In the project environment cause-and-effect relationships


In the project environment, cause-and-effect relationships are almost always readily apparent. Good project management will examine the effect in order to better understand the cause and possibly prevent it from occurring again. Below are causes and effects. For each one of the effects, select the possible cause or causes that may have existed to create this situation:

Effects
1. Late completion of activities
2. Cost overruns
3. Substandard performance
4. High turnover in project staff
5. High turnover in functional staff
6. Two functional departments performing the same activities on one project

Causes
a. Top management not recognizing this activity as a project
b. Too many projects going on at one time
c. Impossible schedule commitments
d. No functional input into the planning phase
e. No one person responsible for the total project
f. Poor control of design changes
g. Poor control of customer changes
h. Poor understanding of the project manager's job
i. Wrong person assigned as project manager
j. No integrated planning and control
k. Company resources are overcommitted
l. Unrealistic planning and scheduling
m. No project cost accounting ability
n. Conflicting project priorities
o. Poorly organized project office

(This problem has been adapted from Russell D. Archibald, Managing High-Technology Programs and Projects, New York: John Wiley, 1976, p. 10.)

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Finance Basics: In the project environment cause-and-effect relationships
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