Amacom - Modern Project Management (Ocr) - 2001 ! - (By Laxxuss)

Amacom Modern Project Management(Ocr 2001(By Laxxuss)

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Unformatted text preview: formance. It is less common, but possible, to have a project with good schedule performance but poor cost performance. Unfortunately, it is all too common to see projects with both poor cost performance and poor schedule performance. It seems that poor cost performance begets poor schedule performance, and vice versa. Only experienced project managers who understand their projects and project management techniques thoroughly stand any chance of bringing in a truly large project with good cost and schedule performance. 6.3.3— New Variance Transactions We could, of course, expand the variance transactions. On a real project there would probably be more than just three variances as we currently have in the example project database. However, Page 151 we have already devoted enough space to expansion of the database. Moreover, the new cost and progress transactions that we have already entered will be sufficient to allow us to see the different views manifest in several of the project reports. 6.4— Expanded Budget And Cost Reports Before we construct an alternate view (hierarchy), we should produce some cost and budget reports based on these new expanded transaction lists that we can compare with the reports we will be getting with our alternate view when we create it in the next section. Figure 6-10 shows an updated version of the Cost Comparison Report and Figure 6-11 shows the new Status Report. From the Cost Comparison Report we see that the example project has expended 112% of its total cost budget, and from the Status Report we see that the project is 93% complete. So we can assume the example project is now in its last stages with the new expenditure and status transactions we have entered. Also from the Status Report we can see that, even though the example project has expended 112% of its cost budget, it has expended only about 103% of its labor-hour budget. Moreover, we see that it has expended only about 95% of the forecasted labor-hours, so a good deal of the labor-hour overrun is expected as there is evidently a productivity variance(s) since the forecast labor-hours for the project exceed the control man-hour budget by 400 hours. If we check one of the Qty/Mhr Variance reports, we see that indeed there is a 400-labor-hour productivity variance against Task 2 of the Siteprep work package. We now turn our attention to creating an alternate view of the example project by constructing an alternate hierarchy for it. (text continues on page 154) Figure 6-10. Updated Cost Comparison Report for example project. Figure 6-11. Updated Status Report for example project. Page 154 6.5— The Organizational Breakdown Structure (OBS) On many projects, the organization performing the work has an organizational structure significantly different from the WBS structure. This is especially true for companies that employ the matrix management approach. These companies are often organized around crafts, products, or technologies. For example, systems integration firms are often organ...
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This note was uploaded on 01/11/2011 for the course ACC 9 taught by Professor Yeetan during the Spring '10 term at Sunway University College.

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