Cost Managemenet

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I need to REDO this assignment and the instructor feed back is below:

Hi Kevin,

I hope this note finds you doing well. I would like you to take a little more time to enhance this assignment so you can earn full credit. I don't see much difference between this submission and the earlier one, as you still do not have all of the components and sections for a full cost management plan.

Please review the template provided and create a document that is independent of educational overtones. In other words... instead of writing a report about a cost plan, create an actual plan that demonstrates all of the elements in the template. This reads like an instructional guide rather than a cost plan itself. You've got very good elements in the content, we just need the rest of the core components for a complete cost plan.


A table of contents using the following headers: Introduction, Cost Management Plan, Cost Baseline, Conclusion, and References. ● A minimum of three scholarly journal and textbook source references cited and credited according to APA 6th edition formatting style using a minimum of six in-text citations. ● The paper should be focused and to the point, containing between 600–800 words specific to the table of content items (excluding references).

I've attached the Rubric and the Assignment that was submitted. The next few documents were the prior assignments so you can get a idea of the topic I am writing on.

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Running Head: COST MANAGEMENT AND COST SCHEDULE Cost Management and Cost Schedule Kevin Moseley GM 592 Dr. Fleming 12/24/2018 1 COST MANAGEMENT AND COST SCHEDULE 2 Table of Contents Table of Contents ............................................................................................................................ 2 Introduction ..................................................................................................................................... 3 Cost Management Plan ................................................................................................................... 3 Cost Baseline .................................................................................................................................. 4 Conclusion ...................................................................................................................................... 6 References ....................................................................................................................................... 7 COST MANAGEMENT AND COST SCHEDULE 3 Introduction With the planning of the Cost management and Cost Scheduling for the Ryder-Pepsi Warehouse Project, the cost estimates, the sources of funding, controlling, and managing all the cost attributed to the project will be integrated within a budget (Kerzner, 2018). The cost management and cost schedule will enable the project team to set the procedures and policies for documenting the process of ensuring that the project is implemented within its cost constraints. The Cost Management and Cost schedule will outline the costs of the Ryder-Pepsi Warehouse Project from the beginning to the end to facilitate cost budgeting, cost control, cost estimating throughout the lifecycle of the project. The Project Manager will be accountable for presenting all reports of the project’s cost until the completion of the project. The Project Manager will also update the Pepsi managers and executives on the status of the cost management and performance of the project. Reports will be sent out weekly to recap the previous week and to forecast the cost and expectations for the next week. Cost Management Plan The Cost Management Plan for the Ryder-Pepsi Warehouse Project will cover cost definition of each element of cost to be incurred, the cost baseline, and the mode of managing all the costs throughout the lifecycle of the project. The short deadline means that the project must be implemented within the costs constraints (Harrison & Lock, 2017). While the total costs of the project stand at $242,550, the other costs relating to equipment, material, and other components have also been factored into this total costs. The WBS was used as the baseline for apportioning these cost while work will run from Monday to Friday with a break of two days of COST MANAGEMENT AND COST SCHEDULE 4 the weekend. Every cost element is estimated in US dollars and rounded off to the nearest 0.1 of a dollar. The cost management plan will help the manager to keep the cost of the project under their control and ensure effective utilization of all the resources. It will also restrict the implementation within the cost constraints to achieve better and quality performance. In order to ensure that the cost management plan serves the interests of all stakeholders in the project, they must be developed in the creation of the plan to ensure active participation in its implementation through the project lifecycle. Cost Baseline The cost baseline provides the process to be used to subject the costs of the project to control and minimize