Family Name:

MARTINEZ GONZALEZ
Given Name:
INGRID SOLANYI
Student ID: Course:
S40052138 DIPLOMA OF PROJECT MANAGEMENT
Subject: Trainer’s name:
Greg Armstrong
Project Cost
Declaration: I certify that this assignment is entirely my own work. I have provided full referencing
to the work of others. The material in this paper has not been submitted before.

IMPORTANT – READ THIS FIRST

PLAGIARISM: You must compose your answers in your own words. Simply pasting text from
the Internet OR the APC workbook may result in a failing grade. It is better to write your
own thoughts in your own words – even if your English is not perfect – rather than copy
word-for-word the thoughts of someone else.

SUBMITTING IDENTICAL ANSWERS: You may discuss your assessments with other students,
but submitting identical answers to other students may result in a failing grade. Your
answers must be yours alone.

TUTORIALS: Tutorials are run every week to help you answer the assessments.
The schedule for tutorials will be announced during the first week of term. You are urged to
attend the tutorial that pertains to your online subject.

<<Please remember to write your name and SID on the first page of this assignment, save your
own copy of this file with the filename <Name_StudentID_SubjectName_AsstNumber> and
upload the assessment once completed>>

ASSESSMENT 2 – BSBPMG514
 Manage Project Cost

1. Determine the resources you will need for a project of your choice. You will need to
establish what is required to complete task, as well as the quantities of resources.
Importantly, you must take budgets into account, and prioritise resources based on
resource limitations.
2. Prepare a full budget and cost-management plan for the project from the question one.
Include all direct and indirect cost in the plan, and account for these in the budget.
3. Decide on appropriate key performance indicators and establish how they are going to be
measured. How would you monitor all costs to make sure you are staying within budget?
How would you make adjustment if you felt progress is not being made, or expenditure is
too high?
4. Describe how you would record all areas of expenditure according to your organisation’s
protocols. Create a sample financial report that is laid out clearly and is easily
understandable.

PROJECT DESCRIPTION

In order to support the government of Colombia in its fight against human trafficking, it is
necessary to implement strategies that help prevent people from become a victim of this crime.
To do so we are going to implement a preventive and informative campaign, with the aim to
inform vulnerable communities and potential victims about this issue and prevent them from
being trafficked.
This project will consist of 50 workshops teaching human trafficking prevention consisting of
teenagers between 12 to 18 years old from public schools located in Bogota.

TASK TASK DESCRIPTION COST

CODE
1 STAFF 33,500.00
1.1 ADMINISTRATIVE STAFF 17,500.00
1.2 TECHNICAL STAFF 16,000.00
2 ADMINISTRATIVE AND OPERATIVE 9,000.00
EXPENSES
2.1 OFFICE AND COMMUNICATION EXPENSES 9,000.00
3 WORKSHOPS 31,000.00
3.1 LOGISTICS 27,500.00
3.2 FOOD AND BEVERAGES FOR WORKSHOPS 3,500.00
4 EQUIPMENT AND MATERIALS 5,500.00
4.1 WEB PAGE AND COMMUNICATIONS 2,000.00
4.2 DIDACTIC MATERIAL FOR WORKSHOPS 3,500.00
  TOTAL 79,000.00

COST MANAGEMENT PLAN

Responsible: Project Manager
Term: 2 Months since the 01 of April to 31 of May of 2017
Reports: Weekly
1
The Project Manager will be responsible for managing and reporting on the project’s cost
throughout the duration of the project. The Project Sponsor has the authority to make changes to
the project to bring it back within budget.
Cost for this project will be managed at the second level of the Work Breakdown Structure (WBS).
Earned Value calculations for the CA’s will measure and manage the financial performance of the project.
Indicators:
The following metrics will be used to measure the project performance:

METRICS FORMULA
Schedule Variance (SV) Earned Value (EV) – Planned Value
(PV)
Cost Variance (CV) Earned Value (EV) – Actual Cost (AC)
Schedule Performance Index (SPI) Earned Value (EV) / Planned Value (PV)
Cost Performance Index (CPI) Earned Value (EV) /Actual Cost (AC)

