Pm567 Quiz 1 Essay

Every company relies on accurate budget estimates in order to provide the correct amount of allocated dollars in a budget plan that the company develops. Most companies develop budgets that look at least two years into the future. Each company is different, however typically most expect their projected budgets to be within 10% less or 25% more of the projected budget (Schwalbe 281). In order to do this, managers must allocate project costs to individual work items over the lifetime of the project. Project managers will create a cost baseline (time-phased budget) in order to measure and monitor the performance of their projects over the projects duration. Any changes or updates that are needed should be changed and reflected in a newly updated budget. Real time budget updates are vital in order to avoid financial problems. Ultimately, budgeting provides a prediction of the projects funding requirements. This article will go into detail about the best practices of determining a budget, and how they can be innovated for a better approach in the future.

Cost performance index (CPI) and schedule performance index (SPI) can also be included which gives the work efficiency that has been accomplished. If CPI =1.0 then it is a perfect cost performance. If CPI 1.0 the project is being less accomplished than predicted cost. If SPI = 1.0 we have perfect schedule performance. If SPI < 1.0 then project is moving at slower rate than planned. If SPI > 1.0 then project is heading at a faster rate than what is planned. The performance index can also be included with cost and schedule performance index which is useful in trend analysis.

Monitoring the status of a project using S-curves becomes a simple tracking problem. At the conclusion of each given time period (week, month, or quarter), we simply total the cumulative project budget expenditures to date and compare them with the anticipated spending patterns. Any significant deviations between actual and planned budget spent reveal a potential problem area.

KPI can make everything easy to recognize and survey. The employer is able to know performance for each employee and rewards them fairly and equally with different rates such as increment and bonus. From visibility on expression and strategic target, the employee can know their limitation and weakness. The employee should put more effort to achieve their particular goal which set by the employer.

Project management is to forecast and track costs to avoid cost overruns. Poor management leads to rising cost. Effective project management identifies such possible sources of cost overruns early and mitigates their effect. This paper explains the underlying causes of project cost overruns and provides some cost estimating methods used to avoid the overruns in the project.

Often used measures of performance are the PCIs, which relate the natural tolerance limits of a process to the specification limits. In practice, Cp, Cpk, Cpm are some of the broadly used PCIs.

PMI (2013) sees a methodology as a system of practices, procedures, techniques and rules. With project management methodology it is seen as a documented and discoverable set of policies, process,

In project management, performance measurement is a tool or mechanism for effective management and process improvement. Notably, the selection of an effective and appropriate performance measurement is crucial and based on various factors such as the decisions they will support and the people to use it. The suitability and efficiency of the performance measures is also affected by how they are effectively integrated into the benchmarking system. This is because performance measures need to be effectively integrated both vertically and horizontally. The vertical and horizontal integration enables the performance measure to achieve balance and offer a total assessment of the project management. The performance measures should identify the specific population to be assessed, the source of data, and the period of time for the measurement. There are various performance measures such as Gantt Chart, Balanced Scorecards, and Competitive Benchmarking.

Project success is measured by the success or failure of a project. Factors constituting the success criteria are commonly referred as the key performance indicators or KPIs (Toor & Ogunlana 2009). Following Toor & Ogunlana (2009), we are using these key performance indicators (KPI) as project success criteria in the current research.

When a project is undertaken, typically a client and project manager will identify the specific constraints, and metrics and Key Performance Indicators (KPIs) that must be measured by a project dashboard to track the success of a project. These variables may include project "time, cost, quality, risk mitigation, safety, aesthetic value, etc" (Kersner 2011). "Throughout the life of the project, metrics may become KPIs and vice versa," such as when the need to meet benchmarks regarding the time of specific project components become critical to the financial viability of the project (Kersner 2011). Not meeting deadlines is one of the main reasons that projects run over-budget. A project dashboard facilitates accountability and keeps the participants focused on the long and short-term goals of the project. It allows them to edit aspects of the project when costs run the risk of spiraling out-of-control due to changes in the external environment.

Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

Project Manager will be responsible for this and measure this using Gantt charts, and by using tools/techniques.

Project Management is the art of arranging, sorting out, spurring, and controlling resources to attain specific objectives. A project is a brief endeavor intended to deliver a unique product, service, attempted to meet extraordinary objectives and goals, commonly to achieve helpful change or included quality.

Project management is the application of knowledge, skills, tools and techniques to project activities to meet the project requirements. Project management is practised through application and integration of various processes.

Hence, to face the high pressures of the global competition is a multifaceted challenge for firms. Therefore, firms are constantly doing research for finding new methods for improving their SCP. The SC management is a broader concept and the overall success or failure of the firm is fully depends upon SCP. Within the country, the postharvest wastage percentage of produced farm products is very high due to poor SCP. Hence, there is strong need of proper and high quality of SCP to minimize these wastage losses. And, this will lead to cut down the overall cost, leads attractive final product, better sale and high return on investment. Here, the plan is to calculate these aspects on the basis of selective groups of key performance indicator (KPI).