QUESTION THREE

$[25]$

Alton Limited is preparing to launch a new nationwide distribution network upgrade, involving the procurement of logistics equipment, warehouse refurbishments, and regional training for staff. As part of the initial planning and budgeting phase, the project manager has asked the cost analyst to recommend reliable cost estimation methods to ensure accurate budgeting and resource allocation across various project components. Given the project's scope, timeline pressure, and limited earlystage data, the project team must apply appropriate estimating techniques to balance accuracy, speed, and feasibility in cost prediction.

Required: Various estimating techniques may be used to predict the project's parameters and resource requirements quickly and accurately. Critically discuss FIVE $(5)$ estimating techniques that may be used to provide a reasonably accurate estimate of costs for a project.

QUESTION FOUR

Bolton Limited is managing a warehouse automation project scheduled over six months. The total budget at completion $($BAC$)$ for the project is R$1200000.$ At the end of month $3,$ the following project data was collected:

Planned Value $($PV$)$: R$600000$

Earned Value $($EV$)$: R$500000$

Actual Cost $($AC$)$: R$700000$

The project manager has requested that you evaluate the project's schedule and cost performance and advise on the financial outlook for the remaining work.

Required: Based on the information provided, calculate and comment on the following performance metrics. Show all workings and formulas used:

$4\mathrm{.}1$ Schedule Variance $($SV$)$

$(4$ marks$)$

$4\mathrm{.}2$ Cost Variance $($CV$)$

$(4$ marks$)$

$4\mathrm{.}3$ Schedule Performance Index $($SPI$)$

$(4$ marks$)$

$4\mathrm{.}4$ Cost Performance Index $($CPI$)$

$(4$ marks$)$

$4\mathrm{.}5$ Estimate to Complete $($ETC$)$

$(4$ marks$)$

$4\mathrm{.}6$ Estimate at Completion $($EAC$)$

$(5$ marks$)$