Minimizing the Impact of Project Overrun : efficiently handling project cost and time
Syed, Imtiaz (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025052315035
https://urn.fi/URN:NBN:fi:amk-2025052315035
Tiivistelmä
This thesis focuses on understanding the reasons for project overruns that have been recurring in the case company’s projects. It aims at finding actionable approaches that can prevent or significantly minimize the overruns in the projects. The goal is to find out why projects run out of time, cost, and scope boundaries, and suggest recommendations that would help the case company improve its profitability and delivery quality in executing its projects. This thesis topic is important because the project overruns are symptoms of inherent systemic process gaps and need to address in the project organization.
This thesis used applied action research approach to investigate the root causes for project overruns and find recommendations to mitigate the issue. The current state analysis focused on gathering project information and was conducted by organizing interviews and workshops with the project managers and project teams. Five case company’s projects were selected from various industries and different project sizes to gather wide and unbiased data. The analysis revealed the issues and reasons for overruns, such as unclear requirements, inaccurate estimation methods, resource availability, poor change control and inadequate knowledge retention. The conceptual framework helped in gaining knowledge on methods and best practices in monitoring and mitigating project overruns. These inputs formed the basis for developing the solution.
The solution development was done by conducting brainstorming sessions with PMO leads and Head of Practice to formulate suitable solutions and recommendations to address the overrun issue. Validation of proposed solutions was done by engaging Client Services and PMO leads. The solution approach focused on better contextual understanding, feasibility of implementation, and continuous improvement.
As a result of this thesis, the project organization recognizes the underlying issues causing project overruns. It is realized that the findings are relevant, and mitigation actions will add value to the overall delivery quality. The PMO has already planned to incorporate the recommended best practices into the upcoming lean-agile trainings for project managers, sales and technical teams. Initiatives are also planned for cross-training and improved change control processes.
This thesis used applied action research approach to investigate the root causes for project overruns and find recommendations to mitigate the issue. The current state analysis focused on gathering project information and was conducted by organizing interviews and workshops with the project managers and project teams. Five case company’s projects were selected from various industries and different project sizes to gather wide and unbiased data. The analysis revealed the issues and reasons for overruns, such as unclear requirements, inaccurate estimation methods, resource availability, poor change control and inadequate knowledge retention. The conceptual framework helped in gaining knowledge on methods and best practices in monitoring and mitigating project overruns. These inputs formed the basis for developing the solution.
The solution development was done by conducting brainstorming sessions with PMO leads and Head of Practice to formulate suitable solutions and recommendations to address the overrun issue. Validation of proposed solutions was done by engaging Client Services and PMO leads. The solution approach focused on better contextual understanding, feasibility of implementation, and continuous improvement.
As a result of this thesis, the project organization recognizes the underlying issues causing project overruns. It is realized that the findings are relevant, and mitigation actions will add value to the overall delivery quality. The PMO has already planned to incorporate the recommended best practices into the upcoming lean-agile trainings for project managers, sales and technical teams. Initiatives are also planned for cross-training and improved change control processes.