Chapter 8Managing Projects.pptVIP

8-* Payback Capital Recurrent Costs Recurrent Revenues Additional Revenues Cost Avoidance Cost Savings Payback=(Capital-Costs)/Revenues Estimate Classification Type Accuracy Purpose Proposal ± 50 % Appraisal viability to start feasibility study Budget ± 20 % Appraisal viability to start systems design Sanction ± 10 % Appraisal viability to approve project Control ± 5 % Measure progress, assign resources Tender ± 2 % Prepare tender Earned Value Management Volume (MHs) Time BCWS T BCWS: Budgeted Cost of Work Scheduled Cost Variance ACWP ACWP: Actual Cost of Work Performance t BCWP BCWP: Budgeted Cost of Work Performed Resource variance Volume variance 8-* Qualitative techniques Fit with organizational goals and objectives Fit with competitive necessity for sustainability Fit with existing product or service range Fit with available resources Fit with existing competencies Fit with desired future competencies Fit relative to competitor direction Fit relative to risk quotient Fit with other innovation projects, ongoing or planned 8-* Qualitative Techniques Criteria Weight Score W.Score Fit with mission 5 3 15 Impact on objectives 10 4 40 Impact on indicators 10 2 20 Fit with competencies 7 5 35 Fit with skills 5 5 25 Level of Risk 10 4 40 Total Score ? ? 175 8-* Project Innovation Portfolio and Project Management Portfolio Management Project Management Teams Individuals Teams Skills Learning Review Goals Statements Requirements Strategies Measures Results Status Scorecard Trends Innovations Stimuli Creations Problems Ideas Projects Specification Ranking Schedules Deployment 8-* Project Tools Concurrent engineering Quality function deployment (QFD) Buyer utility mapping Rapid prototyping 8-* House of Quality 8-* Buyer Utility Map 8-* Summary Outline the key stages of a project life cycle Understand the types of investments necessary for projects Explain the importance of risk management in projects Construct a simple cost–benefit analysis for a project Understand