Cost Performance on Project S Often Poor, What Are the Possible Causes of This and How Can It Be Improved?
The cost planning is one of important phases for project management. It will goes through whole project’s life cycle. It is foundation of project and it will tell the project are measured, reported and controlled in every process. Estimating is the process of forecasting or approximating the time and cost of completing project deliverables.
A successful project management will include time control and cost planning. Accompany with these two important features, and then bring out the best quality project.
Causes of poor cost performance
According to many decades’ records, Morris et al. (1989) has researched more …show more content…
Also, complexity of project could also be defined as ’’ in term of the diversity of stakeholders with different interest and long chain of communication channel with slow feedbacks’’ (Cerpa and Verner 2009). According to this situation, managing and caring their tastes will cost lots of time and resources, thus it could affects on cost performance. To get rid of poor cost performance from complexity project, better overall planning need to be done properly, and every single aspects need to care of.
As Johnsinit (2010) said, “Managing complex projects needs experience, expertise and exposure”. Therefore, project needs to fit clients’ need
Macro changing for project
Macro change is another reason for poor cost performance. For a macro view, goal of project is delivery on end of time, which means could include all features in macro view, for example, estimation, schedule. Therefore, through any minor macro change, the whole lifecycle of project has to be rechecked. That means it will cost more time and resources. “With each macro change, precious project resources are diverted to activities that were not identified in the original project scope, leading to pressure on the project schedule and budget” (Narayan 2010). Macro change of project could guides to uncertain risk, funding change and budget change, even the whole project team. Bad macro change will also let stakeholder not confidence in managing team and start to doubt their decision. One thing