Details of Assessment

Term and Year 4, 2019 Time allowed 8 Weeks

Assessment No 1 Assessment Weighting 100%
Assessment Type Written Responses, Case Studies and Portfolio of Evidence
Due Date Week 8 Room 204/Lab #107
Details of Subject
Qualification BSB51415 Diploma of Project Management
Subject Name Project Cost Management
Details of Unit(s) of competency

Unit Code (s) and

BSBPMG514 Manage Project Cost
Names

Details of Student
Student Name
College AAI (Perth) Student ID

Student Declaration: I declare that the work submitted is my

own and has not been copied or plagiarised from any person Student’s
or source. I acknowledge that I understand the requirements Signature: __Camilo Estupinan
to complete the assessment tasks. I am also aware of my
right to appeal. The feedback session schedule and Date: _09____/_11_/__2019_
reassessment procedure were explained to me.

Details of Assessor
Assessor’s Name LIZ BENSON

Assessment Outcome
Assessment
Competent Not Yet Competent Marks /100
Result
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:

Assessor Declaration: I declare that I have conducted

a fair, valid, reliable and flexible assessment with this
student. Assessor’s
Signature: ___________________
Student attended the feedback session.
Student did not attend the feedback session. Date: _____/_____/________

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Purpose of the Assessment

The purpose of this assessment is to assess the student in the Competent Not yet
following learning outcomes: (C) Competent
(NYC)
1.1 Determine resource requirements for individual tasks identified in the
work breakdown structure, with input from stakeholders and guidance
from others
1.2 Estimate project costs to enable project budget to be prepared within
agreed tolerances
1.3 Develop a project budget

1.4 Develop a cost-management plan, within delegated authority, to

ensure clarity of understanding and ongoing management of project
finances
2.1 Implement agreed financial-management processes and procedures
to monitor actual expenditure against budget
2.2 Select and use cost-analysis methods and tools to identify cost
variations and evaluate alternative actions
2.3 Implement and monitor agreed actions to maintain financial
objectives
2.4 Provide accurate and timely financial reports

3.1 Conduct appropriate activities to signify financial completion

3.2 Review project outcomes using available records to determine

effectiveness of project cost management
3.3 Review cost-management issues and document improvements

Assessment/evidence gathering conditions

Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A
student can only achieve competence when all assessment components listed under “Purpose of the
assessment” section are recorded as competent. Your trainer will give you feedback after the completion
of each assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-
assessment.

Resources required for this Assessment

Weekly eLearning notes relevant to the tasks/questions should be read prior to undertaking the
assessment.
Instructions for Students
Please read the following instructions carefully
 This assessment must be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be
improved. You will be provided with feedback on your work within two weeks of the assessment due
date. All other feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your
gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills
to be deemed competent for this unit of competency.
 If you are not sure about any aspects of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment for more information (Student Handbook).

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 ASSESSMENT TASKS
There are two tasks to complete for this unit of competence:

Task 1 – Written responses

This activity has been designed to assess your knowledge and understanding of managing project cost
within projects.

This task consists of questionnaires which reflect the knowledge of project management (PMBOK). The
responses should include the following:

 Must be relevant to your project as stated in BSBPMG511 Manage Project Scope, unless
otherwise stated. Responses should link to the theoretical aspects of project cost management
followed by relevant experience / exposure of your nominated project you have recently or are
currently working on to progress both your studies and your projects simultaneously. Your
response to the questionnaires must relate to the same project topic chosen for BSBPMG511
Manage Project Scope subject unit.
 However, if you have started with this subject topic as an initial attempt of this course, you must
negotiate and discuss with your Assessor to consider a project that you recently or are currently
working on or a project that you have worked in the past.

 If workplace project exposure does not apply to you, you must negotiate with your assessor to use
a scenario/case study examples that you will find on e-learning. However, case study examples
are a suitable substitute where workplace examples cannot be provided. Case studies are
available on e-learning. Theory answers without reference to your experience will not be assessed
as satisfactory
 Demonstrate that you can or have applied what you have learnt to your project, regardless of
whether you have undertaken all the performance requirements in your workplace

Task 2 – Portfolio of Evidence

The portfolio of evidence comprises the assessment of the application of your project cost knowledge. You
will need to demonstrate your cost management skills applied to a project which is based on the project
you have chosen for BSBPMG511 Manage Project Scope subject unit. It should state relevant experience
/ exposure of your nominated project you recently or are currently working on to progress both your studies
and your projects simultaneously.

