Project Management And Business Relationships Flashcards
What are two ways of environmental certification
BREEAM - Building Research Establishment Environmental Assessment Method
FSC - Forest Stewardship Council
What is BREEAM (UK)
BREEAM is an assessment method that is rated up to 6 stars and it gets rated in these categories
-Management -health and wellbeing
-energy -transport
-water -materials
-waste -pollution
-land use and ecology
What is FSC
The forest steward council is an international organisation, stating the timber has come from a sustainable source
What are financial objectives
Financial objectives refer to specific monetary goals that businesses aim to achieve to ensure stability, growth and profitability. Businesses require financial objectives to guide decision making, attract investors and maintain economic sustainability.
What are the core financial objectives
-Profit maximisation
-Revenue growth- annual turnover (revenue) refers to the total income a business generates from its operation in the financial year higher revenue increase profit potential
-cost control and efficiency
What are overheads, fixed overheads and variable overheads
Overheads - Costs that are made which do not contribute directly to the production
Fixed overheads - expenses that stay constant regardless of activity levels
Variable overheads - costs that fluctuate with business activity levels
What is gross and net profit
Gross profit is revenue minus direct costs (labour and materials)
Net profit is the remaining profit after all expenses including overheads and taxes.
What is cash flow
Cash flow is the movement of money into and out of a business
What are key performance indicators KPIs
KPIs are specific measurements used to track how well a business, team or individual is performing. An example could be by tracking sales per month.
What are the two types of KPIs
Strategic KPIs (big picture goals) shows how a business is performing overall
Financial KPIs (money and profit) measure a company’s financial health like how much money it is making and spending.
Why are KPIs important
- Helps track progress
- Identifies problems early
- Guides decision making
- Boosts motivation
What are the benefits of a Gantt chart
It shows a timeline of the project and its activities. This allows for planning ahead if something goes wrong.
What is the critical path analysis
critical path analysis, is used for scheduling a set of project activities. A critical path is determined by identifying the longest stretch of dependent activities and measuring the time required to complete them from start to finish.
What are the risks aspects of construction
-workload of the company
-market conditions
-cost of the work
-site and location of the project
-the timeframe
-project size
What is the problem with market conditions
When the economy is booming company’s can be confident they will get funding however when it’s not they may struggle
What is the risk management order in construction
- Identify the risk
- Risk analysis
- Risk response
- Risk monitoring and control
