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Unit II Journal _ Inaccurate Initial Scope, Schedule, and Budget Estimates

Nguyen Duy Son

Columbia Southern University

MGT 6304 Managing Complex Projects

Dr. Zee

Date: May 2023

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Inaccurate initial scope definition, schedule and budget estimates are the major causes

lead to the project failure. In 2022, our team took over Chilli Thai’s restaurant interior renovation

project in Vietnam. The client required the project to be completed within 60 days, and with an

initial budget of $300 thousand. However, due to poor planning and lack of accurate initial scope

definition, the project faced numerous delays and cost overruns. The project's initial scope

included a simple renovation of the restaurant's interior, but it expanded to include extensive

upgrades to the kitchen, adding new buildings, and updating the electrical and plumbing systems.

The project also faced numerous design changes, disagreements between stakeholders, and

conflicts with local authorities. As a result, the project was delayed several times, and the budget

increased to over $450 thousand, exceeding the initial budget by almost 1.5 times. The

renovation duration increased up to 80 days instead of 60 days compared with the initial plan.

The project team found out that the main issue was an inaccurate initial estimate for the

project's scope, schedule, and budget. The project was significantly delayed and cost overrun due

to the mistake in initial scope definition. In addition, the estimated cost for the restaurant

renovation project was not based on a thorough analysis of all the factors that could impact the

project's success, such as unforeseen design changes, the additional technical works, materials

availability, and construction delays. As a result, the project ended up going over budget and

taking much longer than expected. This caused a significant strain on the restaurant's finances

and operations, leading to dissatisfied customers, reduced revenue, and lost business

opportunities.

A recommended lesson learned in order to avoid such project failures for the future

projects was conducted by the project team. For example, a comprehensive analysis of the

project's scope, schedule, and budget requirements is essential before starting the project. This
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analysis should include a detailed evaluation of all factors that could impact the project's success,

including potential risks, unforeseen events, and variations in design, materials, or construction

methods. Project managers should also involve all relevant stakeholders in the project planning

and decision-making processes, including the restaurant owners, contractors, designers, and

suppliers. This will ensure that all parties have a clear understanding of the project's goals,

requirements, and constraints, and are working together towards a common objective. The

continuous communication maintaining with the project’s key stakeholders, such as the

restaurant owner or the top management team, is critical for the project effective scope

development.

Moreover, project managers should keep a close eye on project progress and identify

potential issues early on. This will allow them to take corrective actions before small issues

become major problems that can derail the project. They should also be prepared to adjust the

project's scope, schedule, and budget as needed to reflect changing circumstances, priorities, or

stakeholder needs.