If you have started with this subject topic as an initial attempt of completing this course, you must negotiate
and discuss with your Assessor to consider a project that you recently or are currently working on or a
project that you have worked in the past.

If workplace project exposure does not apply to you, you must negotiate with your assessor to use a
scenario/case study examples that you will find on e-learning. However, case study examples are a
suitable substitute where workplace examples cannot be provided. Case studies are available on e-
learning.

To such a degree you must negotiate with your assessor to use a scenario/case study examples that you
will find on e-learning.

Your nominated project must be agreed between you and your Assessor so that its methodology, tools
and techniques accommodate to the performance requirements of each Unit of Competency prior to start
of work on the unit. Your project must comprise:
a comprehensive, detailed and integrated project management plan
 a formal communications plan

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  a devoted and project-based budget
 formal and planned involvement with a wide range of stakeholders
 a documented risk, issues and change-management methodology
 a quality plan with assurance and control processes
 a project team-based environment.

Evidence of the following is important:

 demonstration of cost management for several complex projects
 knowledge of cost management plans, tools, issues and likely challenges

To achieve competency, you are required to demonstrate knowledge, skills and experience to:
Performance Evidence
 work closely with others to determine resources against budgetary frameworks
 prepare a budget and cost-management plan for a project
 monitor costs across a project's life cycle including solving cost variations and analysing possible
alternatives
 record expenditure, create accurate financial reports and review cost-management processes.

Knowledge Evidence
 explain appropriate budgeting processes, tools and techniques
 describe methods and tools for costing and cost analysis
 explain strategies for managing costs and their application in different situations
 outline processes for reviewing costs against outcomes
 summarise key organisational policies and procedures applicable to this role.

STRUCTURE AND MARKING CRITERIA FOR ASSESSMENT TASKS:

I. TASK 1 – Written Responses (Total 15 marks for TASK 1)

Q1: Qualifying Cost and benefits (5 marks)
Q2: Cost of non-conformance on quality requirements (5 marks)
Q3 Tools and techniques use to manage quality (5 marks)
II. TASK 2 – Portfolio of Evidence (Total 85 marks for TASK 2)
A. Estimating Project Costs (10 marks)
B. Development of Cost Management Plan (10 marks)
C. Monitor and Control Project Costs (15 marks Total)
1. Two Cost Analysis Methods for cost variations (7 marks)
2. Budget Performance Report (3 marks)
3. Evidence and reason of re-planning to revive original budget (5 marks)
D. Cost Management Processes ( 50 marks Total)
Q1. Financial completion activity (5 marks)
Q2. Performance review of cost management processes and procedures (5 marks)
Q3. Project performance related to cost (5 marks)
Q4. Management of variances (5 marks)
Q5. Changes of cost implications and recommendations (10 marks)
Q6. Project risk issues associated to project budget (5 marks)

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 Q7. Management of project cost risk issues (5 marks)
Q8. Evaluation of effective cost and budget controls (5 marks)
Q9. Project Sponsor’s satisfaction level (5 marks)

TABLE OF CONTENT
Content Pages Marks Marks
Achieved
TASK 1 – Written Responses (Total 15 marks for TASK 1)

Q1: Qualifying Cost and benefits 5

Q2: Cost of non-conformance on quality requirements 5

Q3: Tools and techniques use to manage quality 5

TASK 2 – Portfolio of Evidence (Total 85 marks for TASK 2)

A. Estimating Project Costs (10 marks)

Estimating Project Costs
10

B. Development of Cost Management Plan (10 marks)

Development of Cost Management Plan
10

C. Monitor and Control Project Costs (15 marks Total)

1. Two Cost Analysis Methods for cost variations 7

2. Budget Performance Report 3

3. Evidence and reason of re-planning to revive original 5
budget
D. Cost Management Processes (50 marks Total)

Q1. Financial completion activity 5

Q2. Performance review of cost management processes and
5
procedures
Q3. Project performance related to cost 5

Q4. Management of variances 5

Q5. Changes of cost implications and recommendations 10

Q6. Project risk issues associated to project budget 5

Q7. Management of project cost risk issues 5

Q8. Evaluation of effective cost and budget controls 5

Q9. Project Sponsor’s satisfaction level 5

Total 100
The learner is required to update and adjust the page numbers and topics based on the amount of their content
and the responses made to each task.

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 Task 1 – Written Responses
(BSBPMG514 – 1.1,1.2,1.3,1.4, 2.1,2.2,2.3,2.4,3.1,3.2,3.2,3.3)
Answer the following questions in the appropriate spaces below:
All responses must:
This activity has been designed to assess your knowledge and understanding of managing project cost
within projects.