any changes to the costs to an acceptable level. A change control board will be set to approve any changes in the cost to avoid possible interference with the project deliverable (Kerzner & Kerzner, 2017). The project sponsor will then adopt the changes and then document the changes for future reference. Formal requests will be made for each deliverable to facilitate cost management and control. Below is a cost baseline that would be used for the purpose of the project. Using the cost baseline, the project managers will create a time-phased budget that is effective in monitoring and measuring the performance of every costs element in the project as it progresses through its lifecycle. There would be a provision for contingency costs to cater for the unidentifiable costs elements attributed to the implementation of the project. COST MANAGEMENT AND COST SCHEDULE Resource Name Ordering Signage and Decals Ordering Forklifts, Walkies, Recharge Stations, and Battery Setting Internet Networks and Phones Hiring and Converting Current Associates Installing TV’s, Printers, and Computers Purchasing Two Switcher Trucks Purchasing Two Miscellaneou s Office Supplies Installing Punch In/Out machine Safety 1 Project Manager 2 Facilities 3 Information Technology 4 Human Resource 5 5 Safety Team Total Hourly Rate Total Estimated Cost $650.00 50 520 80 $50.00 $32,500 $140.0 0 $29,400 $20.00 $3,200 $40.00 $8,800 $10.00 $6,000 $60.00 $90,000 $20.00 $10,000 $30.00 $80.00 $6,900 $32,000 $210.00 80 70 60 $160.00 80 80 $220.00 90 50 80 $600.00 600 $1500.0 0 600 700 $500.00 500 $230.00 100 50 80 400 $400.00 COST MANAGEMENT AND COST SCHEDULE Equipment Mobile Scanners Hiring Thirdparty Security Company Hiring Janitorial Staff TOTALS 6 200 $200 $15 $3,000 $10 500 300 600 1230 250 $800 $8,000 $15 1300 300 630 980 $6320 $12,750 $242,550 Conclusion In conclusion, the cost management and costs schedule for the Ryder-Pepsi Warehouse Project will provide a detailed cost management plan on how to implement the project within the cost constraints. It is for this reason that holidays that fall within the project schedule were negotiated for between the project managers and the stakeholders to ensure that the project does not go beyond the scheduled duration. In addition, costs relating to the project implementation was calculated on an hourly rate and there is no anticipated escalation in costs within the scheduled timeframe of the project. COST MANAGEMENT AND COST SCHEDULE References Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge. Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons. Larson, E. W., & Gray, C. F. (2015). A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute. 7 Unit 3 [GM592] Unit 3 Assignment: Cost Management__________ In this Assignment, you will be assessed based on the following outcome: GM592-3: Plan cost management with associated resources. This Assignment is designed to evaluate your ability to create a cost management plan and the cost baseline for the project that you select. You will take the role of the project manager. This effort requires that you research, organize, and present project financial data in a manner that makes sense to the appropriate stakeholder. Here are the requirements: ● You will use the project from the Unit 1 Assignment for the Unit 3 Assignment. ● Create a Cost Management Plan for the project you selected in Unit 1. ● Create the Cost Baseline for the selected project. ● Please go to the internet for templates or documents that can help you meet the requirements. ● The templates or documents that you use must meet all criteria specified in the grading rubric below. Components ● Title page formatted in APA 6th edition style with the following information: Title of the paper, your name, course number and section number, and date. ● A table of contents using the following headers: Introduction, Cost Management Plan, Cost Baseline, Conclusion, and References. ● A minimum of three scholarly journal and textbook source references cited and credited according to APA 6th edition formatting style using a minimum of six intext citations. ● The paper should be focused and to the point, containing between 600–800 words specific to the table of content items (excluding references). Directions for Submitting your Assignment: To submit your Unit 3 Assignment, upload all Assignment documents to the Unit 3 Assignment Dropbox. Make sure that you have saved a copy of each of the files you submit for this Assignment. Page 1 of 2 Unit 3 [GM592] GM592 Unit 3 Assignment: Cost Management Points Possible Points Earned Content (0-50 points) 1. Cost Management Plan Includes the units of measure. Includes the level of precision. Includes the level of accuracy. Discusses the organizational procedures links. Includes the control thresholds. Discusses the rules of performance measurement. Provides the reporting formats. Includes additional details as necessary. 