ISBN: 1285452348 ISBN-13: 9781285452340 Work Breakdown Structure Template for Gr

Question

ISBN:

1285452348

ISBN-13:

9781285452340

Work Breakdown Structure Template for Green Computing Research Project

Prepared by:                                      Date:  

1.0Main category 1

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1.4 Subcategory

2.0Main category 2

2.1 Subcategory

2.2 Subcategory

2.2.1 Sub-subcategory

2.2.2 Sub-subcategory           

2.3 Subcategory

2.4 Subcategory

3.0Main category 3

3.1Subcategory

3.2Subcategory

3.2.1 Sub-subcategory

3.2.2 Sub-subcategory  

3.3Subcategory

3.4Subcategory

4.0Main category 4

4.1Subcategory

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Part 4: Project Cost Management

Your project sponsor has asked you and your team to refine the cost estimate for the project so that a solid cost baseline exists for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months or less for under $500,000. Initial estimates suggested that about $300,000 would be spent on internal labor. You mistakenly thought that travel costs would be included in that $300,000, but now you realize that travel is a separate cost item. The trip to England early in the project cost $6,000, which you had not expected.

Tasks

1.      Prepare and print a one-page cost estimate for the project, similar to the one provided in Chapter 7. Use the WBS categories you created earlier, and be sure to document assumptions you make in preparing the cost estimate. Assume a burdened labor rate of $100/hour for yourself (the project manager), $90/hour for Teresa, James, and Le, and $80/hour for Matt. Assume about $200/hour for outsourced labor.

2.      Using the cost estimate you created in Task 1, prepare a cost baseline by allocating the costs by WBS for each month of the project.

3.      Assume that you have completed three months of the project and have actual data. The BAC was $500,000 for this six-month project. Also assume the following:

PV = $160,000

EV = $150,000

AC = $180,000

Using this information, write a short report that answers the following questions.

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. Use the SPI to estimate how long it will take to finish this project. Sketch an earned value chart using the preceding information, including the EAC point. See Figure 7-5 as a guide. Write a paragraph that explains the information in the chart.

c.       How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Should you alert your sponsor or other senior management and ask for assistance?

4.      Several tasks that involve getting inputs from consultants outside your own company have cost more and taken longer to complete than planned. You have talked to the consultants several times, but they say they are doing their best. You also underestimated travel costs for this project. Write a one-page paper that describes corrective action you could take to address these problems.

Comment

Explanation / Answer

Answer:a Cost Variance is calculated as EV-AC and indicates the difference between the budgeted cost and the actual cost of completed work.

Cost Variance = EV-AC = $150,000 – $180,000 = - $ 30,000

Schedule Variance is calculated as EV-PV and indicates the degree to which the value of completed work differs from that planned.

Schedule Variance = EV-PV = $150,000 - $160,000 = -$ 10,000

Cost Performance Index (CPI) = EV/AC = 150,000/180,000 = 0.833 or 83.33%

Schedule Performance Index = EV/PV = 150,000 /160,000 = 0.9375 or 93.75%

Answer:b

EAC = BAC/CPI = $ 500,000/.8333 = $ 600,024

The project is performing worse than planned because the new estimate is $600,024 which is $100024 more than initial estimate.

Estimated time to complete = Time estimate / SPI = 12 months / .9375= 12.8

The project is projected to take 12.8 months to complete so it is estimated that it will take 0.8 months more than planned.                                                                         

Answer:c The project is not doing well. Because the Cost variance and Schedule variance are negative.A negative Schedule variance means the project is behind schedule and a negative Cost variance means the project is over cost.

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