Question

Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance. Recall that your schedule and cost goals are to complete the project in six months for under $200,000.

Tasks

1.      Prepare and print a one-page cost estimate for the project. Use the WBS categories you created earlier, and be sure to document the assumptions you make in preparing the cost estimate. Assume a burdened labor rate of $100/hour for the project manager, $90 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. Use T8 and Costbaseline.pdf as a guide.

Answer 1

WBS and gantt chart is required to answer part 1 and 2.

3). a). Cost variance = EV - AC = 100000 - 90000 = 10000

Schedule variance = EV - PV = 100000 - 120000 = -20000

CPI = EV/AC= 100000/90000= 1.111

SPI = EV/PV= 100000/120000= 0.833

b). As we can see in (a), CV is positive and CPI is greater than 1. It means project is under budget. SV is negative and SPI is less than 1 ,it means project is behind schedule.