Assignment: Budget Analysis and Cost Estimating
Create a budget analysis report of the current failed project and a project estimation report for the turnaround project.
This portfolio work project, a budget analysis and cost estimating artifact, is based on the Revive LLC case study for the development of a new online employee orientation module. Both human resources (HR) and information technology (IT) employees, as well as contractors, will be used in this project.
Cost management is defined as "primarily concerned with the cost of the resources needed to complete the project activities" (Project Management Institute, 2017, p. 233.). Also, consideration needs to be taken with respect to project costs and stakeholder differences. Financial performance techniques provide both internal and external measurement capabilities that allow for decision making, financial analysis, and mitigation strategies.
Effective cost management involves establishing a cost baseline for measuring project performance. Establishing the project baseline is like establishing a point of reference. Whatever that point of reference, it will become the baseline against which project performance will be measured. This cost baseline becomes the basis for more advanced techniques, such as earned value management (EVM).
Project cost management includes planning for the resources needed: the people, equipment, and materials. With the use of proven estimating techniques, an estimate is presented to the project sponsor and management for approval. Upon approval, the cost estimate becomes the official budget for the project. As the project goes through the normal project lifecycle, cost control techniques track and monitor the budget, which allow you to make sure you will not incur a budget overrun.
Authentic Experience Project Components
You will do what is necessary to have the project succeed this time around. Using the Project Revive LLC Scenario
Using the original WBS:
o Break down the activities and tasks further into smaller work packages that will not exceed 80 hours of work.
o You may also add new activities and tasks that you think are needed to successfully complete the project.
o You will use Microsoft Project as the project management software tool to create the new WBS in tabular form.
YouTube has many excellent project management videos that may be helpful to review before completing this assessment.
Scenario
For this assessment Project Revive LLC is a consulting firm of highly charged and accomplished project managers whose mainstream of revenue comes from managing the turnaround of failing projects. As a consultant with Project Revive LLC you will study, analyze, and manage a failed project from NearlyFree.com. NearlyFree.com is a fictitious company and the project documents for NearlyFree.com project scenario are linked below. The NearlyFree.com project was originally scoped to develop and deploy an automated web-based training system for new employees to reduce the workload and cut down personnel resources required to complete the new employee orientation (NEO) training.
As a veteran member of the Project Revive team, you already know the value of continually examining performance throughout a project to further define and update project data. Special attention to documenting and identifying problems is required in time to make appropriate adjustments. The earned value management (EVM) technique is often used in this type of analysis. Continue your analysis of the failed project by applying the EVM technique to examine performance based on what was accomplished.
Resources:
a. NearlyFree.com Organizational Background and IT Governance [DOCX].
b. Project Charter [PDF].
c. Project Schedule [MPP].
d. Project Scope Statement [PDF].
e. Quality Statement [PDF].
f. Statement of Work Template [DOC].
g. Task Costs [XLS].
h. Work Breakdown Structure [DOC].
i. Work Breakdown Structure [VSD].
Your Role
You are the project manager.
Requirements
Microsoft Project is the recommended software tool for this course due to its wide industry acceptance and its use in many project management professional roles. To make this easier, you have the ability to download and install your own version of MS Project for use in this course. See the Software Preparation and Technology Access activity in Assessment 1 for more information.
Practice using MS Project in this course will prepare you for future professional PM roles and responsibilities; please use MS Project for those tasks supported by MS Project. If you have access to other tools such as MS Visio, MS PowerPoint, MS Word, or other project management software that you believe may still meet the requirements of this course, please discuss your selected alternative with faculty.
Use the PMBOK Guide as the model for developing the deliverables.
Earned Value Analysis
Deliverable: Develop an Earned Value Analysis report of the current failed project.
Address the following topics. Where necessary, define assumptions you made.
a. Apply an earned value technique.
b. Explain the value of the information provided through the EVM technique.
c. Analyze project success based on earned value calculations.
d. Base project decisions on earned value calculations.
e. Explain how you will apply earned value calculations to a successful project turnaround.
Use the MS Project functionality (or another software program) to:
a. Display project summary information and report.
b. Create project reports.
c. Export project plan cost data into Excel.
Evaluation
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
A. Competency A: Apply project cost tools and techniques to ensure project success.
a. Apply an earned value technique.
o Analyze project success based on earned value calculations.
o Explain project decisions based on earned value calculations.
B. Competency B: Communicate effectively in a professional manner consistent with the standards of project management.
o Explain how earned value calculations apply to a successful project turnaround.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.
Reference
Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Sixth Edition and Agile Practice Guide. Newtown Square. PA. 2017.