BSBPMG514 Assessment - JEISSON GONZALEZ.pdf - BSBPMG514 Manage project cost ASSESSMENT COVER SHEET Student ID sv045585 Student Name First Name JEISSON

BSBPMG514 Assessment - JEISSON GONZALEZ.pdf - BSBPMG514...

This preview shows page 1 out of 27 pages.

You've reached the end of your free preview.

Want to read all 27 pages?

Unformatted text preview: BSBPMG514 Manage project cost ASSESSMENT COVER SHEET Student ID sv045585 Student Name First Name: JEISSON ARMANDO Last Name: GONZALEZ MONROY Student’s declaration: By submitting this assessment, you are acknowledging and agreeing to the following conditions: Please check each item in the box, if you agree. ✔ I have read and understood the details of the assessment. ✔ I have been informed of the conditions of the assessment and the appeals process and understand I may appeal if I believe the assessment is not equitable, fair or just. ✔ I agree to participate in this assessment, and I am ready to be assessed. ✔ I declare that the attached is my own work or in collaboration with other members of a group as required. ✔ I have acknowledged all sources where appropriate in accordance with ILSC’s Academic Integrity Policy, and I believe other group members have done the same. Submitting your assessment: Complete all assessment tasks, save, and upload in Moodle for grading. Please view the videos on submitting work through Moodle in the FAQ section of your VET Orientation course. Check Moodle grades and feedback on your submission. You will receive an email notification when your assessment has been graded. Assessor’s acknowledgement: Please verify each of the following principles of assessment by placing a tick in each box. Refer to the assessor's handbook for further information if required. ✔ Authentic: The assessor is assured that the evidence presented for assessment is the learner’s own work. ✔ Valid: The assessor is assured that the learner has the skills, knowledge and attributes as described in the module or unit of competency and associated assessment requirements. ✔ Current: The assessor is assured that the assessment evidence demonstrates current competency. This requires the assessment evidence to be from the present or the very recent past. ✔ Sufficient: The assessor is assured that the quality, quantity and relevance of the assessment evidence enable a judgement to be made of a learner’s competency. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 1 of 27 How to work through your assessment Your assessment is designed to assess your performance of competency for the unit BSBPMG514 Manage project cost, Release 1. Your assessor will help you fully understand assessment requirements for this unit. The features of this assessment are detailed in the following table. Features of the assessment resource Explanation Assessment information and scope This unit describes the skills and knowledge required to identify, analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism to control project cost. It applies to individuals responsible for managing and leading a project in an organisation, business, or as a consultant. The key outcomes include: Assessment overview Complete all the following tasks Determine project costs Monitor and control project costs Complete cost-management processes To demonstrate competency, you must successfully complete all assessment tasks: Task 1: Online Moodle Quizzes Task 2 : Short Answer Questions Task 3: Project - Manage Cost within a Project Part 1: Cost Management Plan Part 2: Cost monitoring and control Part 3: Reflection Summary Task 1: Online Moodle Quizzes Complete online Moodle quizzes for each topic to demonstrate your knowledge of the unit requirements. These are self-marking. Task 2 : Short Answer Questions Task 3: Project – Manage Cost within a Project Develop a cost management plan, meeting with stakeholders in a simulated work environment and monitoring and controlling project costs as well as reporting on cost management issues. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 2 of 27 Task 1: Please complete the following quizzes on Moodle: Topic 1: Online Quiz Topic 2: Online Quiz Topic 3: Online Quiz Task 2: Short Answer Questions 1. List the three main processes of project cost management that are part of the Planning Process Group. (minimum 20 words) Resource planning: The project activities need to be defined. Cost estimating: Predict how much it will cost to perform the project activities. Cost budgeting: The budget gives an overview of the periodic and total costs of the project Cost control: Periodical monitoring of project costs and progress 2. Define project cost management. (minimum 50 words) Cost management is the process of estimating, allocating, and controlling the costs in a project. It allows a business to predict coming expenses in order to reduce the chances of it going over budget. Projected costs are calculated during the planning phase of a project , as the project plan is executed, expenses are documented and tracked, once the project is completed, predicted costs vs. actual costs are compared, providing benchmarks for future cost management plans and project budgets. 3. List a minimum of three (3) environmental enterprise factors that can influence the plan cost management process. The environmental factors of the company refer to conditions that are not under the control of the project team and that influence, restrict or direct the project. The environmental factors of the company that may influence the process Monitor and Control Project Work include, among others: • Government or industry standards (eg, regulatory body standards, codes of conduct, product standards, quality standards and manufacturing standards); • The work authorization systems of the organization; • The risk tolerances of the interested parties; 4. List four Organisational Process Assets that can influence a project cost plan. *Financial control procedures *The procedures for the management of incidents and defects *Procedures for the control of changes, including those related to variations in scope, schedule, cost and quality. