Skills assessment

Appendix 1 - Simulation pack

Criteria

Unit code and name

BSBPMG423 | Apply project cost management techniques (Release 1)

Qualification/Course code and name

BSB40920 | Certificate IV in Project Management Practice

Version: 20220304

Date created: 14 January 2022

Date modified: 4 March 2022

For queries, please contact:

Technology & BusinessSkillsPoint

2022 TAFE NSW RTO Provider Number 90003 | CRICOS Provider Code: 00591E

This assessment can be found in the:Learning Bank

The content in this document is copyright TAFE NSW 2022 and includes information from BSBPMG539 assessment resources 2021 RTO. This document should not be reproduced without the permission of TAFE NSW. Information contained in this document is correct at the time of printing:20 October 2023. For current information please refer to our website or your Teacher/Assessor as appropriate.

Specific task instructions

This Simulation pack contains information required to complete the Skills Assessment where the student has elected to conduct simulated projects.

Case Study - Gelos Enterprises

You are an employee at Gelos Enterprises, an innovation and professional services firm. Gelos serves clients across a wide range of industries. Go toGelos Enterprise website and review the company's:

• mission statement
• business objectives

(Long URL:https://share.tafensw.edu.au/share/file/d0b458dc-3922-409d-b1fe-9a2f785f4a38/1/GelosEnterprises.zip/index.html)

As part of Gelos' new proposition and in addition to developing leading products, technologies, and consultancy services, Gelos has identified two new opportunities. The projects are:

1. Hosting an annual conference for new and existing clients across all industries to showcase Gelos' products, technologies and consultancy capabilities.
2. Publishing an E-book that details Gelos Enterprises' expertise in innovation and strategy, focusing on business leadership.

You will take on the role of Project Assistant for both of the two projects. You will work closely with the Project Manager of both projects, the project teams and supporting staff from various departments.

This skills assessment requires you to apply project cost management techniques. You must demonstrate that you can:

• assist in developing project budget
• monitor project costs
• contribute to cost-finalisation processes

Gelos Enterprises Financial Management Policy and Procedures

Purpose of the Policy

Gelos Enterprises will operate in a financially sustainable manner balancing revenue and expenditure.

Our financial planning process are as follows:

• financial results and systems are analysed annually
• financial objectives and strategy are set for each year
• budgets and forecasts are set for each year.

Procedures

Budgets are set for each applicable service (or project) as part of a Cost Management Report. Budgets are based on expected income and expenses. Budgets will be set by the Project Manager with the assistance of the Project Assistant.

A contingency amount is usually included in each budget to account for unexpected costs.

Project Managers are expected to inform their team of the budget and to provide them with the required resources and systems to fulfill their roles. Generally, this will include monthly emails to monitor the budget. Team members are expected to report all expenses to the Project Assistant who will update the budgets and assist with cost management processes.

Project Budgets will be finalised by obtaining input from multiple stakeholders.

Multiple quotes should be obtained before committing to an expense.

Budgets should be monitored by the Project Manager every month to make sure expenses are on track.Refer to Table 1 to understand how variations will be assessed.

Table 1 - Assessing variations

Variation rate	Action
0 - 5%	Report variance to the Project Manager and explain the 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

Where a cost variation is considered, a change request must be submitted by email to the Project Manager.

The request is to include:

• project costs to date
• additional cost(s) that will be incurred
• variations to baseline and actions required
• justification for the change.

Each Project Manager must review their budget amount versus actual amount on a monthly basis. Variances of up to 5% over budget are acceptable. Differences between actual and budgeted amounts must be described, as well as justifications for such.

A Project Finalisation Report is required at the end of each project. The purpose of this report is to document project outcomes (including budget and costs) and to recommend improvements for future cost management processes.

Project 1: Annual conference

Tasks 1 - 13

Note: The following contains information required to complete Tasks 1 - 13 of BSBPMG423_AE_Sk2of2

Gelos has decided that they would like to host an annual conference to showcase both upcoming and existing products, technologies, and consultancy capabilities. The speakers that will be invited are Gelos representatives, as well as industry and academic leaders who are well known and respected within the industry. The conference project has not yet been finalised, and it will run in about six months.

Project scope

This project will cover all aspects of the conference, including planning and follow-up. It is restricted to the conference itself, and will not affect, or be accountable for, any other Gelos Enterprises products or services.

Project objectives

The objectives of this project are:

• to deliver a conference that showcases Gelos' upcoming and existing products, technologies, and consultancy capabilities
• attract new customers to Gelos Enterprises, particularly in Western Australia
• to deliver the conference on budget.

