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Unformatted text preview: ntroduced changes, there may be changes in the quantity budget because the quantities were not estimated correctly originally. This gives rise to the "Control Budget." This is a corrected version of the budget that the project manager manages to. The client may or may not be responsible for paying for all of what is included in the control budget, depending on the terms of the contract (if there is a contract for the project). Finally, projects are not always executed with the same productivity that was originally estimated. This gives rise to the "Forecast." All of these concepts are defined carefully in the next two chapters. It is not important that you understand the details at this point. The idea here is to get a feeling for how the work of a project is subdivided into major components called control packages, how these control packages have various budgets, and how these budgets change over time. After the total example project control package in Figure 1-2 comes control package "Foundation" that is at hierarchy position "1." The foundation control package is a major component of work for the example project. Notice that the foundation control package has a different unit of measure from the Page 9 total project. Whereas the project is measured in square feet, the foundation control package is measured in cubic yards (CY) of concrete, that is, by the amount of concrete used to complete the foundation. From Figure 1-2 it can be seen that the WBS Listing of packages is much like the table of contents of a book. Notice that the control package "Structure" is at hierarchy position 2 and "Systems" at hierarchy position 3. Next, notice that the control package ''Foundation" contains the work packages "Siteprep" at hierarchy position 1.1, "Forms" at hierarchy position 1.2, "Rebar" at hierarchy position 1.3, "Concrete" at hierarchy position 1.4, and so on. The WBS Listing represents how the work unfolds in much the same way that the table of contents of a book represents how a book unfolds into chapters and sections and subsections. In addition to showing the structure of the program manager's plan for accomplishing the work, the WBS Listing also provides a brief description of each package in the WBS hierarchy. The project management theories, methods, and tools discussed in this book have a fundamental relationship to the project WBS: project management concepts that hold at the lower-level packages can be "rolled up" to higher levels of summarization (the control packages) and eventually to the "top-level" summarization, that is, the whole project. This rollup is a form of aggregation that holds for both values (amounts) and concepts. Figure 1-3 shows how such a rollup occurs. The report shown in Figure 1-3 is called the Budgeted Cost Listing . This is a report that expresses how the cost budget for a project is distributed over the various cont...
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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.
- Spring '10