Knowledge Flashcards
Types of float
total - maximum spare time available to an activity without increasing total project time (Tl(s) - Te(p) -te)
free - maximum spare time available to an activity without increasing the EET on next event (Te(s) - Te(p) -te)
indep - maximum spare time available to an activity without affecting the float of any other activities (Te(s) - Tl(p) -te)
CSC principal processes (FR translation)
1 - Organisation 2 - Planning and budgeting 3 - Accounting 4 - Analysis 5 - Revisions and access to data
WBS hierarchy
end product major components general component requirements detailed component requirements manageable work packages (PERT/CPM)
CSC Organisation
effort defined wrt a WBS
responsibility assignment matrix
CSC Planning and budgeting
PMB (and updating)
- define the work (WBS)
- schedule the work (PERT/CPM)
- allocate budgets
- define Management Reserve
- negotiate a contract budget base
CSC Analysis
measure EV
cost variance = EV - ACMP (/EV)
schedule variance = EV - BCWS (/BCWS)
estimated cost = (total budget/EV)*ACMP
Functional organisation
hierarchical, by activity (similar tech)
s: specialisation, scale, efficiency, good for high turnover
w: lost focus from department self interest
Divisional organisation (project similar)
autonomous, by product
s: functional departments concentrate on divisions goals
w: inefficiency due to duplicated functional activities
Matrix organisation
projects managed separately but can use resources from functional departments
s: scale, efficiency, sight of goals
w: conflict b/n project and functional management, allocation of resources, lacks specialisation
Reasons for cultural change resistance
self interest
misunderstanding and lack of trust
different assessments
low tolerance for change
Accounting key concepts
viability
prudence
consistency
principle of accruals
Porter’s 5 forces
bargaining power of suppliers bargaining power of buyers threat of new entrants threat of substitutes internal rivalry
Effective alternatives
availability of alternatives
factors limiting the use of alternatives
motivations for buyers to use alternatives
Effective alternatives - Availability of alternatives
suppliers: - quantity and concentration of buyers (low conc better) - alternative uses of products - ability to forward integrate buyers: - quantity and conc of suppliers - viable substitutes - ability to backward integrate
Effective alternatives - Limiting factors
suppliers: - switching costs - importance of volume buyers: - differentiation - switching costs - lack of buyer information
Effective alternatives - Buyer motivations (threat to use alternatives more fully)
product represents a large fraction of buyer’s cost structure
buyer unable to pass price increases downstream
lack of buyer profitability
decision-maker incentives
Threat of new entrants
Limitations:
- gov policies
- specialisation
- capital
- retaliation
- buyer switching costs
- competitor ads (economy of scale, learning curve, patented tech, brand)
Threat of substitutes
price-performance trade-offs
buyer switching costs
Internal rivalry
cooperate in maintaining prices:
- motivations: clear industry leaders, strong brand and diff, customer switching costs
cut prices in order to gain volume
- motivations: high fixed costs, low industry growth, overcapacity
Kotter’s leadership model
direction - vision and strategy
align - communicate new direction
motivate - appeal to values, recognise and reward
Principles of leadership
self-awareness accept responsibility know staff, develop leadership understand task sound and timely decisions
Cost of conformance
prevention (training, planning)
appraisal (inspections, testing)
Cost of nonconformance
internal (disposal, repair, waste of time)
external (loss of goodwill, returns, complaint handling)
Benefits of standardisation
Safety Interchangeability Economic efficiency Schedule efficiency Quality Reliability
Preparation of new standards
request from public credibility assessment transparent preparation consensus vote
Reasons for IP licensing
don’t have facilities to develop or sell
buyers put off by monopoly
want revenue, but don’t want to commercialise
Benefits of IP
protects against copying exclusive right competitive advantage maintain price sell or license
Driving forces of commercialisation
Founders
Opportunity (tech + need + lead)
Resources
Obtaining VC
preparation
business summary and plan
due diligence
marketing
Functional requirement
The functional requirement takes into account the political-economic environment and the feasibility of future stages to create a solution that is suitable for both the client and the contractor
Culture changing external factors
new technologies new sources of competition regulation/legal shifts changes in ownership fundamental shifts in market demand or demographics.
Describe briefly why the commercialisation process is most likely to succeed when a systems engineering approach is followed.
The SE approach is broad and takes a forward thinking view, which ensures the best solution to the clients’ functional requirement and leads to a fully detailed business plan.
Identify some influences, external to the industry, which may impact on the profits
Changes in medical practice and technology; regulatory changes; global concerns about resource consumption
Leadership practices
Challenge the process Inspire a shared vision Enable other to act Model the way Encourage the heart
