Project Planning and Budgeting

two parts of this assessment

Part A(500words) and Part B(1500 words)

case study is provided and I am attaching the instructions file.

Apart from this there is document i’m attaching, you need to give a reply to the information provided in that doc in 250 words

Successful completion of this assessment will result in achievement of the following subject learning outcomes:

1. Evaluate and apply a range of project scope, cost and time management planning techniques and practices to address the needs of complex project briefs, including global, paying particular attention to issues impacting project outcomes.

2. Present and justify budgetary and planning outcomes to a globally diverse range of stakeholders who represent competing interests in order to obtain agreement and commitment to action.

3. Apply quality management planning tools and techniques to achieve expected project outcomes.

Context: Project Cost Management includes the processes of planning, estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within the approved budget.

Project Cost Management planning begins with the process of developing cost estimates. In this process, a project manager is tasked with considering all types of costs likely to be incurred in the different phases of a project. In addition, the project manager will consider the risks likely to affect costs and any variations these risks may cause. This helps the project manager to make more reliable and usable cost estimates and ensure that any project budget variation due to unforeseen circumstances is mitigated as much as possible. Once the cost-estimation process has been fully carried out for each project activity, the project manager then combines the costs to determine the project budget. Finally, the project manager will consider the steps he or she will take throughout the project to ensure that the actual expenditure is kept within the budget specified.

Project Quality Management (PQM) includes the processes and activities of the performing organisation that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which is was undertaken. PQM uses policies and procedures to implement, within the project’s context, the organisation’s quality management system and, as appropriate, it supports continuous process improvement activities as undertaken on behalf of the performing organisation. PQM works to ensure that the project requirements, including the product requirements, are met and validated.

Project Quality Management planning is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with relevant quality requirements. The key benefit of this process is that it provides guidance and direction on how quality will be managed and validated throughout the project.

PART A & B:

Part A (500 words)

For Part A, student will construct an initial discussion in approximately 500 words to respond to

the following questions.

Part A: Module Discussion Activity

Defining project quality and its association to project cost management

How do you define quality in a project? Describe tools/techniques you think are a necessity for planning a project’s quality management and how to implement them. Explain how the project cost can be affected by poor quality and give some examples from the given case study.

Output: Part A – provide an initial discussion of 500 words.

Part B (1500 words)

Part B: Cost and Quality Management Plans

You will use the given case study to complete this part. You will begin developing the cost management planning components of your Cost Management Plan. For this plan, you are responsible for developing the project cost estimate and a project budget baseline. In addition to your cost estimates and budget, include a 750 words to describe the processes, and tools and techniques you are using in your cost management plan, as well as justification of your budgetary plan. You can use the templates found in this module’s Learning Resources or a format of your own.

You will develop the quality management planning components of your Quality Management Plan. Refer to the learning resources and the template provided for guidance. The written portion of your quality management plan should consist of 750 words. You can use the templates found in this module’s Learning Resources or a format of your own.

Output: Complete and submit your Cost and Quality Management Plans assessment.

Learning Resources:

Aaltonen, K., & Kujala, J. (2010). A project lifecycle perspective on stakeholder influence strategies in global projects. Scandinavian Journal of Management, 26(4), 381–397. AIMS (2015). What is Project Cost Management? Tools, Techniques and Processes for PMP & PMBOK | AIMS Lecture. Retrieved from

https://www.youtube.com/watch?v=PflAkMayixM

Ainamo, A., Artto, K., Levitt, R. E., Orr, R. J., Scott, W. R., & Tainio, R. (2010). Global projects: Strategic perspectives. Scandinavian Journal of Management, 26(4), 343–351.

http://torrens.eblib.com.ezp.tua.edu.au/patron/FullRecord.aspx?p=1215813

 Chapter 5: Developing the Project Budget and Communicating the Plan

 Chapter 6: (up to ‘Analyzing Risks Using Qualitative Techniques’)

Pensar, S. (2010, August 17). Five challenges in global projects. Retrieved from

https://www.itforbusiness.org/article/five-challenges-in-global-projects/

Project Management Institute. (2017). A guide to the project management body of knowledge (PMBOK Guide®) (6th ed.). Newtown Square, Pennsylvania: Project Management Institute.

http://ezp.tua.edu.au/login?url=http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,url,uid&db=nlebk&AN=565869&site=eds-live&scope=site

