Greystone College Australia BSBPMG514 Assessment Instructions Version 4.0620 Page 1 of 12
BSBPMG514 Manage project cost
How to work through your assessment
The tasks in this assessment will assess competency for the unit BSBPMG514 Manage project cost, Release 1.
• This document provides instructions only; do not upload this document to Moodle.
• The assessment process requires you to complete all assessment tasks.
• You must complete all your assessments unassisted by the assessor or anyone else.
• ILSC uses third party software to detect plagiarism.
• To gain a ‘Competent’ outcome in BSBPMG514 Manage project Cost you will be required to gain a 100% result in all Online Quizzes and a ‘Satisfactory’ result in the other assessment tasks.
• If you fail to meet the required criterion, you will receive the result ‘NYC’ = Not Yet Competent and will be eligible to be re-assessed.
– For Task 1 a student can continue to resubmit an online quiz until they achieve a result of 100%.
– For all other assessment tasks, the student has three (3) submission attempts.
• Listed below are the assessment tasks that you need to complete. You will record your answers in Moodle.
• Complete the Assessment Templates in the Assessment Templates document provided for Tasks 2 and 3.
Assessment information and scope
This unit describes the skills and knowledge required to identify, analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism to control project cost.
It applies to individuals responsible for managing and leading a project in an organisation, business, or as a consultant.
The key outcomes include:
• Determine project costs
• Monitor and control project costs
• Complete cost-management processes
You must successfully complete all the following assessment tasks to demonstrate competency in this unit.
Task 1 – Online Quizzes
Answer all of the Online Quiz questions.
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Task 2 – Knowledge Questions
Answer all of the short and long answer questions.
Record your answers in the Assessment Templates document.
Task 3 – Manage Cost within a Project
• Part 1: Cost Management Plan
• Part 2: Cost Management and Control
Demonstrate required skills and knowledge by developing a cost management plan, meeting with stakeholders in a simulated work environment and monitoring and controlling project costs as well as reporting on cost management issues.
Record your response in the Assessment Templates document.
• Observation: Project team meeting
You will participate in a team meeting. During the meeting, your assessor will observe and assess your performance in a simulated situation that reflects the workplace.
The Assessment Templates document located under the Assessment tab in Moodle, contains the templates you will use to record your answers to relevant assessment tasks.
Task 1 – Online Quizzes
Complete in Moodle
• Topic 1: Online Quiz – 7 Questions
• Topic 2: Online Quiz – 7 Questions
• Topic 3: Online Quiz – 7 Questions
Task 2 – Knowledge Questions
To assess you on your knowledge of the unit requirements
This task consists of 18 short answer questions.
• You must use the Task 2 – Knowledge Questions template in the assessment Templates document to record your answers.
• Your answers must follow the word count requirement as specified in each question.
Templates and resources required
You will need the following resources to complete Task 2:
• Task 2 – Knowledge Questions Template in the BSBPMG514 Assessment Templates document
• Student book
• Computer and Internet
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Provide answers to questions using the Assessment templates document.
1. List (3) three main processes of project cost management that form part of the Planning Process Group.
2. Outline the main steps in the budgeting process of a project.
3. List at least (3) three environmental enterprise factors that can influence the plan cost management process.
4. List (4) four Organisational Process Assets that can influence a project cost plan.
5. Outline (4) four tools and techniques used in the estimate cost process.
6. Explain the process of Estimated Costs and key benefits.
7. Describe the process of ‘Determine Budget and its Key benefit.
8. List (5) five inputs that are used to determine a budget.
9. What is a Cost Management Plan and what is its purpose?
10. What is Earned Value Management (EVM)?
11. Explain Cost Performance Index (CPI) and the common formula.
12. What is Schedule Performance Index (SPI) and the formula?
13. If a cost estimate is $50 000 +/- 20%; What is the range?
14. A project has an Earned Value (EV) of $10 000, Actual Cost (AC) of $8000 and Planned Value (PV) of $8000. Using the correct formula; What is the Schedule Variance (SV)?
15. You are working on a project to be completed in 14 months. The cost of the project is $1,000,000. After 7 months, $620,000 has been spent and only 40% of the work has been completed.
a. Using the correct formula, find the Cost Performance Index (CPI).
b. Is the project currently over or under budget?
