Business Finance
PJM 6025 Northeastern Acme Company Cost Management Plan Paper & Sheet

pjm 6025

Northeastern University

PJM

Question Description

I’m working on a Management question and need guidance to help me study.

Continue to complete cost management plan I have attached, use the template I've provided, for the details of this assignment are in the instructions, and the case for reference. Generally, I've done part1 of this assignment, need complete part2.

a.You will be creating a 3-5 page cost management plan related to the project that you selected.

b.As you proceed through the course (weeks 2 through 4) expand your project WBS deliverables and identify activities and your estimates for duration, resources and cost of the resources.

c.You should use MS Project as the tool to assist you in developing your schedule and cost estimates.

d.You will also be required to submit the MS Project Plan as supporting data for your Cost Management plan.

e.Complete Sections 1 through 1.4 of the Cost Management Plan.

f.Avoid the use of ‘I’ or ‘We’ instead use ‘Project Team or The plan is’.

g.Remember that the purpose of the plan is to provide guidelines to your team as well as inform management. The plan should describe the ‘what’ and the ‘how’.

Therefore, you need to provide a cost management plan(doxc.) and a MS project document(mmp.).Originality, similarity less than 10%, apa format.

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Running Head:Cost Management Plan Cost Management Plan Northeastern University Project Scheduling and Cost Planning Professor Donald Columbare Running Head:Cost Management Plan 1.1 1.1.1 Project Scope Project Name: Training program for Acme company 1.1.2 Project Description: This project is from case study of my PJM 6000 course. The C.E.O of Acme Company, Ms. Deidre Jackson, is looking for a way she could use her company's annual expenses on projects. This is after she read a report published by the Project Management Institute known as Pulse of the Profession that explained how a lot of money is wasted when a firm’s project is poorly managed. She needs to experience even a partial amount of the entire project costs for savings so that she could reinvest them in future development. For her to achieve this, she needs to adopt a more mature strategy for managing projects as well as to professionalize the department in charge of project management, precisely the project managers. Consequently, the approximated expenses of training and implementing a more mature strategy will be around one hundred and seventyfive thousand dollars as the starting investment. The organization is anticipated to receive a saving of three per cent in the first year and four-point five per cent in the following year, and as the year's progress, the levels of savings will rise significantly. In addition to these, if the business case is approved, then the basic project would be an 8 – 10-week training program for all project managers and team members that would train them in the adoption of a more mature project Running Head:Cost Management Plan management model, and it would include some mentorships by the trainer. All this would cost a total of $175,000. For the objectives of this project, the CEO of Acme company will invest a large amount of financial funding to support the company's staff training program, through the high quality of staff training to improve the competitiveness of the company in all aspects, to provide staff work ability and efficiency, increase employee benefits to enhance the retention rate of employees, in a relatively short period of time to improve customer service quality, improve the company's reputation, gain a larger share of the market and promote the growth of international business. In addition, there are 4 purposes of this project, 1. The company will spend a total of $3 million on the project activities in a period of one year based on monthly assessment of project milestones. 2. The initiative investment of the project involves initial capital of $175,000 according to maturing criteria of the model. 3. The company aims at making 3 to 4.5 percentage saving in the training and implementation activities. 4. The company wants to make enough saving in the project development to justify the rate of investment. The start date of this project is 02/18/2020, and the closure time is 02/18/2021. Running Head:Cost Management Plan 1.1.3 WBS Table: Include a WBS Level 1 and 2 are Mandatory. Level 3 Deliverables are optional. Do not go beyond Level 3 and Do not include activities. WBS ID Deliverable Description of the Deliverable 1.1 Project management This is the most essential deliverable of the whole project. Including project charter, scope management plan, schedule plan, quality management plan, risk management plan, communication plan, etc.. 1.2 Cost Estimates and Estimate the required capital input of the project and mark the contingency reserve. 1.3 Allocation of Resources Before the formal implementation of the project, necessary resource integration and reconfiguration must be carried out, such as the allocation and adjustment of human resources such as project trainers. 1.4 Training programs Employee training project is the core part of the project, which needs to be planned, implemented, audited, control and monitor throughout the whole project process. 1.5 Testing Operations Necessary performance research and testing should be conducted during the project implementation to ensure that the project can meet the expectations and satisfaction of key stakeholders. 