Successful Int Projects thru Effective Contract Docs - Project Planning

Question 1

Breaking down a project schedule into managable, understandable parts including a step-by-step plan of what needs to be done, when each task must be completed, how long each task is likely to take, and who will be responsible for the tasks as well as what materials or resources are necessary is a _________ ________.

Answer 1

Work Plan

Question 2

What is the most important function of the project manager?

Answer 2

Developing a work plan

Question 3

What are 2 benefits of giving the client the opportunity to authorize or reject additional work?

Answer 3

The firm is more likely to be compensated for authorized extra services and the clients confidence and trust in the project manager is bolstered by this effidence of control, awareness and professionalism

Question 4

What 4 things are defined by the work plan?

Answer 4

What is to be done, when it is to be done, who will do it and how much it will cost.

Question 5

The simplest for of scheduling is the ________ table. It lists the major tasks and establishes the sequence and optimum completion dates for each task. It is easily prepared and usually adequate for small projects of short duration involving few people. This is called a _______ ______.

Answer 5

Milestone table

Question 6

A schedule where all tasks start and completion dates are represented at intervals along a continuous line is called a ______________. This begins to show the interrelatedness of essential tasks

Answer 6

Timeline

Question 7

This type of scheduling tends to render a truer picture because it more easily depicts simultaneous activities and shows tasks that may be interupted at a certain point and continued at a time when related tasks allow them to proceed efficiently. This is the most widely used scheduling tool. It is relatively simple to prepare, and if maintained allows you to plot actual progress against projected progress. This is called a ______ ________.

Answer 7

Bar graph

Question 8

In this type of scheduling, not only are the essetial tasks identified andn analyzed, but their inter-relationships are defined. Each task is compared with all others and their dependence on each other is charted. Essentially 3 relationships are explored: tasks that must be completed before another task can begin, tasks that must start before another task can begin, tasks that must be completed before another task can be completed. This is called the __________ ___________ ____________

Answer 8

Critical path method or CPM

Question 9

An effective way to work out either a bar graph or a CPM is to start with a blank wall and a stack of 3x5 index cards, each card representing one week. Each task is identified and represented by 2 cards, one designating the beginning of the task and one indicating its completion. The cards are pinned to the wall in the sequence that is appropriate for each tasks start and finish. Usually each task is identified by a letter or color designation and indicating which member of the team is primarily responsible for it. The cards are shfited thru a trial and error process until it becomes clear that they are in the proper and workable order. This is called a _______ ________

Answer 9

Wall schedule

Question 10

For budgeting purposes what is the first thing that should be subtracted from the total amount

Answer 10

Profit

Question 11

What fees have no rule of thumb about what impact they may have on the total budget

Answer 11

Consultant fees

Question 12

After subtracting profit and consultant fees what are the remainder of the project fees used for?

Answer 12

Production, which includes direct labor expense and overhead expenses

Question 13

What is direct labor expense?

Answer 13

The firms total payroll burden including salaries, cost of benefits - which included vacation time, sick leave, bonuses, insurance, payroll taxes and other employee benefits

Question 14

Office rent and maintenance, travel and entertainment expenses, utilities including telephone costs, staff training and attendance at seminars, cost of supplies and equipment, depreciation of fixed assets, business development expenses, legal and accounting fees, liability insurance, professional dues, books and subscriptions, printing and reproduction, charitable contributions, and state and local taxes are examples of what type of expense?

Answer 14

Overhead costs

Question 15

How would you calculate the appropriation of costs that are not directly project related, assuming there is a direct proportionate relationship between known costs that can be tracked and unknown costs?

Answer 15

With that assumption, calculate the design firms overhead cost for a specific period for which accurate figures are available, then calculate the total revenue generated for the same period and subtract from that figure an amount that represents the profit that the firm expects to realize, presuming that the firm is solvent and did realize a profit, overhead costs plus direct cost plus the profit target = total revenue. A simple formula for this would be: Revenue - Profit = Direct Cost + Indirect Cost

Question 16

Assuming a company earned $500,000.00 in fees in a particular year, and it desired a 20% profit. Also assume that overhead costs during the same period amount to $200,000.00. Direct cost for producing the work amount to another $200,000.00. The figures then look like this: Revenue - Profit ($500,000.00 - $100,000.00) = Direct Cost + Indirect Cost ($200,000.00 + $200,000.00) In this example the ratio of direct cost to indirect cost is 1:1. To produce the total revenue including profit and to pay for general overhead you must multiply the total payroll burden by 2.5, which is the multiplying factor.What are the 2 ways this number can be used?

Answer 16

First, if you can accurately estimate the direct cost for producing a project, that cost x 2.5 represents the fee that must be realized. Also, if the firm undertakes projects that are billed on an hourly basis this number can be used to generate billing rates

Question 17

The simplest form of budgeting is known as what?

Answer 17

The unit cost budget

Question 18

A budgeting method that identifies each task and estimates the cost to complete it to which total are added the estimated cost of general overhead related to the project and the profit to be generated is termed __ ___________ ___________ ____________

Answer 18

An additive budget method

Question 19

What are 2 ways to deal with the total for additive budgeting method is out of line with the offices expected total compensation?

Answer 19

service factors need to be adjusted to reduce expenses or the firm must accept a lower profit margin

Question 20

How is a weighted salary average developed for a project?

Answer 20

You take the number or people working on the project, determine what percentage of the project each will do, and multiply their salary by the percentage of the project that they will do

Question 21

Steps for developing an additive budget

Answer 21

Start with a task list and estimate the no. of hours for each task - Multiply the no. of hours by the weighted salary average - To arrive at the fee required to support the project add to the direct labor expense the desired profit + estimated consultant fees (if not billed directly to the client) + non-reimbursible expenses + overhead

Question 22

The budgeting method in which the profit target and anticipated overhead are subtracted from the projected total compensation leaving the remainder of the project budget for production cost which is further divided into estimated shares for individual tasks is called a ________________ budgeting method

Answer 22

Subtractive

Question 23

Steps for creating a subtractive budget:

Answer 23

Subtract from the total compensation the desired profit, the estimated consultant fees, the anticipated non-reimbursible expenses and the cost of overhead - this yields the amount for direct labor expense - Divide the amount available for direct labor by the average salary for those engaged in producing the project to find the hours available to do the work