BSBPMG533 Assessment 2

BSB50820 Diploma of Project Management BSBPMG533 Manage project cost Assessment 2 Student name: Samran lnthama Student ID: 170072 Appendix 2 – Determining project costs Financial objectives of the project: The CFO (Edith Partridge) has set a net profit target of $200,000 Role and responsibilities assumed in the project:  I am the newly appointed Administration Manager for Manager Networks. I have been asked to coordinate the conference project as the Project Officer, including managing the project costs and making sure the budget is met and adhered to.  Donna Chisholm, who is the co-ordinator of the Manager Networks’ trainers.  Dan Streep, the Administration Assistant has had experience with the ground level work required for a conference.  Erin O’Donnell, the Manager Networks Marketing Manager, will co-ordinate the marketing material. Relevant budget information: Where would you find relevant budget information from? Expenses Income Venue $50,000.00 "Registration fees – $100,000.00 Catering $20,000.00 individuals" $100,000.00 Speaker fees $10,000.00 "Registration fees – $50,000.00 Speakers travel $4,520.00 companies" $45,000.00 Publicity $7,250.00 Sponsorship: Gold $100,000.00 Courier $1,595.00 Sponsorship: Silver $100,000.00 Entertainers $6,400.00 Sponsorship: Bronze $100,000.00

Printing $3,500.00 TOTAL $103,265.00 TOTAL $395,000.00 Cost management policies and procedures summary: A cost management plan provides an overview of the project's cost estimation, allocation, and control for the needed resources to complete all project activities. The cost management plan, in general, investigates how project expenses will be planned, funded, and controlled. The organization should implement a cost leadership plan. Cost leadership occurs when a corporation portrays itself as the cheapest producer or provider of a certain product or commodity in a competition. The strategy is difficult to put in place since management must continually work to lower costs at all levels in order to remain competitive. Tasks and activities (WBS) Task 1. Venue  Get quotes  Decide venue  Book venue and equipment  Arrange catering 2. Speakers  Decide topics  Identify speakers  Arrange speakers  Brief speakers 3. Marketing  Decide marketing communication strategies  Develop promotional materials  Implement marketing communications 4. Registration  Prepare conference materials  Create registration process  Process registrations

Appendix 3 – Project Cost Management Plan Introduction Outline the purpose of the cost management plan in relation to the project. The aim of the project is to organize a conference focused on leadership skills, knowledge and trends as well as coordinating the conference project as a project officer. Financial objectives Include the financial objectives of the project and any actions required to maintain the financial objectives.  Increase cash flow  To reduce operating costs  Track project expenses Resource requirements and cost Summarise the major resources requirements, including the estimated and maximum allowable costs. TECHNICAL PHYSICAL NON-PHYSICAL Speakers Venue Marketing – Promotions Accommodation – Travel costs Refreshments Processes and procedures for monitoring actual expenditure against the budget Describe the processes for monitoring the actual expenditure (include recording of expenses) Required resources Cost Venue $50,000.00 Catering $20,000.00 Speaker fees $10,000.00 Speakers travel $4,520.00 Publicity $7,250.00 Courier $1,595.00 Entertainers $6,400.00 Printing $3,500.00 Potential causes of increases in costs Describe at least three factors that need to be considered that would increase costs  Number of delegates: The higher the number of delegates, the project cost may increase.  Variety of Refreshments: During the breaks, more refreshments mean cost more.

 Marketing – Promotions: Advertisement can cost more than that we expected. Project cost control procedures Describe cost control management processes that will be followed. Complete the table below to show allowable variations in costs and approval requirements.  Cost variance: After the calculation of variations the actual cost will be explained in final Cost Management Plan.  Schedule variance: The calculated cost is $23.700. It covers all the costs. Variation rate Action 0 – 5% Report variance and explanation of cause 5 – 20% Further commitment to additional costs must be approved the by Project Manager 20 – 45% Further commitment to additional costs must be approved by the Senior Management Team 45% plus Project must be stopped and reconsidered