Project management practical work

Replenishment date: 15.06.2017
Content: Practical Project Management (2 var.) (1) .doc (36 KB)
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Option 2

Task 1. Analyze the situation.
A large Moscow company for the production and sale of alcoholic beverages initiated a document flow automation project, which involved the design, development and implementation of an intranet network. The firm itself acted as the customer of the project, and a consulting firm specializing in the provision of services in the field of modern information technologies acted as the general contractor. At the same time, the consulting firm undertook to independently design the entire document management system and create it with the help of a subcontracting software company.
At the negotiation stage, the scope, timing and cost of the project were determined, which was payment for the services of a consulting firm. At the same time, payment for the services of a consulting firm depended on specific results - the creation of a document management system within the agreed time frame. Of the total cost of the project, part of the funds went to pay for the work of the software company, and the work of the programmers was assessed depending on the time spent, i.e. using a time-based wage system.
After the end of the first two stages of the project, it turned out that the consulting firm completed the work only for the first stage and, accordingly, received payment for the results only for this stage, but the software company had already paid for two stages, i.e. for all the time of programmers work. The project manager from the consulting firm calculated the cost control indicators and reported the results to the management. The management of the consulting firm found that the project was absolutely unprofitable from the point of view of their firm. At a meeting dedicated to discussing the current situation, it was decided to contact the customer with a proposal to revise the terms of the contract in view of a serious increase in the volume of work and the complication of the conditions for their implementation.

Questions for analysis:

1. Based on what metrics could the project manager identify errors in cost management?
2. What mistakes were made in cost management on the part of the consulting firm?
3. How do you assess the decision made at the meeting?
4. Which solution would be more expedient, in your opinion?
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