2. Cost Baseline Reflects costs based on the work packages in the WBS. Costs are displayed for a project of at least 3 months. Totals are provided based per WBS item and per month. Analysis (20 points) Response exhibits strong higher-order critical thinking and analysis (e.g., evaluation). Paper shows original thought. Analysis includes proper classifications, explanations, comparisons and inferences. Critical thinking includes appropriate judgments, conclusions and assessment based on evaluation and synthesis of information. Writing (15 points) Grammatical skills are strong with typically less than one error per page. Correct use of APA 6th edition. Appropriate to the Assignment, fresh (interesting to read), accurate, (no far-fetched, unsupported comments), precise (say what you mean), and concise (not wordy). Paper is in 12-point font, and double-spaced with a double space between. Paper is free of serious errors; grammar, punctuation, and spelling help to clarify the meaning by following accepted conventions. At least three scholarly journal and textbook sources are cited and referenced in APA 6th edition format. Content is between 600–800 words specific to the table of content items (excluding references). Total 25 25 7 7 6 5 5 5 85 Page 2 of 2 ProjectManagementDocs.com PROJECT COST MANAGEMENT PLAN TEMPLATE This Project Management Plan Template is free for you to copy and use on your project and within your organization. We hope that you find this template useful and welcome your comments. Public distribution of this document is only permitted from the Project Management Docs official website at: ProjectManagementDocs.com COST MANAGEMENT PLAN COMPANY NAME STREET ADDRESS CITY, STATE ZIP CODE DATE 1 ProjectManagementDocs.com TABLE OF CONTENTS INTRODUCTION .................................................................................................................................... 3 COST MANAGEMENT APPROACH ............................................................................................................ 3 MEASURING PROJECT COSTS .................................................................................................................. 4 REPORTING FORMAT............................................................................................................................. 6 COST VARIANCE RESPONSE PROCESS ....................................................................................................... 6 COST CHANGE CONTROL PROCESS ........................................................................................................... 6 PROJECT BUDGET ................................................................................................................................. 6 2 ProjectManagementDocs.com INTRODUCTION The Cost Management Plan clearly defines how the costs on a project will be managed throughout the project’s lifecycle. It sets the format and standards by which the project costs are measured, reported and controlled. The Cost Management Plan: • Identifies who is responsible for managing costs • Identifies who has the authority to approve changes to the project or its budget • How cost performance is quantitatively measured and reported upon • Report formats, frequency and to whom they are presented The Project Manager will be responsible for managing and reporting on the project’s cost throughout the duration of the project. During the monthly project status meeting, the Project Manager will meet with management to present and review the project’s cost performance for the preceding month. Performance will be measured using earned value. The Project Manager is responsible for accounting for cost deviations and presenting the Project Sponsor with options for getting the project back on budget. The Project Sponsor has the authority to make changes to the project to bring it back within budget. COST MANAGEMENT APPROACH This section you explain your approach to cost management for your project. We chose to create Cost Accounts at the fourth level of the WBS as an example since many project management offices don’t have a Project Management Information System. If you are using a Project Management Information System then you can, and should, manage costs down to the work package level. For those who don’t have a Project Management Information System you’ll want to determine which level of the WBS you can most effectively manage the project’s costs from. The further down in the WBS you go, the more detailed your cost management is. However, you should balance the granularity at which you want to manage costs against the amount of effort it takes to manage at that level. The more granular your cost management, the more work is necessary to manage it. Costs for this project will be managed at the fourth level of the Work Breakdown Structure (WBS). Control Accounts (CA) will be created at this level to track costs. Earned Value calculations for the CA’s will measure and manage the financial performance of the project. Although activity cost estimates are detailed in the work packages, the level of accuracy for cost management is at the fourth level of the WBS. Credit for work will be assigned at the work package level. Work started on work packages will grant that work package with 50% credit; whereas, the remaining 50% is credited upon completion of all work defined in that work 3 