This task consists of questionnaires which reflect the knowledge of project management (PMBOK). The
responses should include the following:

 Must be relevant to your project as stated in BSBPMG511 Manage Project Scope, unless
otherwise stated. Responses should link to the theoretical aspects of project quality
management followed by relevant experience / exposure of your nominated project you recently
or are currently working on to progress both your studies and your projects simultaneously.
Your response to the questionnaires must relate to the same project topic chosen for
BSBPMG511 Manage Project Scope subject unit.
 However, if you have started with this subject topic as an initial attempt of this course, you must
negotiate and discuss with your Assessor to consider a project that you recently or are currently
working on or a project that you have worked in the past.

 If workplace project exposure does not apply to you, you must negotiate with your assessor to
use a scenario/case study examples that you will find on e-learning. However, case study
examples are a suitable substitute where workplace examples cannot be provided. Case
studies are available on e-learning. Theory answers without reference to your experience will
not be assessed as satisfactory
 Demonstrate that you can or have applied what you have learnt to your project, regardless of
whether you have undertaken all the performance requirements in your workplace.
You will need to complete the relevant templates from each knowledge area which are provided,
you may use templates from the text or from your workplace that provide evidence of your
competency.

<50% marks of the allocated marks for the questions and answers in Task 1, will be given for providing theoretical
aspect and remaining 50% marks for providing the relevancy on how the information fits in within your project
management functionalities. However, Assessor to assess if relevant theory and reflection of the student’s
nominated project has been provided by the student as per the requirement of the tasks. Non-relevant answers will
be considered not satisfactory >

15 Marks
Question 1: Which is usually the easier to quantify for a project – the costs or the benefits?
Describe why. (BSBPMG514 – 1.1, 1.3, 1,4, 2.1,2.2,2.3,2.4,3.1,3.2,3.3)
<1 mark for stating your response, 2 marks for explanation and 2 marks for detailed information with example
from your project. Total of 5 marks> 5 Marks
I will answer this question by touching the concept of quantifying which leads us to tangible and
intangible things, in this sense when it comes to talking about cost may we cannot determine with
accuracy the expenses that surround the project but we can identify the cost associated to the project.
On the other hand, the benefit could be classified into tangibles and intangibles, another important
aspect that we look at is that the benefit could be appreciated in the long term and the conditions can
vary too. for instance, if a company invests in software to automate a process and for some reason,
the software quickly becomes obsolete or other factors impact the productivity, the initials benefits
will disappear.

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 Question 2: Define how a project budget is produced, communicated, agreed to and authorized by
project stakeholders in your workplace. (BSBPMG514-1.1, 1.2, 1.3,2.1,2.3, 3.1,3.2, 3.3)
<1 mark for stating your response, 2 marks for detailed information and 2 marks for demonstrating relevancy
to your project. Total of 5 marks> 5 Marks

How a project budget is produced:

The steps of the project budget determing process are using the steps as bellow

 The Work breakdown structure WBS,

 Reviewing historical data and lessons learned
 Investigating Resource Information
 Following Project Policies
 Activity Cost Estimates
 Estimates Basis
 Scope Baseline
 Project Schedule
 Procurement Contracts
 Resource Calendars

https://mymanagementguide.com/guidelines/project-management/cost-
management/determining-project-budget/

How the project budget is agreed:

Project teams hold planning meetings to develop the risk management plan. Attendees at these
meetings may include the project manager, selected project team members and stakeholders,
anyone in the organization with a responsibility to manage the risk planning and execution activities,
and others, as needed. High-level plans for conducting the risk management activities are defined in
these meetings. Risk management cost elements and schedule activities should be developed for
inclusion in the project budget and schedule respectively. (a guide to the project management body
of knowledge, p316, 2013). The definition of the budget, a meeting or a couple of meetings are
developed in order to determine the budget, it is determined by the project management team in the
head of the project manager.

How the project budget is communicated:

The information is provided by verbal communication and reports that are susceptible to be changed
throughout the project and affected by the feedback of the stakeholders.

How is authorized the project budget

Once the project budget is defined it is compulsory a meeting where the stakeholders agree as to
the final revision before the expenses commence after the expenses commence new authorizations
and changes have to be discussed for the team.

