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    Name % Complete Cost Baseline Cost Cost Variance

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    Satnam Singh
    The project to set up a new office has experienced significant delays and cost overruns. Setting up the new office, which is only 26% complete, has incurred a cost variance of $18,784 due to delays in material supply, miscommunication in procurement, and issues with the installation of phone/internet connections. Transferring back office data and finalizing the project closure have also exceeded their baseline costs without any work being completed. Several roles have been overallocated to address requirements that were not fully defined upfront and additional tasks caused by delays.

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    Name % Complete Cost Baseline Cost Cost Variance

    Uploaded by

    Satnam Singh
    29 views4 pages
    The project to set up a new office has experienced significant delays and cost overruns. Setting up the new office, which is only 26% complete, has incurred a cost variance of $18,784 due to delays in material supply, miscommunication in procurement, and issues with the installation of phone/internet connections. Transferring back office data and finalizing the project closure have also exceeded their baseline costs without any work being completed. Several roles have been overallocated to address requirements that were not fully defined upfront and additional tasks caused by delays.

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    The project to set up a new office has experienced significant delays and cost overruns. Setting up the new office, which is only 26% complete, has incurred a cost variance of $18,784 due to delays in material supply, miscommunication in procurement, and issues with the installation of phone/internet connections. Transferring back office data and finalizing the project closure have also exceeded their baseline costs without any work being completed. Several roles have been overallocated to address requirements that were not fully defined upfront and additional tasks caused by delays.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views4 pages

    Name % Complete Cost Baseline Cost Cost Variance

    Uploaded by

    Satnam Singh
    The project to set up a new office has experienced significant delays and cost overruns. Setting up the new office, which is only 26% complete, has incurred a cost variance of $18,784 due to delays in material supply, miscommunication in procurement, and issues with the installation of phone/internet connections. Transferring back office data and finalizing the project closure have also exceeded their baseline costs without any work being completed. Several roles have been overallocated to address requirements that were not fully defined upfront and additional tasks caused by delays.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    $20,000.

    00
    $18,000.00
    $16,000.00
    $14,000.00
    $12,000.00
    $10,000.00
    $8,000.00
    $6,000.00
    $4,000.00
    $2,000.00
    $0.00
    Defining Selecting New Setting up the Transferring Final closure of
    requirements Office Site new office back office data project

    Cost Variance

    Name % Cost Baseline Cost


    Complete Cost Variance

    Defining 92% $24,396.67 $22,206.67 $2,190.00


    requirements

    Selecting New 53% $12,222.00 $11,592.00 $630.00


    Office Site

    Setting up the 26% $34,700.00 $15,916.00 $18,784.00


    new office

    Transferring back 0% $3,240.00 $0.00 $3,240.00


    office data

    Final closure of 0% $1,928.00 $0.00 $1,928.00


    project
    $2,500.00

    $2,000.00 $2,240.00
    $1,500.00 $1,680.00
    $1,000.00 $1,400.00
    $1,120.00
    $500.00 $800.00
    $480.00
    $200.00
    $0.00
    $360.00
    $0.00
    $0.00
    $0.00
    $0.00
    $384.00
    $0.00
    $0.00
    $0.00$0.00
    $0.00$0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $0.00
    $200.00
    $0.00

    Cost Variance

    Name Cost Baseline Cost


    Cost Variance

    Office manager $15,280.00 $14,800.00 $480.00

    Telecommunications $2,400.00 $2,200.00 $200.00


    administrator

    Mailroom administrator $1,200.00 $1,200.00 $0.00

    Chief relocation officer $12,000.00 $11,640.00 $360.00

    Webmaster $1,152.00 $1,152.00 $0.00

    project manager $11,586.67 $11,586.67 $0.00

    Cleaners $768.00 $384.00 $384.00

    Security Administrator $1,200.00 $1,200.00 $0.00

    Environmental Engineer $1,120.00 $1,120.00 $0.00

    Network Support $4,480.00 $3,360.00 $1,120.00


    Manager

    Movers $5,376.00 $3,136.00 $2,240.00

    Finance manager $800.00 $0.00 $800.00

    Architect $200.00 $0.00 $200.00


    Senior Accountant $1,680.00 $0.00 $1,680.00

    Assistant manager $1,400.00 $0.00 $1,400.00

    Delay and cost overrun are inherent part of most projects. In our project till now, most of the

    delay happened in setting up new office as this phase is just complete less than one-third

    (26%) of what the actual planned timeline should be. Initially in defining requirement, the

    requirement required to initiate is still not fully defined as there is some permits are needed

    to be approved by government and incomplete new phone line requirement which takes

    more resource and time caused extra 400 dollars than as planned. Due to this, Project

    manager and office manager are overallocated. Moreover, updating the company

    information like company letter heads, business cards, contact and fax number, etc. on our

    website and other modes of communication with suppliers/contractors takes at least more 5

    days from now and even worse the assigned resources are schedule for upcoming tasks.

    Moreover, for phase setting up new office, the planned cost is $15,916.00. However, in interior

    work and setup communication channel at new place delayed because of the delay in material supply

    and miscommunication in procurement plan. While ordering new the phone and internet connections

    are already done, but the work of installation is pending as the work does not went according to

    proper procurement plan. This is because the local company agreed to provide the service of

    installation at as per plan but due change in new location space and misunderstanding the blueprints

    of new office by them. Change in procurement cost us more and network support manager was unable

    to deliver the task on time which lead the cost went to 3200. More alarming thing, till now date the

    interior work is just started and the exterior work about to start, however there was 2 times money is

    spent as it should be spent. We got approval for office and now ordering the chairs, desk and other

    furniture’s/equipment but this required more time to finish. The delay in creating purchase order,
    new invoices and set payment terms for suppliers/contractors required two more days and senior

    account manager is stuck with approval for new order from management and delay in getting and

    clearing payments.

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