Lately, it has become important to consider the cost of the project for the full useful life of the product or service that is created. This means that the cost of the project does not end when final acceptance of the project has been completed. Guarantees, warranties, and ongoing services that have to be performed during the life of the project must be considered.
With regard to project life cycle, cost decisions are made with a clearer picture of the future commitments that the project will require. If life cycle cost is considered, better decisions will be made. An example of this would be the project of creating a software program for a customer. The project team can create a working software program without organization or documentation. This is usually called ''spaghetti code.'' Considering the cost of the project as delivered, the spaghetti-coded project will be less costly. When you consider the life cycle cost of the project, however, this approach will be more costly. This is because the cost of debugging and modifying the software after delivery of the project will be more difficult.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.