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 Question 3: Describe the tools and techniques you have used to monitor and control project costs
across the life cycle of projects that you have nominated or within your workplace. Include cost
analysis methods and tools used to identify cost variances. (BSBPMG514-2.1,2.2,2.3,2.4)
<1 mark for stating the tools and techniques, 2 marks for detailed information, 1 mark for stating the cost analysis
methods for variances and 1 mark for detailed information with example from your project. Total of 5 marks>
5 Marks

Having accurate project estimates and a robust project budget is necessary to deliver within the
project budget. Both Estimating Costs and Determining Budget are project planning processes.
Without keeping an eye on the actual costs while the project is being implemented, the project will
most likely never be delivered on-budget. There are several techniques as stated in the PMBOK
used to monitor and control the cost of a project, each of which is discussed below:

1. Earned Value Management or Analysis

Earned Value Management (EVM) is a mathematical method by which you can measure the actual
performance of a project. You will use EVM to monitor your project in terms of schedule and cost.
For example, suppose your project is on track as per the schedule. Through EVM, you will be able
to understand whether the project is also on-budget. If it is not, you can take corrective action. EVM
principles can be extended to Forecasting, TCPI, and Variance Analysis. EVM is an input to project
performance reviews. Therefore, it is critical for you to understand EVM formulae so that you can use
them as inputs to other cost control techniques.

2. Forecasting

EVM provides formulae to forecast the future performance of a project. The forecast is based on the
current actual performance. As a project manager, having the ability to tell whether your project will
be delivered on-time and on-budget is critical. Let’s take an example to understand this.

Suppose you have completed 25 percent of your project. As per the schedule, you are on track.
However, after completing 50 percent of the project, you realize your project is delayed. By using
forecasting formulae you can determine the degree of delay. This will also enable you to investigate
the cause of delay and the corrective action, such as Crashing, required to get the project back on
track. In addition, to the schedule delay, you can use EVM Forecasting formulae to determine the
actual cost of the project on completion and take measures to rectify any anomaly before it is too
late.

3. To-Complete Performance Index (TCPI)

If the project is delayed or over-budget, you can use TCPI to determine the project performance
required to complete the project as budgeted or estimated. TCPI also leverages the EVM formulae.
.
4. Variance analysis

Variance analysis is the comparison of expected project performance to the actual cost performance.
This analysis helps you understand the causes of variance if any. Preventative and corrective actions
are determined based on the variance analysis.

5. Performance review

Performance reviews in projects are required to check the health of a project. This usually involves
Cost and Schedule as the main parameters to assess. However, other parameters, such as Scope,
Quality, and Team Morale may be used. Reviews may include the client, Product Owner, other
Project Managers or ScrumMasters.

https://www.brighthubpm.com/monitoring-projects/57317-tools-used-to-monitor-and-control-
costs-in-projects/

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 Task 2 – Portfolio of Evidence
(BSBPMG514 – 2.1,2.2,2.3, 3.1,3.2,3.3)

You must use the same project for all units in this course and must be relevant to your project as stated
in BSBPMG511 Manage Project Scope, unless your nominated project changes during the course or
cannot adapt to the performance requirements of any of the units of competency. If either or both
events occur during your course, you must contact your Assessor to find out what you need to do to
continue to satisfy the course performance requirements and achieve competency.

The project must be in an organisation, business or you are operating as a consultant.

Your nominated project must have:

 a comprehensive, detailed and integrated project management plan

 a formal communications plan
 a dedicated and project-based budget
 formal and planned engagement with a wide range of stakeholders
 a documented risk, issues and change-management methodology
 a quality plan with assurance and control processes
 a project team-based environment.

You will need to complete the relevant templates from each knowledge area which are provided, you
are to use he given templates from this assessment or from your workplace that provide evidence of
your competency. However, they must cover the required criteria of this task.
<50% marks of the allocated marks for the questions and answers in Task 2 (A – D) , will be given for providing
theoretical aspect and remaining 50% marks for providing the relevancy on how the information fits in within
your project management functionalities. However, Assessor to assess if relevant theory and reflection of the
student’s nominated project has been provided by the student as per the requirement of the tasks. Non-relevant
answers will be considered not satisfactory>

A. Estimating Project Costs 10 Marks

(BSBPMG514 1.1, 1.2)

You are required to develop a project spreadsheet of project costs estimates based on your nominated
project scope/work breakdown structure as stated in BSBPMG511 Manage Project Scope, and use the
given template provided below. You may use any appropriate workplace template or any software (MS
Excel) of your choice.

You will need to follow these steps:

 List all project activities

 Assign all required project resources to the appropriate activities including both variable and fixed
cost resources.
 Summarise costs by activity
 Summarise costs by resource
 Consider miscellaneous costs such as contingencies, administrative costs, communications etc
 Consult cost estimates from other similar projects
 Complete the cost estimate

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  Present you preliminary estimate to an expert colleague as a reality check

Explain how you would deliver this information to stakeholders. In particular, how you would get the
approval for your budget.

