-8489956545580BSBPMG533 Manage project cost
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-8489956545580BSBPMG533 Manage project cost
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Contents
TOC o "1-3" h z t "RTO Works Heading 1,1" Section 1: Determine project costs PAGEREF _Toc159567269 h 5Section 2: Monitor project costs PAGEREF _Toc159567270 h 8Section 3: Complete cost management processes PAGEREF _Toc159567271 h 12
Student name: Assessor: Date: Business this assessment is based on: Project description:
Section 1: Determine project costsSummarise important cost management information for the project using the table below.
Financial objectives of the project: Role and responsibilities assumed in the project: Relevant budget information: Cost management policies and procedures summary: Tasks and activities (WBS): Summarise the outcomes of your meeting with the team members to discuss and agree on the project cost management details, using the table below.
Note: If not already viewed in person by your assessor, attach proof of your meeting to this section of your portfolio.
Who did you meet with? What are the agreed actions required to maintain the financial objectives? What are the resources required for each task in the WBS, and the agreed maximum costs? What are the agreed maximum project costs for required resources? Describe the agreed processes and procedures for monitoring actual expenditure against the budget:
These must include the ongoing recording of income and expenses. Estimate costs and develop a budget. Use the table below to plan your budget and then use a digital application to record the cost estimates and budget (you may use the Budget Template or any other application preferred by your business).
Note: Attach your estimated costs and budget spreadsheet/workbook/document to this section of your portfolio.
Internet research on resource and activity costs.
What are the estimated costs of the required resources, based on internet research?
Include links showing your information sources. Input from an external stakeholder
Which external stakeholder have you consulted to obtain information regarding resource/activity costs?
How did you seek their guidance and input?
Attach proof of how you sought guidance e.g. request for a quote etc. Other pre-existing information:
What pre-existing information is available that may inform the project budget? Estimation calculations using an appropriate method.
Provide an example of how you used an appropriate estimation calculation technique.
If you are using the case study, the organisations policy and procedures stipulate that cost estimates should be made using a bottom-up estimating technique. Use the work youve done in this assessment so far to develop a Cost Management Plan (you may use the template in the Simulation Pack or any other template used by your business).
Note: Attach your Cost Management Plan to this section of your portfolio.
42862533591500Attach: Proof of team meeting
Proof of external stakeholder consultation
Estimated cost and budget
Cost Management Plan
Section 2: Monitor project costsIn this section, you will provide proof of how youve monitored project costs and reviewed cost-management processes on two separate occasions.
Occasion 1: When did you monitor the project costs?
Record any actual costs using the processes and procedures outlined in your Cost Management Plan. If you previously used the Budget Template, add the necessary information in the relevant spreadsheet using the same MS Excel workbook. Otherwise, use the processes and procedures of your specific organisation.
You will still add more information related to this monitoring activity to your cost/budget workbook. You will attach proof further along once all adjustments have been made.
Identify any cost variations. Identify alternatives for adjusting resources and the budget to address the variations (at least two): Evaluate the alternatives to choose the best action (to ensure financial objectives are met). Implement the chosen action by updating your budget. Attach proof of your recorded actual expenditure to this section of your portfolio.
Attach your updated budget to this section of your project portfolio.
Change the version number of your cost estimate and budget workbook.
Review the cost management processes of the project so far.
What have you done well?
How can you improve? Write a financial report that includes:
a summary of the finances to date.
current expenditure details
variations and actions taken to address the variation
a review of the cost management processes to date. You may use the template provided in the Simulation Pack, or any other relevant template.
Attach your report to this section of your portfolio.
Draft an email to a relevant stakeholder to share the report with them. Attach your draft email to this section of your portfolio.
In your email, include general information about the report (e.g. what it is, how it can be accessed such as a link to the cloud-based storage location or a reference to an attachment, any action required by the stakeholder).
Occasion 2: When did you monitor the project costs?
Record any actual costs using the processes and procedures outlined in your Cost Management Plan. If you previously used the Budget Template, add the necessary information in the relevant spreadsheet using the same MS Excel workbook. Otherwise, use the processes and procedures of your specific organisation.
