BSB51415 Diploma of Project Management

BSBPMG514 Manage Project Cost

Distance Learning Activity Week: 3

Read the excerpt on PMBOK cost management and answer the questions below. This Distance Learning Activity is due at the end of week 3
(Upload on Sunday by 11.55pm via Distance Learning - Submission Point via Moodle).
Read the article from the link below and answer the following
http://www.cio.com/article/2406862/project-management/project-management--4-ways-to-manage-your-budget.html

1. Why do you need to continually forecast the budget?

By continually forecasting the budget you are preventing the budget from getting out of your control. If you keep reviewing the
budget of your project you are on the right way to keep the project on track.

BSBPMG514 Distance Learning Week 3 Version: v17.0 Page 1 of 4

Developed by: Nortwest Pty Ltd Approved by: AM Issued: May 2017 Review: May 2018
 BSB51415 Diploma of Project Management

BSBPMG514 Manage Project Cost

Distance Learning Activity Week: 3

2. What changes could happen on a large project that causes you to regularly forecast resource usage? 
Regularly forecast resource usage is important because by doing that you ensure that you are utilizing the resources you have on
the best fully way, and that you have the right resources ready for you to use whenever you want, for the rest of the project.

3. If you were building a new railway who are the main stakeholders and why do you need to keep the team informed?
The stakeholders for my new railway project are:
- Shareholders (the owners);

BSBPMG514 Distance Learning Week 3 Version: v17.0 Page 2 of 4

Developed by: Nortwest Pty Ltd Approved by: AM Issued: May 2017 Review: May 2018
 BSB51415 Diploma of Project Management

BSBPMG514 Manage Project Cost

Distance Learning Activity Week: 3

- Employees;
- Customers (passenger train operating companies and freight operators, for example);
- Suppliers (track renewal companies)
- The railway regulator ((who acts on behalf of Government and people to ensure that the rail track is operating in a proper and
efficient way).
It is important to keep the team informed because projects are often complicated with lots of details, requirements, and decisions.
By keeping your team informed, you will always have an empowered team that takes ownership of the project.

4. What does manage scope meticulously refer to?

By managing scope you are avoiding unplanned works finding its way in your project, consequently saving time with unnecessary

BSBPMG514 Distance Learning Week 3 Version: v17.0 Page 3 of 4

Developed by: Nortwest Pty Ltd Approved by: AM Issued: May 2017 Review: May 2018
 BSB51415 Diploma of Project Management

BSBPMG514 Manage Project Cost

Distance Learning Activity Week: 3

worked hours. It is necessary to create change orders for work that is not covered by the initial requirements of the project; it
allows you additional funding for the project to cover the cost of extra work, and keep the project to its new budget.

BSBPMG514 Distance Learning Week 3 Version: v17.0 Page 4 of 4

Developed by: Nortwest Pty Ltd Approved by: AM Issued: May 2017 Review: May 2018