Read the case given below and answer the questions given at the end.

CASE STUDY-2

Juan Gonzales was a systems analyst and network specialist for a major city's waterworks departments in Mexico. He enjoyed helping the city develop its infrastructure. His next career objective was to become a project manager so he could have been more influence. One of his colleagues invited him to attend an important project review meeting for large government projects, including the Surveyor Pro project, in which Juan was most interested. The Surveyor Pro project was a concept for developing a sophisticated information system that included expert systems, object-oriented databases, and wireless communications. The system would provide instant, graphical information to government surveyors to help them do their jobs. For example after the surveyor touch a map on the screen of a handheld device the system would prompt him or her for the type of information needed for that area this system would help in planning and implementing many projects from laying fiber optic cable to laying water lines. Juan was very surprised however in the majority of the meeting was spend discussing past related issues. The government officials were reviewing many existing projects to evaluate their performance to date and the potential impact on their budgets before discussing the funding for any new projects. Juan didn't understand many of the terms and charts and the charts presenter's wear showing. What was this earned value term they kept referring to. How were they estimating what it would cost to complete projects or who long it would take? Juan thought he would learn more about the new technologies the surveyor Proproject would use but he discovered that the cost estimate and projected benefits where of most interest to government officials at the meeting it also seemed as if a lot of efforts would go towards detail financial studies before any technical work could even start. Juan wish he had taken some accounting and finance courses so he could understand the acronyms and concepts people wear discussing, Although Juan had degree in electrical engineering. He had no formal education in finance if Juan could understand information systems and networks he was confident that he could understand financial issues on projects too. He jotted down questions to discuss with his colleges after the meeting.

Question:

Q1. Discuss why IT professional should learn cost management and its impact on Projects.
Q2. Suggest few costing models Juan should learn to understand the financial aspects of a project.
Q3. What was Juan's problem? What kind of action plan you will suggest to him.