Project Budget (Cost Management)

1. The purpose of this project is to increase our response time and

support to our customers. Remote accessing will allow us an
opportunity to repair or troubleshoot problems before they
cause the customer downtime for an extended amount of time.
The budget that was created for this project was created using
bottom up budgeting. The concern is that there will be cost
associated with this project that is better visible from the work
breakdown structure. This may alter the final budget of the
project because ever manager is responsible for his or her own
budget and it gets brought together with ever other
departments budget.

2. The Original Budget

Estimated Labor

40,000

Estimated Materials

20,000

Estimated Contractors

14,000

Estimated Equipment and Facilities

60,000

Estimated Travel

22,000
Total Estimated Cost

156,000

The Actual Budget

Estimated Labor

54,000

Estimated Materials

18,000

Estimated Contractors

18,000

Estimated Equipment and Facilities

60,000

Estimated Travel

26,000
Total Estimated Cost

176,000

3. The actual budget came in $20,000 more than the

original budget due to some unforeseen additional labor
needed and additional contractors. We had some
customer locations that needed more time to upgrade the
system and we had some training issues with customers
that required extra time. We also saw some systems not
take the upgrade automatically so it required a technician
to go to the location for a manual upgrade. Because there
was extra labor and contractors needed the amount of
travel went up. We do carry a budget contingency plan to
cover unforeseen expenses. The amount we were
allocated to cover is $25,000. It was necessary to use
some of those funds to cover our extra expenses.

Resource Management

Based on the amount of resources required to complete the project

enough resources are assigned as per the project plan. The
resources are distributed evenly in the project. In order to meet the
timelines in few activities the resources are used in parallel. Currently
the project is not over allocated. In case of over allocation, the
duration against the activities will increase.
In order to motivate the team below steps can be taken:
Listen to team and help to solve the issues of the teams
Introduce rewards and recognitions
Assign tasks as per the resource availability and capability
Sit with team and encourage towards project timelines
In order to handle team conflicts some of the steps that need to be
taken are:
Stop and cool down so that the team is no longer upset
Have everyone talk and listen to each other and have every partys
issue address
As a team come up with solutions to the issues
Define what is acceptable behavior and unacceptable behavior
Create a plan that will address the issue and stop future conflict

The structure of the project is pure project because the team is

involved in project completion and resources are taken from various
teams to complete the project. In pure project structure the manager
will have complete control of the project and complete control to
make decisions in a short period of time to solve any problems.