Project Summary: Move a baking company’s fastest-growing business to a larger building across town (to Houston, TX). The location must accommodate a large kitchen, an ample storefront, and added space to meet with large clients. The location must be prime for foot traffic and parking. Some remodeling money is available to bring a prime location into an appropriate workspace. All equipment must be moved or replaced with newer baking technology. The new location and technology will require the retraining of employees prior to opening day. Training methods, timelines, and the opening day will be determined by the project manager. The move must be “marketed”, that is, communicated to current and potential customers in a way that is positive and increases business. The move must happen with minimal disruption to business and the bakery should not be closed for any significant period of time.
Assignment: Answer the following three questions.
What are the major types of costs (use the proper names/categories that you learned about, chose those that relate to this project)?
Which costs are controllable by the project manager and what makes them controllable?
Why are accurate estimates critical to effective project management? (Remember to answer each question clearly and to provide specific examples from your course project).