Question

You are the project manager for the continued development of a marketed product that competes with five other products on the market. Your boss calls you into his office and tells you that in order to ensure that the lifecycle of the product ensures competitiveness, you must decrease the planned cost for your project by 10% at the time of project completion. Your NEXT BEST step is to:

A Continue managing the project as previously planned per the current scope baseline.
B Inform your project team that in order to meet the 10% cost reduction goal, three quality tests will be eliminated, which may increase the risk of failing product safety. However, you are willing to take that risk.
C Tell your project management team that all deliverables must be completed for the entire project 6 months sooner than planned. Then, report to senior management that a contingency plan has been implemented with about a 85% chance of succeeding.
D Document the requested change per your organization's procedure in preparation to carry out integrated change control.

Answer 1

The next best step for a project manager who has been instructed to reduce project costs by 10% is to document the requested change as per the organization's procedures before executing integrated change control. This approach allows for a thorough review and helps avoid rash decisions that could negatively impact the project.

Step-by-step explanation:

When facing a directive to decrease planned project costs by 10%, the next best step is to adhere to formal change management processes. This involves documenting the requested change according to the organization's procedure, which is a part of the integrated change control process. Integrated change control is a key project management practice that ensures potential changes are systematically evaluated for their impact on the project's scope, time, cost, and quality before being approved or rejected.

Instead of hastily removing quality tests or shortening the project timeline without proper evaluation, documenting the change allows for a more strategic approach that includes analyzing the request, considering alternatives, and adjusting planning documents accordingly. The project manager would engage with the project management team to explore options to meet the cost reduction goal without compromising product safety, quality, or agreed deliverables.

Ultimately, this approach respects the importance of adhering to established project management standards and methodologies, while ensuring that all stakeholders are informed about the changes and their potential implications.