Project Cost Estimation

The total cost estimation for the development of carpooling application is $10,098. The estimation of cost is based on the project activities which are listed in the below table. The hourly rate of both internal as well as external labour is determined by the project manager with an assumptions of total internal and external labour. The cost is based on the actual hour worked by the team members.

Parametric cost estimation is used to estimate the project cost, uses of relations among the variables for calculation of project cost. In this plan, parametric estimate is being used to determine by identification of labour and per hour cost for each labour required for the project plan. Below table shows the total cost estimation for the development of carpooling application such as:

Task name	Internal labour	$/hr Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Internal total	External labour	$/hr	External	Total labour	Total cost
Drawing a sketch of the application	25	$        35.00	$                875.00	–	–		$        875.00	$                  875.00
Search for platform to make the application	35	$        50.00	$            1,750.00	–	–		$     1,750.00	$              1,750.00
Application development platform	32	$        40.00	$            1,280.00	–	–		$     1,280.00	$              1,280.00
Social media integration	35	$        35.00	$            1,225.00	15	$           30.00	$  450.00	$     1,675.00	$              1,675.00
App customization	50	$        30.00	$            1,500.00	–	–		$     1,500.00	$              1,500.00
Server backup	30	$        50.00	$            1,500.00	20	$           30.00	$  600.00	$     2,100.00	$              2,100.00
Subtotal								$              9,180.00
Reserves								918
Total	207		$            8,130.00				$     9,180.00	$            10,098.00

Initial cost benefit analysis is listed as:

Discount Rate Used	5.00%
Annual Benefits	$     12,000.00
Annual Operational Costs	$      7,800.00
One-Time Development Cost	$      7,000.00
				Year of Project
		0	1	2	3	4	5	TOTALS
Economic Benefit		$0.00	$   12,000.00	$   12,000.00	$      12,000.00	$   12,000.00	$      12,000.00
Discount Rate		1.0000	0.9524	0.9070	0.8638	0.8227	0.7835
PV of Benefits		$0.00	$11,428.57	$10,884.35	$10,366.05	$9,872.43	$9,402.31
NPV of all BENEFITS		$0.00	$   11,428.57	$   22,312.93	$      32,678.98	$   42,551.41	$      51,953.72	$      51,953.72
One-Time COSTS		$  (7,000.00)
Recurring Costs		$0.00	$    (7,800.00)	$    (7,800.00)	$       (7,800.00)	$    (7,800.00)	$       (7,800.00)
Discount Rate		1.0000	0.9524	0.9070	0.8638	0.8227	0.7835
PV of Recurring Costs		$0.00	$    (7,428.57)	$    (7,074.83)	$       (6,737.93)	$    (6,417.08)	$       (6,111.50)
NPV of all COSTS		$  (7,000.00)	$  (14,428.57)	$  (21,503.40)	$     (28,241.33)	$  (34,658.41)	$     (40,769.92)	$     (40,769.92)
Overall NPV								$      11,183.80
Overall ROI								0.2743

In order to get success into the development of carpooling application, both internal and external stakeholders are required. Communication is required among the project team members to maximise the chances of project success and prevention of project scope creep. The project suppliers are required of communication plan while in case of application development and marketing, the stakeholders are required to interact with the project manager. It is required when there is any change into the project plan and design of carpooling application, then through the communication channels they can discussed the possible changes for better project success.

In following table, the communication summary is provided for the list of stakeholders. The project team members follow of proper guidelines and communication medium for effective communication.

Stakeholders	Information	Method of communication	Sender	Frequency of communication
Project sponsor	Project plan documents	Email, shared drive	Project team	Monthly
Project team member	Project status report	Email and presentation	Project Manager	Weekly
Project suppliers	Product delivery report	Email, phone	Project Manager	Weekly
Project Manager	Project design changes	Email and presentation	Project team	Monthly
External stakeholders	Request for review	Phone, email and hard copy	Project Manager	Monthly

• Short weekly meetings are required for making effective communication among the project team members.
• Project communication template is used in case of written communication among the project stakeholders.
• Proper email headings should be used when email is used as the communication channel to interact with the project team.
• Checklists are used at the time of reviewing the product requirements and conduct of interviews with the customers.
• The meeting minutes are prepared in 24 hours of the project meetings conducted.

The issues among the project team members are resolved at lowest possible level. If the issues are not resolved on time, then a communication with the supervisor is required to prevent from the project conflicts. When the project issues are becoming more critical, then it is taken to the project manager for resolving it.

The revision of project document is done by the project manager. At top of the project document, the revision version, number and date is marked.

The responsibility assignment matrix (RAM) is used for the carpooling app development and RACI matrix is shown below table. The project team members have various roles into the project.

R: Responsible

A: Accountable

C: Consulted  I : Informed

Roles	VP of Operation	VP of Marketing	Risk Manager	Project Sponsor	IS Project Manager	Customers	Supplier	IT Department	Employees
Monitoring the features of carpooling application	R	–	C	I	R	–	–	–	–
Implementation of app	R	A	I	R	R	–	–	–	–
Analyse the market	C	R	C	I	–	–	–	I	I
Identification of threats into the market	–	C	R	–	R	R	–	–	–
Analysing the risks	–	–	R	C	I	R	I	C	I
Collection of project funds	–	–	I	R	I	R	–	–	–
Execution of the project	C	–	–	–	R	R	–	I	I
Delivering the constraints- scope, time and budget	I	I	I	R	R	–	C	I	I
Consume the products and services	–	–	–	R	C	R	R	C	I
Provide analytic package	R	I	R	–	–	–	R	–	–
Establish the application	R	–	R	–	–	–	–	R	–
Accomplish of operational activities	R	A	C	–	I	R	I	C	R
Development of application	R	–	R	I	C	–	R	I	R
Testing	R	–	–	C	I	–	R	A	–

Kermanshachi, S., Anderson, S., Molenaar, K.R. and Schexnayder, C., 2018. Effectiveness Assessment of Transportation Cost Estimation and Cost Management Workforce Educational Training for Complex Projects. In International Conference on Transportation and Development(p. 82).

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Larson, E.W. and Gray, C.F., 2015. A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute.

Trendowicz, A. and Jeffery, R., 2014. Software project effort estimation. Foundations and Best Practice Guidelines for Success, Constructive Cost Model–COCOMO pags, pp.277-293.