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Individual events, forecasting, 67, 68
Inflation, cost variation due to,
144–145
Information gathering, 22
Information technology (IT) projects,
2, 44
Institution of Civil Engineers (ICE),
168
Integrating cost and value, 255
in inbound supply chain, 260
and integrated value and risk
management, 272–274
process for, 274–277
in project delivery/implementation,
267–272
in project design, 260–265
in project development, 265–267
strategies for, 261
Internal rate of return (IRR), 133–137,
159
International Organization for
Standardization (ISO), 223
International Project Management
Award, 248
Internet Week, 215
Interorganizational cost management,
266
Inventory, as critical SCM area, 215
IRR, see Internal rate of return
ISO (International Organization for
Standardization), 223
ISO-9000/9001, 223
IT projects, see Information technology
projects
Joint Fight Striker (JFS) program, 29,
215–217, 226
Journal of Business Strategy, 209
Jowell, Tessa, 1
Kaminsky, Phil, 213
Kano model, 263–265
Key performance indicators (KPIs),
172
Kodak, 242
KPIs (key performance indicators), 172
284 Index
Labor cost, 49
under constant rate assumption, 61
and learning curve, 61–64
LCC, see Life-cycle costing
Leadership, 272–273
Lean manufacturing, 265–267
Lean production, 212
Learning curves, in cost estimation,
61–64
Leasing assets, 153
Least squares regression, 71
Lessons learned, 202
Life cycle, project, see Project life cycle
Life-cycle costing (LCC), 268–272
Limit-of-liability contracts, 138
Linear regression analysis, 69–76
best fit in, 70–71
evaluating fit of regression line,
73–76
example of, 71–73
interpretation of coefficients, 71–73
least squares regression, 71
linear trend (straight line) equation
in, 70
multiple linear regression, 76
Linear trend (time series analysis), 69
Lockheed Martin, 2, 215
Logistics, as critical SCM area, 214
London Olympics, 1
Lump sum contracts, 140–141
‘‘Make’’ process (SCOR model), 231
Malcolm Baldridge Award, 248
The Management of Business Logistics,
230
‘‘Management of projects,’’ 268, 276
Materials, cost of, 49
Metz, Peter J., 212
Mezzanine debt, 152
Miles, Lawrence D., 168
Milestones, identifying, 93
Millennium Bridge, London, 47
Millennium Dome, London, 43–44
MIL-STD-973, 192
Money, time value of, 132–133
Morris, Peter, 268
Motorola Corporation, 249
Multiple linear regression, 76
Multiyear projects, budgeting for, 84
‘‘Must-be’’ attributes (Kano model),
263, 264
National Bicycle, 212
Needs assessment, 8, 19–22, 173
Net present value (NPV), 134–137,
159–161, 166–167
Nonlinear trend (in time series
analysis), 69
Nonrecurring costs, 50
Normal costs, 50
Northrop Grumman, 215
No trend (in time series analysis), 69
NPV, see Net present value
Objectives:
project, 23
in scope definition document, 29
OBS, see Organizational breakdown
structure
OD (original duration), 115
Off-take contracts, 155
‘‘One-dimensional’’ attributes (Kano
model), 263, 264
Operations, as critical SCM area, 214
Optimum choice phase, 173
Options models, 159–161
Organizational breakdown structure
(OBS), 34, 35
Original duration (OD), 115
Outcome of project, forecasting, 68.
See also Forecasting methods
Parametric cost estimation, 52–55
Payment arrangements:
and cash flow, 137–148
claims and variations, 142–143
cost-plus, 129
cost-reimbursable, 138–140
cost variation due to
inflation/exchange rate
fluctuation, 144–145
credit control system for, 130
payment plans, 140–142
price incentives, 145–146
retentions, 146–147
Payment plans, 140–142
Index 285
Pay scales, 147
Pearl curve, see S-curve
Pentagon, JFS program and, 215,
216
Percentage complete rule, 124–125
Performance attributes (Kano model),
263, 264
Performance monitoring and tracking,
19
gap analysis for, 107
in project control process, 106–107
of project supply chain, 227–229
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