Manage the margins Hold margin in all resources Resources required by the product tend to increase due to unforeseen problems, better understanding of the design, etc Margin allows the manager to accommodate such resource requirement growth without renegotiating resources with the customer How much margin should be held? Reduces as the product design matures Suggest holding 30%at TARR, 20% at PDR, and 10% at CDr Systems Engineering ManagementManage the Margins • Hold margin in all resources – Resources required by the product tend to increase due to unforeseen problems, better understanding of the design, etc. – Margin allows the manager to accommodate such resource requirement growth without renegotiating resources with the customer. • How much margin should be held? – Reduces as the product design matures – Suggest holding 30% at TARR, 20% at PDR, and 10% at CDR. Systems Engineering Management