Vendor Website 2 50000 13115 Vendor Website 3 50000 13116 Vendor Website 4

Vendor website 2 50000 13115 vendor website 3 50000

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Vendor Website 2 $50,000 1.3.1.15 Vendor Website 3 $50,000 1.3.1.16 Vendor Website 4 $50,000
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1.3.1.17 Vendor Website 5 $50,000 1.3.1.18 Vendor Website 6 $50,000 1.3.1.19 Vendor Website 7 $50,000 1.3.1.20 Vendor Website 8 $50,000 Total Cost Baseline $9,700,000 Table 1, Project Cost Breakdown Reporting Format All reporting requirements for this project in regards to cost are outlined in this section. Costs will be reported and provided in the following manner: 1. Weekly status reports will be provided to the Project Manager from both internal and external team leads via email. 2. Cost reports will be provided in an overall project-to-date summary to the Project Sponsor and Steering Committee from the Project Manager via monthly status meetings. All reports will include actuals vs planned budget calculations and provide details and subsequent analysis of any identified variances (whether they be positive or negative). Further details on expectations and approach are provided in the following sections of this Cost and Procurement Management plan document. Cost Variance Response Process To have high regulation, communication, and control over the project costs, to ensure that they do not exceed budgeted costs, the WRPS project has recognized the following acceptable variance thresholds in order to be proactive in identifying any impactful cost discrepancies. The Project Sponsor and Project Manager will require a Schedule Performance Index (SPI) greater than 0.8. At any time the project SPI falls below 0.8, immediate notification to the PM is expected and required. Additional analysis will also be required in order to summarize the reason for the lowered SPI
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measurement and what corrective actions can be implemented. This approach is based on the PMBOK definition that outlines that “an SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned.” In addition to the SPI measurements, the Cost Performance Index (CPI) will also be used by the project team to assist in the assessment of the budgeted spending. The cost performance index is determined by measuring the ratio of earned value (also known by the abbreviation of EV) to actual costs (also known by the abbreviation of AC). The equation to determine the cost performance index can be derived by the following equation: CPI=EV divided by AC. The Project Manager and Project Sponsor have also identified that the acceptable limit for this measurement is 0.8, similar to the SPI. And, as with the SPI measurements, if the project CPI falls below 0.8, immediate notification to the PM is required for the same reasons as stated above. Cost Change Control Upon notification of any change to budgeted costs, the Project Manager will request a Corrective Action Plan that will list options for resolution to be drafted. This, along with a Change Control Request (if necessary) will be submitted to the Project Manager for review. Further review will be done by the Project Sponsor and Steering Committee. Upon completion of their review, the determined resolution
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