1.5 Develop Life Cycle Cost in the Business Case
Objective
Develop the estimated costs of a migration based on the customer Scope of Services requirements to manage and plan budgetary needs.
View Best PracticesTask Activities
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Customer
Develop Life Cycle Cost Estimate (LCCE) based on information gained in previous activities (e.g., requirements gathering, acquisition decisions, risk mitigation, scope of services) and reasonableness and affordability
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Customer
Develop LCCE for all future phases
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Customer
Compare actual spending with budget and adjust LCCE as needed
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Customer
Report changes to program costs and actual spending in governance meetings and Status Reports/Dashboards
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Customer
Update the Project Business Case
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Customer
Populate the Investment Readiness Checklist
1.5 Best Practices
- Plan multi-year budget requests through life cycle cost analyses based on expected scope and operational impacts of releases
- Provide LCCE at the work breakdown structure (WBS) product or activity level, breakout costs as recurring/non-recurring (e.g., migration and Operations and Maintenance costs), align budget estimates and other required investment documentation (e.g., E300) to the LCCE, and receive final approval from the Executive Sponsor
- LCCE examples are available on the M3 Example MAX Page
Stakeholders
Customer
- Executive Sponsor
- Program Manager
- PMO Lead
- PMO Team
- Budget or Financial Analyst (as needed)
- Risk Manager
Inputs
- Project Business Case
- Scope of Services
Outputs
- Life Cycle Cost Estimate (LCCE)
- Status Reports/Dashboards