3.

Activity Cost Estimates and Cost Performance Baseline

The following section describes the assumptions, constraints, and data used to determine the activity cost estimates and cost performance baseline.

3.3.1 Assumptions
The project management team is operating under the assumption that the primary stakeholders will meet all necessary resource and cost requirements to for the successful completion of this project. Under this assumption the team has chosen to pursue the highest caliber of candidates for this project and in order to attract such talent will be offering the upper quartile of market hourly rates. Thus, the final costs associated with this project are a product of data obtained from external sources and expert judgment.

3.3.2 Constraints
The primary constraints with the activity cost estimates and cost performance baseline on this project is the strength of external sources, expert judgment, and parametric estimation. Because the project team does not have historical data with which to make an accurate estimation of cost and hours we must use external sources for salary requirements and hourly rates to determine costs and a combination of expert judgment and parametric estimation for duration. Thus, this dependency may lead to inaccurate results and a wide range of possible outcomes.

3.3.3 Risk Management

The project management team believes that for this project it was necessary to apply a 25% cushion to the budget. Since the database is being integrated from a manual version onto a virtual platform, we believe there are many risks associated with this process.

3.3.4 Total Cost by Milestone

Total costs by milestone are: (hourly rates per resource hours per resource) = Cost Risk Adjustment (.25) = Final Cost Figure 3.3.4 (below) represents the costs and duration in days associated with each milestone.
Figure 3.3.4

Milestone # 1 2 3 4

Milestone Name Project Management Requirement Analysis Procurement Iteration N

Risk Adjusted Cost (A*.25 + A) $67,681.40 $31,500.00 $57,800.00 $906,600.00

Duration (days) 253 20 30 365

5 6 7 8

Acceptance Deployment Training Maintenance and Support

$76,000.00 $154,400.00 $36,000.00 $24,000.00 $1,353,981.63

40 60 20 40 550

3.3.5 Basis for Estimations

The following subsection describes the estimation of Total Hours and Cost

Estimation of Total Hours

In order to determine an adequate duration (in hours) for the project for cost purposes, the team came up with a parametric estimation template. Each requirement was grouped under a use case name and its number of screens were multiplied by their complexity. Once this number was determined the team came up with a weight scale to multiple with the previous number in order to create a wider range of values. The weight scale was broken up as follows, for vales of Number of Screens Complexity between: 1-4 was weighted a 1, 5 7 was weighted a 3, 8 9 was weighted a 4, 10 15 was weighted a 5, 16 20 was weighted a 6, all values > 20 were weighted a 7. The final value 2276 was finally multiplied by the average number of hours in a work day. See Figure 3.3.4.1.

Figure 3.3.5.1 Use Case Name Manage Search Manage Reports Manage Data Manage Conformance Manage hardware Manage Security Manage growth Manage compatibility Manage Project Manage Operating System Manage Database Manage Vendor Manage Support manage learner Manage Rollover Manage Tables Use Case Name Manage Objects Manage Terms Manage Disciplines Manage Learning Materials Manage Users Manage Content Manage Schedule Manage Calendar Manage Group Manage Email manage instructor manage review

(# of Screens*Complexity) 8 4 10 11 6 6 6 3 1 4 6 1 8 6 17 4 (# of Screens*Complexity) 12 1 1 44 21 14 17 9 46 6 11 5

weight 4 1 5 5 3 3 3 1 1 3 3 1 4 3 6 1 weight 6 1 1 7 7 6 6 3 7 3 6 3 60 1 1 308 147 70 85 27 322 18 55 15 32 4 50 55 24 24 24 3 1 12 18 1 32 18 85 4 387

manage assignments Manage Roles Manage Program Manage interfaces Manage communication Average Work Hours in Day

