Cost Performance Analysis: National Archives Website Upgrade Project

This report provides a comprehensive analysis of the cost management strategies employed during the National Archives' website upgrade project. It begins with a detailed project budget, outlining budgetary assumptions and a cost management plan that includes contingency planning and resource allocation. The report then delves into cost analysis methods, demonstrating cost variations through top-down and bottom-up approaches, and presents a budget performance report illustrating the differences between planned and actual costs. Evidence for re-planning the budget to reduce variances is provided. Furthermore, the report details financial completion activities, reviews project performance in terms of cost management, and discusses experienced cost issues, offering insights into challenges encountered and rectified during the project's lifecycle. The goal of the project was to balance actual cost and planned cost.

Running head: PROJECT MANAGEMENT
Project Management: Australia National Archives’
Name of the student:
Name of the university:

1PROJECT MANAGEMENT
Table of Contents
Part 1: Project budget for the entire project.....................................................................................2
1.1 Budgetary assumptions..............................................................................................................2
1.2 Provide a cost management plan for the project....................................................................4
Part 2................................................................................................................................................9
2.1 Cost analysis methods and tools to demonstrate cost variation that occurred in the project.9
2.2 Provide a detail budget performance report...........................................................................9
2.3 Evidence for re-planning the budget....................................................................................10
Part 3..............................................................................................................................................11
3.1 Detail financial completion activities..................................................................................11
3.2 Review of the project performance in terms of cost management......................................12
3.3 Experienced cost issues.......................................................................................................12
References......................................................................................................................................14

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Part 1: Project budget for the entire project
1.1 Budgetary assumptions
During creation of business budget, budget assumptions are required to be considered by
the project managers and finance manager before initiating the project. The budget details should
comprise each unknown elements as well. The budget assumption should be reasonable and must
be based upon the existing data and research as well. It is much crucial to assume raw materials
before starting the existing website improvement project.
 Contingency or backup plan can improve the regular expected production of
National Archives’’ by safeguarding data with minimizing disruptions.
 It can minimize the loss of production from preventing panic and promoting
various actions.
 The contingency plan for this project is prepared and submitted to the
management of the company
 In order to activate a project plan, contingency plan should be prepared whenever
needed. Regularly the team members should be reviewed and accordingly new
members are to be assigned to the project activities with changing requirements
 All equipments should be maintained as a part of the contingency plan.
During preparation of the project budget the benefits those have been realized are as
follows:

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 From the budgetary assumptions the potential issues of the project related o
products, materials and services can be identified
 The personal budget should be changed while updating project schedules and
activities
 The expected project expenses can be primarily identified and changed
accordingly
 The modified websites can make out expected income from the project at the
primary project development stage
Preparing schdule for
Website upgradation
Website upgradation
Project initiation phase
Feasibility study and
budgetary
assumptions
Resource
identification and
information
gathering
Building website
specifications
Website content
writing
Website upgradation
Project planning phase
Contingency
planning
Risk management
planning
HR and statutory
service planning for
the project
Design and development
phase
Design and User
Interface coding
Prototype design
Quality control of
the website
Connection to the
system database
Testing phase
Unit and integrated
testing
Acceptance testing
Launching the modified
website
Project closure
Post website
maintenance plan
Final launch of the
project
Figure 1: Work Breakdown Structure for the project
(Source: Created by author)

4PROJECT MANAGEMENT
Figure 2: Gantt Chart for the Website upgradation Project
(Source: Created by author)
1.2 Provide a cost management plan for the project
Task Name
Duratio
n Start Finish Cost
Actual
Cost Variance
Preparing schedule
for Website
upgradation 59 days
Fri
2/15/19
Wed
5/8/19
$50,044.0
0
$33,192.0
0
$16,852.0
0
Website
upgradation Project
initiation phase 14 days
Fri
2/15/19
Wed
3/6/19
$17,388.0
0
$17,388.0
0 $0.00
Feasibility study
and budgetary
assumptions 2 days
Fri
2/15/19
Mon
2/18/19
$11,060.0
0
$11,060.0
0 $0.00
Resource 4 days Tue Fri $896.00 $896.00 $0.00

