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Cost Management for Delivery System Project

The document outlines a project plan for developing a Delivery Management System for a logistics company, detailing required resources, estimated costs for various activities, and cost baselines. It includes personnel, tools, hardware, and software needed, along with a breakdown of costs for requirement gathering, UI/UX design, development, testing, deployment, and project management. A control system for monitoring costs and managing changes is also proposed, incorporating weekly reviews and a change control board.

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Zeenat Mustafa
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12 views2 pages

Cost Management for Delivery System Project

The document outlines a project plan for developing a Delivery Management System for a logistics company, detailing required resources, estimated costs for various activities, and cost baselines. It includes personnel, tools, hardware, and software needed, along with a breakdown of costs for requirement gathering, UI/UX design, development, testing, deployment, and project management. A control system for monitoring costs and managing changes is also proposed, incorporating weekly reviews and a change control board.

Uploaded by

Zeenat Mustafa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assignment # 01

Cs615
Bc210423265
Scenario:
Your team has been hired by a mid-sized logistics company to develop a custom Deli
very Management System. The project must be completed in 6 months, and your team
includes developers, testers, a UI/UX designer, and a project manager. The company e
xpects transparent and efficient cost management throughout the project.
Task:
As the cost manager for this project, provide your point of view on the following:
1. Identify the resources required for the project:
Consider personnel, tools, hardware, and software.

Category Resources
Personnel Project Manager, UI/UX Designer, Backend Developers, Frontend
Developer, QA/Test Engineers, DevOps Engineer
Tools Jira, Trello, Slack, MS Teams, Git, GitHub, Google Workspace
Hardware High-spec Laptops, External SSDs, Internet Connection
Software Figma, Adobe XD, VS Code, Selenium, Postman, Docker, Jenkins,
AWS/GCP, MySQL/MongoDB

2. Estimate the cost of each activity:


Break down the major tasks (e.g., requirement gathering, UI design, developm
ent, testing, deployment) and assign cost estimates.
Activity Estimated Estimated Remarks
Duration Cost (Rs.)
Requirement 1 week $5,000 Includes
Gathering meetings,
documentation,
tools
UI/UX Design 3 weeks $12,000 Design
mockups, user
flows,
interactive
prototypes
Development 8 weeks $80,000 3 devs × Rs.
100K/month × 2
months
Deployment 4 weeks $15,000 Manual +
& Training automated
testing
Project 24 $24,000 PM overseeing
Management all phases
($1,000/week)
Contingency — $15,600 Buffer for
changes,
rework, price
hikes
Total 6 months $161,600
Estimated
cost

3. Set cost baselines for each activity:


Define expected spending limits and justify them with reasoning.
Activity Baseline Cost Tolerence Remarks
(USD) (±%)
Requirement $5,000 5% Fixed scope,
Gathering minimal changes
expected
UI/UX Design $12,000 10% Some iterations
likely based on
feedback
Development $80,000 15% Highest risk of
scope creep
Testing $80,000 10% Defect fixes may
increase costs
Deployment $15,000 5% Fixed cloud costs,
minimal variation
Project $24,000 5% Fixed monthly
Management costs

4. Implement a control system for cost changes:


Explain how you'll monitor costs and manage changes without exceeding the b
udget.

Monitoring mechanism:
 Weekly budget Reviews: Compare actual vs. Planned spending using project management tools
( Jira + Excel).
 Earned Value Management: Track Planned Value, Earned Value, and Actual Cost to detect
variances.
 Change Control Board: All cost changes must be approved by PM, client, and financial lead.

Change management process

 Request Submission (via formal change request form).


 Impact Analysis (cost, timeline, scope).
 Approval/Rejection (CCB decision).
 Budget Adjustment (if approved, update baseline).

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