Week 6 Home Assignment: Project Estimation (50 Points)

Week 6 Home Assignment Project Estimation 50 Pointsbased On The Pr

Based on the project estimation information (pages 2–6), create the MS Project cost estimation plan, including work breakdown structure (WBS), labor/work estimates, non-labor estimates, and total cost and duration calculations.

Paper For Above instruction

The development of an accurate project cost estimation plan is crucial for effective project management, resource allocation, and stakeholder communication. For this assignment, a comprehensive MS Project cost estimation plan must be created based on provided project details, including work breakdown structure (WBS), labor estimates, non-labor estimates, and resource information. This plan aims to facilitate precise scheduling, budgeting, and resource management aligned with the project's scope and objectives.

Constructing the Work Breakdown Structure (WBS)

The first step involves creating an MS Project WBS that disaggregates the project into manageable tasks. These tasks should be organized in a hierarchical structure, with major phases summarized as appropriate for clarity. The WBS should include tasks such as brainstorming product ideas, researching these ideas, deciding on specific product ideas, defining product requirements, designing the product, reviewing the design, developing marketing strategies, implementing marketing plans, developing prototypes, testing prototypes, reviewing prototypes, developing production models, testing and reviewing production models, designing production processes, laying out production lines, testing and reviewing production lines, designing customer support processes, documenting these processes, training staff, and rolling out customer support.

Entering Labor/Work Estimates

For each WBS task, three labor or work estimates should be recorded: pessimistic, most likely, and optimistic. These estimates are essential for understanding potential schedule variations and resource requirements. For practical purposes, the most likely labor estimate should be used for each task to form the base plan. It is important to convert work estimates into hours and to apply resource pay rates accurately. The minimum work per task should be one hour, rounded to whole dollar pay rates, as specified.

Handling Overloads and Resource Allocation

The plan should account for resource overloads by scheduling overload pay rates where necessary. The resource data entails multiple roles such as engineering, marketing, production, and customer service, each with specified maximum units (capacity), standard rates, and overtime rates. For example, engineering resources are billed at $50/hour, marketing at $40/hour, production at $25/hour with an overtime rate of $37.50/hour, and customer service at $25/hour with an overtime rate of $35/hour. Properly assigning these resources and rates ensures accurate labor cost computation and resource leveling in MS Project.

Incorporating Non-Labor and Material Estimates

Besides labor, non-labor/materiel costs such as marketing materials, prototype development, hardware/software upgrades, publication costs, and training materials must be included. These estimates are to be entered into corresponding cost worksheets. For instance, expenditures such as marketing development costs ($150,000 pessimistic, $100,000 most likely, $50,000 optimistic), prototype development costs, and production line setup costs are integral in calculating total project costs and reserving appropriate funds.

Cost Estimation Worksheets and Summaries

All estimates should aggregate on respective worksheets to display total project costs and durations for each task and phase. These totals help identify critical areas where budget adjustments may be required. The plan should include totals for labor hours, costs, non-labor/material costs, and total project duration in days. Using these data, project managers can generate a comprehensive Gantt chart illustrating task durations, dependencies, and resource allocations aligned with the estimated costs.

Resource and Duration Estimation

The resource details specify the number of people involved, estimated hours, and durations (pessimistic, most likely, and optimistic) for each task. For example, brainstorming might take 4 days with 3 people, whereas designing product requirements may take 10 days with 4 people. These estimates are used to derive project timelines and workload assumptions, which are critical for setting realistic expectations and effective scheduling in MS Project.

Summary and Final Budget Planning

Finally, the cost estimation plan should synthesize all data: task breakdown, labor estimates, non-labor estimates, resource allocations, and timelines. This comprehensive plan enables stakeholders to understand the project scope, expected costs, and schedule constraints. It also serves as a baseline for tracking project progress, managing change, and controlling costs throughout the project lifecycle.

Conclusion

Developing an accurate MS Project cost estimation plan based on detailed project data requires meticulous organization of tasks, precise resource allocation, and comprehensive cost inputs. By integrating labor, non-labor, and material estimates within a structured WBS and resource plan, project managers can effectively forecast project costs and schedules, proactively address potential overruns, and ensure successful project delivery.

References

  • Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
  • PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition. Project Management Institute.
  • Larson, E. W., & Gray, C. F. (2018). Project Management: The Managerial Process, 7th Edition. McGraw-Hill Education.
  • Heldman, K. (2018). Project Management JumpStart, 3rd Edition. Wiley.
  • Schwalbe, K. (2018). Information Technology Project Management, 9th Edition. Cengage Learning.
  • Gido, J., & Clements, J. (2018). Successful Project Management, 7th Edition. Cengage Learning.
  • Meredith, J. R., & Mantel, S. J. (2017). Project Management: A Managerial Approach. Wiley.
  • PMI. (2021). Practice Standard for Work Breakdown Structures. Project Management Institute.
  • Larman, C., & Basili, V. R. (2003). Iterative and incremental development: A brief history. IEEE Computer, 36(6), 47-56.
  • Schein, E. H. (2010). Organizational Culture and Leadership, 4th Edition. Jossey-Bass.

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