Mar 25, 2022 1:24 PM
Replying to Keith Novak
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This is fairly common in large scale manufacturing and there can be many reasons behind it.
Additional cost monitoring costs more money. Government projects for example can cost significantly more than commercial, because they require much more stringent cost accounting to prevent fraud. Parts and raw materials are bought in bulk from suppliers and rather than for individual products or even programs, as another example.
While it may be considered cost effective at the corporate level, project managers often lament that they are not given sufficient information to make well informed business decisions up front. Cost control becomes the subject of later projects to reduce the cost designed-in when we didn't know what things really cost.
