Examples Of Estimation Techniques Pmp
10 Cost Estimation Techniques in Project Managment By Rich Rinaldi on June 30, 2017 in 7 Project Cost Management, General PMP Prep, PMBOK Guide I don’t know about you, but I find that estimating cost in project management is one of the toughest parts of projects in the real world.
What is Project Estimation?Estimating is a vital part of the project planning phase and involves estimating the project costs, resources or duration. Estimating a project can be a challenging task no matter what the size or budget of the project is. The more complex and larger the size and budget of the project, the more difficult it gets to appropriately estimate the project. Faulty or incorrect estimates will result in delayed deadlines and breaking budgets – two key symptoms of project failure.
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Project Manager's ResourceThe challenge with estimating is that it always involves some uncertainty. Some of the factors that contributeto this uncertainty include.
Experience with Similar Projects: The less experience you have with similar projects, the greater the uncertainty.If you've managed similar projects, you will be able to better estimate the costs of the project. Planning Horizon: The longer the planning horizon, the greater the uncertainty. The planning horizon you areconsidering may be the whole project or just a certain phase. Either way, you will be able to better estimatecosts for the time periods that are closer to the present. Project Duration: The longer the project, the greater the uncertainty.
Examples Of Estimation Techniques Pmp Program
Pmp Project Examples
This is similar to planning horizon in thesense that if a project is of a shorter duration you are more likely to account for most of the costs. People: The quantity of people and their skill will be a huge factor in estimating their costs. Early in the project,you may not even know the specific people that will be on the project. That will increase the uncertainty of yourcost estimates.