PJM6025 Budget Assignment
usaggwp
saurabhsAssignmentno-3.docx
![]()
Homework Assignment—Week 3
Course Number & Title PJM 6025
Project Scheduling & Cost Planning
Executive Summary
Healthcare Partners has sanctioned 4.5 million for the project and the Enterprise management system has 70% of that to be used on the resources.
The following data deals with 4 months invoice and will provide proofs if the given amount is sufficient or not.
Assignment—Part 1
1. What is your current spending in aggregate and by resource and by month?
Current Expenditure for the given invoice of 4 months is 6383699.35USD which is bifurcated as:-
|
July |
August |
September |
October |
Total |
|
$ 72,755.49
|
$303,653.28
|
$220,381.33
|
$ 45,809.25
|
$ 642,599.35
|
According to resources the expenditure including miscellany is as follows:
|
Anderson Robert
|
$ 45,647.40
|
|
Bhatt Manoj
|
$ 41,660.00
|
|
Bristol Christopher
|
$ 26,245.52
|
|
Dennison Korl
|
$ 84,719.54
|
|
Hall Kerg
|
$ 110,362.36
|
|
Herman Franklin
|
$ 7,800.00
|
|
Inampudi Bhagath
|
$ 67,700.00
|
|
Jilla Sheetal
|
$ 65,268.72
|
|
Katkam Satyapal
|
$ 52,920.00
|
|
Lemke Denise
|
$ 51,300.00
|
|
Parimi Raydu
|
$ 42,500.00
|
|
Walton John
|
$ 45,454.42
|
|
Desmarais Yuvetta
|
$ 1,021.39
|
|
TOTAL
|
$ 642,599.35
|
2. Do you have sufficient budget to complete the project?
As you can see for 4 months the expense is $ 642,599.35 i.e on an average per month expenditure is $ 160649.83, but due to fluctuation in every month given invoice we can’t be sure to assign average expense so to avoid that we give the higher amount to each month which is $ 303,653.28 and we assign it remaining months which are 9 so in all it will be:
$ 303,653.28 * 9 = $ 2,732,879.52
$ 2,732,879.52 + $ 642,599.35 = $ 3375478.87
The given Budget is 4.5 million and 70% is accounted for resource expenditure which is 3.15 million.
So after the calculation $ 3375478.87 > $ 3150000
So we can conclude that the expense is on high side and we will be out of budget for resources so we will need extra money from the Healthcare Partners.
2. What contingency reserve should you ask for?
The contingency reserve required will be almost 10% which is $303653.28 so that the extra funds can be used to resolved uncertaintities.
Also after our calculation there will also be a balance of $78,174.44 if required.
3. What are your assumptions about your estimates?
· The calculation of the estimates is approximately stated for remaining months at the highest possible value which is in the month of August.
· So even after considering miscellany we will have sufficient funds to use them effectively.
· Contingency reserve assumed is sufficient than the required amount.
· The Healthcare Partners can complete the project if they allow the contingency reserve approval.