ProjectManagementDocs.com package. Costs may be rounded to the nearest dollar and work hours rounded to the nearest whole hour. Cost variances of +/- 0.1 in the cost and schedule performance indexes will change the status of the cost to cautionary; as such, those values will be changed to yellow in the project status reports. Cost variances of +/- 0.2 in the cost and schedule performance indexes will change the status of the cost to an alert stage; as such, those values will be changed to red in the project status reports. This will require corrective action from the Project Manager in order to bring the cost and/or schedule performance indexes below the alert level. Corrective actions will require a project change request and be must approved by the Project Sponsor before it can become within the scope of the project. MEASURING PROJECT COSTS This section defines how the project’s costs will be measured. The PMBOK focuses on Earned Value Management for measuring and controlling a project’s costs. Earned Value Management is a broad and powerful tool; as such, we recommend that all project managers take some formal courses in Earned Value Management. In this section you should detail how you will measure the project costs. What Earned Value measurements will be captured and reported upon. Will you use any tools, such as project management software, to assist in capturing Earned Value metrics? How will you forecast future project costs? Will you review cost performance over time, across work packages or schedule activities? Our example in this section measures four Earned Value measurements; Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI) and Cost Performance Index (CPI). For most typical projects these four measurements can provide enough insight for effective management without overburdening the Project Manager with Earned Value calculations and measurements. Schedule Variance (SV) is a measurement of the schedule performance for a project. It’s calculated by taking the Earned Value (EV) and subtracting the Planned Value (PV). Since EV is the actual value earned in the project and the PV is the value our project plan says we should have earned at this point, when we subtract what we planned from the actual we have a good measurement which tells us if we are ahead or behind the baseline schedule according to our project plan. If SV is zero, then the project is perfectly on schedule. If SV is greater than zero, the project is earning more value than planned thus it’s ahead of schedule. If SV is less than zero, the project is earning less value than planned thus it’s behind schedule. 4 ProjectManagementDocs.com Cost Variance (CV) is a measurement of the budget performance for a project. CV is calculated by subtracting Actual Costs (AC) from Earned Value (EV). As we already know, EV is the actual value earned in the project. AC is the actual costs incurred to date, thus when we subtract what our actual costs from the EV we have a good measurement which tells us if we are above or below budget. If CV is zero, then the project is perfectly on budget. If CV is greater than zero, the project is earning more value than planned thus it’s under budget. If CV is less than zero, the project is earning less value than planned thus it’s over budget. Schedule Performance Index (SPI) measures the progress achieved against that which was planned. SPI is calculated as EV/PV. If EV is equal to PV the value of the SPI is 1. If EV is less than the PV then the value is less than 1, which means the project is behind schedule. If EV is greater than the PV the value of the SPI is greater than one, which means the project is ahead of schedule. A well performing project should have its SPI as close to 1 as possible, or maybe even a little under 1. Cost Performance Index (CPI) measures the value of the work completed compared to the actual cost of the work completed. CPI is calculated as EV/AC. If CPI is equal to 1 the project is perfectly on budget. If the CPI is greater than 1 the project is under budget, if it’s less than 1 the project is over budget. Performance of the project will be measured using Earned Value Management. The following four Earned Value metrics will be used to measure to projects cost performance: • Schedule Variance (SV) • Cost Variance (CV) • Schedule Performance Index (SPI) • Cost Performance Index (CPI) If the Schedule Performance Index or Cost Performance Index has a variance of between 0.1 and 0.2 the Project Manager must report the reason for the exception. If the SPI or CPI has a variance of greater than 0.2 the Project Manager must report the reason for the exception and provide management a detailed corrective plan to bring the projects performance back to acceptable levels. Performance Measure Schedule Performance Index (SPI) Cost Performance Index (CPI) 5 Yellow Between 0.9 and 0.8 or Between 1.1 and 1.2 Between 0.9 and 0.8 or Between 1.1 and 1.2 Red Less Than 0.8 or Greater than 1.2 Less Than 0.8 or Greater than 1.2 ProjectManagementDocs.com REPORTING FORMAT Reporting for cost management will be included in the monthly project status report. The Monthly Project Status Report will include a