This is a very summarised set of notes needed for the A2. It is summarised in such a way that it will be easy to remember and build own definitions during the exam
included in project WBS
CHAPTER 8 CHAPTER 9
How to calculate: Activities in project closure Think as if I was selling notes
{Actual cost (AC)} 1. ALL work is completed
Actual amount of money spent at any given time/ actual costs to date 2. Notifying + delivery
3. Acceptance of delivery
AC=ALL costs incurred up to that date 4. Documentation is complete + closure report.
4.1 Pm will make a checklist
{PLANNED VALUE (PV)} 4.1 Start with project closure report
Rand value 4.1 Storing project records
PV= cost per month/day/year × N! of days completed 5. Payment Project team members
materials
6. Redistribute resources equipment
7. Close contracts (e.g ext. suppliers) w/legal counsel
{EARNED VALUE (EV)} 8. (NDA’s)
EV= % work completed × total cost of project OR #units completed x cost per unit 9. Keep OR not to keep records?
10. Documents stored safely + transfer manuals, training materials to client
11. Product support requirements after sale
INTERPRETING CV(EV-AC) 12. Closing financial books
Positive CV à under budgetà we have spent
{ EV/AC = …% } less budget than anticipated Project handover activities
negative CV à over budget à we have spent 1. Document handover + requirements
2. Transition document (includes a suggest maintenance team)
{ EV/AC = …% } more budget than anticipated - Area [setup]
CV=0 à on budget - Operations manual
- Sign of acceptance
- Lessons learned
INTERPRETING SV(EV-PV) 3. Training end users
4. Transfer of manuals to end user
Positive SV à ahead of schedule à we are ahead of schedule.
We have performed { EV/PV = …% } of the work planned Project benefits
negative SV à behind of schedule à we are behind schedule. The project manager is ultimately
Financial benefits: Non-Financial benefits
We have performed { EV/PV = …% } of the work planned Business objective i.t.o: VA to a business from a for ensuring all deliverable are
- Revenue project. Must be tangible + achieved for project success. After
SV=0 à on schedule - Contribution
- Profit enhancement
measurable: the sponsor is notified
- Operational performance
- Savings in operating - Process performance
costs/working capital - Client satisfaction
GRAPHING: - Performance indicators
à if EV curve lies above AC à cost variance is positiveà underbudget
à if EV curve lies below AC à cost variance is negative à overbudget how do you know if a project was successful?
à if EV curve lies above PV à schedule variance is positive à ahead of schedule 1. Efficiency: did the project meet their budget + schedule?
à if EV curve lies below PV à schedule variance is negative à behind schedule 2. Client impact/satisfaction: technical + operation specification? Meet customer needs?
3. Business/direct success: commercial success? market share?
4. Future potential: presence in the market? Develop new 1. technology?
Components in project closure
1. Closure activities
2. Handover
3. Benefits realization
4. Follow-on-actions + recommendation
5. Formal sign-off & acceptance
6. Project evaluation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mackenziepotter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R85,00. You're not tied to anything after your purchase.