Section 7.1: Plan Cost Management

Section 7.2: Estimate Costs

Section 7.3: Determine Budget

Section 8.1: Plan Quality Management Rodrigues, I., & Sbragia, R. (2013). The cultural challenges of managing global project teams: A study of Brazilian multinationals. Journal of Technology Management and Innovation, 8. Retrieved from

http://www.jotmi.org/index.php/GT/article/view/1237

Sahi, R. (2009). Managing Projects Across the Global Enterprise. Retrieved from

http://www.pmi.org/learning/managing-projects-global-six-challenges-6823

http://tua.worldcat.org/oclc/826712195

Document: Cost Estimating Worksheet Template

Document: Cost Management Plan Template

Document: Quality Management Plan Template

http://torrens.eblib.com.ezp.tua.edu.au/patron/FullRecord.aspx?p=1575628

Chapter 5, section ‘Estimating Cost’

250 words give a reply to this:

Quality is defined as conformance to adequately developed requirements (Ledbetter, W. B., Lemer, A. C. and National Research Council (U.S.), 1991). According to (Project management Institute ,2013), quality is the degree to which a set of inherent characteristics fulfil requirements. Both definitions stated ‘requirements’ either to conform or to fulfil. In the Total Quality Management, this quality ‘requirement’ mentioned in both definitions, referred to meeting the customer’s need or requirements in order to achieve the customer satisfaction through continuous quality improvement of product and services (Van Vliet, V., 2009). In order to achieve the quality required in a project, there are several tools and techniques that can be utilised for planning a project’s quality management. These tools and techniques such as Paretto diagrams, Cause-and-effect diagrams, Checksheets, Control charts, Histograms, Flowcharts and Scatter diagrams. In Paretto diagram, statistical data is plotted in chart, and the probability distribution is calculated to identify the cause of problems and frequencies of cause (Project management Institute ,2013). It is useful to observe the total performance improvement of a project whenever the cause is identified and monitored. In Cause-and-effect diagrams, the problem statement and its root causes are depicted in a fishbone diagram. While the problem statement is placed at the head of the fishbone, each root cause of the problem statement is identified by asking ‘why’ until the reasonable possibilities on each fishbone is exhausted (Project management Institute ,2013). In the symposium project, for example, whenever the project team encounter delays in preparing and organising the workshop venues, the fishbone diagram can be utilised in order to identify the cause of problem in the delays. In Flowcharts, a project process can be mapped out through displaying the sequence of steps and branching out possibilities or likelihood of new usable inputs or outputs (Project management Institute, 2013). Flowcharts can be utilised in the symposium project to estimate the cost for the conformance and nonconformance work required to be done in order to meet the financial target output.

Poor quality of work in project management could lead to the need to redo all the work that has been done previously in order to meet the customer requirement in project. This later will cause additional resources such as materials, supplies and manpower as the project team needs to reschedule the project plan. This also means that additional time is required in order to redo all the work to achieve the quality that is required in the first place.

In the given case study (Torrens University Australia, 2020), one of the event objectives is to deliver a high quality and value-added program which would be useful and last for years. The project team must identify and define what are the criteria of the required quality in the program and to find a way to measure the quality performance in order to achieve the quality that is required.

PROJ6002– Project Planning and Budgeting

Trimester 3/2020

National Symposium Project

Planning and implementing a national symposium for a society that will draw about 1000

attendees is a major project. As the event is not for profit, the registration fee is $1,250

per attendee for a 3-day symposium with free access to all arranged workshops. The tasks

involved in hosting such an event are considerable and involve selecting a program

committee, choosing a theme, contacting exhibitors, making local arrangements, planning

the program, and on and on. Gold Coast is selected as host city/chapter for the 2020

Annual December Symposium. The objectives for the event are three: (1) to deliver a

high-quality, value added program that would be useful and last for years to come, (2) to

offer a social and guest program that would reflect well on the host city, and (3) to meet

strict financial criteria. The first task after selecting the city and hotel facilities is to put

together the project team and chairperson. This includes managers in charge of each of

the tracks, the social program, the local arrangements, and all the other details.

The project team needs to organize this event using a functional approach. The Gold Coast

officers have most of the primary responsibilities, with members from five other business

partners assisting in other duties. Next is the development of the work breakdown

structure and the Gantt chart of activity schedules. As shown in Table 1, scheduling all the

work for a major event such as this is an overwhelming effort. For the 2020 Symposium,

the technical program offered 22 workshops composed of 70 technical papers, special

panel discussions, and case studies.

The technical tracks include engineering and construction, pharmaceuticals, utilities,

software, automotive, R&D, defence, education, and manufacturing. The workshops

include sessions on preparing for professional certifications, learning about Taguchi

concepts of statistical quality control, and future practices. All of these also require

careful scheduling. The vendor program includes exhibits by dozens of vendors and a

large number of showcase sessions for in-depth demonstrations of their wares. The social

program includes a golf tournament, numerous social activities to meet with colleagues,

tours of Pittsburgh’s attractions, and a wide variety of entertainment opportunities. All
in all, a symposium is as difficult a project as many firms face in their competitive markets.

