Project Management: Budget, Schedule, Resource Estimation Analysis

This project management assignment analyzes the key elements of project execution, specifically focusing on the repair of an Australian storage facility. It begins by establishing a project budget of $80,000, detailing the assumptions made, such as material costs and the minimization of scope creep. The project schedule, prepared using a Gantt chart, outlines the timeline for each phase, from initiation to closure, highlighting the merits of the agile methodology for its time management focus. The project also compares agile methodology with the waterfall method, and Gantt charts with Work Breakdown Structures. Resource estimation includes financial, human, and material resources. A critical path analysis is provided, along with the tools and techniques used, such as analogous estimation. The report emphasizes the importance of planning, scheduling, and resource management in the successful completion of projects.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Developing budget and illustrating details that are required for preparing budget................2
1.1 Project Budget..................................................................................................................2
1.2 Illustration of the assumptions which are made for budget preparation..........................3
2. Project schedule preparation and illustration of merits of different methods, tools and
techniques...................................................................................................................................3
2.1 Project Schedule...............................................................................................................3
2.2Illustration of merits of the tools, techniques and methods..............................................7
2.3 Comparison with different tool, techniques and methodologies......................................8
3. Estimation of project resources and identification of utilized tools and techniques..............9
3.1 Resource estimation.........................................................................................................9
3.2 Critical Path....................................................................................................................10
3.3 Tools and techniques used.............................................................................................11
Bibliography.............................................................................................................................12

Running head: PROJECT MANAGEMENT
1. Developing budget and illustrating details that are required for preparing budget
1.1 Project Budget
The project manager assumed that the budget that is needed for completing the project successfully is around $80,000.00.
However it is identified that around $67,960.00 is required for completing all the project activities successfully within the specified time
and budget and $17,000.00 has been kept for material resources and for other additional purposes.
Figure 1: Budget Sheet
(Source: Created by Author)

Running head: PROJECT MANAGEMENT
1.2 Illustration of the assumptions which are made for budget preparation
The different types of assumptions that are made for budget preparation are as
follows:
Requirement cost: The project manager analyzes the Australian market properly for
preparing the budget for different types of material resources that are required for repairing
the Australian storage facility. It is found that during preparing the budget for material
resources they assumes that the cost of the materials will not vary much in the coming future
in comparison to the cost that is estimated by them.
Low chances of scope creep: It is assumed by the project manager that scope creep
within the project will not occur and for this they analyzes the requirement of the project
properly before project planning so that the chances of scope creep will become low.
Budget needed for completing activities: The project manager estimated that the
budget, which is needed for repairing Australian storage facility, is around $80,000.
Budget for risk minimization: The project manager estimated that $6,800 is required
for minimizing the risks that are mainly associated with the project.
2. Project schedule preparation and illustration of merits of different
methods, tools and techniques
2.1 Project Schedule
Task Name Duration Start Finish
Repairing Australian Storage
facility
181 days Thu 21-09-17 Thu 31-05-18
Project initiation phase 17 days Thu 21-09-17 Fri 13-10-17

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PROJECT MANAGEMENT
Business case development 2 days Thu 21-09-17 Fri 22-09-17
Analysis of feasibility 3 days Mon 25-09-17 Wed 27-09-17
Project charter establishment 4 days Thu 28-09-17 Tue 03-10-17
Team members appointment 5 days Wed 04-10-17 Tue 10-10-17
Reviewing phase of the project 3 days Wed 11-10-17 Fri 13-10-17
Milestone: Completion of
initiation phase
0 days Fri 13-10-17 Fri 13-10-17
Planning phase 37 days Mon 16-10-17 Tue 05-12-17
Project plan creation 6 days Mon 16-10-17 Mon 23-10-17
Resource plan creation 7 days Tue 24-10-17 Wed 01-11-17
Financial plan creation 8 days Thu 02-11-17 Mon 13-11-17
Testing quality 9 days Tue 14-11-17 Fri 24-11-17
creation of acceptance plan 7 days Mon 27-11-17 Tue 05-12-17
Milestone: Completion of
planning phase
0 days Tue 05-12-17 Tue 05-12-17
Execution phase 121 days Wed 06-12-17 Wed 23-05-18
Agreement from participants 10 days Wed 06-12-17 Tue 19-12-17
External issues settlement 9 days Wed 20-12-17 Mon 01-01-18
Financing and creating
agreement for the project
8 days Tue 02-01-18 Thu 11-01-18
Preparatory work completion 11 days Fri 12-01-18 Fri 26-01-18

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Completion of strategies that
stops leakage
12 days Mon 29-01-18 Tue 13-02-18
Creating strategies that resolves
issues
14 days Wed 14-02-18 Mon 05-03-18
Activity adjustment 12 days Tue 06-03-18 Wed 21-03-18
Whole repair completion 9 days Thu 22-03-18 Tue 03-04-18
Adjustment of activities 8 days Wed 04-04-18 Fri 13-04-18
Completion of repair risk 7 days Mon 16-04-18 Tue 24-04-18
Analysis of work completed 11 days Wed 25-04-18 Wed 09-05-18
Closure of issues 10 days Thu 10-05-18 Wed 23-05-18
Milestone: Completion of
execution phase
0 days Wed 23-05-18 Wed 23-05-18
Closure phase 6 days Thu 24-05-18 Thu 31-05-18
Construction of gas storage
completion
2 days Thu 24-05-18 Fri 25-05-18
Financial reporting 2 days Mon 28-05-18 Tue 29-05-18
Analysis of the work 1 day Wed 30-05-18 Wed 30-05-18
Milestone: Completion of
Closure phase
1 day Thu 31-05-18 Thu 31-05-18

