Managing Project Complexity through Project Cost Management in the Life Science Sector

This research investigates what are currently the most widely used project cost management techniques in the Life Science sector (Pharmaceutical, Biopharmaceutical and Medical Device sub-sectors) as well as exploring the impact that project complexity has on project cost management and how project cost management techniques can be used to manage project complexity. A systematic literature review was conducted, and a survey questionnaire was developed and distributed to collect quantitative data on a representative sample of Life Science sector professionals, mainly based in Ireland, to investigate practices and techniques relating to project cost management and project complexity. 102 respondents from the Life Science sector completed the survey. The questionnaire survey found that one of the most significant issues likely to cause project cost overrun is the inadequate identification and management of project complexities. In relation to project complexity management knowledge and experience of the sample, 41.2% of respondents never directly or explicitly assess project complexity whilst 28.4% never indirectly or implicitly assess project complexity. 99% think that a complexity assessment may be of benefit if completed during the project lifecycle, particularly during the front-end stages of a project. The project complexity factors that rated highest in terms of importance to project cost management are related to: Scope, Schedule, User requirements specification, Cost management, Resources, Team performance and Quality. The results of the survey show that there is a relationship between management of project complexity and project cost management, and management of project complexity can reduce project cost overrun. This research paper recommends that project professionals regularly assess project complexity and perform earned value management to better manage projects and reduce cost overrun. To drive competitive advantage and enhance profitability, project cost management and project complexity management are essential activities for organisations.