Explain The Roles And Responsibilities Of Enterprise Project

Explain The Roles And Responsibilities Of Enterprise Project Manage

Explain The Roles And Responsibilities Of Enterprise Project Manage

1. Explain the roles and responsibilities of Enterprise Project Manager? 2. You have two projects from which to choose: - Project A with a payback period of 10 months - Project B with a payback period of 20 months. Which one would you prefer and explain why?

3. You have two projects to choose from: Project A with an NPV of $105,000 or Project B with an NPV of $35,000. What is the opportunity cost? Imagine that you are the project manager for a project. While reviewing the cost estimates for the project you notice that one of the cost estimates for an element in the WBS is 20% higher than previous project for very similar work.

What should you do next? Together with your team, you applied three-point estimation on a Critical path which consists of two activities. The following duration uncertainties are all calculated assuming a ±3 sigma Confidence interval. The duration uncertainty—defined as pessimistic minus optimistic estimate—of the first activity is 18 days; the second estimate has an uncertainty of 24 days. Applying the PERT formula for paths, what is the duration uncertainty of the entire path?

Your project exceeded costs in the past caused by an underestimation of resource costs in the cost baseline: PV: $1,200,000, EV: $1,000,000, AC: $1,200,000. You expect the underestimation to influence the future as much as it did in the past. If the BTC (Budget to complete) is at $1,000,000, what should be your new EAC (Estimate at Completion)?

Paper For Above instruction

The role of an Enterprise Project Manager (EPM) is pivotal in the successful delivery of organizational projects, ensuring strategic objectives are accomplished efficiently. An EPM is responsible for overseeing multiple projects, aligning them with enterprise goals, managing stakeholders, and leading cross-functional teams. Their responsibilities include project planning, resource allocation, risk management, and ensuring compliance with organizational standards. They act as the bridge between senior management and project teams, facilitating communication, decision-making, and problem-solving throughout the project lifecycle.

The enterprise project manager also plays a critical role in governance, establishing policies and procedures that guide project execution. They monitor performance metrics, assess project health, and implement corrective actions when necessary. Part of their responsibilities involves portfolio management—prioritizing projects, allocating resources across projects, and balancing competing demands to optimize value delivery to the organization.

In addition to technical project management skills, an enterprise project manager must possess strategic thinking and leadership abilities. They influence organizational change, foster stakeholder engagement, and embed lessons learned into future projects. Their role extends to promoting best practices, developing project management capabilities across teams, and ensuring that projects contribute to the overall strategic vision of the enterprise.

Choosing between projects with different payback periods involves strategic financial analysis. Project A, with a 10-month payback, offers a quicker return, which might be preferred for cash flow considerations, risk mitigation, and organizational liquidity. Conversely, Project B, with a 20-month payback, may align better with long-term strategic goals or higher overall value, despite taking longer to recoup investments. The decision depends on the organization’s strategic priorities, risk appetite, and financial health. Typically, shorter payback periods are preferred in volatile markets for quicker recovery of invested capital and reduced exposure to risk, while longer-term projects may offer greater total value despite longer payback durations.

In terms of Net Present Value (NPV), the opportunity cost of selecting Project B over Project A is the forgone net benefit of Project A, which is not explicitly provided but can be conceptualized as the potential additional net benefits that could be realized from Project A if chosen. The NPV of Project A at $105,000 versus $35,000 for Project B indicates that Project A provides higher value—choosing the more valuable project maximizes organizational gains, assuming the other factors are constant. Opportunity cost here emphasizes the potential benefits sacrificed when opting for the less financially advantageous project.

When reviewing cost estimates, noticing a 20% increase in a WBS element's cost compared to similar previous projects warrants immediate investigation. The project manager should first verify the reason for this discrepancy by consulting with the estimating team, reviewing scope changes, and ensuring that the assumptions are consistent. If the increase is justified by scope expansion or other valid reasons, adjustments should be documented and communicated to stakeholders. If the increase appears unwarranted or due to estimation errors, corrective actions, including re-estimation or scope reassessment, are necessary to prevent budget overruns and maintain project viability.

Applying three-point estimation involves calculating the expected duration using the PERT formula, which accounts for optimistic, most likely, and pessimistic estimates. The uncertainty (pessimistic minus optimistic) for each activity provides insight into risk levels. For the combined path, the total duration uncertainty is derived by aggregating the variances (standard deviations squared) for each activity, then taking the square root of the sum. Specifically, the total duration uncertainty of the path = √(18^2 + 24^2) = √(324 + 576) = √900 = 30 days. This quantifies the overall expected variation in project completion time, considering individual activity uncertainties.

Regarding cost performance, the previous cost estimates showed an underestimation of resource costs, leading to overspending. The Cost Variance (CV) was negative, indicating that the project is over budget relative to earned value. To estimate the new Estimate at Completion (EAC), the formula used is: EAC = Actual Cost (AC) + (Remaining Work) / Cost Performance Index (CPI). Given PV = $1,200,000, EV = $1,000,000, and AC = $1,200,000, the CPI = EV / AC = 1,000,000 / 1,200,000 ≈ 0.83. Using the CPI, the revised EAC would be calculated as EAC = BAC / CPI = 1,200,000 / 0.83 ≈ $1,445,783. Thus, the new EAC, considering similar cost overruns, would be approximately $1,445,783 to reflect the ongoing resource cost underestimations and past performance.

References

• Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
• Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Shenhar, A. J., Dvir, D., Levy, O., & Maltz, A. C. (2001). Project success: a multidimensional strategic concept. Long Range Planning, 34(6), 699-725.
• Meredith, J. R., & Mantel, S. J. (2017). Project Management: A Managerial Approach. Wiley.
• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
• Zwikael, O., & Smyrk, J. (2011). Project Management for the Creation of Organisational Value. Springer.
• Heldman, K. (2018). Project Management JumpStart. Wiley.
• Fisher, R. (2014). The Value of Project Portfolio Management. Journal of Business case Studies, 10(3), 179-188.
• Too, E. C., & Weaver, P. (2014). Managing Project Risks. Wiley.
• Martin, J., & Thomas, J. (2019). Cost Estimating and Cost Management. PMI.