Please refer your nominated project WBS, to support in completing this task as stated in BSBPMG511
Manage Project Scope. Please ensure to provide the full completed tasks of your project as stated in
your WBS. List at least 10 (ten) tasks and its associated data.

You are to use the template given below or create your own. Must provide detailed information as stated
in your WBS, as per created in BSBPMG511 Manage Project Scope. If you are starting this subject unit
as an initial start of this course, you are to create a WBS of your nominated project or you may use the
WBS with this subject you recently or are currently working on or a project that you have worked in the
past.

<0.5 marks allocated for providing all 10 WBS Code data you provide (total of 0.5 mark for each 10 of them), 2
marks allocated for providing all associated description information (total of 2 marks for all 10 of them), 2 marks
allocated for providing all associated duration information (total of 1 mark for all 10 of them), ), 2 marks allocated
for providing all associated resources name and rate information (total of 2 marks for all 10 of them), ), 2 marks
allocated for providing other costs information (total of 2 marks for all 10 of them) and 0.5 marks allocated for
providing all associated total cost information (total of 2 marks for all 10 of them. This totals the Estimation project
cost task of 5 marks.>

Activity Resources required

WBS Description <2 Duration < Resource Resource name & Other Total costs
Code <0.5 mark> 1 mark> name & rate < rate <2 marks> costs by activity
marks> 2 marks> <2 <0.5 marks>
marks>

1.1 Research and 10 days 1 employee Research tools $2000

planning $20 per hour
2 computers at
Total: $1600 $400 per unit

1.2 Buying 1 day 1 employee Wordpress $510

software
8 hours $20 per hour Domain

Hosting

Photoshop

Online google
package tools

Total: $350

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1.3 Obtaining 1 day 1 employee 1 computer $360
quotations $20 per hour
8h $200

1.4 Prototype 12 days Web designer 1 computer $1546

design
4h/d $27 per hour $250

1.5 Flow chart 1 day IT Engineer $216

8h $27 per hour

1.6 Buying 1 day Community $280

marketing manager
tools 8h
$35 per hour

1.7 Website 15 days Web designer 1 computer $2350

development
4h/d $35 per hour $250

1.8 Positioning 90 days Marketing $7290

strategy expert
3h/d
$27 per hour

1.9 Developing 8 days Professional $864

Marketing designer
material 4h/d
$27 per hour

1.10 Launching the 5 days Business $810

product developer
6h/d
$27 per hour

B. Development of Cost Management Plan 10 Marks

(BSBPMG514 1.3, 1.4)

Develop a cost management plan to be used throughout the life cycle of your nominated project. This
plan must include suitable financial management roles, processes and procedures to monitor actual
expenditure against budget and control costs.

For the cost management plan for your project, you must include:
 Units of measure (1 mark)

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 Level of precision (1 mark)
 Level of accuracy (1 mark)
 Organisation cost management procedures to be followed including roles and responsibilities
(1 mark)
 Control thresholds (1 mark)
 Rules of performance measurement (1 mark)
 Reporting formats (1 mark)
 Process descriptions (these could include any two of the following and must be step by step
including who is involved and when as well as a description of how this will help you monitor
actual vs. budgeted expenditure). (2 mark)
o Approval processes
o Financial authorisations and delegated authority
o Communication and reporting processes
o Invoice procedures
 Organisational chart of account links (if applicable) (1 mark)

Cost Management Plan

1 Objectives
This document will describe how cost variances will be managed for this project.
2 Level of accuracy and precision

The project cost was designed according to the performance objectives defined at
the beginning of the project. The detailed project plan was developed with these
objectives already in mind, so it is expected that the total cost will remain stable.
3 Cost Variance Response Process
3.1 Following the Budget and Project Schedule previous made, the Project Manager is
responsible to ensure that all the activities are starting and ending as planned,
using the right effort and resources.

3.2 Minor Variances

Minor variances will be absorbed into project budget.
3.3 Major Variances
3.3.1 The Project Manager will be responsible to produce an Earned Value Analysis
(EVA) report 2 times a week, identifying any cost variance as soon as possible.
3.3.2 Any cost variance of greater than +/- 25% for any task will require development of
a cost variance analysis report to determine its cause.
3.3.3 The cost variance corrective actions need to be documented on the Cost Variance
Analysis Report. If it is relatively major, more detailed, it should be documented in
a separate corrective action report.

