PJM6025 Budget Assignment

Homework Assignment—Week 3

Executive Summary

The Enterprise Information Management project for HealthCare Partners is being developed by a vendor, CTG. CTG’s labor costs represent 70 percent of all costs of the overall EIM budget of $4.5 million. The CIO and the COO are requesting an update to the overall project spend and an estimate of remaining costs to the budget.

Assignment—Part 1

Review the invoices for Homework Week 3 for this document, determine the cost breakdown structure based on the information available (resource based). If these invoices represent a standard monthly cost, and the project is in its fourth month of a 12-month duration, how will you answer the following questions:

1. What is your current spend in aggregate and by resource and by month?

2. Do you have sufficient budget to complete the project?

3. What contingency reserve should you ask for?

4. What are your assumptions about your estimates?

Hints: Find the cost for August for all resources identified, extrapolate for the previous and future months based on August’s costs. What might be missing?