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

It is presented within the context of the following

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Unformatted text preview: • The Activity method • The Indirect method These statusing methods are all applied to the tasks within a work package to first compute a percent complete for each task. From the percents complete for all the tasks within a package, a weighted percent complete is calculated for the work package. This weighted percent complete is the percent complete for the work package. The reason for this weighting is that the tasks within a work package do not necessarily have the same labor-hour budgets. Consequently, some tasks have more work content than others. This has to be taken into account when calculating the percent complete for the work package. The formula for computing the weighted percent complete for a work package is given later in this chapter. It is presented within the context of the following example of statusing using the quantity method. The quantity method reduces statusing to counting. It is used when the output of a task consists of a number of identical (or very similar) products or operations, such as preparing 27 Page 77 reports or pouring 86 columns of concrete or writing 2,000 lines of computer code. This is perhaps the most desirable statusing method because it is based on the simplest assumption-that it takes identical time to accomplish identical pieces of work. If the task consists of producing 100 items and 37 of them have been finished, the task is said to be 37% complete. Suppose now that the percents complete for each task in a work package have been computed using this quantity statusing method. The next step is to combine these individual percent complete figures for each task to get a work package percent complete. This is done by using the following formula: and where the summation is taken over all tasks in the work package. This formula uses the laborhour budgets for each task divided by the labor-hour budget for the work package as the weighting factors in the summation. The milestone method is often used to status work of subcontractors and, in fact, any work that does not lend itself well to the quantity statusing method. The milestone method is perhaps the least desirable statusing method because it is based on a subtle but often erroneous assumption, namely that it is possible to divide the work of a work package into a sequence of milestones and to determine the relative weight the completion of each milestone contributes to the status of the work package. Users of the milestone method often do not (or cannot) correlate the milestones to the tasks within a work package in a meaningful way. Often, the milestone estimates build a level of Page 78 subjectivity into the statusing of the package, which is what the statusing method is trying to eliminate in the first place. To see how this might work, assume that a work package is contracted out to a subcontractor and that an agreement (perhaps a contract) is reached with the subcontractor regarding how the percent complete (and, hence, the progress payments) for this work package is to be calculated. The p...
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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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