Question.3143 - Post 5.1 Recall “management reserve” from the Module Five lecture document. A management reserve is for unidentified risks. Discuss three such risks, and explain how you would deal with them when they are realized. Also, discuss why the project cost baseline typically does not include the management reserve. Post 5.2 If cost variance is negative, discuss how you would get the project back on budget. Would you compromise on the scope? And/or on the schedule? And/or on something else? Discuss with reasoning
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Management xxxxxxx Management xxxxxxx refers xx any xxxxxxxxxx unpredictable xx unanticipated xxxx circumstances xxx events xxxxxxxxxxx by x project xxx reserves xxxxxxx for xxxxxxxxxx reserve xxxxxx in xxx mitigation xx risks xxx impact xxxxxxxxxx with xxx unforeseen xxxxxx Unanticipated xxxxxxx disaster- xxx first xxxxxxx of xxxx risk xxx be xxxxxxxxxxxxx natural xxxxxxxx like xxxxxxxxxx or xxxxxx similar xx the xxxxxxx earthquake xx Japan xx Such xxxxxxxxx create xxxxx costs xxxxxx on xxxxxxx management xxx leads xx project xxxxxx which xxxxxxxxx costs xxxx further xxxxxxxxxx task x Another xxxxxxx of xxxx is xxxxxxxxxx of xxxx unforeseen xxxx which xxx not xxxxxxxxxxxx in xxx initial xxxxxxxx phase xxx implementation xx these xxx tasks xxxxxxxx further xxxxxxxxxxxx and xxxxxxxx allocation xxxx can xx in xxx form xxxxx painting xxxx that xxx not xxxxxxxxxxxx in xxx initial xxxxxxxx phase xx it xxx later xxxxx that xxx parking xxxxxxxx repair xxxx Significant xxxxxxxxxx in xxxxx or xxxxxxxx rates xxx significant xxxxxx in xxxxx rates xxxxx had xx chance xx being xxxxxxxxx or xxxxxxxx in xxx overhead xxxxx requires xxxxx resource xxxxxxxxxx These xxx few xxxxxxxx of xx which xxxxxxxxxx reserve xx required xxxxxxx with xxxxx risks-These xxxxx can xx mitigated xxx dealt xx proper xxxxxxxx and xxxxxxxx allocation xxxxxx and xxxxxxxx resource xxxxxxxxxx is xxxxxxxxx to xxxxxx that xxxxx risks xxx dealt xxxx in xxxxxx manner xxxxxxxx allocation xxxxxxx a xxxxxx in xxxxx these xxxxx can xx covered xx the xxxxx of xxx unforeseen xxxxx that xxxxx escalate xxxxx of xxx project xxxxxxx cost xxxx The xxxxxxx cost xxxx ordinarily xxxx not xxxxxxx the xxxxxxxxxx reserve xxxxxxxxxx as xxx project xxxxxxxxxx is xxx provided xxxxxxxx control xxxx these xxxxxxxxxx made xxx management xx cannot xxx the xxxxx in xxx ordinary xxxxxxxxxxxxx and xxxxx have xx apply xx the xxxxxx management xxx receiving xxx resources xxxxxx for xxxxxxxxxx reserve xxxxxxxxxx Humphreys xxx n x EVMS xxxxxxxxx Center xxx Effective xxx of xxxxxxxxxx Reserve xxxxxxxxx from xxxx www xxxxxxxxxxxxxxx com xxxx effective-management-reserve-ta-a- xxxx Grabham x Thoughts xx Understanding xxxx contingency xxx management xxxxxxx Retrieved xxxx http xxx apm xxx uk xxxx thoughts-understanding-risk-contingency-and- xxxxxxxxxxxxxxxxxx Negative xxxx variance xxxxxxxx cost xxxxxxxx provides x look xxxx project xxx expended xxxx than xxx budgeted xxxxx A xxxxxxx looking xx negative xxxx variance xxx a xxxxxx of xxxxxxx to xxx back xx the xxxxxxxx limits xxxxxxxxxxxxxx identification xxxxxxx the xxxxxxx manager xxxxxx ascertain xxxxxxxxxxxxxx in xxx project xxx work xxx elimination xx the xxxx Deficiencies xx budget xxxx estimates xxx project xxxxxx be xxxxxxxxx to xxxxx for xxx deficiencies xx the xxxxxxxxxx of xxx budgeted xxxxx Often xxxxxxxxx estimation xx budget xxxxx to xxxxxxxx variance xxxx cost xxxxxx heads xxxxxxx option xxxxx be xx identify xxxxx which xxxx high xxxxxxxx costs xxx plan xx reduce xxxxxx costs xxxxxxxx on xxxxx heads xx case xxx negative xxxx variance xxxxxxxx the xxxxxxx manager xxxxxx attempt xxx available xxxxxxx to xxxxxxx costs xxxxxxx compromising xxx scope xx quality xxxxxxx he xxx look xxx ways xxx innovation xx save xxxxx without xxxxxxxxx in xxxxx This xxx be xx the xxxx of xxxxxxxxxx of x newer xxxxxxxxx of xxxxxxxxxxxx which xxxxx time xxxxxxxx overhead xxxxx and xxxxx costs xxx if xxxxxxx works xxx project xxxxxxx has xx reduce xxx scope xx the xxxx or xxxxxxxx the xxxxxx in xxxxxxxxxxxx with xxx sponsor xxxxxxxxxx Gido x amp xxxxxxxx J xxxxxxxxxx Project xxxxxxxxxx Cengage xxxxxxxx Schwalbe x Information xxxxxxxxxx Project xxxxxxxxxx Cengage xxxxxxxxMore Articles From Operation Management
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