Assignment 1
Assignment 1
Assignment 1
Q-2: Where would you be able to bring about cost saving as a program manager for a
company? Discus these using the standard project constraints.
Proper Estimates for Sound Project Cost Management
It may sound like ABC stuff in managing project costs, but many projects that go over-budget
can trace their problems back to the initial planning stages. Either the project manager
underestimated the number of hours a project would take, or he allowed the client to shave
off too many hours in order to lower the price and make the sale.
When you build a proposal, take extra care in estimating your project hours. If possible, pad
the estimate to give your team a little wiggle room in case things go wrong. If the client
pushes back and tries to reduce the project cost, make sure they understand that less hours
may mean an unfinished project.
Choosing Right People is Key to Managing Costs
Not everyone is right for every task. Even though you try to hire well-rounded team
members, there will always be areas where one outperforms the rest. Know your team’s
strengths and weaknesses. Be familiar with their work habits and attitudes, so that you can
accurately predict how long it will take someone to do a particular task.
This doesn’t just apply to saving on project costs, either. If you find that you’ve got extra
hours, you might be able to assign a task to a newer team member as a learning experience.
It’ll take a bit longer, but you’ll have given him valuable on-the-job training.
Project Control via Earned Value Analysis
Many project managers rely on the “planned vs. actual” system, which can predict how
timely a project is, but says nothing about budget management. Earned Value Analysis is a
much more effective method. It uses three factors: cost, schedule, and scope, in order to
predict completion dates, future team performance and the likely end cost.
The system isn’t all too hard to adopt. Many project management tools use Earned Value
Analysis as a standard project control feature, and automatically generate reports based on the
data that your team puts in (hours billed, tasks, project schedule, etc. The reports can give you
a priceless snapshot of how things stand in terms of project cost and schedule performance.
Less important things come second
When one of your team members gets bogged down in a task, ask yourself this question: “Is
it essential to the project as a whole?” Many project managers employ the “critical path”
method, where there is a “chain” of tasks that are an absolute requirement for the project to
be considered complete. If the problem is for a secondary (or even tertiary) task, you may be
better off shifting to something else and coming back to it later—even if it means setting a
whole chain of secondary tasks aside.
Q-3: Discuss ways in which scope creep occurred on project with which you
have been associated. Was the project manager able to reverse scope
creep? Is it possible to reverse scope creep? Defend your yes or no answer.
What is Scope Creep in Project Management?
We all know that scope defines the work required in a project. And that managing scope is
part and parcel of a project manager's role, especially once the project is underway and scope
creep begins to rear its head. Which brings up the question: what is scope creep in project
management?
What is Scope Creep?
Scope creep (sometimes known as “requirement creep” or even “feature creep”) refers to how
a project’s requirements tend to increase over a project lifecycle, e.g. what once started out as
a single deliverable becomes five. Or a product that began with three essential features, now
must have ten. Or midway through a project, the needs of customers change, prompting a
reassessment of the project requirements. Scope creep is typically caused by key project
stakeholders changing requirements, or sometimes from internal miscommunication and
disagreements. This post tackles several ways it creeps up on projects along with tips on how
to nip it in the bud. While it might result in project delays, roadblocks, or going over budget,
scope creep is not necessarily a bad thing. Remember that change is inevitable. Customer
needs do change over time and delivering a project that answers their needs often means
altering the scope. Scope creep is therefore a reality that every good project manager expects
and plans for.
How to Manage Project Scope
Changes to scope can be either uncontrolled, resulting in scope creep, or controlled, resulting
in documented changes to the project requirements. Managing scope creep then boils down to
controlling those changes in scope via a change control process. This involves:
Monitoring the project's status and baseline scope
Comparing actual work performance measurements with the baseline scope using
variance analysis: "How different is the current project from the original plan?"
Determining the cause and the degree of the changes found
Deciding on change requests, i.e. whether corrective or preventive action is needed
Managing all change requests and recommended actions (whether corrective or
preventive actions) via the Perform Integrated Change Control process
If approved change requests affect the project's overall scope and cost baseline, then
the scope statement, Work Breakdown Structure (WBS), and/or cost baseline is
updated and sent out to stakeholders. In short, all changes are processed, documented,
and communicated properly.