Cash flow and milestone payments - Revision history

Rasmusbjerg: /* Cash flow and milestone payment in general */

2019-03-04T18:58:48Z

Cash flow and milestone payment in general

← Older revision		Revision as of 18:58, 4 March 2019
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	Figure 1 shows, the cash flow of a random building-project. The figure shows the outflow of cash in the project, each month. This gives an overview of what money are being spend on the project. To make this a complete cash flow diagram, an addition in terms of inflow would be needed.		Figure 1 shows, the cash flow of a random building-project. The figure shows the outflow of cash in the project, each month. This gives an overview of what money are being spend on the project. To make this a complete cash flow diagram, an addition in terms of inflow would be needed.
	Often in a building project, the cash coming in as agreed beforehand contractually . Sometime in form of milestone payments, or at the start/end of the project. This off course all depends on the contractually agreed terms. Then the meaning of a chart over cash flow, are to give an idea to the management of the money being spent and generated and can be updated running along the project. Then the chart works like a cash flow with constant value to the management, because the chart is up to date and shows the cash flow of the project.		Often in a building project, the cash coming in as agreed beforehand contractually . Sometime in form of milestone payments, or at the start/end of the project. This off course all depends on the contractually agreed terms. Then the meaning of a chart over cash flow, are to give an idea to the management of the money being spent and generated and can be updated running along the project. Then the chart works like a cash flow with constant value to the management, because the chart is up to date and shows the cash flow of the project.
	An advantage of cash flow is, that combines and relates to a lot of other tools. As this article is about cash flow and milestone payment, of course these to combines. Another example could be Capital Expenditure (CAPEX<ref name=''CAPEX''> ''[https://www.investopedia.com/terms/c/capitalexpenditure.asp CAPEX, explanation of CAPEX,		An advantage of cash flow is, that combines and relates to a lot of other tools. As this article is about cash flow and milestone payment, of course these to combines. Another example could be Capital Expenditure (CAPEX<ref name=''CAPEX''> ''https://www.investopedia.com/terms/c/capitalexpenditure.asp CAPEX, explanation of CAPEX,
	Accessed 01/03/2019].'' </ref>). CAPEX are the funds a company are using to acquire, upgrade and maintain physical assets, such as equipment, industrial facilities or property. In according to CAPEX, cash flow’s purpose is to help the management to determine how big a pool of cash there are to invest in CAPEX. The cash flow and CAPEX also collaborates when calculating the cash flow to CAPEX ratio. This ratio describes the ability to acquire assets in the long term.		Accessed 01/03/2019.'' </ref>). CAPEX are the funds a company are using to acquire, upgrade and maintain physical assets, such as equipment, industrial facilities or property. In according to CAPEX, cash flow’s purpose is to help the management to determine how big a pool of cash there are to invest in CAPEX. The cash flow and CAPEX also collaborates when calculating the cash flow to CAPEX ratio. This ratio describes the ability to acquire assets in the long term.

	'''Milestone payment'''		'''Milestone payment'''
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	Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:		Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:

	*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp ,R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)		*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019.'' </ref>)

	*'''In big projects.''' For instance, an olympic stadium		*'''In big projects.''' For instance, an olympic stadium

Rasmusbjerg: /* Cash flow and milestone payment in general */

2019-03-04T18:51:47Z

Cash flow and milestone payment in general

← Older revision		Revision as of 18:51, 4 March 2019
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	Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:		Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:

	*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp, R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)		*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp ,R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)

	*'''In big projects.''' For instance, an olympic stadium		*'''In big projects.''' For instance, an olympic stadium

Rasmusbjerg at 18:47, 4 March 2019

2019-03-04T18:47:56Z

← Older revision		Revision as of 18:47, 4 March 2019
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	Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:		Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:

	*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)		*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp, R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)

	*'''In big projects.''' For instance, an olympic stadium		*'''In big projects.''' For instance, an olympic stadium

Rasmusbjerg: /* Risks involved in implementing cash flow and milestone payments */

2019-03-04T13:59:38Z

Risks involved in implementing cash flow and milestone payments

← Older revision		Revision as of 13:59, 4 March 2019
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	This means, that milestone payment can be a different type and size in every project, program or portfolio. This also means, that milestone payment is a tool to use wisely and with care, because it can divert from the previous examples of milestone payment. Some of the main reasons it might divert could be if the involved parties behave differently, or the project etc. comprehends something different.		This means, that milestone payment can be a different type and size in every project, program or portfolio. This also means, that milestone payment is a tool to use wisely and with care, because it can divert from the previous examples of milestone payment. Some of the main reasons it might divert could be if the involved parties behave differently, or the project etc. comprehends something different.

