MGT5PMT Project: Budget, Schedule, and Resources for WA Oil Facility

This report details the project budget, schedule, and resources required for a multinational oil company's storage facility upgrade in Western Australia. It includes a budget estimation, considering direct and indirect costs, and a project schedule with key milestones using a Gantt chart. The report also discusses resource planning, highlighting the importance of identifying necessary skills, software, and equipment for successful project completion. The analysis emphasizes the use of appropriate project management methods, tools, and techniques, referencing contemporary literature and industry best practices. The assignment aligns with the MGT5PMT course objectives and provides a comprehensive approach to budgeting, scheduling, and resource allocation in a real-world project scenario. Desklib provides many past papers and solved assignments for students.

Running head: PROJECT BUDGET, SCHEDULE AND RESOURCES
Project budget, schedule and resources
Name of the student:
Name of the university:
Author Note

1PROJECT BUDGET, SCHEDULE AND RESOURCES
Executive summary
The following report demonstrates the project budgets, resources and schedules for a multinational
oil company situated in Australia. It includes budget estimation and a plan for the project at the oil
agency. The study ends with an investigation on resources required for a successful finishing of that
project.

2PROJECT BUDGET, SCHEDULE AND RESOURCES
Table of Contents
1. Introduction:......................................................................................................................................3
2. Developing budget estimation for the oil company project:.............................................................3
3. Preparing schedule for Oil Company project and key milestones for the project deliverables:........5
3.1. Key milestones:..........................................................................................................................6
3.2. Discussion on various process deliverables:...............................................................................8
4. Developing estimation of resources needed for successful completion of the oil company project: 9
5. Conclusion:......................................................................................................................................10
6. References:......................................................................................................................................11

3PROJECT BUDGET, SCHEDULE AND RESOURCES
1. Introduction:
Project budgets are the reflections to project work and timing of that activity. Any
comprehensive budget helps in understanding that how funds could be used and then expended
through time for business projects.
To understand this, a large multinational oil company is taken into consideration having
storage facilities at Australia. A budget-estimation is done for this Case Study project and schedule
for the project is prepared finding key milestones for project deliverables. At last an estimation of
resources needed for success completion of the project is demonstrated here.
2. Developing budget estimation for the oil company project:
First of all the oil company must realize that the budget is realistic. Otherwise, any donor will
never take any serious responsibility. An understanding budget can lead to a standstill and even
completion of termination of activities during implementation at Australia.
In preparing a budget, it must be determined that what must be a suitable amount of request.
Guidelines reveal the maximum quantity allowed. Hence, the organization must request the utmost
such that they can justify that and never ask for more.
This number must be specific. Further, their planning should be contingencies. For instance
rise in the cost of living can take place before the grant begins.
There are various advantages of that must be considered in assumptions for the oil factory.
Developing budget under this scenario is a smart test to entirely and identifies how the project is
described. For organizing budget as per commonly used categories, one must save efforts and time
while applying to various funding programmes (Fleming and Koppelman 2016).

4PROJECT BUDGET, SCHEDULE AND RESOURCES
A budget provides methods for investigating financial activities of the project over the
project life-cycle. The following budget must provide a framework regarding expenditure to gain
various objectives effectively. Further, careful resource planning decreases the number of changes of
a budget during that project life-cycle.
Moreover, there are preparing of budget time and cost and only under particular cases, this
project idea can fit to call every proposal. Since budget is an estimation of project expenses, it has
never been accurate and thus it brings problems while the implementation phase goes on. Ineffective
financial planning leads to budget constraints during operations and at complete termination
(Serrador and Turner 2015). Furthermore, as the budget planning becomes unrealistic, it can cause
failure to achieve any political support in Australia.
Moreover, during finalization of a budget, various aspects must be included to include value.
They are bank fees, legal fees accounting fees, construction insurance, utility connection fees,
construction permit fees, appraisal fees and interests while construction goes on, legal issues,
insurance premiums, management software, website development costs, computer tools and
maintenance tools.
Project Task Designing Working time
of labors
Labor Cost Material Cost Travel Cost
Developing functional
Specifications
1 hrs 2 $ 3 $ 2 $
Developing System
Architecture
2 hrs 4 $ 4 $ 2 $
Developing
Preliminary Design
1 hrs 3 $ 3 $ 2 $