1.6 Monitoring/Controlling The project implementation is monitored and controlled to ensure the quality of the project and the deliverability of each phase. Running Head:Cost Management Plan 1.7 Project closure Project need to done well with project final sign-off document and lesson learned reports. Cost Management Plan Project Name: Student Name: Instructions: 1. Review the assignment instructions in the instructions document labeled ‘Assignment 1C Cost Management Instructions. 2. For Assignment 1C: complete Sections 1.1.1, 1.1.2 and 1.1.3 only. 3. For Assignment 4B: a. Revise/ update all sections within the Project Scope Section 1.1 b. Complete sections 1.2 through 1.4. 4. Sections 1.5 through 1.6 are provided for information purposes only and to show what other sections could be included in a Cost Management Plan. These sections are not required for this assignment. 5. All instructions and guidelines for each section in this template are in blue font and should be removed prior to submitting the final assignment. 1.1 1.1.1 Project Scope Project Name: Name for your project. 1.1.2 Project Description: Provide a brief description of the project (high level scope statement in one or two brief paragraphs. Include project objectives, purpose, start and finish dates. 1.1.3 WBS Table: Include a WBS Level 1 and 2 are Mandatory. Level 3 Deliverables are optional. Do not go beyond Level 3 and Do not include activities. WBS ID 1.2 Deliverable Description of the Deliverable Cost Management Plan Provide a brief description in one or two paragraphs as to your general approach and guidelines to planning, tracking, measuring and controlling costs. 1.2.1 Cost Baseline Statement A cost baseline statement is simply a brief statement or two that summarizes the budget and states the specific amount of money and contingency that forms the cost baseline. 1.3 Cost Planning 1.3.1 Cost Estimating Estimate Costs is the process of forecasting what each project activity will cost, based on the resources required to complete it. This includes human resources and physical resources, like supplies, material or equipment. In this section consider the following: • • • • • • • • • • What estimating method or methods will you be using? Why will you be using these methods? Provide a valid explanation as to why these methods were chosen over the alternatives. Who will be responsible for creating the estimates? Who will be responsible for reviewing and approving the estimates? How will the estimates be aggregated? How will you seek to account for padding and reserves in your estimates? Statement regarding the level of accuracy and acceptable levels of variance Identify any risks associated with the estimates Perform a Reserve Analysis to determine how much to request for a reserve fund The estimates are then used to request funding or funding adjustments for the project. Risks associated with the cost estimates are documented and included in the risk management database. 1.3.2 • • Establishing the Cost Baseline Determining the project budget is the process of adding up the estimated costs for each activity or work package to get to an estimated budget for the entire project. This provides you with a cost baseline against which you can monitor actual costs. Use the table below to summarize the costs associated with your project. Deliverable Labor Costs Equipment Costs Material Costs Contingency Reserve Total Estimate Total Project Costs 1.4 Cost Control Insert a one paragraph statement at a high level as to your plan for cost control. Also include a statement of how much reserve you will be requesting, summarize how you determined the amount you requested, and provide a brief explanation for how these funds will be used and who can authorize the use of them 1.4.1 Cost Tracking Describe in a paragraph or two the procedures that you want your team to follow so that you can record labor, equipment or material costs. 1.4.2 Cost Reporting and Metrics Overall costs are compared to the budgeted project costs on a weekly/monthly basis. Describe what reports or procedures you will put in place to assist with tracking actual costs against the baseline. 1.4.3 Cost Variances Variances are reviewed and analyzed to determine the cause and possible mitigations or corrective action required. Document and describe the variances and the rationale you will use in whether action is required or if no further action is required. 1.4.4 Funding Schedule Based on your project schedule in the MS Project file, create a funding schedule (timescaled budget). You can do this by date or milestone. Use the table below: Funding Schedule /Time Phased Budget Deliverable Design Software Total Work Periods – Weeks or Months ( Select either Weeks or Months) 1 2 3 Total 250 300 400 950 800 1200 1400 3,400 1,050 1,500 1,800 4,350 ***THE FOLLOWING SECTIONS ARE NOT REQUIRED AND ARE PROVIDED AS EXAMPLES ONLY*** 1.5 Project Management Control Board (PMCB) If the overall cost baseline is affected, the variance is documented and reported to the Project Manager and the Project Management Control Board. The Project Manager and the PMCB review the rationale and discuss the options and mitigations for dealing with the variance, and determines if a re-plan is necessary. Changes to the cost baseline typically would only occur as a result of a change to the scope of work or the direction of the project. 1.5.1 Cost Re-Planning If a re-plan is deemed necessary, the project submits the appropriate funding documents to address the re-plan. The funding documents are included in the next budget cycle and are subject to the normal review and approval processes. 