My management instruct me to take up a halfway project that having a cost constraint (38 million to complete the project). What's your next action? How should you response to this situation? Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Making the estimations. To make the estimations you need to know the product/service/result to create and then perform the math based on resources and time. Do not forget Barry Bohem´s Cone of Uncertainty that was created for software products but has been taken for lot of others disciplines (including the PMBOK GUide in other versiones). Saving Changes...
As Sergio indicates, when handed a cost constraint, it is in everyone's best interests to determine whether minimally acceptable scope can be delivered in a reasonable time frame within that cost constraint.
Based on what has been spent to date and what has been delivered, you'd want to calculate an EAC (taking into account the cone of uncertainty) and see if it will fit or not.
If not, better to have the hard discussion sooner rather than later with your management team!
Kiron Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
I agree with Kiron on this.
I think the key to managing the cost constraint and ultimately having a successful project is transparency. This means team members and all stakeholders should be kept informed, priorities should be set, and everybody should fully understand the project objectives. Saving Changes...
Jose Luis Gonzalez RugelPresidente Grupo Gonzalez - Program Manager - Docente- Consultor - ATP Trainner| DipromacomGuayaquil, Guayas, Ecuador
I agreed with Sergio. The next step is to work makinn the estimation. I suggestion work the estimation with all stakeholder for to have the more exactly values.
If the estimation is less than the current budget, it is necessary to speak with the sponsor Saving Changes...
Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
Agree with above. Where are you now compared to where you need to be in conjunction with the expected completion date.
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1 reply by azrul shah ismail
Jan 07, 2018 11:49 AM
azrul shah ismail
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Thanks all for the feedback. Answering Andrew question, the project completion as of to date only reached 43% and 18% delayed. Looking at the project ROI after simulated the deliverable tie to the project costing, scope and timeline , it takes me another 10 months to normalize the project cost subject to other sponsor availability from another government agencies to take over funding the project immediately. 10 months duration its to long for me and shall jeopardize my company profit and heavily contribute a big loss to the company. I've brought this up to management attention to withdraw the project else it shall impact the company profit and demotivate the project resources.
I can see the the main sponsor hard to make any decision in the steering committee meeting due the cost constraint its to huge to absorb. I've suggested them to stop the project and start to conduct a special exercise such as re-baseline the scope, schedule and urgently perform the financial evaluation with the project team and the sponsor to decide. But today it seems the proposal not being agreed by the key committee but asking me to continue the project until its completion. This is a nightmare bro..
Thanks Sergio,he mentioned a powerful model calculations of the cone to help you out with other estimation techniques, once you have more clear numbers on the funnel of attrition and all risk reassessed you can move on with your determined budget. Saving Changes...
I am sure cost you mentioned is not the only constraint you have. There must be a schedule and a scope that has to be completed (of course). The first thing I would do is, check the health of baselines to know where the project stands at that point. And that is what EVM or project/ performance measurements will tell you. Than taking at least the key stakeholders on board before I get on with the project. Saving Changes...
Even before estimates, find out if scope and/or schedule can be flexible (obviously not quality). The reason? Depending on what they say, it might effect your estimated because of contingency and reserve factors. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
The cost constraint might just by a symptom of other problems.
I recommend to do a end2end project assessment, starting with interviewing the key stakeholders 1:1 to find out the key issues. Saving Changes...
Mansoor MustafaSenior PM| Government DepartmentRawalpindi Punjab, Pakistan
Agree with Kiron and Anish
Managing the cost constraint project and transparency in project is ultimate objective, all stakeholder must be knowing what all can be achievable from the given cost, right from start of project, so that priorities should be set and everybody on board Saving Changes...
