cost estimation using ms project

Create the MS Project WBS with individual tasks, summarizing as appropriate for phases.

2. (34 pts.) Entering the LABOR/WORK ESTIMATES

For each task in the WBS, 3 labor or Work estimates – pessimistic, most likely and optimistic were created. Use the most likely labor estimate for each WBS activity. The minimum Work estimate for a task is 1 hour and the pay rates should be in whole dollar values. The company will pay overload if there are resource overloads

3. (4 pts.) Entering the NON-LABOR/MATERIAL ESTIMATES

4. (4 pts.) Appropriate totals appear on each of the estimate worksheets.

Project Duration Estimate

Project Resource Information

Page 1 of 6

Labor Estimate

Non - Labor Estimate (all non-recurring)

NOTES:

3.3 Implement Marketing Strategy: Advertising material development and publication (electronic, hard copy).

4.1 Develop Prototype: Prototype materials.

5.2 Layout Production Line: Additional hardware/software/tools for enhancement to existing production line.

6.2 Document Customer Support Process: Electronic and hard copy publication costs.

6.3 Train Staff on Customer Support Process: Training materials.

Page 6 of 6

ResourceMax UnitsStd RateOvt Rate

Engineering 1100%$50.00/hr$50.00/hr

Engineering 2100%$50.00/hr$50.00/hr

Engineering 3100%$50.00/hr$50.00/hr

Marketing 1100%$40.00/hr$40.00/hr

Marketing 2100%$40.00/hr$40.00/hr

Marketing 3100%$40.00/hr$40.00/hr

Marketing 4100%$40.00/hr$40.00/hr

Production 1100%$25.00/hr$37.50/hr

Production 2100%$25.00/hr$37.50/hr

Production 3100%$25.00/hr$37.50/hr

Customer Service 1100%$25.00/hr$35.00/hr

Customer Service 2100%$25.00/hr$35.00/hr

Customer Service 3100%$25.00/hr$35.00/hr

Customer Service 4100%$25.00/hr$35.00/hr

Customer Service 5100%$25.00/hr$35.00/hr

Customer Service 6100%$25.00/hr$35.00/hr

Customer Service 7100%$25.00/hr$35.00/hr

Customer Service 8100%$25.00/hr$35.00/hr

Customer Service 9100%$25.00/hr$35.00/hr

Customer Service 10100%$25.00/hr$35.00/hr

Customer Service 11100%$25.00/hr$35.00/hr

Customer Service 12100%$25.00/hr$35.00/hr

Labor Estimate

WBSTask Name

No. of

People

Est

(hrs)

Work

(hrs)

1Define New Product

1.1Brainstorm Product Ideas3824

Engineering188

Marketing188

Production188

1.2Research Brainstormed Product Ideas31648

Engineering11616

Marketing11616

Production11616

1.3Decide on 2 Product Ideas6212

Engineering122

Marketing122

Production122

Engineering122

Marketing122

Production122

2Design New Product

2.1Define Product Requirements340120

Engineering14040

Marketing14040

Production14040

2.2Define Product Design380240

Engineering18080

Marketing18080

Production18080

2.3Review Product Design6424

Engineering144

Marketing144

Production144

Engineering144

Marketing144

Production144

3Market New Product

3.1Develop Marketing Strategy32472

Marketing22448

Marketing12424

3.2Review Marketing Strategy4416

Marketing248

Marketing144

Customer Service144

3.3Implement Marketing Strategy280160

Marketing280160

Most Likely

4Develop New Product

4.1Develop Prototype280160

Engineer280160

4.2Test Prototype23264

Engineer23264

4.3Review Prototype6424

Engineering144

Marketing144

Production144

Engineering144

Marketing144

Production144

4.4Develop Production Model380240

Engineering280160

Production18080

4.5Test Production Model460240

Engineering260120

Production260120

4.6Review Production Model7856

Engineering2816

Production2816

Engineering188

Marketing188

Production188

5Deliver Product in Production

5.1Design Production Process260120

Production260120

5.2Layout Production Line260120

Production260120

5.3Test Production Line24080

Production24080

5.4Review Production Line3824

Production2816

Production188

6Setup Customer Support

6.1Design Customer Support Process260120

Customer Service260120

6.2Document Customer Support Process260120

Customer Service260120

6.3Train Staff on Customer Support Process1016160

Customer Service816128

Customer Service21632

6.4Rollout Customer Support Process12896

Customer Service10880

Customer Service2816

Non-Labor Estimate

Pessimistic

Most Likely

Optimistic

WBS

Task Name

1

Define New Product

1.1

Brainstorm Product Ideas

1.2

Research Brainstormed Product Ideas

1.3

Decide on 2 Product Ideas

2

Design New Product

2.1

Define Product Requirements

2.2

Define Product Design

2.3

Review Product Design

3

Market New Product

3.1

Develop Marketing Strategy

3.2

Review Marketing Strategy

3.3

Implement Marketing Strategy

$150,000

$100,000

$50,000

4

Develop New Product

4.1

Develop Prototype

$1,500

$1,300

$1,000

4.2

Test Prototype

4.3

Review Prototype

4.4

Develop Production Model

4.5

Test Production Model

4.6

Review Production Model

5

Deliver Product in Production

5.1

Design Production Process

5.2

Layout Production Line

$15,000

$10,000

$8,000

5.3

Test Production Line

5.4

Review Production Line

6

Setup Customer Support

6.1

Design Customer Support Process

6.2

Document Customer Support Process

$800

$500

$300

6.3

Train Staff on Customer Support Process

$15,000

$8,000

$5,000

6.4

Rollout Customer Support Process

TOTALS

$182,300

$119,800

$64,300

WBSTask Name

Pessimistic

Duration

(Days)

Most Likely

Duration

(Days)

Optimistic

(Days)Predecessor

1Define New Product

1.1Brainstorm Product Ideas321

1.2Research Brainstormed Product Ideas8651.1

1.3Decide on 2 Product Ideas2111.2

2Design New Product

2.1Define Product Requirements151081.3

2.2Define Product Design2015102.1

2.3Review Product Design2112.2

3Market New Product

3.1Develop Marketing Strategy10532.3

3.2Review Marketing Strategy2113.1

3.3Implement Marketing Strategy3020153.2

4Develop New Product

4.1Develop Prototype2015103.3

4.2Test Prototype10534.1

4.3Review Prototype2114.2

4.4Develop Production Model2015104.3

4.5Test Production Model151084.4

4.6Review Production Model2114.5

5Deliver Product in Production

5.1Design Production Process151084.6

5.2Layout Production Line151085.1

5.3Test Production Line10535.2

5.4Review Production Line2115.3

6Setup Customer Support

6.1Design Customer Support Process151085.4

6.2Document Customer Support Process151086.1

6.3Train Staff on Customer Support Process2015106.2

6.4Rollout Customer Support Process3020166.3