Question

1. Assume that your project has started to slip dramatically. Let’s further assume that the project deadline is fixed and can't change. Your project currently has one developer working on module of code with 21 day duration on the critical path. You are desperate to shorten this timeframe and you are considering adding a second resource to this activity but, the resource does not have all the right skills and he might work five days just to reduce the overall time by two days.   From an economic perspective is this a good move? Why?
2. Gold plating is what we call it when the project team does work on the product to add features that the requirements didn’t call for, and that the stakeholder and customer didn’t ask for and doesn’t need. Is this a good practice from an economic perspective? Why?
3. What is the difference between project managers who considers themselves implementers of others solutions versus project managers who view themselves as the CEO of a small business?

Answer 1

Adding an additional resource to the project is bad from economic point of view. Because this exploits more resources and it is told that the new resource reduces the work by only two days. So this is not necessary. Instead the old one itself can be given bonus timings also from his leisure 5 minutes can be reduced and this 5 minutes for 21 days will help completing the project on time.

Gold plating is done by the project team for making the customer delighted with what was expected and more. Sometimes the customer will not like it too. Depends on the sellers fortune! But from the economic point of view this is not at all a good phenomenon. Because this brings in new bundle of risks to the planners like; additional testing, documentation, costs or timelines. Gold plating is done after completing the requirements. And hence the plated gold is additional, not required.

The difference between project managers who considers themselves implementers of others solutions versus project managers who view themselves as the CEO of a small business is that the former aims at maximising his own utility (sales maximisation, revenue maximisation) along with a required profit, and the latter aims at maximising his own profit or infact the company profit. Also the former works with specialisation and the company gets its name and can become a brand or what. That is he manages everything with more sale and fame. But the CEO or the entrepreneur aims at increasing or maximising his own profit by way to become rich and get the business.