MGT5PMT: Project Planning - Budget, Schedule, and Resource Analysis

This report aims to determine the budget, schedule, and resources for a project, utilizing tools and techniques such as resource leveling for resources, PERT and Critical Path Method for scheduling, and bottom-up estimation and cost aggregates for budgeting. The report, structured according to the PMBOK Guide, calculates a project duration of 15 weeks and a budget of $81,200 based on contractor and subcontractor hourly rates. Resource leveling indicates a daily worker range of 9 to 17. The critical path is identified, and PERT analysis estimates project completion time. Risk impact is projected to be low, with minimal cost and schedule overruns. The report details assumptions, cost breakdowns, and activity schedules, providing a comprehensive project management analysis. Desklib offers access to similar reports and study tools for students.

This report is aimed to determine the
budget, schedule and resources for the
project. Tools and technique used for
determining the resources is resource
leveling..
Budget, Schedule and Resources
Subject Code: MGT5PMT
Subject Coordinator: Dr. Siobhan
Asian
Submission Date: 06th April 2018
Kevin Raju (18829905)

Table of Contents
Executive Summary............................................................................................................................2
1. Estimate Cost..................................................................................................................................3
1.1 Estimate Cost: Tools and Technique.....................................................................................3
1.1.1 Bottom-up estimation........................................................................................................3
2. Determine Budget.......................................................................................................................3
2.1 Determine Budget: Tools and Techniques............................................................................4
2.1.1 Cost Aggregation..............................................................................................................4
3. Develop Schedule.......................................................................................................................4
3.1 Tools and Techniques: PERT and Critical Path Method.....................................................4
4. Develop Resources....................................................................................................................6
4.1 Tools and Technique: Resource Leveling.............................................................................6
Conclusion/ Remarks.........................................................................................................................0
Reference............................................................................................................................................1

Executive Summary
This report is aimed to determine the budget, schedule and resources for the project. Tools
and techniques used for determining the resources is resource leveling. Tools and
techniques used for determining schedule are PERT and Critical Path Method. Tools and
techniques used for determining budget is bottom-up estimation and cost aggregates. The
assumptions, structure and format of the report follows the PMBOK Guide. The maximum
and minimum number of workers to be scheduled in a day is 17 and 9 respectively. The total
time required to complete the project is calculated for 15 weeks. Budget is calculated to be
$81,200 and is calculated based on the hourly rate provided by the contractors and
subcontractors. Referring to Table 11-1 of PMBOK Guide, the impact scales of risk on major
project objectives are aimed to be low (0.10), with less than 10% increase in the actual cost
of work performed (ACWP) and less than 5% increase of the scheduled time.

1. Estimate Cost
Estimate cost is “the process of developing an approximation of the monetary
resources needed to complete project activities” (Mowen, Hansen and Heitger, 2009). Cost
estimating is linked closely with scope, schedule, and resource planning.
1.1 Estimate Cost: Tools and Technique
1.1.1 Bottom-up estimation
Bottom-up estimating is “a method of estimating project duration or cost by aggregating
the estimates of the lower-level components of the WBS” (Rad, 2015). For a bottom-up
estimate, the WBS needs to be broken down to the most detailed level, and the
specifications need to be very clear as shown in Table 3. Advantages of Bottom-up
estimating over other tools are mainly because it is decentralized and participative, has
greater employee motivation, suits large organization, accurate and serves better
coordination and communications (Gilani, 2017). The disadvantage of Bottom-up estimation
is that every subcategory must be addressed as if it is missed the result of loss will be 100%.
2. Determine Budget
Determine Budget is the process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline. The key benefit of this
process is that it determines the cost baseline against which project performance can be
monitored and controlled. Figure 1 displays the data flow diagram to determine budget
(Project Management Institute. 2013a).
Figure 1: Determine Budget Data Flow Diagram

