Question

What problem should the owner be aware of when expending? How might these problem dealt with?

Answer 1

ANS:

Owner MUST be aware of when expending for facing following PROBLEMS:

1. Improper Planning,
2. The amounts for wages of Workers,
3. The salaries of highly paid Managers,
4. The expense of office space,
5. Monthly amount extending the initial Project Budget,
6. Extension or Duration of the project overhead cost,
7. Delay in completion due to shortage of resources,
8. Cost performing index or CPI<1,i.e. project ahead budget,
9. Schedule performing index or SPI>1, i.e.project behind schedule
10. Not taking any risk into consideration in initial stage,
11. So, absence of risk mitigation or action recovery plan
12. Shortage of contigency plan,
13. Uncertainty of the Project invested,
14. Profitibility of the Project not considered,
15. Finally versatility of the project in future times.

These problems can be dealt with as one by one of problems as mentioned earlier:

1. Proper Planning before starting a project,
2. The proper amount of wages as per budget,
3. Exact amount of salaries as per Budget,
4. Office area Not more than inital Budget,
5. Monthly amount should not extending the Project Budget - should be tracking regularly,
6. Project Duration must be completed within schedule to reduce overhead cost and checking the productivity of workers,
7. Supplying of adequate resources,
8. Cost performing index or CPI must be >1,i.e. project behind budget, (CPI = EV / AC) i.e. earmed value/actual cost,
9. Schedule performing index or SPI must be <1, i.e.project ahead schedule, (SPI = EV / PV) i.e. actual progress or earned value/ the planned progress,
10. Taking risk into consideration in initial stage,
11. Making risk mitigation or action recovery plan in initial stage,
12. Preparation of contigency plan,
13. Project invested must be taken as a model in primary stage making sure about benefit TO cost ratio >1 i.e. B/C>1,
14. Profitibility of the Project must be considered of minimum 10%,
15. This is as similar as B/C>1 and even the socio-economical i.e. sustainable growth of the Project as well as by the Owner..