: The Quantum Bank’s new mobile application

Student Name: Vu Ha Thanh

1.1 Project Scope

1.1.1 Project Name: The Quantum Bank’s new mobile application.

1.1.2 Project Description: The ultimate objective of this project is to create a new,
enhanced mobile application which is built on the original version. This new
application will include both the existing and new functions and features required
by the bank. This project addresses the business need of the Quantum Bank which is
expanding its presence beyond its current geographical area. Besides, it also brings
about revenue and improves the customer’s experience. The project was initiated on
7th November 2019 and estimated to be finished by 25 th November 2020 and its
estimated cost is approximately $150,000.

1.1.3 WBS Table:

WBS ID Deliverable Description of the Deliverable

1 The Quantum Bank’s mobile app This is the final output of the project.
1.1 Project management plan Overall management plan of the project.
1.2 User’s database Data base regarding customer’s
experience gathered from survey.
1.3 The Quantum Bank’s database This data includes the bank’s API which
contains the existing customer’s
information.
1.4 New interface This deliverable includes the designs of
new icons, text fonts, and the graphics of
the new application.
1.5 List of required resources This includes the human resources,
material, and equipment needed for this
project.
1.6 Mobile payment function This is the first new feature of the new
application.
1.7 Loans and credit card function The second new feature of the new app.
1.8 Account opening function The third new feature of the new app.
1.9 Investment portfolio The last new feature of the new app.
management function
1.10 The new app’s UI flow This is the automatic process that works
 within the new app.
1.11 Final performance test This process examines if all functions of
the new app works properly or need any
correction/adjustment.
1.12 Introduction campaign of the This is the campaign aiming at marketing,
new app promoting, and introducing the new
Quantum Bank’s mobile app.

1.2 Cost Management Plan

The objective of this Cost Management Plan is to identify the method which will be applied
to manage costs associated with Quantum Bank’s new mobile application project. This plan
defines a format and standards by which the costs are going to be estimated, measured,
reported, and controlled in order to successfully deliver the quality product for the
customer. There are several cost elements associated with this Quantum Bank’s mobile
application project which can be listed and mentioned in this document such as metrics,
cost variance consideration, and reporting procedures. This Cost Management Plan must be
reviewed and followed accurately in order to complete this project successfully. Some key
components that this Cost Management Plan will cover:

 Brief description of the cost management approach.

 Outline of the project cost, budget and other financial sources.
 How these stated costs will be determined and allocated.
 Identify people who will be responsible for managing costs and those who have the
authority to examine and approve the changes to the project and its costs.
 Identify the format and frequency of the reports.

The Cost Management Approach for the Quantum Bank’s new mobile application is
generally based on the comparison between the actual spending and the estimated budget
in terms of these elements:

 Costs associated with human resources.

 Infrastructure costs.
 Software testing services.
 Other external resources.

1.2.1 Cost Baseline Statement

The project budget consists of the total monetary resources required to execute the project
successfully, which includes internal resources, human resources, equipment, and
materials, etc. The budget baseline for Quantum Bank’s mobile application is $163,746 with
a contingency reserve of $16,000 (10% of the total cost).
1.3 Cost Planning

1.3.1 Cost Estimating

The Cost Management Plan for the Quantum Bank’s mobile application documents the
methods utilized to manage and control both internal and external cost elements.
Throughout the project life cycle, different metrics and variance evaluation will be applied
to track, update and re-estimate the project budget if there is any change occurs. The
component of the cost includes:

Internal

 Project management resources.

 Recruiting and hiring personnel.
 Additional hardware and other equipment.
 Training facilities.

External

 Marketing agency.

This Cost Management Plan serves as the guideline for planning, structuring, and
controlling project costs among which cost estimating and cost controls play as the most
critical evaluation and control processes. It is required that the actual cost and the cost
variances are reported to the project manager and project sponsor regularly following the
stated schedule. Changes to the cost that exert more than 5 percentages variance must be
updated and presented to the project sponsor and the Board of Directors. The Board of
Directors and the Project Sponsor are appointed to participate in the development process
of this Cost Management Plan to determine the cost baseline. The cost estimates will be
updated to, verified, and approved by the Project Sponsor.

This Cost Management Plan will utilize the ‘Bottom-up’ approach to develop a detailed cost
estimate of each cost element and then add them up to have a predicted total cost of the
project. The estimating process will be provided with the best-updated information and the
process as well as the results will be formally documented in case the project team needs to
make changes due to the availability of additional information. The project team chooses
the ‘Bottom-up’ approach due to its outstanding flexibility and resource optimization. The
project team can utilize the knowledge and insights of those staff that are working for the
company or the SMEs who have been engaged in the process on a daily basis. The
knowledge and experience they may provide help to create a comprehensive basis for
project decision making.

The Project Manager will be the one responsible for managing and reporting on the project
costs during the whole project life cycle. The Project Manager is also required to be
presented at the monthly project team meeting in order to review the cost’s performance
of the previous month. Any sign of cost deviation will be documented and presented to the
Project Sponsor by the Project Manager so that he/she can work with the Board of
Directors to identify the solution for budget shortages or overages. The Project Sponsor
processes the highest authority to make changes to the project to bring it back within the
approved budget.

