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...
Sante has a good point which I agreed with. Apart from EAC with consideration of cost of uncertainty & risk as mentioned by Kiron, another EVM index i.e TCPI is good index to check the remaining work over the budget remaining. The underlying principle is still anchored down to the WBS and cost aggregation accuracy in reaching your new EAC.
Check the estimates. Find a valid EAC. Compare the EAC with the limitation. Take appropriate action based on the comparison results. Each of these steps includes lots of work and may need different strategy. This is just a road-map. Saving Changes...
Ali AbbasManager Projects| Hilal Foods Private LimitedKarachi, Sind, Pakistan
Do Earn Value Analysis, Calculate BAC, EAC, VAC and display transparency to Management & Project Stakeholders.
Agree with above. Where are you now compared to where you need to be in conjunction with the expected completion date.
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.. Saving Changes...
I strongly agreed with Sergio, I'm in a midst using all my knowledge, experience and trying to get the best reference that I can. Theoretical, yes it seems all results has been formulated by the book but looking at this situation I would like to try Thomas approach.
I believe there are something behind the curtain that I need to know from the key stakeholders.
