Student Name Student Number Unit Code/s & Name/s BSBPMG423 Apply project cost management techniques
Cluster Name If applicable N/A
Assessment Name Portfolio of Evidence Assessment Task No. 2 of 3
Assessment Due Date Date submitted / /
Assessor Name Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature Date / /
Instructions to Student General Instructions:
This task requires you to demonstrate the skills and knowledge requirements to estimate and implement cost management tools and techniques for assisting in project management environments.
The skills you learn will help you in understanding, developing and monitoring the impacts of project parameters on the project budget.
Assessment Conditions:
Time Allowed:
This task is to be submitted by the due dates advised in the Unit Study Guide. If a student requires an extension, then they must negotiate this with their assessor prior to the due date.
Level of Assistance Permitted (If Any):
This is an open book assessment task. All work must be your own.
Students may:
refer to learning resources, workplace and/or research further information
ask the Assessor clarifying questions
access the services of Studiosity to assist in interpreting questions or proof reading text
be referred to learning support for additional assistance.
Students must seek any required assistance, reasonable adjustment or negotiate extensions with Assessor prior to due date.
Location:
This assessment is to be completed in a workplace or a simulated workplace including the classroom or home office environment.
This task includes activities which require you to demonstrate practical and communication skills which need to be observed by your Assessor.
These skills and activities can be demonstrated and observed in any one of three ways:
in class
online
video recording.
(NB! Options available at the assessors discretion.)
If recording please confirm your identify as the student being assessed with name and student number, plus record consent from all participants at the beginning of the task.
You may use this comment, I am (insert student name and number). This activity is for the purpose of assessment only and will be recorded, viewed and stored following TAFE Queensland procedures. All participants consent to being recorded for these assessment purposes.
If recording please record and upload in maximum 5 minute segments.
Materials to be Supplied:
For this assessment, learners will need access to:
internet, device and word processing software (can be accessed through TAFE campuses and facilities)
the LMS and associated learning resources
organisational strategic and operational plans
workplace policies and procedures relevant to performance development
relevant legislation, regulations and codes of practice
appendices:
Appendix A Time phased spreadsheet 1
Appendix B Simplified budget
Appendix C Scenario Cost management project
Appendix D Time phased spreadsheet 2
Appendix E Time phased spreadsheet 3Appendix E Time phased spreadsheet 3
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:
All tasks have been completed in full and have been completed to a satisfactory standard.
Demonstrated knowledge and skills required to:
Assist in developing project budget
Monitor project costs
Contribute to cost-finalisation process
Work, Health and Safety:
Follow TAFE Queensland Student Rules.
Access TAFE Queensland Student Services for any additional support.
Conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment.
Ensure an ergonomically safe work environment to complete all assessment tasks.
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant questions with you and will arrange a date your 2nd attempt. If your 2nd attempt is unsatisfactory (U), or you fail to attend the scheduled date for a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details(if relevant) Please refer to Unit Study Guide for due date.
Submission requirements:
Review the Marking Criteria provided for this task to ensure you have evidenced all requirements.
Follow the instructions in the LMS to submit your assessment, demonstrating your ability to:
Follow organisational procedures for file naming, management and storage.
Use business technology.
Communicate professionally using appropriate terminology / language.
Organise and present information professionally e.g. relevant documents / templates, formatting, grammar and spelling.
Complete tasks in a timely manner.
Assessment to be submitted via:
TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/loginUsername; 9 digit student number
For Password: Reset password go to: https://passwordreset.tafeqld.edu.au/default.aspx>
Instructions to Assessor The students will demonstrate the skills and knowledge required to:
estimate project components using a range of different methods
develop a time phased project budget based upon a work breakdown structure
manage and monitor project budget using effective cost management tools and practices
Identify project variances, and either account for them or reduce them within project cost management environments
Assessors are to:
confirm expectations as detailed in Instructions to Student have been followed and met
provide feedback on all assessment attempts and identify additional learning and/or practice required by the student before their second attempt
use the Marking Criteria to record their assessment and feedback
negotiate to complete assessment tasks and/or resubmissions verbally, where the opportunity presents:
scribe the students response verbatim on the assessment task/marking criteria, and note the questions verbally addressed on the coversheet
initial and date additional comments.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.
