ACTIVITY COST ESTIMATES TEMPLATE This Activity Cost Estimates Template is free for you to copy and use on your project and within your organization. We hope that you find this template useful and welcome your comments. Public distribution of this document is only permitted from the Project Management Docs official website at: www.ProjectManagementDocs.com ACTIVITY COST ESTIMATES COMPANY NAME STREET ADDRESS CITY, STATE ZIP CODE DATE Activity Cost Estimates Template www.ProjectManagementDocs.com Activity Cost Estimates are a valuable project management tool for determining the costs for a project. Much like how a project's work is broken down into activities and work packages, the activity cost estimate breaks the project's costs down to the activity level in order to improve the reliability and accuracy of the estimate. The activity cost estimate considers each project activity and the costs associated with completing the activity. These costs include direct costs for project resources, indirect costs which may be passed on to the project, and the amount held in contingency reserve for the activity. A given activity may have many resources allocated to it which all must be accounted for as part of the estimate for that activity. One characteristic of the activity cost estimate is documenting how the estimate was determined. This is usually done by either analogous or parametric estimating. Analogous estimating is done using similar past projects or activities to estimate cost. Parametric estimating is done by determining and using a unit cost calculated over a duration or quantity of units. Parametric estimating is usually more accurate and should result in a higher confidence level. Another characteristic of the activity cost estimate is that it often uses a range for the activity's cost estimate as well as a confidence level. At different stages of project planning some activities may be more well-defined which may result in a much higher confidence level than that of an activity with more unknowns. It is important to note that like most project management documentation, the activity cost estimate should continue to be revised and improved throughout the project's lifecycle. In general, the more information and detail that is available for an activity, the more accurate the activity cost estimate will be. Once activity cost estimates are completed for all of a project's activities, these can then be used to develop the overall project cost estimate. 1 Activity Cost Estimates Template www.ProjectManagementDocs.com Standard Activity Cost Estimates Template: Activity Cost Estimates Project: Date: WBS No. Resource Direct Costs Indirect Costs Reserve Estimate Method Assumptions/ Additional Range Constraints Information Confidence Level This should be the WBS number from the Work Breakdown Structure Type of resource (labor, material, equipment, service, etc.) Costs directly related to project work (staff salaries, supplies, training, etc.) Costs not directly attributable to the project (utilities, rent, security, etc.) Amount of funding held in reserves for contingencies Estimated cost Method used such as parametric, analogous, etc. Any assumptions used in developing the estimate such as labor cost per hour The degree of confidence in the estimate based on available information Information on cost of quality, interest rate, or other Range of estimate Example with Sample Data: Activity Cost Estimates Project: Flex Pay Database Date: 03/01/20xx WBS No. Resource Direct Costs Indirect Costs Reserve Estimate Method Assumptions/ Constraints Additional Information Range Confidence Level 3.1.1 Jr. Programmer for 40 hours 40 hrs @ $20.75 = $1,030 $0 $20.75 $1,050.75 Parametric N/A $1020 $1075 8 3.1.1 Network Specialist for 10 hours 10 hrs @ $26.90 = $269 $0 $53.80 $322.80 Parametric N/A $300 $350 7 3.1.1 Lease Network Test Equipment 12 hrs @ $42 = $504 $0 $504 Parametric Must obtain functional manager approval to assign Jr. Programmer Must obtain functional manager approval to assign Network Specialist Assume test equipment will be available Lease from Test Supply Corp. $500 $510 9 This free Activity Cost Estimates Template is brought to you by www.ProjectManagementDocs.com 2 MMIS 621: Information Systems Project Management Summer 2015 Assignment 4: Information Systems Project Management Plan Purpose: The purpose of this paper is to give you an opportunity to apply and demonstrate your understanding of the tools and principles covered in the class to a project of your choice. Selecting a Project: Select a project that you can use for this assignment. The project should be one from your past, present, or future career work situation. If this is not feasible, discuss with the professor potential project ideas. Deliverables: Three deliverables will be part of Assignment 4: 1. Scope Statement (2 points) - due June 7 2. Work Breakdown Structure and Cost Estimates (3 points) - due July 19 3. Full Project Plan (25 points) - Due August 2 The following information should be included in the full project plan due on August 2. Use the following headings and subheadings to organize your plan. Approximate page number are provided in parentheses. Templates for the project scope statement, work breakdown structure, risk assessment form, and change request form are provided at the end of this document. References are from the course textbook, Larson and Gray (2013). Section 1: Project Definition (5-6 pages) Define the Project Scope: Use the scope statement template to develop a 2-3 page scope statement for your project. See a snapshot example on page 105. Establish Project Priorities: As a project manager, you will need to manage the trade-offs among time, cost, and performance. Create a priority matrix (See figure 4.2 on page 107) to determine which criterion (i.e., time, performance, and cost) are constrained, enhanced, and accepted. Provide a brief explanation about your decisions to accompany the matrix. Create a Work Breakdown Structure (WBS) and Cost Estimates: Once you have completed your scope statement including the identification of your deliverables and the project priorities, you will create a work breakdown structure (WBS) to delineate the tasks. Refer to pages 108-113 and the WBS template to prepare a WBS for your project. Estimate the project costs and explain how you went about estimating costs. If you prefer, you may use one 1 of the WBS with cost estimate templates (Word and Excel) provided in Blackboard. 