16. You discover you cannot meet your current project cost baseline due to fluctuating international exchange rates. You calculate a bottom up estimate of remaining work at $2.5 million. The project’s current actual cost (AC) is $3.5 million. Using the correct forecasting formula, calculate the project estimate at completion. (You must show formula and breakdown).
17. Explain the use of milestones in budgeting.
18. Outline the procedures of a cost change process for a project.
Please note: Greystone College uses third party software to detect plagiarism
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Task 3 – Project – Manage cost within a project
You will be required to demonstrate the skills and knowledge to identify, analyse and refine project costs to produce a budget, and to use this budget as the main instrument to control project cost.
Assessment context and overview
In this assessment, you will determine project costs and budget for a conference as Project Officer for ‘Manager Networks’, the case study organisation for this assessment. (You may choose another case study; however you must get approval from your Trainer/Assessor).
In Part 1, you will develop a cost management plan and participate in a project meeting to discuss the project budget.
In Part 2, you will monitor and control project costs as well as report on cost management issues.
In Part 3, you will reflect on what you have learned about project cost control.
Your assessor will provide you with clear instructions before commencing each part of the assessment.
You are the new project manager for ‘Manager Networks’, an organisation that provides networking events for businesspeople across Australia.
The company’s senior manager is Regina Barlow and her email is reginabarlow@ManagerNetworks.com.
Although you have been given delegated authority to manage the costs and budget for the projects you undertake, you will need to contact the Senior manager, Regina Barlow with project updates.
Your first project is an annual conference event with a key focus on business leadership. The project had commenced 12 weeks earlier but is now running behind. You will have several tasks to complete in a shorter time frame including booking the conference venue and working out the budget and cost estimates. You will be working with the event co-ordinator who will be looking after speaker availability.
Initially the project had a 6-month timeline with the conference date 23rd November 20XX. You will be commencing the project on Monday 10th September 20XX and the project timeline is now 12 weeks which includes a week to wrap up after the conference.
The CEO Richard Green has requested that all project documentation is remodelled and reworked. He has supplied you with an extracted WBS and incomplete Gantt chart and instructs you to finalise scheduling before completing the project cost plan, budgets and estimates.
Assessment and Project Management Tools and Technology
It is recommended that you use a Project Management Information System (PMIS) while working on this project. A PMIS is typically a software management system used to calculate schedules, costs and expectations and most PMIS will automate and control project management systems.
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There are also a number of excel templates online to assist in completing assessments.
PMIS software can normally assist in:
• WBS Creation
• Gantt and scheduling activities
• Earned Value Management controls
• Quality control
• Calculating Functions
• Resource levelling
There are many off the shelf products, including Microsoft Project, as well as free open source products like Project Libre.
Other cloud-based solutions include (projectmanager.com, Smartsheet.com) are also available online by taking a 30-day free subscription.
Discuss the options with your trainer.
If you choose not to use PMIS software, the templates for this project are available in the Assessment Templates document and Required Resources folder on Moodle.
Templates and Resources required
The following resources are required for Task 3. You will find these in Moodle assessment tab for this unit.
• Task 3 – Manage cost within a project Templates in the Assessment Templates document
• WBS and Gantt – Excel spreadsheet
• Appendix 1 – Conference Plan Brief
• Organisation’s Policy and Procedures
• Computer equipment
• Microsoft office
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Project Activities and Directions
Part 1: Cost management plan
In your role of Project Manager for ‘Manager Networks’, you are required to determine project resources by researching and documenting costs for the annual conference project.
You will be participating in a meeting with project stakeholders to seek input on resource costs and developing a Project Cost Management Plan that includes a project Budget.
Ensure you are familiar with Case Study scenario 1 in the table above before starting, and read Case study 2 below, before undertaking the steps to complete Part 1 of the project.
• Update the WBS and Gantt Chart scheduling activities
• Develop a Project Cost Management Plan
• Develop cost/resource estimates and budget
• Participate in a project team meeting
• Write an email to the senior manager
Case Study Scenario 2:
Following on from Case Study Scenario 1 above:
The proposed venue has not yet been confirmed but was quoted at $45,000 for 2 days:
• Day 1 – set up.
• Day 2 – conference.
In house catering is available for a minimum of $69 per head which includes breakfast, morning tea lunch and afternoon tea.
Marketing has secured the following sponsorship:
• Presenting Platinum Sponsor $100,000.
• 2 Gold sponsors at $25,000.
