BTM 480 Study Guide - Final Guide: Work Breakdown Structure, Failure Mode And Effects Analysis, Failure Cause
4 Dec 2018
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Document Summary
Based on collective judgments and experiences of top and middle managers. Overall project cost estimated by estimating the costs of major tasks. Signi cant errors maybe made for low-level tasks. A lower level of budget acceptance is likely due to limited participation. It provides little training opportunities in budgeting for junior managers. Work breakdown structure (wbs) identi es elemental tasks. Those responsible for executing these tasks estimate resource requirements. Bottom-up is the preferred budgeting approach from the project manager"s perspective disadvantage: Risk of overlooking some important, and possibly expensive, tasks. List consequences of each failure and evaluate severity (s). (1 to 10, being worse) List causes of each failure and estimate likelihood (l) of occurring (1 to 10) Estimate ability to detect (d) each failure identi ed (1 to 10) Calculate the risk priority number by multiplying sxlxd. Sort list by rpn and consider ways for reducing the risk associates with the highest rpns.
