# week3-Apply: Signature Assignment: Cost Model

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 6 months for under \$200,000.
Use the Cost Estimate template and Cost Baseline template to assist with this assignment.
Prepare and upload a 1-page cost model for this project using spreadsheet software. Use the following work breakdown structure (WBS), and document your assumptions in preparing the cost model. Assume a labor rate of \$100 per hour for the project manager and \$60 per 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.
Project management
Requirements definition
Website design
a. Registration for recreational programs
b. Registration for classes and programs
c. Tracking system
d. Incentive system
Website development
a. Registration for recreational programs
b. Registration for classes and programs
c. Tracking system
d. Incentive system
Testing
Training, rollout, and support
Using the cost model you created in the first task, prepare a cost baseline by allocating the costs by WBS for each month of the project.
Assume that you have completed 3 months of the project. The BAC was \$200,000 for this 6-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. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?
c. Use the SPI to estimate how long it will take to finish this project.
After completing your charts, write a 150-word follow-up in which you complete the following:
Explain how the project is doing based on the CPI and SPI. Is it ahead of schedule or behind? Is it under budget or over?
Describe the strategies or steps that should be taken for human resource management to avoid additional costs.
Describe the strategies or steps that should be taken for resource activity management to avoid additional costs.
Recommend 2 tools to support these strategies and explain why these tools would be beneficial.
APA format!
ATTACHED FILE(S)
Sheet1
Cost Estimate
Project Name: Date:
Note: Enter your WBS, hours, labor rates, etc. Add/delete rows and columns as needed and check all formulas (bolded below).
Internal \$/hour Internal External \$/hour External Total Non-labor \$ Total Cost
WBS Categories Labor \$ Total Labor \$ Total Labor
1. Initiating 200 \$ 65 \$ 13,000 \$ – 0 \$ 13,000 \$ 13,000
2. Planning 600 \$ 60 \$ 36,000 \$ – 0 \$ 36,000 \$ 36,000
3. Executing \$ – 0 \$ – 0 \$ – 0 \$ – 0
3.1 Course design and development \$ – 0 \$ – 0 \$ – 0 \$ – 0
3.1.1 Supplier management training 600 \$ 60 \$ 36,000 600 \$ 150 \$ 90,000 \$ 126,000 \$ 100,000 \$ 226,000
3.1.2 Negotiating skills training 300 \$ 55 \$ 16,500 300 \$ 150 \$ 45,000 \$ 61,500 \$ 50,000 \$ 111,500
3.1.3Project management training 400 \$ 60 \$ 24,000 400 \$ 150 \$ 60,000 \$ 84,000 \$ 50,000 \$ 134,000
3.1.4 Software applications training 400 \$ 60 \$ 24,000 400 \$ 150 \$ 60,000 \$ 84,000 \$ 50,000 \$ 134,000
3.2 Course administration 400 \$ 55 \$ 22,000 300 \$ 250 \$ 75,000 \$ 97,000 \$ 80,000 \$ 177,000
3.3.Course evaluation 300 \$ 55 \$ 16,500 \$ – 0 \$ 16,500 \$ 16,500
3.4 Stakeholder communications 300 \$ 55 \$ 16,500 \$ – 0 \$ 16,500 \$ 16,500
4. Monitoring and Controlling 500 \$ 55 \$ 27,500 \$ – 0 \$ 27,500 \$ 27,500
5. Closing 200 \$ 55 \$ 11,000 \$ – 0 \$ 11,000 \$ 11,000
Subtotal \$ 903,000
Reserves \$ – 0 \$ – 0 \$ – 0 90,300.0
Total 4,200 243,000 2,000 850 330,000 573,000 330,000 \$ 993,300
Assumptions
Sheet2
Sheet3
Sheet1
Cost Estimate
Project Name: Date:
Note: Enter your WBS and costs each month. Add/delete rows and columns as needed and check all formulas (bolded below).
Month
1 2 3 4 5 6 7 8 9 10 11 12 Total Cost
WBS Categories
1. Initiating 13,000 \$ 13,000
2. Planning 6,000 16,000 8,000 1,000 1,000 1,000 1,000 1,000 1,000 \$ 36,000
3. Executing – 0 – 0 – 0 \$ – 0
3.1 Course design and development – 0 – 0 – 0 \$ – 0
3.1.1 Supplier management training 5,000 73,667 73,667 73,667 \$ 226,000
3.1.2 Negotiating skills training 5,000 35,500 35,500 35,500 \$ 111,500
3.1.3Project management training 5,000 43,000 43,000 43,000 \$ 134,000
3.1.4 Software applications training 5,000 43,000 43,000 43,000 \$ 134,000
3.2 Course administration 17,000 53,333 53,333 53,333 \$ 177,000
3.3.Course evaluation 3,000 3,000 3,000 7,500 \$ 16,500
3.4 Stakeholder communications 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 \$ 16,500
4. Monitoring and Controlling 1,000 2,000 2,000 2,000 3,000 3,500 3,000 3,000 2,000 3,000 2,000 1,000 \$ 27,500
5. Closing 8,000 3,000 \$ 11,000
Subtotal \$ 903,000
Reserves* – 0 – 0 – 0 90,300 \$ 90,300
Total 20,000 19,500 31,500 199,667 200,667 218,167 61,833 61,833 60,833 12,000 11,500 95,800 993,300
*Reserves are all entered in month 12
Sheet2
Sheet3

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