Project Selection
Financials
better
EAC = AC + (BAC-EV)
EAC = AC + [(BAC-EV)/CPI]
ETC = BAC EV
Earnings/Investment
Higher ROI is better
Payback Period = Time to
recover cost of the project
Lower payback period is
better
Cash Flow = Cash In Cash
Out
Network Diagram
boxes
finish date.
pass
LS ES:
Calculates
LF EF:
Calculates
pass
Lag Time: Inserted wait time
between activities
Lead Time: Overlapping
activities, also called
paralleling or fast tracking.
Lead In; Lag Out
Accuracy of Estimates
Order of Magnitude:-25% to
+75%
Budget Estimate:-10% to
Likely
+25%
Definitive Estimate:-5% to
+10%
Variance =
s2
, or [(P
O)/6]2
Sum of variances
Conflict Resolution
(Best to Worst)
1.Problem Solving: Also
called Confronting
2. Compromising: Solutions
satisfy both parties
3. Withdrawal: Postponing a
decision
4. Smoothing: Emphasis on
agreement
5. Forcing: One viewpoint at
expense of another.
Herzbergs Motivators
1. Schedules
1. Achievement
2. Project Priorities
2. Recognition
3. Resources
4. Technical Opinions
itself
5. Administrative Procedures
4. Responsibility
6. Cost
5. Advancement
7. Personality
6. Growth
Closing
Project is closed when
administrative closure is
complete.
Administrative closure is
done at end of each Project
Phase and at the end of the
Project.
Contract closure: verification
that deliverables were
acceptable; it is done once
at the end of the contract.
Contract Closure Procedure
is produced under Close
Project
si
Using CV and SV to Analyze Project Risk
If CV = 0 and SV = 0
Then
The project is on budget
and on schedule