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identification and
information gathering 2/19/19 2/22/19
Building website
specifications 2 days
Mon
2/25/19
Tue
2/26/19 $3,512.00 $3,512.00 $0.00
Website content
writing 6 days
Wed
2/27/19
Wed
3/6/19 $1,920.00 $1,920.00 $0.00
Website
upgradation Project
planning phase 10 days
Thu
3/7/19
Wed
3/20/19 $2,872.00 $2,872.00 $0.00
Contingency
planning 5 days
Thu
3/7/19
Wed
3/13/19 $1,600.00 $1,600.00 $0.00
Risk management
planning 3 days
Thu
3/7/19
Mon
3/11/19 $672.00 $672.00 $0.00
HR and statutory
service planning for
the project 5 days
Thu
3/14/19
Wed
3/20/19 $600.00 $600.00 $0.00
Design and
development phase 14 days
Thu
3/21/19
Tue
4/9/19
$13,572.0
0
$12,932.0
0 $640.00
Design and User
Interface coding 5 days
Thu
3/21/19
Wed
3/27/19 $3,960.00 $3,960.00 $0.00
Prototype design 4 days
Thu
3/28/19
Tue
4/2/19 $8,268.00 $8,268.00 $0.00
Quality control of
the website 2 days
Wed
4/3/19
Thu
4/4/19 $384.00 $384.00 $0.00
Connection to the
system database 3 days
Fri
4/5/19
Tue
4/9/19 $960.00 $320.00 $640.00
Testing phase 7 days
Wed
4/10/19
Thu
4/18/19 $1,232.00 $0.00 $1,232.00
Unit and
integrated testing 2 days
Wed
4/10/19
Thu
4/11/19 $352.00 $0.00 $352.00
Acceptance
testing 5 days
Fri
4/12/19
Thu
4/18/19 $880.00 $0.00 $880.00
Launching the
modified website 14 days
Fri
4/19/19
Wed
5/8/19
$14,980.0
0 $0.00
$14,980.0
0
Project closure 4 days
Fri
4/19/19
Wed
4/24/19 $1,280.00 $0.00 $1,280.00
Post website
maintenance plan 5 days
Thu
4/25/19
Wed
5/1/19
$12,100.0
0 $0.00
$12,100.0
0
Final launch of
the project 5 days
Thu
5/2/19
Wed
5/8/19 $1,600.00 $0.00 $1,600.00

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For the project cost management plan the level of accuracy is 4% between the values of
(1% and 5%).
Roles and responsibilities of the financial department are as follows:
Name of the resource Roles Responsibilities
Finance directors Internal The finance director is
responsible to make the
feasibility study to measure
whether the finance structure
developed for the project is
beneficial enough or not for
National Archives’’.
Project management support Both internal and external The project management
support’s responsibility is to
analyze both the internal and
external business
environment according to
the consumers demand.
Financial accountant Internal Managing status of the
accounts is responsibility of
the finance accountants
Treasure Internal Responsibility of the
designation holder is to
support the financial

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accountants all around
Management accountant Internal The management
accountant’s responsibility is
to manage internal cost
structure and the investment
details of the company.
Credit controllers Internal The responsibility of the
credit controller to control
the company to make
additional capital
Cost accountant Internal The cost accountant is
responsible to keep balance
between the investment and
expected benefits
The reporting formats used for managing the project are project status reporting. The
project status report will help the finance manager to check status of the project and the direction
that National Archives’’ company will follow to reach the success criteria and preliminary
objectives as well.
In order to describe the expenditure ratio between actual cost and budgeted expenditure
the processes those are to be followed include:

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Approval processes: The sales approval process is referred to as an automated process
used by the business organization to approve the records in details. The approval process is a
combination of information content and the person who will control the information. The detail
information can be automated by listing key components and other measures also.
Communication and reporting process: While reporting to the project manager about
specified changes in the websites the company should use professional communication and
reporting processes. The associates should use formal communication to keep all the associates
informed regarding the project details.
Figure 3: Financial flow chart for the Website upgradation Project
(Source: Created by author)
Management team
Finance team
Project
management
support
Finance
accountant
Accountants
payable cost accountant credit controller
Treasures Management
accountant
Marketing team