You will still add more information related to this monitoring activity to your cost/budget workbook. You will attach proof further along once all adjustments have been made.
Identify any cost variations. Identify alternatives for adjusting resources and the budget to address the variations (at least two): Evaluate the alternatives to choose the best action (to ensure financial objectives are met). Implement the chosen action by updating your budget. Attach proof of your recorded actual expenditure to this section of your portfolio.
Attach your updated budget to this section of your project portfolio.
Change the version number of your cost estimate and budget workbook.
Review the cost management processes of the project so far.
What have you done well?
How can you improve? Write a financial report that includes:
a summary of the finances to date.
current expenditure details
variations and actions taken to address the variation
a review of the cost management processes to date. You may use the template provided in the Simulation Pack, or any other relevant template.
Attach your report to this section of your portfolio.
Draft an email to a relevant stakeholder to share the report with them. Attach your draft email to this section of your portfolio.
In your email, include general information about the report (e.g. what it is, how it can be accessed such as a link to the cloud-based storage location or a reference to an attachment, any action required by the stakeholder).
61859414351000 Attach: Occasion 1: Proof of recorded actual expenditure.
Occasion 1: Updated budget
Occasion 1: Financial report
Occasion 1: Draft email
Occasion 2: Proof of recorded actual expenditure.
Occasion 2: Updated budget
Occasion 2: Financial report
Occasion 2: Draft email
Section 3: Complete cost management processesComplete the table below to complete and review your cost management processes:
Record any final income/expenses to your budget. Attach your final updated budget to this section of your project portfolio.
(Change the version number).
Summarise project outcomes. Identify any cost management issues over the projects life cycle (at least one). Make recommendations for future improvements (at least three).
How can you improve on the processes followed to complete Section 1?
How can you improve on processes followed to complete Section 2? 55370224654100 Attach: Updated final budget
Case study
Manager Networks is an organisation that provides networking events for business people across Australia. It also runs an annual conference event focussing on an area of business considered to be of key importance.
Each year, it is hoped that the conference will:
provide information on cutting edge leadership topics that focus on leadership skills, knowledge and trends
promote Management Networks, as well as providing professional development for its clients.
You are the newly appointed Administration Manager for Manager Networks. You have been asked to coordinate the conference project as the Project Officer, including managing the project costs and making sure the budget is met and adhered to. Your project team will include:
Donna Chisholm, who is the co-ordinator of the Manager Networks trainers
Dan Streep, the Administration Assistant has had experience with the ground level work required for a conference.
Erin ODonnell, the Manager Networks Marketing Manager, will co-ordinate the marketing material.
Information relevant to Section 1 of the Project Portfolio
The CFO (Edith Partridge) has set a net profit target of $200,000. All expenses should be accounted for at the completion of the project. To help you get started, she also provided the conference budget information from the previous year. The CFO is aware that costs associated with running a conference have increased significantly due to the COVID-19 pandemic and has suggested that this budget is only used as a guide. She expects a similar income as that of the previous year.
Expenses Income
Venue $50,000 Registration fees individuals $100,000
Catering $20,000 Registration fees companies $100,000
Speaker fees $10,000 Sponsorship: Gold $50,000
Speakers travel $4,520 Sponsorship: Silver $45,000
Publicity $7,250 Sponsorship: Bronze $100,000
Courier $1,595
Entertainers $6,400
Printing $3,500
TOTAL 103,265 TOTAL $395,000
You are required to report back to the CFO on a monthly basis, providing a financial report to show the projects progress.
Information relevant to Section 2 of the Project Portfolio
The project commenced 1 month ago. All the team members are enthusiastic and fortnightly meetings have taken place. You are satisfied that at this early stage, the planned processes and procedures are being followed. At a recent team meeting, you received the following preliminary information:
Registration software quotes show best option to be $5,500. The full amount has been paid for.
A deposit of $3000 has been paid for equipment hire (quoted amount $23,000).
Marketing has commenced, with $4000 already having been spent (marketing and entertainment quotes have been received to total $10000.
The venue that meets all requirements has been confirmed and a deposit of $15000 paid. The quote received was $82,000.
Staff costs to date are $2000.
