Cost Risk Classification Trends during FEL Phase
1) Purpose: The paper describes the results and solutions of method to quickly manage change during the FEL phases, prior to the development of the control budget.
2) Design / Methodology / Approach: Data for this paper is based upon the findings of a Six Sigma team, which was looking to streamline the change process and improve timeliness of notification.
3) Findings and Value: This tool referenced in the paper resulted in shortening response time for changes, reduced paperwork by the project team members, documented the decision and improved the project teams ability to forecast cost during the FEL phases.
4) Research Limitations / Implications: None
5) Practical Use / Implications: This has proven to be a useful tool by project managers and estimators in the management of changes in scope during the FEL phase.
6) Originality / Value: This paper was co-authored by myself & Glenn Bordelon in 201 1 for presentation at the AACE annual conference.
7) Conclusions: This concept has significantly improved our response time on managing scope changes, and it has allowed for more transparency between the individual project teams and our overall corporate management, minimizing cost increase surprises when more detailed estimates are prepared.