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Assume that you have been selected to serve as the project manager for a management consulting project for a client based in the United States. You have developed the WBS and listed the activities for the assignment, which involve large-scale market research in a new market. You are responsible for project costs and are keen on developing realistic cost estimates and project budget. You have estimated the following effort:
WBS
Tasks
Duration
Resource Type
Effort in Days
1.1
Final proposal and contract documentation
4 Days
Junior Consultant
4
Legal Consultant
1
Vice President
1.2
Assignment kickoff workshop
2 Days
2
Senior Consultant
2.1
Designing market research
5 Days
Product Expert
5
2.2
Pilot run of market research
10 Days
3
Intern
10
2.3
Final market research design and signoff
2.4
Market research 1
32 Days
20
2 Interns*
28
2.5
Market research 2
2.6
Data collation and analysis
0.5
3.1
Final report preparation
3 Days
3.2
Presentation to client
1 Day
*Please note the use of 2 resources in this case. The rates per day for the resources are as follows:
Resource
Rate Per Day
$750
$250
$1,500
$3,500
The tasks above are listed in sequential order. The exceptions are market research 1 and 2, which can start simultaneously.
Part 1: Develop the budget for this project by allocating cost over actual work time and the calendar time line. Draw a graph for the time line of the project and the money spent on the project. Assume that the payments to all resources are made on a daily basis.
Part 2: For the consulting assignment, assume that the total project budget is spent equally on a daily basis and the work done each day contributes equally toward the project completion. You are now at the end of Day 25 of the project, the company has already spent $48,000, and the project has delivered 5% more than planned at the end of Day 25.
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