Fox to crack down on military overspends

[GrahamO]

In my experience, requirement creep is one thing, but the random reprofiling caused by budget inflexibility across years every PR is the other major one. If you read the NAO report, pretty much all of QEC variance from MG approval is down to schedule change and associated assumptions rather than requirements creep.

Fix that and you go a long way (by no means all) towards fixing the problem.

This means ;

Factor 1

Project A runs late/overbudget and underspends some years and forecasts to overspend others.

This means the schedule for Projects B, C and D have to be rephased to accommodate the problems of Project A. This increases the cost of B, C and D.

Now that B, C and D have changed and are ove-budget, this rippled through onto E, F and G.

Result : MOD buries head in sand and carries on overspending.

Solution : Do not be late on Project A (obvious, radical and unlikely)

Factor 2

MoD asks for an apple and get a price. Offer is accepted and supplier plants orchard.

MOD asks for progress reports and gets them. All is well.

MOD asks for more technical detail to integrate the apples with the cider press.

Contractor provides data on Granny Smiths apples and the MOD realises that they make rubbish cider.

MOD asks for a contract change to Cox's pippins after realising that the contractor has provided a fruit compliant to the spec.

Contractor will deliver 12 months later than originally planned, but is not late.

MOD renegotiate with the press supplier, the bottle supplier and staff and find that they are going to lose money, as everyones prices are now higher for later deliveries.

Result : MOD buries head in sand and carries on overspending.

Solution : Write down what you want and then stick to it. Learn to like Granny Smith cider as you may never actually get any cider after all.