Project TradeoffsThe PM controls project resources with the constraints of:TimeCostPerformanceIt is extremely difficult to stay within this triangleTradeoffs will deviate time, cost, and performance from their target values.Time and cost deviations are overrunsPerformance deviation/error is underrun (shortage in specs delivery)
Project ConstraintsA.One element is fixed at a timeTimeCost PerformanceProjectA1FixedVariableVariableCapital equipmentA2VariableFixedVariable?A3VariableVariableFixedR&D projectsB. Two elements is fixed at a timeB1FixedFixedVariableProfessional consultingB2FixedVariableFixedCapital equipmentB3VariableFixedFixedNon-process type equipmentC. Three elements fixed/variableC1FixedFixedFixedTotal successC2VariableVariableVariableNo tradeoff/constraints
Methods of tradeoff analysisSystems approach (Six Steps:1.Recognize and understand the basis of project conflict2.Review project objectives3.Analyze project environment and status4.Identify the alternative courses of action5.Analyze and select the best alternative6.Revise and get approval for the enhanced project plan
The systems approachWhat are the project objectives?•What are the constraints (physical, financial, timing, policy)?