Interaction Of Project Cost and Duration

In conventional Project Management, you work out the duration of the project, then work out the cost. In ORION planning, everything is connected, and influences can flow in any direction. If there is a link between project cost and project duration, constraining either will affect the other.

In this example, there is a cost incentive for finishing early, as well as the usual variable costs. You can describe the incentive pretty much as the contract would describe it, as

IF ProjectFinishDate < 125
THEN Incentive = 400
ELSE Incentive = 0

ProjectCost = FixedCost + VariableCost - Incentive

VariableCost = CostRate * ProjectDuration + CostAlternatives + ContingencyCost

While there is logic determining the value of Incentive, ORION can see through it to find that Incentive has a range 0,400. As you constrain the cost, the duration will also be constrained, the Incentive switching to a single value and giving a more precise range on project duration if all of the range on ProjectFinishDate is below 125 or all above.

Similar connections can be set up with Project Risk, so the diagram showing the project being squeezed by time and cost and resources and risk really does illustrate how ORION Project Planning works. The embedding of logical switching in a project model is unique to ORION.

Project Management