Project deliverables

This project's deliverables are:

• a well-attended conference
• a conference that runs at a profit of at least $10,000
• make contact with potential new clients in Western Australia
• an increase in Gelos Enterprises' brand awareness.

Project stakeholders

The project's stakeholders include the following:

• Gelos Enterprises' staff and management, including the project team
• Gelos Enterprises' clients
• all of the invited speakers
• the venue project manager

Conference Program

The conference program must include key sessions with five different speakers.

The program must also reflect, as required, a balance of conference elements e.g., networking sessions mixed with formal sessions. There will be frequent breaks in between sessions.

Recommended speakers

Speakers should be well-known Australian business leaders a with maximum one international speaker. There will be five speakers in total with a fee of $2,000 per speaker (excluding travel costs).

Project team

Trudi Barr, who is the Project Manager for this project, is responsible for co-ordinating and overseeing the project. You will be Trudi's Project Assistant for this project.

Donna Chisholm, who is the Project Co-ordinator, will help with contacting and lining up the speakers.

Ben Streep, the Administration Manager has had experience with the ground level work required for a conference, and he will help to determine and prepare the venue. One of his Administration Assistants, Dan Lee, used to work in event management, and will be supporting Ben with the venue preparation and management.

Aditi Gupta, the Marketing Manager, will co-ordinate the marketing material, registration andsend out invites to attendees through Gelos Enterprises' new CRM system. The Marketing Assistant, Zaid Assis, will be carrying out most of the design and commissioning of the marketing material under Aditi's guidance.

Conference details

The participant target group is managers across a wide range of industries. This group will be targeted by email using the Gelos' new CRM system and publicised through social media such as LinkedIn. As this is Gelos' first annual conference, there is limited information to determine attendance numbers and profits.

The annual conference will be held in Perth, where Gelos Enterprises' Western Australia office is located. It is hoped that attendance by managers in Perth will lift the company's brand awareness in Western Australia. Perth has also been chosen due to its handling of the COVID-19 pandemic and the lesser restrictions on gathering numbers.

Conference facilities require a centrally located venue that has a conference room that can accommodate up to 200 people. Invited speakers will want to be accommodated nearby, so there will need to be an appropriate hotel in the vicinity for approximately 20 people.

The conference venue must be able to provide required conference equipment. There must be access to audio-visual equipment including microphones, projectors, and screens for projecting. There also needs to be lecterns and an electronic whiteboard. The venue will also need to be able to provide on-site catering for the meeting attendees. It should include a high-quality morning tea, lunch, and afternoon tea.

Everyone is hoping the conference will go ahead in person, but there is still uncertainty as the pandemic is not yet over, so an online option needs to be considered as a backup plan.

Conference Action Plan

Table 2 - Conference Action Plan

Task/Activity	When	Who
Venue Get quotes Decide venue Book venue and equipment Arrange catering	Four months prior to conference	Administration Manager
Speakers Decide topics Identify speakers Arrange speakers Brief speakers	Three months prior to conference	Project Co-ordinator
Marketing Decide marketing communication strategies Develop promotional materials Implement marketing communications	Commencing on finalisation of venue and speakers	Marketing Manager
Registration Prepare conference materials Create registration process Process registrations	Two months prior to the conference	Project Co-ordinator

Budget

The total budget for the conference is $75,000 but it's expected to make that back in revenue from the tickets and make a profit also.

The projected attendee numbers are 200 people. Registration costs should be determined based on this.

There will be five speakers in total with a fee of $2,000 per speaker (excluding travel costs).

Budget variances of up to 5% can be accommodated but must be reported.

Previous year's conference budget

Table 3 - Previous year's conference budget

	Budget	Actual
Total Conference Income	$75,000	$70,000
Expenses	Budget	Actual
Venue	$20,000	$23,000
Catering	$13,000	$15,000
Speaker fees	$8,600	$8,000
Speaker travel and accommodation	$4,000	$4,500
Publicity	$10,000	$12,000
Courier	$1,000	$500
Printing	$2,000	$3,000
Online booking system	$5,000	$4,500
Total expenses	$63,600	$70,500
NET PROFIT (Net Income)	$11,400	($500)

Task 7

Note: The following contains information required to complete Task 7 of BSBPMG523_AE_Sk2of2

Emails

The following section contains an email that you sent to the Project Manager to set up a meeting. Use this email to inform your meeting with the Project Manager. Follow the instructions in BSBPMG423_AE_Sk2of2_Appx2 to complete the Role Play.

