Reference no: EM133024932

BSBPMG533 Manage Project Cost

Learning outcomes

1.1 Identify resource requirements for individual tasks identified in the work breakdown structure in consultation with relevant stakeholders
1.2 Estimate project costs for project budget to be prepared within agreed tolerances
1.3 Develop a project budget
1.4 Develop a cost-management plan for project finances according to scope of responsibility
2.1 Implement agreed financial-management processes and procedures for monitoring actual expenditure against budget
2.2 Identify cost variations and evaluate alternative actions
2.3 Implement and monitor agreed actions for maintaining financial objectives
2.4 Provide accurate and timely financial reports
3.1 Conduct activities to signify financial completion according to task and organisational requirements
3.2 Review project outcomes using available records
3.3 Review cost-management issues and document improvements

ASSESSMENT TASKS

There are two tasks to complete for this unit of competence:

Task 1 - Written responses

This activity has been designed to assess your knowledge and understanding of managing project cost within projects.
This task consists of questionnaires which reflect the knowledge of project management (PMBOK). The responses should include the following:
• Must be relevant to your project as stated in BSBPMG530 Manage Project Scope, unless otherwise stated. Responses should link to the theoretical aspects of project cost management followed by relevant experience / exposure of your nominated project you have recently or are currently working on to progress both your studies and your projects simultaneously. Your response to the questionnaires must relate to the same project topic chosen for BSBPMG530 Manage Project Scope subject unit.
• However, if you have started with this subject topic as an initial attempt of this course, you must negotiate and discuss with your Assessor to consider a project that you recently or are currently working on or a project that you have worked in the past.
• If workplace project exposure does not apply to you, you must negotiate with your assessor to use a scenario/case study examples that you will find on e-learning. However, case study examples are a suitable substitute where workplace examples cannot be provided. Case studies are available on e-learning. Theory answers without reference to your experience will not be assessed as satisfactory
• Demonstrate that you can or have applied what you have learnt to your project, regardless of whether you have undertaken all the performance requirements in your workplace.

Task 2 - Portfolio of Evidence

The portfolio of evidence comprises the assessment of the application of your project cost knowledge. You will need to demonstrate your costmanagement skills applied to a project which is based on the project you have chosen for BSBPMG530 Manage Project Scope subject unit. It should state relevant experience / exposure of your nominated project you recently or are currently working on to progress both your studies and your projects simultaneously.

If you have started with this subject topic as an initial attempt of completing this course, you must negotiate and discuss with your Assessor to consider a project that you recently or are currently working on or a project that you have worked in the past.
If workplace project exposure does not apply to you, you must negotiate with your assessor to use a scenario/case study examples that you will find on e-learning. However, case study examples are a suitable substitute where workplace examples cannot be provided. Case studies are available on e-learning.

To such a degree you must negotiate with your assessor to use a scenario/case study examples that you will find on e-learning.

Your nominated project must be agreed between you and your Assessor so that its methodology, tools and techniques accommodate to the performance requirements of each Unit of Competency prior to start of work on the unit.Your project must comprise:
a comprehensive, detailed and integrated project management plan
• a formal communications plan
• a devoted and project-based budget
• formal and planned involvement with a wide range of stakeholders
• a documented risk, issues and change-management methodology
• a quality plan with assurance and control processes
• a project team-based environment.

Evidence of the following is important:
• demonstration of cost management for several complex projects
• knowledge of cost management plans, tools, issues and likely challenges

To achieve competency, you are required to demonstrate knowledge, skills and experience to:
Performance Evidence
• work closely with others to determine resources against budgetary frameworks
• prepare a budget and cost-management plan for a project
• monitor costs across a project's life cycle including solving cost variations and analysing possible alternatives
• record expenditure, create accurate financial reports and review cost-management processes.
Knowledge Evidence
• explain appropriate budgeting processes, tools and techniques
• describe methods and tools for costing and cost analysis
• explain strategies for managing costs and their application in different situations
• outline processes for reviewing costs against outcomes
• summarise key organisational policies and procedures applicable to this role.

I. TASK 1 - Written Responses
Q1: Qualifying Cost and benefits
Q2: Cost of non-conformance on quality requirements
Q3 Tools and techniques use to manage quality

II. TASK 2 - Portfolio of Evidence
A. Estimating Project Costs
1. Estimating Project Costs
2. Explanation to stakeholders and approval
B. Development of Cost Management Plan
C. Monitor and Control Project Costs
1. Two Cost Analysis Methodsfor cost variations
2. Budget Performance Report
3. Evidence and reason of re-planning to revive original budget
D. Cost Management Processes( 50 marks Total)
Q1. Financial completion activity
Q2. Performance review of cost management processes and procedures
Q3. Project performance related to cost
Q4. Management of variances
Q5. Changes of cost implications and recommendations
Q6. Project risk issues associated to project budget
Q7. Management of project cost risk issues
Q8. Evaluation of effective cost and budget controls
Q9. Project Sponsor's satisfaction level

Attachment:- Project Cost Management.rar