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 3 of 27 5. In your own words list and explain four (4) tools and techniques which are used in the estimate cost process? (200 words for each tool or technique) ANALOGOUS ESTIMATING This technique is employed to estimate the project cost when limited detail about the project is available. Therefore, this technique does not provide a very reliable estimation. The primary benefits of this technique are its lower cost and quick results. In analogous estimation, the cost of the project is estimated by comparing it with similar projects previously completed by your organization. Here, you will look into your organization’s historical records (i.e., an organizational process assets) for prior completed projects similar to your own. You will select the project which is closest to your project and use your expert judgment to determine the cost estimate of your current project. The analogous estimating is also known as the top-down estimating. PARAMETRIC ESTIMATING Like analogous estimating, parametric estimation uses historical data to calculate cost estimates; however, it also utilizes statistical data. It takes variables from similar projects and applies them to the current project. For instance, in a previous project, we take the cost of concrete per cubic meter, then calculate the concrete requirement for the current project and multiply it with the cost obtained from the previous project. This will provide the total cost of concrete for your current project. In the same way, you can calculate the cost of other parameters (men, materials, and equipment). The accuracy of this process is better than the analogous estimation because it employs more than one data set. THREE-POINT ESTIMATING This technique is employed to reduce the biases and uncertainties in estimating assumptions. Three estimates are determined instead of finding one estimate, and then their average is taken to reduce the uncertainties, risks, and biases. PERT is the most commonly used method in three-point estimation technique. Three PERT estimates are as follows: Most Likely Cost (Cm): Considers a typical case and everything goes as usual. Pessimistic Cost (Cp): Considers the worst case and assumes that almost everything goes wrong. Optimistic Cost (Co): Considers the best case and concludes that everything goes better than presumed. PERT estimate formula is: Ce = (Co + 4Cm + Cp) / 6 Where Ce = Expected Cost Estimates derived from this technique are better than the two techniques presented earlier because it minimizes the biased view from the data and provides a more accurate estimate. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 4 of 27 BOTTOM-UP ESTIMATING The bottom-up estimating technique is also called the “definitive technique.” This technique is the most accurate, time-consuming, and costly technique for estimating the cost of a project. Here, the cost of every single activity is determined with the highest level of detail at the bottom level and then rolls up to calculate the total project cost. Here, the total project work is broken down into the smallest work components. Each component cost is estimated, and finally, it is aggregated to determine the project’s cost estimate. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 5 of 27 6. Explain the process of estimated costs and its key benefits? (minimum 50 words) Estimated costs represent only an attempt in anticipation of actual costs and are subject to corrections as they are compared with them. This system consists of predetermining the unit costs of the production estimating the value of the direct raw material, the direct labor and the indirect charges that are considered should be obtained in the future. Comparing the estimated costs with the real ones later and adjusting the corresponding variations. 7. Describe the process Determine Budget and its Key benefit? (50-100 words) You can find two great advantages when planning and making budgets: facilitate the adequate use of resources and show the results that will be obtained from implementing the plans. Main steps for creating a budget: Main steps to make a budget * Determine the restrictions: Objectives or requirements, term and resources. * Specify resources: Labor, external services, supplies, capital goods and others. * Assign the monetary value * Periodify 8. List 5 inputs that are used to determine a budget? *Cost Estimates of Activities *Basis of the Estimates *Base Line of Reach *The Chronogram of the project *Resource Calendars *Determine the Budget 9. What is a cost management plan and what is its purpose? (minimum 100 words) A cost management plan is a document that details how you will manage the costs of your project. As well as defining how your project costs will be managed, your cost management plan will also identify who is responsible for managing them and it describes how the project costs will be measured. It will outline who has the authority to approve any changes to the project budget and who you need to report any findings to. Your cost management plan can allow you to predict the expenditure of your project and reduce the chance of going over budget. 10. What is Earned Value Management (EVM)? Earned Value Management (EVM) helps project managers to measure project performance. It is a systematic project management process used to find variances in projects based on the comparison of worked performed and work planned. EVM is used on the cost and schedule control and can be very useful in project forecasting. The project baseline is an essential component of EVM and serves as a reference point for all EVM related activities. EVM provides quantitative data for project decision making. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 6 of 27 11. Explain Cost Performance Index (CPI) and what is its common formula? The cost performance index (CPI) is a measure of the financial effectiveness and efficiency of a project. It represents the amount of completed work for every unit of cost spent. As a ratio it is calculated by dividing the budgeted cost of work completed, or earned value, by the actual cost of the work performed. If the ratio has a value higher than 1 then it indicates the project is performing well against the budget. A CPI of 1 means that the project is performing on budget. A CPI of less than 1 means that the project is over budget. 