Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers’) original estimates. Furthermore, all cost overruns must come out of the functional managers’ budgets, whether they be overhead or otherwise, not the project budget. What are the advantages and disadvantages of this approach?

Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers’) original estimates. Furthermore, all cost overruns must come out of the functional managers’ budgets, whether they be overhead or otherwise, not the project budget. What are the advantages and disadvantages of this approach?

Name: Alpha Company has implemented a plan whereby functional managers will
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers’) original estimates. Furthermore, all cost overruns must come out of the functional manage

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

You are managing a construction project that is currently being initiated. Youmet with the sponsors and several important stakeholders, and have startedto work on the preliminary scope statement. You’ve documented several keyassumptions that have been made, and identified project constraints andinitial risks. Before you can finish the preliminary scope statement, you mustmake a rough order of magnitude estimate of both time and cost, so that thesponsor can allocate the final budget. What’s the range of a rough order ofmagnitude (ROM) estimate?A. (-10%) to +10%B. (-50%) to +100%C. (-50%) to +50%D. (-100%) to +200%
Give an explanation of how earned value management (EVM) may be used to keep expenses under control and monitor the overall effectiveness of a project, and then hypothesise as to why it is not utilised more often. How can one determine if the data for cost variation, schedule variance, cost performance index, and schedule performance index are healthy or unhealthy? What are some basic rules of thumb?
You are working on a manufacturing project having a budget of PKR 3,600,000 and expected time of its completion is one year. There is an ideal condition that your budget and work are evenly spread across the duration of the project that is twelve month. At the end of forth month, the senior management has called a meeting and invited all the stakeholders to brief about the status of the project. You being the PM of this project is giving the presentation to all the attendees and informed that project is on schedule and PKR 1,800,000 have already been spent on the project. Required: Calculate Cost and Schedule Variance What is SPI and CPI of the project? Estimate at completion and Estimated time to complete?
You are working on a manufacturing project having a budget of PKR 3,600,000 and the expected time of its completion is one year. There is an ideal condition that your budget and work are evenly spread across the duration of the project that is twelve months. At the end of the fourth month, the senior management has called a meeting and invited all the stakeholders to brief about the status of the project. You being the PM of this project are giving the presentation to all the attendees and informed them that the project is on schedule and PKR 1,800,000 has already been spent on the project. Calculate Cost and Schedule Variance What is SPI and CPI of the project? Estimate at completion and Estimated time to complete?
which two methods of evaluation can be used in a cyberattack program proposal that will include one type of financial evaluation and one other evaluation method and how the methods will be selected.
You have been hired by a contractor, who wants you to manage a constructionproject for one of their clients. The project team has been working for twomonths, and is 35% done with the job. Two of your team members come toyou with a conflict about how to handle the ongoing maintenance for a pieceof equipment. You know that they can safely ignore the problem for a while,and you’re concerned that if your project falls behind schedule before nextweek’s stakeholder meeting, it will cause problems in the future. You tell thetwo team members that the problem really isn’t as bad as they think it is, andif they take a few days to cool off about it you’ll help them with a solution.This approach to conflict resolution is known as ______.A. WithdrawalB. CompromiseC. SmoothingD. Forcing You are a project manager for a software project. As you are defining thescope of the work you need to do, you sit down with all of the project’sstakeholders and record all of the requirements you can get from…
Why do you think John was hesitant to quote an exact price during the first meeting?1.2 Why did Ken need an indication of the cost for the total project before he could start theproject? 1.3 Was it a good idea to sign a contract for all construction work rather than to break it up intoseparate phases (with separate contracts) for different parts of the construction work? 1.4 Why would John require milestone payments during the construction phase rather than asingle payment once the construction has been completed? 1.5 What assurance would Ken have if he discovered during the guarantee period that the roofleaks when it rains?
An anonymous graduate of SJU has just given the university a $12 million donation. The donor said that the money could be used anyway the University sees fit. The Task Force on Major Gifts has asked you to submit a proposal. How do you think the money should be spent? You can portion it out to various projects or use it for one project.Use memorandum format and address it to the Task Force on Major Gifts.
The IT director opened the department staff meeting today by saying, “I’ve got some good news and some bad news. The good news is that management approved the payroll system project this morning. The new system will reduce clerical time and errors, improve morale in the payroll department, and avoid possible fines and penalties for noncompliance. The bad news is that the system must be installed by January 1st in order to meet new federal reporting rules, all expenses from now on must be approved in advance, the system should have a modular design if possible, and the vice president of finance would like to announce the new system in a year-end report if it is ready by mid-December.” Tasks Based on your understanding of the Chapter 2 Tilley material; 1. Why is it important to define the project scope? What approach could help define the scope of the payroll project in this case? 2. Review each constraint and identify its characteristics: present versus future, internal versus…
You are in charge of implementing the internal website your company will use to display its event calendar. Although you have limited ability to make project choices and must bargain with the functional manager to obtain the resources you need for your project, it is your responsibility to organise activities, resources, equipment, and information on the project. Which of the organisations listed below do you work for? Group of answer choices Composite structure Strong matrix Weak matrix Balanced matrix
In a career costing scheme, what paper is prepared to accumulate costs on each individual job? What kinds of expenses are mentioned in the documents?
How can stakeholders' involvement in requirement analysis help ensure project success, and what challenges may arise in this process?