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

E they are estimating errors for instance on the

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Unformatted text preview: ract or agreement that governs the scope of the work. It is important that the reader understands that we are now talking about the agreed scope of work. This may be different from the real scope of work, as we now explain. Changes in the scope of the work invariably involve changes in the quantification of some of the work packages. In fact, changes in the scope of the work often cause the addition of new work packages to the WBS. However, quantification deviations often arise that are independent of changes to the scope of the work. The scope of the work may remain unchanged, and yet there may need to be changes to some of the quantifications. Quantification deviations are deviations that arise because of errors in the quantification process (i.e., they are estimating errors). For instance, on the example project, the Concrete work package has been quantified as 290 cubic yards of concrete. As the concrete workers begin putting up the forms into which Page 87 they will pour the concrete, it may become apparent that quite a bit more concrete is going to be needed. This is an example of a quantification deviation. Instead of 290 cubic yards, 360 cubic yards may be required. Productivity deviations arise from not accomplishing the work at the planned labor-hour per unit rate. The term productivity deviation includes all deviations that do not affect the quantification, such as deviations caused by late delivery by vendors or subcontractors and unforeseen scheduling conflicts. All of these can result in the productivity (output per labor-hour) being lower than planned. Consequently, all deviations that do not involve any quantification changes are considered to be productivity deviations. If there are quantification deviations, then the real scope of work is different from the agreed scope of work. In practice, there is usually some time delay between the discovery of quantification deviations and their approval by the client and by project management as changes to the scope of the work. This is often caused by negotiations as to who is responsible for these errors and who will eventually pay for these errors. The outcome is determined by the type of contract or agreement the client and project management have entered into. Some quantity deviations are never approved by the client and as such do not become change orders. Project management needs to distinguish among the causes of deviations from the plan for two reasons: first, management needs to understand why the work is not progressing as planned in order to know how to deal with the problem properly. Productivity and quantification deviations are dealt with in quite different ways. Applying pressure to increase productivity when the problem is errors in the quantification may introduce productivity problems where they previously did not exist. Second, project management must distinguish among causes for deviations in order to keep the baseline current. This means providing an up -to -date account of the real scope of Page 88 work and an audit trail of how the original baseline evolved into t...
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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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