................................11
A Ta no led e e tion. sk 1 – K w g qu s s ........................................................................................................11
Ta e tioninB. sk 2 – Qu s g ........................................................................................................................14
Ta ritten e tionC. sk 3 – W Qu s s ..............................................................................................................23

1. Assessment Information
C. What you are required to do
T i a e ment re ire o toh s ss ss qu s y u an er all e tion it in eac A e ment Ta and e a e ed asw qu s s w h h ss ss sk b ss ss s
ati actor in eac to ain competenc in“S sf y” h g y PM Mana e Pro ect o tBSB G533 g j C s .
Task 1
or Ta o are re ired to anal e di erent model and tool tili ed in mana in a pro ect co tF sk 1, y u qu ys ff s s u s g g j ’s s .
o ill al o demon trate nder tandin o t e ario component needed in de elopin andY u w s s u s g f h v us s v g
implementin a pro ectg j .
Task 2
or Ta o are a Pro ect Mana er it Mar et on ltin o a e een emplo ed to pro ectF sk 2, y u j g w h Oz k C su g. Y u h v b y j
mana e a ne arden or a local par o are re ired to rite a inancial report li tin t e co tin og w g f k. Y u qu w f s g h s gs f
t e pro ect and to re i e inancial pro ection d e to c an e t at occ r d rin t e implementationh j v s f j s u h g s h u u g h
p a eh s .
Task 3
Ta re ire o to report on t e inancial o tcome o t e pro ect and to mmari e t e inancialsk 3 qu s y u h f u s f h j su s h f
i e t at aro e in order to ta e into acco nt or t re pro ectssu s h s k u f fu u j s.
or rt er detail plea e re er to t e A e ment e irement ection o t i doc mentF fu h s, s f h “ ss ss R qu s” s f h s u .

2. Assessment Coversheet
t dent ameS u N :
t dentS u ID:
ontact m erC Nu b :
mailE :
Trainer A e or ame/ ss ss N :
ali icationQu f : iploma o Pro ect Mana ementBSB50820 D f j g
nit o ompetencU f C y: MPM Mana e pro ect co tBS G533 g j s
A e ment Tass ss sks:
☐ Ta e tioninsk 1. Qu s g
☐ Ta Pro ectsk 2. j
☐ Ta ritten e tionsk 3. W Qu s s
e ateDu D : ate mittedD Sub :
eclarationD : a e read and nder tood t e ollo in in ormation at t e e innin oI h v u s h f w g f h b g g f
t i a e ment ide plea e tich s ss ss gu ( s k):
☐ A e ment in ormationss ss f
☐ mittin a e mentSub g ss ss s
☐ Pla iari m and re erencing s f g
declare t i a e ment i m o n or and ere t e or i oI h s ss ss s y w w k wh h w k s f
ot er a e ll re erenced t at materialh s, I h v fu y f h .
ame plea e printN ( s ):
t dent i nat reS u s g u :
ateD :
3. Assessment Requirements

A. Task 1 – Knowledge questions
i n tr ction or t dent. I s u s f s u s
Ta o t i a e ment re ire o to ask 1 f h s ss ss qu s y u nal e di erent model and tool tili ed in mana in ays ff s s u s g g
pro ect co t and ain an nder tandin o t e ario component needed in de elopin andj ’s s g u s g f h v us s v g
implementin a pro ectg j .
An er t e e tion elo in t e pace pro idedsw h qu s s b w us g h s v :
 An er all part o eac e tionsw s f h qu s
 e o r o n ord and i e e ample ere er po i leUs y u w w s g v x s wh v ss b
 T e alit o o r an er i more important t an o lon it ih qu y f y u sw s h h w g s
 nter o r an er in t i doc mentE y u sw s h s u
o ma e ario o rce o in ormation to in orm o r an er incl din o r re o rce pro idedY u y us v us s u s f f f y u sw s, u g y u s u s v
A oo and online o rce o m t ac no led e and cite o r o rceby CBI, b ks, s u s. Y u us k w g y u s u s.
ii Ta e tion. sk 1 Qu s s
A An er t e ollo in1 . sw h f w g:
a) e cri e t o met od and t o tool t at can e ed or co tin a pro ect andD s b w (2) h s w (2) s h b us f s g j
cond ctin a co t anal iu g s ys s.
b) e cri e t o tool t at can e ed or identi in and e al atin co t ariationD s b w (2) s h b us f fy g v u g s v s
An er in to ord
sw 40 80 w s.
a)
The 2 methods that will be helpful in conducting costing of a project as well as cost analysis
are program evaluation and review technique perfect model and bottom-up estimate. With the
help of these methods proper cost analysis of a project can be undertaken.
b)
In addition to this the 2 effective methods through which cost analysis can be done all expert
judgment and analogous estimation. With the help of these tools project cost can be estimated
in context with expert judgment. This is a technique in which project manager can and take
account of need factors specific to the project. While point estimating and parametric

