Reference no: EM132810944

BSBPMG514 Manage project cost - Australian National Institute of Business and Technology

LO 1. Determine project costs

LO 2. Monitor and control project costs

LO 3. Complete cost-management processes

Answer the activity in as much detail as possible, considering an organisational requirements.

1. Your assessor will assign you a project. The budget will be regulated and a reasonable period of time set to complete the project will be set by your assessor. In small groups (2-5 people), you must complete the following tasks:

• Working within your set budget, discuss and identify the resources you will require for the project with your group
• Design and complete a resource requirement sheet for each of the following major resources relevant to your project:
o equipment
o facilities
o fees and charges
o human resources
o materials
o services
o statutory costs

• Prepare a project budget with your group, using either the top-down approach or the bottom-up approach. You must answer the following question:
o what approach did you use?
o how did you identify the project costs?
o what are the direct and indirect costs?
o are there any possible risks that may occur throughout the project?
o what is your budget tolerance?

• Prepare a cost management plan for your project. You must answer and complete the following questions:
o what tasks produce costs?
o what materials are required?
o create a timeline for the completion of the project
o identify one cost control tool you may use to manage the project costs
o identify who will manage the project costs
o provide details of any mathematical formulae you have used to measure the costs of the project
o provide details of any contingencies
o have you identified any key performance indicators you will use? How will these KPI's be measured?

2. The timescale to complete the following tasks will vary depending on your assigned project. Your assessor will notify you after a reasonable period of time to complete the following:

• In order to monitor the estimated costs against your actual expenditure within the project, design and complete a critical path schedule with your group. You must ensure the following are recorded:
o estimated costs vs. actual costs
o possible alternative actions you may take.
o who would approve the alternative actions you have suggested?

• Lastly, you must demonstrate your ability to identify all areas of expenditure. Create a financial report that is laid out clearly and is easily understandable. The report must review the cost management processes you took.

Attachment:- Manage project cost.rar