CRICOS-Rec Centre Web Development Project
- Prepare a cost model, for the following 6 month (24 week) “Rec Centre Web Development Project”. The total cost estimate should be $210,000. Use the WBS provided. Note the following assumptions and document any additional assumptions you make in preparing the cost model. How much is your contingency reserve? Use Table 1 (at end)
- assume all work a 38 hour week @ 7.6 h/day (pro-rata)
- assume project manager works on project management tasks only for 2 days p/wk @ $100.00 p/hr
- assume project team is composed of 3 members @ 60 p/hr, available:
- 5 day p/wk on project management tasks
- 5 days p/wk on product related deliverables
- assume all product related activities have F-S relationship
- assume requirements definition will take a week to complete in week 1
- assume each of the web site design activities will take 1.5 weeks to complete commencing in week 2
- assume each of the web site development activities will take 3 weeks to complete
- assume testing will take 2 weeks
- assume training and support will take 3 weeks to complete
Work Breakdown Structure –Rec Centre Web Development Project
Term
Formula
Calculation
planned value (PV)
PV
$120,000
earned value (EV)
EV
$100,000
actual cost (AC)
AC
$90,000
budget at completion (BAC)
BAC
$200,000
cost variance (CV)
CV = EV – AC
$100,000 - $90,000 = $10,000
schedule variance
SV = EV – PV
$100,000 - $120,000 = ($20,000)
cost performance index (CPI)
CPI = EV / AC
$100,000 / $90,000 = 111% or 1.11
schedule performance index (SPI)
SPI = EV / PV
$100,000 / $120,000 = 83% or 0.83
estimate at completion (EAC)
EAC = BAC / CPI
$200,000 / 1.11 = $180,180.18
- Project management
- Requirements definition
- Web site design
- Registration for recreational programs
- Registration for classes and programs
- Tracking system
- Incentive system
- Web site development
- Registration for recreational programs
- Registration for classes and programs
- Tracking system
- Incentive system
- Testing
- Training, roll out, and support
- How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?
- Review the estimate at completion (EAC) figure for this project. Is the project performing better or worse than planned?
- Review the schedule performance index (SPI) figure for this project. How long it will take to finish this project?
- Using the cost model you created above, prepare a cost baseline by allocating the costs by WBS for each month of the project. Use TABLE 2 (at end)
- Assume you have completed three months of the project. The BAC was $200,000 for this six-month project. Also assume the following, and answer the questions below.
