A leading Tier 1 Cable MSO was observing higher-than-expected-and projected project costs and needed to correlate actual costs to projected costs to understand the issues and better control budget overruns.
Fiber To The Home Data Analytics
- DTS developed an analytics framework to look for trends and identify outliers.
- Created data dictionary to map projected expenses to actual costs
- Both labor and material expenses included in data dictionary
- Focused initial review on projects with higher percentage overruns
- Initially, reviewed only completed projects
- Used analytics to drill down further on overruns by type of expense
- Further analysis included projects in flight to allow earlier feedback
- Held project reviews to understand the need for the extra expenses
- Took corrective action to stop unnecessary expenses
- Captured and shared lessons learned with the team
- The client was able to identify expenses on spare materials that should not have been charged to the projects, leading to a development of a separate sparing program.
- The client found that on over 10% of the projects, funds were being used to provide temporary services not covered in the funding request.
- Overall, the client was able to understand what was actually being charged to the projects and better manage and control their expenses and close a 43% program variance.