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Unformatted text preview: d. You should update the summary level quantities in the example project database using the WBS Entry/Edit tool accordingly. We have assumed that Variance 1, which is a change order, occurred because the client decided to have 25,000 square feet of land cleared rather than the original 20,000 recorded in the Original Budget for the Siteprep work package. Consequently, the quantification of the Siteprep work package for the Client Budget is now 25,000, whereas for the Original Budget it still is 20,000. For Variance 2, the amount of concrete to be poured increased by 29 cubic yards, or 10%. Since the original quantification for the Concrete work package was 290, and there are no change orders that affect the Concrete work package, the Client Budget quantity remains 290, but the Control Budget quantity is now 319. Variance 3 is a productivity variance, so it does not cause any quantity changes. The question now is how to change the quantifications of the summary-level control packages that contain the Concrete Page 100 Figure 3-12. WBS Listing. Page 101 and Siteprep work packages. Since the Foundation control package, that is, the parent package for both the Concrete and Siteprep work packages, is quantified with a unit of measure of cubic yards of concrete, it makes sense to change the quantification of the Foundation control package to 319, also. But what about the top control package for the example project? In this case we assume that, even though all of these other quantifications have changed, the project itself is still best quantified as 5,000 square feet. It is often the case with changes in the scope of the work that the change itself is introduced at a summary level, and this drives what needs to be changed at lower levels. This is not the case with the variances we introduced for the example project, but it is nonetheless a common occurrence. Changes in the scope of the work at summary levels often cause the addition of new control packages and work packages. This can complicate the budgeting and scheduling of the project if these summary level changes are extensive. Variances provide an audit trail that shows how the client budget, target budget, and forecast evolved from the original budget. This audit trail can be displayed or printed out in two different ways. First, the Qty/Mhr Variance by Variance Number report (shown in Figure 3-13) can be used to list all the variances sorted by Variance Number. Second, the Qty/Mhr Variance by Work Package Number report (shown in Figure 3-14) can be used to list all the variances sorted by work package identifier. It is essential that the project manager ensure that an appropriate level of effort is expended on maintaining a meaningful variance audit trail. Maintaining such a trail is essential for obtaining meaningful performance and productivity measurement data. It is a function of project management that is often ignored, either because it is misunderstood or because of the amount of work it entails. On large projects with many changes, it often requires a level of replanning effort that approaches the level of effort required to produce the original plan. Page 102 Figure 3-13. Qty/Mhr Variances by Variance Number...
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