Flashcards in AHPP Chapter 10 - Design Project Management Deck (59)
What are the major groups of a project manager's activities?
- Organizing the project
- Facilitating the work
- Effect of client expectations on the project
What are the two sides to project management?
- The Objective: services defined in the contracts
- The Subjective: motivating team members, leading conflict resolution, being a good listener, etc. (intangibles)
What is a major difference between a Pyramid firm structure and a Matrix firm structure, with regards to project management?
In a pyramid system, the principal is the only project manager (along with many other duties) the matrix system allows for other employees to be PMs and for the principal to be free for other duties.
What are some components of a project work plan?
1. Project description and client requirements
2. Statement of deliverables
3. Team organization
4. Responsibility matrix
5. Preliminary project schedule
6. Preliminary staffing needs
7. Project directory
8. Internal project budget and profit plan
9. Code information (optional)
What is a Memoranda?
- used to provide an understanding of the detail of an assignment that has been accepted by a team member.
- Can be done with e-mail
What is Net service revenue (NSR)?
Net fee determined by subtracting consultant fees from the gross fee for the project
What is Planned Cost?
Labor hours and dollar amounts planned at project initiation
What is Job-to-date (JTD)?
Labor hours and dollar amounts spent as of the current date
What is Estimate-to-complete (ETC)?
Labor hours and dollar amounts estimated from current
date to project completion
What is Estimate-at-completion (AEC)?
JTD plus ETC labor hours and dollar amounts estimated at project completion
What is Planned Estimate at Completion?
Over/under calculation indicating labor hours and
dollar amounts at project completion relative to planned estimates
What is Percent Complete?
Current work in place for the project, phase, or task, expressed as a subjective percent complete and not based on the percentage of labor hours or dollar
What is the formula for Break-even multiplier?
(direct labor + overhead)/direct labor
What is the formula for Overhead multiplier?
What is the Effective Multiplier formula ?
Current, subjective percent complete/direct labor
What is the Target multiplier formula ?
Firm-wide standard target multiplier, including profit target
What is the Planned Mulitplier formula ?
Net service revenue/planned cost
What is the Estimate-at-completion multiplier formula?
Total NSR/EAC labor costs
What are billed/invoiced amounts?
Amounts billed to clients based on contract compensation amounts and percent complete
What are Earned Revenue Amounts?
Revenue recognized in the accrual accounting system based on subjective percent complete times net service revenue
What are Billed-not-earned (BNE) amounts?
Amounts billed to the client but not recognized as earned revenue in the accrual accounting system
What are Earned-not-billed (ENB) amounts?
Amounts recognized as earned revenue in the accrual
accounting system but not billed to the client
What is planned labor?
Raw labor costs determined from bottom-up project work plan
What is Job-to-date (JTD) labor?
Raw labor costs expended on the project from the start date to the current date
What is Estimate-to-complete (ETC) labor?
Raw labor costs estimated to be expended on the
project from the current date to the project completion date.
What is Estimate-at-Completion (EAC) labor?
The sum of JTD labor and ETC labor
What is planned-EAC labor?
The planned labor costs minus the EAC labor costs. A positive amount projects less labor will be used at the end of the project than planned, resulting in a multiplier and profit above the target. Likewise, a negative number projects a multiplier and profit below the target.
What are the stages of effective work plan development and utilization?
What is Net Service Revenue, and how is it calculated?
Net fee determined by subtracting consultant fees from the gross fee for the project.
Planned Raw Labor Costs X Targer Multiplier = compensation (NSR)