What to do When you get Pressure to Reduce Your Project Budget

The video discusses the challenges project managers face due to economic pressures affecting budgets. It explores strategies to manage costs by adjusting time, quality, and scope. The video emphasizes the importance of negotiation and risk management in cost reduction, encouraging project managers to find flexible solutions rather than outright refusals.

What is one of the main economic factors putting pressure on project budgets?

• Increasing labor costs

• Volatile exchange rates

• Decreasing fuel prices

• Stable exchange rates

Which of the following is NOT one of the three levers to manage project costs?

• Time

• Quality

• Scope

• Location

How can adjusting the project schedule potentially affect costs?

• It always reduces costs

• It has no impact on costs

• It can sometimes reduce costs

• It always increases costs

What is a potential downside of reducing quality to cut costs?

• Higher reputational costs

• Reduced project scope

• Improved stakeholder satisfaction

• Increased project duration

What is value engineering primarily concerned with?

• Increasing project scope

• Improving stakeholder communication

• Balancing cost and benefit

• Reducing project time

What principle suggests that a small portion of the scope delivers most of the benefit?

• Moore's Law

• Parkinson's Law

• Murphy's Law

• Pareto Principle

What should a project manager avoid saying when asked to reduce the budget?

• Yes, if we extend the timeline

• Yes, if we reduce quality

• No, we can't do that

• Yes, if we adjust the scope