1.3.2 Establishing the Cost Baseline

Deliverable Labor Costs Contingency Total Estimate

Reserve
Project authorization $7,800 $5,000 $12,800
Project management $14,886
Database of user’s experience $10,800 $10,800
Database of Quantum Bank’s API $3,360 $3,360
New interface $17,640 $17,640
List of needed resources $5,200 $5,200
Mobile payment function $19,200 $19,200
Loans and credit card function $19,200 $19,200
Account opening function $19,200 $19,200
Investment portfolio management function $19,200 $19,200
App’s UI flow $12,100 $12,100
Performance test $6,720 $10,000 $16,720
 Approval $4,400
Introduction/Marketing Campaign $4,760.00 $4,760.00
Total Project Costs $145,180 $163,746

1.4 Cost Control

The cost control process will basically follow the project change request process since the
approvals for project budget changes must also be approved by the Project Sponsor. The
amount of contingency reserve will be approximately 10% of the project total cost which is
$15,000. This request is based solely on the experience of the project team regarding their
historical data of previous projects. The contingency reserve will be used as a backup plan
for activities that are considered to have high-risk exposure. The Project Manager and
Project Sponsor will be the one who can officially authorize the use of the contingency
reserve. The cost change control process will generally follow these steps:

 Identify the change (typically comes from the cost variance analysis or cost reports)
 Complete and submit a Change Request Form to Project Manager.
 The change request is reviewed by the Project Manager and he/she may require
additional document before the official meeting with the Project Sponsor.
 Whether the request is accepted or denied, the Project Manager will document the
change request outcome. If the change affects the total cost, a new cost baseline will
be created to match with the required change.

1.4.1 Cost Tracking

The very first thing this Cost Management Plan wants to highlight is that the project team
must follow the stated schedule of cost reporting. The cost will be noted and documented
after every month so that the Project Manager can evaluate the performance of the budget
allocation. By making sure that the reports are submitted and reviewed monthly, the
necessary adjustment to the budget or resources is always one step ahead. Besides, the
project team should also collect the monthly financial figure from the finance department
to provide another source of data for prediction.

1.4.2 Cost Reporting and Metrics

The Project Manager will be required to build a total cost of ownership model for the
Quantum Bank’s mobile application project. besides, the project will also need reports
regarding the Earned Value Management (EVM) for measuring and controlling the project
costs. The EVM covers the project scope, cost, and schedule measures to facilitate the
project team assess and evaluate the project cost performance. Some of the ratios to project
that the project team and the Project Management may use to track the actual costs against
the baseline can be listed below:

 Project Management Cost / Total Project Cost

  Total Field Labor Cost / Total Project Cost

1.4.3 Cost Variances

Cost management measure will be reported monthly in the Quantum Bank project Status
Report so that any change can be tracked and evaluated to identify the causes and action
needed. Every cost variance which falls into the threshold (X) will be identified and
requires corrective actions. However, those activities which are in yellow condition will be
less urgent than those fall in the red condition. The table below provides the parameter the
project team will use to determine the level of urgency and the necessary of counter
actions.

Performance Measure Yellow Condition Red Condition

Schedule Performance 0.6<X<0.7 or 1<X<1.1 0.6>X or X>1.1
Cost Performance 0.6<X<0.7 or 1<X<1.1 0.6>X or X>1.1

1.4.4 Funding Schedule

Deliverable Work Periods – Phases
1 2 3 Total
Project Management 4962 4962 4962 14886
Project authorization 7800
Database of user’s 3600 3600 3600 10800
experience
Database of Quantum 1120 1120 1120 3360
Bank’s API
New interface 5880 5880 5880 17640
List of needed 1733 1733 1733 5200
resources
Mobile payment 6400 6400 6400 19200
function
Loans and credit card 6400 6400 6400 19200
function
Account opening 6400 6400 6400 19200
function
Investment portfolio 6400 6400 6400 19200
management function
App’s UI flow 4033 4033 4033 12100
Performance test 2240 2240 2240 6720
Approvals 1466 1466 1466 4400
Introduction/Marketing 1586 1586 1586 4760
Campaign
Total 54582 54582 54582 163746
***THE FOLLOWING SECTIONS ARE NOT REQUIRED AND ARE PROVIDED AS EXAMPLES ONLY***

1.5 Project Management Control Board (PMCB)

If the overall cost baseline is affected, the variance is documented and reported to the Project Manager
and the Project Management Control Board. The Project Manager and the PMCB review the rationale
and discuss the options and mitigations for dealing with the variance, and determines if a re-plan is
necessary.

Changes to the cost baseline typically would only occur as a result of a change to the scope of work or
the direction of the project.

1.5.1 Cost Re-Planning

If a re-plan is deemed necessary, the project submits the appropriate funding documents to address the
re-plan. The funding documents are included in the next budget cycle and are subject to the normal
review and approval processes.

1.5.2 Cost Re-Baselining

Once the re-plan is approved, the Project Manager works with the Financial Manager to re-baseline the
cost data and estimates based on the approved funding.

1.6 Cost Closeout

1.6.1 Annual Cost Summary

At the end of the fiscal year, the Project Manager summarizes the actual hours and costs expended
against the baseline for the fiscal year. The annual summary is archived for historical purposes.

1.6.2 Lessons Learned on Cost Management

Lessons learned related to costs and cost estimation are used in the development of the subsequent
fiscal year’s cost baseline.

At the end of the project, the historical information is forwarded to the organizational repository for use in
refining project estimation techniques.
Appendix A: Approval
The undersigned acknowledge they have reviewed the for and agree with its contents. Changes to this
will be coordinated with and approved by the undersigned or their designated representatives.

[List the individuals whose signatures are desired. Examples of such individuals are Business Steward,
Project Manager or Project Sponsor. Add additional lines for signature as necessary. Although signatures
are desired, they are not always required to move forward with the practices outlined within this
document.]

Signature: Date:
Print Name:
Title:
Role:

Signature: Date:
Print Name:
Title:
Role:

Signature: Date:
Print Name:
Title:
Role:
References
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6 Items to Include in Cost Management Plan - 100% Management of Cost!. (2019). Master of Project
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The Ultimate Guide to Cost Management | Smartsheet. (2020). Smartsheet. Retrieved 4 February 2020,
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