Your tasks:

This case study provides you with an opportunity of drawing on your acquired project

planning, scheduling, budgeting and quality management skills and materials covered in

this course. Overall, you are responsible for developing a project scope statement

document, a project schedule, a cost management plan and a quality management plan

for the case study.

Specific tasks:

A group of maximum 2 students is required to perform the following tasks in addition to
the descriptions in assessment briefs.

PROJ6002 – Project Planning and Budgeting
Trimester 3/2020

Assessment 1-Part B

1-1) Scope management planning

 Describe the entire scope of the work including project background, a list of
specific project goals, deliverables, constraints and assumptions, and milestones.

 Create Work Breakdown Structure (at least three levels) for the project.

1-2) Project scheduling

 Construct an original Gantt chart for the project using project activities given in
Table 1.

 Conduct a critical path analysis and carefully apply the 3-point estimate technique
on identified critical activities to develop an estimated project schedule. It is
assumed that the critical activities will remain the same in a risk-free
environment. On the other hand, without an appropriate risk management, the
durations of critical activities creep by 40%

 Perform a final schedule analysis using the results obtained from project
scheduling conducted in the previous stages.

Table 1 – The Symposium Project Activities

ID Description Duration Predecessor
A Symposium Project Management

AA Recruit project team 26 days –
AB Establish organisational procedures 40 days AA(ss+1)
AC Establish CAO support levels and budget 40 days AA(ss+1)
AD Develop symposium goals and objectives 36 days AC(ss+6)
AE Issue reports to VP-Tech and Board of Directors 30 days AA(ss+1)

B Technical Program
BA Develop symposium theme 20 days AD(ss)
BB Recruit technical program team 28 days BA(ss+6)
BC Strategize tracks and special interest groups 23 days BB(ss+6)
BD Develop selection process procedures 12 days BC(ss+6)
BE Interface with Education Committee on workshops 20 days BD(ss)
BF Plan and issue call for papers/panel discussion 17 days BE(ss)
BG Recruit invited papers/panel discussions 11 days BF(ff)
BH Recruit moderators 10 days BG(ff)
BI Select printer 7 days BD(fs-1)
BJ Plan and issue abstract books and proceedings 4 days BI(ff)

BK Develop and issue master schedule for presentations 10 days BJ(ff)
BL Organise awards for Speakers’ Breakfasts 4 days BK(ff)

BM Identify audio/visual requirements 5 days BL(ss)
BN Develop and issue post-symposium technical report 7 days FA(ss)

Table 1 – Continued

PROJ6002 – Project Planning and Budgeting
Trimester 3/2020

ID Description Duration Predecessor
C Finance

CA Develop cash flow estimates/projections 38 days AB(ss+8)
CB Develop procedures of financial operation 13 days CA(ss+12)
CC Initiate code of accounts 3 days CB(ss+2)
CD Initiate separate banking account 5 days CC
CE Develop independent auditing procedure 5 days CD(ss+5)
CF Develop and issue standard reports 13 days CE(ss+1)
CG Interact with CAO on account reconciliation 9 days CF(ss+2)
CH Develop and issue post-symposium financial report 7 days CG

D Corporate Sponsorship
DA Establish participation philosophy 22 days BC(ss)
DB Target prime corporations 22 days DA(ss)
DC Solicit participation 9 days DB(fs-4)
DE Recognition 13 days DC(ss)

E Facilities Vendor/CAO Support
EA Contract with host and backup hotels 6 days AB(ss+4)
EB Organise workshop venues 29 days BC(ss)
EC Identify and schedule details with Executive

Director and Events Manager
24 days DB(ss)

F Social Guest Program
FA Establish objectives 17 days EA(fs+2)
FB Identify available activities 26 days FA(ss)
FC Analyse cost-benefit 13 days FA(fs-1)
FD Identify recommendations 13 days FC(ss)
FE Complete contracts 11 days FD(ss+4)

G Speakers
GA Identify candidates and related benefits and costs 29 days CA(ss+1)
GB Make recommendations and obtain approval 10 days GA(fs-9)
GC Complete contracts 11 days GB(ss+2)
GD Maintain periodic contact 9 days GC(ss+6)
GE Host speakers 3 days GC

H Publicity/Promotion
HA Theme establishment and approval 20 days BA(ss)
HB Logo development and approval 10 days HA(ff)
HC Advertising – public and trade media releases 31 days HB(ss+2)
HD Video production 13 days HC(ss+6)
HE Promotional materials – Identification and approval 19 days HD(ss)
HF Regional newsletter articles 13 days HE(fs-7)

F Symposium
FA Host Symposium 3 days GE(ss)
FB Assemble and issue post-symposium report 6 days FA(ss),BN,CH

Assessment 2-Part B

2-1) Cost management planning

 Apply a diverse set of cost estimating tools to justify the cost of activities

 Develop and aggregate the cost of resources needed to complete each activity and
determine the detailed budget of the project. Your cost estimate must incorporate

PROJ6002 – Project Planning and Budgeting
Trimester 3/2020

at least two appropriate resources given in Table 3 for each group of the given
activities. Both cost estimate and a budget baseline must be produced in alignment
with the estimated project schedule.