	Another possible risk to always keep in mind while using payment milestones, are the fact that if a milestone is missed due to the project being postponed, and the freelancers were working together to achieve the milestones to get payed, the incitement of money that got them to work together as best as possible might disappears due to the lack of achieving the first goal. This could mean that the rest of the project are being postponed even more, due to the misalignment between the freelancers/subcontractors.		Another possible risk to always keep in mind while using payment milestones<ref name=Milestone></ref>, are the fact that if a milestone is missed due to the project being postponed, and the freelancers were working together to achieve the milestones to get payed, the incitement of money that got them to work together as best as possible might disappears due to the lack of achieving the first goal. This could mean that the rest of the project are being postponed even more, due to the misalignment between the freelancers/subcontractors.

	==Reflection on the implementation of Cash flow and milestone payments in cost management==		==Reflection on the implementation of Cash flow and milestone payments in cost management==

Rasmusbjerg: /* Definition of Cash flow and milestone payment */

2019-03-04T13:59:21Z

Definition of Cash flow and milestone payment

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	A roadmap allows the management to see, what milestones that needs to be done (critical path<ref name=path> ''https://www.projectmanager.com/blog/understanding-critical-path-project-management 7, An explanation of Critical Path, Accessed 02/03/2019'' </ref>), in an order that allows other tasks can begin, and therefore what the key milestones are. In this example, the roadmap is a part of the strategy alignment in a program management system<ref name=roadmap/>. This is to clarify the milestones in an example based upon activities, That’s required to be completed before the following set of activities can begin.		A roadmap allows the management to see, what milestones that needs to be done (critical path<ref name=path> ''https://www.projectmanager.com/blog/understanding-critical-path-project-management 7, An explanation of Critical Path, Accessed 02/03/2019'' </ref>), in an order that allows other tasks can begin, and therefore what the key milestones are. In this example, the roadmap is a part of the strategy alignment in a program management system<ref name=roadmap/>. This is to clarify the milestones in an example based upon activities, That’s required to be completed before the following set of activities can begin.

	The definition of milestone payment (progress payment) are, that the freelancers get payed, when an agreed milestone is achieved, according to the contract between the management and freelancers.		The definition of milestone payment<ref name=Milestone></ref> (progress payment) are, that the freelancers get payed, when an agreed milestone is achieved, according to the contract between the management and freelancers.
	The milestones are something that either are agreed on mutually, or decided beforehand, and are in the spectrum between the start and the end of the program, phase, project, portfolio etc.		The milestones are something that either are agreed on mutually, or decided beforehand, and are in the spectrum between the start and the end of the program, phase, project, portfolio etc.
	As the word “progress payment” strongly hints, it means that its payment after the progress.		As the word “progress payment” strongly hints, it means that its payment after the progress.

Rasmusbjerg: /* Cash flow and milestone payment in general */

2019-03-04T13:58:44Z

Cash flow and milestone payment in general

← Older revision		Revision as of 13:58, 4 March 2019
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	'''Milestone payment'''		'''Milestone payment'''

	Milestone payment<ref name=~~milestone~~></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:		Milestone payment<ref name=Milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:

	*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)		*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)

Rasmusbjerg: /* Cash flow and milestone payment in general */

2019-03-04T13:58:15Z

Cash flow and milestone payment in general

← Older revision		Revision as of 13:58, 4 March 2019
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	'''Milestone payment'''		'''Milestone payment'''

	Milestone payment<ref name=~~Civil~~></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:		Milestone payment<ref name=milestone></ref> is also a very widely based tool. Meaning, it can be implemented by the management in a lot of different scenarios. In general terms, there are two ways to differentiate milestone payment:

	*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)		*'''In minor projects.''' A good example here could be Research and development projects (R&D<ref name=rnd> ''[http://www.investopedia.com/terms/r/randd.asp R&D, explanation of r&d, Accessed 28/02/2019].'' </ref>)

Rasmusbjerg: /* Reflection on the implementation of Cash flow and milestone payments in cost management */

2019-03-04T13:56:41Z

Reflection on the implementation of Cash flow and milestone payments in cost management

← Older revision		Revision as of 13:56, 4 March 2019
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	Another thing to remember in this reflection, are the references that have been used in this article.		Another thing to remember in this reflection, are the references that have been used in this article.
	As the bibliography shows, the two PMI books get referenced quite often. The PMI<ref name=PMBOK/> books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles. This leaves it up to the person who interprets the different models, on how to use them and how to work with them. This article’s goal was as stated in the abstract, to help the person reading this article to a better understanding of the cash flow and milestone payment, and how to implement it in cost management. And this article then delivers some pointers and guidelines on how to do it, and especially what to be concerned and aware about when using it.		As the bibliography shows, the two PMI books get referenced quite often. The PMI<ref name=PMBOK/><ref name=roadmap/> books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles. This leaves it up to the person who interprets the different models, on how to use them and how to work with them. This article’s goal was as stated in the abstract, to help the person reading this article to a better understanding of the cash flow and milestone payment, and how to implement it in cost management. And this article then delivers some pointers and guidelines on how to do it, and especially what to be concerned and aware about when using it.

