International Construction Company Uses Project Simulator to Control Schedule and Budget Overruns

Background

An international construction company was in the process of a global implementation of a large scale ERP system. The original implementation was estimated for 22 months with 125 people and $35M budget.  The project was scheduled to have completed by the time our team was engaged, but was unable to successfully exit the testing phase.

At that point the projected costs were over budget with no clear go-live date or approach.

The project leadership was indicating that the project would complete testing in two months.  But, the executive sponsors were losing confidence in the project team’s ability to manage the implementation and asked if we could help.

The Solution

Our team was initially asked to conduct an analysis of the implementation schedule in an effort to generate a forecast of the likely completion date. As part of this effort, we utilized Project Simulator .  Project Simulator indicated that the 90% confidence interval on completion date was 13 months, not 2 months.  In addition, Project Simulator was projecting a 40% cost overrun.

After reviewing the analyses, the client asked us to assume overall program leadership and day to day management in each of the critical areas identified by the analysis: PMO, Testing, Data Conversion, Cutover Strategy and Planning.

Results

As a result of the analysis, a new project management structure was established and the schedule and budget were revised.  The project subsequently came in under the revised schedule and budget, avoiding further delays and cost overruns.

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