Instructions to Students:
This assessment task requires you to create a portfolio of evidence to demonstrate your ability to:
estimate project components using a range of different methods
develop a time phased project budget based upon a work breakdown structure
Manage and monitor project budget using effective cost management tools and practices
Identify project variances, and either account for them or reduce them within project cost management environments
Before you begin this assessment, please familiarise yourself with the following:
Workplace policies and procedures relating to financial assets, liabilities and records
Relevant legislation, regulations and codes of practice
Project management budgets and related documentation
Marking Criteria BSBPMG423_AT2_MC_TQM_V3 which details all the skills, knowledge and requirements to be demonstrated in this task.
Appendix A - Time phased spreadsheet 1
Appendix B Simplified budget
Using spreadsheet software (e.g. Excel) to produce a Phase Chart - current Planned Value (PV), Actual Cost (AC), and Earned Value (EV) of the project and a Phase Chart - Schedule Performance Index (SPI). Cost Performance Index (CPI) current state of the project.
Note: These documents are to be used for all environments (real or simulated)
This assessment task is to be completed based on your workplace or using the simulated workplace and associated documents provided in the Appendices at the end of this document.
For a simulated work environment, these documents include
Appendix C Scenario for simulated project
Appendix D Time phased spreadsheet 2
Appendix E Time phased spreadsheet 3
Tasks
You are required to use cost management strategies and techniques for a project of your choice.
The project may be one you have been involved with in your workplace, a project you have use in a previous unit or the simulated project in Appendix D of this document.
When choosing the project to use, consider the timeframes you have been provided to complete this assessment. The project must be at conclusion within this assessment submission time.
For this task, you are required to:
Identify and estimate project components by creating a list of tasks and resource costs for a project
Develop a time phased project budget to attribute costs for the project
Write an email seeking assistance from the project team
Review the project budget and manage project variances
Manage and monitor project budget including:
Preparing schedule progress and cumulative costs to monitor income and expenditure
Reviewing project costs progressively over 3 phases to monitor costs
Creating charts to show current PV, AC, and EV over the 3 phases of the project
Creating charts to show current state of the project for SPI.CPI
Collating the information developed during the project and prepare a report to present to your manager.
Submission requirements
Upon completion of this assessment, you are required to submit:
A written report on the progress and outcomes of the cost management project
A completed Simplified budget
An email (PDF or document) communication to the project team
A completed Time phase budget that includes entries for:
Phase 1 either by hand or using cost management software
Phase 2 either by hand or using cost management software
Phase 3 either by hand or using cost management software
A created phase 2 chart - current PV, AC, and EV of the project either by hand or using cost management software
A created phase 2 chart - SPI.CPI current state of the project either by hand or using cost management software
A created phase 3 chart - current PV, AC, and EV of the project either by hand or using cost management software
A created phase 3 chart - SPI.CPI current state of the project either by hand or using cost management software
Observation of your report discussion
Part 1: Identify and estimate project componentsPreparing and planning cost management is an important role in any project. It provides a helpful structure to guide the project manager, stakeholders, and teams through each of the project phases.
It is also important to consider project timeframes when managing costs for each phase of the project. For the purpose of this task, we have applied a one (1) week per project phase approach.
Create a list of all of the tasks and resource costs required for the project, including:
project objectives
duration
deliverables
a minimum of 12 resource costs
budget
Describe how you will update cost estimates and budget according to income and expenditure
Explain how you can communicate the project and/or budget to stakeholders and management.
Note: You will include this information in your report in Part 6 Reporting cost management outcomes.
Part 2: Develop a time phased project budget
Setting realistic timelines to complete different project phases is essential for effective project management. A key component of this is cost management that accurately reflects the resources to achieve the work required within the allocated timeframe for each phase. This process not only helps to organise the project and its costs, but it also holds everyone accountable for completing the assigned tasks and keep fund spending within budget.
Create a time phased spreadsheet for your costs for a three (3) week project.
Attribute costs to the day of purchase, rather than cost accounting and bank statement-based recording.
Ensure that you include planned, actual and EV columns and have based estimates on you project requirements.
Prepare a simplified outline of the budget. Use the tables in Appendix A (you may create these tables in an excel spreadsheet if you prefer). Make sure you complete the Hours, Cost and Income columns.
It is important that you save the document using the correct naming convention: BSBPMG423 Assessment Task 2 - Part 2 - Your name.
Part 3: Communication
Effective communication within a team helps to build rapport and a common purpose among the team members. This allows the project team to reach the team and individual goals of the project.
Write an email to a member of the project team (or supplier) to inform them of the project and to request their assistance. In your email, you must identify the amount of work required, the expected timeframes for the completion of the project work and the type of assistance you require from them.
