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3 Cost The work content identified by WBS is used to estimate the approximate cost required. The estimated cost is used as the basis to define and manage the budget. An “EVMS (Earned Value Management System)” is used for cost management. ●Earned value management system An “EVMS (Earned Value Management System)” is a technique for quantitatively evaluating the progress of a project by comparing it with the budget and work schedule. EVMS is used to prepare a cost plan based on the estimated person-hours derived from the breakdown of work from the WBS, and the variance of the schedule and cost is measured. The measured results are then analyzed to forecast work delays and over-budgeting, and adjustments are made to the schedule and budget. 4 Quality 5 Human resources 6 Abbreviation for “Earned Value Management System.” Reference Person-hours “Person-hours” represent the volume of work required for activities such as system development. Person-hours are typically indicated in person-month units. Reference Person-months “Person-months” are a unit of personhours. One person-month equals the amount of work performed by one person in a single month. Example Work that takes one person three months to accomplish represents three person-months of work. Example Work that takes two persons three months to accomplish represents six person-months of work. Project management Project members are procured based on the deliverables identified by WBS, as well as work scope, time, cost, and quality. The project team is also structured and trained according to the deliverables and work scope. The success of the project hinges on manpower and teamwork. In order to effectively capitalize on the capabilities of all persons involved in the project, it is necessary to prepare an optimum environment and assign the right project members to the right positions. EVMS Chapter 5 Quality is maintained and improved by defining and managing the desired quality targets of the deliverables, which are based on the deliverables identified by WBS. The following items are reviewed and summarized in a “quality management plan:” targets, quality maintenance and improvement plan, quality inspection technique, review plan, and testing method. Reference Communication It is necessary to manage communication so that there is sharing of information, and mutual understanding between working project members and the project manager. E-mail is typically used for communication, but other methods are also used to share information within the project such as preparing mailing lists and using groupware. In addition, regular meetings are held to encourage mutual understanding between project members, information sharing, and reporting on progress. Reference Mailing list Refer to “Chapter 9-4-3 Network application.” Reference Groupware Refer to “Chapter 3-1-2 Concept of business process.” 136