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 xxxxx Any xxxxxxxxxxx change xx labor xxxxx which xxx no xxxxxx of xxxxx predicted xx increase xx any xxxxxxxx rates xxxxxxxx extra xxxxxxxx allocation xxxxx are xxx examples xx in xxxxx management xxxxxxx is xxxxxxxx Dealing xxxx these xxxxxxxxxxx risks xxx be xxxxxxxxx and xxxxx by xxxxxx planning xxx resource xxxxxxxxxx Proper xxx adequate xxxxxxxx allocation xx necessary xx ensure xxxx these xxxxx are xxxxx with xx proper xxxxxx Resource xxxxxxxxxx provide x manner xx which xxxxx risks xxx be xxxxxxx in xxx event xx any xxxxxxxxxx event xxxx might xxxxxxxx costs xx the xxxxxxx Project xxxx line xxxxx 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 amp xxxxxxxxxxxxx risk xxxxxxxxxxx and xxxxxxxxxx reserve xxxxx Retrieved xxxx http xxx apm xxx uk xxxx thoughts-understanding-risk-contingency-and- xxxxxxxxxxxxxxxxxx nbsp xxxxxxxx cost xxxxxxxx Negative xxxx variance xxxxxxxx a xxxx that xxxxxxx has xxxxxxxx more xxxx the xxxxxxxx costs x project xxxxxxx at xxxxxxxx cost xxxxxxxx has x number xx options xx get xxxx on xxx budgeted xxxxxx Inefficiencies xxxxxxxxxxxxxx Firstly xxx project xxxxxxx should xxxxxxxxx inefficiencies xx the xxxxxxx and xxxx for xxxxxxxxxxx of xxx same xxxxxxxxxxxx of xxxxxx Next xxxxxxxxx for xxxxxxx should xx revisited xx check xxx any xxxxxxxxxxxx in xxx estimation xx the xxxxxxxx costs xxxxx incorrect xxxxxxxxxx of xxxxxx leads xx negative xxxxxxxx High xxxx budget xxxxx Another xxxxxx could xx to xxxxxxxx heads xxxxx have xxxx budgeted xxxxx and xxxx to xxxxxx actual xxxxx incurred xx these xxxxx In xxxx the xxxxxxxx cost xxxxxxxx persists xxx project xxxxxxx should xxxxxxx all xxxxxxxxx options xx curtail xxxxx without xxxxxxxxxxxx the xxxxx or xxxxxxx However xx can xxxx for xxxx for xxxxxxxxxx to xxxx costs xxxxxxx reduction xx scope xxxx can xx in xxx form xx innovation xx a xxxxx technique xx construction xxxxx saves xxxx material xxxxxxxx rates xxx labor xxxxx But xx nothing xxxxx the xxxxxxx manager xxx to xxxxxx the xxxxx of xxx work xx increase xxx budget xx consultation xxxx the xxxxxxx References xxxx J xxx amp xxxxxxxx J xxxxxxxxxx Project xxxxxxxxxx Cengage xxxxxxxx Schwalbe x Information xxxxxxxxxx Project xxxxxxxxxx Cengage xxxxxxxxMore Articles From Operation Management
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