Assignment: Budget Estimating
This assignment consists of 2 parts: questions about budget estimation and developing a budget.
Part 1 Questions
Responses to the following questions
1. You are providing a review of contractor bids for a component of your upcoming project. What can be done to determine whether or not a vendor's bid is reasonable?
2. Describe the conditions for which parametric, analogous and bottom up estimation techniques work best, and provide 2 examples in support of each method.
3. Why is a cost management plan important? How does the plan benefit the project manager?
Part 2 Budget EstimatingUsing the same scenario from the previous unit on scheduling, create a time-phased budget for the following project. Prepare a figure like Exhibit 10.9, CPM 4e, that illustrates the daily and cumulative costs for the resource-leveled project.
Assume the following hourly rates:
Alcides $45 / hr.
Joan $50 / hr.
Part 3 Budget Estimating
You are the project manager for a process improvement project for Company XYZ. Prepare a figure like Exhibit 10.9 that illustrates the weekly and cumulative costs for the resource-leveled project.
Hint: To accomplish this exercise, you'll need to create a project schedule in MS Excel (or by hand), create resource assignments, assign costs to each resource, and assign the resources to each task. Some resource leveling will be required.
In this project, you have 3 employees: Ann, Becky and Clive. Each person is limited to the amount of time allocated to your project. Ann and Becky are available 30 hours/week; Clive is available 20 hours/week. There hourly rates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.