4 – 5 pages
Costing the Project
The project is progressing well, and you have now been asked if there
is enough time and budget to create and distribute a new marketing
mailing. This mailing will be focused on a new international
marketplace, so the existing materials cannot be used as is. The
materials will need to be translated (external resource), have different
graphics applied, and use different colors. The cost for mailing
internationally is twice the cost of the domestic mailing, and the
volume is 200,000–250,000 addresses. A mailing list will be purchased
for this mailing because it is a new market for the company.
You need to determine the costs of this mailing (internal and
external). You also need to determine the resource requirements and
identify any conflicts. Jennifer and you have a working session later
this week to pull together the information.
- In preparation for the meeting, create a worksheet (in Excel or
another spreadsheet tool) that you can use to create the budget for the
new mailing. - Pre populate the worksheet with the components of the estimate,
and provide directions to Jennifer in a procedures document (in Word)
on how to create a three-point estimate for the resulting budget. - Be sure to also include the internal costs.
- Also, create a schedule that identifies the deliverables, activities, and resources to produce this mailing.
- Using the project schedule you created as a group, identify the
resources you will use and what conflicts that may form (in Word). - Justify your choices.
Expert Solution Preview
Introduction:
Creating a budget and schedule for a project is an essential aspect of project management. When managing a project, it is crucial to consider internal and external costs, as well as the potential conflicts that may arise. In this scenario, we will outline the steps involved in creating a budget and schedule for a new marketing mailing that targets an international market.
Answer:
To create a budget for the new marketing mailing, a worksheet in Excel or another spreadsheet tool can be used. The worksheet should include all components of the estimate, including internal and external costs. To prepare for the meeting, the worksheet can be prepopulated with the estimate components and provided to Jennifer in a procedures document in Word.
To create a three-point estimate for the resulting budget, Jennifer can use the following steps:
1. Identify the optimistic estimate, which is the best-case scenario for the project cost.
2. Identify the pessimistic estimate, which is the worst-case scenario for the project cost.
3. Identify the most likely estimate, which is the most probable cost for the project.
Once Jennifer has identified these estimates, she can use a simple formula such as the Program Evaluation and Review Technique (PERT) to calculate the expected cost of the project. The formula is as follows:
Expected cost = (Optimistic estimate + 4 x Most likely estimate + Pessimistic estimate) ÷ 6
The resulting expected cost can then be used as the basis for creating the budget for the new marketing mailing.
In addition to creating a budget, a project schedule should also be created that identifies the deliverables, activities, and resources necessary to produce the mailing. The project schedule should also consider potential conflicts that may arise when using resources.
To identify the resources needed for the project, the group can refer to the project charter, work breakdown structure (WBS), and other project documents. The project schedule can then be created using tools such as Gantt charts or network diagrams.
Identifying potential conflicts is critical in creating a project schedule. Conflicts can arise when resources are over-allocated, when there are bottlenecks in the project, or when resources become unavailable due to other priorities. By identifying these conflicts early, project managers can develop solutions to mitigate them.
In justifying resource choices, it is essential to consider factors such as availability, skills, and experience. For example, if a team member has a particular skill that is required for the project, they may be assigned to that task, even if they are working on another project simultaneously.
In conclusion, creating a budget and schedule for a project is a critical aspect of project management. To manage costs effectively, internal and external costs must be considered, and a project schedule that identifies all tasks, resources, and potential conflicts must be created. By doing so, project managers can ensure that projects are completed on time, within budget, and to the required level of quality.
