The Total Cost Of Completing The Project

Project A: This project is new to your company. You do not feel confident in estimating the project costs using internal resources. There are other companies that have done this type of work. Yet you still want the most accurate estimates possible.

592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592

(TCO B) Good project cost estimations are critical to a successful project. With that in mind, compare and contrast parametric estimating and vendor bid analysis as cost estimation techniques on a project. Please provide an example of each.

The earned value analysis has led to see the project will control the actual budget, which is $18,000. The actual cost at the period 4 totaled to be $7,050, and total of earned value at period 4 is $7,750. The estimate at completion for typical is $22,550. These variances show that this project will exceed the original budget of $18,000, so we are still exceeding the project’s original budgets. The SPI is less than a value of 1, which means that the project will also over schedule and activity plans. The requests immediate actions from the third-party company.

The purpose of this analysis is to compare and contrast two projects in terms of Project Management, Quantitative Analysis and Economics while illustrating the

Eichenberger, J. (1998). Project management, part III budgets for projects. AAOHN Journal, 46(5), 268-70. Retrieved from http://search.proquest.com/docview/101346

The Measurement Construct utilized in the Riordan Project is based on the adherence to estimate. Accurate project estimation is crucial in keeping project costs down and stakeholders happy. The Key Performance Indicator project managers want to minimize is expressed by the formula [(E-A)/E], where E = estimated Value to complete project and A = actual Value used to complete project. Project managers can substitute any value into the equation, such as hours or cost, to determine adherence to estimate. This will allow the project management team to spot trends early on during the project and then make the necessary adjustments.

In current scenario mainly the following types of models are in use to select project which will fit to the organization strategy

Our estimates are carefully prepared and based upon the information you have provided us. These estimates are maximum quotes based upon DUCE’s information outlined in our proposal. However, creative or developmental projects often lead to altered objectives. If new information or instructions are received during the course of a project that will require more time or expenses than we have budgeted, we will inform you immediately and prepare a revised estimate in writing. At that time, we will require a signed approval from you in order to continue the project.

We used PV (planned Value), AC (actual cost), and EV (earned value) to calculate SPI (schedule performance index), SV (schedule variance), CPI (cost performance index), and CV (cost variance). Among these indicators, SPI and SV show whether a project is behind schedule or not, and CPI and CV indicate whether a project is under budget. Therefore, the statuses of the schedule and cost of technical infrastructure, software customization, and combined projects can be easily and clearly checked, respectively.

‘’Cost performance on project s often poor, what are the possible causes of this and how can it be improved?’’

1. How should PDVSA finance the development of the Orinoco Basin? Can you define project finance? Is Petrozuata a project? What are the costs and benefits of using project finance instead of the traditional (debt) finance – as Mr. Bustillos said, PDVSA could have finance the debt internally (p.7 of the case)?

The team leaders' projections show that the cost of starting the race under normal circumstances would be $3,152,000 (see table 2), however, normal conditions also dictate that the project will require 50 weeks to finish. As with any solid plan, the team leaders have also calculated crash times and costs as backup options in case the project experiences delays, or in this circumstance an imposed deadline; the start of the race 45 weeks from now. Analyzing crash times and costs we see that if each activity were crashed the project could be finished in 42 weeks, however, the budget would skyrocket to $4.952 million (see table 5). Therefore, the team will need to analyze the project network and its critical path to determine which individual activities can be crashed while maintaining the integrity of the budget.

In field of project management, there are a plethora of mechanisms under perpetual reevaluation. One specific segmentation of project management under such scrutiny pertains to cost duration, which is the time and monetary costs of completing individual tasks within the project’s critical path (IBM Knowledge Center, 2016). The process of monitoring and evaluating the time and financial impacts of each task is referred to as cost duration analysis (IBM Knowledge Center, 2016). A chief concern of cost duration analysis is identifying tasks within the project’s critical path which can reduce project duration (PMI, 2013). A common approach to reducing a project’s duration is task “crashing” (PMI, p.181). According to The Project Management Institute (2013) crashing refers to the process of methodical determining the financial value of increasing a critical path task’s resources in order to decrease project duration (p.181).

* Not emphasizing the importance of realistic project cost estimates from the outset. IT project cost estimates are low to start with or based on unclear project requirements.