What’s your pet EAC formula?

Project forecasting provides useful insights on the final cost. As such, along the way, as you periodically progress the project, you’ll want to know and re-assess the Estimate at Completion. It gives all a glimpse of the possible outcome that boils down to the project’s probability of a successful outcome or failure. I know of no singular formula to calculate EAC because there were several of them.

Being a risk manager himself/herself, a project management professional’s task is to improve the project’s predictability, enabling the project to make an accurate forecast whenever needed. In this, high quality inputs, recording vital information, data monitoring, administrative controls, and analysis are critical to achieve a successful forecast from which informed decision can emanate. Project cost projection (EAC) has to be based more on facts than assumptions to be useful! One must avoid the temptation of even thinking that forecasting as just a good guess, a gut feel, and/or a number exercise!

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Questions About Project Cost Reconciliation

Some cost management professionals said it’s a waste of time chasing, say, USD0.25, spending hours to reconcile. The cost of the effort involved translates to maybe more than tens of thousand times the amount being reconciled.

My question to you all. 1) Do you think that this reconciliation exercise down to the cents value is really needed and why? 2) Is there a better approach?… a faster way of reconciliation? Rufran hashtag#pmsolutionpro hashtag#rufranfrago hashtag#projectmanagement Picture credit: blog paytraq.com, 2019.

Read more and express your professional take.

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Digital Transformation for Utilities

Digital transformation is all around us, whether it is depositing a cheque by phone, asking Alexa to turn down lights in a room, or smart kitchen devices sending cooking progress via Bluetooth. Using remote sensors and analytics to capture data and discover valuable insights about customers, assets and suppliers has opened a frontier for new innovative services and approaches to doing business.

Broadly placed under the term digitalization, this development gives an organization better visibility into their operations and more control over outcomes, saving much time and effort while reducing human error and improving the overall customer experience and service quality. Is there a business case for digital transformation of utilities that operate vast system of assets and deliver vital services to many customers?

As digital applications become mainstream, it is getting vital for the utilities to have a digital strategy to effectively manage the increasingly complex nature of their networks and services.

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PM Solution Pro participated in the AACE Dinner Meeting, “Proactive Trend and Change: Avoiding the Iceberg Effect.”

Risk is about the future. Imagine that from “NOW” (the present) and the future state, there is a timeline. The time duration to the future has to have a value. Threat and Opportunity is about the future. There is no additional sense saying future risk. Saying so is redundancy.
Reliability of work data increases over time, and it signals the right time for full integration. Reliability is a result of data maturity. Good integration results in an effective risk-based project execution, the execution that makes most sense. While the acquisition of good quality information is always in progress, the risk specialist and each team member should strive to help the project manager identify and highlight critical elements needed for success. Always remember that risks must be identified before they can be managed. Risks cannot be identified if no information or indicator relating thereto exists. Unknown risks cannot be managed.

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Book Signing Event at El Torito, Dana Point, California. See you there!

Book Signing Event at El Torito, Dana Point, California. See you there!

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Cost Reduction Strategies for Utilities Part 5: Enterprise Resource Planning System

In plain words an Enterprise Resource Planning (ERP) system is a central database system that houses financial, human resources, material, schedule, regulatory and work orders information about the capital and operational expenditures (capex and opex) of a company. It has various modules that display that information in a fashion that is suitable for various departments, functions and levels of an organization. An ERP system today is a crucial tool for utilities to bring greater visibility to the workflows, resource availability, productivity levels, stakeholder commitments and asset management. Access to good data leads to better decisions. Utilities have all kinds of useful and important data about their people, projects, asset health, contractors, facilities, inspection and maintenance, connection requests, regulatory commitments and documents.

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