expected, However, the minimum funds needed value of $53,333.33 assumes that everything will go according to plan after the first month. What if things do not gel better? What if the schedule and cost variances continue? We can estimate this scenario by including the SP! in our estimate.
Funds needed if things continue to get worse = Original Total Budget -*- (CPI * SPI)
As you can see, if this project continues to experience the same level of cost and schedule slippage, you will end up paying almost $89,000. That's 125 percent over your original budget! No wonder the study by the Standish Group described in Chapter 1 is called Chaos, Hopefully, you can see how important it is to plan a project well and also how important controls and a monitoring system are to a project.
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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.