Funding Limit reconciliation
Organizations have only so much cash to allocate to projects-and no, you can’t have all the monies right now.FLR is an organizations' approach to managing cash flows against the project deliverable based on a schedule, milestone accomplishments or data constraints. This helps and organization plan when monies will be devoted to a project rather than using all of the funds available at the start of the project. In other words, the monies for a project budget will become available based on dates/or deliverable. If the project does not hit the predetermined dates and products that were set as milestones, the additional funding becomes questionable.
•NPV- Higher the better
•IRR-Higher the better
•Opportunity cost- The 2nd best option which we are giving away
•Payback period- Lesser the better
•BCR- >1 is always good i.e. benefits are more than the cost
•Roi- Higher the better
•Sunk Cost- Expended cost (Unrecoverable cost)
Types of organization is a framework that determines the hierarchy of people, function, and workflow. Expand your PM knowledge towards better PMP® exam prep.
A composite organization blends the functional, matrix, and projectized types of organizations. A composite is just two or more models that are adapted for a special project, for simplicity, or to keep power in check. Most modern businesses are of the composite type.
Two examples to help describe composite organizations are below:
An organization may deliver one project in a Balanced Matrix way, while another is being performed in a Functional way. They also have yet another project that’s being done as Projectized.
A Functional organization needs a small building, and the organization has the capability to construct the building itself. This would become a Composite organization because the organization creates a separate project team to complete this task.
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