Development Cost Overruns and Delivery Delays Due to Specification Changes and Additional Work
First written in FY2017. 2 of 5 entries say "Mitigated", first in FY2020. Latest entry: FY2022.
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2022AdvancedAnnual report
「As a prerequisite for these efforts, the Company is continuously reviewing its organizational structure and actively recruiting personnel so that sufficient staff, both in quality and quantity, can be assigned to positions such as project and product managers, which are central to these efforts. The Company also works to prevent unprofitable projects and project delays by conducting monitoring by the executive officer in charge and study sessions led by technical specialists.」
In addition to schedule and cost management and clarification of the scope of responsibility and requirements definition, the allocation of personnel such as project managers, monitoring by executive officers and technical study sessions have been specified as countermeasures. - FY2021MitigatedAnnual report
「The Company also works to prevent unprofitable projects and project delays by conducting monitoring by the executive officer in charge and study sessions led by technical specialists.」
In project management, monitoring by the executive officer in charge and study sessions led by technical specialists have been identified as countermeasures, in addition to clarifying the scope of contractual responsibility and requirements definition. - FY2020MitigatedAnnual report
「The Company Group appropriately manages projects, including schedule and cost management, under the leadership of project managers, but」
Although the risks of cost overruns and delivery delays caused by specification changes and additional work remain, schedule and cost management led by project managers have been identified as countermeasures. - FY2018RestatedAnnual report
「If project progress deviates substantially from the development plan due to specification changes requested by customers or work exceeding the initial estimate, unplanned additional development costs, penalties for delivery delays, and lost opportunities resulting from damage to customer trust may arise, adversely affecting business performance.」
The risks of development cost overruns, delivery delays and loss of credibility caused by specification changes and additional work continue. - FY2017First statedAnnual report
「If project progress deviates substantially from the development plan due to specification changes requested by customers or work exceeding the initial estimate, unplanned additional development costs, penalties for delivery delays, and lost opportunities resulting from damage to customer trust may arise, adversely affecting business performance.」
The disclosure explicitly identifies the project management risk that deviations from development plans may lead to additional costs, penalties, loss of credibility and lost opportunities.