1.5.2 Cost Re-Baselining Once the re-plan is approved, the Project Manager works with the Financial Manager to re-baseline the cost data and estimates based on the approved funding. 1.6 1.6.1 Cost Closeout Annual Cost Summary At the end of the fiscal year, the Project Manager summarizes the actual hours and costs expended against the baseline for the fiscal year. The annual summary is archived for historical purposes. 1.6.2 Lessons Learned on Cost Management Lessons learned related to costs and cost estimation are used in the development of the subsequent fiscal year’s cost baseline. At the end of the project, the historical information is forwarded to the organizational repository for use in refining project estimation techniques. Appendix A: Cost Management Plan Approval The undersigned acknowledge they have reviewed the Cost Management Plan for Project Name and agree with its contents. Changes to this Cost Management Plan will be coordinated with and approved by the undersigned or their designated representatives. [List the individuals whose signatures are desired. Examples of such individuals are Business Steward, Project Manager or Project Sponsor. Add additional lines for signature as necessary. Although signatures are desired, they are not always required to move forward with the practices outlined within this document.] Signature: Print Name: Title: Role: Date: Signature: Print Name: Title: Role: Date: Signature: Print Name: Title: Role: Date: Cost Management Plan Instructions Assignment Objective This assignment is directly linked to the following key learning outcomes from the course syllabus: • • Design a cost management plan outlining how the schedule and cost would be defined, estimated, validated and controlled throughout a project. Critique the various estimation methods (analogous, parametric, bottom-up and three-point estimating; as well as reserve analysis and cost of quality estimation) In addition to these key learning outcomes, you will also have the opportunity to evidence the following skills through completing this assignment: • • • Critical thinking and analysis Technical Competency Problem solving Instructions 1. Part 1 of this Assignment (Assignment 1C) is due Week 1 a. Use the attached Cost Management Plan template for the Part 1 and Part 2 assignments. b. Select a Project that you have had experience. If you have no project experience then select a project that you have an interest in. c. The project should contain approximately 7 to 12 deliverables (Level 1 through level 3 deliverables). d. The project criteria includes: i. Project duration must be at least 6 months ii. Project costs must be at least $100,000. iii. There must be sufficient activities so that resources can be assigned and the cost for the resource can be estimated. iv. The activities need to have a long enough duration so that there will be an need for your team to provide progress reports that will be used to monitor and control costs as the project proceeds through implementation. e. Complete only the Scope Sections 1.1 through 1.1.3 in the Cost Management Template. See PMBOK section 5.3.3 for guidance on a Project Scope statement and Week 1 Lecture on the PMBOK overview. f. This is not a gradable assignment. I will review your project scope and provide feedback. Please be sure to check Turnitin for comments and improvements if required. 2. Part 2 of this Assignment (Assignment 4B) is due Week 5 a. You will be creating a 3-5 page cost management plan related to the project that you selected. b. As you proceed through the course (weeks 2 through 4) expand your project WBS deliverables and identify activities and your estimates for duration, resources and cost of the resources. c. You should use MS Project as the tool to assist you in developing your schedule and cost estimates. d. You will also be required to submit the MS Project Plan as supporting data for your Cost Management plan. e. Complete Sections 1 through 1.4 of the Cost Management Plan. Be sure to update sections 1.1.1, 1.1.2 and 1.1.3 based on my comments from Assignment 1C. f. Avoid the use of ‘I’ or ‘We’ instead use ‘Project Team or The plan is’. g. Remember that the purpose of the plan is to provide guidelines to your team as well as inform management. The plan should describe the ‘what’ and the ‘how’. Format Use the attached Cost Management Plan template for this assignment. Please be sure to review the attached rubric. It along with these assignment instructions and guidance provided in the Cost Management Plan template will ensure you have a solid understanding of the assignment requirements. Rubric(s) Assessment Element Scope Statement (20%) Estimating Process (20%) Current Estimate (20%) Analysis (20%) Above Standards Goes beyond the required components to apply project management in an innovative, tailored, and value-added way. Goes well above requirements of the assignment to integrate all required items to provide a comprehensive description of the estimating process. Meets Standards Meets the required components to apply project management in an innovative, tailored, and value-added way. Cohesively and concisely integrates all required items to provide a complete description of the estimating process. Approaching Standards Provides a project description in the form of a scope statement. Below Standards Provides an incomplete project description in the form of a scope statement. Not Evident Does not provide a project description Integrated all required items to provide