ACCT90 Project Cost Management

Individual Assignment #2: Project Budget

Instructors: Jeremy Spencley and Deepak Arogya Grade Value 15%

This is an individual assignment. There are 2 parts to this, please review carefully. Your files must be submitted to the D2L Dropbox "Assignment #2 by the due date on D2L

Assignment Instructions - Marking rubric on next page.

Using the Excel templates (Templates 1-4 and Basis of Estimates)

1. Budget Template -Template #1
   • resource estimates for the six (6) activities comprising the Software Development and Implementation (SDI) Project. -
   • activity cost estimates for the six (6) activities in the SDI Project.
   • supported by "Basis of Estimates" (use the Basis of Estimate tab) for the resource and cost estimates. These must be clear and complete - show all formulas.
2. GANTT Chart - Template #2 illustrating the schedule for the SDI Project.
3. time-phased budget (Template #3) for the SDI Project.
4. a cash flow forecast chart by hand plotting inflows and outflows over time (Template #4) for the SDI Project, and answer the following question:

4a - Will the revenue provided by the project client be sufficient to maintain a positive cash flow on the project? If not, how much additional funding will be required to maintain a positive cash flow. Explain.

1. Use Formulas for all calculations, no hardcoded numbers.

Project Information

1. The project is occurring in Peterborough and is being estimated and budgeted in Canadian $ (CAD$). Use the current exchange rate to convert any US$ costs.

1. As the project manager, you asked the team members assigned to each task to provide you with optimistic, pessimistic and most likely estimates of the amount of time, in hours, they require to complete their work. The table below provides their estimates:

Task	Optimistic	Pessimistic	Most Likely
1 D'Arcy	30	40	38
2 Jeremy	24	40	32
3 Ghada	56	80	64
4 Anthony	16	32	22
5 Khalid	24	40	32
6 Gordon	20	30	24

You have decided to use a Beta Distribution approach to determine the human resource estimate for each task.

1. All of the activities are scheduled to occur during the months of November and December 2020, with the following estimated durations:

• Task 1 (Gather Data) - Nov 2-6
• Task 2 (Interview Users) - Nov 5-10
• Task 3 (Develop Coding) - Nov 11-20
• Task 4 (Test & Refine) - Nov 23-25
• Task 5 (Install On-site) - Nov 26 -Dec 1
• Task 6 (Train Users) - Dec 1-3.

1. The standard labour rate for all team members is CAD$42/hr. The overtime rate is 1.5 times the standard labour rate. Overtime rates apply once a team member works more than 8 hours in a day, and when a team member works on a weekend (Saturday and Sunday) or a holiday.

1. Training materials includes books and videos that are being purchased from a U.S. supplier at a cost of US$70/user. A total of 8 users will be trained.

1. Training is taking place at the client's place of business (on-site), and includes lunch for the users being trained as well as the trainer. The cost of lunch is $8.00/person/day.

1. Project team members are required to use their own vehicles to travel to the client's place of business for Task 2 and Task 6. They are reimbursed at a rate of CAD$0.40/km. The distance from the Project Team's offices to the client's site is 70 km., one way.

1. Indirect costs will be allocated to the project as follows:

• $15/project team member/per day to cover the costs of renting and maintaining the office building.
• $5/project team member/per day to cover the cost of owning and maintaining computers.

1. You prepared a risk analysis for the project and determined that Tasks 3 and 5 have risks that may need to be mitigated. As a result, you have estimated activity contingency reserves of $320 for Task 3 and $160 for Task 5.

1. For a project of this type, your company provides a management reserve of 10% of the Cost Baseline.

1. A cost plus fixed amount contract has been negotiated. The client will be invoiced each Friday (Nov 6, 13, 20, 27 and Dec 4^th) for costs incurred during the previous 7 days (including Friday), and payment will be transferred electronically to be received on the following Monday. The fixed amount of $2,700 will be paid on Dec 5^th.

Marking Rubric Part I

Template	Name	Marks	Made up of
#1	Project Budget including Basis of Estimates	34	6 tasks @5 +4 for totals
#2	Gantt chart	6	6 task @ 1 ea
#3	Time phased Budget	18	6 tasks @2 ea +Cum. Cost and Revenue 6
#4	Cash Flow Chart of Planned Inflows and outflows Answer to question	10 2	Outflows and Inflows
Total	70	Full marks for tasks are provided if only formulas are used in Excel

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Part II

Add a new tab to the Excel file in which you prepared a time-phased budget for the SDI Project. In that tab, prepare the following work performance information for the SDI project at the end of each week. Show your calculations in a clear and understandable format.

• PV, AC & EV 4 marks for each status date
• CV, CPI, SV, SPI 2 marks for each status date
• EAC(assume the same cost rate), EAC(assume original budget rate),
• EAC(CPI cost and SPI to affect cost), 2 marks for each status date
• TCPIat BAC, TCPI using EAC (assume the same CPI) 1 mark for each status date
• Project Status Report - Make it an informative report in words 6 marks for each status date

Total for each status date- 15 marks

Total for assignment - 75 marks (5 status dates @ 15 marks each)

Project Information

Work performance data as follows:

Status Date	% Complete by task	Cumulative Actual Costs per task
Nov 6	Task 1 - 90%; Task 2 - 55%	$1,855 $752
Nov 13	Task 1 - 100%; Task 2 - 100%; Task 3 - 40%	$1,998 $1,563 $1,125
Nov 20	Task 1 to 3 - 100% including risk response	$2,852
Nov 27	Task 1 to 4 - 100% Task 5 - 25%	$1,087 $378
Dec 4	Task 1 to 5 - 100% risk did not occur Task 6 - 75%	$1,462 $1,875