After another 2 months passed, the following information was discussed at a team meeting:
Catering quotes have been analysed and a quote for $16000 has been accepted. Half the amount has been paid.
Speakers have been confirmed After some negotiation, fees will total $16000.
Speakers travel arrangements have been made and a total of $8000 has been paid.
The Administration Manager (Project Officer) has noticed that the initial enthusiasm has died down. Not all quotes have been accounted for (as planned) and some team members are slow in responding to emails and update requests. This means the administration manager cannot update and report back to the CFO as accurately as possible.
Information relevant to Section 3 of the Project portfolio
All costs have been paid. Income for the conference was as follows:
Actual income:
Registration fees individuals $110,000
Registration fees companies $95,000
Sponsorship: Gold $50,000
Sponsorship: Silver $47,000
Sponsorship: Bronze $93,000
All expenses have been paid for, as quoted. The following additional amounts were paid:
$4000 for printing
$2000 for courier costs
The conference took place as planned. As the time for the conference grew closer, the team re-engaged and put in an outstanding effort. However, when asked for feedback, a few team members requested that they too have visibility of the budget and that costs are represented graphically for them to understand and interpret quickly.
Manager Networks
Conference Plan Brief
The following information reflects notes from the Senior Management Team about the proposed conference.
Conference purpose, style and outcomes
Purpose of the conference: to provide a conference that focuses on leadership skills, knowledge and trends.
Desired outcomes:promoteManagement Networks, provide professional development for members.
Conference theme: cutting edge leadership topics
Conference style: formal with a balance of conference elements to ensure that outcomes are achieved. Conference is to be a one-day event and include at least one key-note speaker, four sessions and breaks. Timing is 9 am to 4 pm.
Venue
Conference facilities: requires a centrally located venue in Brisbane that has a conference room that can accommodate up to 150 people. Also want to accommodatestaff andspeakers there so will needto be rooms for speakers either within the conference venue or in nearby hotels. Accommodation for approximately 20 people.
Venues must be able to provide required conference equipment. Need to be able to access audio-visual equipment including microphones, projectors and screens for projecting. Also need lecterns and an electronic whiteboard.
Conference catering should be on-site and include a high-quality morning tea, lunch and afternoon tea.
Use a web site such ashttps://www.ivvy.com/ to calculate price
Draft conference program
The conference program must include key sessions with timing included based on the timing advised in the meeting plus the number of speakers.
The program must also reflect, as required, a balance of conference elementse.g.networking sessions mixed with formal sessions. Frequent breaks.
Recommended speakers
Speakers: should be well-known. Focus on Australian speakers with maximum one international speaker.
Arrange 5 speakers, fees to be paid - $2,000 per speakers plus travel costs depending on their location.
Participant profile
Targetparticipant group is managers in all industries.
Proposed budget allocation and timeline
Budget: Projected numbers will be 150 people and want to make at least 50% profit after costs. Registration costs should be determined based on this. The student will need to develop a preliminary budget based on estimated costs and proposed registration fees. This will include identifying all the possible expense and estimated costs and then calculating the registration fee required to make at least 50% profit.
Budget variances of up to 5% can be accommodated but must be reported.
Timelines: conference to be conducted six months from day of meeting.
Conference timing: not during school holidays or on weekends.
Conference Action Plan(Work breakdown structure)
Task When Who
Venue
Get quotes
Decide venue
Book venue and equipment
Arrange catering Six months prior to conference Project Officer
Speakers
Decide topics
Identify speakers
Arrange speakers
Brief speakers Six months prior to conference Project Officer
Marketing
Decide marketing communication strategies
Develop promotional materials
Implement marketing communications Commencing on finalisation of venue and speakers Project Officer
Registration
Prepare conference materials
Create registration process
Process registrations Two months prior to the conference Project Officer
Promotion
Advertising: Mass media advertising (such as broadcast and print media). High cost and impersonal but may result in high attendance.
Digital marketing communication: for example, social media channels (such as Facebook, Twitter, YouTube and LinkedIn) together with search engine advertising (SEA) and organisation-sponsored websites. Interactive source of marketing that can be highly effective.