1 1 6 2 1 8.001858524 Total

1 1 3 1 1

1 1 18 2 1 757 2276 18212.23

Estimation of Total Cost

The project management team used external sources to estimate the standard hourly rate each resource should be paid. Each standard hourly rate chosen was at the higher end of the salary spectrum, to assure quality candidates be available, and was approved by consensus within the project management team. Total cost was determined by the following equation: (hourly rates per resource hours per resource) = Cost Risk Adjustment (.25) = Final Cost The following Figure (3.3.5.2) shows the Standard Hourly Rate and Cost for this project.
Figure 3.3.5.2

Resource Name

Std. Rate

Accountant Attorney Business Analyst 1 Business Analyst 2 Database Administrator 1 Database Administrator 2 Human Resource Manager IT Operations Manager Procurement Manager Project Manager1 Project Manager2 Quality Assurance Quality Assurance 2 Risk Analyst Software Architect
Software Configuration Analyst Software Developer 1 Software Developer 2

Software Developer 3 Software Developer 4 Software Development Manager Software Quality Assurance Manager Software Quality Engineer

$50.00 $110.00 $90.00 $90.00 $60.00 $60.00 $60.00 $80.00 $75.00 $110.00 $110.00 $20.00 $20.00 $45.00 $140.00 $50.00 $60.00 $60.00 $60.00 $60.00 $90.00 $70.00 $50.00

Cost $9,150.00 $22,000.00 $36,000.00 $9,000.00 $98,700.00 $68,400.00 $12,000.00 $36,800.00 $6,750.00 $42,601.63 $40,480.00 $16,000.00 $16,000.00 $27,000.00 $52,500.00 $30,000.00 $111,000.00 $111,000.00 $72,000.00 $72,000.00 $102,600.00 $28,000.00 $50,000.00

Software Quality Engineer 2 System Administrator Technical Writer Technology Development Manager Trainer1 Trainer2 Web Designer Total Cost

$50.00 $90.00 $60.00 $90.00 $60.00 $60.00 $80.00

$50,000.00 $36,000.00 $24,000.00 $54,000.00 $12,000.00 $12,000.00 $96,000.00 $1,353,981.63

3.3.6 Resources by Month

The following subsection describes the hours per resource per month needed for the completion of this project.
Figure 3.3.6 Resource Name Accountant Attorney Business Analyst 1 Business Analyst 2 Database Administrator 1 Database Administrator 2 Human Resource Manager IT Operations Manager Procurement Manager Project Manager1 Project Manager2 Quality Assurance Quality Assurance 2 Risk Analyst Software Architect Software Configuration Analyst Software Developer 1 Software Developer 2 Software Developer 3 Software Developer 4 Software Development Manager Software Quality Assurance Manager Software Quality Engineer Software Quality Engineer 2 System Administrator M1 0 0 0 0 0 0 0 0 0 87.43 72 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M2 40 0 68 80 0 0 0 0 0 37.6 37.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M3 73.92 22.78 34.78 0 0 0 0 0 72 32.8 32.8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M4 32.48 137.22 166.3 0 0 0 0 0 0 17.6 17.6 0 0 38.78 32.96 0 9.7 9.7 0 0 38.78 0 0 0 0 M5 0 0 50.92 0 0 0 0 0 0 16.8 16.8 0 0 168 142.12 0 30.3 30.3 0 0 161.22 0 0 0 0 M6 0 0 0 0 0 0 0 0 0 18.4 18.4 0 0 184 124.92 0 0 0 0 0 0 0 0 0 0 M7 0 0 0 0 0 0 0 0 0 16.8 16.8 0 0 89.22 0 0 0 0 0 0 158.78 0 0 0 0 M8 0 0 0 0 27.4 0 0 0 0 17.6 17.6 0 0 0 0 54.78 0 0 0 0 159.57 0 0 0 0 M9 0 0 0 0 72.6 0 0 0 0 18.4 18.4 0 0 0 0 184 0 0 0 0 128.8 0 0 0 0 M10 0 0 0 0 0 0 0 0 0 16 16 0 0 0 0 160 0 0 0 0 112 0 0 0 0 M11 0 0 0 0 51.4 0 0 0 0 18.4 18.4 102.78 102.78 0 0 81.22 102.78 102.78 102.78 102.78 152.85 0 102.78 102.78 0