a thorough description of the estimating process. Does not integrate the required items to provide description of the estimating process or most of the items are not addressed Demonstrates extensive exploration of issues/objects/works through the collection and analysis of evidence to make well-informed conclusions/judgments. Organizes and synthesizes evidence to reveal insightful patterns, differences, or similarities related to focus. Goes WELL above requirements of the assignment to deliver new information and/or Demonstrates adequate exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence to reveal important patterns, differences, or similarities related to focus. Demonstrates moderate exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence to reveal some important patterns, differences, or similarities related to focus. Examines learning experiences and their application in a professional and personal Integrated the required items to provide a good description of the estimating process, but does not address 2 or more items or address the item in a general or vague manner. Demonstrates minimal exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence, but the organization is not effective in revealing important patterns, differences, or similarities. Challenges beliefs, values, and attitudes of self and others but lack in-depth analysis In-depth analysis of the learning experiences and how they led to understanding of self, Does not demonstrate even minimal exploration of issues/objects/works through the collection and analysis of evidence and unable to make informed conclusions/judgments. Lists evidence, but it is not organized and/or is unrelated to focus. Does not move beyond description of the learning experiences relevant new techniques Grammar & Clarity (20%) Goes well beyond the assignment to express ideas and opinions in a clear and concise manner with obvious connection to the assignment. others, and course concepts via authentic examples The Cost Management document is well-organized and the format can be followed. Uses clear language to accurately express abstract ideas and explain concepts. High quality grammar. No misspellings. context but lack in-depth analysis The Cost Management document is organized and the format can be followed. Minor errors in writing and lack of clarity and accuracy. High quality grammar. No misspellings. The Cost Management document is organized and the format can be followed. Minor errors in writing and lack of clarity and accuracy. High quality grammar. No misspellings. The Cost Management plan is not organized and the format does not add to the clarity of the content. Uses unclear language and fails to express abstract ideas and explain concepts accurately. Low quality grammar, misspellings. PJM Case Study Case Study Background: Ms. Deidre Jackson, the CEO of Acme Company, was recently given a report published by the Project Management Institute called the Pulse of the Profession. 1 In the report, she learned a startling statistic. PMI® reported that when projects are poorly managed, approximately $122 million is wasted for every $1 billion spent (12.2%). Now, her company’s annual expense for projects is much smaller (approximately $3 million expected in the next 12 months), but if she could experience even a partial amount of that savings, she could reinvest those savings in future growth. In order to accomplish this, she believes that she needs to adopt a more formal or mature approach to managing projects, and she needs to professionalize the project management teams and, specifically, the project managers. She has a colleague, Xin Xue, from a previous company who was the internal project management expert in the company who she believes might be able to help, so she gives her a call to get her take. Ms. Jackson just finished a long conference call with Ms. Xue, and she now has a better idea of what this might take in terms of effort and resources to move forward. In short, in Ms. Xue’s opinion, there is a way to experience the savings that Ms. Jackson hopes for, but it will take some time and investment, so she thinks they should move forward with ...
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Final Answer

Attached.

Student’s Name
Instructor’s Name
Course Code
Date

1.1

Cost Management Plan

The project management team will use the collected data to plan for the cost of all
variables needed for the training project. Tracking will entail the use of statistical analysis tool to
collect financial data over the years. The project management team will also constantly test the
implementation based on the outlined objectives to meet the expectations of the stakeholders.
The financial plan will be used to control the cost of the project for the next two years to increase
the saving. The project team must also follow the financial guidelines and expectations from the
management to keep a safe track. Financial management tools will also be used to control the
cost of the project and increase the savings.

1.2.1

Cost Baseline Statement

The training project at Acme Company will spend approximately $3,000,000 over the next
one year and $3,500,000 for the following twelve months to give a 3% saving and 4.5%
consecutively.

1.2

Cost Planning

1.2.1

Cost Estimating

The project team will use factor and parametric estimating methods to get an advance
scope of the cost of project. Factor estimating will involve the use of historic database to ensure
that the cost lies within the limited p...

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