June 2008 - Study on Project Failures

June 2008 - Study on Project Failures - A STUDY IN PROJECT...

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Unformatted text preview: A STUDY IN PROJECT FAILURE Dr John McManus and Dr Trevor Wood-Harper Research highlights that only one in eight information technology projects can be considered truly successful (failure being described as those projects that do not meet the original time, cost and (quality) requirements criteria). Despite such failures, huge sums continue to be invested in information systems projects and written off. For example the cost of project failure across the European Union was €142 billion in 2004. The research looked at 214 information systems (IS) projects at the same time, interviews were conducted with a selective number of project managers to follow up issues or clarify points of interest. The period of analysis covered 1998-2005 the number of information systems projects examined across the European Union. Number of IS projects examined within European Union Rank Sector No. of projects examined 1 Manufacturing 43 2 Retail 36 3 Financial services 33 4 Transport 27 5 Health 18 6 Education 17 7 Defence 13 8 Construction 12 9 Logistics 9 10 Agriculture 6 Total 214 Project value in millions of Euros British Computer Society - A study in project failure http://www.bcs.org/server.php?show=conWebDoc.19584- 1 - Value range in millions (€) Number of projects Percentage (%) Accumulative (%) 0 – 1 51 23.831 23.831 1 – 2 20 9.346 33.177 2 - 3 11 5.140 38.317 3 - 5 33 15.421 53.738 5 - 10 4 1.869 55.607 10 - 20 87 40.654 96.261 20 - 50 6 2.804 99.065 50 - 80 2 0.935 100.000 Totals 214 100.00 100.00 At what stage in the project lifecycle are projects cancelled (or abandoned as failures)? Prior research by the authors in 2002 identified that 7 out of 10 software projects undertaken in the UK adopted the waterfall method for software development and delivery. Results from the analysis of cases indicates that almost one in four of the projects examined were abandoned after the feasibility stage of those projects completed approximately one in three were schedule and budget overruns. Project completions, cancellations and overruns Waterfall method lifecycle stage Number of projects cancelled Number of projects completed Number of projects overrun (schedule and/or cost) Feasibility None 214 None Requirements analysis 3 211 None Design 28 183 32 Code 15 168 57 Testing 4 164 57 Implementation 1 163 69 Handover None 163 69 Percentages 23.8% 76.2% Of the initial 214 projects studied 51 (23.8 per cent were cancelled) - a summary ofOf the initial 214 projects studied 51 (23....
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This note was uploaded on 05/26/2011 for the course PM 199 taught by Professor Dr.atif during the Spring '11 term at University of Engineering & Technology.

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June 2008 - Study on Project Failures - A STUDY IN PROJECT...

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