	==Annotated Bibliography==		==Annotated Bibliography==

Rasmusbjerg: /* Reflection on the implementation of Cash flow and milestone payments in cost management */

2019-03-04T13:56:00Z

Reflection on the implementation of Cash flow and milestone payments in cost management

← Older revision		Revision as of 13:56, 4 March 2019
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	This article has now focused on what cash flow and milestone payments are, what the general definition of the two are, how it can be implemented and used with other management tools. Furthermore, the risks of the implementation of the two tools have been considered and analyzed, to get an understanding of what some of the risk’s involved whit the tools. There is always a small risk related to using models, because the models are affected by the ones making it. As the example in cash flow shows, the tool is easily affected by the ones making it, and what type of project, business etc. there are on the line in the models.		This article has now focused on what cash flow and milestone payments are, what the general definition of the two are, how it can be implemented and used with other management tools. Furthermore, the risks of the implementation of the two tools have been considered and analyzed, to get an understanding of what some of the risk’s involved whit the tools. There is always a small risk related to using models, because the models are affected by the ones making it. As the example in cash flow shows, the tool is easily affected by the ones making it, and what type of project, business etc. there are on the line in the models.

	As always, there are a risk involved with implementing and using tools. This is because there always are possible views and outcomes of the models. As the example in the” cash flow and milestone payments in general” section shows, a cash flow chart with implemented milestones can be super helpful in the management. It can be used to show the freelancers what their milestones are, and what kind of payment they are subjects to get when their milestones are completed. Then the management gets a constant overview of the cash flow in the project, an always have an idea of the cost base line, as described in the “cost ~~management”~~ section.		As always, there are a risk involved with implementing and using tools. This is because there always are possible views and outcomes of the models. As the example in the” cash flow and milestone payments in general” section shows, a cash flow chart with implemented milestones can be super helpful in the management. It can be used to show the freelancers what their milestones are, and what kind of payment they are subjects to get when their milestones are completed. Then the management gets a constant overview of the cash flow in the project, an always have an idea of the cost base line, as described in the “cost management<ref name=PMBOK/>” section.

	Another thing to remember in this reflection, are the references that have been used in this article.		Another thing to remember in this reflection, are the references that have been used in this article.
	As the bibliography shows, the two PMI books get referenced quite often. The PMI books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles. This leaves it up to the person who interprets the different models, on how to use them and how to work with them. This article’s goal was as stated in the abstract, to help the person reading this article to a better understanding of the cash flow and milestone payment, and how to implement it in cost management. And this article then delivers some pointers and guidelines on how to do it, and especially what to be concerned and aware about when using it.		As the bibliography shows, the two PMI books get referenced quite often. The PMI<ref name=PMBOK/> books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles. This leaves it up to the person who interprets the different models, on how to use them and how to work with them. This article’s goal was as stated in the abstract, to help the person reading this article to a better understanding of the cash flow and milestone payment, and how to implement it in cost management. And this article then delivers some pointers and guidelines on how to do it, and especially what to be concerned and aware about when using it.

	==Annotated Bibliography==		==Annotated Bibliography==

Rasmusbjerg: /* Reflection on the implementation of Cash flow and milestone payments in cost management */

2019-03-04T13:55:04Z

Reflection on the implementation of Cash flow and milestone payments in cost management

← Older revision		Revision as of 13:55, 4 March 2019
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	Another thing to remember in this reflection, are the references that have been used in this article.		Another thing to remember in this reflection, are the references that have been used in this article.
	As the bibliography shows, the two PMI books get referenced quite often. The PMI books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles.		As the bibliography shows, the two PMI books get referenced quite often. The PMI books are of course very relevant and are the “standard” to the subject of project management. But as the name of one of the PMI books says, it’s a ‘book of knowledge’, meaning that the book doesn’t necessarily explains what needs to be done to make it work, its more concerned and concentrated about the tools and different management styles. This leaves it up to the person who interprets the different models, on how to use them and how to work with them. This article’s goal was as stated in the abstract, to help the person reading this article to a better understanding of the cash flow and milestone payment, and how to implement it in cost management. And this article then delivers some pointers and guidelines on how to do it, and especially what to be concerned and aware about when using it.


	==Annotated Bibliography==		==Annotated Bibliography==