9PROJECT MANAGEMENT
Part 2
2.1 Cost analysis methods and tools to demonstrate cost variation that occurred in
the project
The process of cost benefit analysis is referred to as an access method which affects the
procedures and policies needed in social welfare. Two different types of approaches are there
available for measuring the cost details of the company. In order to demonstrate the cost
variations those are occurred for managing the cost details of the project include either top down
or bottom up. For this specific project the approaches which are applied include Top down cost
benefit analysis and bottom up cost benefit analysis.
The bottom up cost benefit analysis is a profit approach used to access and generate
strategies that represents the local stakeholder’s preferences. It can also identify the environment
challenges those may interrupt the regular success of the project.
On the other hand, the Top down approach can also be used to measure the profit which
can facilitate a much better and much well informed decision making for the company.
2.2 Provide a detail budget performance report
The net budget considered for the project is comprises of different components such as
software, hardware, equipments, server, labours and other human resources. Based on the skills
and knowledge of the project associates the resources will be assigned to different project
activities. National Archives’ uses the budget performance report to define the needful tools and
techniques those are running by the company. Budget is a financial tool uses to manage the
finance details of the company as a whole. The business environment can be professionally
managed by considering certain traits.

10PROJECT MANAGEMENT
2.3 Evidence for re-planning the budget
In order to reduce the difference between the actual cost and planned cost or to reduce the
rate of variance the budget is re planned and the details of those changes are elaborated in the
report.
After re planning the project the difference between the actual cost and planned cost is
reduced and the final result which is evaluated is elaborated in the below section:
Task names duration cost Actual cost Variance
Preparing schedule for
Website upgradation 59 days $50,044.00 $48,764.00 $1,280.00
Website upgradation
Project initiation phase 14 days $17,388.00 $17,388.00 $0.00
Feasibility study and
budgetary assumptions 2 days $11,060.00 $11,060.00 $0.00
Resource identification
and information gathering 4 days $896.00 $896.00 $0.00
Building website
specifications 2 days $3,512.00 $3,512.00 $0.00
Website content
writing 6 days $1,920.00 $1,920.00 $0.00
Website upgradation
Project planning phase 10 days $2,872.00 $2,872.00 $0.00
Contingency planning 5 days $1,600.00 $1,600.00 $0.00
Risk management
planning 3 days $672.00 $672.00 $0.00
HR and statutory
service planning for the
project 5 days $600.00 $600.00 $0.00
Design and
development phase 14 days $13,572.00 $13,572.00 $0.00
Design and User
Interface coding 5 days $3,960.00 $3,960.00 $0.00
Prototype design 4 days $8,268.00 $8,268.00 $0.00
Quality control of the
website 2 days $384.00 $384.00 $0.00
Connection to the
system database 3 days $960.00 $960.00 $0.00
Testing phase 7 days $1,232.00 $1,232.00 $0.00

11PROJECT MANAGEMENT
Unit and integrated
testing 2 days $352.00 $352.00 $0.00
Acceptance testing 5 days $880.00 $880.00 $0.00
Launching the
modified website 14 days $14,980.00 $13,700.00 $1,280.00
Project closure phase 4 days $1,280.00 $1,280.00 $0.00
Post website
maintenance plan 5 days $12,100.00 $12,100.00 $0.00
Final launch of the
project 5 days $1,600.00 $320.00 $1,280.00
Final launch of the
project 5 days $1,600.00 $0.00 $1,600.00
A professional meeting is applied to rectify the various and the strategies and
methodology that are used respectively schedule and budget management and risk management.
At the project initiation phase, a feasibility study should be conducted to avoid the issues of
overrunning cost and over allocation of budget.
Part 3
3.1 Detail financial completion activities
The details financial completion activities for this project are as follows:
Task Name Duration
Preparing schedule for Website upgradation 59 days
Website upgradation Project initiation phase 14 days
Feasibility study and budgetary assumptions 2 days
Resource identification and information gathering 4 days
Building website specifications 2 days
Website content writing 6 days
Website upgradation Project planning phase 10 days
Contingency planning 5 days
Risk management planning 3 days
HR and statutory service planning for the project 5 days
Design and development phase 14 days