In: Operations Management
A good example of “level-of-effort (LOE)” is
a)budget forecast
b)budget control
c)contract management
d) cost analysis
Ans: Option b: Budget control
Explanation: Level of effort are the term used for ongoing work in project management that is not on the critical path or activity which will not produce a project deliverable. The level of effort activities can’t be late and the project manager should put the activity on the project schedule. Some examples of level of effort are project management, team lead, partner management, customer relationship, communication, administration, financial, maintenance, internal controls etc. Financials include administering budgets and financial controls. Estimates of level of efforts are based on passage of time. For example if a project management activity has a time span of 8 months. It si considered 25% complete after two months. It is common for level of effort to continue throughout the entire schedule of the project. For example Budget control is an ongoing activity and will span from end to end of a project.