Project estimating is one of the most important aspects of project management. By their very nature, projects have fixed budgets and their owners want to know how much they will cost. Hence, project estimating begins prior to project initiation and estimates are usually updated at important project milestones. A Rough Order of Magnitude estimate, often … [Read more...]
What is a Rough Cost Estimate?
A Rough Cost Estimate is an initial estimate that uses prior experience and other non-project data to estimate the cost of a project. It is also called a Rough Order of Magnitude (ROM) estimate, or a Conceptual Estimate. The Rough Cost Estimate is used for project screening, or deciding which among several projects to proceed with. The project definition is around … [Read more...]
11 Types of Estimates
Almost every project requires an estimate. Since a project is, by definition, temporary, somebody must approve a budget for it. Which means they must know how much to approve. The available types of estimates can be categorized into the following groups: Accuracy Source of Data Estimating techniques Accuracy In many industries, project estimates … [Read more...]
The Triple Constraint
In project management, like most things in life, there is no free lunch. If you want to finish sooner, you will have to cut the project scope. If you want lower costs, you have to cut expenses. If you want higher quality, you have to pay more. This constant tug of war is called the Triple Constraint, also known as the Project Management Triangle, or … [Read more...]
3 Simple Gantt Chart Examples
A Gantt chart is a horizontal bar chart showing the start and end dates of each task within a project. It shows the tasks on the vertical axis and time on the horizontal axis. The tasks are shown sequentially. It can have many other pieces but these are the basic building blocks. Gantt Chart Example 1 Here is a Gantt chart that was created with … [Read more...]
Project Cost Management According to the PMBOK
Poor project cost management is one of the easiest ways to make a project go awry. Hence, good project management requires a firm grasp on the concepts and techniques in project budgeting and cost control. Thankfully, the Project Management Body of Knowledge (PMBOK) gives us a strong foundation in this area. Project Cost Management is the fourth of 10 project … [Read more...]
Effective Project Control
Putting out fires is rarely a good project management strategy. Project controls are where the project manager earns their wages. Assigning work to someone is relatively easy, but how do you ensure the quality of the work is acceptable, or that the deadlines will be met? Fortunately, project management theory contains techniques which are used to track and … [Read more...]