Pm Ch. 13 Notes

project data from work breakdown structures and schedules" and comparing it to "topdown project goals." After this, the teams are to estimate investment risks

 The line manager treating such plans as merely an irrelevant forecast prepared by another. For the whole project process, the ability to influence cost diminishes rapidly over time, the greatest influence being at the design phase. However the greater the time between plan and implementation, the greater is the variance of actual schedule and budget against plan. Detailed planning of activities planned to be executed far into the future – say more than three months – is futile. This is because:  there are uncertainties which cannot be quantified;  stochastic modelling does not identify the cause of variation;  forecasting models extrapolate from past trends which may not be valid for the future. Theoretically, the binomial theorem [7,8] supports this claim. The probability of an event occurring in repeated trials – where the event may be, for instance, a task running 10% over its planned duration – is given by the binomial distribution. This shows that the percentage error of the estimate of the mean performance on the task as a ratio of the percentage error for the mean durations of all tasks in the work breakdown structure (WBS) is inversely proportional to the square root of the number of tasks, for a discrete sequence of tasks. Thus for a 52 week project to be estimated at ±10% accuracy

Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).

internally to establish costs and budgets for the project. The goal is to act according to the curve.

The Measurement Construct utilized in the Riordan Project is based on the adherence to estimate. Accurate project estimation is crucial in keeping project costs down and stakeholders happy. The Key Performance Indicator project managers want to minimize is expressed by the formula [(E-A)/E], where E = estimated Value to complete project and A = actual Value used to complete project. Project managers can substitute any value into the equation, such as hours or cost, to determine adherence to estimate. This will allow the project management team to spot trends early on during the project and then make the necessary adjustments.

We used PV (planned Value), AC (actual cost), and EV (earned value) to calculate SPI (schedule performance index), SV (schedule variance), CPI (cost performance index), and CV (cost variance). Among these indicators, SPI and SV show whether a project is behind schedule or not, and CPI and CV indicate whether a project is under budget. Therefore, the statuses of the schedule and cost of technical infrastructure, software customization, and combined projects can be easily and clearly checked, respectively.

During FY2017, a project tracking template was developed and implemented to provide a comprehensive overview and framework for major and

A WBS helped the project team identify and publish the work scope of the project – the tasks needed to achieve the project goal as a basis for estimating, scheduling and tracking progress (as per Task Schedule above).

This artifact was completed as an individual assignment for the PMGT 614 course. The reflection paper is evidence of my understanding of analytical techniques. The paper addresses the integrated relationships between project planning and monitoring, project control, and the intricate nature of guiding a project from start to finish

o Involves measuring progress toward project objectives, monitoring deviation from the plan, and taking corrective action to match progress with the plan. o Affects all other process groups and occurs during all phases of the project life cycle. o Outputs include performance reports, requested changes, and updates to various plans.

Project baseline is the initial plan which is used to measure real performance of the project against the intial schedule.

Unlike conventional forms of financial management, cost management has a backbone effect in any kind of project management as not only does it ensures efficiency in terms of costs, but also efficiency in terms of time and output. The aim to incorporate cost management in organizational operations especially when planning outputs or evaluating viability of a project, cost management helps giving out result oriented indicators that help in decision making that can reduce the level of risk of misjudgement (Richman, 2002). That said, cost management is based on a lot of assumptions, presumptions and fluctuating factors that may implicate the indicators given out by existing cost schedules. This calls for cost schedules to be flexible and keep enough room to accommodate any instability or unforeseen changes and also calls for making certain assumptions so that variables that can fluctuate at a high rate can be stabilized when making calculations.

Monitoring and control activities are essential components to effective project management (Chrissis, Konrad, & Shrum, 2011; PMI, 2013). The main purpose of monitoring and control activities are to having an understanding of project progress/performance against the agreed upon plan, identify potential risks, provide accurate forecasts, and to ensure corrective actions are taken when necessary (Chrissis et al., 2011; PMI, 2013). Successful cost and schedule control involves much more than merely monitoring project progress and costs, it involves thorough analysis of the data (Kerzner, 2013, p. 738). One of the most effective tools for performance measurement, monitoring, and control is earned value management (EVM); a powerful technique which employs quantitative data to objectively monitor and control project progress (De Marco & Narbaev, 2013).

costs, the time, costs, and performance of the project are all interrelated. Therefore, changes made

The CHAOS studies found the average cost overrun (the additional percentage or dollar amount by which actual costs exceed estimates) ranged from 180 percent in 1994 to 56 percent in 2004; other studies found overruns to be 33-34 percent.