In project management, tolerance is the amount of change or deviation from a specific goal, target, or plan that is okay. During the planning phase, the project team and the people who have a stake in the project talk about and agree on the project’s tolerance. Tolerance is an important idea in project management because it helps project managers and teams make decisions with the right amount of flexibility and freedom.
In project management, there are two kinds of tolerances:
Time Tolerance
Time tolerance is the amount of change in the length of a project task or activity that is acceptable. It is usually measured in days or as a percentage of how long a task will take. For example, a time tolerance of 10% could be agreed upon. This means that a task can take up to 10% more or less time than planned.
Cost Tolerance
Cost tolerance is the amount of variation in a project’s or a task’s cost that is acceptable.
It is often measured by the project’s budget or the estimated cost of a certain task. For example, a cost tolerance of 5% might be agreed upon. This means that a task can cost up to 5% more or less than what was originally estimated.
Tolerance levels help project managers and teams make smart decisions and take the right steps to deal with project risks and changes from the original plan. Project managers can find a balance between the need for flexibility and the need for control by setting tolerance levels and agreeing on them.
Usage
It is used in Project Planning