Direct marketing using several types of media, for example, email marketing to reach consumers and encourage them to purchase or take some form of immediate response.
Using database marketing to promote the conference to existing customers.
Sales promotion, for example, using price reductions, contests or sweepstakes to encourage consumers to attend.
Sponsorship marketing through associating with a charity for example. Promotes a feel-good factor.
Using marketing public relations as a low-cost option as the company does not pay for media time or space as free print space or broadcast. Time is provided because journalists consider the information pertinent and newsworthy for their audiences. In this way MPR can also be seen as credible and unbiased, as it is not paid for.
Registration
Each attendee must register separately.
Early/author registration payments must be received by DATE, for the early registration fees to apply.
If payment is not received by this deadline, no early bird payment is due.
On the day print the official confirmation of registration e-mail and bring it with you to the on-site registration desk.
Project Management Policy and Procedures
Purpose
Manager Networks adopts a standard approach to project management to ensure the consistent success of their projects. This policy and procedures are designed to specify the requirements for managing projects to ensure that project scope is articulated, stakeholders are involved, costs and risks are managed, and project benefits are maximized. These policy and procedures apply to all projects.
Types of project
Generally, there are three types of project: small project, medium project and large project.
A small project is defined as a project that has a budget of less than $25,000 and expected duration of less than 8 weeks.
A medium project is defined as a project that has a budget of between $25,001 - $100,000 and expected duration of between 8 16 weeks.
A large project is defined as a project that has a budget of between $100,001 - $200,000 and expected duration of between 4 - 12 months.
In each of the above cases the following staff are to be involved.
Small Project:
Project Manager/Officer
Project team member (at least 1 selected from suitable staff)
Medium Project:
Project Manager/Officer
Project team member (at least 1 selected from suitable staff)
CFO or Operations Manager (as approver of all decisions)
Large Project:
Project Manager/Officer
Project team members (at least 2 selected from suitable staff)
CFO
Project staff will vary depending on the type of project.
Project Phases
All projects should progress through the following project phases.
Stage one
Stage one of the project management process is triggered when the organisation identifies the need to solve a problem, improve a process or implement a new service. It defines what the project will attempt to achieve based on appropriate business justification.
Key tasks involved in this phase will be the preparation of project initiation documentation being the project charter and that includes:
Overall outline of project
Relationship between project and organisational strategies/goals
Proposed project objectives, outcomes and benefits
Proposed project governance
Proposed size of the project including budget and staffing.
Bottom-up estimation techniques should be used for cost estimations.
Stage two
The purpose of this phase is to determine how the project will be executed. This means developing a project management plan based on the project charter. Essentially the preparation of a detailed model of the work required to achieve the project objectives is required and confirmation of the budget and project arrangements suggested in the project charter. Risks are also defined and documented in a risk management plan. A detailed schedule is also prepared.
Stage three
The purpose of this phase is to implement the project. Regular reports of the progress of the project should be provided to relevant staff, as well as regular meetings as outlined in the project management plan.
Stage four
This is the final phase of the project and is the formal closure of the delivery component of the project. It has two main outcomes:
The handover of project outputs to the operational areas responsible for ongoing support and maintenance (if applicable to the project); and
The evaluation of the success of the project
The evaluation of the success of the project is important part of the project. The actual project outcomes and cost must be compared with the planned outcomes and determine whether what was achieved by the project was worth the amount invested.
Project recommendations to be included in project evaluation report should include a recommendation to close project.
All project issues arising must be documented in the project issues register.
Project Communication
It is expected that the project team meet at least fortnightly, depending on the size of the project.
Records of every meeting must be kept.
Regular reports must also be sent to senior management and/or the project steering committee regarding project progress.
A closure report must be written by the Project Manager within three months of the projects completion. This report is to be sent to the CFO.
All project information must be checked by the Project Manager thoroughly to ensure the quality and accuracy of all project data.
Once the project is completed, all project information and communication must be stored in the folder Project Information and Communication for each project.
Program Communication
A program is a set of interrelated projects, each of which has a project manager. Multiple projects, or a program of projects, refers to a number of related projects managed by the same person as a program to achieve organisational objective/s.
Program Managers manage a suite of projects, which together constitute a program.
