1860 Module 7 Project Cost and Resources.pdf

Human resource plans are not related to an org HR - but humans as resources A company may charge you a percentage for overhead (indirect costs) Fixed costs - eg., office rent regardless of ppl that come in Opportunity costs Capital costs - One time expenditures on the construction, enhancement,...

Human resource plans are not related to an org HR - but humans as resources A company may charge you a percentage for overhead (indirect costs) Fixed costs - eg., office rent regardless of ppl that come in Opportunity costs Capital costs - One time expenditures on the construction, enhancement, or acquisition of assets that will benefit the organization, go on the balance sheet and produce revenues in the future Explained on following pages E.g., in flipping houses/construction Involving the team to come up with the estimates for the WBS similar to last week’s content, but its cost estimate works best for bottom up - to make it accurate with ppl inexperienced Parkinson’s Law - the idea that your work will take longer to fill the time allotted for its completion this is for waterfall/traditional - its rigid 1. Gather various input such as work package estimates, assumptions, Gantt chart, and project calendars 2. Summarize the estimates including the control accounts 3. Add in Risk contingency and overheads for indirect costs 4. Check the total budget to ensure the constraints are met 5. Create the cost Baseline as an s-curve 1a. - How you plan to develop / manage the budget 1.c - includes scope statement, wbs, and WBS dictionary 2a. - background and supporting details for the cost estimates 2b. - collected in one spot for adding into the budget 2c. - includes the plans start and finish dates for the project activities, Milestones Etc 2d. - determine which resources are assigned to the project and when 2e. - the document in which the results of risk analysis and risk response planning are recorded 3 - contracts and/or other agreement information and cost related to products and services After we break down the WBS into tasks/activities Funding limit reconciliation compares the funds available and each time period to the plan spending in the time period Fund spending is also scheduled - and sponsors want to stay on budget schedule 1. Management reserves - an amount of the project budget held outside of the cost Baseline for management control purposes, that is reserved for unforeseen work that is within the scope of the project 2. Profit - the amount added to the project budget for profit when preparing a price for a customer 3. Funding limit reconciliation - the process of comparing the planned expenditure of project funds against any limits on the commitment of funds for the project to identify any variances between the funding limits and the Planned expenditures 4. Overhead costs - costs that are allocated to the project also known as indirect costs 5. Contingency Reserves - money allocated in the cost Baseline for known risk with active response strategies 6. Control accounts - a management control point where scope, budget, actual cost, and schedule our integrated and compared to earned value for performance measure 1. Activity cost estimates = calculate them on the work package level 2. Contingency reserves to deal with project risks a. activity cost estimates + contingency reserves = work package cost estimates 3. Overhead = cost allocated by Finance to the project a. work package costs estimate + overheads = cost Baseline 4. Management reserves = funds held by the sponsor to be used for Approved change requests and future situations that are unpredictable a. cost Baseline + management reserves = project budget 5. Project budget + profit = quote to the buyer Did i over spend, under spend or on budget breakdown of the workpackage costs Breakdown the total into weeks, then total the week costs 1. Prioritize the product backlog using stock ranking, Kano model, Moscow method, or cost of delay 2. Determine the relative estimate by comparing the items in the backlog to each other 3. Select the items from the backlog to be completed in a Sprint based on value and the capacity of the team So say you know a sprint is ‘small’ and will take 3 days, you can guess that a ‘large’ sprint may take 5+ Fibonacci sequence - Each successive number in the sequence is obtained by adding the two previous numbers in a sequence (1, 2, 3, 5, 8, 13, 21, 34) Planning Poker - Uses numbered playing cards to estimate the items; works well for maximum of 10 items in a small team (example 5 to 8 people) and mainly follows the Fibonacci sequence Dot voting - Each person gets several small stickers and vote for individual items. more dots is a bigger indicator of a bigger size T-shirt size - Used for large items with less precision Bucket system - Good for estimating a large number of items with a large group of participants; creates several buckets in the sequence of planning poker So you would skip after #4 and add #6 to the sprint to max out the team, and then the next sprint would have 13+13+8 Wage/day x # of days working ~ # of days per sprint A. The people required for the project team based on skills and capabilities B. The physical locations required for the projects such as office space, meeting rooms, laboratories, storage locations, Etc C. Equipment needed to complete the project, such as vehicles, testing equipment, computers, communication devices, Etc D. Consumable items required to make the product or service, such as paper, wood, cement Etc Figure out the budget based on # of ppl and how much you expect to pay them Procurement = outside the organization Acquiring = inside the org Note the different naming conventions (logs vs registers) Utilize EI when problems arise Try to get to the root cause as soon as possible And try not to use an bias