Reference no: EM132241885

Unit 10 (Budgeting Projects) IN CPM 4E

Budget Estimating

This assignment consists of 2 parts: questions about budget estimation and developing a budget.

Part 1 Questions

Provide responses to the following questions

1. You are providing a review of contractor bids for a component of your upcoming project. What can be done to determine whether or not a vendor's bid is reasonable?

2. Describe the conditions for which parametric, analogous and bottom up estimation techniques work best, and provide 2 examples in support of each method.

3. Why is a cost management plan important? How does the plan benefit the project manager?

Part 2 Budget Estimating

Using the same scenario from the previous unit on scheduling, create a time-phased budget for the following project. Prepare a figure like Exhibit 10.9, CPM 4e, that illustrates the daily and cumulative costs for the resource-leveled project.

Assume the following hourly rates:

Alcides $45 / hr.

Joan $50 / hr.

Part 3 Budget Estimating

You are the project manager for a process improvement project for Company XYZ. Prepare a figure like Exhibit 10.9 that illustrates the weekly and cumulative costs for the resource-leveled project.

In this project, you have 3 employees: Ann, Becky and Clive. Each person is limited to the amount of time allocated to your project. Ann and Becky are available 30 hours/week; Clive is available 20 hours/week. There hourly rates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.