Reference no: EM132581696

BSBPMG514 Manage project cost - Australian Vocational Training Institute

Assessment Task 1:

Task summary
This is an open book test.to be completed in the classroom.
A time limit of 1 hour to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.

Instructions

Provide answers to all of the questions below:

Question 1. Discuss the key purpose and objectives of budgeting in project management.

Question 2. Outline the main steps in the budgeting process for a project.

Question 3. Discuss why key performance indicators are used in budgeting and provide three examples of financial key performance indicators that can be used to determine the effectiveness of a budget.

Question 4. Explain the use of milestones in budgeting.

Question 5. Explain the importance of budgetary control.

Question 6. Explain the purpose of using spreadsheets for developing budgets and two key features of using spreadsheets.

Question 7. Explain two methods for conducting project cost estimating and at least one advantage and disadvantage of each.

Question 8. Explain earned value management and its application in evaluating costs.

Question 9. Explain project cost management and its application in evaluating costs.

Question 10. Explain how a cost plan can assist in managing costs and its use over the project life cycle.

Question 11. Explain the key procedures that should be followed in the event of a cost change process during a project.

Question 12. Explain two processes that can be used to measure costs against project outcomes.

Question 13. Outline the key role and at least four responsibilities of a project manager in relation to cost management.

Assessment Task 2: Project cost management plan project

Task summary
In the role of Project Officer of Manager Networks, you are required to determine project costs by researching and documenting costs included in a Work Breakdown Structure. You will then participate in a meeting with project stakeholders to seek input on costs. You will also be required to develop a project cost management plan that includes a project budget.

Instructions

Carefully read the following:

You are the Administration Manager for Manager Networks, an organisation that provides networking events for business people across Australia.

The company runs regular networking events, but has now decided to start an annual conference event focussing on an area of business considered to be of key importance.

You have been asked to coordinate the conference project as the Project Officer. You have been provided with an initial Conference Plan Brief to assist you in determining the resource requirements. You will use this to develop a preliminary cost estimate, which you will discuss and confirm at a meeting with the project team.

Complete the following activities:

1. Determine project costs
Review the case study information and the Conference Plan Brief.

As set out in the organisation's policy and procedures, you are required to review the work breakdown structure included in the conference plan brief and, for each of the tasks indicated, determine the resource requirements as well as the associated costs. The organisation's policy and procedures also stipulate that you are to provide an estimate of costs using a bottom-up estimating technique.

You will need to use the Internet to research cost of some of the activities included in the work breakdown structure, as well as use the information provided in the conference brief. You must then develop a cost management plan that includes a project budget for discussion at a meeting with the project team (your assessor).

Use the Project Cost Management Plan Template to guide your work.

2. Send an email to the Project Team (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment, and ask for an appointment for a meeting to discuss it.

Attach your Project Cost Management Plan to the email.

3. Participate in a meeting with the Project Team
You are required to meet with the Project Team to discuss and confirm the project scope management plan.

At the meeting, you will be required to go through your project cost management plan, carefully explaining each part of the project cost management plan, as well as your proposed project budget. Be prepared to answer questions and to note feedback provided so as to inform the final project cost management plan.

During the meeting, you will need to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding

4. Finalise project cost management plan
Based on the discussion with the project team, you are now required to finalise your project cost management plan. Use the feedback from the meeting and incorporate this into your project cost management plan.

When you have completed the project cost management plan, send it to the Senior Management team for final approval.

5. Send an email to Senior Management (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment, listing the changes that you have made to it.

Assessment Task 3: Cost monitoring and control project

Task summary
In this assessment task, you will need to monitor and control project costs by managing a cost change request and reporting on cost management issues.

Instructions
Carefully review the following information:

The conference project commenced three months ago.

Budgeted costs for the conference were finalised as:
You have just received the following information:
• The first choice of venue is unavailable on the day you require. The second-choice venue will require an additional $5,000.
• One of the speakers has just pulled out. The next best option is another speaker who has advised that his fees will be $3,500 rather than the allocated $2,000 per speaker.

Complete the following activities:

1. Monitor project cost
Review the case study information and analyse the costs to identify current project costs and calculate any cost variations.

As set out in the organisational procedures, you are required to write a short report to your manager on project costs that addresses:
• Project costs to date
• Analysis of variations to projected costs and actions required.

2. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
The email text should include your review and analysis of the project costs 

Soon after you sent the email in activity 2, you received the following email:

Dear Project Officer

I recently attended a conference that included a comedian and singer. I found this to make the conference much more interesting and memorable. I would like to incorporate this into our program. I have made some enquiries and identified two suitable candidates. This would involve an additional cost of $4,000 which I am hoping can be accommodated.

Regards

Marketing Manager

3. Develop a project change request and analysis
Prepare a change request and analysis in the format that you identified in your project cost management plan.

4. Develop a conference finances report.
Write a short report for the Senior Management Team about project costs from the completed conference.

Use the Conference Finances Report Template to guide your work.

Assume that the conference is now completed and you have been provided with the final costs. Review the information provided to calculate and report on the success of the conference assuming that a 50% profit was required.

Assume also that Senior Management has identified that, while the conference had a very positive outcome, they would like further recommendations on best practice project cost estimating. Provide at least four recommendations which you consider would improve project estimating for future projects.

5. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment, and seek their feedback and approval to move forward with the project.

Attachment:- Manage project cost.rar