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Running head: PROJECT MANAGEMENT
Figure 2: Gantt chart
(Source: Created by Author)

Running head: PROJECT MANAGEMENT
2.2Illustration of merits of the tools, techniques and methods
Merits of Methodology used
In this project, agile methodology is mainly used as it assists in breaking various
project deliverables into number of manageable activities which are not available for re-
ordering however they can be properly managed as well as tracked for completing the
project (Larsonand Gray2013). It is identified that this methodology mainly focuses on time
management and therefore proper as well as frequent reviews for improving the financial
condition of the project in terms of profitability as well as productivity is generally done
(Teller, Kock and Gemunden 2014). The agile methodology engages in continual
improvement procedure by effectively encouraging all the project team members so that
they can team up effectively ad assists in providing proper effort for managing different
types of construction related task.
Merits of used tools and techniques
The tool and technique that is utilized in this project for organizing as well as
designing the project effectively is Gantt chart. The advantages of using Gantt chart in the
project are provided below:
Tracking: The project schedule which is generally created assists the project
managers to keep proper track on the activities of the project (AhernLeavyand Byrne2014)
Cost: The cost that is required for completing each of the project activities can be
reflected with the help of Gantt chart and thus it is found that the Gantt chart assists inn
providing an overview about the cost that is needed for completing the activities of the
project.

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PROJECT MANAGEMENT
Idea about activities of the project: The Gantt chart provides idea about the
initiation as well as execution of each of the activities that are generally completed for
repairing the Australian Storage facility (Hornstein 2015).
2.3 Comparison with different tool, techniques and methodologies
Comparison of Agile methodology with Waterfall
Agile methodology Waterfall methodology
It is identified that this methodology mainly
focuses on time management and therefore
proper as well as frequent reviews for improving
the financial condition is necessary (Lock 2014)
It is identified that the methodology of waterfall
do not focus on time management and thus it
prevents different types of compatibility issues
which are mainly associated with the project.
The agile methodology engages in continual
improvement procedure by effectively
encouraging all the project team members
This methodology mainly helps in allowing the
team to focus on other project aspects so that the
developers can ensure appropriate quality of
development in each of the stage (Hornstein
2015).
Comparison of Gantt chart with WBS
Gantt chart Work breakdown structure
The project schedule which is generally created
assists the project managers to keep proper track
on the activities of the project.
It is identified that the structure of work
breakdown structure helps in organizing various
types of work that are associated with the team
into number of manageable sections (Svejvig and
Andersen 2015).
The cost that is required for completing each It is mainly found as a groundwork that assists

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PROJECT MANAGEMENT
of the project activities can be reflected with
the help of Gantt hart and thus it is found that
the Gantt chart assists in providing an
overview about the cost that is needed for
completing the activities of the project (Mir
and Pinnington 2014).
developing proper budget plan for the project.
3. Estimation of project resources and identification of utilized tools and
techniques
3.1 Resource estimation
The estimated resources include:
Financial resources: The estimated financial resources for repairing the Australian
storage facility is around $80,000.00
Human resources: The various human resources that are mainly needed for
repairing the Australian storage facility are provided below:
Resource
Name Type Materia
l Label
Initial
s
Grou
p
Max.
Unit
s
Std.
Rate
Ovt.
Rate
Cost/
Use
Accrue
At
Base
Calenda
r
Project
manager
Wor
k
100
%
$50.00/
hr
$0.00/
hr $0.00 Prorate
d Standard
Superviso
r
Wor
k S 100
%
$40.00/
hr
$0.00/
hr $0.00 Prorate
d Standard
Contracto
r
Wor
k C 100
%
$40.00/
hr
$0.00/
hr $0.00 Prorate
d Standard
Business
analyst
Wor
k B 100
%
$30.00/
hr
$0.00/
hr $0.00 Prorate
d Standard
Project
planner
Wor
k P 100
%
$35.00/
hr
$0.00/
hr $0.00 Prorate
d Standard

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PROJECT MANAGEMENT
Site
planner
Wor
k S 100
%
$30.00/
hr
$0.00/
hr $0.00 Prorate
d Standard
Material resources:The material resources which are needed for completing project
include steel coatings, components for infrastructure improvement, mobile resources
scaffolding, tank cranes as well as paint.
3.2 Critical Path
Figure 3: Critical path
(Source: Created by Author)

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PROJECT MANAGEMENT
3.3 Tools and techniques used
Analogous estimation techniques and tool is mainly used in order to estimate the
project resources (Kerzner 2017). It is identified that this project is mainly used for
estimating the budget that is needed for repairing the storage facility of Australia. It is found
that the technique which is used not only assists in making reliable as well as proper
estimation but also helps inreducing costs.