Submit a cost estimate using the table similar to the one used in the slides. If your cost is different than what you had proposed in the Project Charter, provide a brief description of why and highlight what is different. Update your Project Charter.
Update your Risk Management Plan specifically relating to cost. Identify what risks exists and how you plan on mitigating them.
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this is class project that we working on it you need to add page to my work and that is cost Estimate base on what I did provide you and upload the document you need to look to the chapter about cost estimate too .
Analyze project goals and select an appropriate cost-estimate approach
Prepare a cost estimate
this port is my instructor powerpoint about cost estimate and example:
Cost Estimation•You can create a WBS top down or bottom up–Top down –Start with largest work groupings and break into smaller and smaller pieces–Bottom up –Brainstorm specific low level tasks, group them into larger groupings•Might want to do both and compare, reconcile
Cost Estimation•Guestimates by task owners•Guesstimates by a group, including experts who have “done this kind of work before”•Other group consensus processes•Statistical models that relate “size” of a project result to time and effort estimates–Suppose a project is expected to produce a software product with about 60,000 Lines of Code (written software)–According to statistical model: 60,000 Lines of Code translates into 200 person months of effort–200 person days of effort = it’ll take 20 people 10 months, or 10 people 20 months (or 2 people 100 months, etc.)
Types of Cost•Direct Labor: Actual salary in terms of an hourly rate times the number of hours to accomplish the task. –ActivityAwilltake4hourstocompleteand your rate is $50/hr. The direct labor cost for Activity A is 4x$50=$200.•Indirect Labor: Other costs associated with labor known as fringe benefits. These costs include medical, life insurance, paid time off, holidays, pensions, etc. Indirect labor can be as high as 100% of the hourly rate. –Activity A direct labor costs = $200, assuming indirect labor is 100% of the direct labor, then indirect labor costs for Activity A = $200.•Overhead/Admin: Costs such as office leases, computers, phones, administrative assistants, managers, etc. Dependingonthe complexity of your organization, this cost can be approximately 10% of the total project costs.•Materials: costofmaterials required for the project.•Travel: Any travel costs required for the project•Outsource/Contracted: Any cost associated with consultants, services, etc. Don’t forget to add your overhead/administration costs to this figure!
Assignment 5•Part 1: Develop a bottom-up cost estimate for your project.Include direct labor, indirect labor, overhead, general and administration, profit (if applicable), travel, materials and/or other direct costs. Update your Project Charter and Risk Management Plan (100pts) •BONUSPOINTS!Complete Scenario B and C of the HBSP simulation.Postonthediscussionboardhow you made your decisions, lessons learned or observations and compare it to Scenario A. (10ptsfor each Scenario completed and posted. This could be as high as 20 total points)
REFERENCES1.©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Fifth Edition2.©2013 Harvard Business School Publishing Project Management Simulation