Part 2 Budget Estimating (30 points)

Using the same scenario from the previous unit on scheduling, create a time-phased budget for the following project.  Prepare a figure like Exhibit 10.9, CPT 4e, that illustrates the daily and cumulative costs for the resource-leveled project.  

Assume the following hourly rates:

Alcides $45 / hr.

Joan $50 / hr.

(Assume normal workday = 8 hours/day & normal workweek = 40 hours/week)

Activity ID

Activity

Immediate Predecessor

Duration in days

Resource

Work Hours available per Day

A

Evaluate freezers

2

Alcides

6

B

Chart temperatures

6

Joan

4

C

Review service record

2

Alcides

D

Consult with HVAC engineer

A, B, C

3

Alcides

E

Develop construction plan

D

10

Joan

F

Complete IC assignment

E

2

Alcides

G

Complete ROI analysis

E

5

Joan

H

Conduct regulatory review

E

4

Joan

I

Obtain construction approval

F, G, H

2

Alcides

Part 3 Budget Estimating (50 points)

You are the project manager for a process improvement project for Company XYZ.    Prepare a figure like Exhibit 10.9 that illustrates the weekly and cumulative costs for the resource-leveled project. 

Hint: To accomplish this exercise, you’ll need to create a project schedule in MS Excel (or by hand), create resource assignments, assign costs to each resource, and assign the resources to each task.  Some resource leveling will be required. 

In this project, you have 3 employees: Ann, Becky and Clive.  Each person is limited to the amount of time allocated to your project.  Ann and Becky are available 30 hours/week; Clive is available 20 hours/week.  There hourly rates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.

(Assume normal workday = 8 hours/day & normal workweek = 40 hours/week)

WBS

Activity

Immediate Predecessor

Estimated Duration in weeks

Resource

1

 Process Improvement Project

1.1

 Operational definition

1.1.1

 Research literature

3

Becky

1.1.2

 Identify and define terms

1.1.1

1

Ann

1.1.3

 Obtain approval of definition

1.1.2

2

Clive

1.2

 Target Selection

1.2.1

 Solicit partners for pilot

2

Ann

1.2.2

 Hold brainstorming meeting

1.2.1

2

Becky

1.2.3

 Identify characteristics of targets

1.2.2, 1.3.1

1

Ann

1.2.4

 Obtain approval of partners

1.2.3, 1.1.2, 1.3.4

1

Clive

1.3

 Question set

1.3.1

 Identify process group members

2

Clive

1.3.2

 Develop question set

1.2.3

4

Ann

1.3.3

 Prototype and validate question set

1.3.2

3

Becky

1.3.4

 Add partners

1.3.1, 1.2.1

3

Becky

1.4

 Pilot process

1.4.1

 Schedule with target audience

1.2.4

2

Becky

1.4.2

 Conduct beta test

1.3.4, 1.2.4

2

Clive

1.4.3

 Process feedback from target audience

1.4.2

2

Ann

1.4.4

 Conduct pilot

1.4.3

2

Clive

1.4.5

 Analyze results

1.4.4

2

Clive