$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.