The purpose of establishing a program and appointing a Program Manager is to ensure that all projects are mutually beneficial for each other.
A Program Communication Plan should be developed to identify stakeholders, their differing interests and engagement methods depending on their communication needs.
Project record keeping
A project folder is to be established for each project. The overall folder should be the name of the project e.g. Human Resources Information System Project and sub-folders should be created including folders for the business case, project management plan, project reports, minutes and any other relevant folders e.g. briefs to contractors. All documents should include the title of document and the date when it was saved.
Project Cost Management Plan
Introduction
Outline the purpose of the cost management plan in relation to the project.
Financial objectives
Include the financial objectives of the project and any actions required to maintain the financial objectives.
Resource requirements and cost
Summarise the major resources requirements, including the estimated and maximum allowable costs.
Processes and procedures for monitoring actual expenditure against the budget
Describe the processes for monitoring the actual expenditure (include recording of expenses).
Potential causes of increases in costs
Describe at least three factors that need to be considered that would increase costs
Project cost control procedures
Describe cost control management processes that will be followed.
Complete the table below to show allowable variations in costs and approval requirements.
Project Financial Report
Project: Date: Summary of finances to date:
Summarise the financial situation for the project to date.
Current expenditure:
Summarise the costs to date.
Variations:
Summarise the variations to estimated costs, and explain how you addressed the variation.
Cost management processes review:
Review the cost management processes followed to date.
What have you done well?
How can you improve?
Assessment Task 2: Workplace Project
Complete the following activities:
1. Carefully read the following:
This project requires you to develop and manage a projects costs. You must manage the costs on two separate occasions across a projects lifecycle, including responding to variations, recording expenditure and creating financial reports.
You can do this for a real project at your workplace, for a project associated with a start-up business you are working on yourself or you can use the Simulation Pack provided.
Vocational education and training is all about gaining and developing practical skills that are industry relevant and that can help you to succeed in your chosen career. For this reason, basing your project on real relationships with classmates or work colleagues will mean that you are applying your knowledge and skills in a relevant, practical and meaningful way!
If you use your own business or workplace, you should have sufficient financial information to complete the requirements of the assessment (read through the assessment to make sure you have access to the required information). Also make sure that you have access to at least one cost-management related policy and procedure, one budget and a Work Breakdown Structure (WBS) for the project. Speak to your assessor to get approval if you want to base this on your own business.
If you are basing this assessment on the case study business, read through the Simulation Pack in preparation for this assessment. All the information needed to complete this assessment is contained in the Simulation pack.
You will be collecting evidence for this unit in a Project Portfolio. The steps you need to take are outlined below. Before you begin, complete page 4 of your Project Portfolio. You must describe the organisation you are basing this assessment on and provide a short description of the project for which youll manage the cost.
iStart working on Section 1 Determine project cost of your Project Portfolio. Steps 2 to 5 form part of Section 1.
If you are basing this assessment on the case study (Manager Networks), further information to complete the next steps is available in the Simulation Pack.
If you are basing this assessment on your own business, you will need sufficient numerical information to estimate costs, develop a budget and create a Cost Management Plan.
2. Summarise important cost management information
Summarise any information that relates to:
the financial objectives of the project
your role in the project (including the responsibilities)
organisations budget (or any other budget relevant to the project)
cost management (e.g. monitoring actual expenditure against the budget, financial completion of project, estimating techniques, budget tolerances etc.)
the project task and its activities (including the Work Breakdown structure (WBS)).
iMake sure you review at least one policy and procedure relating to cost management. You must also review a budget.
3. Meet with your project team members to discuss and agree on the project cost management details
Meet with at least two project team members. At the meeting:
discuss the financial objectives of the project and agree on actions required to maintain these objectives.
identify the resources required for each task in the WBS.
agree on the maximum project costs for required resources
discuss processes and procedures for monitoring actual expenditure during the project lifecycle against the budget (these must include details about the ongoing recording of income and expenses as well as timely, accurate financial reporting).
iTake notes at the meeting, as you will use the agreed outcomes of the meeting throughout your assessment.
