RESOURCE ALLOCATION AND PRELIMINARY BUDGET

For the Live the Dream Marvel theme birthday party project we used a bottom-up method of budgeting. To do this we used the work breakdown structure to apply direct and indirect costs to the project activities. We totaled the costs of each activity, work package, and deliverables, and then combined those costs for the overall project budget. This budget method was used because it gives a more accurate cost prediction than the top-down method for this Special birthday party Event Management project.

The chart above shows the original budgeted cost in the center column versus the actual budgeted cost, created from the work breakdown structure. The customer will be billed $60,000 for the project and therefore the difference in actual cost and the $60,000 will be the profit. The original budget was $60,000 maximum and the actual budgeted cost of completing the project is $44,250.

Therefore, the projected profit for the company for this job is $15,750. The estimated equipment and travel expenses did not change in these two budgets. However, the Vendor cost are shown to be significantly lower as this only includes the labor for the Catering and Rental Party vendor. However, the Vendors estimate is significantly higher because this item includes the labor for the Bounce Houses Rentals Allen & Heath GL2200-24 24 inputs, the materials cost is also lower in this final budget as materials were rent at a discount through a contract with a Vendor supplier.

The contingency fund for this project is $7,875. This figure was determined by dividing the profit margin in half. We estimate if any of the risks detailed in the risk register occur, this amount should be sufficient to deal with them and still retain some profit from the project.

Part 2: Resource Management

Resource assignment for this project was not difficult. This project requires the project manager to manage the Vendors, DJ, Music, Actors Catering are completed so that the project deliverables. Each is responsible for specific work packages and the Rental stops are involved throughout the project, the other members are needed for specific tasks at specific durations. There weren’t any allocation problems for this project and there were no resource over-allocation problems either.

To manage the project team Group F conducted weekly meetings to discuss the project schedule and assess the status of the work packages. We use this time to monitor risks and assign resources as needed. We also discuss any team conflicts now and motivate the team using positive reinforcement. I praise the team for work accomplished on schedule and in budget and attempt to correct or address any activities that need improvement.

This project structure is a pure project organization. The pure project organization is set up with its focus aimed at special Event projects. It is the best make up for a meaningful Events for this Marvel avenger birthday party, because in an Event Management organization, each project is a self-contained business unit with a dedicated project team. The project manager assigns resources from functional directly to this project for the time as they are needed.