Several studies, including studies performed by the International Council of Systems Engineering, Boeing, IBM, and many others, demonstrate that systems engineering results in better cost and schedule performance. Figure 2 shows the results of an INCOSE study that collected planned and actual project cost data and systems engineering cost data for 43 projects. The survey indicated that investing in systems engineering improved both project cost and schedule performance. The responses indicated a 50% overrun in cost and an 80% overrun in schedule on average without systems engineering and a clear trend towards better cost and schedule performance results with systems engineering.
Figure 2: Cost and Schedule impacts of Systems Engineering
(Source: INCOSE)
One might think of systems engineering being analogous to buying insurance. You buy insurance to help manage your risk. Systems engineering is critical to managing project risk. The level of systems engineering you need is directly related to the level of perceived risk understood for the project.
Following a systems engineering project lifecycle process ensures that you consider and perform each stage of the process with linkages or traceability backwards and forwards with the preceding and upcoming processes. There is a cost for systems engineering just like there is a cost for insurance. The value of preventing costly mistakes (e.g., missed user needs, missed requirements, unfulfilled project functionality, etc.) is the core motivation for implementing systems engineering and is critical to the success of your project.
A successful project is characterized by being delivered within its schedule and budget, and meeting the user’s needs. Systems engineering provides an overall project process that increases the likelihood of a successful project deployment. A general tenet of systems engineering is to find and fix problems/issues early in the project lifecycle so correcting them will have less impact to the schedule and budget. It is always more expensive to make changes later as the project progresses. Generally, this will reduce the project’s risk factors.
