Exercise Figure 5.1 is a project WBS with cost apportioned by percentages. If th

Question

Exercise Figure 5.1 is a project WBS with cost apportioned by percentages. If the total project cost is estimated to be $600,000, what are the estimated costs for the following deliverables?

a. Design

b. programming

c. In-house testing

What weaknesses are inherent in this estimating approach?

Please help with this problem. Also please show how you got your answer so these problems wont be an issue for me in the future. Thank you for your help!

Router systems project Cost: $600,000 Definitionn 0% Design 40% Implementation 50% Objectives 4% Requirements 6% In-house testing 40% Customer testing & revievw 0% Inputs 3% Programming 20% Outputs Files Interfaces 396 4% 10%

Explanation / Answer

Answer: - This is the project in which the total project cost is given as $600000 /-

Then the project’s sub activities are mentioned in the WBS structure method at three levels. The project is at first level, then project’s three main activities are mentioned at second level, then each second level activity are attached with their respective third level activities. This is what the WBS structured is given for the question.

Answer - Estimated cost for following deliverables/activities are as below

Project Cost is $ 600,000 / -

- Programming cost is 20% of the Design cost.

- Design Cost is $ 240,000 / - (as calculated in (a) part – design cost is 40% of project cost)

- In-house Testing cost is 40% of the implementation cost

- Implementation cost is 50% of the project cost

- So Implementation cost for the project will be

Weakness in the estimation approach: The weaknesses in the estimation approaches are as below

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