section labeled, “Cost Management”. This section will contain the Earned Value Metrics identified in the previous section. All cost variances outside of the thresholds identified in this Cost Management Plan will be reported on including any corrective actions which are planned. Change Requests which are triggered based upon project cost overruns will be identified and tracked in this report. COST VARIANCE RESPONSE PROCESS This section of the Cost Management Plan defines the control thresholds for the project and what actions will be taken if the project triggers a control threshold. As a part of the response process the Project Manager typically presents options for corrective action to the Project Sponsor who will then approve an appropriate action in order to bring the project back on budget. The Project Manager may propose to increase the budget for the project, reduce scope or quality, or some other corrective action. The Control Thresholds for this project is a CPI or SPI of less than 0.8 or greater than 1.2. If the project reaches one of these Control Thresholds a Cost Variance Corrective Action Plan is required. The Project Manager will present the Project Sponsor with options for corrective actions within five business days from when the cost variance is first reported. Within three business days from when the Project Sponsor selects a corrective action option, the Project Manager will present the Project Sponsor with a formal Cost Variance Corrective Action Plan. The Cost Variance Corrective Action Plan will detail the actions necessary to bring the project back within budget and the means by which the effectiveness of the actions in the plan will be measured. Upon acceptance of the Cost Variance Corrective Action Plan it will become a part of the project plan and the project will be updated to reflect the corrective actions. COST CHANGE CONTROL PROCESS Typically the change control process follows the project change control process. If there are special requirements for the cost change control process, they should be detailed in this section. The cost change control process will follow the established project change request process. Approvals for project budget/cost changes must be approved by the project sponsor. PROJECT BUDGET The budget for this project is detailed below. Costs for this project are presented in various categories... Fixed Costs: $xxx,xxx.xx 6 ProjectManagementDocs.com Material Costs Contractor Costs Total Project Cost $xxx,xxx.xx $xxx,xxx.xx $xxx,xxx.xx Management Reserve $x,xxx.xx 7 ProjectManagementDocs.com SPONSOR ACCEPTANCE Approved by the Project Sponsor: __________________________________________ Date: ___________________ This free Project Cost Management Plan Template is brought to you by www.ProjectManagementDocs.com 8 Running Head: COST MANAGEMENT AND COST SCHEDULE Cost Management and Cost Schedule Kevin Moseley GM 592 Dr. Fleming 12/24/2018 1 COST MANAGEMENT AND COST SCHEDULE 2 Table of Contents Table of Contents ............................................................................................................................ 2 Introduction ..................................................................................................................................... 3 Cost Management Plan ................................................................................................................... 3 Cost Baseline .................................................................................................................................. 4 Conclusion ...................................................................................................................................... 6 References ....................................................................................................................................... 7 COST MANAGEMENT AND COST SCHEDULE 3 Introduction With the planning of the Cost management and Cost Scheduling for the Ryder-Pepsi Warehouse Project, the cost estimates, the sources of funding, controlling, and managing all the cost attributed to the project will be integrated within a budget (Kerzner, 2018). The cost management and cost schedule will enable the project team to set the procedures and policies for documenting the process of ensuring that the project is implemented within its cost constraints. The Cost Management and Cost schedule will outline the costs of the Ryder-Pepsi Warehouse Project from the beginning to the end to facilitate cost budgeting, cost control, cost estimating throughout the lifecycle of the project. The Project Manager will be accountable for presenting all reports of the project’s cost until the completion of the project. The Project Manager will also update the Pepsi managers and executives on the status of the cost management and performance of the project. Reports will be sent out weekly to recap the previous week and to forecast the cost and expectations for the next week. Cost Management Plan The Cost Management Plan for the Ryder-Pepsi Warehouse Project will cover cost definition of each element of cost to be incurred, the cost baseline, and the mode of managing all