Prepare a Basis of Estimates to document the estimating techniques that were use
ID: 383074 • Letter: P
Question
Prepare a Basis of Estimates to document the estimating techniques that were used to determine the project costs.
Techniques that were used were Analogous estimating
Deliverable/Activity
Duration
Resource Name(s)
Resource Quantity/
Rate
Activity Cost
Supplier Product Agreement
Sourcing Requirements
Develop sourcing team
3 days
Project Manager
$46/hour
$1,104
Determine sourcing strategy
3 days
Project Manager
$46/hour
$1,104
Sourcing Proposal
Assess the supply market
7 days
Procurement Manager
$36/hour
$2,016
Analyze price and cost
7 days
Procurement Manager
$36/hour
$2,016
Supplier Selection Criteria
Determine supplier ability to meet product and service quality
7 days
Human Resources Representative
$36/hour
$2,016
Identify any risk associated with supplier
7 days
Human Resources Representative
$36/hour
$2,016
Supplier Responsibility Standards
Implement management systems to ensure business continuity and continuous improvement
21 days
Project Manager
$46/hour
$7,728
Monitor activities of a supplier to confirm compliance
30 days
Legal/ Regulatory Representative
$92/hour
$22,080
Supplier Performance Measurement Criteria
Establish metrics & KPI for potential contacts
14 days
Human Resources Representative
$36/hour
$4,032
Evaluate and measure supplier performance through scorecards
30 days
Project Manager
$46/hour
$11,040
Total:
Deliverable/Activity
Duration
Resource Name(s)
Resource Quantity/
Rate
Activity Cost
Supplier Product Agreement
Sourcing Requirements
Develop sourcing team
3 days
Project Manager
$46/hour
$1,104
Determine sourcing strategy
3 days
Project Manager
$46/hour
$1,104
Sourcing Proposal
Assess the supply market
7 days
Procurement Manager
$36/hour
$2,016
Analyze price and cost
7 days
Procurement Manager
$36/hour
$2,016
Supplier Selection Criteria
Determine supplier ability to meet product and service quality
7 days
Human Resources Representative
$36/hour
$2,016
Identify any risk associated with supplier
7 days
Human Resources Representative
$36/hour
$2,016
Supplier Responsibility Standards
Implement management systems to ensure business continuity and continuous improvement
21 days
Project Manager
$46/hour
$7,728
Monitor activities of a supplier to confirm compliance
30 days
Legal/ Regulatory Representative
$92/hour
$22,080
Supplier Performance Measurement Criteria
Establish metrics & KPI for potential contacts
14 days
Human Resources Representative
$36/hour
$4,032
Evaluate and measure supplier performance through scorecards
30 days
Project Manager
$46/hour
$11,040
Total:
Explanation / Answer
Activity cost = Resource quantity /Rate * Duration in days * 8 hours per day
For example, Activity cost of Implement management systems to ensure business continuity and continuous improvement = $ 46 per hour * 21 days * 8 hours per day = $ 7,728
Estimated total project cost = $ 55,152
Deliverable/Activity Duration Resource Name(s) Resource Quantity/ Activity Cost Rate Supplier Product Agreement Sourcing Requirements Develop sourcing team 3 days Project Manager $46/hour $1,104 Determine sourcing strategy 3 days Project Manager $46/hour $1,104 Sourcing Proposal Assess the supply market 7 days Procurement Manager $36/hour $2,016 Analyze price and cost 7 days Procurement Manager $36/hour $2,016 Supplier Selection Criteria Determine supplier ability to meet product and service quality 7 days Human Resources Representative $36/hour $2,016 Identify any risk associated with supplier 7 days Human Resources Representative $36/hour $2,016 Supplier Responsibility Standards Implement management systems to ensure business continuity and continuous improvement 21 days Project Manager $46/hour $7,728 Monitor activities of a supplier to confirm compliance 30 days Legal/ Regulatory Representative $92/hour $22,080 Supplier Performance Measurement Criteria Establish metrics & KPI for potential contacts 14 days Human Resources Representative $36/hour $4,032 Evaluate and measure supplier performance through scorecards 30 days Project Manager $46/hour $11,040 Total: $55,152