Keystone Conference

Create a new WBS using the new budgeting parameters. Formulate a WBS using principles of project scheduling and budgeting, and develop cost and time estimates and allocate resources.

Management for the DU Keystone Conference reallocated the budget to be $280,000 instead of 1.2 million dollars. To start, Larson & Gray (2009) discuss the importance of change control management within a project due to uncertainty of when and the type's changes occurring. The proposed change occurring is the change in budget from 1.2 million dollars to $280,000. This change can affect the location of the conference, the amount of days of the conference, they type of software purchases for communication for the team members and many other small incidentals. This change will be documented, approved and implemented within the WBS. From this changed WBS we can divide up even further to estimate cost, resources and duration of the project (Heagney, 2012, p.43).

Next, the updated and more detailed WBS included the scope of the project, a hierarchy chart, cost and time estimates, and allocation of resources. The new scope of this project states that the Duck Unlimited Keystone Conference will be held at the end of July of 2013 in Charlottesville, N.C. It is not to exceed $280,000 and is to determine a 10 year organization strategy. The resources include the 10 separate teams which will include three to five people, the budget of $280,000, communication software, and the 21 month timeline. The budget for this project can be implemented in a number of different ways. A time-phase budget baseline estimates the cost of each week to finish the budget within the 21 month time frame (Larson & Gray 2009, p.255) This would mean that this project can spend about $13,000 every month. However for this project a deliverable based budget would work best as shown in the chart below. Also this chart demonstrates the time line, cost and allocation of resources.

1. Describe how you would develop cost estimates for this project.

Cost estimates are an essential part of every project. It is important to take into account three different types of estimates for the project. They include "most likely estimate", "optimistic estimate", and a "pessimistic estimate". This is to insure that most likely cost will be determined by using all three estimates. The formula that can be used to determine this average is "estimated time or cost = {optimistic + (4 x most likely)+ pessimistic)/6." (Richman 2012, p81-82) This is one way in determining the estimation of the cost of a project. Another way is in determining if something is a direct cost, overhead cost or general & administrative (G&A) cost can have a big impact on the overall budget of a project. Since the direct cost come from the team and management working on that work includes labor, materials, equipment and other essentials. Then the overhead cost would be directly related to the project work packages and deliverables which would include salaries, rental of hotel locations, and travel expenses. Finally the G&A cost are not openly related to the projects which includes advertisements, senior management, and accounting. (Larson & Gray 2009, p.131-132)

In refining down the project estimates the project is broken even further to include the hidden interaction cost, non-normal conditions, things going wrong, and changes of plan and scope of project.. Hidden cost would include the interaction of the management with other people to insure that project gets done appropriately. Non-normal conditions include when there are work shortages either being people out sick or layoffs or materials