Financially Focused Project Management

The benefits of FFPM are clearly presented in this model. They are summarized below:
A high-quality corrective action plan is implemented, leading to timely recovery from the failure mode.
The selected corrective actions were also the most cost effective available.
The company was immediately able to analyze impacts to production costs, providing the opportunity to adjust prices if appropriate.
A follow-up plan was established to ensure that the corrective action had been effective, providing the following benefits:
If process improvements were not effective, immediate recognition of this fact enables quality engineering to generate alternative steps in a timely manner.
If process improvements were successful, imposed steps can be reconsidered and, if possible, their magnitude reduced or eliminated. In this case, for example, the effort of working with the supplier to improve its gas purification system was successful, and 100% inspection of gas was no longer required. If it is no longer needed, it should not be done.
The finance organization provides added impetus for quality engineering to perform the follow-up function. Finance keeps a log of open corrective actions and continues to prompt quality engineering for closure notices.
Perky Pets, Incorporated: A model case providing an ideal showcase for FFPM.