The assignment involves updating your project plan to cover the cost.docx

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The assignment involves updating your project plan to cover the costs associated with your identified activities. While not an official area of the assignment, it may help to identify resources and vendors needed to ensure your cost estimates are as accurate as possible. By placing resources against your work packages, you can get a clear visual of what each work package may cost. You will use the project schedule you developed to estimate costs and then translate those costs into your project budget baseline. Project budget baselines, typically include cost estimates that cover the following: Work package estimates Estimates for supplies or materials Estimates for vendors & procurement activity Estimates for risks or unknown project activity For this assignment, please submit your schedule along with cost estimates against each activity that measures your best appraisal for that task. Please also include a final quote for your project budget baseline .

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Sheet1ActivityWork (hours)Resource NameLabor RateLabor CostsMaterial CostsTravel CostsFacility CostsSubcontractor CostsTotal Costs Cost Management 235-AAH-CH Professor: Behn Nikkhah CLASS 3&4 2 3 Cost Estimation Estimating project costs are important because: • Can be used in feasibility study before starting the project. • It can facilitate decisions regarding project financing and funding. • It provides a standard against which actual costs incurred during the execution can be compared. • It gives the project manager a framework to allocate scarce resources throughout the project. 4 Cost Estimation This is a process of estimating the cost of the resources required for each scheduled activity. It is important to be certain to include all the costs required to complete the work of the project. 5 Estimate Costs Inputs • Project Management Plan (Cost management plan, Quality Management Plan, Scope baseline) • Project Documents (Lessons learned register, Project schedule, resource requirements, Risk register) • Enterprise environmental factors • Organizational process assets. 6 Estimate Costs Inputs Scope Baseline: • Project scope statement • WBS • WBS dictionary Project scope statement is a document that includes key deliverables, constraints, assumptions, etc. Constraints such as limited budget for the project can be find in this document. There might be other constraints such as delivery date that can impact the cost. Project assumptions regarding costs might include information regarding indirect costs in the estimate. 7 Estimate Costs Inputs The WBS serves as the basis for estimating costs, as it includes all deliverables and the control accounts that are typically established at the work package level. The WBS dictionary describes the deliverables, work components, and other elements of the WBS. All these information can be helpful in estimation of the costs. For example if one of the deliverables is to get licenses you need to see that as additional expenses to fulfill in the estimation. 8 Estimate Costs Inputs The Project schedule along with the resource requirements for each activity are key inputs in estimating costs of the project.t You need to be aware of the duration as it can affect costs. For example, you must account for costs such as interest charges in a financed work of the project. Another example is fluctuation in costs that can occur due to seasonal or holiday demands. 9 Estimate Costs Inputs The risk register contains the response plans, particularly for those risks with negative impacts to the project. When developing project cost estimates, you should consider the cost of implementing risk response plans. 10 Estimate Costs Inputs The enterprise environmental factors such as market conditions, exchange rates and inflation are examples to be considered in the project costs estimation. The organization process assets such as lessons.

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