Use the following WBS. Be sure to document your assumptions i n preparing the co

Question

Use the following WBS. Be sure to document your assumptions in preparing the cost model.

Assume a labor rate of $20/hour for yourself (the project manager) and team members (Kim, Ashok, and Alfreda). You will pay Bobby, your IT guy, $30/hour. The project will fund refreshments for the four shark tank like events and prizes for the winners, at a cost of $1,000 for each event.

1.1 Project management   
1.2 Hardware (3 laptops and Internet access for Kim, Ashok, and Alfreda)
1.3 Software

1.3.1 Outsourced
1.3.1.1 Domain name and site hosting
1.3.1.2 Donation acceptance feature of website
1.3.1.3 Video creation for website
1.3.2 In-house Development
1.3.2.1 Guidelines and templates for events
1.3.2.2 Acceptance of ideas for needed new products or services
1.3.2.3 Custom site for 20 events
1.3.3 Testing

1.4 Business Plan

  
1.4.1 Internal labor
1.4.2 Legal information/assistance

1.5 Travel
1.6 Events

1.6.1 Internal labor
1.6.2 Consultant labor
1.6.3 Refreshments
1.6.4 Prizes

PART 2

IT projects are known for overpromising and underdelivering. As a consequence many executive managers are now requiring cost-benefit analyses as part of the proposal process for project dollars.

a. How can a cost-benefit analysis help in the proposal phase to address the problem of IT projects which overpromise?

b. How can a cost-benefit analysis at the beginning of the project help in daily decision-making during the course of the project?

c. How can a cost-benefit analysis be useful at the end of a project?

Explanation / Answer

COST ANLYSIS MODEL is systematic approach to estimates the strengths and waeknesses of the project. for efficient cost benefit analysis use the following steps:

STEP 1: List all the activities as follows:

Some of the assumption in the list are one time investment only like hardware cost, Web hosting cost, Legal Cost, Guidelines and labour cost etc....

STEP 2: List all the stackholder or persons in the project that are as follows:

Step 3: Define the cost for relevant time period

as indicates the salary of employees, site hosting, video creation , events and traveling expensives are not one time investment but labour cost, legal cost , hardware cost etc. are one time investment so they are vary from time to time.

STEP 4: Define the Risk analysis;

As the cost for anything is don't remain same it vary from time to time. So get prepare for the risk for higher cost.

COST BENEFIT ANALYSIS

A) Cost Benefit analysis is very helpful in the proposal phase because it estimates the cost to companies i.e. both parties included in the Project.It helps to both parties to analyse the cost and make the budget and investment for the Project.

B) Cost Benefit analysis help in daily decision making process during the course for events such as refreshment and prize distribution as previious records.

IF THERE IS ANY QUERY PLEASE ASK IN COMMENTS....

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