Siemens PMKT - Redux Questions with well explained answers

Independent Project Organization - PM has entire responsibility and authority over project. Discussions can be made quickly. Matrix Organization - PM shares responsibility with functional manager for assigning work. Individuals report to the FM, but work with the PM. Project Manager Target Agreement (PMTA) - Formal confirmation of executing project documenting agreed targets regarding deadlines, scope, costs, & margin. More detailed than LOE. Includes project description, financial/strategic/quality/EHS targets, deadlines & milestones. Letter of Empowerment (LoE) - Document informing everyone of the responsibility and authority of the PM. SMART Targets - Goals are set using Specific, Measurable, Achievable, Realistic, Time-bound characteristics. Time - Cost - Scope Triangle - (Scope & Time) Fast & High Quality = Expensive (Scope & Cost) Cost Effective & High Quality = Takes Time (Cost & Time) Quick & Cheap = Low Quality /Reduced Functionality PM has to balance all 3 dimension w/ stakeholders expectation. Level of Authority (LoA) - Category considers Finances, Contract, Technical complexity, & Organization Determining under what conditions a bid can be submitted Defines necessary admin efforts & selection of PMCompliance Risk - 1 2 3 Business Risk - 1 2 3 Proj. Category - A B C S (Higher Low) A B C S A1 B1 C1 X A2 B2 C2 X A3 B3 C3 X - Must happen before PM040 - Reduces NCC, manages risk, aligns w/business strategy, manages portfolio - Is the approval process for Projects Business Conduct Guidelines - Siemens corporate code of conduct. Fundamental principles and rules governing how we at (ownership culture, basic working conditions, human rights) Project Acceleration by Coaching & Teamwork (PACT Workshop) - Brings everyone together to understand topics of project, brings team up to speed, enables coaching & teamwork. Mandatory for Bid Phase, Project Opening, not LL PM Requirements - Guides team & suppliers to act according to BCG, rules, laws, and regulations. Monitor projects for decrease in EHS & compliance. Fulfill 0 harm EHS. MAKES SURE EVERYONE FOLLOWS EVERYTHING. EHS - Environment Health & Safety - 0 harm for customer, employees, 0 illness. 0 incidents, compliance w/ EHS standards. Project Enabler Process - CR & Claim Management, project controlling, project planning, risk & resource management.To achieve the targeted value contribution, the PM: - Defines work packages to be outsourced, identified crucial procurement requirements & manages them, develops supply chain concept, avoids single supplier. Preconditions for excellent value contributions by procurement: - Analyzing customer proactively w/ make or buy strategy, identify appropriate suppliers, consider total cost of ownership, develop reliable logistics. Important elements regarding customer focus: - Actively gather information about customer. Involve customer in decision making & give project status updates. Manage customer expectations & satisfaction. Customer Satisfaction - Combination of managing customer's expectations & delivering appropriate technical solutions. Net Promoter Score - Internationally standardized benchmark of how likely a customer would recommend Siemens or our products. 0 = Never / 10 = Very likely Promotors = 9 & 10 Detractors = 0 - 6 Neutral = 7 & 8 Range between +100% & -100% Requirements Management - Get the customer requirements, legal/standards requirements, internal requirements, etc. and manage them throughout the whole project Quality Management - Fulfill customer requirements (conformity 2 project). Prevent NCC & obtain appropriate customer satisfactions (quality 2 customer).Quality - Degree to which a set of inherent characteristics fulfills requirements of customer. Quality Gate - Stage in PM@Siemens that requires decision to be taken to ensure good quality. Basis of project (dis)continuation. Siemens Project Management Plan - Project overview and key deliverables, determine PM prereqs, established early & continuously updated. QMiP - Provides planning, controlling, assurance & improvement for internal and external issues. Risk Management - Risk - Fire in production hallProbability - 20% Damage - $1 mil Risk Value - $200k Measures - reduce probability (forbid smoking), minimize damage (place fire extinguishers) AFTER MEASURES Risk - Fire in production hall Probability - 12%Damage - $100k Risk Value - $12k (= RISK CONTIGENCY) Completed Contract - Revenue recognition in which the company does not recognize any revenue until the contract is completed; after delivery. Percentage of Completion - A method of revenue recognition in which, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. Order Entry Calculation - Defines cost basis. Calculation of contract price.Ongoing / Concurrent Calculation - Updated OEC Final Calculation - Ultimate update of MIKA Bid Bond - A surety bond guaranteeing that the bidder will sign a contract, if offered, in accordance with his or her proposal. Advance Payment Bond - Bond given by a seller receiving an advance payment (or contract) to the buyer to assure that the funds will be returned if goods are never shipped or the services are not performed. Performance Bond - Bond that ensures compensation if damage/loss results from failure to meet performance obligations. Warranty Bond - Bond that ensures against defects (quality) that occurs after delivery of goods / end of project. Non Conformance Costs - Additional & unplanned costs resulting from not fulfilling requirements. Can't be passed to 3rd party. 60-70% originate in SALES phase PATAC - Tool to ensure full tax compliance in case of cross border business Arms-Length Principle - Cross border transactions between ICC, internal billing done same as external 3rd party. New Collaboration Model - Internal regulation for cross-border business with Siemens units in different countries. Allocates RU a profit margin. Reduces internal negotiations. Avoids PEs! Formed @ PM040 Bid Approval. Impacts Sales Phase. Mandatory for most international large projects. Major decisions are recorded in MOU, Joint signed calculation sheet, & standard contract.Milestones - Events of special importance, one project phase to another. Milestone Trend Analysis - Method for milestone monitoring. Graphical chart with milestones plotted left to right. If line goes down = ahead of schedule. Up is late.