This preview shows page 1. Sign up to view the full content.
Unformatted text preview: . Usually, even on projects with substantial changes, the changes do not come all at once. Quantification and productivity variance usually show up continuously as the work of the project unfolds. Consequently, replanning should be assumed to be a continuous process, from developing the original plan until late in the project life cycle. It is one of the project manager's most important duties to ensure that this replanning and variance documentation job is done effectively. In conclusion of this section on variance transactions, it is necessary to point out that anytime variance transactions are entered into the example project database, you need to remember to update the database for the same reason you need to update the database after you enter progress transactions as explained in a previous section. You do this by clicking on the Variance Update control button on the Main Menu. Page 103 Figure 3-14. Qty/Mhr Variances by Work Package Number. Page 105 Chapter 4— Project Performance Evaluation
Before we begin the discussion of the main topic of this chapter, it will serve us well to again recall the subdivision of project management into project planning and project execution introduced in Chapter 2. Project planning was covered in Chapter 2, and we began discussing project execution in Chapter 3. Recall that project execution was subdivided into five activities: 1. Cost accounting 2. Progress measurement 3. Variance tracking and change control 4. Performance evaluation 5. Productivity measurement We covered the first three of these in Chapter 3. We will need two more chapters to cover the last two activities of project execution. These are activities that occupy much of a project manager's time. Project planning, while guided by the project manager, is largely performed by others on large projects. While the project manager and his immediate staff work closely with those who frame the project specification, on large projects estimators and schedulers, working under the direction of the project manager, actually develop the plan. Page 106 During project execution, cost accountants working under the direction of the project manager perform the cost accounting and often the progress measurement functions. While cost accountants often discover situations that lead to changes in the contract or the quantification of work, the same personnel that developed the project plan in the first place primarily do variance tracking and change control. The project manager guides the variance tracking and change control and approves all changes. The project manager also negotiates change orders with the client. This negotiation process is usually done with a view toward covering as many of these changes as possible with change orders. In this chapter and the next, where we discuss performance evaluation and productivity measurement, we focus on the information project managers need to make decisions, what kinds of decisions they make, and what impact these decisions have on projects. 4.1— How Is Performance Evaluated? Performance Evaluation is that elem...
View Full Document
- Spring '10