# Cost Estimate

Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance.

Recall that your schedule and cost goals are to complete the project in 6 months for under \$200,000. Use the Cost Estimate template and Cost Baseline template to assist with this assignment.

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Tasks Prepare and upload a 1-page cost model for this project using spreadsheet software. Use the following work breakdown structure      (WBS), and document your assumptions in preparing the cost model. Assume alabor rate of \$100 per hour for the project manager and \$60 per hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs.

The total estimate should be \$200,000. Project management Requirements definition Website design  a. Registration for recreational programs b. Registration for classes and programs c. Tracking system    d. Incentive system Website development  a. Registration for recreational programs b. Registration for classes and programs  c. Tracking system   d. Incentive system Testing Training, rollout, and support Using the cost model you created in the first task, prepare a cost baseline by allocating the costs by WBS for each month of the project. Assume that you have completed 3 months of the project.

The BAC was \$200,000 for this 6-month project. You can also make the following assumptions: PV=\$120,000 EV=\$100,000 AC=\$90,000 a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? b. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? c. Use the SPI to estimate how long it will take to finish this project. After completing your charts, write a 150-word follow-up in which you complete the following: Explain how the project is doing based on the CPI and SPI.

Is it ahead of schedule or behind? Is it under budget or over? Describe the strategies or steps that should be taken for human resource management to avoid additional costs. Describe the strategies or steps that should be taken      for resource activity management to avoid additional costs.

Recommend 2 tools to support these strategies and  explain why these tools would be beneficial. APA format!  For more information on Cost Estimate read this:  https://en.wikipedia.org/wiki/Cost_estimate

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