Balancing project cost and schedule

Changing scope usually involves changing the number or the duration of tasks. Quality, Cost and Schedule The Triple Constraint The challenge of every project is to make it work and be successful within the Triple Constraint ; the Triple Constraint being quality scopecost resources and schedule time.

Economies are not either good or bad. It might also include the purchase and inclusion of the land the house sits on, the furnishings that go into the house, additional outbuildings, and so on. There are technical as well as organizational reasons for this. What follows is a closer look at the true relationship between these four variables.

Every project has a definite start and end date. As the project progresses and scope continually changes, the end disappears over a horizon that extends beyond human detection.

There is a limit, though, to how much a schedule can be compressed. Cost Process Areas[ edit ] Cost Estimating is an approximation of the cost of all resources needed to complete activities.

They can be affected positively or negatively, depending on the nature of your project. Costs begin to rise due to collisions from people hurrying, and the lack of time allowed to put thought into scoping the project carefully also causes defects to increase, thus increasing costs.

Deliver projects on time, on budget, with delighted customers and a happy team.

The Triple Constraints of Projects: Quality, Cost and Schedule

Using the lowest level of work package detail and summarizing the cost associated with it. This example displays sparklines for earned value information copied from Project to Excel.

Project Management Concepts

Quality affects every side of the triangle, and any changes you make to any side of the triangle are likely to affect quality. Operations are the preferred way of organizing work that is ongoing and repetitive.

Planning — Activities needed to deliver on project objectives are planned. This causes taxes to raise even more, lowering spending. As with all types of knowledge work, good communication is crucial. Generally, both are limited.

The Right Balance By understanding the Triple Constraint and the ramifications associated with adjusting any one of its components, you will be able to plan your projects betteranalyze project risks and protect your company from the problems of unrealistic client expectations.

Timing of Project Life Cycle Phases Relative to those of Product Development Output of project planning is a schedule and budget for performing the detailed technical activities of product development.

The project manager is the main conduit for information flowing into and out of the project. Possible organization of 2, workers participating in the construction of an Egyptian Pyramid [Winston ] Roman Aqueducts - Imagine trying to supply fresh water to a city 30 miles inland using only gravity to transport the water.

This includes non-functional requirements like usability and performance as well as the work it takes to correct non-critical defects. These activities can be shared among team members, but more often they are assigned to one individual: Time is money, so customers often are willing to pay more if it means having their software sooner.

No matter what, we communicate openly and honestly about the pros and cons of each design decision from a cost and schedule perspective, allowing the owner to make informed decisions. Project Life Cycle The project management activities of planning, organizing, staffing, directing and controlling have to be coordinated with the software development activities of requirements, design, implementation and testing.Project managers typically have more time and techniques to break down activities to understand all the associated costs to derive a more accurate work activity cost and project budget.

Organizations that do not have project management capabilities will ultimately struggle with the implementation of projects in defining project costs, scheduling resources, and controlling project work activities.

Figure 13 illustrates the delicate balance between time and cost. Every project has a nominal schedule which is the expected amount of time it will take to complete the project under normal circumstances without rushing. It is possible to compress this schedule somewhat, but the cost of compressing the nominal schedule escalates.

The challenge of every project is to make it work and be successful within the Triple Constraint; the Triple Constraint being quality (scope), cost (resources) and schedule (time). These three elements of a project are known to work in tandem with one another.

Further, there is no free lunch in project management, and there will likely be both a cost increase and a schedule slip due to this scope increase.

Introduction to Project Management Schedule and Cost Control

Your job as a project manager is to calculate how much those increases will be, what their impact and risks are, and then get formal approval from the customer before implementing them.

As a project manager, you need to educate your customers about project management's triple constraint, create the best balance, and be aware of all changes that will impact cost, time, and scope.

The triple constraint represents key elements of a project that, when balanced well, lead to success. Planning and executing a successful project requires finding balance between the project schedule and risk.

There are five schedule risk analysis steps project teams can follow to balance schedule and risk: schedule validation, model risks, risk analysis, results analysis, and reporting & monitoring.

Balancing project cost and schedule
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