Operations Management for MBAs begins with a description of the “Big Dig” project in Boston. This highway tunnel project was one of the most complex and technologically challenging highway projects ever executed. The original cost estimate was $3 billion, but the final cost was over $14 billion. With an estimated annual benefit of $500 million, payback is over 78 years. Not a stunning success.
What went wrong? How could proper project management have improved the outcome of the project?