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【正文】 rive at a capital request some conversion is necessary, for example, by adding prudent allowances such asoverheads, a contingency allowance to cover normal project risks and management reserves to cover unknowns and possible scope changes.? In addition, it may be necessary to convert the estimating data into a financial accounting formatthat satisfies the corporate or sponsor39。山東建筑大學(xué)畢業(yè)設(shè)計(jì)外文文獻(xiàn)及譯文外文文獻(xiàn):Project Cost Control: The Way it WorksBy R. Max WidemanIn a recent consulting assignment we realized that there was some lack of understanding of the whole system of project cost control, how it is setup and applied. So we decided to write up a description of how it works. Project cost control is not that difficult to follow in theory.First you establish a set of reference baselines. Then, as work progresses, you monitor the work, analyze the findings, forecast the end results and pare those with the reference baselines. If the end results are not satisfactory then you make adjustments as necessary to the work in progress, and repeat the cycle at suitable intervals. If the end results get really out of line with the baseline plan, you may have to change the plan. More likely, there will be (or have been) scope changes that change the reference baselines which means that every time that happens you have to change the baseline plan anyway.But project cost control is a lot more difficult to do in practice, as is evidenced by the number of projects that fail to contain costs. It also involves a significant amount of work, as we shall see, and we might as well start at the beginning. So let us follow the thread of project cost control through the entire project life span.And, while we are at it, we will take the opportunity to point out the proper places for several significant documents. These include the Business Case, the Request for (a capital) Appropriation (for execution), Work Packages and the Work Breakdown Structure, the Project Charter (or Brief), the Project Budget or Cost Plan, Earned Value and the Cost Baseline. All of these contribute to the organization39。s format for purposes of parison with other projects and consequent funding approval.? In practice all the data for the type of bottom up approach just described may not be available.In this case alternative estimating approaches are adopted that provide various degrees of reliability in a top down fashion. For example:Order of Magnitude estimate – a ball park estimate, usually reserved for the concept phase only Analogous estimate – an estimate based on previous similar projectsParametric estimate – an estimate based on statistical relationships in historical data? Whichever approach is adopted, hopefully the sum thus arrived at will be approved in full and proves to be satisfactory! This is the trigger to start the Execution Phase of the projectNote: Some managements will approve some lesser sum in the mistaken belief that this will help everyone to sharpen their pencils and work smarter for the benefit of the organization. This is a mistaken belief because management has failed to understand the nature of uncertainty and risk in project work. Consequently, the effect is more likely to result in corner cutting with an adverse effect on product quality, or reduced product scope or functionality. This
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