estimating can be used to identify and evaluate cost variation.
An er t e ollo in1B. sw h f w g:
a) e cri e t o di erent trate ie t at can e ed to mana e pro ect co tD s b w (2) ff s g s h b us g j s s.
b) tline t e mo t appropriate trate or re pondin to d etar pro lem e ore t eOu h s s gy f s g bu g y b s b f h y
ari e and a ter t e ari es f h y s .
An er in to ord
sw 80 160 w s.
a)
In order to manage project cost time management plays an important role.
Along with this, the strategy to manage project cost is to achieve a baseline budget and
establish monthly budget while recording actual cost.
b)
With the help of taking advantage of bottom up estimation project manager can have best as
well as foolproof way to prepare project budget. It helps in effectively anticipating estimating
individual part of the project such as phases task milestone and totalling them to get an actual
project course. This will help in responding to budgetary problem before they arise or after
their rise. In addition to this thorough project planning with risk identification plan is also a
way to respond to the budgetary problem in a well defined and effective manner.
An er t e ollo in1C. sw h f w g:
a) plain co t o ld e re ie ed a ain t t e pro ect o tcomeEx why s s sh u b v w g s h j u s
b) tline one proce t at co ld e ed to re ie co t a ain t o tcomeOu ss h u b us v w s s g s u s
An er in to ord
sw 80 160 w s.
rite o r an er ere
W y u sw h
a)
It is essential to review cost against the project outcome if the total project cost will not get
estimated precisely then it will affect the overall project and project manager can face serious
consequences that can affect company objective. It will also affect scope, project quality and

schedule that can lead towards cost overrun.
b)
The process that will help to review cost against outcome is performance review. With the
help of this project health can be checked in a regular framework. It also helps in including an
analysis of project cost quality schedule against outcome. With the help of taking advantage of
this process project manager can significantly review cost in a well defined and effective
manner against outcome. This will significantly assist project manager to accomplish project
goals and objectives in a well defined and effective manner.
An er t e ollo in1D. sw h f w g:
a) tline it i important or eac mem er o t e or ani ation to ad ere to or ani ationalOu why s f h b f h g s h g s
policie and proced res u s
b) e cri e t e p rpo e o policie and proced re a t e relate to pro ect mana ement roleD s b h u s f s u s s h y j g s
An er in to ord
sw 80 160 w s.
a)
To fulfil project goals and objectives it is essential to other policies and procedures in order to
conduct project in an ethical manner. It has been analysed that it is important for each member
of organization to conduct their roles according to the organization procedure and policies, as
it offers road map to conduct day to day operations by assuring compliance with government
regulation and law. It also helps in conducting efficient decision making and streamline
internal process with the help of this organization can also avoid any legal challenges in future.
b)
Policies and procedures play important roles which allow organization to conduct proper
planning of executing project objectives. With the help of this consistent and clear response of
organization to deal with situation is being defined. It also helps workers to conduct their
actions in an ethical manner. Further, more the main purpose and policy is that it guides every
individual to conduct their responsibility according to the guideline and standards.

