Tony Prince and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance. The schedule and cost goals are to complete the project in six months for under $200,000.

Tasks

1. Use the following WBS, and be sure to document your assumptions in preparing the cost model. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000.

1. Project management
2. Requirements definition
3. Web site design

1. Registration for recreational programs
2. Registration for classes and programs
3. Tracking system
4. Incentive system

4. Web site development

1. Registration for recreational programs
2. Registration for classes and programs
3. Tracking system
4. Incentive system

5. Testing
6. Training, rollout, and support

2. Assume that you have completed three months of the project. The BAC was $200,000 for this six-month project. You can also make the following assumptions:

PV = $120,000

EV = $100,000

AC = $90,000

1. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?
2. How is the project doing? Is it ahead of schedule or behind schedule? Is it under bud get or over budget?
3. Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?