Budget Analysis and Cost Estimating


For this assessment, choose either Option A or Option B. You do not
need to do both. Both options will be graded using the same scoring

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Option A: Project Revive LLC is a consulting firm
of highly charged and accomplished project managers whose main stream of
revenue comes from managing the turnaround of failing projects. As a
consultant with Project Revive LLC, you will study, analyze, and manage a
failed project from NearlyFree.com. NearlyFree.com is a fictitious
company and the project documents for this project scenario are located
below. The NearlyFree.com project was originally scoped to develop and
deploy an automated web-based training system for new employees to
reduce the workload and cut down personnel resources required to
complete the new employee orientation (NEO) training.

Use the NearlyFree.com project work breakdown structure to help
identify deliverables and processes that need resources. It is important
to know historical information regarding what types of resources were
required for similar work. You can do research using the Internet to
find similar projects. You will find the project justification and
objectives in the project scope statement, which is listed among the
resources below.

Option A Resources (use these artifacts for completing the activities in this course): I have attached files.

Your Role

For both Option A or B, you are the project manager.


Microsoft Project is the recommended software tool for this course
due to its wide industry acceptance and its use in many project
management professional roles. To make this easier, you have the ability
to download and install your own version of MS Project for use in this
course. See the Software Preparation and Technology Access activity for
more information.

Practice using MS Project in this course will prepare you for future
professional PM roles and responsibilities; please use MS Project for
those tasks supported by MS Project. If you have access to other tools
such as MS Visio, MS PowerPoint, MS Word, or other project management
software that you believe may still meet the requirements of this
course, please discuss your selected alternative with faculty.

Use the PMBOK® Guide as the model for developing the deliverables.

Part 1: Budget Analysis Report

Deliverable: Create a budget analysis report of the current failed project.

Use the MS Project functionality (or other, approved software of your choice) to:

  • Display project summary information and report.
  • Create project reports.
  • Export project plan cost data into Excel.
  • Develop an analysis report including the following:
    • Analyze the current financial state using cost estimating techniques.
    • Estimate costs of individual schedule activities or work packages by reviewing WBS and associated project costs.
    • Identify failure points that occurred throughout the project.
Part 2: Cost Estimating Forecast Analysis

Deliverable: Create a project estimation report for the turnaround project.

At this point in the process you have been asked to report back to
NearlyFree.com on your findings and recommendations with respect to
project costs. Review the information you gathered and prepare a report
for your client. This will be a what-if scenario or plan that you will
propose to NearlyFree.com management for the project turnaround to
succeed. In the report, do the following:

  • Copy the original NEO project schedule baseline and create a custom table to add your changes and modifications.
  • Display your proposed cost estimates and newly established cost baseline for the turnaround project, based on the Project Schedule [MPP].

As part of this report, address the following topics or questions, and where necessary, define assumptions you made:

  • Total cost of ownership—what it means to the project and to the
    business, how it is calculated, its role in the failed project, and your
    estimates for the turnaround project.
  • Return on investment—what it means to the project and to the
    business, how it is calculated, and your estimates for the turnaround
  • Project budget—an analysis of the failed project budget,
    techniques used to prepare your proposed project budget, and the
    proposed project budget.

    • Develop a new project budget with a more detailed assessment of the resources.
      • Establish a total cost baseline for measuring project performance.
  • Explain and justify the cost estimating techniques used.
  • Estimate contingency reserves.
Applicable Microsoft Project Functions
  • Create a custom table.
  • Updating a project plan.
  • Set a baseline.
  • Save an interim project plan.
  • Display project summary information and report.
  • Export project plan cost data into Excel.
  • Create Project “Current State” Analysis report.


Use the software of your choice to develop the deliverables for this assessment.

This assessment has two parts and two deliverables:

  1. Develop a comprehensive “current state” budget analysis report.
  2. Develop a comprehensive cost estimating forecasting analysis report.

Deliverable Format

  • References: There is no set number of references required for this
    assessment. Use scholarly or academic sources where applicable.
  • Format:
    • Use Microsoft Project to obtain project costs information.
    • Use your choice of MS Word, MS Visio, or MS PowerPoint to develop the comprehensive analyses.
    • These analyses are professional documents and should therefore follow the corresponding Academic and Professional Document Guidelines [PDF], including single-spaced paragraphs.
    • Use APA style and format for references and in-text citations.


By successfully completing this assessment, you will demonstrate
your proficiency in the following course competencies through
corresponding scoring guide criteria.

  • Competency 1: Apply project cost tools and techniques to ensure project success.
    • Analyze cost-estimating techniques.
    • Estimate costs of individual schedule activities or work packages.
    • Estimate the total cost of ownership and explain how it applies to the project.
    • Estimate return on investment and explain the calculation.
    • Develop new project budget.
    • Estimate contingency reserves.
  • Competency 4: Communicate effectively in a professional manner consistent with the standards of project management.
    • Explain cost-estimating techniques used.