Homework Sourse2 Technology Forecasting and Business Forecasting Q 3 Projec
Solution
Answer:- Technology forecasting can be defined as the prediction about the chances and / or possible future development which can be experienced in the technology. The main objective of this kind of technology is to identify and evaluate the new products or processes which can present some kind of opportunities or threats to the organization.
Business forecasting utilizes the different methods of forecasting in order to estimate the allocation of their budgets or plan for the anticipated expenses for the coming period of time. These kinds of forecasting are dependent on the projected demand for the goods and services offered by the organizations. These methods can help the organization to deal with the issues such as plant shut downs, missed due dates, lost sales, inventory shortages and so on.
Answer:- A protectized organization can be seen as an organizational structure in which full authority is assigned to the project manager, he is free to set his own priorities, apply resources, and direct the work of persons assigned to the project so that the projects can be fulfilled within the predefined dates and budget.
A functional organization can be defined as a conventional organizational structure where the organization if divided into smaller department depending upon the specialized functional areas for example IT, finance, or marketing. In other words , these are the organizational structure which implement the principle of specialization based on function or role.
Answer:- Fixed Price Contracts:- This is also termed as Lump Sum contracts and in this a fixed price is agreed by both the seller and buyer for the project. It includes a very high level of risk for the seller while least risk for the buyer. This type of contract requires the contractor to successfully perform the contract and deliver conforming supplies or services for a price agreed to up front. This type of contract places the most performance and cost risk paid. It if costs them more than they expected, they still get the amount originally agreed upon. If it costs them less, they make more profit. A firm-fixed price contract is suitable for supplies and services that can be described in sufficient detail to ensure complete understanding of the requirements by both parties and assessment of the inherent risks of performance.
A cost reimbursement contract allows for payment of all incurred costs, within a predetermined ceiling, that can be allocated to the contract, are allowable within cost standards, and reasonable. Therefore, all types of cost reimbursement contracts place the least cost and performance risk on the contractor. They basically only require the contract to use their \"best efforts\" to complete the contract. However, this type of contract is required when the uncertainties of performance will not permit a fixed price to be estimated with sufficient accuracy to ensure a fair and reasonable price is obtained. For example, if a particular task has too much uncertainty and we ask a contractor to price it on a fixed price basis, they would build in contingency costs to allow for the unknowns and it would likely cost the Government much more money than if they could price it on a cost reimbursement basis.
