Reducing Project Costs and Increasing Profits

A project’s success is determined by how well its scope, time, and cost are managed. However, learning to how to manage and reduce project costs can be a rather challenging task to master. Project cost can be difficult to manage because of the number of variables that cause it to fluctuate.  One needs to be able to accurately estimate what a project will cost so that you can be sure that you have the proper resources required to see a project through to completion. Here are

four steps you can follow to help reduce project costs and increase business profits.

 

 

Complete projects faster

 

Generally, the less time you spend on a project the lower costs incurred. On the other hand, if there are any delays or extensions you may end up overspending. It is crucial to complete projects as quickly as possible, to maximize profits.  When you outsource projects, contractual companies use the highest quality talent at best value which means you get more work done for the dollar. Reducing project scope or quality may also be effective. Reducing the number of tasks, for example, a particular phase, or reducing the quality objectives can cut costs — but only if all the stakeholders agree.

 

Keep lines of communication open

Expectations should be communicated clearly, prior to the start of any project. It is crucial that all details regarding the project are communicated with stakeholders and all teammates involved. Feedback and demos should be provided throughout each stage of the project. Demos enable the opportunity for open and honest feedback and also reduces additional back and forth when a project is done and ensures stakeholders are satisfied with the final output.  Daily team meetings are also a great way to keep everyone, including the client, updated about the project status.

 

Have a solid Risk Management Plan

During planning and throughout the entire execution of a project, it is important to identify, assess, and document potential risks. This involves mapping the social scope of risk management, identifying the objectives of stakeholders, identifying resources available to help mitigate the effects of the risks and identifying the structures that are in place to cope with the scenarios that could present themselves. The delivery manager’s role throughout the project should involve managing unforeseen risks on a daily basis. Contingency and mitigation plans are prepared to handle such scenarios. The decision about which one of these needs to be prepared is based on two parameters – impact of risk and probability of its occurrence.

 

Use automation tools

We live in a world where everything gets automated quicker than you could imagine. With that said, it is important to note that successful project management relies on proper utilization of the necessary tools. When planning a project, it is crucial to asses all team members knowledge of using a particular tool or software and receive through training to ensure that the essential tools are utilized.

Automation testing is testing without using manual labor or testing that creates automated scripts for previous repetitive, but necessary, testing in a formalized testing process already in place. It also adds additional testing that would be difficult to perform by hand.

Software projects, especially large and complex ones, require a significant investment in testing to ensure that they are successful. This specific investment is in time, staff resources, and additional costs, which can quickly add up and make the cost of testing increase the overall scope of the development project. Luckily, automation testing can often be implemented to speed up the process and reduce these costly testing investments.

Contact Falcon Project Consultants if you would like more information on how to reduce costs and automation.