Cost and labor investment levels
The investment in project costs gradually increases in the initial stage, reaches a peak in the middle stage of execution, and gradually decreases in the final stage of the project. The cost input trend is shown in the figure below:
- Initial stage: From the perspective of labor costs, when the information system development team formulates the project management charter and project management plan in the early stage, there is only the cost investment of the project manager and relevant stakeholders, so the investment is small.
- Execution phase: As the project progresses, requirements design, development, and testing personnel participate to complete the project implementation. The number of personnel continues to increase until the cost reaches a peak and continues for a period of time.
- Closing stage: Requirements design, development, and testing gradually complete their respective tasks, gradually withdraw from the project, and the cost gradually decreases.
Risks and Uncertainties and Costs of Change
During the project implementation process, project stakeholders will have a certain impact on the project.
Stakeholder Impact: Risks and Uncertainties
- In the early stages of a project, the needs of relevant parties are often vague and may change at any time, which results in higher project risks and uncertainties at this stage.
- As the project progresses, the needs of relevant parties gradually become clearer, and the uncertainty of the requirements gradually decreases. At the same time, the risk of relevant parties changing their needs gradually decreases accordingly.
cost of change
- In the early stages of the project, especially when the system has not yet been implemented, changes at this time may only require modification of some design documents or project plans, so such changes are relatively low-cost.
- As the project progresses and takes shape, especially when the project is completed and ready for delivery, the cost of changes at this time may be fatal and may result in large cost expenditures.