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

If we do this the formula just presented for

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Unformatted text preview: roject manager and the subcontractor agree that there will be four milestones. When the first one is reached, the work package will be considered to be 30% complete. When the second is reached, it will be considered 55% complete. When the third is reached, it will be considered 80% complete, and when all four milestones have been completed, the task will be 100% complete. Next, suppose we want to status the tasks within the work package using the milestone method at a time when the first milestone has been completed. We want the computation to yield a work package percent complete of 30% because this was the agreed-upon value of the first milestone. We can achieve this by assigning a percent complete of 30% to each of the tasks in the work package. If we do this, the formula just presented for computing the weighted percent complete for the work package will yield a value of 30%, which is what we desire. So this is how we use the milestone method to status the tasks of a work package. The assumption here is that completion of the first milestone has the effect of causing each of the tasks in the work package to be 30% complete. A more favorable way of applying the milestone method is in the specialized case where the work package can be quantified by these milestones. In other words, each milestone represents a task in the work package, and, therefore, labor-hour budgets exist for each milestone. This way of using milestones for statusing ensures that there is a meaningful relationship between the milestones and the tasks, that is, the milestones are the tasks. In this case, the proper weight for each milestone is the milestone man-hour budget divided by the work package man-hour budget. When used in this manner, the milestone method is called the activity method. Page 79 The indirect statusing method is normally used to status indirect labor or support activities. It is also referred to as summary-level statusing. It is actually the assignment of a percent complete to a work package on the basis of the percent complete of some other element in the WBS. The indirect statusing method is probably best explained by means of an example. Assume that the project control staff support effort for the software part of a large system development project is lumped into a single work package and that the effort is estimated based on the assumption that it will be a constant effort throughout the project. If the software part of the project is 46% complete (not counting the project control staff work), then we want this project control work package to also be 46% complete. This situation is forced to happen by assigning the percent complete for the project control support staff work package to be the percent complete of a summary-level WBS element (control package) that is the parent of all software development work packages. If the percent complete for the project control support staff work package is to be the percent complete of this summary-level WBS element, then we must assign each task in the work packa...
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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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