The backdrop of this page shows the integral equation for the Internal Rate of Return of a project.
Project management may no longer be limited to scheduling of resources and hoping for the best; not any more just adjusting the project management tool Gantt and Pert charts as we go along.
It starts with a precise prerequisite analysis, and deliverables formulation.
The Project Vision: a clear vision statement of a project, supporting successful scoping and alignment of all sub-projects and subordinate tasks.
Besides a precise, correct, and complete work break down structure, resource loading profiles, and effort estimation, project full life cycle costing is essential: from the cost of the inception phase to the disposal of end of project life equipment.
Intuitive initial estimates are more than often overthrown by net present value and internal rate of return calculations.
Especially when estimates for future capital cost discounting and equipment resale value or disposal cost is introduced: the simple pencil calculation becomes an exercise in numerical mathematics: resulting in best and worst case decision support data; helping to chose the right technology in the first place: avoiding to pay twice!
© 2003-2017 Michael Nittmann