Project Management: Cost Management Plan for Mobile Application

This project management assignment focuses on the cost management plan for an Android mobile application development project. The plan includes an introduction to cost management, cost estimation, contingency reserves, and budgeting. It details cost control and monitoring strategies, performance monitoring using application performance monitoring tools, and project reporting, including a Work Breakdown Structure (WBS) and change request forms. The assignment also addresses cost change control processes and Microsoft Project deliverables, such as project budget and performance reports. The project involves various phases, from initiation to closure, with defined milestones. The student analyzes the impact of changes, like increased testing time, on the project's budget and schedule, emphasizing the importance of change control for successful project completion. Cost reports and the use of Microsoft Project for cost analysis are also highlighted.

Running head: PROJECT MANAGEMENT
Project Management
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9. Cost
9.1 Introduction
The main purpose of this part is to prepare a plan of Cost management
Cost Management Plan
The cost estimation along with controlling the processes is important in successful
completion of the project. So, a project should include a Plan of Cost Management is The Cost
Management is found in an organization and is considered as a part of the plan of project
management. This is document that outlines the criteria as well as activities that are carried out
while managing a project. The plan of cost management includes cost estimate, the total amount
of money that is spent as well as the estimate of cost output. This will provide planning as well
as structure that is required for controlling the cost involved in a project.
9.2 Estimate Cost
The total cost that is involved in the project is $389,240. The cost of the project
mentioned here is before the change that is made in the project. After the change, about 10 % of
the cost is increased.
9.3 Contingency Reserve Project Purpose or Justification
For conducting the mobile application for a banking firm, extra money is allocated by the
sponsors associated with the project. Contingency reserve is kept for emergency purpose that is
if it takes a day long than the scheduled project, the project manager needs to pay one extra pay
day to the team members and for that extra money is kept.
9.4 Budget
The budget for the development of android mobile application is taken from the bank for
which the application is being built. The bank provides the budget of the project and as the

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project is a large one and includes large amount of money, government can also sponsor a part
for developing the project.
9.5 Cost Control and Monitoring
The cost of the project is controlled by monitoring all the tasks associated with the
project. The project has different task that are to be finished within the time allocated to control
its budget.
9.6 Performance Monitoring
The performance monitoring of the android application developing is designed by the IT
administrator by ensuring the work of application user so that they meet the performance
standards as well as provide the software that has high quality of user experience. For monitoring
this particular development of application, a tool known as Application Performance Monitoring
tool is used to track the performance of the application over the time.
9.7 Project Reports
The project reports that will be included in this project is a Work Breakdown Structure
that shows the project cost. The Change Request form is shown as project report and a diagram
showing control change and process diagram in the report. A change in the Gantt chart is also
done with increase in 10 % of the cost and 10% of the schedule time that was defined earlier.
Two of the cost reports that is resource report and the cost overrun report is attached with this
document.
9.8 Cost Change Control
The baseline of a project is scope statement, the budget of the project and the schedule of
the project. These baselines are used to measure the performance against all the changes or
deviations in a project. Ant new update on the project results in changing the baseline of the

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project. When the scope baseline changes, the cost baseline and the time baseline also gets
changed. For ensuring the change in a project, change control process is implemented in the
project.
9.9 Microsoft Project Deliverables
There is project Initiation phase, Requirement analysis and project planning phase,
project design and development phase, application phase, project control and Implementation
phase, and project closure phase.
The milestone deliverables of the project are:
Milestone 1: Project Charter
Milestone 2: Project Plan
Milestone 3: Source Code
Milestone 4: Defect Report
Milestone 5: Change Report
Milestone 6: Implementation Report
Milestone 7: Project performance and employee performance matrix
Milestone 8: Project Closure Report

Running head: PROJECT MANAGEMENT
9.9.1 Project Budget
Figure 2: WBS with Project Cost

9.9.2 Microsoft Performance Report
The project that is undertaken in the Android Mobile Application Development for a bank. This
report will establish the Cost Change control included in the project. This project will be used as
the cost management plan for the project. This report will help the project manager to maintain
the change control that occurred in the project because of increasing the testing time of the
application by the system designer. As the system designer needs more time to continue the unit
testing of the android mobile application, the project manager needs to change the budget of the
project and time schedule of the project. So, for controlling all these changes in the project, this
report is necessary for successful completion of the project.