the costs throughout the lifecycle of the project. The short deadline means that the project must be implemented within the costs constraints (Harrison & Lock, 2017). While the total costs of the project stand at $242,550, the other costs relating to equipment, material, and other components have also been factored into this total costs. The WBS was used as the baseline for apportioning these cost while work will run from Monday to Friday with a break of two days of COST MANAGEMENT AND COST SCHEDULE 4 the weekend. Every cost element is estimated in US dollars and rounded off to the nearest 0.1 of a dollar. The cost management plan will help the manager to keep the cost of the project under their control and ensure effective utilization of all the resources. It will also restrict the implementation within the cost constraints to achieve better and quality performance. In order to ensure that the cost management plan serves the interests of all stakeholders in the project, they must be developed in the creation of the plan to ensure active participation in its implementation through the project lifecycle. Cost Baseline The cost baseline provides the process to be used to subject the costs of the project to control and minimize any changes to the costs to an acceptable level. A change control board will be set to approve any changes in the cost to avoid possible interference with the project deliverable (Kerzner & Kerzner, 2017). The project sponsor will then adopt the changes and then document the changes for future reference. Formal requests will be made for each deliverable to facilitate cost management and control. Below is a cost baseline that would be used for the purpose of the project. Using the cost baseline, the project managers will create a time-phased budget that is effective in monitoring and measuring the performance of every costs element in the project as it progresses through its lifecycle. There would be a provision for contingency costs to cater for the unidentifiable costs elements attributed to the implementation of the project. COST MANAGEMENT AND COST SCHEDULE Resource Name Ordering Signage and Decals Ordering Forklifts, Walkies, Recharge Stations, and Battery Setting Internet Networks and Phones Hiring and Converting Current Associates Installing TV’s, Printers, and Computers Purchasing Two Switcher Trucks Purchasing Two Miscellaneou s Office Supplies Installing Punch In/Out machine Safety 1 Project Manager 2 Facilities 3 Information Technology 4 Human Resource 5 5 Safety Team Total Hourly Rate Total Estimated Cost $650.00 50 520 80 $50.00 $32,500 $140.0 0 $29,400 $20.00 $3,200 $40.00 $8,800 $10.00 $6,000 $60.00 $90,000 $20.00 $10,000 $30.00 $80.00 $6,900 $32,000 $210.00 80 70 60 $160.00 80 80 $220.00 90 50 80 $600.00 600 $1500.0 0 600 700 $500.00 500 $230.00 100 50 80 400 $400.00 COST MANAGEMENT AND COST SCHEDULE Equipment Mobile Scanners Hiring Thirdparty Security Company Hiring Janitorial Staff TOTALS 6 200 $200 $15 $3,000 $10 500 300 600 1230 250 $800 $8,000 $15 1300 300 630 980 $6320 $12,750 $242,550 Conclusion In conclusion, the cost management and costs schedule for the Ryder-Pepsi Warehouse Project will provide a detailed cost management plan on how to implement the project within the cost constraints. It is for this reason that holidays that fall within the project schedule were negotiated for between the project managers and the stakeholders to ensure that the project does not go beyond the scheduled duration. In addition, costs relating to the project implementation was calculated on an hourly rate and there is no anticipated escalation in costs within the scheduled timeframe of the project. COST MANAGEMENT AND COST SCHEDULE References Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge. Kerzner, H. (2018). Project management best practices: Achieving global excellence. John Wiley & Sons. Larson, E. W., & Gray, C. F. (2015). A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute. 7 Scope Management and WBS Ryder-Pepsi Scope Management and Work Breakdown Structure Kevin Moseley Purdue University Global Dr. Jennifer Fleming GM 592 1 Scope Management and WBS Table of Contents Introduction Page 3 Project Scope Statement Page 3 Work Breakdown Structure (WBS) Page 5 Conclusion Page 5 References Page 7 2 Scope Management and WBS Introduction When conducting a project, Project Managers (pm) must keep track of the timeline and the responsibilities of the project. Enforcing the scope and creating a work breakdown structure will help the PM control the flow of the project from the beginning to the end. My plans is to work with Ryder System, Inc. to open warehouse services to Pepsi in Brampton, Ontario taking over their current third party logistics provider. Project Scope Statement Ryder System, Inc. currently is operating at a Pepsi warehouse facility as a third party in Tracy, California and we want to capture the market in Brampton, Ontario. By the end of the project we will fully take control of all warehouse operations including: • Project management • Inventory control 3 Scope Management and WBS • Staffing • Human resource • Shipping • Facilities • Finance Before