• 5 Silver sponsors at $9000.
• 20 Bronze sponsors at $2000.
They currently have:
• 100 tentative company delegates attending at $1250 per head.
• 15 individual bookings at $1500 per head.
CEO Richard Green has requested a maximum of 25% of current income to be used to plan the conference in case sponsors withdraw.
The event coordinator is currently confirming the following speakers:
• Speaker A is from Melbourne.
• Speakers B, C and D are from Sydney.
• Speaker E is from the United Kingdom.
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Access the Conference Plan Brief (Appendix 1) in the required resources folder to help you determine project resource requirements, develop preliminary cost estimates and budget. These will be discussed and confirmed with the project team in a meeting in step 5. Ensure you are familiar with who you will be reporting to, as outlined in the brief.
1. Update the incomplete WBS and Gantt chart as part of your Cost Management Plan. Make sure the dates are correct, 20XX represents the current year. You have the option of using the Excel WBS and Gantt chart in the ‘Required Resources’ folder or recreate the WBS and Gantt chart using your chosen PMIS Software system.
Speak to your trainer about using a PMIS system and how to submit for marking.
2. Develop a Cost Management Plan using:
• Appendix 1 – Conference Plan Brief
• Project Cost Management Plan template in the Assessment Templates document.
Include the following in your Cost Management Plan:
• Level of accuracy
o What level of accuracy are you going to follow through your costs?
o Is there a 10% float either side?
• Units of measure
o What units of measure are you using regarding costs?
• Control thresholds
o What control methods are you going to put in place?
• Process management
• Estimating costs
• Developing budget
o Which approach will you use; a Top down or Bottom up method?
o Include a flow chart to show a Top down or Bottom up budget approach.
• Updating monitoring and controlling
• Funding sources
3. Estimate the resource requirements and all major project costs using the Cost Management Plan template or your chosen PMIS software. Estimate costs using a Three Point Estimate technique and provide either a Top Down or Bottom up approach for developing the budget according to the organisation’s policy and procedures.
Note: When estimating costs you will find some information in Appendix 1 – Conference Plan Brief. For all other cost estimates, you will need to source information online.
4. Complete the budget of estimated costs in your Cost Management plan before participating in the upcoming project team meeting. Take a copy of your budget on a device or print a copy to discuss with project team members.
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Project Team Meeting
5. You will be participating in a project team meeting to discuss project costs and budget. Your trainer will assist you to schedule the meeting with other class members who represent the project team in a simulated work environment.
a. Take a copy of your draft Cost Management Plan and budget to the meeting on a device or a printed copy.
b. You will need to carefully explain each part of your project costs, as well as your proposed project budget and be prepared to answer questions from project team members.
c. Take notes of constructive input from team members and add any changes to update your plan.
Observation Assessment: During the meeting, you will need to demonstrate a range of communication skills including active listening, effective questioning, giving feedback and non-verbal communication when you are discussing project costs and budget with team members. Your assessor will be looking to ensure you use these skills while observing your performance according to observation checklist on Moodle.
6. Write an email to the Senior Manager and ask for feedback on your Cost Management Plan and budget. Use the Email template in the assessment templates document and follow these steps.
• Record your name and email address in the From field
• Record the senior manager’s full name and email addresses in the To field
• Begin with a greeting (for example, Hi or Hello)
• Include the date you write the email in the Sent field
• Provide a statement to indicate that the Cost Management Plan has been finalised, and provide an outline of the expected costs of the conference.
• Sign off at the end and include your name (for example Kind regards, Sincerely or Best regards)
Tip: Check your email and make sure it is complete and professionally written.
o Use the correct project terms
o Do not use slang, inappropriate or discriminatory language.
Note: Your email will not be answered but forms part of the assessment.
7. Ask your trainer, who represents the Senior Manager to check and approve your Cost Management Plan and budget, and provide you with feedback to incorporate into the plan.
8. Once approved, update your Cost Management Plan and complete the document development table in the template using a document version control system. (see link below) You will continue to update your CMP in Part 2. Save a copy to an online file sharing platform and save the link to the files.
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To learn how to version control, upload and share documents:
• How to document version control
• How to upload and Share a File with Dropbox – Dropbox Tutorial
• Box.com 5 Skills to Get Started Video Tutorial
Important: Check you have completed the following for Part 1 using the templates in the assessment templates document.
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