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Types and Sources of Finance
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Senior debt- Debt financing. This types of financing have to be paid first
( money borrowed from number of sources including banks. They have the first
claim to the project organization’s assets should the project fail and the
company goes into liquidation.
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Mezzanine debt- comes from the project organization’s
equity holders. Involves a schedule f
loan repayments...
Thursday, August 8, 2013
What is the expected monetary value?
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What is the expected monetary value?
It is a
financial measure used when measuring future uncertainty. It is defined as the
summation of the value of each outcome in dollars ($), weighted by the
probability of that outcome. For example, consider a project that needs to be
redesigned, and assume that the new approach involves some risk to accomplish
this goal. One possible monetary outcome is $200,000 with a 40 percent
probability of achieving this outcome, while another monetary outcome is
$150,000...
Value Management
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Concept of Value Management
·
Value Planning is a value study that occurs during the early
design or development stages of a project life cycle,
before a preferred
alternative is selected. Value planning typically
focuses on identifying
project objectives and developing functional
components and general
approaches to meeting those objectives....
Estimating Work Duration
Determine the availability
of the resources
Show the availability
as a percentage of the effort required to achieve the work package
Duration =
(Effort/Productivity)/Availability
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If effort is in # of hours, the duration will be in # of hours
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To have duration in days, divide the value calculated above by the
number of working hours per day
Cost = Duration* Unit
cost
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Cost = (Effort/Productivity...
Project Needs assessment and prioritizing the Needs
Depending on the project Time, Cost or Quality
might have a higher importance
Needs identification is the first stage of the project
life cycle.
During the project needs assessment phase, the needs
of all project stakeholders
must be clearly defined, with no ambiguity. At this juncture, it is not
important to determine whether the project can satisfy all these needs, or to
worry about the best approaches to meet them. All we are attempting...
Tuesday, July 16, 2013
Value Management
CONCEPT OF VALUE
The
concept of value can be defined as the relationship between satisfying
an
organization’s many conflicting needs and the resources required
to
meet those needs.
Value
can be added to projects in several ways. These include providing
greater
levels of client satisfaction, maintaining acceptable levels of
satisfaction
while lowering resource expenditures, or some combination of
the
two. It is also possible to improve...
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