BSBPMG533 Manage Project Cost

§  Determining project costs

§  Monitoring and controlling project costs

§  Completing cost-management processes

The workplace assessment is divided into ten tasks:

Part I. Project Planning

          1.1             Identify Resource Requirements

          1.2             Develop the Project Budget

          1.3             Develop the Cost Management Plan

Part II. Project Implementation and Monitoring

          2.1             Monitor Actual Project Expenditure Against Budget

          2.2             Identify Project Cost Variations

          2.3             Maintain Financial Objectives

          2.4             Prepare Financial Reports

Part III. Project Closure

          3.1             Conduct Project Financial Closure Activities

          3.2             Review Project Outcomes

          3.3             Prepare Lessons Learned Document

These tasks must be done in the context of a project which you are currently a part of.

E.g. You are the project coordinator or project manager in this project.

Each task comes with a set of instructions. You are to follow and perform these instructions while being observed by the assessor and submit any required documentation.

Before starting this assessment, your assessor will also discuss with you these tasks as well as instructions and guidance for satisfactorily completing them. They will also organise the resources required for this assessment (listed below).

§  Complete the tasks within the time allowed, as scheduled in-class roll.

§  Determine project costs.

§  Monitor and control project costs.

§  Complete cost-management processes.

Resources required for assessment:

To complete this assessment, you will need access to the following:

§  Workplace or a similar environment that will provide you access to:

o   Workplace project

o   Project stakeholders (both external and internal)

o   Policies and procedures relevant to:

§  Determining project costs

§  Monitoring and controlling project costs

§  Completing cost-management processes

o   Opportunities to complete the workplace assessment tasks within this project.

o   Project documents to be used as a reference to produce the documents required for this assessment, including but not limited to

§  The project management plan

§  Work Breakdown Structure (WBS)

§  The project’s approved human resource management plan, approved project planning software, organisational charts, employee records, etc., to help you in your project cost estimation.

§  Project information and data relevant to project cost management, including but not limited to:

·         Issues log

·         Project cost-related data and information

·         Performance reports

§  Documenting resource requirements and cost estimation

§  Developing the project budget

§  Developing the cost management plan

§  Conducting cost variance analyses

§  Financial reporting

§  Reviewing project outcomes

§  Documenting the lessons learned

§  Meeting minutes

You are also required to estimate costs based on resource requirements identified for each task in the WBS. This may be done separately from your meeting with the stakeholders.

Use your organisation’s template for documenting resource requirements for project tasks, or you may use the Generic WBS & Resource Cost Estimation template provided along with this workbook.

Refer to project documents such as the project’s approved human resource management plan, approved project planning software, organisational charts, employee records, etc., to help you in your project cost estimation.

You will be assessed on:

§  Practical knowledge relevant to resource requirements and costs for a project.

§  Practical skills relevant to identifying resource requirements in consultation with project stakeholders.

§  Practical skills relevant to estimating project costs.

Before starting this task, review the following forms:

§  Workplace Assessment Task 1.1 – Assessor’s Checklist

This form lists the criteria your documentation of resource requirements and cost estimation must address to complete this task satisfactorily.

§  Workplace Assessment Task 1.1 – Observation Form

This form lists all the practical skills you need to demonstrate while completing this task.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to identifying resource requirements and estimating costs and discuss these policies and procedures with you.

§  Discuss with you the requirements listed in the Assessor’s Checklist and the Observation Form prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit the following to your assessor:

§  The documentation of resource requirements and cost estimation that you completed or the completed Generic WBS & Resource Cost Estimation template.

§  The WBS that you accessed to complete this task.

§  Copies of other project documents you used as a reference to complete this task.

Use your organisation’s template for developing project budgets, or you may use the Generic Project Budget Approval template provided along with this workbook.

You will be assessed on:

§  Practical knowledge relevant to developing project budget

§  Practical skills relevant to developing project budget

Before starting this task, review the Workplace Assessment Task 1.2 – Assessor’s Checklist provided along with this workbook. This form lists the criteria your project budget submission must address to complete this task satisfactorily.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to developing the project budget and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit a copy of the completed project budget to your assessor.

Secure a copy of your roles and responsibilities in relation to cost management planning as you will submit this as part of this assessment.

Use your organisation’s template for developing a cost management plan, or you may use the Generic Cost Management Plan template provided along with this workbook.

You will be assessed on:

§  Practical knowledge relevant to developing a cost-management plan

§  Practical skills relevant to developing a cost-management plan

Before starting this task, review the Workplace Assessment Task 1.3 – Assessor’s Checklist provided along with this workbook. This form lists the criteria your cost-management plan submission must address to complete this task satisfactorily.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to developing a cost management plan and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit a copy of the following to your assessor:

§  Completed cost-management plan

§  Copy of your roles and responsibilities in relation to cost management planning.

The processes and procedures you will implement for this task will depend on the requirements as well as the cost management plan established for the project you are undertaking. They may include but are not limited to a weekly review of the project’s performance, e.g. reviewing hours spent on the project, reviewing project progress against schedule, tracking expenses and project performance using spreadsheets or project management software, etc.

Secure documentation from your implementation of these processes as you will submit them as part of this assessment. The documentation you submit may include but are not limited to copies of spreadsheets itemising expenses against budget, project status reports which document the outcomes of your monitoring of the project expenditure, copies of cost forecasts and work performance reports you created as part of your completion of this task.

You will be assessed on:

§  Practical knowledge of financial-management processes and procedures for monitoring actual expenditure against budget

§  Practical skills relevant to implementing these processes and procedures.

