Contingency

Once the project network is defined, we must build in the schedule contingency. A better approach is to wait until the schedule is laid out on the calendar, and any constraints have been established, and then include contingency. It is preferable to wait, especially if there are time related constraints, because the flow of activities may change when the constraints are included. The amount of time contingency that must be included is known from the risk analysis. The question at this point is...

Reasons for establishing projects

Projects are generally established for one of two reasons. In one case, there is an opportunity for the company. It could be an opportunity to get into a new market, to offer a better service to customers, to introduce a new capability, etc. This could be an enhancement, or something brand-new. But an opportunity exists to do something better or to do something different. We can establish a project to take advantage of this opportunity. Or, a project might be established to solve a problem....

Introduction to Project Management in Telecommunications

This introductory chapter describes the telecommunications industry value chain in order to look at the types of companies in which telecommunications professionals work. A number of typical projects that might be encountered in telecommunications are described. These projects will be subsequently used to illustrate project management concepts throughout the book, although the illustrations will not be limited to these projects. This chapter also introduces the general concepts of Project...

Inclusion of Contingency

What is contingency Contingency is the amount of money, or the amount of time, that the PM includes in the project budget, or the project schedule, to cover for the known unknowns, or risks. This is not an amount that is included due to a specific project activity. It is an amount that is over and above the activity budget. Why would anyone include additional money and time not shown to be needed by the project activities The answer to this is obvious, but because of the practices employed by...

Administrative Closure

Phases Telecommunications Project

Performance measurement documentation 2. Documentation of the product oi the project 1. Project archives 2 Formal acceptance Any loose ends are tied, and the project is essentially 'closed'. Although many team members are leaving the project, or maybe even have already left, the PM should get input from each of them on the lessons learned during the project, in order to help the next team to avoid the problems that this one faced. The intent is one of helping future projects - not to cast blame...

Depreciation is

A decrease in the value of an asset, as a result of wear or obsolescence 2. Allocation of the initial investment of an asset as an expense over the life of an asset For projects with capital costs, depreciation may be a factor in life cycle costing of the product. Let's look at four methods of calculating depreciation. Any of these may be used by companies to calculate depreciation. The project manager should check with Engineering Economics or Accounting to ascertain which should be used for a...

Critical Path

In the end we have a network of project activities, and we can see within the network a number of activity paths, each of which must be completed before the project will be finished. In our example we see four paths Besides the relative timing, we can also determine the lengths of the paths, and we can decide which path is the one that must be constantly on track in order to prevent the overall end date from slipping. This path is called the Critical Path. The critical path is defined as the...

Activity Duration Estimating Figure l Schedule Development

The WBS is a breakdown of the project into deliverable-oriented groupings. These groupings eventually turn into action items. The purpose of the WBS is to assess WHAT is to be done (Activity Definition), and WHAT is to be produced. It must include everything that is included in the project, whether it be something for the project - in fact, all the project management must be included,- or something to create the product. The WBS shows all of this - the WHAT of the project. But only the WHAT....

Including budget contingency

Contingency is the extra money or time that you build into a project to cover known unknowns - risks that you can predict and quantify. Recall from Chapter 3 that the project needs to include contingency time and also contingency dollars. In this chapter we are discussing budget, so contingency is in dollars. Contingency is included to cover for risks, which are known unknowns. As discussed in Chapter 3, contingency is calculated in the planning stage of the project by making a list of all the...

Statistical sums such as PERT

The team can assume that the numbers fall under a certain distribution curve, such as a Beta distribution. Then values can be calculated using standard formulae for the distribution. For example, average cost, and standard deviation of the cost can be calculated. Obviously the results are only as good as the selection of the appropriate distribution. Using a standard simulation technique, such a Monte Carlo (which implies using a computer program to avoid the need for intense manual...

Cost plus incentive fee

With this structure, the buyer and the seller agree to cover the sellers costs, but beyond that, they will share any cost overruns and under runs according to an agreed upon formula. This might be used when two companies are not familiar with each other, they need to work together to complete the project, and neither is certain that the other has a strong focus on enabling the completion. Perhaps this would be used in the case of a network move, which accompanies a corporate relocation to a new...

Matrix Organization

Matrix Organization

From Keith Faradale's Comprehensive Project Management From Keith Faradale's Comprehensive Project Management In the other extreme, the primary accountability of the project team members is to the project, with the role of the functional manager focused on support and career development of his employees. The team member's performance review, while usually officially within the framework of the functional department, is usually driven mainly by input from the PM. Most companies operate with a...