Telecommunications Project Management Time and Cost Management

Key Points Service Development Organization not typically involved in decisions concerning major investments (Network upgrades/ new services) Proposes: Budget Schedule Cash Flow Analysis  Value analysis

Key Points Accounting specialists track individual expenditures PM monitors performance to assess Execution Detect problems that could cause a threat

Scheduling Schedule Objectives: Objective and self-consistent Realistic and capture status of project Provide up-to-date picture of status Provides as a communication tool to gauge progress and reach agreements on corrective action when needed

Critical Path Longest sequential series of tasks from the start to the end of the project Delay in any task on critical path delays the entire project

Delays in Telecom Projects 1.Lengthy negotiations to access a building to install equipment. 2.Difficulties during installation (terrain or remote area) 3.Weather conditions 4.Work rules on hours per day, holidays 5.Logistics (shipping, customs, installation) 6.Stakeholders agreement difficulties (network upgrades) Contingency plans need to be in place

Compressing the Schedule 1.Rearrange network of activities to allow for parallel activities (Fast- tracking/Concurrent Engineering/Rapid Application Development) 2.Compression of the critical path by adding resources without altering the sequence of activities. (Crashing) 3.Reducing the quality of output.

Techniques to Shorten Duration of Telecom Projects 1.Re-use previously tested network equipment and software releases to shorten installation time. (May reduce features) 2.Use of manual operating procedures for provisioning and billing until OSS able to handle new service automatically. 3.Modify scope of the project to postpone activities causing delays. 4.For site installs, start with sites that have highest probability of success.

Cost Management Estimating the cost starting with the WBS and then controlling the expenditures in an environment of continuous change. ROMA – Rough Order of Magnitude Analysis SubphaseLower Error Margin Higher Error Margin Concept-25%75% Feasibility-10%25% Definition-5%10% (0% for time)

Cost Components in Telecom Services Development per Innovation Type Type of InnovationMajor Cost Component RadicalDevelopment, engineering, testing, marketing training PlatformDevelopment, engineering, and testing IncrementalOSS development ArchitectureMarketing

Quiz and Midterm Review