Email 1

To: Trudi Barr (Project Manager)

Subject: Meeting Request | Conference Project Cost Management Report

Dear Trudi,

I have estimated the costs for the annual conference and developed recommended project cost management strategies, processes, methods, techniques, and tools.

Currently, total costs are estimated to amount to $79,300. Your input will be appreciated. Would you have time next Wednesday at 1pm to discuss the attached report?

Kind regards,

Student name

Email 2

To: Student name

Subject: Meeting Request | Conference Project Cost Management Report

Dear Student name,

Thank you for providing the project cost management report.

I am free next Wednesday for 30 minutes to discuss the details of the report and to provide my input.

Warm Regards,

Trudi

Tasks 9 - 10

Note: The following contains information required to complete Tasks 9 - 10 of BSBPMG423_AE_Sk2of2

After one month, you emailed project team members for cost and income updates. In response to your email, you received the following information from a team member.

Dear Student name,

The first choice of venue is unavailable on the day we require. The second-choice venue, the convention rooms in the Elements Hotel (which is more centrally located and has better facilities), will require an additional $3,000 to rent the venue.

There are no other suitable venue options available on that date. We are still expecting around 200 participants and our ticket sales expectation has not changed.

Kind regards

Team member

Task 11

Note: The following contains information required to complete Task 11 of BSBPMG423_AE_Sk2of2

After two months, you once again sought updates about project costs and income. In response to your email, you received the following information from a team member.

Dear Student name,

Thank you for your email. I have secured 5 excellent speakers and am excited that they are willing to participate in our conference. Four of the speakers have requested a payment of $2,000. However, one speaker has requested a fee of $3,500. We can either pay this amount to the speaker, or one of our in-house Principal Consultants can give the talk for $1000.

Please let me know how to proceed.

Kind regards,

Marketing Manager

You consulted via email with the Project Manager about the two options outlined by the Marketing Manager, and it was decided that the Principal Consultant would be the fifth speaker to keep project costs as close to the original budget as possible.

Task 13

Note: The following contains information required to complete Task 13 of BSBPMG423_AE_Sk2of2

You received the following comments from the survey you sent to team members seeking their feedback:

• Great process, but too many emails.
• We didn't meet face-to-face very often.
• Maybe we should consider a real-time information system?

Project 2: E-book

Tasks 1 - 13

Note: The following contains information required to complete Tasks 1 - 13 of BSBPMG423_AE_Sk2of2

You have been tasked as a Project Assistant on a project to publish Gelos Enterprises' E-book on innovation and strategy in business leadership.

Project scope

This project will cover all aspects of the E-book, including planning, producing, and publishing. It is restricted to the E-book itself, and will not affect, or be accountable for, any other Gelos Enterprises products or services. The purpose of the E-book is to provide expert content on innovation and strategy to business professionals using everyday language.

Project objectives

The objectives of this project are:

• to publish an E-book that showcases Gelos Enterprises' expertise in innovation and strategy, focusing on business leadership
• to provide professional development for readers
• to increase Gelos Enterprises' brand reputation and attract new customers.

Project deliverables

This project's deliverables are:

• selling 1000 books
• to deliver the project on budget with a profit of at least $6,000.

Project stakeholders

The project's stakeholders include:

• Gelos Enterprises' staff and management, including the project team
• Gelos Enterprises' clients
• Principal Consultants who will create a framework for the E-book's contents
• Subject Matter Experts who will contribute their knowledge
• Content Writers who will write the content of the E-book
• the E-book software platform
• the publisher
• the seller.

Project team

Trudi Barr, who is the Project Manager for this project, is responsible for co-ordinating and overseeing the project. You are Trudi's Project Assistant.

Donna Chisholm, who is the Project Co-ordinator of Gelos Enterprises, will communicate with the Subject Matter Experts, Content Writers, the E-book software platform, the publisher and the seller.

Aditi Gupta, Gelos Enterprises' Marketing Manager, will conduct the research into a suitable E-book software platform, publisher and seller.

E-book Details

The theme for the E-book is leadership. It must include five chapters, with each chapter addressing a different aspect of leadership. The E-book will use everyday language to make complex issues easy to understand and apply. It will include practical advice and examples. The E-book is to be released in four months. The target reader group is managers in all industries.

The recommended Subject Matter Experts (SMEs) should be successful Australian business leaders. The content writers should be experienced with working with business SMEs and conveying their expertise into everyday language.

E-book Action Plan

Table 4 - E-book Action Plan

Task/Activity	When	Who
Content writer Identify potential content writers Obtain quotes Choose content writer Sign contract	Four months prior to E-book launch	Project Co-ordinator
SMEs Decide chapter topics Identify SMEs Arrange SMEs Brief SMEs	Four months prior to E-book launch	Project Co-ordinator
Platform Decide on E-book software Purchase software Create book	Two months prior to E-book launch	Marketing Manager
Launch Arrange social media marketing Email customers Confirm website can facilitate sale Make book available	Four months from current date	Marketing Manager

Proposed budget allocation

The projected numbers will be 1000 downloads. The E-book cost should be determined on this as well as current market research. Budget variances of up to 5% can be accommodated but must be reported. There will be five SMEs in total (one per chapter), with a fee of $1,500 per SME.

Budget for another E-book published last year

Table 5 - Budget for another E-book published last year

	Budget	Actual
Total E-book Income	$35,000	$30,000
Expenses	Budget	Actual
SMEs	$7,500	$7,500
Content writer	$8,000	$10,000
E-book software	$1,000	$1,500
PayPal fees	$1,315	$1,300
Credit card fees	$1,225	$1,300
Website upgrade	$5,000	$6,000
Total expenses	$24,040	$27,600
NET PROFIT (Net Income)	$10,960	$2,400

Task 7

Note: The following contains information required to complete Task 7 of BSBPMG523_AE_Sk2of2

Emails

The following section contains an email that you sent to the Project Manager to set up a meeting. Use this email to inform your meeting with the Project Manager. Follow the instructions in BSBPMG423_AE_Sk2of2_Appx2 to complete the Role Play.

Email 1

To: Trudi Barr (Project Manager)

Subject: Meeting Request | E-book Project Cost Management Report

Dear Trudi,

I have estimated the costs for the annual conference and developed recommended project cost management strategies, processes, methods, techniques, and tools.

Currently, total costs are estimated to amount to $26,334. Your input will be appreciated. Would you have time next Wednesday at 1pm to discuss the attached report?

Kind regards,

Student name

Email 2

To: Student name

Subject: Meeting Request | E-book Project Cost Management Report

Dear Student name,

Thank you for providing the project cost management report.

I am free next Wednesday for 30 minutes to discuss the details of the report and to provide my input.

Warm Regards,

Trudi

Task 9

Note: The following contains information required to complete Task 9 of BSBPMG423_AE_Sk2of2

After one month, you emailed project team members for cost and income updates. In response to your email, you received the following information from a team member.

Dear Student name,

Thank you for your email. I have secured 5 Subject matter Experts who I believe will make significant contributions to the E-book. I and am excited that they are willing to participate in our initiative. Four of the speakers have requested a payment of $1,500 for their contribution. However, one SME has requested a fee of $2000.

Please let me know how to proceed.

Kind regards,

Marketing Manager

Task 11

Note: The following contains information required to complete Task 11 of BSBPMG423_AE_Sk2of2

After two months, you once again sought updates about project costs and income. In response to your email, you received the following information from a team member.

After two months, you once again sought updates about project costs and income. In response to your email, you received th following information from a team member:

Dear Student name,

Our market research has shown that to make 1000 book sales, an aggressive marketing approach is needed.

For this, I advise that we employ an external marketing agency to take control of the E-book marketing campaign. I have attached two quotes for your reference.

I advise that we use WeMarketYou as their quote considers a range of marketing platforms.

Please will you seek approval for the budget changes and advise me on how to proceed.

Kind regards,

Marketing Manager

WeMarketYou Quote #1234

Dedicated marketing of an E-book to include digital marketing (social media, Google Ad-words). Marketing campaign to be developed and run for 2 months prior to the book launch and maintained for 6 months thereafter.

Quote (incl GST): $15,000.

YouShine Quote #4321

Thank you for the opportunity to quote for the marketing of your E-book. We offer you a social media marketing campaign (to be developed and run for 2 months prior to the book launch and maintained for 6 months thereafter).

Quote: $5,000.

Email from Project Manager

The Project Manager responded to your change request to include marketing into the budget as follows:

Dear Project Assistant,

Thank you for your assistance to date. I will approve the $5000 marketing quote. We need to keep costs as low as possible to achieve our profit objectives.

Kind regards,

Project manager

Task 13

Note: The following contains information required to complete Task 13 of BSBPMG423_AE_Sk2of2

You received the following comments from the survey you sent to team members seeking their feedback:

• MS Word is tricky to adjust costs and perform calculations
• I am not too sure how many quotes I should obtain for expenses.