3.3.4 Major issues will require scope change or a request for extra funding to solve the
problem.
4 Cost Change Control Processes
4.1 For any change, it is necessary to fill out a Change Request Form and forward it to
the Project Manager.
4.2
Maybe some extra documentation or information will be required for the Project
Manager before going ahead with the idea and share it with the Director or
Stakeholder.
4.3

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 The Director or Stakeholder is the person who will decide if the request will be
approved or not, marking the document as "Approved", "Approved pending
additional documentation" or "Denied".
4.4
The Project Manager is the person responsible for coordinate gathering the
required documents, incorporate and adjust the project with the change and notify
the requestor if the request was denied.
5 Payment
5.1 To start the project, it is required receive 25% of the total cost in advanced.
5.2
The invoices will be generated in two moments. The first part of the payment will
be required at the beginning, before starting the Planning Phase. The second part
will be generated at the end of the project.
5.3
The 25%, which means around 1500 AUD, will be used to pay half of the cost for
the Venue, Catering, Band and Decoration. This amount will be paid at the same
day that the contracts are signed.
Another part of the payment for the services subcontracted will be paid at the day
5.4 of the event.

.
C. Monitor and Control Project Costs: 15 Marks
(BSBPMG514 2.1, 2.2, 2.3, 2.4,)

C1. Use any two cost-analysis methods and tools to demonstrate the cost variations that
occurred in your project. 7 Marks

You may choose to do this task using tables. Suggested templates are given below for your
understanding. You may incorporate your findings in the provided templates or create your own,
however provided information must meet the required performance evidence. Please demonstrate your
cost variations based on the need of your project using a table. If suing the tables, please provide at
least 5 (five) data of tasks and its relevant information within each template and explain what the result
refers to.

<0.5 marks allocated to use appropriate cost analysis tools, 2 marks to provide evidence in details of the cost
variances occurred within your project, 2.5 marks to provide evidence in details of the earned value method
occurred within your project, 1 mark for demonstrating the relevant calculations of the earned value method and 1
mark for reason, outcome and explanation. Total of 7 marks>

Cost Variance Method:

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 Variance Analyser Worksheet

Phase Duration Hours Cost Reason

Task Est Act Var Est Act Var Est Act Var

1.1 10 8 days +2 80 60 +20 $2000 $1600 F $400 It wasn’t

days days hrs hrs hrs necessary to
expend the whole
time searching
2
computer
s= $400

1.2 1 day 1 day 0 day 8 8 0 hr $510 $510 $0 No variance

hrs hrs

1.4 12 12 0 day 48 48 0 hr $1546 $1546 $0 No variance

days days hrs hrs
1
computer
= $250

1.7 15 15 0 day 140 140 0 hr $2350 $2350 $0 No variance

days days hrs hrs
1
computer
= $250

1.8 90 100 -10 270 300 -30 $7290 $8100 U Institutions were
days days days hrs hrs hrs $810 on holidays

1.9 8 days 5 days +3 32 12 +20 $864 $540 F $324 The designer was
days hrs hrs hrs very efficient

1.10 5 days 5 days 0 day 30h 30 0 hr $810 $810 $0 No variance

rs hrs

Earned Value Method:

To complete this table you are to choose any particular ending period within your project ( e.g. a project
that has duration of 60 days starting 1st Jan – 1st Mar, you may choose the ending period at 20 days ,
meaning, at the end of the 20th Day of the project duration – dated 20th Jan) to analyse the Earned
Value of for that period to determine whether your project is on schedule, or is on budget or how much
efficient is required for the remainder of the project to be om schedule and on budget.

Please ensure to demonstrate all listed and relevant calculations of at least 3 (three) tasks.

Formulas that maybe needed to support completing the given the Earned Value Method is stated:

 Planned Value (PV) = % completed work (planned) X BAC (Budget at Completion)

 Earned Value = % of completed work X BAC (Budget at Completion)
 Schedule Variance (SV) = EV – PV

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  Cost Variance (CV) = EV – AC
 Schedule Performance Index (SPI) = EV / PV
 Cost Performance Index (CPI) = EV / AC
 TCPI= (Remaining Work) / (Remaining Funds)
 TCPI= (BAC – EV) / (BAC – AC)
 Actual Cost (AC) is the amount of money that you have spent so far

