Costs in Project Management – Costs associated with the Projects
February 12, 2025
The other modules discuss the phenomenon of globalization and the ongoing global economic crisis among other topics. This module is intended to discuss the salient aspects of the global economy including the structural features and the way in which several competing trends and factors influence the workings of the global economy. For instance, the global […]
Globalization gone too far? Many experts believe that the pace of globalization had accelerated so much in the period starting from 1990 to 2007 that the global economic crisis that happened in 2008 revealed the drawbacks of too much integration, interconnection, and interdependence. This is seen by many as the inevitable consequence of globalization going […]
Introduction A successful organization is built on satisfied and trained employees. They are the company’s greatest assets. Employee development is defined as formal education, on-the-job training, previous job experience, personality mapping, and improvement in the current skill sets as to prepare the employee for future. A trained and developed staff will contribute to productivity increase, […]
Disaster Recovery and Business Continuity plans if well planned and implemented can help mitigate risks and loss to the business. With increasing competition and complexity of systems and reliance on IT technology, Organizations are focusing in this area to ensure they do not lose out on the business operations in the event of any disaster […]
Donald Trump has raised the issue of America’s crumbling infrastructure during his election campaign. He has periodically mentioned that American economy needs a bout of infrastructure spending. Estimates state that the infrastructure overhaul will cost the Trump government more than $1 trillion. However, the United States is already deeply in debt. Even though they have […]
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 *