Project Management Tradeoff Analysis In A Project Environment

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Project ManagementTrade-off Analysis In A
Project Environment
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Outline

• Introduction
• Methodology for Trade-off Analysis
• Contracts Their Influence on Project
• Industry Trade-off Preferences
• Conclusion

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Overview Of Project
Management
COST
TIME
RESOURCES
PERFORMANCE/TECHNOLOGY
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Tradeoffs
Cost
Time
Performance
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Categories of Constraints
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Trade-off Facing Factors
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The Systems Approach
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Six Steps Trade-off Analysis

• Recognizing and understanding the basis for
  project conflicts
• Reviewing the project objectives
• Analyzing the project environment and status
• Identifying the alternative courses of action
• Analyzing and selecting the best alternative
• Revising the project plan

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Tradeoff Questions

• Is the information pertinent?
• Is the information current?
• Are the data complete?
• Who has determined that this situation exists?
• How does he know this information is correct?
• If this information is true, what are the
  implications for the project?

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Unexpected Problems

• Human errors/failures
• Impossible schedule commitments
• Poor control of design changes
• Poor project cost accounting
• Machine failures
• Failure to receive a critical input
• Failure to receive anticipated approvals

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Unexpected Problems

• Uncertain Problems
• Too many concurrent projects
• Labor contract expiration
• Change in project leadership
• Possibility of project cancellation

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Unexpected Problems

• Unexpected Problems
• Over-committed company resources
• Conflicting project priorities
• Cash flow problems
• Labor contract disputes
• Delay in material shipment
• Fast-track people having been promoted off of
  the project
• Temporary employees having to be returned to
  their home base

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Unexpected Problems (Continued)

• Inaccurate original forecast
• Change in market conditions
• New standards having been developed

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1. Performance is Fixed
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1. Performance is Fixed (continued)
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2. Cost is Fixed
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3. Time is Fixed
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4. No Constraints are Fixed (1/4)
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4. No Constraints are Fixed (2/4)
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4. No Constraints are Fixed (3/4)
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4. No Constraints are Fixed (4/4)
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Industry Trade-off Preferences
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Special Cases