It is important that you save the email as a document using the correct naming convention: BSBPMG423 Assessment Task 2 - Part 3 - Your name.
Part 4: Manage project variances
Variance management in a project is used to assess the price, quantity, labour and overhead costs.
Analysis of any identified variances can then assist with improving the overall cost of the project.
Analyse and describe three (3) tasks or activities in your budget where variances may arise and discuss potential cost management strategies and processes that should be used to rectify these variances.
Note: You will need to include this information in the report for Task 6 Reporting cost management outcomes
Part 5: Manage and monitor project budget
Managing, monitoring, and controlling the project budget ensures that any changes that occur in the project are included in the budget calculations. The information is to be communicated effectively to relevant personnel and stakeholders and allows actions to be taken to correct any issues that these changes may cause in the project costs or timelines.
Prepare a schedule progress template.
Use the table or spreadsheet you populated in Part 2 (the Appendix A table or your excel spreadsheet)
Populate the planned cumulative costs (PV), percentage completion (Comp%) to monitor income and expenditure for the project.
Note: remember that PV and AC are cumulative; estimations of time have been broken up across each phase.
It is important that you save the document using the correct naming convention: BSBPMG423 Assessment Task 2 - Part 5.1 - Your name).
At the end of week.1. (Phase.1.) of the Project, review your figures.
Populate the budget table from Part 5.1 by converting the percentage of budget used and the percentage of total labour schedule used to actual amounts to determine current Comp%, AC and EV figures.
Identify two (2) variances in the project budget to date, and the contingency actions that can be taken to manage these variances.
Note: Ensure you include this information in your report in Task 6
Complete the columns to define SV, CV, SPI, and CPI values.
It is important that you save the document using the correct naming convention:
BSBPMG423 Assessment Task 2 - Part 5 Phase 1 - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 1 chart b - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 1 chart c - Your name.
At the end of week.2. (Phase.2.) of the project, review the figures.
Populate the budget table from Part 5.2 by converting the percentage of budget used and the percentage of total labour schedule used to actual amounts. Ensure that you make calculations for all columns including SPI, and CPI.
Update the table you saved for Phase 1 and save in a file for Phase 2 so that your files show the progression.
Create a chart to demonstrate the current PV, AC, and EV of the project and save.
Create a SPI.CPI chart to demonstrate the current state of the project and save.
Consider the project objectives and how they remain achievable, and why. Note: You will document the objectives in the report for Part 6.
In this case, it is important that you save the document and name the file for each Phase of the project or save the chart as a jpeg file.
Save the document using the correct naming convention:
BSBPMG423 Assessment Task 2 - Part 5 Phase 2 - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 2 chart b - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 2 chart c - Your name.
Note: Ensure you include Task 5.4d in your report in Task 6.
At the end of the project (Phase 3), review the figures.
Populate the budget table from Part 5.3 by converting the percentage of budget used and the percentage of total labour schedule used to actual amounts. Ensure that you make calculations for all columns including SPI, and CPI.
update the table saved for Phase 2 and save in a file for Phase 3 so that your files show the progression.
Create a SPI.CPI chart to demonstrate the current state of the project. (Note: if you remove the first row of data, the chart will look much more reasonable)
Create a chart to demonstrate the final PV, AC, and EV of the project.
(You may create these charts based on your table in an excel spreadsheet if you prefer)
BSBPMG423 Assessment Task 2 - Part 5 Phase 3 - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 3 chart b - Your name
BSBPMG423 Assessment Task 2 - Part 5 Phase 3 chart c - Your name.
Review the project and identify at least two (2) work tasks or budget items that exceed budget and include this information in your report in Task 6.
Part 6: Reporting cost management outcomes
Reporting the outcome of a project is key to informing reviews and evaluation. Information, key lessons learned, and trends from reporting the outcomes of a project are also used for program design continuous improvement. Reporting allows management to understand what has been achieved and the areas to learn from for future projects.
For this task, you will prepare a report, set up a meeting with the Project Manager to discuss the report, and seek feedback on the projects cost management plan for future project planning. You may nominate a colleague, classmate, friend or family member to play the role of the Project Manager. Your assessor will need to observe evidence of this meeting this can be done either face to face, online, or via submitted video recording.
Note: This person may be a manager, Project manager, peer, friend, a tradie, your neighbour, etc)
Prepare a report, describing the project and the project outcomes for your manager.