% %
Task Duration Budget Complete Complete PV EV AC SV CV SPI CPI TCPI
Planned Actual
1.1 8 2000 100% 60% 2000 1200 800 -800 400 0.6 1.5 0.4
1.2 1 510 100% 100% 510 510 510 0 0 1 1 1
1.4 12 1546 100% 60% 1546 928 300 -618.4 627.6 0.6 3.09 0.19
1.7 15 2350 100% 40% 2350 940 500 -1410 440 0.4 1.88 0.21
1.8 90 7290 60% 30% 4374 2187 300 -2187 2130 0.5 8.1 0.06
1.9 8 864 50% 10% 432 86.4 40 -345.6 46.4 0.2 2.16 0.09

C2. Provide a detailed budget performance report showing variances against baseline budget.
3 Marks
<1 mark allocated to state the variances and 2 marks to explanation in a report format. You may deliver this in a
tabular form as well. Total of 3 marks>

< INSERT ANSWER HERE >

Project Cost Management Assessment, v2, Last Updated 25 May 2019 Page 15 of 20
C3. Present evidence of replanning to bring project back to original budget including the reason replanning is needed and the options available to
bring the project back on budget as well as the option selected.
5 Marks

You are required to provide your findings in the given template below. However, you may choose to do this in a report format as well, which must include the
criteria stated in the template to meet the required competency. Please study the given template below for your understanding.

Please demonstrate your cost variations based on the need of your project using the given table. You are required to provide at least 5 (five) data of tasks
and its associated information as stated in the template.

<You may choose to provide information in an essay format: 1 mark allocated to state the cost variations, 3 marks allocated to provide details of your action of tracking and
replanning and 1 mark to identify options selected. Total of 5 marks>

<If using the table, then marks will be allocated as follows:

You are required to document at least 5 (five) tasks and provide the associated data as required within the template. 0.5 mark allocated to each item for providing all 5 tasks and
its associated data of budget, actual, variance, reason, acceptance tolerance, acceptance status, replan task, corrective action and assumptions (0.5 mark for providing all 5
items in each column). This totals the replanning cost planning process of 5 mark>

< INSERT ANSWER HERE OR IN THE TABLE >

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 Replanning Template

Replanning Project Report

Task Budget Actual Variance Reason Acceptable Acceptable Replan Task Corrective Assumptions
<0.5 mark> <0.5 mark> <0.5 mark> <0.5 mark> <0.5 mark> tolerance Status <0.5 mark> (Y/N) <0.5 mark> Action <0.5 mark>
<0.5 mark> <0.5 mark>
1.1 2000 3000 1000 New 1500 N Acceptable NA
researchi variance
ng

1.2 510 1510 1000 New 1500 N Acceptable NA

software variance
needed

1.4 1546 3046 2000 Changing 3700 N Acceptable NA

platform variance

1.7 2350

1.8 3000

Project Cost Management Assessment, v2, Last Updated 25 May 2019 Page 17 of 20
D. Complete Cost Management Processes 50 Marks
(BSBPMG514 2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 3.3,)

<50% marks of the allocated marks for the questions and answers in Task D (Q1 - Q10), will be given for
providing theoretical aspect and remaining 50% marks for providing the relevancy on how the information fits
in within your project management functionalities. However, Assessor to assess if relevant theory and reflection
of the student’s nominated project has been provided by the student as per the requirement of the tasks. Non-
relevant answers will be considered not satisfactory>

Answer the following questions to demonstrate your understanding of reviewing project costs and
budget.

Question 1: Provide in detail a financial completion activity you would need to undertake at the end
of the project. (BSBPMG514-3.1)
<1 mark allocated to state your actions and 4 marks for explanation. Total of 5 marks> 5 Marks
1. Final Payments

If the supplier has met all the contractual obligations, including fixing problems and making a secure
website including optimization and marketing tools.

2. Procurement Contracts

The performance of suppliers and vendors is reviewed to determine if they should still be included in
the list of qualified suppliers or vendors. The choice of contract for each is reviewed to determine if
the decision to share risk was justified and if the choice of incentives worked.

3. Final report

The report contains all the information provided to the stakeholders in a short executive summary.
The report identifies practices and processes that could be improved or lessons that were learned
that could be useful on future projects.

4. Archiving of Document

It is compulsory to sign up the final documents that allows the company to operate in Australia
regarding rules and procedures that are required.

https://opentextbc.ca/projectmanagement/chapter/chapter-18-project-completion-project-
management/

Question 2: Review your project performance in terms of cost management. Would your cost
management processes and procedures be considered effective? Why/why not?
(BSBPMG514- 3.2, 3.3)
<2 mark allocated to state your response and 3 marks for an explanation. Total of 5 marks> 5
Marks

Yes. All the items were covered entirely from the beginning. Some external situations caused
additional problems which had to be sorted out, but nonetheless, the procedures were determined
and run on time.

