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The primary data sets used to construct the resource plan for the Care implementation are the contract from the software vendor quotes from the IT group for the server hardware and software and data from human resources and department heads regarding the time and cost associated with internal resources All of the identified overhead labor costs--including the programmer database manager project analyst operations analyst interface manager and networking analyst--use a 91hour figure This includes their salary and overhead expenses However this is only an estimate with some individuals generating higher figures and some less In addition no data was available at this time for the trainer an estimate of 73 per hour was used for these individuals The system is designed such that two users will be trained as trainers by Care this will reduce the expense associated with training the remaining employees who will use the system The work breakdown structure is illustrated below The following Gantt chart provides a more detailed understanding of how these tasks relate to one another Direct costs include the cost of the three servers 1250 each and the cost of the backup software for the servers 1500 each Installation direct costs include the cost of the system 450000 which includes training for the two internal trainers as well Overhead costs include the costs for the internal trainers as well as the various support staff programmers etc who will be providing ongoing implementation support Project estimation is indeed a yardstick for project cost control And if the yardstick is faulty you start on the wrong foot we exhort you not to underestimate the estimate Kharbanda and Jeffrey 1996 p 73 Time and cost estimates are the bedrock of project control Past experience is the best starting point for these estimates The estimate is influenced by many factors such as 61607Planning Horizon The quality of the estimate depends on the planning horizon estimates of current
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