we take full responsibility of the deliverables listed above, we will be responsible for getting current inventory from the current third party warehouse company over the facility and also doing a physical inventory of our own once we take possession of the warehouse. Our team needs to find out if the current staff works with the previous company or if they are Pepsi associates that can be convert over to Ryder. Our Legal team will have to study the laws of Canada and know how to address situations that differ from the United States of America (Baar & Jacobson, 2004). Our human resource team will aide in hiring and documentations for employees in Canada. Before we start our operation, we will need to build relationships with the freight carriers that are transporting the loads and find out contact information for scheduling appointments for drop offs and pickups. Ryder facilities team will need a blueprint of the warehouse to get utilities and signage set up. Lastly, we will need to gather a plan on finance metrics that Pepsi and Ryder agree on that are in regards of running their operations. There are a few constraints to this project startup such as: • Unit of measure and speed • Legal laws in Canada • Support team from United States of America These constraints could hold back the initiation or progression of the project. In America we use LBS and MPH but in Canada it is used at KG and KPH. This will need to be corrected for signage around the facility and for bills of lading information. Another constraint is understanding every Canadian law and statue 4 Scope Management and WBS there so we do not impose any fines or violations for the company. The last constraint will happen from the United States of America employees that are coming to Canada to help out with the project. Work Breakdown Structure Listed above in the WBS are the objectives to accomplish for the project to be successful. The seven deliverables are: Project Management, inventory control, staffing, human resource, shipping, facilities, and finance. The work packages would be administration, physical inventory check, training program materials, new hires, scheduling, equipment and supplies, and financial metrics. Once we successfully have each of those work packages completed we are closer to finishing off the project (Hauser, 1994). The elements in this WBS control accounts would be inventory control, shipping, facilities, and finance. Conclusion In conclusion, PM’s need to have control over every aspect of this project to ensure that we are delivering the service that was presented to the customer (Mansuy, 1991). Time management and 5 Scope Management and WBS finishing the project on time is imperative for the customer as well because it could cost us more money to operate longer than we expected (Postula, 1991). Creating a WBS is a great visual tool for stakeholders to view what we have planned and upcoming in regards to their project. Some may have suggestions to change some parts and that is fine because we want to deliver a good service to them. 6 Scope Management and WBS References Baar, J. E., & Jacobson, S. M. (2004). The keys to forecasting-#2 work breakdown structure. Cost Engineering, 46(3), 12-14. Hauser, M. A. (1994). WBS development for an $11 billion transportation project.Transactions of AACE International, 1994, 7. Mansuy, J. (1991). Work breakdown structure: A simple tool for complex jobs.Cost Engineering, 33(12), 15. Postula, F. D. (1991). WBS criteria for effective project control. American Association of Cost Engineers.Transactions of the American Association of Cost Engineers, , 7. 7 Ryder-Pepsi Warehouse Project Kevin Moseley Purdue University Global Dr. Jennifer Fleming GM 592 12/16/2018 1 Table of Contents Introduction Pg. 4 Responsibility Chart Pg. 4 Gantt Chart Pg. 6 Network Diagram Pg. 7 Conclusion Pg. 8 References Pg. 9 2 Introduction When conducting a project, Project Managers (pm) must keep track of the timeline and the responsibilities of the project. Creating responsibility charts, Gnatt charts, and a network diagram is a beneficial for the customer and team assisting in the project. Everybody involved in the project will know their roles and what task they are responsible for so there will not cause any confusion between team members. My plans is to work with Ryder System, Inc. to open warehouse services to Pepsi in Brampton, Ontario taking over their current third party logistics provider. Responsibility Chart As shown above, we are planning to have five major departments involved with the success of this project. The five departments are; The Project manager, Facilities team, Informational Technology (IT), Human Resources (HR), and the Safety team. Each department will have their own individual team members to assist with the tasks assigned (Herroelen, 2005). 