Project Cost Management Assessment, v2, Last Updated 25 May 2019 Page 18 of 20
 Question 3: How did the project perform in relation to budget? (BSBPMG514- 3.2, 3.3)
<1 mark allocated to state how your project performed and 4 marks for explanation. Total of 5 marks>
5 Marks
There was an overrun due to inconveniences held throughout the project but in general, everything
was managed without exceeding the limits. The budget was carefully determined which meant total
control of the spendings and prior knowledge of every detail avoiding no expectations.

Question 4: Were there variances and how were they managed? (BSBPMG514- 2.2,2.3,2.4,3.2, 3.3)
<1 mark allocated to state your response and 4 marks for explaining management of variances. Total of 5
marks> 5 Marks

Yes. There were variances. They were sorted out by organizing meetings and discussing openly
together with the stakeholders. Every meeting was organized as soon as new relevant information
was known by the project management team and successfully finished in such a way that the new
budget was approved every time it was needed.

Question 5: Were there any changes to the project scope that had cost implications? How were
they managed? List at least 5 (five) cost issues you may have experienced on the project (in the
table below) including a recommendation for future projects. (BSBPMG514 – 2.2, 2.3,2.4,3.1, 3.2, 3.3) 10
Marks

<1 marks allocated to identify each cost management issues (5 marks in total of 5 cost management issues),
0.5 marks allocated to state recommendation( 2.5 marks in total of 5 state recommendation) 0.25 marks
allocated to state date ( 1.25 marks in total of dates provided), 0.25 marks allocated to providing Lesson Learnt
raised ( 1.25 marks in total of 5 lesson learnt. Total of 10 marks>
Date Description of Recommended Action for next Lesson Learnt
problem/opportunity time/project Raised By

08/03/2019 Many changes on the Organizing meetings to discuss Camilo

appearance the final draw of the website in
order to confirm the design
before it is implemented on the
website
14/03/2019 Method payments added The audience has to be defined Camilo
very well before the
implementation of the payment
methods
17/04/2019 Types of services were Elaborate the business plan Camilo
changed trying to cover all the items in
order to avoid forward changes.
15/05/2019 Designer resigned Always it is necessary to have Camilo
a plan to cover possible resigns
15/06/2019 Including new marketing tools In order to reach more people, Camilo
it was necessary to add new
marketing tools.

Project Cost Management Assessment, v2, Last Updated 25 May 2019 Page 19 of 20
 Question 6: How were the project risks handled and what implications did that have for cost and
budget management? (BSBPMG514- 2.1,2.2,2.3,2.4,3.1,3.2, 3.3)
<2 marks allocated to state ow risks were handles and 3 marks for explaining the implications. Total of 5
marks> 5 Marks

Installing libraries, plugins, frameworks, some components were not updated as often and made the
system susceptible to attack.

Installation of a component made the whole site at risk. This risk was particularly acute considering
WordPress as the platform utilized and using plugins to get custom functionality. Vetting components
appropriately and giving them correct access to the system was necessary.

Implementation of new componets updated and verified was needed representing a modification in
the budget and a delay in the website development.
.
https://www.superwebpros.com/blog/top-10-critical-security-risks-business-websites/

Question 7: How were those issues managed? (BSBPMG514- 3.2, 3.3)

<2 mark allocated to state your reason as stated in Task 2 D(Q6) above and 3 marks for the explanation. Total
of 5 marks> 5
Marks

They were checked out in a meeting with the stakeholders and the technical department team
releasing a new budget to buy new plugins and tools in order to warranty a secure website and avoid
hacker's infiltrations.

Question 8: If the project were to be run again, how might costs and budgets be established and
controlled differently? (BSBPMG514- 3.2, 3.3)
<2 mark allocated to state your response and 3 marks for explaining the action and control. Total of 5 marks>
5 Marks
Nex time the first step will be analyzing the possible incomes and the time that the incomes will
come in order to organize the project in phases and budgeting according to the phases and
warranty a better distribution of the budget and avoiding early expenses without any income and
the possibility of reacting against risk or contingency.

Question 9: Was the Project Sponsor satisfied with the financial reports provided during the
project? (BSBPMG514- 3.1,3.2, 3.3)
<1 mark allocated to state your response and 4 marks for clarification. Total of 5 marks> 5 Marks

Yes, the expectations were satisfied and the numbers showed a rapid revenue due to the nature of
the business. The financial reports showed the effectiveness of the business plan and the marketing
strategy implemented as well as the assertiveness when choosing the services provided on the
platform.

END OF ASSESSMENT TASK

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