2.1 Determine Budget: Tools and Techniques
2.1.1 Cost Aggregation
Cost estimates are aggregated by work packages in accordance with the WBS. The
work package cost estimates are then aggregated for the higher component levels of the
WBS (such as control accounts) and ultimately for the entire project. Assumptions are an
integral part of project cost estimates (Project Management Institute. 2013b).
Direct and Other Cost Assumption: Direct and other cost breakdown is described in
table below. Every activity will be supervised by 1 site/design manager.
Cost Assumption Rate/hr Hours/ Week Budget Cost/Human
Resource/Week
Cost of one Site/Design
Manager
$20/hr 40 hrs/week 800
Cost for all other workers $10/hr 40 hrs/week 400
Table 1: Estimated schedule for activities, duration, start and end date
3. Develop Schedule
Time Assumption: Firstly, Tank 1 will be repaired for a duration of 6 weeks, Secondly,
Tank 2 will be repaired for a duration of 4 weeks and lastly Tank 3 will be repaired for a
duration of 3 weeks injunction with repair works of Tank 2, provided all tanks will be filled at
limited and pre-scheduled day refills only as all works must be stopped during the refill of the
tanks that is not being repaired. Tank 1 will take 4 to 6 hours, Tank 2 will take 8 to 10 hours
and Tank 3 will take 18 to 20 hours to refill. Normal operations will continue during the repair
of the tanks and the labor required at the time of refill of the tank after working hours will be
the responsibility of the client.
3.1 Tools and Techniques: PERT and Critical Path Method
Program evaluation and review technique (PERT) and critical path method (CPM)
are methods that are used for displaying the work activities called activity on arrow (AOA) or
arrow diagramming method (ADM), in which schedule activities are represented by arrows
and connected at points called nodes (Timothy, 2014). The primary advantage of PERT and
CPM to other methods is that it helps everyone realize how much uncertainty exists in the
project schedule. The resource-constrained critical path is known as the critical chain.
Referring to table 2, table 3 shows the estimated schedule for activities, duration, start and
end date. The disadvantage of CPM is it not communicated well and difficult to manage as
with Gantt charts.

Activity
Predecesso
r Duration Start Date End Date
Human
Resource
A 4w 01-05-18 28-05-18 5
B 1w 01-05-18 07-05-18 4
C A 2w 29-05-18 11-06-18 4
D A 2w 29-05-18 11-06-18 3
E B 3w 12-06-18 02-07-18 4
F C 1w 03-07-18 09-07-18 6
G D 6w 10-07-18 20-08-18 10
H E 4w 21-08-18 17-09-18 7
I F 3w 21-08-18 10-09-18 6
J G 2w 11-09-18 24-09-18 3
K H 1w 25-09-18 01-10-18 2
L J 1w 02-10-18 08-10-18 1
Table 2: Estimated schedule for activities, duration, start and end date, human resources
Critical Path Network Diagram:
Chart 1 shows the Critical Path Gantt chart for the project and critical path as: A,D,G,J,L =
15 Weeks
PERT Analysis
shortest time + 4 x likely time + longest time
----------------------------------------------------------
6
Shortest Time Required: 13 weeks
Likely Time Required: 16 weeks
Longest Time Required: 17 weeks
PERT Analysis = 15.7 weeks

Remark: The impact scales of risk on major project objectives are projected to be low(0.10)
with less than 5% increase of the scheduled time of 15 weeks.
Chart 1: Critical Path Gantt Chart
4. Develop Resources
4.1 Tools and Technique: Resource Leveling
Resource leveling is “a technique in which start, and finish dates are adjusted based
upon resource constraints with the goal of balancing demand for resources with the available
supply” (Leach, L.P., 1999). The most common form of resource leveling is when activities
are delayed so the person does not need to perform as many activities at the same time.
Chart 2 shows resource leveling on a Gantt Chart.
Remark: The maximum number and minimum number of workers at the site on a day will be
17 and 9 respectively
Chart 2: Resource Leveling

