Finals Flashcards
any agreement between two or more
parties where one party agrees to provide certain
deliveries or services, and the other party agrees to
pay for those deliveries or services.
Contract
Ways to get a contract
- Offer by the company + Acceptance by the customer
- Offer by the company + negotiation with customer + acceptance by the company
Elements of legally binding contracts (7)
- Scope of work
- Project Timeline
- Payment terms
- Change Management
- Risk Management
- Confidentiality & Intellectual Property
- Termination
3 types of contracts in project management
- Fixed price contracts
- Cost reimbursable contracts
- Time and Material Contracts
The seller and the buyer
agree on a fixed price for the
project. The seller often accepts a
high level of risk in this type of
contract. The buyer is in the least
risk category since the price the
seller agreed to is fixed.
Fixed price contracts
used when the project scope is uncertain,
or the project is high risk. The buyer
pays all costs, so the buyer bears all
the risk.
Cost reimbursable Contracts
This type of contract is a
hybrid of a cost-reimbursable and
fixed-price contract.
Time and Material Contracts
the process of managing contracts.
This includes deliverables, deadlines, and the terms and
conditions of the contract.
Contract Management
Stages of contract management process (7)
- Planning
- Drafting
- Approving
- Negotiating
- Signing
- Revising
- Renewing
Contract Management Activities (4)
- Service delivery management
- Relationship management
- Contract Administration
- Contract Management Software
ensures that the
service is being delivered as agreed, to the
required level of performance and quality.
Service delivery management
keeps the relationship
between the two parties open and constructive,
aiming to resolve or ease tensions and identify
problems early.
Relationship management
handles the formal
governance of the contract and changes to the
contract documentation.
Contract Administration
is an electronic
the approach of managing contracts manually. it can organize all contract
paperwork.
Contract Management Software
Why do organizations fail to manage contracts? (8)
- Poorly drafted contracts
- Inadequate resources
- The wrong people are put in place
- Failure to check provider assumptions
- Failure to monitor and manage retained risks
- Lack of performance measurements by the customer
- Authorities or responsibilities relating to commercial decisions are not clear
- The intended benefits are not realized
Ensures that the project will satisfy the needs for
which it was undertaken.
Project Quality Management
Process of Quality Management
- Plan Quality (Planning)
- Perform Quality Assurance (Executing)
- Perform Quality Control (Control/Monitor)
It implies the ability to
anticipate situations and
prepare actions to bring
about the desired outcome.
Plan Quality
– includes all the
activities related to satisfying the relevant
quality standards of a project.
Quality Assurance
How to perform Quality assurance
- Benchmarking
- Quality Audit
Generates ideas for quality improvements by comparing
specific project practices or product characteristics to those
of other projects or products within or outside the
performing organization.
Benchmarking
A structured review of specific quality management activities
that help identify lessons learned that could improve
performance on current or future projects.
Quality Audit
Main outputs of quality control (3)
- Acceptance
- Rework
- Process adjustments
Basic tools of quality (7)
- FLOWCHART
- RUNCHART
- SCATTER DIAGRAM
- HISTOGRAM
- PARETO DIAGRAM
- CONTROL CHART
- CAUSE AND EFFECT DIAGRAM
graphic displays of the logic
and flow of processes that help you analyze
how problems occur and how processes can
be improved.
Flowchart
displays the history and
pattern of variation of a process over
time
Run chart
helps to show if there
is a relationship between two variables
Scatter diagram
bar graph of a
distribution of variables.
Histogram
s a histogram that can
help you identify and prioritize problem
areas
Pareto chart
a graphic display of
data that illustrates the results of a
process over time.
A control chart
They help you find the root cause of a
problem
The cause-and-effect diagrams
Who is responsible for the quality of project?
Project managers
Costs of quality types (2)
- Cost of conformance
- Cost of Non-conformance
Cost of conformance
- Prevention cost
- Appraisal cost
The cost of any action taken to investigate, prevent or reduce the risk of a non-conformity
Prevention cost
The cost associated with measuring, checking or evaluating products services to assure conformance to quality requirements
Appraisal cost
Costs of non-conformance (2)
- Internal Failure cost
- External failure cost
The cost incurred when products and services do not conform to specification
Internal failure cost
The cost incurred when products and services do not conform to specification
External Failure Cost
Importance of good quality (5)
- Improved quality
- Company reputation
- Product liability
- Higher price
- Higher productivity
Consequence of poor quality
- Lost revenue
- Lost productivity
- Lost customers
- Lower profile
- Increased costs
- Disliked brand
