COWI2020
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== Benefits Realisation Management == | == Benefits Realisation Management == | ||
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| + | == Project Management: Cost vs. Price == | ||
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| + | Regardless of the size of a project, the associated costs should be highly managed to maintain the optimal price in which we want to sell it. The relationship between cost and price, and the two separately, proves high importance related to project management. | ||
| + | Cost, price, profit and quality are highly important in decision making for pricing a project or select which costs are avoidable and which ones are necessary. These factors determine the project’s quality and profit, and are directly connected to the relationship between cost and price (for every project), and the costumers may evaluate the value of a project from its price and the costs necessary to obtain the optimal quality outcome. | ||
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| + | An overall costs structure of the project is necessary to plan to complete a projects within the approved budget limit (frame). Therefore, the project should start by; estimating the costs, creating a budget, developing a plan of funding financing and managing, and develop a plan of costs control (see figure). | ||
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| + | The efficiency of Project Cost Management is improved significantly if the project’s scope is well defined from the beginning. If the project is not well defined, the level of uncertainties connected to the project increase, thus the tools for Project Cost Management is harder to define and changes may apply to the estimates. | ||
Revision as of 16:27, 28 February 2020
Contents |
SWOT Analysis
The SWOT analysis is a tool that provides a basic framework for situation analysis. It generates lists or inventories of strengths,
In project and program management the SWOT analysis can be carried out in all phases of the life cycle in order to monitor and manage internal and external environments. In portfolio management the SWOT analysis can be used to identify new projects, although, there is no single guide or manual on how to perform a SWOT analysis. The conventional SWOT analysis is usually presented in a 2X2 matrix which generates four boxes of inventories - one for strengths, one for weaknesses, one for opportunities and one for threats. See figure to the right.
Stakeholder Management
Stakeholders are organisations and persons who are actively involved in a project or affected by a project at some stage during its
The growing focus on stakeholder analysis is a clear reflection of the general tendency to recognise how stakeholders can influence decision-making processes.Based on the analysis of the stakeholders these can be mapped into overall categories, which allows the managers in an organisation to take action. The most commonly used stakeholder map is the power/interest matrix, seen in the figure to the right, which gives an easy and simple overview of what the different categories require with regards to what their needs are and how much they are able to influence the project.
Benefits Map
Benefits Map helps mapping possible benefits related to different projects and/or programs.
The Benefit Mapping Process is usually divided into three important stages; identification of benefits, execution of benefits and the sustain of benefits. This means that the process is not only something that needs to be implemented from the start, but carried out throughout the project and even after project implementation.
Earned Value Analysis
An Earned Value Analysis (EVA) used quantative analysis techniques and object performance indicators to measure both work progress and related cost to determine the overall efficiency of a respective activity, work package or project. To be able to do this, the analysis takes into account the scope of the project, the schedule of work and the work undertaken. This is to map the current situation, how much resources that has already been used and how much recourses that is necessary to finalize the project.
To successfully execute an EVA the following steps needs to be done:
1) Time-based schedule
2) Work Breakdown Structure
3) Cost Assessment
4) Progress measurement
5) Responsibility/ authority matrix
6) Monitoring and review process
Value Stream Mapping
Value Stream Mapping is a tool from Lean Construction that has a significant impact in revealing the waste of production. The basic idea behind Value stream mapping is to provide a visual overview of the value stream in the production or organization that can help the organization improve the value stream by eliminating waste. The value stream analysis provides a clear view of the production from raw materials to finished product. The survey provides a better understanding of how the flow of materials and information flow through the value stream.
VSM tool has shown to improve communication between the subjects through involvement and collaboration, enabling a structured method to work on continuous improvement and to solve communication problems in projects.
Benefits Realisation Management
Project Management: Cost vs. Price
Regardless of the size of a project, the associated costs should be highly managed to maintain the optimal price in which we want to sell it. The relationship between cost and price, and the two separately, proves high importance related to project management. Cost, price, profit and quality are highly important in decision making for pricing a project or select which costs are avoidable and which ones are necessary. These factors determine the project’s quality and profit, and are directly connected to the relationship between cost and price (for every project), and the costumers may evaluate the value of a project from its price and the costs necessary to obtain the optimal quality outcome.
An overall costs structure of the project is necessary to plan to complete a projects within the approved budget limit (frame). Therefore, the project should start by; estimating the costs, creating a budget, developing a plan of funding financing and managing, and develop a plan of costs control (see figure).
The efficiency of Project Cost Management is improved significantly if the project’s scope is well defined from the beginning. If the project is not well defined, the level of uncertainties connected to the project increase, thus the tools for Project Cost Management is harder to define and changes may apply to the estimates.