Attach all the task spreadsheets, charts and recording, and reference them during your report. These should be:
Completed Appendix A and B Time phased spreadsheet and Simplified budget
Phase 2 Chart - current PV, AC, and EV of the project
Phase 2 Chart - SPI.CPI current state
Phase 3 Chart - current PV, AC, and EV of the project
Phase 3 Chart - SPI.CPI current state
Ensure that you include:
A brief introduction
The list of all the tasks and resource costs created in Task 1.1
Description from Task 1.2 of how you will update cost estimates and budget according to income and expenditure and how you can communicate the project and/or budget to them
Description from Task 4 of the three (3) tasks or activities where variances could occur and the cost management strategies and processes required to rectify these
The two (2) variances in the project budget at Phase 1, and the contingency actions that can be taken to manage these variances
The explanation of how the project objectives remained achievable at Phase 2, and why
Review of the project and the identified work tasks or budget items that exceeded budget
Discussion on the differences between EV and other parameters in the charts
The considered shape of the final CPI.SPI chart. What the chart indicates about cost management and scheduling of work activities?
The feedback provided on improvements to the cost management of the project - this can be done after the review with your manager (Task 6.2)
A brief Conclusion.
Save your report using the correct naming convention: BSBPMG423 Assessment Task 2 - Part 6- Report - Your name
Organise a meeting with your project manager to review and discuss your report, and:
Verbally explain the project and report
Specifically:
details of your cost estimates.
Ask for their ideas and feedback on improving cost management of the project
Include the feedback in your report.
Use clear language to convey and discuss the information with your manager
Use a range of formal and informal mathematical language to explain information.
Your assessor must observe you conducting this meeting. If you are providing recorded video evidence of this, you must record a video of your conversation and save the recording as a link or MP4 file and submit it with your report. Use the same naming convention as previous documents:
BSBPMG423 Assessment Task 2 - Part 6 - Review - Your name.
Appendix A
Time phased spreadsheet
Phase Activity Cost PV Hours Comp% AC EV CV SV CPI SPI
Appendix B - Simplified budget
Week Hours Cost Income
Week.1. Week.2. Week.3.
Appendix C: Project Scenario for Simulated Environment
Workplace scenario
Management for your workplace have been employing new staff recently to assist with a new contract, although with the extra staff there is a need to provide them with more space during breaks. An outdoor area sounds like a great option as it would provide staff with the opportunity to get some sun, fresh air and relax in a great space during their breaks.
So, your manager has decided to undertake some renovations. They have set aside $10,000 and hopes to have another $200 in contingency if needed. The project entails knocking down a back wall, putting in glass sliding doors and an open deck and purchasing outdoor furniture, and has assigned a three (3) week project duration.
You have been asked to support the builder. To do this you are required to complete the tasks and report to your manager on the project.
Part 2: For physical materials, base your estimates on a requirement of 4 x 5 metres.
Part 3: Write an email to the maintenance team at your workplace (real or simulated), to inform them of the project and to request their assistance.
Part 5.2: At the end of week.1. (Phase.1.) of the renovation, you review your figures and find that 25% of your budget has been spent and 20% of your total labour has been used.
Part 5.3: At the end of week.2. (Phase.2.) of the renovation, you review the figures and find that 65% of the project budget has been spent and 70% of the total labour has been used.
Part 5.4: At the end of the renovation (Phase.3.), you review the figures and find that 88% of the project budget has been spent and 110% of the total labour schedule has been used
Part 6.1: Attach all the task spreadsheets, charts and recording, and reference them during your report. These should be:
Appendix C Time phased spreadsheet
Appendix D as:
Phase.1. spreadsheet
Phase.2. spreadsheet
Phase.3. spreadsheet
Appendix D - Time phased spreadsheet - Scenario Specific
Phase Activity Income Cost PV Hours Comp% AC EV CV SV CPI SPI
Income 10000 Week.1. Blueprints 200 4
Demolition of wall 1500 10
Week.2. Wall panels 2000 13
Sliding doors 1000 16
Labour 1500 20
Glue and nails 50 22
Week.3. Paint 250 24
Decking timber 2000 28
Labour 1500 33
Buy outdoor furniture 600 34
TOTAL 10,600
Appendix E - Time phased spreadsheet 3 - Scenario Specific
Phase Activity Cost PV Hours Comp% AC EV CV SV CPI SPI
Week.1. Blueprints 200 4
Demolition of wall 1500 10
Week.2. Wall panels 2000 13
Sliding doors 1000 16
Labour 1500 20
Glue and nails 50 22
Week.3. Paint 250 24
Decking timber 2000 28
Labour 1500 33
Buy outdoor furniture 600 34
TOTAL 10,600