B. Task 2 – Questioning
i n tr ction or t dent. I s u s f s u s
ead t e cenario o Mar et on ltin pro ided elo t en an er t e ollo in e tionR h s s f Oz k C su g v b w, h sw h f w g qu s s.
An er t e e tion elo in t e pace pro idedsw h qu s s b w us g h s v :
 An er all part o eac e tionsw s f h qu s
 e o r o n ord and i e e ample ere er po i leUs y u w w s g v x s wh v ss b
 T e alit o o r an er i more important t an o lon it ih qu y f y u sw s h h w g s
 nter o r an er in t i doc mentE y u sw s h s u
o ma e ario o rce o in ormation to in orm o r an er incl din o r re o rce pro idedY u y us v us s u s f f f y u sw s, u g y u s u s v
A oo and online o rce o m t ac no led e and cite o r o rceby CBI, b ks, s u s. Y u us k w g y u s u s.
ii Ta cenario. sk 2S
cenarioS :
Mar et on ltin a een emplo ed to pro ect mana e t e de i n and de elopment o aOz k C su g h s b y j g h s g v f
arden or t e local parg f h k.
o a e een en a ed a t e Pro ect Acco nt Mana er to o er ee all pro ect co t Total co tY u h v b g g s h j u s g v s j s s. s s
M T not e ceedUS x $10,000.00.
T e par i to e con tr cted on nde eloped land ne t to a ri er Te t ere cond cted andh k s b s u u v x v . s s w u
re lt report t e oil alit i ite poor and i predominantl cla T e area to e de eloped isu s h s qu y s qu s y y. h b v s
ten metre ten metre(10) s by (10) s.
nderta e t e ollo in ta to complete t i a e ment acti it e t e ollo in i reU k h f w g sks h s ss ss v y. Us h f w g f gu s
en appropriatewh .
Po itions o rl ateH u y R
Pro ect Mana erj g $60.00
Pro ect Acco nt Mana erj u g $50.00
Pro ect epartment eadj D H s $50.00
a o rerL b u $25.00
Plant operators et ire$30.00 (w h )

and cape de i nerL s s g $100.00
Plants Price per arietv y
lo erF w s $1.00
rSh ubs $2.00
Trees $10.00
Material Price per tonne
oilS $30.00
toneS $20.00
andS $20.00
Mi cellaneos us Price per linear metre
T ru f $5.00
raina e A PipeD g ( G ) $2.00
encinF g $10.00
aterin ipmentW g Equ $3.00
o determine ot er material i re ired o are to pro ide a li t o t e item and t eir relati eIf y u h s qu y u v s f h s h v
co t i eds s ( f us ).
iii Ta e tion. sk 2 Qu s s
A2 .T T i i a m ltipart e tion n re o complete eac part o t e e tion
NO E: h s s u qu s . E su y u
h f h qu s .
i. etermine at re o rce ma e re ired or t e land capin pro ect and e timate t eD wh s u s y b qu f h s g j s h
co t o t e re o rces s f h s u s.

ii. reate a or rea do n tr ct re or t e land capin taC W k B k w S u u (WBS) f h s g sk.
iii. nce o a e created t e con lt it ot er in ol ed in t e pro ect a role pla edO y u h v h WBS, su w h h s v v h j , s y
ot er t dent in o r t dent e t e con ltation to determine i o a e mi ed anby h s u s y u s u . Us h su f y u h v ss y
ta T i con ltation can e done er all or in a ritten ormat A ter o r con ltationsks. h s su b v b y w f . f y u su ,
record note o at a di c eds f wh w s s uss .
iv. denti an tolerance nece arI fy y s ss y.
v. timate t e co t o t e pro ect a ed on t e re o rce identi ied in t e tate allEs h s s f h j b s h s u s f h WBS. S
i re ed and o all or inf gu s us sh w w k g.An er elo in t e ta le pro ided An er in
ord
sw b w us g h b s v . sw 100-250 w s.
i etermine at re o rce ma e re ired or t e land capin pro ect and e timate t e co t o. D wh s u s y b qu f h s g j s h s s f
t e re o rceh s u srite o r an er ere
W y u sw h
Utilizing resources is necessary for project management to achieve specified tasks.
Illustrations of all these include people, equipment, infrastructure, money, or anything else
that may be regarded as being required to perform a project activity (usually excluding
labour). For these resources required cost $4000.
ii or rea do n tr ct re or t e land capin ta. W k B k w S u u (WBS) f h s g sk
T e or rea do n tr ct re i a pro ect o admini tration and en ineerin tem ic ih w k b k w s u u s j f s g g sys wh h s
pplied a ed and rea do n o t e a e ment into t e orter actor A tr ct re osu -b s b k w f h ss ss h sh f s. s u u f
rea do n i a a ic concept a e ment deli era le t at cond ct t e team or into ab k w s b s ss ss v b h u s h ’s w k
mana ea le di i ion a icall in t e land capin ta t e ta ic are in ol ed in t eg b v s . B s y h s g sk h sk wh h v v h
land capin acti it c a draina e encin and aterin e ipments g v y su h s g , f g w g qu .