Before starting this task, review the Workplace Assessment Task 2.1 – Assessor’s Checklist provided along with this workbook. This form lists the criteria your documentation submissions must address to complete this task satisfactorily.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to monitoring project expenditure, for your reference; and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

§  Copies of documentation of your implementation of the two financial management processes and procedures

§  Copy or excerpt of the project cost management plan/project management plan where these processes and procedures are outlined.

Use your organisation’s template for documenting project status reviews, or you may use the Generic Variance Analysis Report Template provided along with this workbook.

You will be assessed on:

§  Practical knowledge of project cost variations.

§  Practical skills relevant to identifying project cost variations.

Before starting this task, review the Workplace Assessment Task 2.2 – Assessor’s Checklist provided along with this workbook. This form lists all the requirements your submission must meet for satisfactory performance.

Your assessor will also:

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit a copy of your project cost variance analysis report to your assessor.

Implementing actions include but are not limited to regularly reviewing the project progress and addressing problems and issues causing project delays and blowouts, conducting performance reviews with project team members, implementing a reasonable time limit for project meetings, etc.

Monitoring actions may include but are not limited to conducting project team meetings to ensure issues and problems causing project delays, and blowouts are being addressed, reviewing the performance review schedule and ensuring that reviews are being done on a timely manner, reviewing hours spent on project meetings, etc.

Secure documentation from your implementation and monitoring as you will submit them as part of this assessment. The documentation you submit may include but are not limited to copies of minutes from project team meetings, completed performance reviews showing you have addressed issues and problems that may lead to project delays and blowouts, email correspondences, etc.

You will be assessed on:

§  Practical knowledge of agreed actions to help the project maintain its financial objectives.

§  Practical skills relevant to implementing and monitoring these actions.

Before starting this task, review the following the Workplace Assessment Task 2.3 – Observation Form. This form lists all the practical skills you need to demonstrate while completing this workplace assessment.

Your assessor will also:

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Observation Form prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit the following to your assessor:

§  Documentation of your implementation of actions to ensure the project maintains its financial objectives.

§  Documentation of your monitoring of actions to ensure the project maintains its financial objectives.

§  Copy of your project cost management plan/project management plan where these actions are outlined.

Submit these financial reports to relevant project stakeholders and have them complete a Third-Party Report Form.

Use your organisation’s template for financial reports.

You will be assessed on:

§  Practical knowledge relevant to financial reporting.

§  Practical skills relevant to preparing financial reports.

Before starting this task, review the Workplace Assessment Task 2.4 – Assessor’s Checklist provided along with this workbook. This form lists the criteria your financial report submission must address to complete this task satisfactorily.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to preparing financial reports and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit the following to your assessor:

§  Two financial reports you completed

§  Third-Party Report Forms completed by the project stakeholders

Project financial closure activities you will conduct will depend on the requirements of the project as well as the scope of your role and responsibility as the project manager of the project.

These activities may include but are not limited to sending an official communication to all vendors, contractors, and suppliers the deadline for the completion of all financial transactions and closing of financial accounts, verifying acceptance criteria in the project statement of work has been met before processing payments to vendors and contractors, closing financial accounts according to the organisation’s policies and procedures.

Secure documentation from these two activities as you will be submitting them as part of this assessment. The documentation you submit may include email correspondence with vendors, suppliers, contractors, checklists completed to verify acceptance criteria have been met, etc.

You will be assessed on:

§  Practical knowledge of project financial closure activities.

§  Practical skills relevant to conducting project financial closure activities.

Before starting this task, review the Workplace Assessment Task 3.1 – Observation Form provided along with this workbook. This form lists all the practical skills you need to demonstrate while completing this task.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to conducting project financial closure activities, for your reference; and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Observation Form prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit copies of documentation from the two project financial closure activities you have conducted to your assessor.

Record the outcomes of the review using your organisation’s template for recording project status reviews, or you may use the Generic Project Outcomes Review Meeting template provided along with this workbook.

During your review of project documents, refer to project documents such as project cost management plans, issues log, project cost-related data and information, performance reports, financial reports, change requests related to project costs and budget.

You will be assessed on:

§  Practical knowledge of effective communication methods used for reviewing project outcomes

§  Practical skills in relevant to facilitating the review of project outcomes in relation to cost management

Before starting this task, review the following the Workplace Assessment Task 3.1 – Observation Form. This form lists all the practical skills you need to demonstrate while completing this workplace assessment.

Your assessor will also:

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the practical skills listed in the Observation Form prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit the following to your assessor:

§  Project Status Review Meeting Minutes

§  Copies of documents you reviewed during this review

You will be assessed on:

§  Practical knowledge of cost management issues and improvements to address them.

§  Practical skills relevant to identifying and documenting cost management issues.

§  Practical skills relevant to recommending improvements to cost management issues.

Use your organisation’s template for preparing Lessons Learned for projects, or you may use the Generic Lessons Learned template provided along with this workbook.

Before starting this task, review the Workplace Assessment Task 3.2 – Assessor’s Checklist provided along with this workbook. This form lists the criteria your submission must address to complete this task satisfactorily.

Your assessor will also:

§  Provide you with a copy of policies and procedures relevant to documenting lessons learned in cost management, for your reference; and discuss these policies and procedures with you.

§  Organise workplace resources required for you to complete this assessment.

§  Discuss with you the requirements listed in the Assessor’s Checklist prior to the assessment.

§  Address your queries and concerns regarding this task.

After completing this task, submit the lessons learned document you prepared to your assessor.