3 The project manager responsibility will be to oversee the entire project and ensure that each department is getting their tasks done in a timely manner. The Project manager will also be in responsible for hiring the third party companies. The administration tasks will be handled by the project manager and they will keep track of all admins hours contributed to the project. They will also be responsible for sending out emails, filing paperwork, and facilitating travel schedules for all of the managers coming to assist in starting up the project. Lastly, they will be responsible for being the main person in communication with the customer and scheduling meeting to present to them. The Facilities team will be responsible for ordering and setting up in the warehouse our signs, forklifts, walkies, battery station, and switcher trucks. They also will be responsible for regular maintenance issues such as; the pallet racks being stuck, dock door or plate not working, or if the equipment is having issues. The Safety team will work alongside the facilities team to evaluate if the equipment is safe and if the signs are hanging in safe locations. Safety team will also be responsible for training new associates of safe practices in the warehouse and monitoring the safety on the day to day operations for all associates and managers. HR responsibility will be to hire new associates and if there was existing staff from the previous company they will convert them over to Ryder. They will also be responsible for training the associates on the clocking in and out procedures, culture of our company, and shift plans for each associate. Our IT team will be responsible for setting up the internet network and ordering all of our electronics such as; TV’s, computers, printers, mobile scanners, and installing the time clock for the associates. IT will also be responsible for trouble shooting the day to day technical issues within the warehouse or with the equipment. 4 Gantt Chart Figure 1.2 is a Gantt chart of the Ryder-Pepsi Warehouse WBS activities. This chart is a visual that shows the various tasks that we would need to complete in the recommended days to launch our warehouse project (Pankaja, 2005). According to our critical path, we will work on the tasks that would take the longest to complete first such as purchasing and receiving the forklifts, walkies, switchers, and hiring associates. Not only because the tasks take longer to complete but they are also the most important to keep up and maintain during our day to day operations. 5 Network Diagram 1 1 1 Start 1 1 58 25 25 A 0 25 8 E 53 3 I 0 = Critical Path ES LS 6 Duration Task Slack EF LF 26 26 8 9 25 62 3 2 61 69 21 46 B 0 46 27 27 7 F 53 15 10 68 69 2 J 0 5 1 70 71 14 60 C 0 60 28 28 3 18 G 53 71 1 2 K 0 7 1 72 73 72 14 D 0 74 74 3 H 53 21 2 L 0 9 74 74 Finish The Network Diagram is designed to show illustrations of the start of the project to the end of the project with incorporating the tasks associated with it (Jarsky, 2011). Listed above is the Network Diagram for the Ryder-Pepsi Project and the duration of task completion along with start dates. Within the network diagram it is preferred to start with the tasks that are going to take longer to complete and most relevant to the project. Conclusion It is imperative that Project Managers who are conducting a project must keep track of the timeline and the responsibilities of the project. Responsibility charts, Gnatt charts, and a 7 network diagram is definitely beneficial for the customer and team assisting in the project. Our plan is to start this project December 22nd and the estimated completion date is March 19th. 8 References Herroelen, W. (2005). Project scheduling-theory and practice. Production and Operations Management, 14(4), 413-432. Jarsky, C. (2011). On computer modelling of the building process in construction planning and management. Organization, Technology & Management in Construction, 3(2) Pankaja, P. K. (2005). Effective use of gantt chart for managing large scale projects. Cost Engineering, 47(7), 14-21. 9
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Running head: COST MANAGEMENT PLAN

Cost Management Plan
Name
Institution
Course
Tutor
Date

1

COST MANAGEMENT PLAN

2

Table of Contents
Introduction ..................................................................................................................................... 3
Cost Management Plan ................................................................................................................... 3
Cost Baseline .................................................................................................................................. 4
Conclusion ...................................................................................................................................... 7
References ....................................................................................................................................... 8

COST MANAGEMENT PLAN

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Introduction

The Project Manager is responsible for drafting all costs of Ryder-Pepsi Warehouse
project. The project manager will meet with senior management of Ryder-Pepsi Warehouse on
occasional basis to review performance of the project under implementation. The concept of
earned value will be important for measuring performance of the project so that the management
has clear...


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