Posted: April 6th, 2016

This aim of this part is to show that you can develop a simple cashflow (monthly and cumulative) for the project and its first year of operation.

Supporting Notes for Cost Estimation Section of Assignment
Cost Estimation, Assumptions, Cost Budget on a Month by Month Basis for 3 months (the project). Cashflow showing 3 months budget and sales revenues for the first 12 months (so from project start). Budget and cashflow need to show some justification (supported with assumptions).
Project planning of a café to be, there are three rooms a big conference room and two small rooms with a mini kitchen for serving snacks (no major cooking). You have to show the cost and references (quotation) of items that are going to be in the café example projectors, sits, tables, coffee machine etc.
Note: internal workers cost -100 per day e.g. project manager, operations manager
External workers-250 per day

Month by Month Budget for the Project
For the project there needs to be a list of the resources (the team and materials) required for the project with associated costs.
The main cost items need to be included within the budget.
Labour times for project team need to be consistent with the network diagram and people allocated.
Expenses and overhead need to be included.
There should be reasonable costs included and all assumptions and sources listed.

Cashflow
This aim of this part is to show that you can develop a simple cashflow (monthly and cumulative) for the project and its first year of operation.
The first 3 months will show the project’s budget and the following 12 months will show the operations of the café with income and expenditure.
As previously mentioned the project finishes after 3 months and you are being asked to include thereafter for the next 12 months a simple income and expenditure for the café.
So to do this you can make basic assumptions about income – so for instance x customers per month and the average income from these customers is £y.
With regards to operating costs for the café as a minimum – just show the staff costs and non-staff costs. So for instance x staff that are paid average salary £y for staff costs. Non staff costs – utilities (gas, electric, water) and leasehold cost (included within assignment). If you want to include other cost categories you can however do not over complicate this. Supporting Notes for Cost Estimation Section of Assignment
Cost Estimation, Assumptions, Cost Budget on a Month by Month Basis for 3 months (the project). Cashflow showing 3 months budget and sales revenues for the first 12 months (so from project start). Budget and cashflow need to show some justification (supported with assumptions).
Project planning of a café to be, there are three rooms a big conference room and two small rooms with a mini kitchen for serving snacks (no major cooking). You have to show the cost and references (quotation) of items that are going to be in the café example projectors, sits, tables, coffee machine etc.
Note: internal workers cost -100 per day e.g. project manager, operations manager
External workers-250 per day

Month by Month Budget for the Project
For the project there needs to be a list of the resources (the team and materials) required for the project with associated costs.
The main cost items need to be included within the budget.
Labour times for project team need to be consistent with the network diagram and people allocated.
Expenses and overhead need to be included.
There should be reasonable costs included and all assumptions and sources listed.

Cashflow
This aim of this part is to show that you can develop a simple cashflow (monthly and cumulative) for the project and its first year of operation.
The first 3 months will show the project’s budget and the following 12 months will show the operations of the café with income and expenditure.
As previously mentioned the project finishes after 3 months and you are being asked to include thereafter for the next 12 months a simple income and expenditure for the café.
So to do this you can make basic assumptions about income – so for instance x customers per month and the average income from these customers is £y.
With regards to operating costs for the café as a minimum – just show the staff costs and non-staff costs. So for instance x staff that are paid average salary £y for staff costs. Non staff costs – utilities (gas, electric, water) and leasehold cost (included within assignment). If you want to include other cost categories you can however do not over complicate this.