 Develop and clearly demonstrate the resource loading and cost management
planning components in your Cost Management Plan.

 The cost management plan must include Earn Value Analysis (EVA) as a
compulsory cost control tool to be utilised along with other cost control tools in
this project. The application of EVA must be clearly demonstrated.

Table 2 – Project Budget

ID Description Duration Budget
Allocation (%)

A Symposium Project Management 5
AA Recruit project team 26 days
AB Establish organisational procedures 40 days
AC Establish CAO support levels and budget 40 days
AD Develop symposium goals and objectives 36 days
AE Issue reports to VP-Tech and Board of Directors 30 days

B Technical Program 15
BA Develop symposium theme 20 days
BB Recruit technical program team 28 days
BC Strategize tracks and special interest groups 23 days
BD Develop selection process procedures 12 days
BE Interface with Education Committee on workshops 20 days
BF Plan and issue call for papers/panel discussion 17 days
BG Recruit invited papers/panel discussions 11 days
BH Recruit moderators 10 days
BI Select printer 7 days
BJ Plan and issue abstract books and proceedings 4 days

BK Develop and issue master schedule for presentations 10 days
BL Organise awards for Speakers’ Breakfasts 4 days

BM Identify audio/visual requirements 5 days
BN Develop and issue post-symposium technical report 7 days

C Finance 10
CA Develop cash flow estimates/projections 38 days
CB Develop procedures of financial operation 13 days
CC Initiate code of accounts 3 days
CD Initiate separate banking account 5 days
CE Develop independent auditing procedure 5 days
CF Develop and issue standard reports 13 days
CG Interact with CAO on account reconciliation 9 days
CH Develop and issue post-symposium financial report 7 days

D Corporate Sponsorship 15
DA Establish participation philosophy 22 days
DB Target prime corporations 22 days
DC Solicit participation 9 days
DE Recognition 13 days

PROJ6002 – Project Planning and Budgeting
Trimester 3/2020

Table 2 – Continued

ID Description Duration Budget
Allocation (%)

E Facilities Vendor/CAO Support 30
EA Contract with host and backup hotels 6 days
EB Organise workshop venues 29 days
EC Identify and schedule details with Executive

Director and Events Manager
24 days

F Social Guest Program 5
FA Establish objectives 17 days
FB Identify available activities 26 days
FC Analyse cost-benefit 13 days
FD Identify recommendations 13 days
FE Complete contracts 11 days

G Speakers 5
GA Identify candidates and related benefits and costs 29 days
GB Make recommendations and obtain approval 10 days
GC Complete contracts 11 days
GD Maintain periodic contact 9 days
GE Host speakers 3 days

H Publicity/Promotion 10
HA Theme establishment and approval 20 days
HB Logo development and approval 10 days
HC Advertising – public and trade media releases 31 days
HD Video production 13 days
HE Promotional materials – Identification and approval 19 days
HF Regional newsletter articles 13 days

F Symposium 5
FA Host Symposium 3 days
FB Assemble and issue post-symposium report 6 days

Table 3 – The available human resources for the project

Name Resource Type Title
Hours

Rate ($)

Carol Hoskins Project Management Project Manager 65

Bob Thomas Technical Electronic Engineer 75

Sheila Egan Technical Assistant Engineer 55

Randy Hall Facility
Facility and Assets

Manager
55

Stu Berg Facility
Assets Management

Officer
45

Susan Green
Accounting and

Finance
Senior Finance Officer 50

Marty Pittman Marketing Events Manager 60

John Reid Marketing Advertising Agent 45

Sally Adams Human Resources Recruitment Agent 45

PROJ6002 – Project Planning and Budgeting
Trimester 3/2020

2-2) Quality management planning

 Develop the quality management planning components of your Quality
Management Plan.

 Apply a quality management framework to ensure the project performance is
consistent with the quality management plan.

Deliverables:

Two management reports (one for Assessment1- Part B and one for Assessment 2- Part
B) that are reflective of the key tasks as provided above including a thorough explanation
of key results and a comprehensive interpretation of findings.

Sub-tasks:

You are required to participate in various classroom activities in relation to the case
study, which will be provided by your learning facilitator.

Lanny Abele Contract
Legal and Contract

Manager
65

Kristin Johnson Procurement Purchasing Agent 45