Table 3: WBS with Budget, Schedule and Resources (Bottom-up estimation)
Activit
y
WBS
Elements
Business Needs, Opportunities, Goals,
Objectives
Responsible
Person/Department
Budget
Cost/Human
Resource
Duration
(Week)
Resources
Required
Requirements 15,600
A Elicitation Collect the requirements for the project
from users, customers and other
stakeholders
Sponsor, Functional
Managers, Project
Manager
9,600 4 5
B Analysis Detailed examination of the structure 2,000 1 4
C Specification Precisely identifying the scope of the
project and stating the precise requirement
4,000 2 4
Design 9,200
D Conceptual
Design
Broad outlines of the function are
articulated that includes design of
interactions, experiences, processes and
strategies.
Project Team
Members, Project
Manager
3,200 2 3
E Technical
Design
A valid technical blueprint of a successful
project implementation.
6,000 3 4
Implementation 50,400
F Assign a
contractor
Enter into a contractual agreement to
provide components and service necessary
for the project.
Sponsor, Project
Manager
2,800 1 6
G Repair of Tank
3
Capacity: 7 million litres unleaded petrol
(ULP)
Required Works:
 6 Steel Patches averaging 1.5m2 in
size.
 4 Steel anchors required on top of
tank for working at heights
 Replacement of main supply valve.
Size: 300mm Diameter, in Stainless
Steel.
 Cleaning and repaint of outside of
tank
Subcontractors and
Contractors, Project
Manager will
overview the work.
26,400 6 10

H Repair of Tank 2 Capacity: 3 million liters unleaded petrol
(ULP)
Required Works:
 7 Steel Patches averaging 3m2 in
size.
 4 Steel anchors required on top of
tank for working at heights
 Cleaning and repaint of outsid1e
of tank
12,800 4 7
I Repair of Tank 1 Capacity: 1 million liters unleaded petrol
(ULP)
Required Works:
 4 Steel Patches averaging 2m2 in
size.
 4 Steel anchors required on top of
tank for working at heights
 Cleaning and repaint of outside of
tank
8,400 3 6
Verification and Validation 4,400
J Quality
Assurance
Testing
Test the desired level of quality by
Mechanical, Electric and Electronic
Testing methods.
Functional
Managers, Project
Team Members
3,200 2 3
K Validation Validate Accepted deliverables 1,200 1 2
Operations & Maintenance 1,600
L Delivery Client process assets updated, and final
result delivered to the client.
Operations
Managers, Project
Manager
1,600 1 3

Conclusion/ Remarks
Resources:
Tools and technique used is resource leveling. The project demands both technical and
behavioral skills for the project manager to allocate the right resources and scheduled time.
Contractors and Subcontractors will be chosen based on an overall cost including human
resources and equipment’s at an hourly rate. The maximum and minimum number of
workers to be scheduled in a day is 17 and 9 respectively.
Schedule:
Tools and technique used for determining schedule is PERT and Critical Path Method. The
total time required to complete the project is calculated for 15 weeks. The project schedule
was limited mostly by activities such as the individual repairing of each tank while normal
operations continue and limited mostly by resources with no more than 17 workers allowable
at the site at a time as per the condition provided by the client.
Critical Path: ADGJL = 15 weeks
PERT Analysis = 15.8 weeks
Budget:
Tools and technique used for determining budget is cost aggregates. Budget is calculated
based on the hourly rate provided by the contractors and subcontractors. Tools and
technique used for cost analysis is bottom-up estimation method. Budget is calculated to be
$81,200.

Reference
Gilani, N. (2017). The Advantages of Bottom-Up Budgeting. [online] Bizfluent. Available at:
https://bizfluent.com/info-8792659-advantages-bottomup-budgeting.html [Accessed 6
Apr. 2018].
Leach, L.P., 1999. Critical chain project management improves project performance. Project
Management Journal, 30, pp.39-51.
Mowen, M., Hansen, D. and Heitger, D. (2009). Cornerstones of managerial accounting.
Mason, OH: South-Western/Cengage Learning.
Project Management Institute. 2013a. A Guide to the Project Management Body of
Knowledge (PMBOK Guide) (5th ed.): 475-477. United States: Project Management
Institute.
Project Management Institute. 2013b. A Guide to the Project Management Body of
Knowledge (PMBOK Guide) (5th ed.): 245-247. United States: Project Management
Institute.
Rad, P. (2015). Project Estimating and Cost Management. Oakland: Berrett-Koehler
Publishers, Incorporated.
Timothy, K 2014, Contemporary Project Management, Cengage Learning US, Mason, OH.
Available from: ProQuest Ebook Central. [6 April 2018].