Each meeting should take 30 minutes. This will either be attended in person by your assessor or they will attend online. If you are in the workplace, you may like to video record the session for your assessor to watch later (attach proof to Section 1 of your portfolio). Your assessor can provide you with more details at this step. Make sure you follow the instructions above and meet the timeframes allocated.
During the meeting, you will need to demonstrate effective communication skills including:
speaking clearly and concisely
using an appropriate tone and the correct syntax
asking questions to identify required information and understand the views of others
using active listening techniques to confirm understanding.
selecting appropriate conventions and protocols (e.g. formal greeting, handshake etc.).
4. Develop a budget
First estimate the costs associated with the required resources for each task/activity in the WBS (identified at your team meeting). Then use your estimated costs to develop a budget for the project.
iUse an appropriate estimation technique to estimate project costs (if you are using the case study, the organisations policy and procedures stipulate that cost estimates should be made using a bottom-up estimating technique).
Your budgeted amounts should not exceed the maximum resource costs agreed on at your meeting.
Information should be obtained from a variety of sources:
use the internet to research resource and activity costs.
seek input from an external stakeholder (e.g. email a consultant for information, request a quote from a supplier etc.)
use existing information (e.g. previous budget) to obtain information on resource and activity costs.
Use a digital technology application (e.g. MS Excel) to record your cost estimates and develop your budget. You may use the MS Excel template provided (Budget Template), or any other appropriate application used by your business. You will use this same workbook later on in this assessment to monitor project costs (step 6).
5. Develop a Cost Management Plan
Use the information youve gathered and developed in this assessment so far to develop a Cost Management Plan that includes:
a brief introduction
financial objectives of the project
actions required to maintain financial objectives
identify the resources required
estimated and maximum project costs for required resources
processes and procedures for monitoring actual expenditure against the budget (these processes must include the recording of actual expenses)
potential causes for increased costs
cost control procedures (variation rates and approval requirements).
iYou may use the template provided in the Simulation Pack, or any other relevant template.
Your plan should only include information that falls within the scope of your role and responsibilities (youve already defined these in step 2).
The text of your plan should be in grammatically correct English, written in an appropriate (polite, business-like) style.
Make sure you have answered all questions in Section 1.
You are required to attach certain documents as part of your evidence review the documents you need to attach as outlined in Section 1 of the Project Portfolio.
Submit Section 1 to your assessor.
iStart working on Section 2 Monitor project costs of your Project Portfolio. Steps 6 to 8 form part of Section 2.
Assume that a short period of time has passed and the project has commenced (but has not yet been completed).
If you are basing this assessment on Manager Networks, further information to complete the next steps is available in the Simulation Pack. Assume that one month has passed.
If you are basing this assessment on your own business or workplace, you should have sufficient financial information available about actual costs of the project to date. The costs should indicate at least one variance requiring action.
6. Monitor the project costs (early on in the Project life cycle) and take any necessary action
First record any actual costs to your budget using the processes and procedures outlined in your Cost Management Plan. Then use the recorded information to identify any cost variations. For at least one variation:
identify at least two alternatives where resources and budget can be adjusted to accommodate the variation
evaluate the alternatives
implement the best way forward (by updating your budget).
Review the cost management processes followed by your team to date.
iIf you previously used the Budget Template, add the necessary information in the relevant spreadsheet using the same MS Excel workbook. Otherwise, use the processes and procedures of your specific organisation.
Make sure your actions match those outlined in your Cost Management Plan.
Assume you have permission to implement the budget and resource changes.
Change the version number of your cost estimate and budget workbook.
7. Provide an interim financial report to an appropriate stakeholder
Write a financial report that includes:
a summary of the finances to date.
current expenditure details
variations and actions taken to address the variation
a review of the cost management processes to date.
Draft an email to the stakeholder to share the report with them. In your email, include general information about the report (e.g. what it is, how it can be accessed such as a link to the cloud-based storage location or a reference to an attachment, any action required by the stakeholder).
iYou may use the template provided in the Simulation Pack for your report, or any other relevant template as per your organisations requirements.
The text of your report and draft email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
Assume that a further period of time has passed and the project has commenced (but has not yet been completed).