5PROJECT BUDGET, SCHEDULE AND RESOURCES
Specification
Developing Detailed
Design Specification
1 $ 2 $ 3 $ 2 $
Subtotal 5 $ 11 $ 13 $ 29 $
3. Preparing schedule for Oil Company project and key milestones for the
project deliverables:
A project schedule is a method to communicate with that what needs to be done. It must
include what resources of this oil company must be used to perform work and timeframes and what
is needed to be performed. It must reflect every task related to delivering a project within time.
Instead of full schedule the project managers must be unable to communicate with the complete
effort as per as resources and cost and needed for delivering the project (Batselier and Vanhoucke
2015).
Project management software helps project managers in tracking project schedules, project
related, resources budgets and resources in real time. It can be seen and updated by various team
members related to project, keeping all the people well informed of overall project status.
The building blocks of the scheduled start with the above Gantt Chart. One of the most
significant benefits of the above table and chart is that it was helpful to illustrate a state of the
current project easily (Kerzner and Kerzner 2017). Further, it is also useful for producing accurate
timescale for the project, showing team members how their work has been related to others, breaking
down the structure of the project, scheduling the tasks on a daily basis around the complete duration
and can be used under critical path method.

6PROJECT BUDGET, SCHEDULE AND RESOURCES
3.1. Key milestones:
Thus, as a project manager, the decomposition level must be dependent on the extent up to
which they need to control. Further, the project insights have been supporting various levels of
hierarchy as required. Even, the expectation is that every task must have one single owner. He is
intended to report and manage tasks needed to deliver the task. As the oil company is unable to
assign any individual owner, they require having extra visibility towards the task’s progress. Thus
additional decomposition is also recommended (Snyder and Dionisio 2017). As the project
deliverables are recognised, tasks must be done for creating deliverables. In various cases, those
activities are physical deliverables. However, in multiple instances, they are just the activities that
are required to be done. Physical deliverable, for example, should be the actual file is necessary for
the brochure. Thus, listing out every task must be done resulting in activity lists.
For identifying the schedules, the project manager of this oil company must know every
involved process. It denotes that they require going through every step needed to assure that the
project is completed. As those fundamental processes are acquired, it is then necessary to work out
on how long every task must last (Snyder 2014). This also indicates how many resources are
required to end that task. Once the lists of all the processes are acquired along with relevant data, it
is the time to recognize a various sequence of events. The project managers need to identify what
methods can start after particular activities are carried out and which one of them can be completed
at specific milestones across the project.
The project deliverables must be determined from the beginning as the project on Oil
Company is proposed. As the project progresses, deliverables must be further specified and defined.
Thus the necessity of one or more relevant process deliverables must come into being. Thus, the
deliverable definition process is executed through deliverables decision tree (Camilleri 2016). The

7PROJECT BUDGET, SCHEDULE AND RESOURCES
decision tree as detailed below is made up of various series of questions required to recognize and
define multiple needed variables both from process and project point of view.
First of all the project deliverables must be decided. The queries must be sued for defining
kinds of project deliverables needed for the oil project. First of all, it must be seen that what has been
the nature, form and function of the planned deliverables. Then the importance of the overall
purpose of this project must be determined. Then the methods which it can be produced and what
must be done to have the capabilities needed (Harrison and Lock 2017). Then the costs and its
feasibility are to be identified. Then the time required to get that acquired or completed must be
found out and then the alternative to those deliverable and relative benefits and disadvantages of
each must be recognized.
WBS Task Name Duration Start Finish Predecessors
0 Preparation of schedule for
oil company project
45 days Fri 6/1/18 Thu 8/2/18
1 Component development 3 days Fri 6/1/18 Tue 6/5/18
2 Software Procuring 9 days Wed 6/6/18 Mon 6/18/18 1
3 Hardware Procuring 3 days Thu
6/21/18
Mon 6/25/18 2
4 Developing Acceptance
Test Package
7 days Tue 6/26/18 Wed 7/4/18 3
5 Performing Integration/Unit
Test
5 days Thu 7/5/18 Wed 7/11/18 4
6 Performing Acceptance
Test
6 days Thu
7/12/18
Thu 7/19/18 5

