This assignment consists of 2 parts: questions about budgetestimation and developing a budget.

Part 1 Questions (10points)

Provide responses to the following questions

1. Youare providing a review of contractor bids for a component of yourupcoming project. What can be done to determine whether ornot a vendor’s bid is reasonable?

2.Describe the conditions for which parametric,analogous and bottom up estimation techniques work best, andprovide 2 examples in support of each method.

3. Whyis a cost management plan important? How does the planbenefit the project manager?

Part 2 Budget Estimating (30points)

Using the same scenario from the previous unit on scheduling,create a time-phased budget for the following project.Prepare a figure like Exhibit 10.9, CPT 4e, that illustrates thedaily and cumulative costs for the resource-leveled project.

Assume the following hourly rates:

Alcides $45 / hr.

Joan $50 / hr.

Activity ID	Activity	Immediate Predecessor	Duration in days	Resource	Work Hours per Day
A	Evaluate freezers		2	Alcides	6
B	Chart temperatures		6	Joan	4
C	Review service record		2	Alcides
D	Consult with HVAC engineer	A, B, C	3	Alcides
E	Develop construction plan	D	10	Joan
F	Complete IC assignment	E	2	Alcides
G	Complete ROI analysis	E	5	Joan
H	Conduct regulatory review	E	4	Joan
I	Obtain construction approval	F, G, H	2	Alcides

Part 3 Budget Estimating(50 points)

You are the project manager for a process improvement project forCompany XYZ. Prepare a figure like Exhibit 10.9that illustrates the weekly and cumulative costs for theresource-leveled project.

Hint: To accomplish this exercise, you’ll need to create aproject schedule in MS Excel (or by hand), create resourceassignments, assign costs to each resource, and assign theresources to each task. Some resource leveling will berequired.

In this project, you have 3 employees: Ann, Becky andClive. Each person is limited to the amount of timeallocated to your project. Ann and Becky are available 30hours/week; Clive is available 20 hours/week. There hourlyrates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.

WBS	Activity	Immediate Predecessor	Estimated Duration in weeks	Resource
1	Process Improvement Project
1.1	Operational definition
1.1.1	Research literature		3	Becky
1.1.2	Identify and define terms	1.1.1	1	Ann
1.1.3	Obtain approval of definition	1.1.2	2	Clive
1.2	Target Selection
1.2.1	Solicit partners for pilot		2	Ann
1.2.2	Hold brainstorming meeting	1.2.1	2	Becky
1.2.3	Identify characteristics of targets	1.2.2, 1.3.1	1	Ann
1.2.4	Obtain approval of partners	1.2.3, 1.1.2, 1.3.4	1	Clive
1.3	Question set
1.3.1	Identify process group members		2	Clive
1.3.2	Develop question set	1.2.3	4	Ann
1.3.3	Prototype and validate question set	1.3.2	3	Becky
1.3.4	Add partners	1.3.1, 1.2.1	3	Becky
1.4	Pilot process
1.4.1	Schedule with target audience	1.2.4	2	Becky
1.4.2	Conduct beta test	1.3.4, 1.2.4	2	Clive
1.4.3	Process feedback from target audience	1.4.2	2	Ann
1.4.4	Conduct pilot	1.4.3	2	Clive
1.4.5	Analyze results	1.4.4	2	Clive

Mechanics (10 points)

Part 1 responses should be presented in aquestion-response format. Use Arial font with 11 point.There is no word limit.

Your Instructor will use Turn-it-in to ensure your paper isauthentic work. To avoid plagiarism, see the coursehome page for more information and use the Purdue Online WritingLab to learn how to paraphrase, summarize and cite the referencesyou use in all academic writing assignments.

Parts 2 and 3 Use MS Excel (MS Project is not acceptable)to create the budget estimate and present it similar to Exhibit10.9. Show intermediate steps (schedule, resource scheduleassignments, resource-leveled schedule and any other elementsneeded to create the time-phased budget estimate.

It is expected that each part of this assignment have excellentmechanics (presentation, grammar and spelling) and exhibit thequality of work capable of a group of graduate students andworking professionals. All sections of the document submittedmust be readable at 100% magnification.

Your Instructor will use Turn-it-in to ensure your paper isauthentic work. To avoid plagiarism, see the coursehome page for more information and use the Purdue Online WritingLab to learn how to paraphrase, summarize and cite the referencesyou use in all academic writing assignments.