Read e-book online Advanced Project Management: A Structured Approach PDF

By Frederick L. Harrison, Dennis Lock

ISBN-10: 0566078228

ISBN-13: 9780566078224

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Read Online or Download Advanced Project Management: A Structured Approach PDF

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Extra resources for Advanced Project Management: A Structured Approach

Example text

Thus the strategy of Case 2 should allow the project to become profitable about three years earlier than the Case 1option would allow. 4 are valid as far as they go, but they do not take into account the effect of time on monetary values or the requirement of the Cuprosity company to earn at the minimum rate of 8 per cent per annum on the original investment. It is clear that no project requiring heavy investment will earn that kind of return in its first year. In a project requiring substantial investment, any projected net cash amount forecast to be earned (or spent) in the future must be gauged against what that same amount of money would be worth in today's values if it could have been invested instead in a bank for an interest rate of 8 per cent.

Concurrent engineering can pose particular problems of planning and control for the project manager, since both the contractor's and customer's engineers must work together on design tasks that run in parallel with each other and whose time and costs can be relatively difficult to estimate. Also, there is no superior-subordinate relationship with the customer's engineers. Cost and management accounting Most engineers and other project staff have little knowledge and even less interest in accounting practice.

ESTIMATING CASH OUTFLOWS Cash outflows must be considered for the whole life of the project, and will include at least the following: project development costs (all the costs leading to project handover and operation) operation and maintenance costs for the expected operational life of the project taxes, other duties and expenses repayments to banks and other creditors. Project development cost estimates must be made for all aspects of the project design, construction and commissioning, for which the tasks in the WBS should provide the principal checklist.

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Advanced Project Management: A Structured Approach by Frederick L. Harrison, Dennis Lock


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