If you are basing this assessment on Manager Networks, further information to complete the next steps is available in the Simulation Pack. Assume that three months has passed.
If you are basing this assessment on your own business or workplace, you should have sufficient financial information available about actual costs of the project. The costs should indicate at least one variance requiring action.
8. Repeat steps 6 and 7 for the later time period
Use the additional financial information from the Simulation Pack or your business to repeat steps 6 and 7 at a later period of time (before the project is completed).
Make sure you have answered all questions in Section 2.
You are required to attach certain documents as part of your evidence review the documents you need to attach as outlined in Section 2 of the Project Portfolio.
Submit Section 2 to your assessor.
Assessor: see Project Portfolio Assessor Section 2 for guidance with marking. Provide feedback and if necessary, ask the student to make adjustments and resubmit their work.
iStart working on Section 3 Complete cost management processes of your Project Portfolio. Step 9 forms part of Section 3.
Assume that the project has now been completed.
If you are basing this assessment on Manager Networks, further information to complete the next steps is available in the Simulation Pack.
If you are basing this assessment on your own business or workplace, you should have sufficient financial information available about actual costs of the project.
9. Review the cost management processes
First record any final income/expenses to your budget, then review your financial reports (prepared in steps 7 and 8). Use the recorded information to:
summarise the project outcomes
identify any cost management issues over the projects life cycle (at least one)
make recommendations for future improvements (at least three).
10. Submit your completed Project Portfolio
Make sure you have completed all sections of your Project Portfolio, answered all questions, provided enough detail as indicated and proofread for spelling and grammar as necessary.
Submit to your assessor for marking.
GRADING CRITERIA
Grading criteria
Summarise important cost management information, including: the financial objectives of the project your role in the project (including the responsibilities) organisations budget (or any other budget relevant to the project) cost management (policies and procedures) the project task and its activities (including the Work Breakdown structure (WBS))?
Not Satisactory0 points
Satisfactory
1 pointsMeet with at least two project team members to: discuss the financial objectives of the project and agree on actions required to maintain these objectives identify the resources required for each task in the WBS agree on the maximum project costs for required resources discuss and agree on processes and procedures for monitoring actual expenditure during the project lifecycle against the budget (including details about the ongoing recording of income and expenses as well as timely, accurate financial reporting)? Develop a cost estimate for resources by: estimating costs using an appropriate technique using the internet to research resource and activity costs. seeking input from an external stakeholder using exiting information (e.g. previous budget) to obtain information on resource and activity costs using a digital technology application to record cost estimates?
Not Satisactory0 points
Satisfactory
1 pointsDevelop a budget using a digital technology application?
Not Satisactory0 points
Satisfactory
1 pointsDevelop a Cost Management Plan that includes: a brief introduction financial objectives of the project actions required to maintain financial objectives identify the resources required estimated and maximum project costs for required resources processes and procedures for monitoring actual expenditure against the budget (these processes must include the recording of actual expenses) potential causes for increased costs cost control procedures (variation rates and approval requirements)? Monitor project costs and review cost management processes on two occasions by: recording actual expenditure identifying variations identifying at least two alternatives where resources and budget can be adjusted to accommodate at least one variation evaluating the alternatives implementing he best way forward (by updating their budget) reviewing the cost management processes followed by their team at the time of monitoring?
Not Satisactory0 points
Satisfactory
1 pointsWrite a financial report (on two occasions following the monitoring) that includes: a summary of the finances to date. current expenditure details variations and actions taken to address the variation a review of the cost management processes to date?
Not Satisactory0 points
Satisfactory
1 pointsDraft an email (one separate occasion for each report) to a stakeholder to share the report with them?
Not Satisactory0 points
Satisfactory
1 pointsReview the cost management processes by: recording any final income/expenses summarising the project outcomes identifying any cost management issues over the projects life cycle (at least one) making recommendations for future improvements (at least three)?
Not Satisactory0 points
Satisfactory
1 pointsDemonstrate effective oral communication including: speaking clearly and concisely using an appropriate tone and the correct syntax asking questions to identify required information responding to questions as required using active listening techniques to confirm understanding?
Not Satisactory0 points
Satisfactory
1 points