Technical Writer Technology Development Manager Trainer1 Trainer2 Web Designer

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

Resource Name Accountant Attorney Business Analyst 1 Business Analyst 2 Database Administrator 1 Database Administrator 2 Human Resource Manager IT Operations Manager Procurement Manager Project Manager1 Project Manager2 Quality Assurance Quality Assurance 2 Risk Analyst Software Architect Software Configuration Analyst Software Developer 1 Software Developer 2 Software Developer 3 Software Developer 4 Software Development Manager Software Quality Assurance Manager Software Quality Engineer Software Quality Engineer 2 System Administrator Technical Writer Technology Development Manager Trainer1 Trainer2 Web Designer

M12 0 0 0 0 88 0 0 0 0 12 12 176 176 0 0 0 176 176 176 176 0 0 176 176 0 0 0 0 0 103

M13 0 0 0 0 84 0 0 0 0 0 0 168 168 0 0 0 168 168 168 168 0 0 168 168 0 0 0 0 0 176

M14 0 0 0 0 92 0 0 0 0 0 0 33.22 33.22 0 0 0 184 184 184 184 0 0 33.22 33.22 0 0 0 0 0 168

M15 0 0 0 0 80 0 0 0 0 0 0 0 0 0 0 0 160 160 160 160 0 0 0 0 0 0 0 0 0 184

M16 0 0 0 0 84 0 0 0 0 0 0 0 0 0 0 0 168 168 168 168 0 0 0 0 0 0 0 0 0 160

M17 0 0 0 0 123 122.4 0 48 0 0 0 0 0 0 0 0 176 176 1.22 1.22 0 0 0 0 0 0 174.8 0 0 168

M18 0 0 0 0 37.7 129 0 0 0 0 0 0 0 0 0 0 184 184 0 0 0 0 0 0 0 0 184 0 0 1.22

M19 0 0 0 0 0 84.85 0 0 0 0 0 38.78 38.78 0 0 0 121.2 121.2 0 0 0 38.8 38.78 38.78 0 38.78 121.2 0 0 0

M20 0 0 0 0 0 0 0 0 0 0 0 121.2 121.2 0 0 0 0 0 0 0 0 184 184 184 0 184 0 0 0 0

M21 0 0 0 0 78.78 78.78 0 78.78 0 0 0 0 0 0 0 0 0 0 0 0 0 97.2 97.22 97.22 78.78 97.22 0 0 0 0

M22 0 0 0 0 168 168 0 168 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 168 0 0 0 0 0

M23 0 0 0 0 184 184 0 73.22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 73.22 0 0 0 0 0

M24 0 0 0 0 145.22 145.22 22.78 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22.78 22.78 0

M25 0 0 0 0 0 0 137.22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 137.22 137.22 0

3.3.7 Budget Request by Month

The following subsection describes the risk adjusted budget request by month.
Figure 3.3.7 Risk Adjusted Cost $21,921.63 M5 $67,351.75 M9 $28,270.38 M13 $103,700.00 M17 $81,443.25 M21 $58,961.00 M25 $30,874.50 M22 $60,900.00 M18 $60,905.75 M23 $43,159.25 M14 $84,713.50 M19 $51,274.00 M24 $26,908.50 M10 $27,000.00 M15 $72,400.00 M20 $58,961.00 M6 $37,271.00 M11 $80,007.38 M16 $72,700.00 Risk Adjusted Cost $29,490.00 M7 $27,501.38 M12 $103,778.00 Risk Adjusted Cost $27,435.00 M8 $28,270.38 Risk Adjusted Cost $58,213.63

M1

M2

M3

M4