Alcatel-Lucent – Estimation and Cost Management Standard
Alcatel-Lucent was engaged by Telstra to deliver the multi-billion dollar Titan Program. The Alcatel-Lucent Titan Program Office Manager engaged Core Consulting Group (CCG) to define their Estimating and Cost Management standards as part of a broader training initiative.
CCG had also been engaged to provide training in Estimating and Cost management, however training needed to blend industry standards with Alcatel-Lucent specific policy and processes. Without documented and agreed standards, provision of training was quite difficult. Drawing on previous experience, Core Consulting Group developed two standards.
The Estimation Standard provided a basis against which consistent project estimation could be achieved. Various aspects of estimating, such as structuring the WBS, differing estimating techniques, risk and contingency were covered, as was differing information needs such as cashflow and financial feasibility calculations. The need for a live estimate throughout the life of the project (the Estimate to Complete) was also discussed.
The Cost Management Standard provided a comprehensive guide for the process and methods of managing Project and Program budget, actual and forecast costs. Discussions relating to finance systems, accruals, risk and contingency, the tools, the policies and process were included. Financial reporting was covered and the concept of Earned Value was introduced.
The outcome of this work were recognised Standards for Estimating and Cost Management that were usable, pragmatic and effective in the complex environment. The success of the standards was apparent by the fact the Asia Pacific PMO adopted ownership of the documents and the estimating and cost management training course was successfully developed and deployed.