P07 Project Cost Management

Question 1

What is the key aspect of delivering new products?

Answer 1

Ensuring that the QCD commitments are fulfilled!

Question 2

What is the intention of Project Monitoring?

Answer 2

Systematic a. regular collection a. analysis of information to detect, in each phase of the project:

• Deviations from Budget
• Lagging Schedule
• Poor Quality
• Project Risks

Question 3

What is the main difference between cost Monitoring and cost Evaluation?

Answer 3

The Timing and frequency of observations and the types of questions asked.

Question 4

What is important for planning work packages in respect to tasks?

Answer 4

• Work Packages should be broken down into tasks in order to estimate more accurately, exposes work activities that permits more accurate, fine-grained status tracking.
• Tasks must have milestones and should be of a size that can be estimated accurately

Question 5

How can work packages process be tracked?

Answer 5

based on the number of milestones that have been completed at any given time, compared to those planned to complete by that time.

Question 6

What does a useful Work Package plan include?

Answer 6

• Staff, budget and other resource needed
• Team roles and responsibilities
• Assumptions, dependencies and risks
• Milestones for major deliverables
• How WP tracking and monitoring will be done
• Key Performance Indicator KPI to be used
• If needed “how subcontractor relationships manage” will be done

Question 7

What are the two main components of “Cost of Quality” and their subcomponents?
(P7/15)

Answer 7

- Cost of Non Quality
    o Internal Failure Costs
    o External Failure Costs
- Cost of Good Quality
    o Appraisal Costs
    o Prevention Costs

Question 8

What are Costs of Non-Quality (CONQ)?

Answer 8

They result from failing to meet requirements and has both internal and external components.

Question 9

What cost-influences have internal failure costs for the company?

Answer 9

• Rework (incl. people, materials, machines)
• Demotivation (employees reduce performance)
• Scrap (Ausschuss)
• Opportunity cost (cost of not doing what you otherwise would do)

Question 10

What cost-influences have external failure costs for the company?

Answer 10

• Warranty (cost of fixing things under guarantee)
• Law suits (cost of defending)
• Service (e.g. helpdesk)
• Recall
• Loss of reputation
• Loss of sales

Question 11

What is the meaning of the “Quality Iceberg”?

P7/22

Answer 11

That there are a lot of costs of non-quality that are less visible in contrast to the few visibles.