8PROJECT BUDGET, SCHEDULE AND RESOURCES
7 Performing Post Project
Review
10 days Fri 7/20/18 Thu 8/2/18 6
Figure1: “Gantt Chart for time schedule denoting project life-cycle for the oil company”
(Source: Created by Author)
3.2. Discussion on various process deliverables:
The questions used for defining kinds of process deliverables needed for the current oil
factory project are discussed hereafter. First of all, the kinds of process deliverables needed to finish
the project are to be identified. Then they must consider how much time that must produce for every
deliverable (Yun et al. 2016). Then every due, formats used, individuals liable to plan, implement
and production is to be determined. Then the people who must approve and accept are to be
determined and how every deliverable must be maintained and updated is to be estimated.

9PROJECT BUDGET, SCHEDULE AND RESOURCES
4. Developing estimation of resources needed for successful completion of the oil
company project:
Resource Planning for the oil project is helpful is useful for the project manager of the
company to determine how much equipment and facilities, raw materials human resources are
needed to deliver on the project. A project manager has been working on IT related project. Hence
he requires being aware of what IT skills is important to that project and what applications or
software is important to this project. In the present scenario, the project manager is working on
storage facility up to the required standard that he must be aware of every kind of storage facilities
and oil business skills vital for this project. Along with the software and application is needed for the
project is needed to be found out (Raymond and Bergeron 2015). Further, a great method to do that
is to possess a sit-down with experts, members of the project team and professional associations.
This must be helpful to create the workflow as illustrated by the above Gantt Chart. This must aid
determination of project components needed for certain resources. He must also refer to data from
the previous project and assure that every activities and necessity are in-line with the procedures and
policies of the oil company (Lock 2017).
Development of budget must cover all operating and capital costs assuring completion of
project success. Project manager of the present oil company must define funding requirements in
Australia. Then, he must send a formal request for sponsoring who must view those requirements
and create package decision to provide the needed money and economic resources. Sponsors must
also use that initiation documents like project charter, business case and feasibility study (Kerzner
2018). These methods of estimation can be utilized as cost baseline measurement, cost aggregation
and expert judgment to develop Oil Company’s project budget sheet. Project manager in cooperation

10PROJECT BUDGET, SCHEDULE AND RESOURCES
with critical stakeholders could use assimilation of methods for estimating a needed amount of
financial resources and create a template for the project budget.
Further, it must be reminded that budget resources are designed for the complete project and
it can never be assigned to any task. This only gets assigned only to various project summary tasks.
Due to this reason, it is recommended that while creating a budget resource, one must put the term
“budget” within it (Nurdiani, Börstler and Fricker 2016). Thus it is helpful to remind everyone might
work on that schedule where it could be assigned. Thus budget resource represents overall planned
quantity to be spent on that item. This must need allowing for tracking and reporting at the project
level for Oil Company. Thus, the oil industry in Australia is also an outstanding area to get
information that could be used easily transmitted to other data systems or various reporting tools that
cannot be directly connected to that project (Archibald and Archibald 2016).
5. Conclusion:
Thus the above report demonstrates the project budget needed for the personal and financial
disposal limits for the given oil company in Australia. The study helps in understanding how to use
maximal of money, cost of work and resources needed for that project. It must be reminded that the
changes not corresponding to the budget planned can take place during the project. Further, it also
helps in implementing earned-value analysis while the project processes. Thus the report is useful to
understand that how the related costs and project progress are under control.

11PROJECT BUDGET, SCHEDULE AND RESOURCES
6. References:
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every Executive
Team Must Know about Project, Program, and Portfolio Management. CRC Press.
Batselier, J. and Vanhoucke, M., 2015. Construction and evaluation framework for a real-life project
database. International Journal of Project Management, 33(3), pp.697-710.
Camilleri, E., 2016. Project success: critical factors and behaviours. Routledge.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project
Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley &
Sons.
Lock, D., 2017. The essentials of project management. Routledge.
Nurdiani, I., Börstler, J. and Fricker, S.A., 2016. The impacts of agile and lean practices on project
constraints: A tertiary study. Journal of Systems and Software, 119, pp.162-183.
Raymond, L. and Bergeron, F., 2015. Impact of project management information systems on project
performance. In Handbook on Project Management and Scheduling Vol. 2 (pp. 1339-1354).
Springer, Cham.