12. What is Schedule Performance Index (SPI) and its formula? (minimum 50 words) The Schedule Performance Index indicates how efficiently you are actually progressing compared to the planned project schedule. The Schedule Performance Index (SPI) is a measure of schedule efficiency, expressed as the ratio of earned value to planned value.” Schedule Performance Index = (Earned Value) / (Planned Value) SPI= EV / PV 13. If a cost estimate is provided as $50 000 +/- 20% what is its range? The range is +/-10.000 That is to say: 40.000 to 60.000 14. A project has an Earned Value (EV) of $10 000, Actual Cost (AC) of $8000 and Planned Value (PV) of $8000. Using the correct formula what is the project’s Schedule Variance (SV)? Schedule Variance can be calculated by subtracting planned value from earned value. Schedule Variance = Earned Value – Planned Value SV = 10000 - 8000 = 2000 15. You’re working on a project to be completed in 14 months and the cost of the project is $1 million. Seven months have passed and $620,000 has been spent but you find only 40% of the work has been completed so far. Using the correct formula find the Cost Performance Index (CPI) for this project? Is the Project currently over or under budget? The Cost Performance Index can be determined by dividing the earned value by actual cost. Cost Performance Index = (Earned Value) / (Actual Cost) CPI = 400000 / 620000 = 0.64 The Project is by far over the budget Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 7 of 27 16. You’ve discovered that fluctuating international exchange rates mean you cannot meet your Current Project Cost baseline. You completed a bottom up estimate of the remaining work which you have calculated at $2.5 million. The project’s current actual cost (AC) is $3.5 million. Using the correct forecasting formula calculate the project estimate at completion. (You must show formula and breakdown). Bottom up EAC 2.5m + Actual cost (so far) 3.5 = 6 millions Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 8 of 27 Task 3: Project – Manage Cost within a Project Objective Demonstrate the skills and knowledge to identify, analyse and refine project costs to produce a budget, and to use this budget as the main instrument to control project cost. Assessment context and overview In this assessment, you will be determining project costs and budget for a conference as Project Officer for ‘Manager Networks’, the case study organisation for this assessment. You may choose another case study, however, you must get approval from your Trainer. In Part 1, you will be developing a cost management plan and participating in a project meeting to discuss the project budget. In Part 2, you will be monitoring and controlling project costs and reporting on cost management issues. In Part 3, you will be reflecting on what you have learned about project cost control. Your assessor will provide you with clear instructions before commencing each part of the assessment. Resources required The following documents are required for this project. You will find these in Moodle assessment tab for this unit. Part 1: Appendix 1 - Conference Plan Brief Appendix 2 - Project Cost Management Plan Template Part 2: Appendix 4 - Conference Finances Report Template Assessment conditions Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the management and leadership – project management field of work and include access to: workplace documentation, including budgets and other financial documents case studies and, where possible, real situations. Reasonable adjustment If you are unable to undertake the assessment task as designed, please speak to your assessor. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 9 of 27 Note to Students – Assessment and Project Management Tools and Technology It's strongly advised students use a Project Management Information System (PMIS). A PMIS is typically a software management system used to calculate schedules, costs and expectations and most PMIS will automate and control project management systems. There are also a number of excel templates online to assist students in completing assessments. PMIS software can normally assist in: WBS Creation Gantt and scheduling activities Earned Value Management controls Quality control Calculating Functions Reporting Resource levelling There are many off the shelf products, including Microsoft Project, as well as free open source products like Project Libre. More cloud-based solutions (projectmanager.com, Smartsheet.com) are available. Discuss these options with your trainer. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 10 of 27 Part 1: Cost management plan Instructions In your role of Project Manager for ‘Manager Networks’, you’re required to determine project costs by researching and documenting the costs included in a Work Breakdown Structure (WBS). You’ll 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. Read the business case study below and follow the steps to complete Part 1. You must: Update the WBS and Gantt chart scheduling activities Develop a project cost management plan Develop cost/resource estimates and project budget Participate in a project team meeting Write an email to Regina the senior manager Case Study You are the new project manager for ‘Manager Networks’, an organisation that provides networking events for business people across Australia. The senior manager is Regina and her contact email address is [email protected] Although you have been given delegated authority to manage the costs and budget, you will need to contact her with project updates. The previous project manager was let go due to the fact that work was not being completed and that they had mislead Richard Green the CEO/Owner. Very little of the project has been completed. The venue hasn’t been booked, budgets and cost estimates are not completed. The event co-ordinator is currently confirming speaker availability. Initially the project had a 6-month timeline, due to the fact the conference is planned for 23rd November 2018. You have a 12-week period from Monday 10th September 2018 including a week to wrap up after the conference. The company regularly runs networking events and decided to launch an annual conference event for the first time, with a key focus on business leadership. Most attendees are expected to be regular to Manage Network Events. Greystone College Australia: BSBPMG514 Assessment Version 3 0119 Page 11 of 27 CEO Richard Green, has asked that you do not use previous documentation not be used and project be remodelled and reworked. He has supplied you with an extracted WBS and incomplete Gantt chart and asks you to finalise scheduling before doing project cost plan/budget and estimates. The proposed venue has not been confirmed, though was quoted at $45,000 for 2 days: Day 1 - set up Day 2 - conference. In house catering is available for a minimum of $69 per head which includes breakfast, morning tea lunch and afternoon tea. Marketing has secured the following sponsorship: Presenting Platinum Sponsor $100 000 2 Gold sponsors at $25 000 5 Silver sponsors at $9000 20 Bronze sponsors at $2000 They currently have 100 tentative company delegates attending at $1250 per head. They also have 15 individual bookings at $1500 per head. CEO Richard Green has requested that a ...
View Full Document

  • Three '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes