larry dunlap unit 10 discussion 1hello everyone B u s i n e s s F i n a n c e
Miklos Nagy
RE : Expansion Decisions
Chima,
I agree that in regards to the ROI budget, both direct and indirect costs are crucial and need to be included. When I am doing my annual capital expenditures budget, I consider both to ensure my owners/investors get the ROI percentage that is projected. Do you feel there would be an unforeseen negative impact on not including smaller costs (credit cards, utility bills etc.) during expansion? Thank you for your post!
Respectfully,
Mick
Tiffany Bredeson
Tiffany Bredeson
There are many types of costs that decision makers may fail to consider when looking at before a potential expansion. In the Energy Worldwide article (2017), electricity and the cost of utilities have a big impact on the bottom line and can be overlooked when looking to expand or relocate a business (Energy costs factor into business development, expansion decisions. (2017, February 15). Energy Monitor Worldwide).
The cost of monthly utilities has a significant impact on the bottom line, and even more so depending on the type of business. For example, operating computers, and/ or managing equipment for a manufacturing business consume a lot of electricity and generally considered fixed cost. When expanding, the cost of energy and utilities in general will increase (Marshall, McManus, & Viele, 2020).
A company would want to look into municipally owned utilities vs. investor owned utility companies as there is generally a big difference in cost (Energy costs factor into business development, expansion decisions (Energy costs factor into business development, expansion decisions. (2017, February 15). Energy Monitor Worldwide). In an effort to ensure that expenses are not overlooked, assessing both fixed and variable costs, especially around utilities are a must.
Thanks,
Tiffany
Energy costs factor into business development, expansion decisions. (2017, February 15). Energy Monitor Worldwide.
Marshall, D., McManus, W., & Viele, D. (2020). Accounting: What the numbers mean (12th ed.). New York, NY: McGraw-Hill.
Miklos Nagy
Unit 10 Discussion 1
Hello,
What other expenses might be commonly forgotten when considering the costs of an expansion decision (for example, trash removal, water)?
When looking to expand, there are several types of costs to consider. Some of these costs are one-time purchases such as new machinery or short-term expenses, such as a marketing campaign or staff recruitment and training (Marshall, McManus, & Viele, 2020). Decision-makers will also need to calculate ongoing operating costs to determine when they will start to make a profit.
Would these expenses make a material difference in the decision?
When deciding to expand, the hidden costs tend to be forgotten and not budgeted (Marshall, McManus, & Viele, 2020). An expense that may be forgotten may be moving costs. The actual moving company may be budgeted but hiring someone to clean the new and old locations may not be. Additionally, there may be an expense for dumpster rental when cleaning out the old site. Another forgotten cost could be the increase in utility costs. A larger space and more employees require more electricity and other utilities (Marshall, McManus, & Viele, 2020).
What processes might be put in place to assure that these small expenses are considered when planning an expansion project?
Depending on the cost of these expenses, it could be effective in the decision to move forward with the expansion. If a company is financially stable and has the income to manage the expansion, these additional costs may not deter expansion. The budget needs to factor in the costs to expand while still maintaining the current level of business (Energy Monitor Worldwide, 2017). Decision-makers will need to break down the current budget and find a way to trim expenses to allocate room for expansion costs. An expansion budget will need to be organized to show the largest to smallest expenses (Energy Monitor Worldwide, 2017). A business can determine how much it can afford to spend on an expansion while remaining profitable by estimating realistic costs in its budget.
Energy Monitor Worldwide. (2017, February 15). Energy costs factor into business development, expansion decisions.
Marshall, D., McManus, W., & Viele, D. (2020). Accounting: What the numbers mean (12th ed.). New York, NY: McGraw-Hill.
Rodney Gray
RE : SOW – Completion and Refinement
Excellent work Chima, very clear and concise. The SOW as a legal contract is a great way to explain the true importance of the SOW. You mentioned how the SOW should have wiggle room for modifications, how does one allow room for wiggle room and meet strict deadlines?
Olaniyi Abrams
RE : SOW – Completion and Refinement
Hi Chima,
The use of “Clauses” in SOW helps in procurement modifications. It can be used in any or all sections of SOW; especially when tying payment to performance or requirements of deliverables. Good job.
Olaniyi.
Rodney Gray
Unit 10 Discussion 1
The SOW, or Statement of work gives the reader the full expectations of what is going to be delivered to a client. An accurate statement of work can ensure that the responsibilities of everyone involved are clear. The SOW gives the groundwork for the project at hand, it also lays out the terms of the quality that will be delivered as well. The SOW needs to be as accurate as possible so that all the deliverables that are expected will be met or exceeded during the duration of the project. As a project manager, I would ensure that my SOW is clear, complete, and as concise as possible by making sure it has a table of contents, statements of goals and scope, the different deliverables, and time tables/milestones that are to be met. Details such as the completion date of the project. The different deadlines and how payments will be accepted should be considered as well.
Martin, M. G. (1998). Statement of work: the foundation for delivering successful service projects. PM Network, 12(10), 54–57.
Larry Dunlap
Unit 10 Discussion 1
Hello everyone,
As we are all familiar with by now, SOW is identified as an important tool used internally or externally to govern project activities performed by vendors or by departments within the organization (Project-Management.com, 2021). SOW is also considered to be a legal binding contract that requires the project’s client to approve before work can commence (Project-Management.com, 2021). The SOW within any project should contain description of all the work that is expected. It is vital for the SOW to be comprehensive and includes work that produces the projects deliverables as well as administrative work like project reporting (Project-Management.com, 2021).
Being that the SOW is considered a legal binding contract, it is important that the document be accurate and complete. Failure to complete the SOW and ensuring its accuracy could result in the project failing. Therefore, it is recommended to write the SOW once the Scope Statement is completed during the planning phase of the project. The SOW dictates the Work Breakdown Structure, so accuracy is important as the SOW defines what work needs to be done and the risk of wasted time is at stake.
When it comes to what goes into the SOW, it is important to begin with the information included in the Scope Statement. Scope of work, period of performance, and deliverables schedule are mandatory within the SOW (Project-Management.com, 2021). The SOW should contain when the deliverables are delivered and how each deliverable would be built set forth within the Scope Statement. The SOW report should also include reports and other communications that will be used to keep stakeholders knowledgeable of the project’s success.
I would track changes and updates to the SOW by using the project change request form. As projects move forwards it is important to identify, document, and remediate changes (Harned, 2019). The change request form would allow for the impact of changes being made to be assessed. Once the impact of changes has been assessed the change form request allows project managers to make the necessary adjustments.
Thanks,
Larry D.
Reference
Project-Management.com, (2021). Project Management Statement of Work (SOW). Retrieved from: https://project-management.com/how-to-write-the-project-statement-of-work-sow/
Harned, Brett. (May 2, 2019). Managing Change Requests in Project Management. Retrieved from: Rodney Gray
RE: Unit 10 : Course Reflection
Hello Chima,
I agree that communication is one of the most important parts of being a PM, what methods have you discovered to be an effective communicator in the field of project management?
Rodney Gray
Discussion 2
There were several things that I learned throughout the semester I learned of the importance of quality within a project, I also learned how to develop and utilize a quality assurance plan, I also learned more of the procurement process as well
Best,
Rodney
Olaniyi Abrams
Course Reflection
One of the major take-away for me on this course would be, using the MS Project software to calculate project status through Earned Value. The second would be, learning to develop evaluation criteria and decision matrix table; which are quite essential in contractor selection.
The third learning point on this course for me would be coming to terms with differences between procurement contract types. In conclusion, it’s been a great learning experience that I believe will impact my Project Management skills positively.
Best wishes to all.
Olaniyi Abrams.
Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount