The triple constraint - completed on time, increasing the...

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The triple constraint is a model of the limitations of scope, time, and cost goals of a project. Scope is the verification and quality of the unique product. The time is the estimation of how long it will take to complete the project. The cost determines how much money is to be invested in the project. In order for a project to be successful, these three factors should stay balanced and under control. The triple constraint triangle is not intended to be perfect, but its job is to ensure work done closely matches to the plan so there is room to make adjustments. The adjustments made to a project are made by lowering one of the time, scope, or cost standards in order to increase another one. For instance if the project cannot be
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Unformatted text preview: completed on time, increasing the cost might shorten the time intended. Project management helps reduce transaction costs which are contracting costs. Transaction costs are the fees charged by a financial intermediary such as a bank, broker, or underwriter. Project management tools can reduce transaction costs by avoiding incomplete contracting which could lead to a hold up problem. For instance if Subway restaurants chain contacts a farm to plant a specific kind of tomatoes that otherwise the farm has no use for, and then Subway backs out, there is a hold up problem. The solution for this problem is to create a command and control structure, a hierarchy or organization to produce things....
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