Hi,
I am new to PM. Got a case study where I have to use the Iron triangle and the case is as follows:
A textile company has made a loss in profitability around 65% in net revenue. Now the management want to create and launch a new product which will innovate the market. New equipements need to be purchase and the cost shall incur 20% from the remaining 35% of profit. Spare parts will cost 5% of the final profit of 15%.
How can I use the iron triangle to show the interactions of the 3 elements (Cost/Time/Scope).
I am confused please help..
Regards,
Gav...
Iron Triangle for Evaluation
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Mohamed.Benmerikhi
- Expert Member
- Posts: 57
- Joined: Thu 20 Sep 2012 10:19 am
- Location: France
Hi Gav,
In the Iron triangle, the elements of time, cost and scope interact in a way that positions the central preference of a Project Manager in the centre of the triangle. So if you imagine that there is a centre point in the triangle, then this would be your target. Therefore, any attempt to stay in that position would require an interaction with scheduling of the new product as well as its scope in order to keep the desired quality.
Remember that when you make an investment, you incur a change in the cost side of the triangle, then you must also make changes to the scope of work and its associated schedule.
I hope this make things clearer for you.
Best of Luck
Mohamed
In the Iron triangle, the elements of time, cost and scope interact in a way that positions the central preference of a Project Manager in the centre of the triangle. So if you imagine that there is a centre point in the triangle, then this would be your target. Therefore, any attempt to stay in that position would require an interaction with scheduling of the new product as well as its scope in order to keep the desired quality.
Remember that when you make an investment, you incur a change in the cost side of the triangle, then you must also make changes to the scope of work and its associated schedule.
I hope this make things clearer for you.
Best of Luck
Mohamed