2 Section 2: Project Communication (1-2 pages) Create a Responsibility Matrix: In order to ensure good communication among the project team, create a responsibility matrix (see Figure 4.7 on page 118 for an example). Create a Power/Interest Map: This is part of the stakeholder analysis. Who are your stakeholders (e.g., customer, sponsor, project team, etc.). See Figure 4.9 on page 120. (Letters on the map represent various stakeholders. Make sure to include a key with your map.) You will address stakeholder analysis again later on in Section 6. Section 3: Project Plan (1-2 pages) Develop a Project Network: From your WBS, develop an activity-on-node (AON) project network. Apply the eight basic rules listed on page 164 for constructing a project network. Remember the AON method uses nodes (boxes) for activities and arrows for dependencies. Section 4: Project Risk Management (1-2 pages) Develop a Risk Assessment and Risk Response Matrix: Identify and describe at least five potential risks associated with your project. Use a risk assessment form to analyze your risks (See Figure 7.6 on page 212 for an example). Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of the risks. Section 5: Project Change Control Management (1-2 pages) Document Change: Controlling project changes is very important to project managers. It is a major element in managing risk. If your project is new, create a hypothetical change. If you are documenting a past or existing project, identify on major change that has occurred. Use the Change Request Form template to document the change. Section 6: Project Leadership (1-2 pages) Stakeholder Analysis - Mapping Dependencies: Refer to pages 347349. Create a dependencies diagram by identifying the stakeholders on whom your project depends for success. Think about the following questions: 1. Whose cooperation will we need? 2. Whose agreement or approval will we need? 3. Whose opposition would keep us from accomplishing the project? 3 Keys to Success: Identify potential management issues (e.g., motivation problems, conflicts) that are likely to arise in completing this project. What should you, as the project manager, look out for in managing this project? What are the keys to success? Guidelines and Suggestions for Creating Your Project Management Plan 1. It's best to limit the number of activities in your project to 15-25 activities to keep the paper manageable. 2. Your paper must tell a story! Use a narrative to explain each section. Explain the managerial implications of each section. The narrative is as important as your application of the tools and systems of the course to your project. 3. Pick a project that allows you to demonstrate the principles covered in the course. 4. Think ahead to the resources that will be used. The project should involved more than two people. 5. Assume that top management is reviewing this report. Time is precious, so organize your report so that it is easy to comprehend and follow. Embed figures and tables into the text. 6. Constructing patios, garages, pools, and trivial projects are not valid projects for this course. Aim to identify a project within your present or future profession. 7. Be realistic and create a project scenario that is either cost restrained, scope constrained and/or time constrained. (The \"triple constraint!\") 8. Your goal is to demonstrate your understanding of the systems, tools, and concepts discussed in the class through your project narrative. 4 Scope Statement for [Project Name] Project Title: Prepared by: Date: Version: Project Objective: . Deliverables: 1. 2. 3. 4. Milestones 1. 2. 3. 4. Technical Requirements: 1. 2. 3. 4. Limits and Exclusions: 1. 2. 3. 4. Customer Review: 5 Work Breakdown Structure for [Project Name] Prepared by: Date: 1.0 Main category 1 1.1 Subcategory 1.2 Subcategory 1.2.1 Sub-subcategory 1.2.2 Sub-subcategory 1.3 Subcategory 1.4 Subcategory 2.0 Main category 2 2.1 Subcategory 2.2 Subcategory 2.2.1 Sub-subcategory 2.2.2 Sub-subcategory 2.3 Subcategory 2.4 Subcategory 3.0 Main category 3 3.1 Subcategory 3.2 Subcategory 3.2.1 Sub-subcategory 3.2.2 Sub-subcategory 3.3 Subcategory 3.4 Subcategory 4.0 Main category 4 4.1 Subcategory 4.2 Subcategory 4.2.1 Sub-subcategory 4.2.2 Sub-subcategory 4.3 Subcategory 4.4 Subcategory 6 List of Prioritized Risks for [Project Name] Prepared by: Risk Event Date: Likelihood Impact Detection Difficulty When 7 Change Request Form for [Project Name] Project Name: Date Request Submitted: Title of Change Request Change Order Number: Submitted by: (name and contact information) Change Category: Scope Schedule Other Cost Technology Description of change requested: Events that made this change necessary or desirable: Justification for the change/why it is needed/desired to continue/complete the project: Impact of the proposed change on: Scope: Schedule: Cost: Staffing: Risk: Other: Suggested implementation if the change request is approved: Required approvals: Name/Title Date Approve/Reject 8 9 Work Breakdown Structure for [Project Name] Prepared by: Date: 1.0 Main category 1 1.1 Subcategory 1.2 Subcategory 1.2.1 Sub-subcategory 1.2.2 Sub-subcategory 1.3 Subcategory 1.4 Subcategory 2.0 Main category 2 2.1 Subcategory 2.2 Subcategory 2.2.1 Sub-subcategory 2.2.2 Sub-subcategory 2.3 Subcategory 2.4 Subcategory 3.0 Main category 3 3.1 Subcategory 3.2 Subcategory 3.2.1 Sub-subcategory 3.2.2 Sub-subcategory 3.3 Subcategory 3.4 Subcategory 4.0 Main category 4 4.1 Subcategory 4.2 Subcategory 4.2.1 Sub-subcategory 4.2.2 Sub-subcategory 4.3 Subcategory 4.4 Subcategory