Costs in Project Management – Costs associated with the Projects
February 12, 2025
What is De-Risking ? Outsourcing is a process that involves selection of vendors who would then do the necessary work for their clients regarding handling such work that the clients deem can be done by Third Party Vendors. What this means is that the clients first narrow down the list of outsourcers that can be […]
Recently the Dow Jones index faced a drastic fall. This fall was partly because of the fears of inflation that were sparked by increasing employee wages. This is because employee wages have been stagnant in America for close to a decade now. The drastic short-term rise was attributed by many to be the result of […]
Business Process Improvement projects are extensively used by Organizations from time to time to overhaul their existing processes and operations in a bid to improve the efficiency and effectiveness. In the current situation where intense competition and changing business environment calls for Organizations to keep reinventing themselves and building capability as well as flexibility in […]
The Transformation of the Role of the CTOs since the 1990s and to the Present Digital Age Until a decade or so, the CTO or the Chief Technology Officer used to be someone who was by name an executive position, but, in reality, was secondary to other execs including the finance and administration persons. Indeed, […]
There has been considerable debate in the industry in the past as to whether Six Sigma projects are worth all the hoopla that has been surrounding it. For decades before this debate, Six Sigma was followed in a cult-like manner and organizations would never question the financial viability of the projects undertaken. However given the […]
This article is a follow up of the earlier one related to the project management processes for an automation tool. This tool is to be used for automating the processes of a maintenance project in a software company.
A rework can arise due to:
Rework arising due to change in scope means that the project baseline has to be modified and corresponding changes made to the project management plan, resource plan, schedule plan etc.
Any change in scope affects not only the schedule but the cost as well. So, a proper scope change mechanism would take into account the effect to the schedule as well as the costs associated in carrying out the same.
Considering the scenario where 20 percent of the rework has to be done in the context of the automation tool it means that:
There are two aspects of scope management. One is preventive in nature and the other is corrective actions. Rework due to the new requirements falls into the corrective category and a formal change request has to be raised that takes into account the various parameters like changes to the cost and the time.
This is also known as defective repair. In the context of the automation tool, it would mean that the deliverables have not been found satisfactory during testing. The rework has to be fit into the existing schedule as the project charter specifies timely delivery and hence any change to the schedule would involve changes to the cost of the project.
Any change requests should go in through an integrated change management system. All the corrective, preventive and defect repairs are covered here. Any change to the project management plan is covered here.
The following steps have to be taken to accommodate the 20 percent change in the scope
In addition, the project manager has to make sure that:
The one overriding priority is to ensure that the customer’s requests are met without compromising on the internal stakeholders needs. A fine balance has to be struck between the objectives of the internal and the external stakeholders.
Your email address will not be published. Required fields are marked *