Development and Implementation of an E-Procurement System for MV Cost Management Plan Version Number: 1.0 Version Date: 05/07/2017 Student’s name: Student’s Number: Tutor Name: TABLE OF CONTENTS 1 Introduction 3 1.1 Application of plan 3 2 Cost descriptors 3 2.1 Units of Measure 3 2.2 Level of Precision 3 2.3 Level of Accuracy 3 3 Organisational Procedures Links 3 4 Control Thresholds 3 5 Rules of Performance Measurement 3 5.1 Cost Management Measurement 3 5.2 Timing of Cost Management Activities 3 5.3 Reporting 3 Cost Management Plan Approval 4 REFERENCES 5 APPENDIX C: KEY TERMS 6 Introduction Application of plan This Cost Management Plan applies to the Project costs. Cost descriptors Units of Measure Man-Hour is used for all human resources used, based on their skill level multiplying factor to be used Hardware are measured in LOT, as these cannot be distinguished on any other units Level of Precision All the software loading and other project management, scheduling work for which only man power is used for resource calculations, the precision can be adjusted off to closest decimal component. That is if, the amount is 2211.06, then it is 2212 and if 4500.04 it we considered as 4500. Whereas in case of calculating the project performance indices like CPI, SPI the accuracy precision level should be up to second decimal point. Level of Accuracy Deviation of +10% of general spending plan is only manageable. 25% of the cost budget is kept aside under management reserve. Organisational Procedures Links For booking expense and time, our venture is required to do book it through depicted and asserted WBS structure. There is one fundamental avowed WBS for the whole venture which should be utilized for making and booking cost spending arrangement and cost. At each level of WBS, the shows can be measured by utilizing instability examination and at finish the way toward figuring. We have to dependably keep up positive change and more than 1 segment of record. Control Thresholds The threshold limit for the project is +15%, as if the budget increases up to 15% can be manageable, as the reserve is only mere 25%. The moment it crosses the limit of 15%, more Loss Company may need to bear (project-management-knowledge, 2017). Anything above +5% of deviation Project manager must inform the higher management, whereas up to +3% should be handled indecently by Project Manager. Rules of Performance Measurement Cost Management Measurement Project Manager shall be required to produce reports on earned value analysis to calculate the current status and projections. The cost variance (CV) can be calculated by difference between earned value (EV) and actual cost (AC) till the reporting date. "Cost Performance Index (CPI)" can be calculated by the ration between EV & AC. By the help of CPI, EAC (Estimated At Complete) can be calculated by dividing BAC (Budget at Complete) by CPI. CPI must always be maintained above 1 and CV positive for maintaining better health of project Timing of Cost Management Activities The cost management activity must be performed every month by updating the whole schedule with activity progress and the actual expenditures done till reporting date. Reporting Project Manager required to report the status of cost management status every month with all data related to performance index, that is CV and CPI. Monthly report must contain the status report of cost management. Cost Management Plan Approval The undersigned acknowledge that they have reviewed the Development and Implementation of an E-Procurement System for MV Cost Management Plan and agree with the information presented within this document. Changes to this Cost Management Plan will be coordinated with, and approved by, the undersigned, or their designated representatives. Signature: Date: 7 May 2017 Print Name: Maree Shepherd Title: Systems Accountant Role: Project Manager Signature: Date: 7 May 2017 Print Name: Title: Finance & Accounts Head Role: Finance & Accounts controller Signature: Date: 7 May 2017 Print Name: Title: Director, Corporate Services Role: Superintendent Signature: Date: 7 May 2017 Print Name: Title: Board of Director, MV Role: Project Executive REFERENCES project-management-knowledge. (2017). Thresholds. [Online]. Available at: https://project-management-knowledge.com/definitions/t/thresholds/ Accessed on 7 May 2017.APPENDIX C: KEY TERMS The following table provides definitions and explanations for terms and acronyms relevant to the content presented within this document. Term Definition WBS Work Breakdown Structure