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Cost Management Plan

The document outlines a cost management plan for a project that will use Earned Value Management to measure total performance. It identifies key performance indicators like Schedule Variance, Cost Variance, Schedule Performance Index, and Cost Performance Index and defines acceptable ranges for these metrics. It also includes details on staffing levels and costs for operating a data center workforce over three shifts and weekends.

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Nitish Singh
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227 views3 pages

Cost Management Plan

The document outlines a cost management plan for a project that will use Earned Value Management to measure total performance. It identifies key performance indicators like Schedule Variance, Cost Variance, Schedule Performance Index, and Cost Performance Index and defines acceptable ranges for these metrics. It also includes details on staffing levels and costs for operating a data center workforce over three shifts and weekends.

Uploaded by

Nitish Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Cost Management Plan

The total performance of the project will be measured by its Earned Value
Management. We have mentioned a four performance measurement scale
which says that the project total cost must pass through these parameters in
order to be completed successfully:

o Schedule Variance (SV)

o Cost Variance (CV)

o Schedule Performance Index (SPI)

o Cost Performance Index (CPI)

Schedule variance in cost is acceptable if it’s up to or down to a certain level


for example +.1 up or -.1 down can be acceptable and can be adjusted with
time and same way cost variance too but problem occurs when sudden
increase in cost come into existence for that we have performance indexes
which are mention below

Schedule performance index (SPI) or Cost performance index (CPI) says that
if the index falls in between 0.8 to 0.9 and 1.1 to 1.2 we are good to go for
the project. We can see below, it’s highlighted with Yellow and the other side
is highlighted in red, which says that if the index is less than 0.8 or more then
1.2 won’t be acceptable because it’s going out of scope of project. The
Project Manager will report the reason why it’s higher or lower and the
corrective plans to bring project on track

Performance Measure Yellow Red


Schedule Performance 0.8 > X < 0.9 and 1.1 < X X < 0.8 or X > 1.2
Index (SPI) > 1.2

Cost Performance 0.8 > X < 0.9 and 1.1 < X X < 0.8 or X > 1.2
Index(CPI) > 1.2
Cost management Of Work Force at Data Center: We have divided the
24*7 time in three shifts plus weekends. We also believe that on weekends
we might need extra employees to work because regular employees who
work on week days have the option whether to work or rest during weekend.

Categories Shift-I Shift-II Shift-III


Executive Officer* Optional Optional Optional
Supervisor One One One
Server Experts Three Two Two
Database Two One One
Administrator
SLA Server Expert One One One
Maintenance Two One One
Crew
Security Guards Two Two One

Note: Executive could be optional on site, but available 24/7 through the
calls, e-mails and conferencing. During data center setup if a problem arises
it would have to be handled on site with escalation process and the executive
would be last one to involved.

Shifts Timing Number Of Employees


Shift I 8 AM – 4 PM 12
Shift II 4 PM – 12 AM 8-10
Shift III 12 AM – 8 Am 7
Note: The Data Center will have 3-5 extra employees on-call for the
weekend hours, so if a Full-time employee is unable to work during the
weekend we can deploy the reserve Employees or Part-time employees. The
reserve employees are Supervisors, Server Experts, DBA, SLA, Maintenance,
etc.

Project Workforce Budget

The budget for this work force is detailed below. Costs of hiring, training,
deploying, and annual expected salary are presented in various categories...

o Hiring Costs: $ 10,000

o Training Cost: $50,000

o Deployment Cost: $5,000

o Annual Salary: $2,100,000 - $2,500,000

Deployment and annual expected Salary: ($ 2,150,000 to $2,500,000) +$


60,000 = $2,200,000 to $2,500,000.This would be the total cost for
employees’ setup (deployment, Hiring, training) and annual salary for them
at data center.

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