Job Costing Lecture 2- Part 3
Project Analysis <ul><li>This process determines the main elements of the project </li></ul><ul><ul><li>Who </li></ul></ul...
GAP Analysis <ul><li>Current situation </li></ul><ul><li>Desired situation </li></ul><ul><li>Fill the GAP </li></ul><ul><u...
Mager's Theory of Behavioral Objectives <ul><li>Mager's central concept is that a learning goal should be broken into a su...
Examples of Objectives <ul><li>Poorly written </li></ul><ul><ul><li>By creating this brochure, your sales will increase by...
Project Analysis leads to how much? <ul><li>Often times, clients want to know this first….don’t tell them </li></ul><ul><u...
When it comes time to cost… <ul><li>The process </li></ul><ul><ul><li>Based on the objectives, setup development schedule ...
The easy part is the math.. <ul><li>Add up the entire amount of hours </li></ul><ul><ul><li>Take this number and add 20-35...
Don’t forget the extras <ul><li>What about the computer/camera/printer/paper/gasoline/air fare/hotel stays/paper clips/etc...
VCT 4670 Project Triangle Objectives Cost Time
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Vct 4670 job costing information

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Vct 4670 job costing information

  1. 1. Job Costing Lecture 2- Part 3
  2. 2. Project Analysis <ul><li>This process determines the main elements of the project </li></ul><ul><ul><li>Who </li></ul></ul><ul><ul><li>What </li></ul></ul><ul><ul><li>Where </li></ul></ul><ul><ul><li>When </li></ul></ul><ul><ul><li>Why </li></ul></ul><ul><ul><li>How </li></ul></ul>
  3. 3. GAP Analysis <ul><li>Current situation </li></ul><ul><li>Desired situation </li></ul><ul><li>Fill the GAP </li></ul><ul><ul><li>What can we do to make the the current the desired? </li></ul></ul><ul><ul><ul><li>Combines elements of who/what/where/when/why/how </li></ul></ul></ul><ul><ul><li>Creates the objectives of the project </li></ul></ul>
  4. 4. Mager's Theory of Behavioral Objectives <ul><li>Mager's central concept is that a learning goal should be broken into a subset of smaller tasks or learning objectives. </li></ul><ul><li>By his definition, an objective should have three components: </li></ul><ul><ul><li>Behavior. The behavior should be specific and observable. </li></ul></ul><ul><ul><li>Condition. The conditions under which the behavior is to be completed should be stated, including what tools or assistance is to be provided. </li></ul></ul><ul><ul><li>Standard. The level of performance that is desirable should be stated, including an acceptable range of answers that are allowable as correct. </li></ul></ul>http://www.e-learningguru.com/articles/art3_4.htm
  5. 5. Examples of Objectives <ul><li>Poorly written </li></ul><ul><ul><li>By creating this brochure, your sales will increase by 50%. </li></ul></ul><ul><ul><li>Because you have no existing web site, we will create one that will help you sell your stuff. </li></ul></ul><ul><li>Well written </li></ul><ul><ul><li>With this new brochure/web site, your potential clients will be provided valuable information about your products and services, thereby increasing your organizations recognition. </li></ul></ul><ul><li>Be very careful not to promise what you cannot deliver! </li></ul>
  6. 6. Project Analysis leads to how much? <ul><li>Often times, clients want to know this first….don’t tell them </li></ul><ul><ul><li>VCT’ers don’t create products, they develop solutions </li></ul></ul><ul><ul><li>You will be no different than the 13-yr old kid with Dreamweaver if you only make web sites or print or videos or….etc. </li></ul></ul><ul><ul><li>Value added versus Product added </li></ul></ul><ul><ul><ul><li>Can you prove your objectives with a product? </li></ul></ul></ul>
  7. 7. When it comes time to cost… <ul><li>The process </li></ul><ul><ul><li>Based on the objectives, setup development schedule </li></ul></ul><ul><ul><ul><li>Add all delivery milestones and checkpoints </li></ul></ul></ul><ul><ul><ul><li>Be sure to be careful with client requirements </li></ul></ul></ul><ul><ul><li>Consider the cost of the project’s timeline </li></ul></ul><ul><ul><ul><li>What will have to be placed on the “back burner” in order to make the delivery milestones? </li></ul></ul></ul><ul><ul><ul><li>Will multiple resources be needed to make the timeline? </li></ul></ul></ul><ul><ul><ul><li>How many hours are going to be needed for each step? </li></ul></ul></ul>
  8. 8. The easy part is the math.. <ul><li>Add up the entire amount of hours </li></ul><ul><ul><li>Take this number and add 20-35% on top for project management </li></ul></ul><ul><ul><ul><li>These are your internal and external meetings, your driving, your phone calls, your scheduling, etc… </li></ul></ul></ul><ul><li>Set your hourly rate for each line item </li></ul><ul><li>Multiply the hours times the rate </li></ul><ul><ul><li>Hint: take any one else’s hours and add 33-50% on top for fluff </li></ul></ul><ul><li>Add up the costs and provide to client for project cost method.. </li></ul><ul><li>Time and materials is another method…hours * rate not to exceed a certain dollar amount </li></ul>
  9. 9. Don’t forget the extras <ul><li>What about the computer/camera/printer/paper/gasoline/air fare/hotel stays/paper clips/etc. </li></ul><ul><ul><li>Who pays for those? </li></ul></ul><ul><ul><li>Who administers those (trips)? </li></ul></ul><ul><li>How long did you take to research the project? </li></ul><ul><li>How much time did it take to write the quote? </li></ul><ul><ul><li>Cost of sale items included? </li></ul></ul>
  10. 10. VCT 4670 Project Triangle Objectives Cost Time

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