FIT2002 Lecture Notes - Lecture 6: Harvard Business Review, Cost Overrun, Whole-Life Cost
3 Aug 2018
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Document Summary
It projects have a poor track record for meeting budget goals. A cost overrun is the additional percentage or dollar amount by which actual costs exceed estimates. A 2011 harvard business review study reported an average cost overrun of 27 percent. The most important finding was the discovery of a large number of gigantic overages or black swans in it projects. A perceived reason for cost overruns is that many it projects involve new technology or business processes and thus pose an inherent risk. However, using good project cost management can change this false perception. The united kingdom"s national health service it modernisation program was called the greatest it disaster in history with an estimated billion overrun. The program had problems due to incompatible systems, resistance from physicians, and arguments among contractors about who"s responsible for what. What is cost and project cost management? documentation that will be used for planning, executing, and controlling project cost.