PERFORMANCE MEASURE AND CONTROL

Performance Measure Cautionary Alert stage

Schedule Variance (SV) >=0 On schedule or Exceeding < 0 Behind the schedule
schedule

Cost Variance (CV) >=0 (Underrun) < 0 (Overrun)

Schedule Performance Index (SPI) Between 0.9 and 0.8 or Between Less Than 0.8 or Greater than 1.2
1.1 and 1.2

Cost Performance Index (CPI) Between 0.9 and 0.8 or Between Less Than 0.8 or Greater than 1.2
1.1 and 1.2

The budget should be monitoring weekly to identify any significant variances in the project, it is
important to analyse each key performance indicator and give alerts to the project sponsor if it is
necessary.

BUDGET ADJUSTMENTS
The Project Manager must report any significant variance in the costs, it is also their responsibility
to take corrective actions. Any changes must be consulted and approved by the project sponsor.
2
The request should include:
 The cost category affected
 A propose change in budgetary allocations
 The technical justifications

Any changes in the budget should be documented, these ones should include a description of and
justification for the expense; these should be reviewed and approved by Project Manager and the
Project Sponsor.

1
Taken from: http://www.projectmanagementdocs.com/project-planning-templates/cost-management-plan.html
2
Taken from: http://www.research.uci.edu/sponsored-projects/contracts-grants-admin/post-award-admin/rebudgeting.html
 FINANCIAL REPORT
Project: Counter trafficking prevention workshops
Date: xx of April of 2017
Total Budget: $79,000

WEEK 1
TASK
CODE
TASK DESCRIPTION COST Under/Ove
Planned Actual
r
1 STAFF 33,500.00 4,187.50 4,387.50 -200.00
1.1 ADMINISTRATIVE STAFF 17,500.00 2,187.50 2,137.50 50.00
1.2 TECHNICAL STAFF 16,000.00 2,000.00 2,250.00 -250.00
ADMINISTRATIVE AND OPERATIVE
2
EXPENSES
9,000.00 1,125.00 1,225.00 -100.00
OFFICE AND COMMUNICATION
2.1
EXPENSES
9,000.00 1,125.00 1,225.00 -100.00
3 WORKSHOPS 31,000.00 3,875.00 3,875.00 0.00
3.1 LOGISTICS 27,500.00 3,437.50 3,437.50 0.00
FOOD AND BEVERAGES FOR
3.2
WORKSHOPS
3,500.00 437.50 437.50 0.00
4 EQUIPMENT AND MATERIALS 5,500.00 687.50 687.50 0.00
4.1 WEB PAGE AND COMMUNICATIONS 2,000.00 250.00 250.00 0.00
DIDACTIC MATERIAL FOR
4.2
WORKSHOPS
3,500.00 437.50 437.50 0.00
10,175.0
  TOTAL 79,000.00 9,875.00 -300.00
0

% Complete of the project 12.5% Caution

Earned Value (EV) 9,875.00 Alert

Performance Measure
Schedule Variance (SV) 0.00
Cost Variance (CV) -300.00
Schedule Performance Index (SPI) 1.000
Cost Performance Index (CPI) 0.971
References

COLLEGE, A. P. (n.d.). Project Cost - SESSION 3. Retrieved from

https://classroom.google.com/c/MTIyMTIzMDczN1pa
COLLEGE, A. P. (n.d.). Project Cost - SESSION 4. Retrieved from
https://classroom.google.com/c/MTIyMTIzMDczN1pa
COLLEGE, A. P. (n.d.). Project Cost - SESSION 5. Retrieved from
https://classroom.google.com/c/MTIyMTIzMDczN1pa
free-management-ebooks. (n.d.). Retrieved from www.free-management-ebooks.com
management-mentors. (n.d.). Retrieved from management-mentors: http://www.management-
mentors.com/resources/coaching-mentoring-differences
Tools, M. (n.d.). https://www.mindtools.com. Retrieved from
https://www.mindtools.com/pages/article/newPPM_01.htm