A Project On Value Management Essay

Planning is a function that is employed by every organization in projecting the future outcome of the firm. Successful firms achieve their goals through the use of different types of budgets. These budgets include, production budget, sales budget, labor budget and expenses budget. These budgets also show the targets that should be achieved by the firm within the budgeted time plan.

There will be deadlines set for the VP of Tech for on development estimates, and another deadline for the PM on Project Plan and Gant Chart

Part of the Earned Value Management technique is the monitoring of variances from the approved baseline of costs and schedule. The variances are useful in determining the overall project health and status.

| a) Using the traditional method of assessing project performance, we would be able to see if we have been over or under budget and timelines, and we would only have this information once the project has been completed. However, with the traditional approach would not be able to effectively track project performance at a task level and at any given point in time. Due to this, decisions that may need to be taken during the project or identifying issues or project health during project execution is more difficult using traditional approaches than using the EVM process. b) The EVM process is based on tracking the schedule and cost performance at a task level on an on-going basis, that will help determine project task level and overall status with effective indicators that would help make project related decisions. In the EVM process, a baseline plan is made for project costs and timelines and then these are tracked against actual costs and work completion to find out the cost variances and schedule variances and cost and schedule indexes, that will help determine how the project is performing on these parameters. If the variances are in negative or if the indexes are less than 1, it means that the task or the project is behind on cost and schedule and

Define value creation and the components that can be used to determine value creation per unit. How is value creation related to competitive advantage?

ERM is applied every level and unit across the company and consider the risk at entity level;

Costco is among the leading global retailers which provide customers a wide range of merchandise, ranging from small to well-known brands. The company began operations in 1983. Over the years, Costco has been a retailer in low cost membership-only leader, in warehouse club of merchandise. Moreover, Costco does not offer frills warehouse business models as its competitors do.  Costco’s major competitors are BJ’s Wholesale Club and Sam Club (Costco, 2010).

In this case, we need to investigate the status of the MED-X implementation project. The method we adopt is EVM, Earned Value Management. Earned Value Management is a project management technique for measuring project performance and progress. We measure the project performance not only as a whole, but also by performance of its components.

Description of how Woolworths manages quality and determine how effective Woolworths is at managing quality.

Value engineerinf is a systematic, low-cost approach to assessing the “value” of a project.mainly its helps to projects to gain the following benefits.

Monitoring and control activities are essential components to effective project management (Chrissis, Konrad, & Shrum, 2011; PMI, 2013). The main purpose of monitoring and control activities are to having an understanding of project progress/performance against the agreed upon plan, identify potential risks, provide accurate forecasts, and to ensure corrective actions are taken when necessary (Chrissis et al., 2011; PMI, 2013). Successful cost and schedule control involves much more than merely monitoring project progress and costs, it involves thorough analysis of the data (Kerzner, 2013, p. 738). One of the most effective tools for performance measurement, monitoring, and control is earned value management (EVM); a powerful technique which employs quantitative data to objectively monitor and control project progress (De Marco & Narbaev, 2013).

It is so important for a company to decide what type of approach they want to take when they are marketing their product/services. It is first important to understand the different approaches that make up the 4-P approach to marketing versus the value approach. When using the 4-P style the company will most likely be concerned with the price, product, promotion, and place. The price will be a major focus point because it is important that you can compete with any competition that may be selling the same type of product you are offering. Likewise, it is important to know whether if in the future a price hike may be needed, will your product survive the inflation, or will customers choose a different brand. When thinking of promoting your product, where is the best venue is going to be the key question. Is the product geared towards teens/young adult or middle aged individuals are common questions? If it is for teens and younger adults where do they like to spend their time? Areas such as skate parks, movie theaters, or advertising on television during programs geared towards this age range would be appropriate venues. Alternately advertising for the middle aged demographic could be during sporting events such as hockey or football, or places like popular restaurants. The product aspect of the 4-P approach deals with the physical product or service you are providing. This is a similar aspect for both companies that use 4-P style and also with companies that take the

External customer requirements may be gathered and transformed into specific, actionable process improvements using quality function deployment, a well- structured product development process which dictates what the market requires into a program to create, manufacture, and deliver it. However, teams should collaborate to arrive at a common understanding of the customer needs and determine the appropriate technical requirement of each stage. As soon as customer expectations are met, customer satisfaction will improve, resulting in a take-back of market share and an increase in revenue.

There are three basic components to EVM and EVM is well known for its use of acronyms. Planned Value (PV) is the scheduled cost of the work in a a specific given time. This is also known as Budgeted Cost of Work Scheduled (BCWS). This is developed by firstly taking the work that must be completed for a successful project outcome and this work is estimated, regardless of whether it is internal or outsourced. This estimate is then converted into a monetary value which reprents the specific currency portion of the ‘planned value’ of the specific task, which gives an idea of that the task has a worth to the business and is then scheduled based upon when the task is actually scheduled to happen within the project plan. Timing and amounts are then set out and the Planned value for the task is set. A project change being implemented is the only way this can be changed. The next component would be the Actual Cost, which is the actual amount of money which has been spent to date. This is also known as Actual cost of Work Performed (ACWP) and is the number in which finance is always most concerned about. This represents the actually monetary cash value that the business has to spend on the project. Actual cost is determined using the accounting system’s method for accumulation of cost. It can be helpful to collect costs established on a project account number or change number correlated with the costs and this number might change each day based on whether the project work was

I was involved in a project that exposed the myths of EVM. The project manager failed to understand the importance of EVM. The organization had contracted to have six storage containers erected in the back of the company. The initial budget was $50, 000 dollars with a completion date of 30 days within contract agreement. The WBS provided a breakdown at each level, the amount of work to be performed, and the cost at each level. It is known that many projects require a more in depth research of what is required for project success.