Reference no: EM133105692
Project Cost Management
Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months for under $200,000.
Tasks
Question 1: Prepare and print a one-page cost model for this project using spreadsheet software. Use the following WBS, and be sure to document your assumptions in preparing the cost model. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000.
1. Project management
2. Requirements definition
3. Web site design
3.1 Registration for recreational programs
3.2 Registration for classes and programs
3.3 Tracking system
3.4 Incentive system
4. Web site development
4.1 Registration for recreational programs
4.2 Registration for classes and programs
4.3 Tracking system
4.4 Incentive system
5. Testing
6. Training, rollout, and support
Question 2: Using the cost model you created in Task 1, prepare a cost baseline by allocating the costs by WBS for each month of the project.
Question 3: Assume that you have completed three months of the project. The BAC was $200,000 for this six-month project. You can also make the following assumptions:
PV = $120,000
EV = $100,000
AC = $90,000
a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
b. How is the project doing? Is it ahead of schedule or behind schedule? Is it under bud get or over budget?
c. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?
d. Use the SPI to estimate how long it will take to finish this project.
e. Sketch an earned value chart using the preceding information. See Figure 7-5 as a guide.
|
Determine the operating costs using the account analysis
: Sales (5,000 microwave ovens) $1,350,000. Determine the operating costs using the account analysis method if Miller's expects to sell 6,500 units next year
|
|
What is its return on equity
: Question - Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.2. What is its return on equity (ROE)
|
|
What is the value of a share of astrazeneca today
: After this time, it is expected growth will drop to 5% and stay there for the expected future. What is the value of a share of AstraZeneca today
|
|
Determine how you will measure progress on meeting
: Determine how you will measure progress on meeting the requirements. For example, you might have employees log into the system as part of the training program
|
|
Prepare a cost baseline by allocating the costs
: Prepare a cost baseline by allocating the costs by WBS for each month of the project - What is the cost variance, schedule variance, cost performance index
|
|
Prepare the summary, adjusting and closing entries
: Service revenue, $108,000, of which $32,400 was on account and the balance was received in cash. Prepare the summary, adjusting and closing entries
|
|
Recreation and wellness intranet project
: Discuss how determining these milestones might add activities or tasks to the Gantt chart. Remember that milestones normally have no duration, so you must have
|
|
What is the stockholders equity
: Astrik Inc. has the following assets and liabilities (in millions): Assets $5,400 and Liabilities 3,150. What is the stockholders equity
|
|
Develop a strategy for scope validation and change control
: Develop a strategy for scope validation and change control for this project. Write a short paper summarizing key points of the strategy
|